1. Failing to properly plan taxes can result in paying thousands more than necessary each year. Proper tax planning allows business owners to legally reduce their tax burden.
2. Choosing the wrong business entity, retirement plan, or failing to claim available deductions like a home office or vehicle expenses can cost business owners thousands each year.
3. Sole proprietorships, S-corporations, partnerships, and C-corporations each have their own tax implications that business owners should understand to minimize their taxes. Choosing the right structure is important.
This document outlines 10 expensive tax mistakes that business owners commonly make, including failing to do tax planning, having "audit paranoia", choosing the wrong business entity, selecting the wrong retirement plan, missing opportunities for family employment deductions, failing to take advantage of medical benefits, neglecting a home office deduction, missing car and truck expense deductions, failing to deduct meals and entertainment expenses, and not using a tax coaching service.
This document provides information about income and payroll tax rates for 2017 including:
- Federal income tax rates for single filers, heads of household, trusts and estates, married filing jointly, and married filing separately.
- Social security and Medicare payroll tax rates for employees and self-employed individuals.
- Details on the alternative minimum tax, kiddie tax rules, and taxation of social security benefits.
- Standard deduction amounts and details on allowable and non-allowable itemized deductions such as mortgage interest, state and local taxes, medical expenses, and more.
The document discusses the top 10 most expensive tax mistakes that business owners can make, including failing to do tax planning, misunderstanding audit odds, paying too much self-employment tax, choosing the wrong retirement plan, missing opportunities for family employment and medical benefits, not claiming a home office deduction, missing car and truck expense deductions, not deducting meals and entertainment expenses, and not using tax coaching services. It provides details on how to avoid these costly mistakes.
Q4 2015 is here already! Take a look at our Key Numbers for Income, Taxation and more. Weiss & Hale works with clients to help them to Plan Well, Invest Well & Live Well! Visit us at : www.weissandhale.com!
1. Gross income includes all earned income and unearned income. Adjustments are made to reduce taxable income and include things like retirement contributions and student loan interest. Adjusted gross income is gross income minus adjustments.
2. Deductions, either standard or itemized, are then subtracted from adjusted gross income to determine taxable income. Exemptions for dependents are also subtracted to determine tax liability.
3. Tax liability is reduced by credits dollar for dollar. A refund is issued if withholdings and credits exceed the tax liability. Otherwise, additional tax may be due.
This document provides tax rate tables and limits for the 2014 and 2015 tax years. It includes income tax rates for single, head of household, trusts/estates, married filing jointly, and married filing separately filers. It also includes payroll tax rates for Social Security and Medicare. Additionally, it summarizes alternative minimum tax rates and exemptions, kiddie tax rules, corporate tax rates, taxation of Social Security benefits, and standard deduction amounts.
This document provides an overview of tax planning strategies for business owners. It discusses:
1) Corporate and personal tax rates in BC and opportunities for tax savings through integration. Tax can be deferred by retaining earnings in a corporation rather than paying out as salary.
2) Using a corporate freeze structure to split income with a spouse and children through a family trust for income splitting and to minimize taxes upon sale or death. Growth accrues to the trust.
3) Purifying a corporation of passive assets to qualify shares for the $800,000 lifetime capital gains exemption on the sale of qualified small business corporation shares. Purifying sooner allows more time to meet asset tests.
This document outlines 10 expensive tax mistakes that business owners commonly make, including failing to do tax planning, having "audit paranoia", choosing the wrong business entity, selecting the wrong retirement plan, missing opportunities for family employment deductions, failing to take advantage of medical benefits, neglecting a home office deduction, missing car and truck expense deductions, failing to deduct meals and entertainment expenses, and not using a tax coaching service.
This document provides information about income and payroll tax rates for 2017 including:
- Federal income tax rates for single filers, heads of household, trusts and estates, married filing jointly, and married filing separately.
- Social security and Medicare payroll tax rates for employees and self-employed individuals.
- Details on the alternative minimum tax, kiddie tax rules, and taxation of social security benefits.
- Standard deduction amounts and details on allowable and non-allowable itemized deductions such as mortgage interest, state and local taxes, medical expenses, and more.
The document discusses the top 10 most expensive tax mistakes that business owners can make, including failing to do tax planning, misunderstanding audit odds, paying too much self-employment tax, choosing the wrong retirement plan, missing opportunities for family employment and medical benefits, not claiming a home office deduction, missing car and truck expense deductions, not deducting meals and entertainment expenses, and not using tax coaching services. It provides details on how to avoid these costly mistakes.
