Document 'reasonable' owner salary with a formal study — safely take more as distributions, saving 15.3% SE tax.
S-corp owner-employees must pay themselves 'reasonable compensation' via W-2 before taking tax-favored distributions. IRS is auditing this heavily. Solution: commission a formal Reasonable Compensation Study (RCReports, similar tools cost $500–$1,500) that documents comparable market pay for your role/geography/hours. Positions you to defensibly pay a lower W-2 salary and more distributions. For a $300K net profit S-corp, moving $50K from salary to distributions saves ~$7,650/yr in SE-equivalent tax. Renew study every 2–3 years.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Front-load depreciation on real estate to slash current-year taxes.
Turn W-2 income into tax-free passive rental losses.
Defer capital gains indefinitely by rolling into bigger real estate.
Defer + eliminate capital gains via OZ funds.
Rent your home to your business up to 14 days/year — tax-free.
Deduct 20% of pass-through business income.
Slash self-employment tax on profits above ~$50K.
Expense equipment, vehicles, and property in year one.