Pass-through Entities

Navigating taxes and compliance for partnerships and S corporations can be complex—but it doesn’t have to be. In this section, you’ll find expert guidance on everything from entity formation and pass-through taxation to K-1 reporting, reasonable compensation rules, profit distributions, and IRS compliance. Whether you're a new business owner or managing an established entity, these articles are designed to help you make smarter tax decisions and maximize your business's financial efficiency.

Two business partners sitting at a table reviewing documents and using a calculator to determine tax deductions, representing collaboration on unreimbursed partnership expenses.

Understanding Unreimbursed Partnership Expenses (UPEs)

ChatGPT said: Partners in a partnership often incur business expenses personally, such as travel, mileage, or office costs. When not reimbursed by the partnership, these out-of-pocket costs may qualify as unreimbursed partnership expenses (UPEs), offering potential tax deductions. However, claiming UPEs requires meeting specific IRS conditions and maintaining detailed documentation. Learn how partners can navigate these rules and decide whether reimbursement or deduction is

Christian Wolff

Oct 154 min read

Modern residential house with well-maintained landscaping, showcasing distinct building components such as exterior lighting, walkways, roofing, and attached garage—elements that may be evaluated separately in a cost segregation study for accelerated depreciation.

A Cost Segregation Study: Accelerated Depreciation for Real Estate Owners

A cost segregation study is a powerful tax strategy for real estate owners, allowing them to accelerate depreciation on their properties. By reclassifying specific building components into shorter-lived asset categories, investors can boost early-year deductions, reduce taxable income, and improve cash flow. Ideal for newly acquired, constructed, or renovated properties, this method offers significant savings when properly executed with professional guidance.

Christian Wolff

Oct 84 min read

Calculator, pen, paper clips, and business documents on a desk, symbolizing accountable plan setup and financial tracking for corporate reimbursements.

Why an IRS Accountable Plan Is a Smart Tax Strategy for S Corporation and C Corporation Owners

An accountable plan is a powerful, IRS-compliant tool that allows S and C Corporations to reimburse employees for business expenses—like mileage, home office use, and travel—without creating taxable income. This strategy ensures the corporation gets a full deduction while the recipient avoids extra tax liability. Learn how setting up a formal accountable plan can boost compliance, reduce taxes, and streamline reimbursements.

Christian Wolff

Oct 14 min read

A luxurious, modern home with elegant outdoor seating and large windows, showcasing an inviting short-term rental property designed for guests seeking comfort and upscale amenities.

Understanding the Tax Treatment of Short-Term Rentals: Schedule C vs. Schedule E

Short-term rental income is taxed differently based on guest stay length and services provided. Rentals with significant personal services and stays of 30 days or less are reported on Schedule C as active business income, subject to self-employment tax. Rentals with shorter stays and minimal services are reported on Schedule E but may still be non-passive. Understanding these rules helps hosts maximize deductions and avoid tax traps related to passive loss limitations.

Christian Wolff

Sep 285 min read

Photo of a nearly completed puzzle with the final piece being added, symbolizing completing a Roth IRA conversion strategy for a secure retirement.

Converting Your 401(k) to a Roth IRA While You're Still Working? Yep, It’s Possible.

If your 401(k) plan allows in-service distributions, you can convert pre-tax savings to a Roth IRA while still working—giving you a head start on building tax-free retirement income. This strategy lets your money grow tax-free, with no required minimum distributions later. You don’t have to convert everything at once; spreading conversions over several years helps manage taxes. It’s a smart move for high earners or anyone planning long-term retirement growth.

Christian Wolff

Sep 174 min read

Blue pickup truck parked on a street, representing a personal vehicle used for business. Ideal for illustrating IRS mileage deductions, including the 2025 standard mileage rate of 70 cents per mile and common tax strategies for self-employed individuals, gig workers, and small business owners.

Standard Mileage Rate: What You Can (and Can’t) Deduct for Business Vehicle Use

If you use your personal vehicle for business, you may qualify for valuable tax deductions. For 2025, the IRS standard mileage rate is 70 cents per mile—but that’s just the start. Learn the difference between the standard mileage rate and actual expense method, and discover commonly overlooked deductions like loan interest, property taxes, tolls, and parking. Whether you're self-employed or own a small business, these tips can help you maximize your tax savings.

Christian Wolff

Sep 105 min read

Three professionals having a business meeting in a modern office, discussing corporate and tax strategies.

What Is an S Corporation? A Guide to This Tax-Saving Business Structure

Thinking about forming a corporation for your business? An S Corporation might be the tax-friendly option you’ve been looking for. By allowing income and losses to pass through directly to shareholders, S corps help avoid double taxation—a major advantage for many small businesses. In this post, we explain what an S Corporation is, who qualifies, how to elect this status, and important considerations about asset distributions that every business owner should know.

Christian Wolff

Aug 245 min read

If you're a farmer, landowner, or just someone with an eye on rural tax policy, there's something in the recently passed One Big Beautiful Bill Act (OBBBA) that might interest you. One of the lesser-known—but potentially impactful—provisions of the bill is Section 70437, which introduces a new tax option for people selling farmland to other farmers.

New Tax Break for Farmland Sales: What’s in the “One Big Beautiful Bill Act” for Farmers?

If you're a farmer, landowner, or interested in rural tax policy, the new One Big Beautiful Bill Act (OBBBA) includes a provision worth noting. Section 70437 introduces a new tax option for those selling farmland to other farmers. Though it's flown under the radar, this change could have significant implications for agricultural land transactions. Here's what you should know.

Christian Wolff

Aug 133 min read

The White House, the official residence and executive office of the President of the United States, viewed from the front with the American flag flying atop the building.

Modernizing Federal Payments: What the New Executive Order Means for Americans

The U.S. government is phasing out paper checks for most federal payments starting in 2025. A new executive order mandates a shift to electronic methods like direct deposit and digital wallets to reduce fraud, cut costs, and improve efficiency. Learn what this change means for individuals, businesses, and agencies.

Christian Wolff

Aug 113 min read