Planning can help identify lawful options, but savings depend on eligibility, timing, costs and the relevant tax year. Henriquez Accounting can discuss planning for individuals, landlords and small businesses in Tampa Bay; confirm the deliverables and responsible professional in a written engagement.
Table of Contents
8 Planning Topics to Discuss
- Entity review: Distinguish the legal entity from its federal tax classification. Compare eligibility, payroll, administrative costs and owner circumstances before making an election.
- Comp & draws: Reasonable salary, distributions, owner basis
- Timing: Defer/accelerate income & expenses; safe harbors
- Credits: Review eligibility, phaseouts, effective dates and expiration for the applicable tax year.
- Deductions: Home office, vehicle, Section 179, bonus depreciation
- Retirement: SEP, Solo 401(k), cash balance strategies
- Real estate: Cost segregation, 1031, STR/LTR rules
- Bookkeeping: maintain supporting records and perform agreed reconciliations. Records must support reported income and deductions; a monthly close does not guarantee that an audit will find no issues.
1) Entity Choice and Overall Costs
An S corporation election requires eligibility and a review of total taxes, reasonable compensation, payroll, administrative costs and owner circumstances. Profit alone does not establish that an election is available or beneficial. Model the consequences before recommending a change. See IRS S-corporation guidance. Discuss the agreed scope of accounting and bookkeeping and tax preparation.
2) Timing & Safe Harbors
Income and expense timing must follow the applicable accounting method and tax rules. Review estimated payments and any safe-harbor requirements for your circumstances; forecasts do not guarantee that penalties will be avoided. Confirm whether periodic Controller/CFO reviews are included in your engagement.
3) Credits & Deductions You Might Be Missing
Credits and deductions have different effects and eligibility requirements. Keep supporting records for business use, expenses and any reimbursement arrangement. Do not assume a credit remains available or that an accountable plan applies to every owner.
4) Retirement Plans for Owners
Compare retirement-plan eligibility, employee coverage, contribution limits, setup deadlines and ongoing costs. Coordinate tax analysis with an appropriately qualified plan or investment adviser when needed; deductions and investment returns are not guaranteed.
5) Real Estate: Cost Seg, 1031 & STR
Cost segregation, like-kind exchanges and rental activity rules require separate eligibility reviews and documentation. Short-term rental losses are not automatically deductible against wages; activity classification, participation and other loss limits can affect the result.
Planning Engagement Steps to Agree
- Discovery: Agree on the discovery meeting and information needed before work begins.
- Plan: Agree the written planning deliverables and the analysis included in the engagement.
- Implement: Define implementation responsibilities. Payroll, retirement and policy work may require separate eligibility checks and qualified advisers.
- Monitor: Agree the review schedule; the engagement defines what is included.
FAQs
How soon can a tax strategy save money?
The timing and amount of any savings depend on eligibility, deadlines and implementation costs. Paying estimated taxes is not itself a reduction in the total tax due.
Do I need perfect books before planning?
Complete, reconciled records support planning. Ask whether cleanup is available and agree its scope, affected periods and timing before relying on the reports.
Is an S-Corp always better?
No universal benefit follows. Review eligibility, owner circumstances, reasonable compensation, payroll, total costs and state treatment before comparing the alternatives.
Can real estate losses offset W-2 income?
Rental losses do not automatically offset W-2 income. A professional must review the activity classification, participation requirements and applicable basis, at-risk and passive-activity limits before determining whether a loss is currently deductible.
Ready to Discuss Your Planning Records?
Schedule a consultation to discuss your tax planning questions. Confirm the scope, fees, deadlines and any work requiring a separate retirement, legal or investment adviser before proceeding.
Services: Tax Preparation •