It's something that should really be considered on a case by case basis, or at least until QBI sunsets next year (if it does).Considering FICA is 15.3%, and the QBI deduction is 20%, what am I missing here for why someone would now choose the S-Corp?
There are cases with high income from a specified service trade where the taxpayer is phased out of QBI anyway. Then it might make sense to at least avoid Medicare, SS wage base being maxed out either way, and QBI not an issue.
But, in general, QBI makes an S-Corp much less attractive for many.
As an additional follow-up, if you're not in a SSTB, does the QBI deduction no longer have a phase out, regardless of your overall income?
I find I get all sorts of answers on this.
Statistics: Posted by illumination — Fri Jul 19, 2024 11:19 am — Replies 5 — Views 330