Corporate Tax Planning

The new Tax Law didn't just tweak the code It rewired it for business owners who know how to play offense. Entrepreneurs, investors, and small business owners now have access to powerful deductions and permanent rules that create certainty. Here are the key takeaways: 1) QBI Deduction Made Permanent The 20% deduction for qualified business income (QBI) from partnerships, S corps, sole proprietorships, REIT dividends, and MLP income is here to stay. This stability fosters long-term planning for flow-through owners. 2) Expanded Eligibility Phase-in thresholds are now $75K (individual) and $150K (joint). More taxpayers qualify, widening access to meaningful tax savings. 3)Minimum $1,000 QBI Rule Even modest business income of $1,000 guarantees access to the deduction. Startups and small ventures win here. 4)100% Bonus Depreciation, Permanent Full expensing of qualified property like machinery and equipment is now locked in, improving cash flow and fueling growth investments. 5)Boosted Section 179 Expensing The limit rises to $2.5 million, giving more SMEs the ability to expense critical capital expenditures upfront. These changes create predictability, and flexibility in structuring business operations. Timing purchases and coordinating with your CPA will be critical to maximizing benefits. The OBBBA did more than tweak the rules. It gave business owners permanent tools to keep more cash, plan with confidence, and accelerate growth.

Most Family Offices don’t lose wealth by making poor investment decisions—they lose it through inefficiencies. Taxes, fees, and outdated structures quietly erode returns, often without investors realizing it. The most sophisticated Family Offices have figured this out. Instead of focusing solely on higher returns, they prioritize something far more impactful: Structural Alpha. This isn’t about choosing the best hedge fund or private equity deal. Structural Alpha is about optimizing how investments are structured to maximize after-tax returns and eliminate inefficiencies. It’s a way to achieve stronger outcomes not by taking on additional risk but by being more strategic about how capital is deployed. A prime example is Private Placement Life Insurance (PPLI), a tax-efficient structure that allows Family Offices to significantly reduce the tax burden on investments like credit funds. Without it, returns on a credit strategy might shrink from ten percent to seven percent after taxes. With PPLI, those gains can be preserved for a fraction of the cost. Another example is tax-aware investing. Tax-loss harvesting extends far beyond its original application, allowing Family Offices to structure portfolios in a way that minimizes tax liabilities without compromising performance. For Family Offices, this isn’t just an advantage—it’s an essential approach to wealth management. Family Offices exist to preserve and grow generational wealth, yet many still operate within traditional investment frameworks that leave money on the table. By integrating Structural Alpha strategies, they can improve after-tax returns without taking on unnecessary risk, reduce compounding inefficiencies, and ensure long-term capital preservation through smarter structuring. The most forward-thinking Family Offices aren’t just searching for strong investments—they’re refining how they invest. Structural Alpha isn’t a trend; it’s a shift in approach that separates those who quietly optimize their wealth from those who unknowingly give a portion of it away.

Hybrid instruments are quietly becoming a UAE Corporate Tax audit flashpoint. Shareholder Current Account, Perpetual Notes, Profit Participating Loans, Redeemable Preference Shares. They’re everywhere in MENA structures and the UAE CT Law still doesn’t tell you what’s “debt” and what’s “equity”. But don’t mistake silence for flexibility. Article 34 pulls in the OECD arm’s length principle. Interest deductibility rules still apply. So when the instrument sits in the grey zone, the discussion won’t be what did you call it? But it’ll be what it is in substance? The OECD framework provides the governing principles for debt–equity analysis under UAE Corporate Tax. It’s about enforceable rights, real risk, real obligation and whether an independent party would fund it on these terms. IRAS guidance helps not as a binding authority, but as an illustration of how a tax authority applies OECD consistent thinking in practice. Subordination, loss absorption, economic compulsion, pricing vs behaviour, the details that decide outcomes. And yes, it’s equity under IFRS or as per FS won’t save you. Accounting is evidence, not an answer. If hybrids are in your UAE group structure, treat this as defensive hygiene. Make sure the terms, pricing, and actual behaviour line up. Keep a substance-first file that holds up when someone starts asking hard questions. This one is low-visibility today, high-impact later. CA Sanjay Agarwal | CA Neha Agarwal | CA Vishal Thappa Anand Vemuganti | Praneeth Narahari GTPN – Global Transfer Pricing Network #tax #debt #equity #tp #singapore #dubai #oecd

