Self-employment Tax Reduction Strategies
It is neither immoral nor unethical to look for ways to reduce one’s tax liability. The 15.3% self-employment tax asserted against sole proprietors, farmers, partners, and others is an enormous burden for the typical taxpayer. This unique class provides strategies to reduce self-employment taxes by implementing effective tax planning techniques.
Stu Sobel who has 48 years of tax experience that comes from working within the IRS and in the private sector uses his wisdom to show you ways to reduce taxes and comply with the strict guidelines of the IRS.
Topics covered include:
- What is self-employment tax?
- Self-employment tax planning issues for partners
- Trade or business? – impact of the Groetzinger case
- Contesting a Form 1099-MISC – line 21 or Schedule C?
- Disclosing a questionable position – avoiding penalties
- Deducting spouse’s insurance on a Schedule C
- Husband and wife joint venture – reducing self-employment tax for one spouse
- Request for employment tax ruling – eliminating self-employment tax and substituting FICA tax
- LLC guaranteed payments or one-time payment?
- Reducing Schedule C income through home office and auto expense allowances
- Become an expatriate and pay less self-employment tax
- Create an S corporation and pay reasonable salaries
- Retirement strategies for the older taxpayer that reduce self-employment tax for a person currently receiving social security
- Trader, investor, and market-to-market election – Schedule C with no self- employment tax
Upon successful completion of this course, participants will be able to:
- Understand self-employment tax requirements
- Determine whether an activity is a trade or business
- Develop techniques to reduce self-employment tax liability through effective tax planning
- Structure businesses that will reduce their clients’ tax liability
Who will benefit:
This program will provide valuable assistance to all personnel in:
- For profit and nonprofit organizations dealing with taxation issues
- Self employed businesses
- Accounting and taxation firms and service providers serving clients in tax planning, preparation, and controversy issues
- Faculty and students of taxation courses
This course is targeted mainly to:
- Corporate leadership in closely held businesses
- Payroll supervisors
- Taxation and accounting staff
- Independent contractors
- CFO and controllers
NASBA & IRS Field of Study: Taxes
CPE Credit: 2 hours