Self-Employment Tax Strategy (Not Available)

Author: Stuart P Sobel

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law for CTEC
2 hours Federal Tax Related for EAs and OTRPs

It is neither immoral nor unethical to look for ways to reduce one's tax liability. The 15.3% self-employment tax asserted against sole proprietors, farmers, partners, and others is an enormous burden for the typical taxpayer.

This unique class provides strategies to reduce self-employment taxes by implementing effective tax planning techniques.

Publication Date: November 2014

Topics Covered

  • What is self-employment tax?
  • Self-employment tax planning issues for partners
  • Trade or business? — impact of the Groetzinger case
  • Contesting a Form 1099-MISC — line 21 or Schedule C?
  • Disclosing a questionable position — avoiding penalties
  • Deducting spouse's insurance on a Schedule C
  • Husband and wife joint venture — reducing self-employment tax for one spouse
  • Request for employment tax ruling — eliminating self-employment tax and substituting FICA tax
  • LLC guaranteed payments or one-time payment?
  • Reducing Schedule C income through home office and auto expense allowances
  • Become an expatriate and pay less self-employment tax
  • Create an S corporation and pay reasonable salaries
  • Retirement strategies for the older taxpayer that reduce self-employment tax for a person currently receiving social security
  • Trader, investor, and market-to-market election — Schedule C with no self-employment tax

Learning Objectives

  • Recognize self-employment tax requirements
  • Distinguish between trade or business activities
  • Apply techniques to reduce self-employment tax liability through effective tax planning
  • Structure businesses that will reduce their clients' tax liability



Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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