Maximize Your Business's Tax Benefits.
Complex passthrough tax rules, simplified. Use this interactive guide to find the optimal tax strategy for your business and uncover hidden savings.
Which Business Structure is Right for Me?
Compare the key tax advantages and disadvantages of each entity type to choose the best structure for your business goals. Click each tab to see the details.
Interactive Schedule K-1 Decoder
Ever wondered what the numbers on your annual K-1 form mean? Click on any box on the K-1 form below to easily understand what it represents and how it affects your tax return (Form 1040).
Schedule K-1 (Form 1065)
Partner's Share of Income, Deductions, Credits, etc.
Part III: Partner's Share of Current Year Items
... Other items omitted ...
Click an item to see its description.
The K-1 is an information return that passes the business's tax items to you. You use this information to file your personal income tax return.
Loss Deduction Diagnosis: Pass the 3 Gates
Can you deduct the full business loss reported on your K-1? You must pass three sequential IRS hurdles: Basis, At-Risk, and Passive Activity rules. Check your loss deductibility below.
Gate 1: Basis Limitation
You cannot deduct losses that exceed your investment basis. Is your basis greater than or equal to the loss amount?
Gate 2: At-Risk Limitation
Losses are only deductible up to the amount you are personally at risk of losing. Is your investment personally at risk, without protection from nonrecourse loans?
Gate 3: Passive Activity Limitation
Did you "materially participate" in the business (e.g., more than 500 hours/year)? Passive losses can generally only offset passive income.
QBI Deduction Optimizer (Sec 199A)
The 20% Qualified Business Income (QBI) deduction is the biggest tax break for passthrough owners! Input your income and business type to calculate your estimated deduction and see how the W-2 wage and UBIA limitations apply in real-time.
Enter Your Information
Your income is high enough for the W-2 wage and UBIA limitations to apply. Please enter the info below.
Calculation Results
Your Final QBI Deduction:
$0