Self-Employment Tax Strategy (Currently Unavailable)

Author: Stuart P Sobel

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

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None