Self-Study: Surgent's Reducing a Business Owner Client's Exposure to Social Security and Self-Employment Taxes

Overview

This course is available until April 30, 2025.

Many business owner clients wish to minimize their Social Security and self-employment tax liabilities. This course provides tax practitioners with the background to understand what kinds of income constitute self-employment income and earned income. It covers strategies that can be used to reduce clients’ exposure to the self-employment tax and Social Security tax.

Highlights

• Section 1402(a)(1) exclusions from the definition of self-employment income
• Application of the SE tax to members of limited liability companies
• Taking a self-employed owner's health insurance deductions against self-employment tax
• How using the S corporation and the MMLLC treated as a partnership can help reduce an individual's exposure to self-employment tax
• How hiring a spouse and/or child helps reduce self-employment tax
• Differentiating between income treated as self- employment income and income that is not self-employment income

Prerequisites

Basic knowledge of individual income tax

Designed For

Tax practitioners who advise clients with regard to their self-employment tax liability

Objectives

• Determine when avoiding earned income/SE income works favorably for the client
• Understand how hiring a spouse and/or child helps reduce self-employment tax
• Differentiate between income treated as self- employment income and income that is not self-employment income