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financial.freedom

Lee_WSP wrote: ↑Fri Oct 25, 2019 4:47 pm Instead of wages the c Corp will issue your s Corp a payment. Makes sense.

Yes, that's what she was telling me. Not sure if it matters whether the S Corp receives W2, K1, 1099 etc as payment or whether it's all treated the same.

financial.freedom

My CPA says S Corp is better -- she said I can set up S Corp shared between my spouse and I that would include her 1099, my 1099, and my C corp income.

She said the C corp would make payments out to me as an S Corp partner.

This is all really confusing.

financial.freedom

I didn't see this mentioned above but California has an additional 1.5% tax in S-Corp earnings, which eat away at much of the benefit past the social security cap. You'd have to be talking very large numbers for this to make sense over a disregarded entity in your case. Thank you for the reply -- I...

financial.freedom

Sorry, let me clarify -- since the first post my thinking has evolved with the help of BH input. I think that to save on taxes we should look into restructuring our group so that the C corp is instead an S corp and that way all income could utilize the pass through. This would change nothing if the...

financial.freedom

Sorry, let me clarify -- since the first post my thinking has evolved with the help of BH input. I think that to save on taxes we should look into restructuring our group so that the C corp is instead an S corp and that way all income could utilize the pass through. This would change nothing if the...

financial.freedom

There are little to no business deductions a typical S-Corp can take, that sole proprietor can not also take. If deductions are the same wouldn't you still save $2,900 for every 100k that you take as a distribution for S Corp (Medicare tax)? I feel that 2,900 alone is worth it since I'd pay $800 to...

financial.freedom

And don't overlook that as an S-Corp you might be able to deduct certain expenses or parts thereof you're incurring in that business which you perhaps may not be able to deduct as an individual. That's something to research with your CPA. There are little to no business deductions a typical S-Corp ...

financial.freedom

And don't overlook that as an S-Corp you might be able to deduct certain expenses or parts thereof you're incurring in that business which you perhaps may not be able to deduct as an individual. That's something to research with your CPA. There are little to no business deductions a typical S-Corp ...

financial.freedom

Unless you're driving around a truck, taking the mileage deduction is usually better. I don't know what the company car employee uses for personal reasons rules are though. For that deduction, I could probably deduct 25k correct? "Section 179 of the federal tax code outlines situations in whic...

financial.freedom

I may meet with my group and discuss changing C corp to S corp so that everything passes through. Does living in CA (high tax state) factor in? Good point above about more deductions. I think writing off car etc are things I can do as S corp that I'm not able to do as Sole proprietor. Will ask my CP...

financial.freedom

When an individual's primary employment W-2 Social Security (SS) wages are >= the SS Maximum Taxable Earnings (MTE): Using an S-Corp for moonlighting income will result in an effective 9.1% FICA on the S-Corp 2% shareholder-employee wages up to the MTE (2019 = $132,900). The S-Corp will be required...

financial.freedom

How is "reasonable compensation" determined? Don't Buffet and Beezos pay themselves very little in wages? You should be able to take the majority of 1099 income as dividends from an s Corp and keep your wages very low. Do you do actual work to earn this 1099 money? How many hours per year...

financial.freedom

There must be an equation for which point S Corp is better, correct? For simple math, let’s say our MFJ income is 500k on W2 and 1099 income is 100k. The SE tax on 100k is quite a bit under sole proprietor and as pointed out above, we’d save ~2.9% tax if it’s distribution. Also, there’s no SS tax on...

financial.freedom

The general benefit of an S-Corp is that you can pay yourself reasonable compensation, and then take the remaining profits as distributions. Those distributions are not subject to payroll taxes. If your "reasonable compensation" exceeds the social security tax limit, the benefits are rela...

financial.freedom

I’m up for partnership and partners are paid W2 income via C Corp. They also receive side income for another business paid on 1099. Some partners have set up S Corp for the 1099 income. Because I’m in a service profession there’s no 199A deduction allowed. Per our CPA, my wife and I can both set up ...

financial.freedom

Thank you for all of the replies, greatly appreciated. Since the start of this thread, we've looked into private schools and testing. We've also talked with his teacher. The teacher said skipping a grade is not an option. A few years ago, they used to group kids by reading and math abilities but for...

financial.freedom

How will you know if a private school will be better? We've had our kids in private, public and parochial schools. Each one had a huge downside. Only after they've been in the school and then out of it for a while will you really, really know. Now that we're completely out of the schools and in col...

financial.freedom

bgf wrote: ↑Fri Oct 11, 2019 7:05 pm did your child figure these things out himself or did you teach them?

