FAQ

  • What’s the difference between tax prep and tax strategy?

    Tax preparation is the process of filing your tax return based on what already happened — it’s reactive.


    Tax strategy, on the other hand, is proactive. It involves year-round planning to legally reduce your tax liability by aligning your business decisions with IRS rules. At Ironhawk, we specialize in both — but strategy is where the savings are.

  • What’s the difference between a business expense and a personal expense?

    A business expense must be both ordinary and necessary for your trade or profession, according to the IRS. That means it’s common in your industry and directly related to generating income.

    At Ironhawk, we help clients maximize every legitimate deduction while staying compliant.

    Example: A laptop used primarily for client work is deductible. If you attend a business conference in another city and schedule strategic meetings while there, your travel and related expenses may qualify too — when structured properly.

  • Should I form an LLC or an S Corporation?

    An LLC is a legal structure. An S Corp is a tax election. You can be both.


    S Corps can save you thousands in self-employment taxes, but only if your business earns enough to justify a reasonable salary and corporate compliance. Strategy matters — it’s not one-size-fits-all.

  • Can I deduct my car, home office, or meals?

    Yes — but only when they meet IRS guidelines.

    Car: You can deduct mileage or actual expenses, but the vehicle must be used for business.

    Home office: Must be a dedicated space used exclusively for business.

    Meals: 50% deductible if business-related and with a client or team. No personal meals allowed.
    We help you track and document everything correctly.

  • How can real estate investors legally reduce their taxes?

    Through depreciation, cost segregation, bonus depreciation, and material participation (for STRs). Real estate offers some of the most powerful tax advantages in the code.


    We help investors use the right strategies for flips, rentals, and short-term stays—maximizing write-offs while staying compliant.

  • How can I pay my kids through my business and write it off legally?

    Paying your children is a powerful, legal tax strategy if done correctly. If your kids do legitimate work for your business (like cleaning your office, helping with social media, or filing), you can pay them up to $14,900 per year (in 2025) without them owing federal income tax — thanks to the standard deduction.