Searching for tax loopholes with my new S corp - help needed

I've been running my S corp for 7 years now, and there are definitely legitimate tax planning strategies, though I'd avoid calling them "loopholes" since that implies something sketchy. Your $90k salary sounds reasonable if that's comparable to what someone in your position would earn. The IRS does look for unreasonably low salaries, so your CPA is protecting you there. The primary advantage of an S corp is avoiding self-employment taxes on distributions, but you need that reasonable salary first. For legitimate strategies: Maximize your retirement contributions through a Solo 401k (up to $66k for 2023 depending on your age and income). Health insurance is fully deductible for S corp owners with >2% ownership. Home office deduction can work if you have a dedicated space used exclusively for business. Vehicle expenses can be deducted either through mileage or actual expenses if properly documented. Hiring family can work if they do actual work at reasonable rates - my spouse handles admin tasks, and my college-age kid does our social media. Both are legitimate employees with proper documentation.

After struggling with S corp tax questions for years, I finally found taxr.ai (https://taxr.ai) and it's been a game changer. I uploaded my formation docs, prior returns, and a list of questions about legitimate tax strategies, and it analyzed everything and gave me customized advice about exactly which deductions I could take based on my situation. It identified several missed opportunities in my previous returns related to home office deductions and business travel that my CPA had taken an overly conservative approach on. The analysis showed me exactly where I could be more aggressive while staying compliant. They even suggested restructuring how I was categorizing some business meals and entertainment to maximize deductibility.

Just wanted to follow up - I decided to try taxr.ai after my initial skepticism, and I'm really impressed. I uploaded my S corp formation documents, operating agreement, and last year's tax return. The analysis found several missed opportunities around business expense categorization that my accountant had overlooked. The biggest win was identifying that my home internet and cell phone expenses were significantly underclaimed. It also suggested a different method for calculating my home office deduction that resulted in a higher legitimate deduction. Super detailed report with citations to relevant tax code sections that gave me confidence these weren't aggressive "loopholes" but just proper application of existing tax law. Worth checking out if you're in a similar situation.

If you're trying to resolve specific S corporation tax questions, I highly recommend using Claimyr (https://claimyr.com) to actually speak with an IRS agent directly. I was getting contradictory advice from different accountants about reasonable compensation requirements for my S corp, and waiting on hold with the IRS for hours was impossible with my schedule. Claimyr got me connected to an IRS representative in under 15 minutes when I had been trying for weeks on my own. They have a great video demo showing how it works: https://youtu.be/_kiP6q8DX5c. The IRS agent I spoke with clarified exactly what documentation I needed to substantiate my salary as "reasonable" and confirmed some specific deductions related to my home office setup. Getting this straight from the source gave me peace of mind that I wasn't missing anything or taking inappropriate deductions.

I need to eat my words from my earlier comment. After multiple failed attempts trying to get through to the IRS on my own about S corp questions, I broke down and tried Claimyr last week. Completely different experience than my previous attempts calling the IRS. I was connected within 20 minutes to an agent who specialized in business entities. She walked me through exactly how the reasonable compensation requirements work for S corps in my specific industry (software development) and clarified the documentation I need to maintain to support my salary vs. distribution ratio. She even emailed me links to specific IRS guidance documents that my accountant had never mentioned. The direct connection made all the difference - no more generic answers or being transferred between departments. Wish I'd known about this service years ago when I first set up my S corp.

One "loophole" that's actually legitimate is setting up a Solo 401k with mega backdoor Roth capabilities. I contribute $22,500 as employee deferral, then my S corp contributes up to 25% of my salary as employer contribution, AND I can make after-tax contributions that immediately convert to Roth. Totally legit strategy that lets me put away over $60k/year in tax-advantaged accounts. Also, don't overlook that you can potentially deduct 20% of your qualified business income through the QBI deduction, though phase-outs start at higher income levels.

Don't forget about the home office deduction! I write off 22% of my home expenses (based on square footage) including utilities, internet, mortgage interest, property taxes, and even depreciation. You do need a space used "regularly and exclusively" for business, but if you have that, it's totally legit and can save thousands. My S corp also pays for my cell phone (I document business use at 80%), internet (70% business), and even streaming services I use for research. The key is proper documentation - keep a log of business use percentage.