Independent divisions of S-corp

[M-M]

I have an S-corp, of which I am the only employee. My CPA suggested that I should make my 2 new websites (which have nothing to do with the SC) divisions of the SC to avoid self-employment tax on the websites' revenue. Is that a good plan? Is there anything I need to look out for? Do I need to fire my CPA?

On the personal side, is it smart to make next month's mortgage payment late this year, and to go ahead and pay property taxes? I've heard both; would do the experts think?

Thank you.

 

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[Diane Kennedy]

I have an S-corp, of which I am the only employee. My CPA suggested that I should make my 2 new websites (which have nothing to do with the SC) divisions of the SC to avoid self-employment tax on the websites' revenue. Is that a good plan? Is there anything I need to look out for? Do I need to fire my CPA?

This is a great way to avoid Self-Employment. As long as there isn't any additional liability from adding these different "divisions" under one S Corp, it should be fine.

On the personal side, is it smart to make next month's mortgage payment late this year, and to go ahead and pay property taxes? I've heard both; would do the experts think?

Thank you.

Two different answers, because the real answer is "It Depends!"

Two things: (1) Do you itemize? (If not, doesn't matter either way) and (2) Are you subject to AMT this year? If you are - postpone the prop tax and state income tax estimated payment because it won't help. If you're not, prepay.

 

[M-M]

Thank you, Diane. There shouldn't be any liabilities, and I am not subject to AMT.

 

[Diane Kennedy]

Pre-pay.

 

[M-M]

Thank you.

 

[AroundTheWorld]

Is there a quick and dirty way to figure out if you will be subject to AMT?