The Biggest Tax Break for Business Owners | Mark J Kohler | CPA | Attorney

The Biggest Tax Break for Business Owners | Mark J Kohler | CPA | Attorney

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61 Comments

  1. Bravo! Thank you for alerting those of us who are patient and smart enough to watch this video. You're a gentleman and scholar. Please keep sharing the wisdom.

  2. Great Job Mark! Thank you for putting this out for us entrepreneurs who are trying to get through this tax season alive.

  3. Hi Mark, great video. Clarification question RE income phase-outs for people in professional service fields – does one consider income summed from all sources or only specific sources of income? Using the solo example with phase-out of 157-207, beginning at 157k, let's say a service professional has an S-corp (salary/dividend split) but is also an full time employee of another company, and happens to have some passive income from a rental. That person has 4 streams of income: full time job w2, passive rental income on a 1040-schedule E, k1 dividend from s-corp on a 1040-E, and w2 from s-corp. What income streams count against the 157-207K? Is it all of them and anything else that ends up on your 1040?

  4. Very helpful info. How do I transfer business assets from my sole proprietor business to my S-Corp? Thanks!

  5. Are you not being totally transparent by discuss that S Corps must pay a reasonable salary based on the industry?

  6. Most examples I see you do seem to be some with one job or business.
    How do these net incomes and taxes work if you work with a W2 at one job but run your SP or Scorp on the side?
    Example. Teacher with a side professional business. Can income/deductions/etc from teaching salary and side profession be combined?

  7. I government worker make 130k plus I write off a rental property. I want to set up business for my music studio income, income from gigs and selling my CDs. I figure I make 15k-20k. What is best way to do this?

  8. Thank you very much for taking time to break down these tax concepts. As an aspiring business owner, I found this VERY helpful.

  9. Hey Mark-Thanks for the Info about California LLC. I created an LLC in Nov 2017 and yes! California's $800 tax is brutal. My Web design revenue in 2018 will will be less than $21K, so can you help me. I call your office in a few days.

  10. Hey Mark, in your example you saved $10,000 bucks, but won't the additional accounting costs (CPA fees) eat that up every year? Net net, in your example, minus your fees to manage the accounting, is it really worth it? Let's say your fee is $500 monthly (example), that burns up $6,000 per year. Net saving is only $4,000 best case scenario.

  11. i make $100k/year on W2 , can i save tax by driving uber on the side to and from work ..
    I mean can i deduct milages, tolls, and Car maintenance , phone, bills

  12. On a s Corp or LLC all your gain could you using it to buy another property or when you sell all that money put in there buy more properties instead of paying tax or doing 1031 exchange?

  13. I really liked the video but I have a big question, I'm being paid with 1099 let's say I will make 50,000 dlls in the year, I have to pay 15.3% for selfemployment tax which is 7,650 dlls, that leaves me with 42,350 dlls. My question is, is that it? Do I have to pay more taxes on the 42,350 dlls? Or thats money ready to take home?

  14. This great, a few questions though.

    If my LLC nets less than 150k, do I still get this 20% deduction? Do I still pay 15.3% self employment tax? And how do I write off expenses such as cell phone, home utilities, square footage of home office etc when those expenses are paid with personal finances? Do I need to be paying for all of these expenses through my business account?

  15. This Guy knows his "Shit" and good news his firm will be our CPA and Company Attorney in the near future. As I have 1 Parent Company and 3 little children companies:)

  16. This firm is what you call a Aggressive CPA & Attorney firm wrapped up in one. Excellent What are you waiting for?

  17. Mark,
    I have a question regarding income from real property. I understand that because I manage my own rentals and spend a significant enough amount of time leasing them, repairing, etc. that we could safely argue that the level of activity rises to that of a trade or business, as opposed to a passive investor. Thus, I could enjoy the Sec. 199A 20% deduction. The question is wouldn't the argument be antithetical to the argument that such income is NOT self-employment income s/to the SE tax? It seems to me that the only reason such income was ever excluded from the SE tax was because it wasn't trade or business income from self-employment, (i.e. that it was passive rental income). Thus, are you certain that you can enjoy the 20% redux, and safely avoid the SE tax? To be clear, I'm NOT maxed out from other income on the SE tax, and thus the SE tax in exchange for the deduction would make me worse off. Thank you so much for your time and videos! Lisa Marie

  18. You're so good at what you do make me want to finish my schooling and get my CPA license but.. You are better to listen to than those professors. I guess I'll continue to watch your videos. Great Job.

  19. Isn't only the first $128,400 for 2018 subject for self employment tax? I see your video on 10:16, 160K income for $20,760 self employment tax.

  20. I'm an ebay seller but in 2017 I got killed in se tax. My business slowed after hurricane Irma (I live in fl). I couldn't list anything new the entire month of Sep 2017 and then fallen ill so I'm kind of out of business until my health is better. Is their any tax rules that would help my situation because I still owe the it's about $1,800

  21. I started my online sales business this year and made 414k gross, haven't set up an llc yet or anything, after I calculated deductions my net was about 210k, I'm looking at about 70k in taxes due, it's just me and my brother running the show, I need your services.

  22. If you like paying taxes, stay an LLC. Otherwise go S-corp

    1. You have to elect to be taxed as an S-corp by a certain time in the year.
    2. You can elect to be taxed as an S-corp even if you've been filing as an LLC for as many years as you've been in business, but can only start in the current tax year (can't back date and revise taxes in previous years, unless you want to open the biggest can of worms with the IRS)
    3. For those who have been an LLC the whole year, elect to be taxed as an S-corp from January 1.
    4. For those who are late to the game and find out in November that they want to elect to be taxed as and S-corp…you still can,
    however, you need to submit a letter along with the election letter stating why you are electing late…all this has to be is a simple explanation such as "I wasn't aware that the election needed to be filed by a certain date". It really is that simple.
    5. You MUST pay yourself a "reasonable" salary. If the S-corp is making a million dollars, a reasonable salary isn't $30k. Don't give the IRS a reason to audit you, do it legitimately…pay some taxes, just don't overpay like most Americans!
    6. You have to track your "basis"…its a little confusing but do some research and you'll get it.

    In the end, this is worth learning how to do, and doing it because it only takes some of your time…maybe 20-40 hrs of your time…so if your time is worth $200/hr, it might take $4-$8k of your time, but saves you $10k+ year one…its worth your time trust me.

  23. What’s the best option if you know you are going to sell the company. We are projecting millions. I heard you should used c Corp not s Corp so when you sell you don’t get hit hard with taxes. I am in California

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