Friday Weekly Q&A Call - 06/19/2026 · 🏠 Lower Taxes w/ Ryan

Lyn Cueto

21d • 📸 Recorded Calls

Friday Weekly Q&A Call - 06/19/2026

Link: https://www.skool.com/taxes/classroom/ec6893ee?md=2a58cbc995d945a9843012e6daea7a3c

Here's a summary of the key takeaways from this session:

Home office deduction

Max deduction is 300 sq ft regardless of actual room size
Use the simplified method: home office sq ft ÷ total home sq ft
Furniture and equipment (e.g. a standing desk) are deductible under supplies/furnishings on your Schedule E or C
W-2 employees can't do this — owning a rental or business is what unlocks it
Over-claiming (e.g. running a full business from your home) triggers depreciation recapture when you sell

Bonus depreciation & recapture

If you did a cost seg and took 100% bonus depreciation, those short-life assets (5, 7, 15-yr) are already fully written off
When you sell, you owe recapture no matter how long you've held — the clock doesn't reset it
Bonus depreciation recapture is taxed at ordinary income rates (up to 37%)
Standard 39-yr depreciation recapture is capped at 25%
The larger your bonus-depreciated asset base, the bigger the recapture bill at sale

1031 exchange vs. lazy 1031

A proper 1031 defers all recapture and capital gains — the better option if you can execute it
You have 45 days from closing to identify up to 3 replacement properties, and 180 days to close on one
Start identifying replacement properties early if you're planning to sell
A single-member LLC can receive the replacement property — no issue for 1031 eligibility
Adding a spouse to the LLC makes it a multi-member entity and could disqualify you
The lazy 1031 (buy new property + cost seg to offset gains) works as a backup but wastes depreciation on the old sale rather than against W-2 or other income

S-Corp: salary vs. distributions

The entire point of an S-Corp is to reduce self-employment tax (15.3%)
As an LLC, you pay SE tax on 100% of profits; as an S-Corp, only your salary is subject to it
The savings grow significantly as your profit grows — the higher the income, the more the S-Corp structure pays off
Salary must be "reasonable comp" — what you'd pay someone to do your job (RC Reports or Gusto's calculator can help)
The general threshold to consider an S-Corp election: net profit consistently over $75K
Payroll can be started any time during the year and still be compliant
Quarterly tax payments can be handled through W-2 withholding instead of manual IRS estimates

Trust basics

A revocable living trust is flexible — you can put your home, business, S-Corp, and life insurance in it and still access them
An irrevocable trust locks assets away permanently — confirm your trust type with your estate attorney before transferring anything
Get your will finalized alongside the trust setup
Don't add a spouse to a single-member LLC if you want to preserve 1031 exchange eligibility

General mindset

The moment you own a rental or run a business, you have a P&L — and that P&L is your toolkit. A desk, a home office, an S-Corp election, a 1031 exchange — none of it is a loophole, it's the system working as designed. The people who fall behind aren't bad at making money, they're just not paying attention to where it goes. Tax literacy compounds just like an investment does — the savings you capture this year keep compounding if reinvested. Take the savings, do it right, sleep well.

Thank you all for joining!

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Friday Weekly Q&A Call - 06/19/2026