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 written 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.
Tax PlanningThe alternative minimum tax (AMT) under IRC 55-59 is a parallel tax system that ensures high-income taxpayers cannot use certain deductions and exclusions.
Tax PlanningThe Alternative Minimum Tax (IRC 55-59) is a parallel tax system that ensures higher-income taxpayers pay at least a minimum amount of tax.
Tax PlanningThe Alternative Minimum Tax (AMT) is a parallel tax system under IRC 55-59 that ensures taxpayers with significant deductions, exemptions.
Tax PlanningHigh-income business owners can use the backdoor Roth IRA strategy to contribute to a Roth IRA regardless of income. Covers key rules, filing.
Tax PlanningHigh-income business owners blocked from direct Roth contributions can use the backdoor Roth IRA. Step-by-step mechanics and the pro-rata trap.
Tax PlanningCapital gains tax applies when a business owner sells an asset (stocks, real estate, business interests, equipment) for more than its adjusted basis.
Tax PlanningA cash balance pension plan is a type of defined benefit plan that combines the high contribution limits of traditional pension plans with the portability.
Tax PlanningTrader or investor? Your trading tax bill depends on how the IRS classifies you, and whether you made a Section 475(f) mark-to-market election on time and in the right way.
Tax PlanningHiring family members in a legitimate business is one of the most effective tax planning strategies for small business owners.
Tax PlanningHiring family members in a small business can produce significant tax savings when structured properly. Family employment payroll tax exemptions: |.
Tax PlanningThe 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.
Tax PlanningThe Net Investment Income Tax (IRC 1411) imposes a 3.8% surtax on investment income (capital gains, dividends, interest, rental income, royalties.
Tax PlanningThe 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.
Tax PlanningThe 3.8% net investment income tax under IRC 1411 hits rental income, dividends, and capital gains above $200,000 single or $250,000 married.
Tax PlanningA net operating loss (NOL) under IRC 172 arises when a taxpayer's allowable deductions exceed gross income for the tax year.
Tax PlanningQualified Opportunity Zones (QOZs) remain one of the most powerful capital gains planning tools available to business owners.
Tax PlanningBusiness owners can manage their income through salary, distributions, and deductions to optimize Roth conversions. Covers key rules, filing requirements,.
Tax Planning529 plan basics for business owners: 1. Federal tax treatment. Contributions are NOT deductible for federal income tax purposes. Growth is tax-free.
Tax PlanningA 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.
Tax PlanningA 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.
Tax PlanningBusiness owners can harvest tax losses by selling depreciated assets, abandoning worthless inventory, or recognizing bad debts.
Tax PlanningWhen a business owner has an unexpectedly high-income year (large contract, business sale, one-time gain). Tax reduction strategies ranked by impact: |.
Tax PlanningNew parent business owners can claim the expanded Child Tax Credit plus dependent care and employer-provided childcare benefits. What qualifies.
Tax PlanningA business owner earning $80,000 most years but $250,000 in one year pays more lifetime tax than one earning $120,000 every year.
Tax PlanningA new baby creates tax benefits including the $2,200 child tax credit (raised from $2,000 by the OBBBA), dependent care FSA or credit.
Tax PlanningTax-loss harvesting offsets capital gains with realized losses, reducing your current-year tax bill. The wash sale rule under IRC 1091 limits repurchases.
Tax PlanningTax-loss harvesting is the practice of selling investments at a loss to offset capital gains and, within limits, ordinary income.
Tax PlanningTax-loss harvesting involves selling losing investments to offset capital gains, reducing tax by up to $3,000/year even without gains.
Tax PlanningSmall 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.
Tax PlanningBusiness losses from startup years, equipment purchases, or economic downturns create tax loss carryforwards that offset future income.
Tax PlanningThe wash sale rule (IRC 1091) disallows a loss deduction when substantially identical securities are purchased within 30 days before or after the sale.
Tax PlanningTax loss harvesting basics: How it works: 1. Identify investments in your taxable brokerage account that have declined in value (unrealized losses) 2.