OpenYear

Tax planning report · September 2026

Harbor & Pine Design, Inc.

S corporation · One owner-employee · Two employees · Tax year 2026

Projected profit, before salary
$210,000
Owner salary
$78,000
Federal marginal rate
24%
State marginal rate
6%
Strategies reviewed
4
Estimated, once completed
$4,750 /yr
Ready for your accountant
1
Needs professional review
1

The estimate adds 3 strategies that don't overlap, each at a 30% combined marginal rate, and assumes each is completed and documented. Until it is, none of it is counted as saved — today only the accountable plan is.

Before the year closes

Deadlines

  • December 31, 2026Hold the remaining home meetings — only days in 2026 count for 2026.
  • January 15, 2027Fourth-quarter estimated tax payment.

Strategies

Where each one stands.

Ready for your accountant

Accountable plan

$2,130estimated a year

Reimburse yourself, tax-free, for business costs you already pay personally.

What it takes

  • ✓Plan adopted by the corporation
  • ✓Monthly expense reports submitted
  • ✓Reimbursed within 60 days of each expense

Evidence

  • ✓Signed plan document
  • ✓Home office measurements and floor plan
  • ✓Mileage log, January to August

The arithmetic

  • Phone and internet, business share$1,500
  • Home office, 12% of home costs$2,700
  • Vehicle, from the mileage log$2,900
  • Reimbursed, deductible to the corporation$7,100
  • Tax saved at a 30% combined rate$2,130
Reimbursements stay within the plan's timing rules, so none of it is wages.
Documentation missing

Renting your home for business meetings

$1,440estimated a year

Up to fourteen days a year, at a market rate you can document.

What it takes

  • ✓Meetings scheduled at the owner's home
  • ✓Rent paid by the corporation after each meeting
  • ○Remaining meetings held before December 31

Evidence

  • ✕Two local venue quotes setting the day rate
  • ✕Minutes for 2 of the 5 meetings held so far
  • ✓Rent payments from the corporation's account

The arithmetic

  • 8 meeting days at $600 a day$4,800
  • Deductible to the corporation, excluded for you$4,800
  • Tax saved at a 30% combined rate$1,440
Without the venue quotes the rate is unsupported, so this isn't counted as done.
Professional review needed

Reasonable compensation

No figure yet

A $78,000 salary on $210,000 of projected profit.

What it takes

  • ✓Current salary and distributions recorded
  • ✓Comparable pay for the role gathered
  • ○Salary confirmed as reasonable by your accountant

Evidence

  • ✓Payroll records for 2026
  • ✓Role description and hours
  • ✓Comparable salary data

The arithmetic

  • Payroll tax on each $10,000 of salary$1,530
No savings figure until a salary is confirmed as reasonable. That's a judgment call, and it's yours and your accountant's, not the software's.
Opportunity identified

Hiring your children

$1,180estimated a year

Smaller than you'll read online: in an S corporation, their wages carry payroll tax.

What it takes

  • ○Real work defined, suited to their age
  • ○Wage set at what you'd pay anyone else
  • ○Paid through payroll, hours recorded

Evidence

  • ✕Job description
  • ✕Timesheets
  • ✕Payroll records

The arithmetic

  • Tax you no longer pay on $8,000 of wages, at 30%$2,400
  • Social Security and Medicare on those wages−$1,224
  • Net, each year$1,180
Assumes the wages fall under your child's standard deduction, so they owe no income tax on them.

Early access

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