This was helpful.

Can you qualify as a RE professional if you have a w2 but get your real estate license solely for the purpose of offsetting w2 income while having passive losses via rentals?

Hi Navi, great video thank you again my question is I’m switching from a single owner LLC which for the last two years allow me to maximize my contribution to 66k+. So whats going to happen if I switch to S Corp and I employ my wife and kids, would I still be able to maximize my contribution to 69,000 for 2024?

So do you deduct the QBI deduction from your total taxes paid? On the sole prop side?

Does that calculator not include the standard tax deduction? You can do that bc you already deducted your itemized expenses?

Great video can I still keep my SEP IRA and contribute the maximum of 69,000 (2024) each year if I switch from single owner LLC to S Corp.?

Thanks for the breakdown! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?

Thank you! Very helpful!

Please explain the FIT tax for S corps.

By far the best explanation on youtube. And the excel layout helps tremendously.

This video really helped me from making a big mistake. Really genuinely appreciate this.

The purchase price of our house was 85k, now it will fetch around one million. We are retired, in our 60’s with no income basically except SS. What then?

Thank you for making this content Navi, it's so easy to follow and understand. Love your insightful content! Keep doing what you're doing!

Im about to sign up. One quock question. How do i update the irs like 2553 form with the appropriate shsreholder information?

MY husband had a W2 income ~91k till August. A on going 1099, close to 100k. New vendor (same 1099 assignment) he plans to work with starting in October has two options either C2C (no 1099) or W2. Should he create a LLC/Scorp this late in the year considering two form of insurance will cost approximately $1200 and other costs you have mentioned in this video? He plans to use the the S-Corp in 2025.

Just to save anyone some time whom wants to try this. If you work for a relatively small company, most likely something called an ACP test will get in the way of you doing a mega backdoor Roth. Essentially you can't have your HCE (highly compensated employees. 150+ salary) have a higher employer contribution % than the NHCE (non highly compensated employees) by more than 2%. It's some anti discrimination law put in place when the 401k was invented. Though "safe haven" 401k rules remove the need for ACP tests, "after-tax contribution" to a safe haven 401k still require an ACP test. And unfortunately even though you are contributing your own after tax money, after tax contributions are considered employer contributions for record keeping purposes (or at least a portion is). So sadly my employer couldn't do it. Maybe you'll have better luck at a larger company 🤷🏼‍♂️ Good luck. But honestly idk how anyone is ever able to do this because 2% contribution difference seems quite restrictive

This is such an amazing video. Thank you. I understand S-Corp don’t pay taxes, but what about the quarterly payroll reports? What are those all about? Seems like to much work! Any links to a video? Thank you

A Solo ROTH 401k plan would also reduce your payroll taxes like an HSA and health insurance......

My dad gave me his home that was given to him. Now he wants to buy it from me. Do I have to pay capital gains taxes? Of course I’m selling it to him well below market value and gifting him the equity.

Won't the S Corp eventually have to pay tax on the 60,000?

Your videos are excellent. You have a dedicated agenda without jibber jabber, clear video and audio, and speaks to people who are not CPAs. I've seen a few other videos and you mention about book royalties may not be taxed as self employment, as it is intellectual property and not a service. I would love to hear more about this topic. I have set up my business as an author as a SMLLC, but was considering being taxed as an S corp if I do exceed $40k.

Very informative, thank you!

I am from the Philippines and want to understand more about this topic. Thanks for the knowledge.

Could you put some of the $56K in a solo 401K?

switching from Single member llC to multi member and tax as S corp, do you need to file 8832 first, check off tax corp, and then 2553 to tax as S corp ? Thanks

What if the s corp pass through income is in the highest tax bracket ~37%? Does it make sense to convert to a C Corp at that point?

If you are paying quarterly and estimating taxes, how can you factor in the standard deduction ($12,550)? Or should you always just pay full estimation and use this at year's end to help possibly get some money back?

Great video Navi Again love these informative videos and how you are explaining with the tax forms and the visuals Appreciate this so much!

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Why wouldn't you also have bookkeeping fees if the company was a sole p. LLC?

Amazing explanation!! Thank you!

Is the rental income and capital gains from real estate owned in an HSA income tax free?

Thanks for the explanation. I just became an LLC and i already hired a bookkeeper, I have three employees - using Gusto, and using an accountant to file sales tax and imcome tax. Since I am already using those services - paying for it, getting a S Corp seems like a way to go. Am i right?

Very helpful. Thank you! How do you add a new shareholder to your existing S-Corp?

Thank you for your video. What about for a day trader that makes over 100K a year from trading? It is good to transition from LLC to S-Corp?

​ I'm confused. You have to pay income tax on the money you didn't take out each year. And one day when you decide to pay yourself a salary, wouldn't you be paying income tax again from the same money?

People need to see the tax deduction as a discount on the purchase and not a way to reduce costs or to get a free car. If you want to buy the more expensive car and you can afford it - cool go for it, but know you won't be saving any money, you will just be paying a bit less for your vehicle.

If I am filling this out as a single member LLC disregarded entity, can i use my DBA name instead of of the entity name in line 2?

This is a legitimately helpful video

Hello, I would like to know if this apply for investment properties?

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

Laywerly Recommendation Folks! An LLC remains an LLC so no change. The IRS tax portion is apples and oranges. The S Corp. is a tax benefit only! It merely is a pass-through tax selection.

Good explanation just does give you info on how to go about the actual process of purchasing a vehicle

as someone with ZERO tax knowledge even back when i was under W2's this is explained so well, i understood everything! thank you so muchhhhh

Great info. Form Accountant that doesn't do taxes. It's been a while since I did a 2553. So getting refreshed. FYI, the IRS form now comes with the fax number on a title page. Based on state, there are two fax numbers to choose from.

Can I schedule a call with you? I launched my LLC in 2024 and need help organizing.

Don't they pay SUTA & FUTA?

I downloaded this form and it wouldn't let me fill it out. I keep getting a message saying the form can't be edited

Many thanks

Navi, Option 3 does not actually hold up in a reasonable compensation audit. They will still reclassify the 1099 as W-2 and hold the company accountable for late payroll deposits and non filing penalties of 941 despite them already receiving the FICA funds via self employment tax. This option is not that different from Option 1 in terms of total penalties faced.