I never taught that to him. I didn't even know he knew anything about division. They've only taught basic addition so far in 1st grade.

financial.freedom

Teacher here, While in public school ask for a giep evaluation (gifted individualized educational plan) otherwise your paying out of pocket to get one done. Then once you have that, you can have input on what his strengths are and how to best grow them. The eval will also see if there is any Maskin...

financial.freedom

Usually, "good" public school admins/systems don't allow skipping grades (for many reasons...). Anticipate an uphill battle with little progress and much frustration. Also, the child may already have social circles that he/she bonded with, etc. Interesting. I skipped a grade in elementary...

financial.freedom

Usually, "good" public school admins/systems don't allow skipping grades (for many reasons...). Anticipate an uphill battle with little progress and much frustration. Also, the child may already have social circles that he/she bonded with, etc. New private schools that advertise "ind...

financial.freedom

I can't help you decide about public vs. private but maybe he could move up a grade? Compared to my kids, he sounds as though he is very gifted at math. Several years ahead of your average child. It may be up to you to challenge him at home or pay for extra tutelage outside of school if private sch...

financial.freedom

It sounds like a potentially gifted child. Private or public - neither may have teachers/programs who know how to deal with them. Look for schools that have a program for the gifted and take a test. Not all gifted programs are good either. Also if you have the time and resources, you can homeschool...

financial.freedom

Request an IEP. We worked with the school system until we had enough. Even the pull out program couldn't challenge him. He ended up skipping 6th grade. Still was never challenged until Masters in Engineering. Private school may yield little advantage. Thank you, I had no idea that existed or that w...

financial.freedom

It sounds like a potentially gifted child. Private or public - neither may have teachers/programs who know how to deal with them. Look for schools that have a program for the gifted and take a test. Not all gifted programs are good either. Also if you have the time and resources, you can homeschool...

financial.freedom

Great, thank you for the advice!

It sounds like the UPS "investigation" for the package can take up to 8 business days.

Should I wait until the end of their investigation to dispute the charge?

financial.freedom

I live in an affluent area with a public school that has great ratings (10/10 on greater school website etc.). My son is in first grade, and I noticed that he was pretty bright before starting kindergarten. A lot of kids were learning the alphabet and reading very basic books, and our son was alread...

financial.freedom

Thank you for the reply, I will call the credit card company. That implies that you have already asked the seller for a replacement or a refund, and they would not comply. Correct? They said they would contact the shipping company via email a couple days ago. I emailed them again as follow-up and n...

financial.freedom

Thank you for the reply, I will call the credit card company. That implies that you have already asked the seller for a replacement or a refund, and they would not comply. Correct? They said they would contact the shipping company via email a couple days ago. I emailed them again as follow-up and n...

financial.freedom

Thank you for the reply, I will call the credit card company. That implies that you have already asked the seller for a replacement or a refund, and they would not comply. Correct? They said they would contact the shipping company via email a couple days ago. I emailed them again as follow-up and n...

financial.freedom

How did you pay for it? If it's paypal or a credit card, contact them and tell them that you have not received the item you paid for. They'll give you the money back and claw back the money from the seller. That seems to be the only way to get the attention of some sellers. As a seller, I had one i...

financial.freedom

I purchased an item online for about $730. Because it was an expensive item, I waited by the door almost all day (they couldn't narrow down the window for me when I called them). At 9pm, it hadn't been delivered. I called UPS the next morning -- they said it went out for shipment but was never deliv...

financial.freedom

I need a part that is custom made and not found anywhere for my pool drain covers. I'm thinking of ordering one from a website that offers 3D printing.

Does anyone have a recommendation for a good company or tips?

