Sole proprietors and single-member LLC owners report their business on Schedule C, and one number on that form, net profit, drives a large share of their tax bill. That figure flows to the personal return as income and to Schedule SE as the base for self-employment tax. Because a single number feeds both the personal return and Schedule SE, Schedule C is where much of a sole proprietor's tax planning actually happens. Here is how it works and where planning has leverage. What

A year in which a business loses money is not a wasted tax year. When deductions exceed income by enough, the result can be a net operating loss that carries forward to offset income in later years. The rules changed significantly after 2017, and two separate limits now govern how much of a loss can be used and when. Here is how net operating losses work under IRS rules for 2026. What Creates a Net Operating Loss? Per the IRS instructions for Form 172, a net operating loss ar

Realizing a loss on an investment is one of the few ways to turn a market decline into a tax benefit, and the wash sale rule exists to stop investors from claiming that benefit while keeping the same position. Internal Revenue Code Section 1091 disallows the loss when a taxpayer sells a security at a loss and acquires a substantially identical one within a narrow window. The rule is simple to state and easy to trip over in practice, particularly across multiple accounts. Here

Selling a business, a rental property, or other appreciated property for a payment stream rather than a single check changes when the tax is due. Under Section 453 of the Internal Revenue Code, a seller who receives at least one payment after the year of sale generally reports gain as payments arrive, not all at once at closing. For a large sale, that timing can affect which rate applies, how much cash is needed to pay the tax, and whether a threshold is crossed. Here is how

Few tax concepts are misunderstood as often as the tax bracket. A raise does not push all of your income into a higher rate, and being "in the 32% bracket" does not mean 32% of your income goes to federal tax. For 2026, the rates themselves did not change, but the income thresholds and the standard deduction did. Here is how the brackets work, using the figures the IRS published for the 2026 tax year. The Seven Rates and Their 2026 Thresholds The federal income tax has seven

Income without automatic withholding — business profit, investment gains, rental income, a 1099 — comes with a responsibility many people do not discover until a penalty notice arrives: paying the IRS as the money is earned, not just once a year in April. Estimated tax payments and quarterly tax planning answer three questions almost everyone asks the first time this applies to them. Here are all three, with current IRS rules for 2026. What Are Estimated Tax Payments? Estimat

A Schedule K-1 arrives later than a W-2, looks more complicated, and reports income you may never have actually received in cash. For partners in a partnership and shareholders in an S corporation, understanding what a K-1 actually reports — and how differently the two entity types are taxed — is central to planning around it rather than reacting to it every April. What a Schedule K-1 Reports A Schedule K-1 reports each partner's or shareholder's share of a pass-through entit

A large investment loss rarely disappears the moment the tax year ends. Under IRS rules, a capital loss that exceeds what can be used in a single year carries forward indefinitely — meaning a loss realized years ago may still be sitting on a return today, quietly available to offset a future gain. Many investors lose track of these carryovers simply by changing tax preparers or software. Here is how a capital loss carryover actually works for 2026. How a Capital Loss Offsets

A tax return is rarely perfect the first time, and the IRS built a specific mechanism to correct it: Form 1040-X, the amended return. A late-arriving Schedule K-1, a corrected 1099, a missed deduction discovered after filing, or a change to filing status can all require one. Understanding when an amendment is actually necessary — and the deadlines that govern claiming a refund through one — keeps a correctable error from becoming a permanent lost opportunity. What Form 1040-X

Over six parts, this series walked through 401(k) employee deferrals, employer matching and vesting, safe harbor design, the SEP-IRA, profit-sharing formulas, and stacking a 401(k) with a cash balance plan. This final installment steps back and puts all five structures side by side, because the right answer for any given business owner depends entirely on age, income, employee census, and cash flow — not on which plan sounds the most sophisticated. The Decision Starts With Tw