Don't Lose the Small Business Deduction
Taivi Tayler • November 7, 2024
In the business world, earning passive income without putting in significant effort is an attractive idea—it's a fantastic way to grow your corporate wealth. However, there are limits to how much passive income you can earn before facing financial consequences.
Here’s the issue:
- You can earn $50,000 corporately in passive income without penalty.
- Every dollar over that limit sacrifices your Small Business Deduction—and losing that deduction can cost you significantly.
The impact?
- Your tax rate increases substantially, and the penalty is harsh: a $5 cost for every dollar over the limit.
The good news is that there’s a simple solution.
- By shifting assets from a tax-exposed environment to a tax-exempt one, we can resolve this issue effectively.
At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy. Learn more today.
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A successful business owner sought a way to convert corporate profits into retirement savings without raising her personal income.
A retired couple with a blended family and $6 million in assets sought our help to ensure their estate plan was fair, protected, and tax-efficient.
