The People Who Built Partnership Tax Law: A History of Subchapter K
If you’ve ever looked at a partnership agreement and wondered why the allocation provisions are 40 pages long, you’re not alone. The rules governing how partnerships divide income, losses, and deductions among partners — codified in Subchapter K of the Internal Revenue Code — are among the most complex in all of tax law. Probably […]
Can Real Estate Developers Avoid Self-Employment Tax on Partnership Income?
Can Real Estate Developers Avoid Self-Employment Tax on Partnership Income? Todd Phillips Mar 5 4 min read A recent federal court decision may significantly change how real estate developers structure their deals to reduce self-employment tax. In January 2026, the United States Court of Appeals for the Fifth Circuit issued a decision in Sirius Solutions v. […]
An Alternative to Quarterly Estimated Tax Payments?
Year-End Tax Timing: W-2 Withholding vs. Quarterly Estimated Payments For high-income earners, business owners, and investors, timing tax payments strategically can have significant cash flow and present value benefits. A commonly overlooked strategy involves paying taxes via W-2 wage withholding in December, rather than making quarterly estimated tax payments throughout the year. Understanding this difference—and […]
What are Deductible Business Expenses?
What are Deductible Business Expenses? Todd Phillips Mar 24, 2025 8 min read Social media is full of influencers claiming their G-Wagon is “100% deductible,” their Botox is a business write-off, and their latest handbag is “marketing.” The truth? Most of those claims won’t survive an IRS audit. There are legitimate expenses, and owning your […]
What are Deductible Business Expenses?
What are Deductible Business Expenses? Todd Phillips Mar 24, 2025 8 min read Social media is full of influencers claiming their G-Wagon is “100% deductible,” their Botox is a business write-off, and their latest handbag is “marketing.” The truth? Most of those claims won’t survive an IRS audit. There are legitimate expenses, and owning your […]
How Does My Inventory Accounting Method Impact My Taxes?
How Does My Inventory Accounting Method Impact My Taxes? Todd Phillips Feb 21, 2025 4 min read Inventory isn’t just a business asset—it’s a tax strategy waiting to happen. The way you track your inventory can significantly impact your taxable income, deductions, and cash flow. For small business owners, choosing the right inventory method is […]
Q: I want to employ my kids in my business, can I just put the money in their bank account?
A: Great idea! Employing your kids can be very rewarding for them and help them learn many life lessons, as well as a good chance to spend more time with them. And the tax benefits can be substantial. But – and it’s a big but – they have to actually do the work for you […]