AXIOMADVISORY ACCESSIBILITY STATEMENT

AXIOMADVISORY is committed to facilitating the accessibility and usability of its website, https://axiomadvisory.com/, for everyone. AXIOMADVISORY aims to comply with all applicable standards, including the World Wide Web Consortium's Web Content Accessibility Guidelines 2.0 up to Level AA (WCAG 2.0 AA). AXIOMADVISORY is proud of the efforts that we have completed and that are in-progress to ensure that our website is accessible to everyone.

If you experience any difficulty in accessing any part of this website, please feel free to call us at (619) 297-1878 or email us at hello@axiomadvisory.com and we will work with you to provide the information or service you seek through an alternate communication method that is accessible for you consistent with applicable law (for example, through telephone support).

Reduce Your Taxes by Making Your Spouse a Business Partner

July 3, 2018

Tax reform changed the rules of the game when choosing your best tax structure. In looking over the possibilities, a properly structured spousal partnership could be your best choice.

Here are the tax benefits to you:

• Your spouse’s income is free from self-employment tax.

• You and your spouse both still qualify for the new pass-through income deduction under Section 199A.

• The IRS audits partnerships at a much lower rate than proprietorships (Schedule Cs).

• You don’t have to worry about the costs or hassle of running payroll or determining your reasonable compensation as you would if you operated the business as an S corporation.
Here are the potential issues:

• The passive activity rules limit your spouse’s use of any losses against regular income.

• You have the cost of preparing a partnership return (but you’d have this cost with an S corporation too).

If you would like to discuss how your choice of business entity works in today’s tax environment, please don’t hesitate to contact us.

Leave a Reply

Your email address will not be published. Required fields are marked *