Three coordinated deductions that solo operators and S-corp owners routinely under-claim: the §199A pass-through deduction, S-corp salary structuring to minimize FICA, and home office + Augusta Rule business use. Run them in order — the QBI deduction is income-dependent, the comp split affects QBI, and the home office deduction closes the loop on Schedule C/K-1 income. All updated for 2026 OBBBA permanent thresholds.
Under 2026 OBBBA rules, §199A is now permanent with thresholds indexed to inflation: $201,775 (single) and $403,500 (MFJ) are the 2026 figures. Below threshold, you get 20% of QBI — no W-2 test needed. In the $75K/$150K phase-out band, the W-2 wage limitation phases in. Above the top of the band, SSTBs lose the deduction entirely; non-SSTBs must pass the W-2/UBIA test. The OBBBA also added a $400 floor deduction for QBI of at least $1,000. Run this first so you know what income threshold matters before optimizing S-corp salary in Step 2.
Open QBI §199A Optimizer →The IRS requires that S-corp owner-employees pay themselves "reasonable compensation" — but reasonable has a wide band. This tool benchmarks your proposed salary against industry/role pairs (17 industry × 3 role combinations), calculates FICA savings vs. sole-prop SE tax, and scores audit risk (low/medium/high) using the Watson v. US (2012) ratio framework. The SS wage base for 2026 is $184,500. S-corp salary also feeds back into your QBI base from Step 1 — the tool shows the QBI trade-off for each salary lever. Additional Medicare surtax (0.9% above $200K single/$250K MFJ) is calculated separately from the employer/employee halves.
Open S-Corp Reasonable Comp Analyzer →Two deductions, usually modeled separately but better considered together. Home office: regular method (actual expenses × business-use percentage, limited to business gross income) vs. simplified ($5/sq ft, max 300 sq ft = $1,500 cap). Augusta Rule (§280A(g)): rent your home to your S-corp for up to 14 days/year — owner receives tax-free rental income; corporation takes a business deduction. The tool compares methods, identifies the winner, and produces a combined deduction summary for your tax preparer. Both methods include documentation checklists because the deduction is only defensible if you have the receipts and logs to back it up.
Open Home Office + Augusta Rule Optimizer →