Spencer Accounting Group, LLC - Tax Planning and Preparation Services - West Allis, Milwaukee, Brookfield, Waukesha, United States and Saudi Arabia
  • Home
  • Pricing
    • Rush & Cancellation Policy
  • Let's Chat
  • Home
  • Pricing
    • Rush & Cancellation Policy
  • Let's Chat

FREE Tax Tips and Updates

Browse our blog for helpful tax planning and preparation information.

Married Couples in Business  Reduce Your Taxes

6/19/2018

0 Comments

 

Picture

​Tax Reform has taxpayers scrambling for strategies to lower their tax liability.  A spousal business partnership may be one solution.

Key Tax Benefits:

  • Your spouse’s income isn't subject to self-employment tax.
 
  • You two won't lose the benefit of the  new pass-through income deduction under Section 199A.
 
  • The IRS percentage of  audits of an partnerships is less  than proprietorships (Schedule Cs). ​
  • You don’t have to concern yourself with running payroll or determining your reasonable compensation as you would if you operated the business as an S corporation.

Contact Us!
The passive activity rules limit your spouse’s use of any losses against regular income. Which may be the only potential issue besides having an increase in tax preparation cost.
It is crucial to understand that a partnership doesn't mean your spouse work for you.  If you set up your structure where your spouse works for you then you must pay Social Security and Medicare taxes for your spouse.  The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and Social Security and Medicare taxes, but not to FUTA tax.
​


If you would like to discuss how your choice of business entity works in today’s tax environment, please don’t hesitate to contact us. 
0 Comments



Leave a Reply.

    We're Here to Help

    Get advice from our experienced network of financial managers. 
    ​

    If you Value our Blog, We have an ask.

    We spend hours researching data to help you understand your finances and taxes, including historical context, issues, and solutions. Our goal is to empower people to improve  their relationship with money. ​Please consider a $3 donation today.

    Tax Plan Video

    Important Disclosures


    Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

    ​
    To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
    ​
    These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

    GET STARTED

    Author

    Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion.  Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

    Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

    RSS Feed

    Accounting Services
    Tax Preparation
    Picture
    Picture
Home
Net30 Account Info
Privacy Policy
Contact Us

Picture
Picture
Picture
Copyright 2021 ALL RIGHTS RESERVED.
Photo used under Creative Commons from verchmarco