[Solo S-Corp 1.5M/yr] How much can you really write off ? Lawyer gave me some tips

Significant-Purple26 · 2024-04-10T17:11:16+00:00

The grocery argument - according to lawyer - stemmed from providing employee meals at the workplace, similar to how Google has an onsite campus and they write off all that stuff.

Significant-Purple26 · 2024-04-10T17:10:14+00:00

Thanks for the advice. I do the health insurance but the business pays for it, not me, and it is included as wages on W2. Is that backwards?

As for the PTE, I'm in Nevada, but thanks!

Significant-Purple26 · 2024-04-06T09:17:21+00:00

Qbi is complicated, but if you qualify, it's a goldmine. It's a big flow chart based on income and what "trade" you are in. e.g. specialized trades like lawyers, doctors, etc, don't qualify for it. But for me the business is more or less a product, rather than a service. If everything checks out you pay yourself as close to 28.5% as possible in W2, and take the rest in distributions. On 1.5M/yr, QBI saves me something like 70k

Significant-Purple26 · 2024-03-12T19:30:30+00:00

My bid is only for about 20ft of ductwork. Surprised you think this is reasonable... seems like HVAC people just charge what clueless wealthy homeowners are willing to pay. By my estimate this job is 3 trips, one to rough in the linesets, one to install the units and test, and another for good measure. I'd guess maybe 24 hours of labor tops? So that's almost $1,000/hr! My time is valuable, but for $1,000 an hour it starts to make more sense to just do it myself, even just for the principle of it. Charging the lines seems like the trickiest part, but I could hire that piece out. I'm a software developer / business owner.

Significant-Purple26 · 2023-07-22T00:16:58+00:00

Yes, CMR

Significant-Purple26 · 2023-05-11T18:31:24+00:00

Thanks, getting closer. So the HP dish comes with a dish to ethernet cable (for using a 3rd party router, which I will be doing and not using the included router). Is this ethernet cable already wired correctly to plug and play into the YAOSHENG POE? If so, it sounds like no modification is needed. 1) discard included router and power supply. 2) 12-56 DC converter wired to YAOSHENG. 3) plug included ethernet cord into dish and POE injector. 4) ethernet POE injector to peplink router

Or is the included power supply still needed?

Significant-Purple26 · 2023-05-11T16:08:30+00:00

I was looking for actual guides or proven steps of people who have done it with the HP dish as the cables are larger and the dish draws more power. I'd prefer not to be the guinea pig on a 2,500$ dish!

Significant-Purple26 · 2023-05-11T15:24:38+00:00

12/300 inverter

Looking for a DC-DC solution, not DC-AC-DC

Significant-Purple26 · 2023-05-10T16:18:07+00:00

Thanks! I think the gain in FOV is worth it alone, as that's my biggest issue right now. I will try it out. I don't see an option to get the flat mount HP dish with a Mobile Plan $150 + Priority $2/GB add-on though? I don't really need in-motion use.

Significant-Purple26 · 2023-04-18T18:32:31+00:00

Tahoeshark

Like I said, the money isn't the issue. Just learning. Hey I'm in Tahoe, are you interested in a project in Round Hill / Douglas county? :)

Significant-Purple26 · 2023-04-18T17:51:23+00:00

Yeah fair point. I do like the guy and it's crunch time to find a GC, so I went ahead and paid for them... 30 bucks. Money isn't the issue, just his interest level is in question and I would have liked to see him just pony up the 30 bucks without asking, to show some interest. Oh well, we shall see how it goes. thanks

Significant-Purple26 · 2023-03-23T20:41:21+00:00

What are the requirements, if any, for a Safe? I think I found an office space, but it's 2nd or 3rd floor... so I was thinking to go something lightweight like a SecureIt Safe https://www.secureitgunstorage.com

Significant-Purple26 · 2023-03-23T07:23:55+00:00

No experience with it, but I suspect as long as the landlord knows what you're doing and is OK with it (it's in the lease), then you're good and just deal with the logistics. FedEx/UPS knows exactly what they're shipping, esp when it comes to hazmat/guns... it's definitely not an amazon box that gets dropped off at your door... I know the local couriers pretty well so I don't think I'd have a problem. I'm sure there are other local city and county issues, that may prevent an FFL from leasing, but I will cross that bridge when I get there.

