Main Street Business #539 The 4 Best Tax-Write Offs NO ONE Talks About... w/ Karlton Dennis
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Oct 29, 2024 
Karlton Dennis, an enrolled agent and tax strategist with a notable YouTube following, joins the conversation to share hidden tax-saving gems. He discusses the advantages of switching from an LLC to an S corporation, emphasizing self-employment tax reductions. Strategies for involving kids on payroll as a tax deduction are explored, potentially saving families significant amounts. Dennis highlights the importance of year-end retirement contributions and the use of self-directed accounts for investing. A must-listen for entrepreneurs eager to optimize their taxes!
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Switch To An S Corporation
- Reclassify an LLC to an S corporation by filing Form 2553 to cut self-employment tax exposure.
- Start this before year-end and pay yourself reasonable payroll to convert profit subject to 15.3% into payroll taxes only on salary.
Backdate Your S Election For The Year
- You can backdate an S-corp election to January 1 to shelter 2023 income from self-employment taxes.
- Act quickly so you can set a salary before year-end and minimize 15.3% tax on business profits.
Use Board Meetings To Justify Travel Deductions
- Hold an annual board/board-of-advisors meeting and record minutes to strengthen asset protection and justify business travel.
- Bundle holiday travel with a documented board meeting to deduct travel, lodging, and meals as ordinary business expenses.