The 3 Nastiest IRS Taxes That Can Cost You $1,000s Of Dollars

VIDEO TRANSCRIPTION – The 3 nastiest IRS taxes that can cost you $1,000s of dollars. This is tip one of three. Hi, I’m Steven D. Cooper. Your tax strategist, also known as Coach Coop with Coopers Accounting Service, because your financial freedom matters. 

If you’d like to learn more great tax tips, download our popular financial guide at our website, your financialfreedommatters.com or click on the link below this video. 

Number 1, it has different names, and I won’t go through the different names. SE tax also means self-employment tax or social security tax.This tax is taxed at 15.3%.

Half of it as a deduction, then half of it as a tax. As we were seeing the client this past Friday, the client was set up as a Schedule C business. Schedule C businesses, most of 1099s, as well as partnerships, as well as single member LLCs, all governed to be subject to self-employment tax. 

So in this client, example, he was subject to a ten thousand dollar self-employment tax. So once we move him to a more better entity, we’re going to save him $10,000. 

So in this case, this is 21 or 25, that’s going to be 10,000 x 5. So it’s over $50,000. That’s also going to save him penalties and interest as well, too. So it is a natural amount of money that we’re getting ready to save this client.

Just by changing the entity formation. Remember that, if you’re in the wrong entity, or in some cases, you’re in an entity where some tax advisors are not skilled in doing business tax returns, they feel more comfortable doing the schedule C or Schedule E. 

Schedule E is designed for real estate related transactions. For example rental properties they will not tell you that they don’t have the skill set to do business tax returns because it will not work out in their best interest because they may lose you as a client.

But your best interest is to find a business tax strategist or someone that’s more familiar with doing business tax returns.

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If you’d like a free 20-minute smart money consultation, give us a phone call at 562-436-2600. Well again, I’m Steven D. Cooper. Your tax strategies with Coopers Accounting Service.

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