Q4 2015 is here already! Take a look at our Key Numbers for Income, Taxation and more. Weiss & Hale works with clients to help them to Plan Well, Invest Well & Live Well! Visit us at : www.weissandhale.com!
1. Gross income includes all earned income and unearned income. Adjustments are made to reduce taxable income and include things like retirement contributions and student loan interest. Adjusted gross income is gross income minus adjustments.
2. Deductions, either standard or itemized, are then subtracted from adjusted gross income to determine taxable income. Exemptions for dependents are also subtracted to determine tax liability.
3. Tax liability is reduced by credits dollar for dollar. A refund is issued if withholdings and credits exceed the tax liability. Otherwise, additional tax may be due.
This document provides tax rate tables and limits for the 2014 and 2015 tax years. It includes income tax rates for single, head of household, trusts/estates, married filing jointly, and married filing separately filers. It also includes payroll tax rates for Social Security and Medicare. Additionally, it summarizes alternative minimum tax rates and exemptions, kiddie tax rules, corporate tax rates, taxation of Social Security benefits, and standard deduction amounts.
This document provides an overview of tax planning strategies for business owners. It discusses:
1) Corporate and personal tax rates in BC and opportunities for tax savings through integration. Tax can be deferred by retaining earnings in a corporation rather than paying out as salary.
2) Using a corporate freeze structure to split income with a spouse and children through a family trust for income splitting and to minimize taxes upon sale or death. Growth accrues to the trust.
3) Purifying a corporation of passive assets to qualify shares for the $800,000 lifetime capital gains exemption on the sale of qualified small business corporation shares. Purifying sooner allows more time to meet asset tests.
New York Life - pocket tax tables guide 2015-16Cristi Tenhagen
The document provides information about income tax rates, payroll tax rates, and other tax rules for 2015 and 2016. Specifically, it includes:
- Income tax rates for single filers, heads of household, trusts and estates, married filing jointly, and married filing separately based on taxable income thresholds.
- Payroll tax rates for Social Security and Medicare.
- Details about alternative minimum tax, kiddie tax, corporate tax rates, taxation of Social Security benefits, personal exemptions, standard deductions, and itemized deductions.
This document lists the 10 most expensive tax mistakes that business owners can make. These include failing to do tax planning, having "audit paranoia", operating under the wrong business entity, choosing the wrong retirement plan, missing opportunities for family employment, missing medical benefits, not deducting a home office, missing car/truck expenses, missing meals and entertainment deductions, and not using a tax coaching service. It provides details on each mistake and how to avoid or minimize them.
This document provides an overview of scheduled tax changes for 2012 and 2013, including increases to income, capital gains, and Medicare tax rates. It discusses opportunities for tax planning for individuals and businesses before year-end, and notes some decisions that may be best to wait until after the election due to ongoing presidential tax proposals.
We want to help you manage your tax activities and simplify complex tax laws. We hope you’ll find that our 2014 Quick Tax Facts guide helps you do just that. This handy guide compiles frequently changing tax information applicable to most businesses and households.
Practical wealth management strategies for Health Care professionals looking to reduce taxes and maximize family estate using tax deferrals, income splitting, incorporation, insurance and Individual Pension Plans, among other strategies.
The document analyzes the likely policies of President-elect Obama on various issues based on his proposals during the campaign. It discusses that Obama will face challenges in dealing with the large federal budget deficit and decisions around expiring tax cuts. Key tax proposals from Obama include raising rates on high-income individuals, capital gains, and dividends while making tax cuts for middle and lower incomes permanent. He is also likely to increase business taxes through eliminating certain deductions and raising payroll taxes.
The document provides an overview of the 2010 healthcare reform legislation and subsequent tax law changes. It notes that the legislation was passed in two parts in 2010, containing provisions such as a small business tax credit for offering health coverage, elimination of lifetime caps on insurance, and penalties for remaining uninsured beginning in 2014. The summary also outlines numerous tax law provisions from 2010-2018 related to health savings accounts, deductions, credits, fees and more.
USE FAMILY TRUSTS to income split, grow wealth & save taxes, shift income to children & use this tax-free income to pay for expenses of your dependent children or grandchildren; take advantage of CRA low prescribed loan rate of 1% before it goes up...
