[Taffini]

non-compensation categories.

what is this and where is it

[Nervous Tick]

>> what is this

Here is a contrived example:

Suppose you own and operate a small business organized as an S-corp. To the extent that you can afford to take less compensation income (i.e. salary) and plow that money back into the business so you increase the value of the business when you eventually sell it, you have converted social-security-taxed compensation income to a capital gain taxed at a lower rate (and no social security “payroll” tax, as of now anyway).

That’s one way, and there are others.