Modified: How to save money as a S-corp!
Remember 10 Schedule C Tax Strategies: Welp, this is how to do it if you have a S-Corp.
This article is short and sweet, but to the point
In our previous article 10 Schedule C Tax Strategies . We discussed possible tax credits for schedule C filers. What if you have an S-corp? The profits and losses are still filtered through your personal taxes, but in a different form. (Yes I know The IRS loves its forms!)
These are some tax strategies you can still implement to save you money for 2021.
Here are some strategies for S corporations you can implement today:
Reduce the S corporation owner’s wages.
- Deduct the S corporation owner’s health insurance premiums.
- Employ your child to lower your taxable income.
- Sell your home to the corporation before converting it to a rental property. (This one may not help you personally as you will lose your homestead exemption, but the saving may be greater this this way)
- Establish an office in your home and reimburse yourself from the corporation for the expenses.
- Rent your home to the S corporation for 14 days or less and deduct the rent expense.
- Have the S corporation reimburse the owner for depreciation expenses related to business use of a vehicle and home office.
- Combine the home office and a heavy SUV, crossover vehicle, or pickup truck to grab big deductions this year.
- Reimburse the S corporation owner for travel expenses.
- Deduct your smartphone and provide smartphones to your employees as tax-free fringe benefits.
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