Top 5 strategies to keep your profits in your pocketTim Miron
The document provides strategies for reducing taxes through effective tax planning, income splitting, and hybrid expenses. The top 5 strategies discussed are: 1) Effective tax planning through incorporation, holding companies, retirement planning, life insurance, and SRED credits. 2) Income splitting using salaries, dividends, property payments, family trusts, and multiple corporations. 3) Hybrid expenses such as home office, automobile, cell phones, and medical expenses. Specific tax savings examples are provided for many of these strategies.
The document provides an overview of key information about 2017 federal income tax rates and rules, retirement plan contribution limits, Social Security benefits, and individual retirement accounts. It includes:
- The 2017 federal income tax rates for single filers, married filing jointly, heads of households, and married filing separately based on taxable income brackets.
- The 2017 standard deduction amounts and personal exemption amounts, which are subject to phase out based on adjusted gross income.
- Annual limits on retirement plan contributions to defined benefit plans, defined contribution plans, and various individual retirement accounts.
- Rules for withdrawals from 403(b), 401(k), and other retirement plans before age 59.5, which may incur a 10
The document discusses estate planning and transfer taxes. It explains that individuals currently have a $5 million lifetime exemption from estate and gift taxes that can be used during life or at death. It provides an example of how gift taxes work if assets are transferred as a gift during life. It also discusses estate taxes applied to assets transferred at death, as well as the step-up in basis and exceptions for transfers to a spouse.
Join Commute Seattle for an informative workshop to learn how employers and commuters can take advantage of commuter benefit programs to save on federal and
state taxes, increase employee spending power, and make commuting to work more affordable, convenient and sustainable.
Learn about:
• Federal tax qualified transportation fringe benefits:
• Recent increases in transit, vanpool and parking fringe benefit spending limits
• Pre-tax accounts and ORCA business options
• Tax-free bicycle commuter benefits
• WA state business & occupation tax credits for commute trip reduction activities
• Parking cash-out programs, Zipcar for Business, Rideshare Online incentives and other taxable transportation benefits
Creating Powerful Retirement Accounts for Business Owners and Real Estate Inv...David Campbell
The document provides information about creating powerful retirement accounts for business owners and real estate investors. It outlines strategies to pay oneself instead of the IRS through tax-free income and retiring younger. Attendees will learn how to access retirement accounts at any age tax-free and penalty-free, and special tax and investing tips for the self-employed. The event features presentations from financial professionals including a real estate investor, the president of a self-directed IRA company, and a CPA tax strategist.
This document provides information about income tax savings strategies for individuals, including investments that generate tax-exempt income, offsetting capital gains losses, and reviewing exempt pension and annuity income. It also discusses itemized deductions for medical expenses, state and local taxes, charitable contributions, and miscellaneous expenses. Tips are provided for estimated tax payments, record keeping, Tennessee state income tax, gifting strategies, and the advantages and disadvantages of Roth IRA conversions.
This document summarizes key U.S. tax rates and limits for 2017 including:
- Federal income tax rates for single, married joint, head of household, and married separate filers at various income levels.
- Standard deduction and personal exemption amounts that phase out at certain income levels.
- Contribution and income limits for retirement accounts like 401ks, IRAs, and HSAs.
- Medicare premium amounts and deductibles that vary based on income.
- Social security tax rates and limits on benefits subject to income tax.
This document summarizes the 2014 tax rates and limits in the United States. It outlines the marginal tax rates and tax brackets for single, married filing jointly, head of household, and married filing separately filers. It also summarizes standard deductions, personal exemptions, capital gains tax rates, retirement plan and IRA contribution limits, education credits, Social Security benefits, Medicare premiums, and more.
"2012/2013 Income, Estate and Gift Tax Changes a Result of the 'Fiscal Cliff'...Dinsmore & Shohl LLP
"2012/2013 Income, Estate and Gift Tax Changes a Result of the 'Fiscal Cliff'," Financial Planning Association of Southwestern Ohio, Election Preview Virtual Conference
The document discusses imputing income for child and spousal support purposes. It defines imputed income and outlines relevant sections of the Child Support Guidelines for determining a spouse's income, including imputing income from employment, corporations, capital gains, and non-productive assets. The document then analyzes tax return information for "Mr. H" and identifies several sources of income that could potentially be imputed based on additional information obtained, including employment income, foreign pensions, dividends, capital gains, rental properties, and non-productive assets.
