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Apparently it's pretty safe from an audit standpoint if you pay yourself at least $118,500, the maximum amount that is taxable for Social Security. Of course, t
by pw 10y ago
Apparently it's pretty safe from an audit standpoint if you pay yourself at least $118,500, the maximum amount that is taxable for Social Security. Of course, that means you just save the 2.9% tax for Medicare on any remaining income.
Still, I totally agree that it's unethical.
- pw 10y agoSee here for details, as well as a good person to follow if you find taxes interesting: http://www.forbes.com/sites/anthonynitti/2016/08/12/clintons-paid-3-6-million-in-federal-tax-in-2015-could-should-have-paid-a-lot-less/ http://www.forbes.com/sites/anthonynitti/2016/08/12/clintons...
- zrail 10y agoMy accountant put it this way: nobody gets audited for paying themselves more than zero salary. Reasonable salary comes into play if you get audited for something else.
- tptacek 10y agoSo that's the opposite of what mine said, but: definitely I think you should listen to your accountant more carefully than HN comments.
- koolba 10y ago> So that's the opposite of what mine said, but: definitely I think you should listen to your accountant more carefully than HN comments. Ha! "But foobar22 on the internets said it'd be okay if I claimed X as a deduction? Why am I being auditing?!" There should be a global disclaimer when you sign up for an HN account that tells you to listen to your lawyer, your doctor, your accountant ...