My wife and I split the income weekly, which varies. It appears to me to not fit the definition of Distributions, which to me means money distributed at the end of the year. At the same time, the year beginning and ending cash balance is zero, so there is no capital or cash at end of year. If I can place it under guaranteed payments, I believe our taxes are much cheaper, but I need to compute profit first to get the dollar amount to enter as guarantee payments.
Additionally, we have self employment medical premiums, not paid for by the LLC. So these need to be written off as self employed expenses.
The question is how do I efficiently with the best tax savings show withdrawing income from the LLC on a weekly basis and what is the best way to write off the medical expenses.
Car miles I write off as unreimbursable expenses by the LLC, if that is correct.
Thank You
it's distributions. distributions can be made at any time and as often as one wants even multiple times a day.
guaranteed payments are subject to the same se tax that the profits are. They're meant to compensate (thats why the se tax) for services performed. guaranteed payments or distributoions are going too have the same results for federal purposes
you choice profits subject to income and se taxes or guaranteed payments subject to the same income and se taxes.
by the way if you qualify for the QBI. guaranteed payments reduce the income on which the QBI is computed.
health insurance premiums are deductible at arriving at adjusted gross income. they too reduve QBI.