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Apparently it's pretty safe from an audit standpoint if you pay yourself at least $118,500, the maximum amount that is taxable for Social Security. Of course, that means you just save the 2.9% tax for Medicare on any remaining income.

Still, I totally agree that it's unethical.



My accountant put it this way: nobody gets audited for paying themselves more than zero salary. Reasonable salary comes into play if you get audited for something else.


So that's the opposite of what mine said, but: definitely I think you should listen to your accountant more carefully than HN comments.


> So that's the opposite of what mine said, but: definitely I think you should listen to your accountant more carefully than HN comments.

Ha! "But foobar22 on the internets said it'd be okay if I claimed X as a deduction? Why am I being auditing?!"

There should be a global disclaimer when you sign up for an HN account that tells you to listen to your lawyer, your doctor, your accountant ...


See here for details, as well as a good person to follow if you find taxes interesting: http://www.forbes.com/sites/anthonynitti/2016/08/12/clintons...




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