QBI and Self-Employment Tax Savings for S Corp. as a Partner

Here are three important questions for S corporation owners:

1. Do you own 100-percent of your S corporation?
2. Is your S corporation a partner in one or more partnerships and does it receive a combination of guaranteed payments and ordinary pass-through income from these partnerships?
3. Do you draw a salary from the S corporation for the services you perform for those partnerships?

If you’re answering “yes,” to these questions you need to consider if the S corporation pass-through income to you qualifies for the Section 199A deduction.

We’ll explain everything in detail when you read my new article titled Q&A: QBI and Self-Employment Tax Savings for S Corp. as a Partner.

Three ways our fact-filled article can help you:

1. We’ll tell you the bad news about qualified business income (QBI). Sorry, but one part of the pass-through income from your S corporation isn’t QBI and won’t qualify for the Section 199A deduction. You see, guaranteed payments are not QBI. The non-QBI guaranteed payment rule applies whether the partner receives the payment as an individual or as pass-through income from an S corporation. You’ll get the whole story when you read the full article.
2. You’ll learn how to take advantage of S corporation self-employment tax savings. With the right S corporation strategy, you can save money on self-employment taxes. This applies to the allowable S corporation pass-through income to you. You’ll get all the details when you read the full article.
3. We’ll explain two options you can use to increase your Section 199A deduction from your S corporation. For starters, you can reduce or eliminate guaranteed payments from the partnerships and receive the income as pass-through income. Or you can consider special allocations of partnership tax items in lieu of guaranteed payments. All will be explained when you read the full article.