Timeline for Can I turn myself into a pass-through corporation in order to save money on income tax?
Current License: CC BY-SA 3.0
17 events
| when toggle format | what | by | license | comment | |
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| Jan 15, 2018 at 22:43 | vote | accept | cxrodgers | ||
| Jan 15, 2018 at 18:02 | answer | added | Rob Rose | timeline score: 2 | |
| Jan 10, 2018 at 22:34 | comment | added | Andrew Cassidy | @DavidSchwartz I interested in this question as a freelance software engineer. Am I blocked in the same way as accountants and lawyers? | |
| Dec 20, 2017 at 23:04 | comment | added | Xalorous | Another question about this mentioned a limit of 315k (married). Above this you can't deduct any on pass through. Also, you should strongly consider how this interacts with the new, expanded, base deduction. | |
| Dec 19, 2017 at 19:30 | comment | added | TTT | @cxrodgers - yes, that was my thinking, but it looks like my thinking was referring to the House Bill, which capped the pass-through income tax rate. The Senate bill provides a deduction on all pass-through income regardless of amount, so it could potentially make sense to any amount of income. However, you still have to pay an additional 7.65% on your salary when you're a pass-through, so you'd have to counter that first to make it worth it. | |
| Dec 19, 2017 at 18:13 | comment | added | Ben Miller | I think this question is too broad. With the lack of detail from the OP's situation and the fact that we are talking about something that is not law yet, I think a comprehensive answer would be too complicated for our format. I've already written and deleted a long answer, because it is just too early to speculate on how the final law (and its interpretation by courts) will change things. | |
| Dec 19, 2017 at 17:59 | comment | added | cxrodgers | @BenMiller The situation in my industry (academia) is complicated because it is a legal gray area whether we are considered independent contractors or not. See also money.stackexchange.com/questions/77422/… which basically says it's a judgment call. I didn't want to derail this thread with the complexity of my own situation. I do understand your point that the details matter, I was hoping for a general answer (if you are a contractor then X otherwise Y) but maybe this is not possible | |
| Dec 19, 2017 at 17:54 | comment | added | cxrodgers | @TTT Why is there a tipping point, is it because above those values my marginal tax rate would be above the corporate marginal rate? | |
| Dec 18, 2017 at 16:16 | comment | added | TTT | How much is your income? There is probably a tipping point where it makes sense to consider it. I haven't tried to calculate it, but I'm guessing the income would be somewhere around 83K if single, and household income of 165K if married. | |
| Dec 18, 2017 at 12:29 | comment | added | Ben Miller | I found the answer to my question in your previous revision. This information really does need to be included in this question, as the answers will be different for people in different situations. | |
| Dec 18, 2017 at 5:27 | comment | added | Ben Miller | Do you currently have a business, or are you an employee of someone else's business? | |
| Dec 18, 2017 at 2:48 | history | tweeted | twitter.com/StackFinance/status/942587459115933706 | ||
| Dec 18, 2017 at 0:45 | comment | added | David Schwartz | What kind of work do you do? | |
| Dec 17, 2017 at 21:55 | history | edited | cxrodgers | CC BY-SA 3.0 |
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| Dec 17, 2017 at 13:16 | history | edited | Chris W. Rea |
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| Dec 17, 2017 at 12:08 | comment | added | RonJohn | What research (as in googling "incorporating as an independent contractor") have you done. | |
| Dec 17, 2017 at 7:23 | history | asked | cxrodgers | CC BY-SA 3.0 |