Self-Employment Tax Strategy

Author: Stuart P Sobel

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law for CTEC
2 hours Federal Tax Related for EAs and OTRPs

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.

Publication Date: November 2014

You can view the on-demand webcast at your own pace (using fast forward and rewind controls). In addition, supporting materials are available for download. You can view the program at any time and as often as you like. You have access to the recording for one year from date of purchase.

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

  • Recognize self-employment tax requirements
  • Distinguish between trade or business activities
  • Apply techniques to reduce self-employment tax liability through effective tax planning
  • Structure businesses that will reduce their clients' tax liability



Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

Registration Options

Regular Fee$49
Value Pass Fee$0

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