Tax Planning Services

The S-Corp election makes sense when your net business income is roughly $60,000 or higher. Here's why: you pay yourself a reasonable salary (subject to payroll tax), then take the rest as distributions (subject to income tax only, not the 15.3% self-employment tax). For many of our clients in Florida, Texas, and Georgia, this saves $2,000 to $8,000 per year. The trade-off is complexity: you'll need payroll processing and a separate tax return (Form 1120-S). We typically model both scenarios before recommending the switch. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

The QBI deduction (Section 199A) lets you deduct up to 20% of qualified business income from your taxable income, with limits based on your taxable income threshold. For 2024, the threshold is roughly $191,000 for single filers and $383,000 for joint filers. If you're below it, you get the full 20% deduction. Above it, limitations kick in based on W-2 wages and business assets. Most of our clients in high-income states like California find this deduction critical to their overall tax strategy. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Both let you save a lot for retirement, but they work differently. A Solo 401k lets you contribute as an employee (up to $23,500 in 2024) plus as an employer (up to 20% of net profit), capping around $69,000. A SEP-IRA is simpler (no filing required) but limited to 20% of profit. A Solo 401k gives you more control and flexibility, including loan provisions. We recommend the 401k for serious savers or those planning five-year Roth conversion strategies. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Roth conversions make sense in lower-income years: between jobs, startup losses, or during market downturns. You move money from a traditional IRA to a Roth, pay tax on the conversion amount, then enjoy tax-free growth forever. The key is doing it in a year when you're in a lower bracket than you expect to be later. We've helped Texas clients use conversion strategies in transition years to lock in lower rates before returning to high-income status. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Outright donations are simple but inefficient for large gifts. Donor-advised funds (DAFs) let you get a tax deduction now, then recommend grants to charities over time. For appreciated stock, donating directly to charity avoids capital gains tax entirely. If you're in California or Georgia and giving $50,000 or more annually, a charitable trust or fund is often worth the complexity. We coordinate with your family attorney to integrate giving into your overall estate plan. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Florida has no state income tax, which is huge for high earners escaping California's 13.3% top rate. The move pays for itself quickly if your income is $200,000+. But the IRS looks closely at relocation claims: you need to prove domicile through driver's license, voter registration, property deeds, and bank accounts. We help clients document the move to Florida carefully. Many of our Naples-based clients came from California, New York, or New Jersey specifically for tax reasons. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

An accountable plan reimburses employees for business expenses without that reimbursement counting as taxable wages. You can reimburse car mileage, home office, equipment, and travel without it triggering payroll tax. You must document expenses properly and it only works for actual business costs. Most small business owners don't use accountable plans, which is money left on the table. We help you set one up during the S-Corp transition. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

This gets complex fast. You're likely subject to both Florida corporate tax (if you elect S-Corp) and Georgia state income tax if you have Georgia-source income. You'll need to apportion income based on sales, payroll, and property. Georgia taxes your Florida-source business income unless it's truly derived from Georgia operations. We coordinate with your bookkeeper to track income by state, then prepare separate returns. Multi-state complexity is common for our clients serving Atlanta and Tampa markets simultaneously. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

A charitable remainder trust (CRT) makes sense if you want to donate highly appreciated assets (like real estate or stock), get an immediate tax deduction, keep income during your lifetime, and ultimately fund charity. You fund the trust with appreciated property, get a deduction for the charitable remainder value, and receive payouts for life or a fixed term. The donor-funded charity angle also locks in significant federal deductions. We work with estate attorneys on these structures. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

You'll want to show: square footage of your office space, total home square footage, mortgage statement or lease, property tax returns, utility bills, and insurance documentation. The IRS allows either simplified method (300 sq ft max, $5 per sq ft, up to $1,500) or actual expense method (depreciation, utilities, insurance, repairs prorated to office space). Most business owners underuse this deduction. We typically increase it once we audit client records. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.