Digital goods are taxable in roughly half of US states. Stripe doesn't file your returns. Your retreat in Tulum is partly deductible. Your home office is mostly not. We sort it.
Coaches at $250K of course revenue commonly overpay tax by $10-15K by skipping the S-Corp election, blowing the home-office deduction, and ignoring digital-goods sales tax until a state notice arrives.
Roughly 24 states tax digital goods or SaaS in some form (TX, WA, PA, OH, CT, TN, NM, plus more). Whether your course counts as "digital good" vs "service" vs "education" varies by state. Threshold typically $100K. We classify your product and file where required.
South Dakota v. Wayfair (2018); state digital-goods statutesCourse revenue above $80-100K net wastes SE tax on Schedule C. S-Corp salary at industry-data-supported level plus distribution split saves 10-12%. Solo 401(k) on top funds $69K (2024) for retirement. We benchmark comp against ZipRecruiter / NAR / industry reports.
IRC §1361; §1366; §1402(a); Rev. Rul. 74-44Exclusive and regular use for business. Simplified method $5/sq ft up to 300 sq ft ($1,500 cap). Actual method: pro-rated mortgage interest, utilities, insurance, depreciation, repairs. S-Corp owners use accountable plan reimbursement to get the deduction on the 1120-S without losing it on personal returns.
IRC §280A; Rev. Proc. 2013-13; Treas. Reg. §1.62-2Business-purpose travel is deductible. The retreat itself: meals 50%, lodging and travel 100% if primary purpose business. Spouse cost generally non-deductible unless bona-fide employee. Outside the US ≤ 7 days = no pro-rate; over 7 days pro-rate by business vs personal days. We template the trip log.
IRC §162(a)(2); §274; §274(c); Rev. Rul. 63-145If you collect through Stripe Connect (Kajabi, Thinkific, Teachable, Mighty Networks), the 1099-K comes from the platform, but gross includes refunded transactions and platform fees. We reconcile to net taxable revenue and document the bridge.
IRC §6050W; IRS Notice 2024-85Bringing on a co-coach with revenue share or equity? Partner-equity grants subject to vesting need §83(b) election within 30 days or you owe tax on future appreciation as ordinary income. We coordinate with counsel and file the 83(b) on time.
IRC §83; §83(b); Rev. Proc. 2012-29Filed late S-Corp election with reasonable comp at $95K, home-office accountable plan reimbursement at $4,800/yr, retreat trip pro-rated correctly at 70% deductible.
$11,300 federal + SE tax saved · year onePlus Solo 401(k) contribution of $69K (employee + employer) sheltering another $17K of tax.
Comp study attached, accountable-plan policy template, Solo 401(k) coordination.
State-by-state classification of your course, threshold tracking, registration only where triggered.
Gross-to-net reconciliation with refunds, fees, chargebacks fully documented.
Trip logs, exclusive-use documentation, accountable plan reimbursements through the entity.
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