Boris Musheyev, CPA

Boris Musheyev, CPA Boris Musheyev, CPA is a tax planning and advisory firm for entrepreneurs and business owners.

06/19/2026

S Corporation Audit Myth Debunked

There is a huge myth going around that S corporation owners need to add a partner to avoid IRS flags. ❌

Don't do it. You don't need a co-owner to lower your audit risk because an S corporation isn't a Schedule C sole proprietorship.

Trying to outsmart the IRS on your own usually backfires.

Let a qualified Tax Advisor structure your business the right way. 🀝

πŸ†“ Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know: https://www.7taxwriteoffs.com/?utm_source=facebook&utm_medium=shortform

If your S corporation had a loss this year, you need to read this before filing.Most business owners assume losses autom...
06/19/2026

If your S corporation had a loss this year, you need to read this before filing.

Most business owners assume losses automatically flow to their personal return and reduce their tax bill. The reality? The IRS has three separate rules that can block that deduction entirely β€” and failing even one of them means your loss is suspended, not deducted.

The three hurdles are:

1. Shareholder basis β€” you can only deduct losses up to your investment in stock and direct loans to the company
2. At-risk rules β€” your economic exposure must be sufficient under Section 465
3. Material participation β€” if the IRS considers your activity "passive," losses can only offset passive income, not your wages or other earnings

The good news: there are real strategies to fix all three of these before year-end. Contributing cash to the corporation, making direct shareholder loans, and documenting your participation hours can unlock suspended losses and turn them into immediate tax savings.

And if you have suspended losses from prior years, don't write them off β€” they carry forward indefinitely and can be fully released when you eventually sell or dispose of your S corp interest.

πŸ’¬ Comment "TAX" below and we'll send you our FREE training on how to save $100K+ on taxes in 30 days.

Your S corp is generating losses β€” but are you actually able to deduct them?Most business owners don't find out their lo...
06/19/2026

Your S corp is generating losses β€” but are you actually able to deduct them?

Most business owners don't find out their losses are "suspended" until it's too late. The IRS puts 3 separate hurdles between you and that deduction. Miss any one of them, and your loss sits frozen on your return β€” providing zero immediate tax relief.

Here's what you need to clear:

β†’ Shareholder basis (stock + debt basis)
β†’ At-risk amount (your real economic exposure)
β†’ Material participation (not passive β€” you're active in this business)

Swipe through this carousel to understand each rule, how to increase your basis before December 31, and what happens to losses you can't deduct right now.

The good news? Suspended losses don't disappear. They carry forward indefinitely β€” and certain triggering events (like selling your interest) release them all at once.

2026 is the year to get positioned correctly.

πŸ’¬ Comment "TAX" and I'll send you my FREE training on how to save $100K+ on taxes in 30 days.

Tax

06/18/2026

The Tax Trap NY Business Owners Miss πŸ‘€

If your business is located within the five boroughs of New York City, your S corporation strategy looks completely different.

Why? Because NYC does not recognize the S corporation status. 😬

It hits you with a brutal 9% city corporation tax, double-taxing your hard-earned business profits.

Even at $100,000 in net profit, an S corporation will still save you money, but it won't be nearly as much as someone filing outside the city lines.

πŸ†“ Learn How To Save 100k+ On Taxes in 30 days. Click here for FREE Training: https://www.save100know.com/?utm_source=facebook&utm_medium=shortform

06/18/2026

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06/18/2026

Check Line 7 On Your Tax Return 🀯

Your accountant might be accidentally exposing your S corporation to an IRS audit.

Even if you pay yourself a legal salary, lazy tax preparers often dump your wages directly into Line 8 with regular employees.

But as the owner, your salary must be reported on Line 7 (Compensation of Officers).

Leaving Line 7 empty while pulling profits out of the business triggers an automatic red flag. 🀷

πŸ†“ Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know: https://www.7taxwriteoffs.com/?utm_source=facebook&utm_medium=shortform

Most S Corp owners accept whatever inventory method their software defaults to.That default could be costing you thousan...
06/18/2026

Most S Corp owners accept whatever inventory method their software defaults to.

