Life Management CSIA csiaonline.org 9 a federal tax rate of 15% on the first $50,000 of taxable income. Your corporation can retain these earnings so you are not double taxed. If you had a personal marginal federal income tax rate of 28% and a state income tax rate of 7%, you would pay $17,500 in federal and state income tax on this $50,000. If, however, this $50,000 flowed to a Nevada C corporation, you may only pay the federal corporate tax rate of 15% (depending on the activity of the corporation), or $7,500, saving you $10,000 in taxes. Another application of this strategy is to spread income to children in lower tax brackets. Instead of paying your children’s expenses directly with after-tax dollars, hire your children and pay them for the work they do and have your children pay for their own clothes, food, school, etc. from the money they earn. You can deduct the wages as a business expense, and your children will pay taxes at their lower tax bracket. Strategy #3 - Maximize Deductions There are thousands of items that are allowed as business expenses. You want to make sure as many expenses as possible are deducted as business expenses. Expenses you may not be taking full advantage of as a business deduction are your medical expenses. Within a sole proprietorship or an S corporation, there BE BOLD. BE BLUE. ArmaFlex® Ultima is the Strong Choice. With patented ArmaPrene® technology, ArmaFlex Ultima sets the standard in fi re safety performance among fl exible elastomeric insulation. Its ultra-low smoke density and “listed and labeled” status add to the fi ber-free, low-VOC, and GREENGUARD Gold certifi cations you’ve come to expect from Armacell’s ArmaFlex family of insulation. Use it on your next project as your new fl ex. ArmaFlex Ultima is UL Classifi ed as to UL 723 at 25/50. R39561. © Armacell 2025. ArmaFlex and ArmaPrene are trademarks of the Armacell Group *US patent no. 8 163 811 YOUR NEW FLEX. Certifi ed to GREENGUARD standards for low chemical emissions into indoor air during product usage. For more information, visit ul.com/gg. Microban® is a registered trademark of Microban Products Company. continued on pg.10
View this content as a flipbook by clicking here.