| Owner compensation | Value |
|---|---|
| Annual profit pool | $1,000,000 |
| W-2 to Client A (reasonable comp) | $300,000 |
| K-1 distribution to Client A | $700,000 |
| Mix · W-2 / K-1 | 30% / 70% |
| Retirement plans | Value |
|---|---|
| Employee deferral (2026 limit) | $24,500 |
| Employer profit-share (25% × W-2) | $47,500 |
| Total Solo 401(k) contribution | $72,000 |
| HSA · annual (2026 family limit) | $8,750 |
| Tax elections | Detail |
|---|---|
| CA PTET election (Form 3804) | Elected for 2026 |
| Annual PTET (9.3% × $700K) | $65,100 |
| Federal tax savings (deductible) | $24,087 |
| S-Corp election (Form 2553) | Active since 2018 |
| QBID (Section 199A) · 2026 | $126,980 |
| Key deadlines | Date |
|---|---|
| PTET prepayment (50%) | Jun 15, 2026 |
| Solo 401(k) deferral elections | Dec 31, 2026 |
| S-Corp return (Form 1120-S) | Mar 16, 2027 |