The personal side of owning a business: capital gains and loss harvesting, the net investment income tax, AMT, Roth conversions, and planning for a high-income year.
33 guides, each reviewed by a CPA licensed in the US and Canada.
Understanding marginal vs. effective tax rates prevents business owners from making bad decisions to 'stay in a lower bracket.' The 2025 federal brackets.
Small Business & BookkeepingThe alternative minimum tax (AMT) under IRC 55-59 is a parallel tax system that ensures high-income taxpayers cannot use certain deductions and exclusions.
Small Business & BookkeepingThe Alternative Minimum Tax (IRC 55-59) is a parallel tax system that ensures higher-income taxpayers pay at least a minimum amount of tax.
Small Business & BookkeepingThe Alternative Minimum Tax (AMT) is a parallel tax system under IRC 55-59 that ensures taxpayers with significant deductions, exemptions.
Small Business & BookkeepingHigh-income business owners can use the backdoor Roth IRA strategy to contribute to a Roth IRA regardless of income. Covers key rules, filing.
Small Business & BookkeepingBackdoor Roth IRA mechanics: Step 1: Contribute to a traditional IRA.
Small Business & BookkeepingCapital gains tax applies when a business owner sells an asset (stocks, real estate, business interests, equipment) for more than its adjusted basis.
Small Business & BookkeepingA cash balance pension plan is a type of defined benefit plan that combines the high contribution limits of traditional pension plans with the portability.
Small Business & BookkeepingThe tax treatment of trading income depends entirely on whether the IRS classifies you as a trader or an investor. Trader vs.
Small Business & BookkeepingHiring family members in a legitimate business is one of the most effective tax planning strategies for small business owners.
Small Business & BookkeepingHiring family members in a small business can produce significant tax savings when structured properly. Family employment payroll tax exemptions: |.
Small Business & BookkeepingThe Net Investment Income Tax (NIIT) under IRC 1411 imposes a 3.8% surtax on the lesser of net investment income or the excess of modified AGI.
Small Business & BookkeepingThe Net Investment Income Tax (IRC 1411) imposes a 3.8% surtax on investment income (capital gains, dividends, interest, rental income, royalties.
Small Business & BookkeepingThe net investment income tax (NIIT) under IRC 1411 imposes a 3.8% surtax on the lesser of net investment income or the amount by which modified adjusted.
Small Business & BookkeepingThe 3.8% NIIT under IRC 1411 applies to investment income (rental, dividends, capital gains.
Small Business & BookkeepingA net operating loss (NOL) under IRC 172 arises when a taxpayer's allowable deductions exceed gross income for the tax year.
Small Business & BookkeepingQualified Opportunity Zones (QOZs) remain one of the most powerful capital gains planning tools available to business owners.
Small Business & BookkeepingBusiness owners can manage their income through salary, distributions, and deductions to optimize Roth conversions. Covers key rules, filing requirements,.
Small Business & Bookkeeping529 plan basics for business owners: 1. Federal tax treatment. Contributions are NOT deductible for federal income tax purposes. Growth is tax-free.
Small Business & BookkeepingA solo 401(k) allows self-employed individuals with no employees (other than a spouse) to contribute up to $70,000 per year (2025) as both employee.
Small Business & BookkeepingA business owner in the 24% bracket does not pay 24% on all income. The effective rate is always lower because income fills lower brackets first.
Small Business & BookkeepingBusiness owners can harvest tax losses by selling depreciated assets, abandoning worthless inventory, or recognizing bad debts.
Small Business & BookkeepingWhen a business owner has an unexpectedly high-income year (large contract, business sale, one-time gain). Tax reduction strategies ranked by impact: |.
Small Business & BookkeepingNew parent business owners can claim the Child Tax Credit ($2,200/child, raised from $2,000 by the OBBBA).
Small Business & BookkeepingA business owner earning $80,000 most years but $250,000 in one year pays more lifetime tax than one earning $120,000 every year.
Small Business & BookkeepingA new baby creates tax benefits including the $2,200 child tax credit (raised from $2,000 by the OBBBA), dependent care FSA or credit.
Small Business & BookkeepingTax-loss harvesting offsets capital gains with realized losses, reducing your current-year tax bill. The wash sale rule under IRC 1091 limits repurchases.
Small Business & BookkeepingTax-loss harvesting is the practice of selling investments at a loss to offset capital gains and, within limits, ordinary income.
Small Business & BookkeepingTax-loss harvesting involves selling losing investments to offset capital gains, reducing tax by up to $3,000/year even without gains.
Small Business & BookkeepingSmall business owners face multiple taxes layered on top of each other: federal income tax (10-37%), self-employment tax (15.3%), and state income tax.
Small Business & BookkeepingBusiness losses from startup years, equipment purchases, or economic downturns create tax loss carryforwards that offset future income.
Small Business & BookkeepingThe wash sale rule (IRC 1091) disallows a loss deduction when substantially identical securities are purchased within 30 days before or after the sale.
Small Business & BookkeepingTax loss harvesting basics: How it works: 1. Identify investments in your taxable brokerage account that have declined in value (unrealized losses) 2.