How to pay yourself as a director in 2025/26  (And keep more of your money) With tax changes kicking in for the new tax year, your old salary setup might not be the most tax-efficient anymore. Here’s what’s changing: 🔺 Employer’s NI is increasing from 13.8% → 15% 🔻 The Employer’s NI threshold is dropping from £9,100 → £5,000 (meaning more salary is subject to NI) 🔺 Employment Allowance is doubling from £5,000 → £10,500 (for eligible businesses) This means you need to rethink how you pay yourself to maximise take-home pay and minimise tax. The Best Salary Options for Directors (2025/26) 1️⃣ £5,000 per year (£416.66/month) – Ultra-minimal salary ✅ No Income Tax or NI to pay ❌ Does not qualify for state pension (below the LEL) 📌 Best if: You want to keep payroll simple and plan to take most of your income as dividends.  But be aware, this won’t contribute towards your state pension. 2️⃣ £6,500 per year (£541.66/month) – Best for sole directors ✅ No Employee NI or Income Tax ✅ Qualifies for state pension (above LEL) ❌ Employer’s NI of £225 (15% on earnings over £5,000) 📌 Best if: Your company isn’t eligible for Employment Allowance but you still want to build up state pension contributions. 3️⃣ £12,570 per year (£1,047.50/month) – Best if your company qualifies for Employment Allowance ✅ No Income Tax (within Personal Allowance) ✅ Qualifies for state pension ❌ Employee’s NI of £531 ❌ Employer’s NI of £1,135.50 (but covered by Employment Allowance) 💰 Net take-home pay: £12,039 per year 📌 Best if: Your company can claim Employment Allowance and has other employees. What About Dividends? Once your salary is sorted, you can take the rest of your income as dividends, which are taxed at a lower rate than salary: 💰 Dividend Tax-Free Allowance: £500 📌 Dividend Tax Rates (After Allowance): • 8.75% (Basic rate) • 33.75% (Higher rate) • 39.35% (Additional rate) For example, if you take a £12,570 salary and up to £37,700 in dividends, you stay within the basic rate tax band, keeping your overall tax bill lower. Here’s what you should do: ✅ Check if your company qualifies for Employment Allowance (this makes a huge difference). ✅ Choose the right salary structure based on your company setup. ✅ Plan dividends & pension contributions efficiently to reduce tax. The goal is to get ,ore money in your pocket and less wasted on taxes. 💬 Need help working out these numbers? Drop me a message to make sure you’re paying yourself the smart way.

Before you earn a single dollar as a business the IRS already has a plan for how to tax you. It's based on one thing. Your business structure. And that choice can save or cost tens of thousands. 4 main business structures in 2026: Sole Proprietorship: → default if you work for yourself → no separate business tax return → profits go straight on your personal return (Schedule C) → you pay income tax + full 15.3% self-employment tax → simple to set up, least protection, most exposure. Partnership / Multi-Member LLC: → two or more people running a business together → business files Form 1065, but pays no tax itself → each partner gets a K-1 and pays tax on their share personally → same SE tax exposure as a sole proprietor S-Corporation: → the structure many small business owners switch to — specifically to cut taxes → still a pass-through (no double tax) → you pay yourself a reasonable salary — that salary gets hit with payroll tax → remaining profit comes out as a distribution — no SE tax on that portion $150K net profit as a sole proprietor → $22,950 in SE tax $150K as S-Corp: $80K salary + $70K distribution → ~$12,240 in SE tax. Savings: over $10,000. Same income. Different structure. C-Corporation: → flat 21% federal corporate tax rate → popular with startups raising investment or planning to reinvest profits → downside: dividends paid to shareholders are taxed again (double taxation) → right structure for some — wrong for most small businesses 2026 bonus that applies to ALL pass-through structures. The 20% QBI deduction (Section 199A) is now permanent. What this means: → sole p, pships, s-corps: deduct 20% of nbi → full dedn available: ~$203,000 (single) / ~$406,000 (married) → minimum $400 deduction if your QBI >= $1,000 → wider phase-out range: more higher-income owners now qualify → c-corps do NOT get this deduction That 20% can be worth more than the SE tax savings from an S-Corp election alone. Run the numbers before assuming one structure wins. The most common mistake? Staying a sole p long after your income outgrows it. Once your net profit consistently hits $50,000–$80,000+, the S-Corp conversation is worth having with a CPA. The structure you start with doesn't have to be the one you keep. The IRS even lets you elect S-Corp status via Form 2553 mid-way — just file by March 15. Share this with someone who might be thinking of starting a new business. Follow me on Instagram @thetaxsaaab for more such posts.