This document provides information on estate planning techniques to reduce estate taxes through shifting income tax liability. It discusses three examples: 1) Paying income tax on a minor's account to increase its value without gifting more assets. 2) Creating a defective trust where the grantor pays income tax, allowing the trust to accumulate tax-free. 3) Making a loan to a defective trust where the interest income and payments reduce the estate over time. The goal is to transfer wealth over generations while minimizing total tax liability.
2013 Changes in Tax Law and Year End Tax Planning Opportunities
Individuals
o 2013 tax rates
o Tax on investment income
o Other changes in tax law affecting individuals
o Year end planning opportunities
Businesses
o Employment tax
o Depreciation
o Pass-through entities
Estate and Gift Tax
o Exemption amounts
o Tax rates
o Gifting strategies
o Valuation discounts
o Grantor trusts
The document lists the 10 most expensive tax mistakes that cost business owners thousands each year. These include failing to plan, having "audit paranoia", choosing the wrong business entity, choosing the wrong retirement plan, missing opportunities for family employment, missing medical benefits, missing a home office deduction, missing car/truck expense deductions, missing meals and entertainment deductions, and missing tax coaching services. It encourages scheduling a free mini tax strategy session to review one's specific situation and identify potential tax savings from implementing proven strategies.
http://www.orlandotaxcoach.com/
Small business owners typically make these 10 tax related mistakes. Avoiding these mistakes all starts with proper tax planning including choosing the right business entity and maximizing your tax deductions.
New York Life - pocket tax tables guide 2015-16Cristi Tenhagen
The document provides information about income tax rates, payroll tax rates, and other tax rules for 2015 and 2016. Specifically, it includes:
- Income tax rates for single filers, heads of household, trusts and estates, married filing jointly, and married filing separately based on taxable income thresholds.
- Payroll tax rates for Social Security and Medicare.
- Details about alternative minimum tax, kiddie tax, corporate tax rates, taxation of Social Security benefits, personal exemptions, standard deductions, and itemized deductions.
This document lists the 10 most expensive tax mistakes that business owners can make. These include failing to do tax planning, having "audit paranoia", operating under the wrong business entity, choosing the wrong retirement plan, missing opportunities for family employment, missing medical benefits, not deducting a home office, missing car/truck expenses, missing meals and entertainment deductions, and not using a tax coaching service. It provides details on each mistake and how to avoid or minimize them.
This document provides an overview of scheduled tax changes for 2012 and 2013, including increases to income, capital gains, and Medicare tax rates. It discusses opportunities for tax planning for individuals and businesses before year-end, and notes some decisions that may be best to wait until after the election due to ongoing presidential tax proposals.
We want to help you manage your tax activities and simplify complex tax laws. We hope you’ll find that our 2014 Quick Tax Facts guide helps you do just that. This handy guide compiles frequently changing tax information applicable to most businesses and households.
Practical wealth management strategies for Health Care professionals looking to reduce taxes and maximize family estate using tax deferrals, income splitting, incorporation, insurance and Individual Pension Plans, among other strategies.
The document analyzes the likely policies of President-elect Obama on various issues based on his proposals during the campaign. It discusses that Obama will face challenges in dealing with the large federal budget deficit and decisions around expiring tax cuts. Key tax proposals from Obama include raising rates on high-income individuals, capital gains, and dividends while making tax cuts for middle and lower incomes permanent. He is also likely to increase business taxes through eliminating certain deductions and raising payroll taxes.
The document provides an overview of the 2010 healthcare reform legislation and subsequent tax law changes. It notes that the legislation was passed in two parts in 2010, containing provisions such as a small business tax credit for offering health coverage, elimination of lifetime caps on insurance, and penalties for remaining uninsured beginning in 2014. The summary also outlines numerous tax law provisions from 2010-2018 related to health savings accounts, deductions, credits, fees and more.
USE FAMILY TRUSTS to income split, grow wealth & save taxes, shift income to children & use this tax-free income to pay for expenses of your dependent children or grandchildren; take advantage of CRA low prescribed loan rate of 1% before it goes up...
Top 5 strategies to keep your profits in your pocketTim Miron
The document provides strategies for reducing taxes through effective tax planning, income splitting, and hybrid expenses. The top 5 strategies discussed are: 1) Effective tax planning through incorporation, holding companies, retirement planning, life insurance, and SRED credits. 2) Income splitting using salaries, dividends, property payments, family trusts, and multiple corporations. 3) Hybrid expenses such as home office, automobile, cell phones, and medical expenses. Specific tax savings examples are provided for many of these strategies.
