Plain English guides from AE Tax Advisors on the strategies owners ask about most. Each guide covers how the move works, who it fits, and the mistakes to avoid. This site is general education, not tax advice for your situation.
An S corporation election can reduce self-employment tax once profit is high enough to support a reasonable salary. A common rule of thumb is that the math starts to work somewhere around $60,000 to $80,000 of net profit, but payroll costs, state taxes and compliance fees can erase the savings. Run the numbers before you elect, and file Form 2553 within 2 months and 15 days of the date you want the election to start.
Under current law, 100% bonus depreciation is available again for qualifying property acquired after January 19, 2025. Section 179 can also let you deduct equipment purchases in the year you place them in service, within annual limits. Timing matters: the asset must be in service by year end, not just purchased.
If you own commercial or rental real estate, a cost segregation study reclassifies parts of the building into shorter depreciation lives. That can pull deductions forward into the early years of ownership. It works best on larger purchases or renovations and requires a qualified engineering-based study.
Paying a family member for genuine work can shift income and may create deductions for you. The pay must be reasonable for the work performed, documented, and run through payroll when required.
Solo 401(k), SEP IRA and SIMPLE IRA plans let owners defer tax while building savings. The right plan depends on whether you have employees and how much profit you want to shelter.
Many pass-through owners can deduct up to 20% of qualified business income, subject to income thresholds and wage or property limits. Entity structure and the type of business both affect how much you can claim.
Most missed deductions come from missing records, not missing strategies. Separate business and personal accounts, reconcile monthly, and keep receipts for vehicle, home office and travel costs.
You can generally amend a return to claim a refund within 3 years of filing or 2 years of paying the tax, whichever is later. If you think earlier returns left money on the table, review them before the window closes.
Every strategy above has eligibility rules and tradeoffs. AE Tax Advisors helps business owners plan before year end instead of reacting in April. Read more of our articles on Medium.
General education only. Not tax, legal or accounting advice. Consult a qualified tax professional about your facts.