by Bill Houston | Jan 25, 2023 | Business Entities, Reduce Your Taxes
The S Corp election is the super tool that can both reduce tax liabilities and audit risk at the same time. Successful sole proprietorships and LLC’s can face higher tax rates due to being subject to both the ordinary income tax and the self-employment tax. They also...
by Bill Houston | Dec 8, 2020 | Business Deductions, Reduce Your Taxes
If you earn your living as a contractor, you pay self-employment taxes on the profit your company makes. You could be a real estate agent, a builder, a car salesman, whatever. As a contractor, if you don’t pay estimated taxes throughout the year, you’re...
by Bill Houston | Dec 6, 2020 | Reduce Your Taxes
This is the last in a series of year-end tax strategies for 2020. The previous 4 have been business related. This article relates to a personal tax reduction strategy. The basic idea here is to avoid the high taxes (up to 40.8% ) on short-term capital gains and...
by Bill Houston | Feb 2, 2020 | Reduce Your Taxes
You might recall that the deduction for mortgage insurance premiums died as of Dec 31, 2017. You weren’t allowed to claim those premiums as part of your 2018 itemized deductions. Many people missed this because the doubling of the standard deduction (from $6000...
by Bill Houston | Jan 27, 2020 | Business Deductions, Reduce Your Taxes
There are a number of reasons to convert your business to an S Corporation but the most common is to reduce self-employment (SE) taxes. Any one operating their business as a sole proprietorship or an LLC taxed as a disregarded entity (fancy way of saying sole prop) or...
by Bill Houston | Sep 3, 2017 | Reduce Your Taxes
Volunteering at local charities, such as your PTA, may give you some valuable tax breaks, such as deductions for mileage, travel expenses and out-of-pocket expenses. There are rules of course, that you must adhere to. The IRS allows you to deduct expenses associated...
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