🏛️ Tax Planning

What the Taxes tab shows

The Taxes tab gives you a real-time view of your estimated tax liability based on your classified transactions. Key metrics include:

• Estimated AGI: Adjusted Gross Income across all entities
• Effective tax rate: The actual percentage you're paying
• Federal tax estimate: Based on current year brackets
• Available deductions: What you've claimed and what you might be missing

Why quarterly estimates matter

If you're self-employed or receive income without withholding, the IRS expects you to pay estimated taxes four times a year. Miss a payment or underpay, and you'll owe penalties.

Quarterly deadlines

• Q1: April 15
• Q2: June 15
• Q3: September 15
• Q4: January 15 (following year)

HaraPro calculates your quarterly payment amount based on your actual YTD revenue and deductions across all entities. Available on Starter plans and above.

Never miss a deadline

The Alerts tab shows upcoming tax deadlines with countdown timers. HaraPro tracks:

• Quarterly estimated payment deadlines
• Annual filing deadlines (1040, 1120-S, etc.)
• State-specific deadlines
• Entity compliance dates (annual reports, franchise tax)
• FBAR deadline (if applicable)

Alerts appear 30 days, 14 days, and 3 days before each deadline.

How HaraPro tracks depreciation

Add your business assets (vehicles, equipment, real estate) in the Balance Sheet section, and HaraPro automatically calculates depreciation using the correct IRS method:

• MACRS: 3, 5, 7, 10, 15, 27.5, or 39-year schedules
• Section 179: Immediate expensing (with SUV weight limits)
• §280F: Luxury automobile depreciation caps for vehicles under 6,000 lbs
• Bonus depreciation: Additional first-year deduction

What is reasonable compensation?

If you operate as an S-Corp, the IRS requires you to pay yourself a "reasonable salary" for the work you perform. The remaining profits can be taken as distributions, which aren't subject to self-employment tax.

How HaraPro helps

The Tax Simulator lets you model different salary/distribution splits to see the tax impact. Enter your S-Corp's net income and a salary amount — HaraPro calculates the payroll tax savings and shows you the optimal range.

Available on Starter plans and above

The Simulations tab lets you model tax scenarios before committing:

• What if I buy a new vehicle? (§179 vs §280F impact)
• What if I switch from LLC to S-Corp?
• What if I max out my SEP IRA vs a Defined Benefit Plan?
• What if I increase my salary by $20K?

Each simulation shows the before/after tax impact so you can make informed decisions.

Tax tags explained

• Deductible: Fully deductible ordinary business expense
• 50% Meal Limit: Business meals — only 50% is deductible (IRC §274(n))
• §179 Eligible: Can be fully expensed in year 1 (subject to limits)
• §280F Limited: Subject to luxury automobile depreciation caps
• Capital Expense: Not immediately deductible — added to asset basis
• Non-Deductible: Personal expenses, fines, penalties — not deductible
• Depreciation: Deducted over the asset's useful life
• N/A: Revenue and income items

Retirement accounts HaraPro tracks

• Traditional IRA: Tax-deductible contributions (income limits apply)
• Roth IRA: Tax-free growth (income limits apply — see Backdoor Roth)
• SEP IRA: Up to 25% of net self-employment income, max $69K (2026)
• Solo 401(k): Employee + employer contributions, max $69K
• Defined Benefit Plan: $150K-$250K+/year (age-dependent)

HaraPro calculates your maximum contribution for each type and shows the tax savings impact. Available on Family Office plan.

What triggers FBAR?

If you hold more than $10,000 in aggregate across all foreign bank accounts at any point during the year, you must file an FBAR (FinCEN Form 114).

• Deadline: April 15 (auto-extended to October 15)
• Penalty: Up to $10,000 per unreported account per year
• Willful failure: Up to $100,000 or 50% of account balance

HaraPro flags FBAR obligations based on your entity and account configuration.