That default could be costing you thousands in unnecessary taxes every year.

Here's why it matters:

Your inventory accounting method determines your Cost of Goods Sold β€” which flows directly through to your K-1 and onto your personal tax return.

Choose the wrong method during a period of rising supplier costs, and you're reporting more taxable income than you need to be.

The 4 methods every S Corp owner should understand:

1️⃣ FIFO (First-In, First-Out) β€” Oldest costs sold first. Works well for perishables and simpler records β€” but results in higher taxes when your costs are rising.

2️⃣ LIFO (Last-In, First-Out) β€” Newest costs sold first. Can significantly reduce your taxable income when supplier costs are climbing. Note: IRC Β§472 requires conformity for financial reporting.

3️⃣ Average Cost β€” A weighted average applied across all units. Ideal for high-volume operations with similar SKUs. Clean, simple, reasonable tax results.

4️⃣ Specific Identification β€” Track each individual unit's actual cost. Maximum control for high-value or unique items like vehicles, jewelry, or custom machinery.

If your current method isn't optimized, you can change it β€” but the process requires filing Form 3115 and calculating a Section 481(a) adjustment. Done right, favorable adjustments can be spread over 4 years.

S Corps under $29M in average annual gross receipts may also qualify for a simplified exception that lets you deduct inventory when purchased β€” not when sold.

πŸ’¬ Comment "TAX" below and we'll send you our FREE training on how to save $100K+ on taxes in 30 days.

06/17/2026

Selling Part Of Your LLC? Avoid This Tax Trap🫣

Selling a piece of your entity in an LLC or an S corporation is generally a taxable event.

The real danger lies in how the K-1s get taxed afterward.

Most business owners don't work with a Tax Advisor, so they have no idea how to structure a partial exit to minimize their capital gains.

Planning ahead on this can protect your hard-earned profits from the IRS.

πŸ†“ Learn How To Save 100k+ On Taxes in 30 days. Click here for FREE Training: https://www.save100know.com/?utm_source=facebook&utm_medium=shortform

Short-term rentals have become one of the most powerful tax planning tools available to S corporation owners.Most CPAs w...
06/17/2026

Short-term rentals have become one of the most powerful tax planning tools available to S corporation owners.

Most CPAs will tell you rental real estate is passive. And for long-term rentals, they're right. But short-term rentals β€” defined by the IRS as properties with an average customer stay of 7 days or less β€” are excluded from the passive activity loss rules under Treasury Regulation 1.469-1T(e)(3)(ii).

That one regulatory provision is worth understanding deeply.

Here's what it means in practice:

If you own a short-term rental, materially participate in it, and your average guest stay is 7 days or less, the losses that property generates β€” including large first-year depreciation from a cost segregation study β€” can offset your active S corporation income.

The math on a $1M property looks like this:

β†’ Cost segregation identifies ~30% as 5/7/15-year property: $300,000
β†’ 100% bonus depreciation (restored under the One Big Beautiful Bill Act): $300,000 deduction
β†’ Federal marginal rate of 37%: ~$111,000 in year-one tax savings

You don't need real estate professional status. You don't need 750+ hours in real estate. You need roughly 100 documented hours per year and the right operational structure.

The structure also matters as much as the tax mechanics:

β€” The property should not be held inside your S corporation (exit problems, deemed sale risk)
β€” Services offered to guests must stay on the property side, not the hotel-hospitality side
β€” Material participation must be documented contemporaneously β€” not reconstructed at tax time
β€” The planning conversation happens before you close, not after

Comment "TAX" below and we'll send you our FREE training on how to save $100K+ on taxes in 30 days.

06/17/2026

Your Single Member LLC Is An Audit Target 🚩

Filing a single-member LLC on a Schedule C? Your audit risk just shot through the roof. 😭

But there is a hidden tax strategy to protect yourself. Stop leaving your business exposed to the IRS.

πŸ†“ Learn How To Save 100k+ On Taxes in 30 days. Click here for FREE Training: https://www.save100know.com/?utm_source=facebook&utm_medium=shortform

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