OBBB personal tax issues

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arsene19

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Post personal finance OBBB moves you’re making. Politics other thread.

Sole FT 1099 about 900k. Going to S Corp 2026 since PTET would permit me to work around SALT cap. Had held off since wasn’t sure gonna be extebded. My state has a formal PTET mechanism

Outside that, don’t see any other moves.

Open to tips and advice!!
 
Last edited:
arsene19 said:
Post personal finance OBBB moves you’re making. Politics other thread.

Sole FT 1099 about 900k. Going to S Corp 2026 since PTET would permit me to work around SALT cap. Had held off since wasn’t sure gonna be extebded. My state has a formal PTET mechanism

Outside that, don’t see any other moves.

Open to tips and advice!!
Click to expand...
Single or married s corp? With or without kids on payroll? Put the kids and wife on payroll if pure 1099 and they don’t have income. But that’s not any new maneuver.

I live in Florida so no need for salt workaround

Law really doesn’t do much for me so no new changes to s corp strategy. I’m not too motivated to work this year. So made around 450k so far. Though June 30th. I have full time w2 and do 1099 on the side. Looking at around 750-850k taking 24-26 weeks off for 2025. Likely 500k w2 and 300k 1099 income.

In conclusion. Business as usual for me.
 
I don’t need to push boundaries with no tax on OT or family payroll stuff - wife makes more than I do W2, and kids are in college - I just match their incomes with Roth.

Just wanted to see if snyone else is doing nothing.

I was buying one rental a year, I may accelerate that and do the cost seg analysis and accelerated depreciation. In a few years when I hit 50 I plan to drop to 500 hours anesthesia and just acquire/manage portfolio and qualify for REPS.

Trump really favors RE
 
chessknt said:
Honestly why don't you just hire an accountant and make them worry about it... You're making almost 2 million a year and worried about how to save a few extra $1,000 on taxes? At some point there has to be a diminishing return on investing your time worrying about this.
Click to expand...


Because SDN experts know better than actual accountants.
 
A bit of a sensationalized title, ‘salt torpedo’, but nonetheless true problem if you’re between 500 and 600 AGI:

MSN
 
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ambiturner said:
A bit of a sensationalized title, ‘salt torpedo’, but nonetheless true problem if you’re between 500 and 600 AGI:

MSN
Click to expand...
Or 230k AGI if single. Which captures 99% of full time single anesthesiologists these days
 
pgg said:
Wait, what? 99% of full time single anesthesiologists have an AGI of $230K?

What on earth are you going on about
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The tax code is a big cliff between tax brackets.

That’s why no sane anesthesiologist who is single should take a w2 job especially in this job market.
 
aneftp said:
Or 230k AGI if single. Which captures 99% of full time single anesthesiologists these days
Click to expand...
If unmarried it’s still 500k. Another marriage penalty. We pay probably 30k a year extra in taxes due to various things like this just for being married
 
<(^_^)> said:
If unmarried it’s still 500k. Another marriage penalty. We pay probably 30k a year extra in taxes due to various things like this just for being married
Click to expand...
You think? The irs tax bracket is out dated as well. Because it assumes one spouse will be a stay at home spouse.

The ev tax credit phased at at 150k for single vs 300k for married. That is expiring

If someone is single making 500k AGI vs two people making 500k (married). Or a stay at home spouse and with married working spouse making 500k

The single person for all purposes is paying 20k more in federal taxes than the married person at the 500k w2 range.

Whatever the case. The irs isn’t helping the HENRY

IRS releases tax inflation adjustments for tax year 2025 | Internal Revenue Service

IR-2024-273, Oct. 22, 2024 — The Internal Revenue Service announced today the annual inflation adjustments for tax year 2025.
www.irs.gov www.irs.gov

Marginal rates. For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:
  • 35% for incomes over $250,525 ($501,050 for married couples filing jointly).
  • 32% for incomes over $197,300 ($394,600 for married couples filing jointly).
  • 24% for incomes over $103,350 ($206,700 for married couples filing jointly).
  • 22% for incomes over $48,475 ($96,950 for married couples filing jointly).
  • 12% for incomes over $11,925 ($23,850 for married couples filing jointly).
  • 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).
 
aneftp said:
You think? The irs tax bracket is out dated as well. Because it assumes one spouse will be a stay at home spouse.

The ev tax credit phased at at 150k for single vs 300k for married. That is expiring

If someone is single making 500k AGI vs two people making 500k (married). Or a stay at home spouse and with married working spouse making 500k

The single person for all purposes is paying 20k more in federal taxes than the married person at the 500k w2 range.

Whatever the case. The irs isn’t helping the HENRY

IRS releases tax inflation adjustments for tax year 2025 | Internal Revenue Service

IR-2024-273, Oct. 22, 2024 — The Internal Revenue Service announced today the annual inflation adjustments for tax year 2025.
www.irs.gov www.irs.gov

Marginal rates. For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:
  • 35% for incomes over $250,525 ($501,050 for married couples filing jointly).
  • 32% for incomes over $197,300 ($394,600 for married couples filing jointly).
  • 24% for incomes over $103,350 ($206,700 for married couples filing jointly).
  • 22% for incomes over $48,475 ($96,950 for married couples filing jointly).
  • 12% for incomes over $11,925 ($23,850 for married couples filing jointly).
  • 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).
Click to expand...
A few others: Mortgage deduction is 750k single, 750k married (the big one). And Medicare surcharge kicks in at 200k single, 250k married, relatively small but adds up.

My point is 2 high earning people can live together, buy a house together, have kids together and if they don’t marry they’ll save potentially 200-300k in just a decade.

That house deduction alone is worth about 17k a year in post tax $. If you’re borrowing 1.5M which a lot of dual high earner couples are.
 
<(^_^)> said:
A few others: Mortgage deduction is 750k single, 750k married (the big one). And Medicare surcharge kicks in at 200k single, 250k married, relatively small but adds up.

My point is 2 high earning people can live together, buy a house together, have kids together and if they don’t marry they’ll save potentially 200-300k in just a decade.

That house deduction alone is worth about 17k a year in post tax $. If you’re borrowing 1.5M which a lot of dual high earner couples are.
Click to expand...
The tax code is primarily written for singles making less than 250k and married people making less than 500k combined.

It’s fairly obvious thats how the tax code is designed. Because they desperately need to capture tax revenue somewhere.

But I agree if both of you combined make more than 600k AGI. There is no big advantage being married.

Medicare surtax is this generation AMT albatross. The gift that keeps giving and not indexed for inflation. It’s done on purpose since they desperately need revenue. When tax laws are not indexed. And Congress does nothing about it. You know they need the money. 200k/250k in 2009 when the tax law was written for the surcharge

200k in 2009 is now 300k. So the Medicare surtax should kick in till 300k for singles.
 
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