Elena
Restaurant Owner (2 Locations) · Atlanta, GA · Age 39
Married Filing JointlyIncome: $285KSmall Business
“My restaurants qualify for a 20% deduction lawyers can't get.”
The Situation
2 restaurant locations, $285K net profit (S-corp)
Husband works full-time at the restaurants
No retirement plan set up for employees
Strategies Identified
1. QBI Deduction (20% Pass-Through)
IRC §199A
$18,240
Restaurants are not a 'specified service trade.' Full 20% QBI deduction on $285K.
2. Solo 401(k) + Cash Balance Plan
IRC §401(k), §401(a)(2)
$15,600
Max Solo 401(k) ($69K) + cash balance plan for both Elena and husband.
3. S-Corp Wage Optimization
IRC §1402
$8,625
Set reasonable comp at $120K each. Save 15.3% SE tax on remaining profit.
4. Augusta Rule (14-Day Home Rental)
IRC §280A(g)
$4,800
Host team training sessions at home. 14 days x $350/day = $4,900 tax-free.
Tax Impact
Before
$82,000
→
After
$34,735
Annual Savings
$47,265
58% reduction
Action Steps
1
Confirm QBI eligibility with CPA (restaurants qualify, unlike law firms)
2
Set up Solo 401(k) for both Elena and husband before Dec 31
3
Review S-corp reasonable comp with payroll provider
4
Schedule and document 14 home-based business meetings this year
What could you save?
Get a personalized estimate in 3 minutes. See which strategies apply to your situation.
See my savings estimate →