CPE Course Library

2 hours
Certificate CTEC IRS NASBA

Self Employment Tax Reduction Strategies

Course Description

It is neither immoral nor unethical to look for ways to reduce one's tax liability. The 15.3% self-employment tax asserted against sole proprietors, farmers, partners, and others is an enormous burden for the typical taxpayer. This unique class provides strategies to reduce self-employment taxes by implementing effective tax planning techniques.

Topics Covered:

  • What is self-employment tax?
  • Self-employment tax planning issues for partners
  • Trade or business? — impact of the Groetzinger case
  • Contesting a Form 1099-MISC — line 21 or Schedule C?
  • Disclosing a questionable position — avoiding penalties
  • Deducting spouse's insurance on a Schedule C
  • Husband and wife joint venture — reducing self-employment tax for one spouse
  • Request for employment tax ruling — eliminating self-employment tax and substituting FICA tax
  • LLC guaranteed payments or one-time payment?
  • Reducing Schedule C income through home office and auto expense allowances
  • Become an expatriate and pay less self-employment tax
  • Create an S corporation and pay reasonable salaries
  • Retirement strategies for the older taxpayer that reduce self-employment tax for a person currently receiving social security
  • Trader, investor, and market-to-market election — Schedule C with no self- employment tax

Learning Objectives:

  • Understand self-employment tax requirements
  • Determine whether an activity is a trade or business
  • Develop techniques to reduce self-employment tax liability through effective tax planning
  • Structure businesses that will reduce their clients' tax liability

Delivery Method: Self Study
Field of Study: Other Federal Tax
Prerequisites: None
Advance preparation: None
Program Level: Basic
Expiration: In accordance with NASBA standards, access to this course will terminate one year from the date of purchase. Incomplete courses will no longer be accessible beyond the one year deadline.

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