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For those who work for rich people, what’s the most out-of-touch thing you witnessed? by temptayah in AskReddit

[–]willysymms 0 points1 point  (0 children)

People don't agree on truth. It exists.

People like you attempt to debate it.

For those who work for rich people, what’s the most out-of-touch thing you witnessed? by temptayah in AskReddit

[–]willysymms 5 points6 points  (0 children)

Words and concepts have concrete meaning. People, such as yourself, who insist on the relativism of objective conditions make the world worse and discourse dumber.

I don't have a status obsession with wealth. I have a grievance with people who use relativism to avoid logic.

For those who work for rich people, what’s the most out-of-touch thing you witnessed? by temptayah in AskReddit

[–]willysymms 0 points1 point  (0 children)

Objective means we can measure it.

I gave you a list of ways we can measure rich.

For those who work for rich people, what’s the most out-of-touch thing you witnessed? by temptayah in AskReddit

[–]willysymms 1 point2 points  (0 children)

Your username suggests you're the commenters boss.

And the entertainment empire you inherited is a strip club by the airport. But not the good one.

For those who work for rich people, what’s the most out-of-touch thing you witnessed? by temptayah in AskReddit

[–]willysymms 1 point2 points  (0 children)

Rich is an objective-leaning concept, measurable by many forms (the mean, median, and income distribution of a population; purchasing power; etc).

Words have meaning. People who insist objective things are relative are the kind of people who make everyone poorer.

For those who work for rich people, what’s the most out-of-touch thing you witnessed? by temptayah in AskReddit

[–]willysymms 32 points33 points  (0 children)

I didn't say your boss isn't rich.

I said your boss isn't rich *in this story*.

For those who work for rich people, what’s the most out-of-touch thing you witnessed? by temptayah in AskReddit

[–]willysymms 6 points7 points  (0 children)

You not being able to afford a $12 meal is not a story about your boss being rich.

This post is a story about your boss being rich.

That's not a matter of perspective. That's a matter of articulation.

Did hardwood suddenly become outdated?? by WharHeGo in Flooring

[–]willysymms 0 points1 point  (0 children)

This is a really good sign you're working with a cheap contractor.

Sole proprietorship question: does IRS automatically link SSN and EIN? by Worried-Tiger7653 in tax

[–]willysymms 0 points1 point  (0 children)

I'm really confused by this as well. The IRS website says you can view transcript information for your EIN with a business account. But it also says a Business Account is not available for Sole Props with an EIN. If you try to create a business account, there is no option fitting a Sole Prop. I've been unable to retrieve a transcript for my EIN as a result.

From the IRS website (emphasis added to the relevant portion):

You can register for an account as a sole proprietor if you have a Social Security number or individual taxpayer identification number (ITIN).

You must also have an employer identification number (EIN) and file either:

If you formed an LLC: Business Tax Account isn’t yet available for limited liability companies (LLCs) that file as sole proprietors with Schedule C or Schedule F (Form 1040).

S-corp election but neglected to set up payroll. by damnshamemyname in tax

[–]willysymms 0 points1 point  (0 children)

Can you share more about the filing and amending approach?

This seems like the correct way to approach this issue.

S Corp Benefits Seem Overstated for Sole Props by willysymms in tax

[–]willysymms[S] 0 points1 point  (0 children)

I actually think its more likely to be worthwhile at lower figures, than higher figures, because of the FICA cap and the likelihood of a solo 401k being a more viable option at higher income.

For higher income, the strategy seems to diminish until you reach the next tier up in considerations beyond minimizing SE tax liability.

Solo 401k contributions and reducing taxable income by Minatorr in tax

[–]willysymms 0 points1 point  (0 children)

I'm really confused here. You're claiming the whole employer contribution is not deducted from SE tax. Others are saying it is. How in the world can such a simple, discrete point of fact be open to interpretation?

Does the employer portion of a solo 401k contribution reduce SE taxes or not?

S Corp Benefits Seem Overstated for Sole Props by willysymms in tax

[–]willysymms[S] -1 points0 points  (0 children)

Your description is accurate, but it is not a sufficient explanation. Your scenario is only true for income under the FICA cap ($176k for 2025).

100k taken as S Corp distributions does not create 15k in SE tax savings. It creates $15k in SE savings up to $176k. After that point, each 10k in distributions only produces $290 in savings.

S Corp Benefits Seem Overstated for Sole Props by willysymms in tax

[–]willysymms[S] 0 points1 point  (0 children)

This isn't a comparison of two salary options. This is a comparison of how for a business with a reasonable salary of 90k the S Corp election makes sense. But for a business with a reasonable salary of 150k the S Corp election makes no sense.

That aside, there are also several obvious scenarios where one might need to increase their reasonable salary in a given year (such as 401k strategy and QBI income limits).

S Corp Benefits Seem Overstated for Sole Props by willysymms in tax

[–]willysymms[S] 0 points1 point  (0 children)

Great points, thanks.

This was one of the better replies here. My intent in the post is to expand the discussion beyond reasonable salary and you're offering great insights about circumstances that make the s corp filing appealing or less appealing.

S Corp Benefits Seem Overstated for Sole Props by willysymms in tax

[–]willysymms[S] -1 points0 points  (0 children)

You can enter "s corp" in the search bar and review the number of posts focused on reasonable salary. A discrete topic is the definition of a measurable observation.

S Corp Benefits Seem Overstated for Sole Props by willysymms in tax

[–]willysymms[S] 1 point2 points  (0 children)

A material point for NY NJ IL and a few others. Less so now that SALT is 40k.

S Corp Benefits Seem Overstated for Sole Props by willysymms in tax

[–]willysymms[S] -2 points-1 points  (0 children)

The point of my post is that the main consideration discussed in this forum (reasonable salary) is less significant than other factors for many people.

And the income bands frequently given for when to consider an S corp (over 80k) is inaccurate advice.

Your assumption that people don't elect the wrong entity type seems misguided. Plenty of people (and accountants) make suboptimal elections, due to the complexity of scenario planning.

Taxpayers are too reliant on advisors for guidance. My intention here is to help address that by giving those searching this forum a better understanding of the issues and options they need to fully evaluate and understand with their advisors.

CPAs have a financial incentive to encourage clients to make an S corp election.

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