I keep seeing pass-through income that one can do without paying a bunch of taxes? I'm trying to make sense of the new tax plan, but I am unsure. I am currently a sole proprietor. Should I form a LLC to get the tax break if that is what it really is?
Tax plan
Discussion in 'Trucker Taxes and Truck Financing' started by Pup97, Dec 16, 2017.
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An S corp is what gives you the pass through, however if this new tax plan goes through I am wondering if one would be better off with a regular C corp being it will bring a lower tax rate for corporations
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There are obviously red flags if one takes an inordinate amount out as a dividend. When I did my research the ratio should be around 75% W-2 wage and 25% dividend.
Being able to get the S Corp classification from the IRS is not a given either. There are a few hoops you have to jump through, which I would recommend a competent CPA help you with.Midnightrider909, blairandgretchen and Pup97 Thank this. -
@cat smoke You will want to do an LLC and have it taxed as an S corporation. There isn't a dividend like Scotter is suggesting. There are distributions, which are tax free relative to the amount of basis you have in your stock. With the 2018 tax changes and LLC will be more advantages due to new deduction for flow through income that will be taken on the personal tax return.
blairandgretchen and Pup97 Thank this. -
Watching this post closely.
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blairandgretchen Thanks this.
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Does anyone recommend ATBS to do their taxes?
Or can I get good suggestions on an excellent trucking CPA to do taxes for my first year filing?
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