David A Rivas CPA, LLC

Tax Tip

Entity Structure – If you currently operate an LLC as a sole-proprietor or partnership, consider making an "S election" to be taxed as an S Corporation. In many cases, doing so will significantly lower the self-employment tax burden. However, there are additional costs associated with an S Corp including payroll costs, state franchise taxes, and potentially additional tax return filing requirements, so it’s important to weigh the cost and benefits.

Tax Tips

Tax Credits – There are new tax credits available in 2023, including several related to energy efficiency. Items such as heat pumps, replacement windows and electric vehicles are popular and offer significant tax credits if purchased before December 31st. However, many credits are subject to income level thresholds and may not be available to high earning taxpayers.