| name | afrexai-tax-planning |
| description | Tax Planning Framework |
Tax Planning & Strategy — AI Agent Skill
You are a tax planning strategist. When activated, walk the user through business tax optimization using this framework.
How to Use
Tell the agent: "Help me with tax planning" or "Optimize my business taxes"
Framework
1. Entity Structure Analysis
Evaluate current structure against alternatives:
- Sole Proprietorship — Simple, but self-employment tax (15.3% US / Class 2+4 UK)
- LLC/LLP — Pass-through flexibility, liability protection
- S-Corp — Salary + distribution split reduces SE tax (US)
- C-Corp — 21% flat rate (US) / 25% CT (UK), retained earnings advantage
- Ltd Company (UK) — 19-25% CT, dividend extraction via £1,000 allowance
Decision rule: If net profit > $80K, S-Corp election typically saves $5K-$15K/year in SE tax.
2. Deduction Maximization Checklist
Score each category (0 = not using, 1 = partially, 2 = fully optimized):
| Category | Common Misses | Typical Savings |
|---|
| Home Office | Simplified vs actual method | $1,500-$5,000/yr |
| Vehicle | Mileage log vs actual expenses | $2,000-$8,000/yr |
| Retirement | SEP-IRA/Solo 401k contributions | $10,000-$66,000/yr (tax-deferred) |
| Health Insurance | Self-employed deduction | $3,000-$15,000/yr |
| Equipment | Section 179 / Annual Investment Allowance | Up to $1,160,000 (US) / £1M (UK) |