Major tax reform is on the way The House just narrowly passed (217-215) a budget resolution with major tax implications, setting the stage for extended and expanded tax provisions, awaiting senate vote. 🔹 Individual & Family Tax Cuts ✅ Extension of 2017 Tax Cuts – The bill renews lower individual income tax rates from the 2017 Tax Cuts and Jobs Act (TCJA), which are set to expire at the end of 2025. ✅ Expanded Child Tax Credit (CTC) – Increases the refundable portion of the credit, allowing more families to benefit. ✅ Marriage Penalty Relief – Extends provisions ensuring higher tax brackets for married couples filing jointly, reducing the penalty compared to single filers. ✅ Higher Standard Deduction – Continues the doubled standard deduction from the TCJA, reducing taxable income for many filers. 🔹 Business & Corporate Tax Benefits ✅ Full Expensing for Capital Investments – Restores 100% bonus depreciation for businesses investing in new equipment and technology. ✅ R&D Tax Deduction Expansion – Allows immediate deduction of domestic research and development expenses rather than amortizing over five years. ✅ Pass-Through Business Tax Relief – Extends the 20% Qualified Business Income (QBI) deduction for pass-through entities, benefiting small businesses and sole proprietors. ✅ Corporate Tax Rate Stability – While the TCJA reduced corporate taxes to 21%, this resolution avoids any proposed increases, keeping rates competitive. 🔹 Other Key Tax Provisions ✅ Estate Tax Exemption Extension – Continues the higher estate tax exemption, reducing tax burdens on inherited wealth. ✅ State and Local Tax (SALT) Deduction Cap Remains – No changes to the $10,000 SALT deduction cap, affecting taxpayers in high-tax states. ✅ International Tax Adjustments – Maintains provisions aimed at deterring profit shifting by multinational corporations. 🚨 Potential Fiscal Impact While these tax cuts aim to spur economic growth and provide relief, estimates suggest they could add $2.8 trillion to the national debt over the next decade. The bill now moves to the Senate, where debates over tax policy, fairness, and fiscal responsibility will continue. #TaxPolicy #TaxCuts #Legislation #BusinessTaxes #FiscalPolicy #TCJA #TaxReform

Running a business can be one of the most powerful wealth building and tax planning tools available But only if you do it right I see the same early mistakes over and over, even from very successful business owners If you want to set yourself up correctly from Day 1 (or fix it before it gets expensive), here’s what matters most 👇 1. Get your entity election right This is foundational. The right structure can dramatically reduce taxes and expand planning opportunities The wrong one can mean: - Unnecessary self-employment taxes - No access to PTET - Reduced or eliminated QBID - Limited retirement contribution options - No QSBS - Less tax efficient for reinvesting and growing the business This decision should be proactive and can change as your business evolves 2. Keep business and personal finances completely separate Commingling accounts is one of the most common and costly mistakes It can: - Create audit risk - Destroy LLC liability protection - Turn tax prep into a nightmare - Cost you far more in professional fees and your time Clean separation from Day 1 saves money, time, and stress. 3. Track all your expenses Most business owners leave money on the table simply because they don’t track well Good tracking: - Maximizes legitimate deductions - Makes tax planning actually work - Gives you clarity on real cash flow The easiest time to do this is before the business gets “busy.” 4. Save for taxes monthly This is non-negotiable I see too many high-income business owners fall behind, then have to scramble to make things work Treat taxes like a fixed expense, not a surprise This is a huge reason we give clients new tax updates at every call 5. Understand safe harbor taxes and pay your estimates Underpayment penalties are completely avoidable. You need to Know: - Your safe harbor number - Your quarterly payment schedule - What you will get in from withholding - How income volatility affects estimates If you don’t know these numbers, you’re guessing And guessing is expensive 6. Do real tax planning 2–3x per year (not just in April) One of the biggest advantages of business ownership is tax flexibility But it only works if you plan: - Mid-year - Again in Q3 - Then finalize in December Tax planning is proactive. Tax prep is reactive 7. Setup the right retirement accounts Set up the right retirement accounts Not all retirement plans are created equal. In most cases: - Solo 401(k) > SEP IRA - 401(k) > SEP IRA and Simple's The wrong setup can cost you tens of thousands per year in missed contributions And limit Roth strategies Owning a business gives you incredible leverage... if it’s structured correctly But I see so many overpaying in taxes because they do not invest in tax planning

