Tax law requires S corporations to pay shareholder-employees reasonable compensation. The S corporation reasonable compensation calculator below estimates that number based on Bureau of Labor Statistics data, what a S corporation pays other employees, and what distributions a shareholder receives. Instructions and additional information about the calculator appears beneath the calculator. Shareholder Distributions: Highest Paid […] The post S Corporation Reasonable Compensation Calculator appeared first on Evergreen Small Business ..read more

The ‘super safe withdrawal rate” calculator below estimates certainty-equivalent returns and the Merton share. You can use these certainty-equivalent returns as ultraconservative safe withdrawal rates. And the Merton share as the optimal allocation to stocks in your portfolio. Click Calculate to see example calculations using historical averages. Or follow the instructions below the calculator to […] The post Super Safe Withdrawal Rate Calculator appeared first on Evergreen Small Business ..read more

You can use rules of thumb to determine what percentage to allocate to stocks versus bonds. Like “60 percent to stocks and 40 percent to bonds.” But Nobel Laureate Robert Merton developed a formula you can use to calculate a “Merton share” or optimal allocation to equities. The Merton share estimator below makes this calculation […] The post Merton Share Estimator appeared first on Evergreen Small Business ..read more

I’m not a real estate investment fanatic. I mean, sure, I think real estate investment probably belongs in most people’s portfolios. But you can do that efficiently by holding a REIT index mutual fund or EFT. Some folks can prudently buy the home or apartment where they reside. But after those obvious options? I’m pretty […] The post The Real Estate Investment Every Entrepreneur Should Consider appeared first on Evergreen Small Business ..read more

Operate your small business or real estate venture as a partnership or S corporation? You can probably get an extra year Section 199A deduction by changing from a calendar year to a fiscal year. You will probably need your tax accountant’s help to do this. And you need to plan now for making this change. […] The post How to Get Extra Year Section 199A Deductions appeared first on Evergreen Small Business ..read more

A short, technical post: You can possibly use a fiscal year change to get one additional year of Section 199A deduction. Even if the law does expire as scheduled at the end of 2025. For example, if you’re putting a big Section 199A deduction onto your return? Like a $1,000,000 deduction say? Or even bigger? […] The post Section 199A(i) Fiscal Year Change Extends Deduction appeared first on Evergreen Small Business ..read more

The Roth Calculator below helps you determine whether you end up with more retirement income using a Roth IRA or 401(k). Or using a traditional IRA or 401(k). By the way? Most people probably end up with a better outcome using a traditional IRA or 401(k). But you want to “run the numbers” Click the […] The post Roth Calculator appeared first on Evergreen Small Business ..read more

You can use the Home Investment Calculator below to estimate the pre-tax rate of return you earn by buying and living in a home. Just enter the your inputs into the boxes below and then click the Calculate button. If you have questions? No problem. Detailed instructions and additional information appear below the calculations. Collect […] The post Home Investment Calculator appeared first on Evergreen Small Business ..read more

A disclosure to start this discussion about using ChatGPT for determining S corporation reasonable compensation. I do not think the large language models like ChatGPT do a great job with tax accounting or tax law. They  don’t. Or at least not yet. And maybe never. But if you’re an S corporation owner? And you’re struggling […] The post Using ChatGPT to Determine S Corporation Reasonable Compensation appeared first on Evergreen Small Business ..read more

Last month we blogged about potential issues with short-term rentals and Section 183.  Section 183 is part of the tax law that says you cannot deduct expenses of activities you’re not engaging in for profit. But that blog post got me thinking about the Section 183 Schedule C problem.  Which is similar. But before we […] The post The Section 183 Schedule C Problem appeared first on Evergreen Small Business ..read more