Thanks!

financial.freedom

Here is an earlier thread: https://www.bogleheads.org/forum/viewtopic.php?t=213662 and there are many more. I have tons of time because I don't worry what other people think about my clothes, my car, my yard, my house, my kids. I didn't even have to spend any money on not worrying. Example: Toddler...

financial.freedom

The 3.76% is YTD total return, not the yield. To be comparable to the HELOC rate of 4%, you need to use the yield (TTM) of 1.96% or the SEC yield of 1.36%. I think it is a good compromise to use both low yielding debt and HELOC in your situation. I think a lot of people are uncomfortable using thei...

financial.freedom

These are our munis in taxable: Vanguard California Long-Term Tax-Exempt YTD: 8.81% Vanguard Limited-Term Tax-Exempt YTD: 3.76% Assuming HELOC at 4% with interest tax deduction, it would be about 2.4% AFTER TAX since we live in CA So it makes sense to sell limited term first then use HELOC to invest...

financial.freedom

Cherijoh, Investment interest expense (IIE) is still allowed as an itemized deduction even though the calculation is different after 2017. See IRS form 4952 and instructions for detail. And investment expenses (IE) are no longer deductible because of the elimination of the misc. itemized deductions...

financial.freedom

My medical group is expanding and there's a new investment opportunity in a new medical center. The last time this occurred, I was able to invest and overall value doubled in the first year with yields 20-30% thereafter. This time around, I do not have a lot of cash to invest but would like to inve...

financial.freedom

My medical group is expanding and there's a new investment opportunity in a new medical center. The last time this occurred, I was able to invest and overall value doubled in the first year with yields 20-30% thereafter. This time around, I do not have a lot of cash to invest but would like to inve...

financial.freedom

I've had this similar situation come up several times the last five years. It depends on how fast you can pay down the HELOC and what interest rate you can get on it. I personally have an accordion feature on my HELOC that makes it extremely easy to tap when opportunities come up then payoff shortl...

financial.freedom

My medical group is expanding and there's a new investment opportunity in a new medical center. The last time this occurred, I was able to invest and overall value doubled in the first year with yields 20-30% thereafter. This time around, I do not have a lot of cash to invest but would like to inve...

financial.freedom

My medical group is expanding and there's a new investment opportunity in a new medical center. The last time this occurred, I was able to invest and overall value doubled in the first year with yields 20-30% thereafter. This time around, I do not have a lot of cash to invest but would like to inve...

financial.freedom

My medical group is expanding and there's a new investment opportunity in a new medical center. The last time this occurred, I was able to invest and overall value doubled in the first year with yields 20-30% thereafter. This time around, I do not have a lot of cash to invest but would like to inves...

financial.freedom

gasman wrote: ↑Fri Sep 06, 2019 12:19 pm If you go this route, you might get a lower level of devotion to work from the employee docs than you have traditionally experienced from partners and partnership track docs.

Yes, that is one of my concerns. What does your group do? I think we could offer RVU incentive bonus as an alternative.

financial.freedom

You probably aren't getting responses because im betting few people have experience in this area. If you cut off the partnership route, now you are competing for new physicians differently. What do other clinics in your area do? Why would good physicians rather work for you vs them? good point, we'...

financial.freedom

[merged into existing topic - moderator prudent] Our group is expanding and some are considering ending the partnership track, so we'd only hire salary-based physicians. In the past, it was always partnership track after 3 years of associate. But now partners feel their income keeps getting "d...

financial.freedom

Just bumping up to see if I can get a response.

I think setting up as shares for the new LLC might be best and have new partners buy-in.

Then the partners selling shares would pay capital gains tax, correct? Would be a lower rate for us.

financial.freedom

Our medical practice is expanding. In the past, there was a buy-in for the hospital contract accounts receivable split equally among partners. Then we expanded to outpatient centers as a separate LLC. The accounts receivable (AR) were split among existing partners. New partners split AR from the col...

financial.freedom

Honestly, I think to myself, “OMG that’s a lot of money for a house!” Amen My childhood was in poverty, low-income housing. Time with loved ones matters more, and I don't need a fancy house to be happy. This is mostly about numbers. My neighbor purchased a home for 5M a few years ago and now it's w...

financial.freedom

How much do you think an interior designer and furniture costs for a 4M house in SoCal? How much of your time does it consume? How much spare time do I care to spend meeting with designers and picking it out, waiting for shipments, etc etc There must be full service designers that can do everything...

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