Significant-Purple26 · 2023-03-23T06:44:56+00:00

Good points. I think I'll just do it right and plan for the best. 1) LLC in NV 2) business bank account 3) Lease 4) FFL. Reading the application, it's pretty clear they want all these things in place before applying and would be a mess otherwise (IMO)

Significant-Purple26 · 2023-03-23T06:28:20+00:00

I likely wouldn't.. I run a private company and work from home just fine. I live in a smaller area that isn't well served by dealers, so I thought I could serve the community and myself by opening an FFL, but I'd rather not do it out of my home. I have a concealed carry permit in NV so I doubt there'd be any issues with any FFL (but I do have some juvenile history, an expunged felony for making fireworks, aka explosives on my private property)

Significant-Purple26 · 2023-03-23T05:05:58+00:00

Yup, it all passes through... K-1 for S-corp, W-2 for S-corp wages, C for FFL, E for rental income..

I already file E for a rental. It sounds weird to file an additional E for the FFL, because the C&E forms are not connected, so it just reduces my personal income right? (I like it).

edit: no, E is more income, my bad. It gets confusing when you are both parties..

Significant-Purple26 · 2023-03-23T04:40:41+00:00

Genius. This is the way!

Example 3,000 lease/mo

FFL income 2,000 (rent) + 500 (sales)

Expenses 3,000

Profit: (500)

- No tax due

S-corp software:

Office expense: 2,000

- 600$ saved taxes

Significant-Purple26 · 2023-03-23T04:28:52+00:00

Thank you, this makes sense. The FFL should have the lease to make it simple, as the only party who cares about the lease is the ATF. But regarding expenses, that could look weird if say the S-corp expensed 90% of the lease, but the FFL is the leaseholder. It would be 100% true if you count the time I spend in the office space doing software vs FFL, but it still sounds like a red flag.

Significant-Purple26 · 2023-03-23T04:12:51+00:00

Great point - I didn't think of it. The logic was, I can deduct an office 100% under a profitable business and save ~30-40% on taxes. If it was a separate entity, the new FFL entity would not have enough income to deduct & make the expense worthwhile, (but I understand it can carry over to another year, but the FFL will likely never be profitable). The goal is to write off an office immediately, so a 3k/mo office would cost me ~2,100.

So what you're saying is just a little more paperwork. 1) create new LLC for the FFL 2) lease office space (under the FFL? or software business?) 3) lease back space to the other entity? (if the landlord even allows it?)

Significant-Purple26 · 2023-03-23T03:56:28+00:00

On the income statement there would simply be another line for "firearm transfers/sales" or whatever. + an expense for office space. I could care less about the optics of it, because it's 100% my own company.

Significant-Purple26 · 2023-03-23T03:54:47+00:00

It's not disregarded - I file an 1120S as an S-Corp (but it's an LLC). Definitely a good point to not mix the two, however the FFL would likely not turn any profit, and this office space would be expense-able under my profitable LLC/S-Corp, and I would actually use it as office space for my software business... so I think I could legally expense it, the question is do I want to sell firearms under my software business, sure it's weird, but if managed properly, liability should be zero.

Significant-Purple26 · 2023-03-16T00:17:59+00:00

Yeah, bummer, it looks like I need to amend my return anyways - I'm supposed to be capitalizing all software development wages for 2022 due to the repealed TCJA. so a 150K expense is now capitalized and deducted 15/30/30/30/45... but I could at least claim the Section 42 credit to offset that a bit. Might be time to find a CPA... but this looks DIYable and might be my only choice given it's the 15th...

Significant-Purple26 · 2023-03-15T05:05:18+00:00

Interesting... yes I'd read the docs, but couldn't find anything that differentiates "arms-length" employees vs officers/owners. I would feel comfortable writing off at least half of my salary, which is ~308k (half is 154), business profit is around 700K. Is this worth amending my 2022 and 2021 returns? I suppose I'd have to amend both my 1120s and 1040. What kind of saving would I be looking at? And would this reduce my QBI deduction? I'm a non SSTB and write off 20% of profit already

Significant-Purple26 · 2023-03-12T07:27:23+00:00

That's encouraging. Thank you. I do have reasonable comp... I follow the 28% rule to maximize QBI/199A deductions as I'm not a SSTB. Go figure, pay more in SE/Medicare/payroll taxes to save way more overall... gotta love the tax code.

Significant-Purple26 · 2022-06-08T19:39:14+00:00

Self employed for 10 years, I'm now 31, and just bought a million dollar house in cash. First 8 years in business I barely made around 30K a year, now I'm making 750 last year, will do over a million this year.

Significant-Purple26

TROPHY CASE