The newest tax changes aren’t just headlines — the numbers tell the story. The return of the 20% QBI deduction means business owners could see a significant slice of their income shielded from taxes, boosting after-tax profitability. Meanwhile, the updated SALT deduction cap offers up to $40K for those under $500K AGI — though it tapers quickly for higher earners. For estate planners, the gift and estate tax exclusion now lands at $15M, a notable adjustment from previous levels. And for CRE investors, these updates pair with bonus depreciation incentives that could strengthen first-year returns on new acquisitions or major improvements. What does it all mean? Greater clarity in the tax code could free investors from the recent “holding pattern” and bring more deals across the finish line — but the clock is ticking on some provisions. #CRE #realestate #taxlawshifts

Most high-income professionals overpay in taxes not by a little, but by hundreds of thousands of dollars. And the worst part? Most of them don’t even realize it’s happening I recently worked with an executive who was unknowingly missing out on over $500,000 in potential tax savings. Like many high-income professionals, she assumed her CPA was handling everything. But here’s the problem: 🚫 Most CPAs think backwards, not forwards. They file taxes based on what already happened. 🚫 They don’t integrate financial planning, investments, and tax strategy. 🚫 Some of them miss opportunities that can save you money long-term. How We Fixed It & Saved Her Over $500K ✅ 1. The HSA Strategy – $20K+ in Lifetime Tax Savings She had access to an HSA (Health Savings Account) but wasn’t using it. Why does this matter? 👉🏾HSA contributions are tax-deductible. 👉🏾The money grows tax-free. 👉🏾Withdrawals for medical expenses are tax-free. By fully funding it every year, she’ll save $20,000+ in taxes over her lifetime. But here’s the kicker: we also helped her invest it properly so the account grows instead of just sitting in cash. ✅ 2. The Roth Conversion Strategy – $500K+ in Tax-Free Growth She was anticipating losing her job and had multiple old retirement accounts just sitting there. Instead of letting those accounts stagnate, we saw an opportunity: 👉🏾She was having a low-income year, which meant she could convert $100,000 into a Roth IRA at a lower tax rate. 👉🏾That $100K will now grow tax-free—meaning if it reaches $600K or $700K in retirement, she’ll never pay a cent in taxes on that money. ✅ 3. The Bonus Strategy – Tax-Loss Harvesting We also helped her offset investment gains using tax-loss harvesting, a strategy that allows you to sell underperforming investments and use the losses to reduce your tax bill. By combining these strategies, we helped her: 💰 Save $20K+ in taxes on HSA contributions 💰 Unlock $500K+ of future tax-free income through Roth conversions 💰 Offset capital gains and lower her tax bill through tax-loss harvesting And she almost missed out on all of this because she assumed her CPA was handling everything. If you’re making multiple six figures, but you aren’t actively planning your tax strategy, you’re leaving money on the table plain and simple. The best financial strategies aren’t about making more money they’re about keeping more of what you earn. If you want to see where you might be overpaying, shoot me a message. Let’s make sure you’re taking advantage of every opportunity. P.S See the look on my face…don’t make me have to give you that look because you’re paying more than your fair share in taxes. 😂

Family Offices know that preserving capital is more than protecting against a market downturn. It means structuring assets to reduce tax exposure across generations. One of the most effective tools for that is the step-up in basis. Suppose an investment in real estate began at $5 million and grew to $100 million. If that asset were sold during the owner’s lifetime, taxes would apply to the $95 million gain. But if the asset is held until death, the cost basis resets to its current market value. Heirs now start from a basis of $100 million. Any past gains are wiped away for tax purposes. Future taxes only apply to appreciation beyond that new basis. This simple reset can mean tens of millions in taxes legally avoided. Many Family Offices hold core assets for decades. That long-term hold, combined with appreciation, creates significant embedded gains. Without the step-up, those gains are exposed at liquidation. For example, if the capital gains rate is 25%, then a $95 million gain could trigger $23.75 million in taxes. A step-up eliminates that liability. The difference stays with the family, available to reinvest or redeploy into the next opportunity. Real estate aligns with this strategy. It appreciates over time, provides current income, and allows for depreciation during the hold. And because Family Offices often build long-term direct real estate portfolios, the step-up in basis reinforces their approach. According to the Family Office Real Estate Institute, 76.4% of Family Offices invest in real estate to create generational wealth. Tax strategies like the step-up are one reason why real estate continues to play such a key role in Family Office portfolios. Capital preservation isn't just about risk management. It requires structure, timing, and a clear view of tax exposure. Using the step-up in basis correctly can help secure wealth across generations. Families who plan with these tools keep more of what they’ve built. That’s smart estate strategy and good stewardship.