The document provides an overview of key information about 2017 federal income tax rates and rules, retirement plan contribution limits, Social Security benefits, and individual retirement accounts. It includes:
- The 2017 federal income tax rates for single filers, married filing jointly, heads of households, and married filing separately based on taxable income brackets.
- The 2017 standard deduction amounts and personal exemption amounts, which are subject to phase out based on adjusted gross income.
- Annual limits on retirement plan contributions to defined benefit plans, defined contribution plans, and various individual retirement accounts.
- Rules for withdrawals from 403(b), 401(k), and other retirement plans before age 59.5, which may incur a 10
The document discusses estate planning and transfer taxes. It explains that individuals currently have a $5 million lifetime exemption from estate and gift taxes that can be used during life or at death. It provides an example of how gift taxes work if assets are transferred as a gift during life. It also discusses estate taxes applied to assets transferred at death, as well as the step-up in basis and exceptions for transfers to a spouse.
Join Commute Seattle for an informative workshop to learn how employers and commuters can take advantage of commuter benefit programs to save on federal and
state taxes, increase employee spending power, and make commuting to work more affordable, convenient and sustainable.
Learn about:
• Federal tax qualified transportation fringe benefits:
• Recent increases in transit, vanpool and parking fringe benefit spending limits
• Pre-tax accounts and ORCA business options
• Tax-free bicycle commuter benefits
• WA state business & occupation tax credits for commute trip reduction activities
• Parking cash-out programs, Zipcar for Business, Rideshare Online incentives and other taxable transportation benefits
Creating Powerful Retirement Accounts for Business Owners and Real Estate Inv...David Campbell
The document provides information about creating powerful retirement accounts for business owners and real estate investors. It outlines strategies to pay oneself instead of the IRS through tax-free income and retiring younger. Attendees will learn how to access retirement accounts at any age tax-free and penalty-free, and special tax and investing tips for the self-employed. The event features presentations from financial professionals including a real estate investor, the president of a self-directed IRA company, and a CPA tax strategist.
This document provides information about income tax savings strategies for individuals, including investments that generate tax-exempt income, offsetting capital gains losses, and reviewing exempt pension and annuity income. It also discusses itemized deductions for medical expenses, state and local taxes, charitable contributions, and miscellaneous expenses. Tips are provided for estimated tax payments, record keeping, Tennessee state income tax, gifting strategies, and the advantages and disadvantages of Roth IRA conversions.
This document summarizes key U.S. tax rates and limits for 2017 including:
- Federal income tax rates for single, married joint, head of household, and married separate filers at various income levels.
- Standard deduction and personal exemption amounts that phase out at certain income levels.
- Contribution and income limits for retirement accounts like 401ks, IRAs, and HSAs.
- Medicare premium amounts and deductibles that vary based on income.
- Social security tax rates and limits on benefits subject to income tax.
This document summarizes the 2014 tax rates and limits in the United States. It outlines the marginal tax rates and tax brackets for single, married filing jointly, head of household, and married filing separately filers. It also summarizes standard deductions, personal exemptions, capital gains tax rates, retirement plan and IRA contribution limits, education credits, Social Security benefits, Medicare premiums, and more.
"2012/2013 Income, Estate and Gift Tax Changes a Result of the 'Fiscal Cliff'...Dinsmore & Shohl LLP
"2012/2013 Income, Estate and Gift Tax Changes a Result of the 'Fiscal Cliff'," Financial Planning Association of Southwestern Ohio, Election Preview Virtual Conference
The document discusses imputing income for child and spousal support purposes. It defines imputed income and outlines relevant sections of the Child Support Guidelines for determining a spouse's income, including imputing income from employment, corporations, capital gains, and non-productive assets. The document then analyzes tax return information for "Mr. H" and identifies several sources of income that could potentially be imputed based on additional information obtained, including employment income, foreign pensions, dividends, capital gains, rental properties, and non-productive assets.
This document provides information on estate planning techniques to reduce estate taxes through shifting income tax liability. It discusses three examples: 1) Paying income tax on a minor's account to increase its value without gifting more assets. 2) Creating a defective trust where the grantor pays income tax, allowing the trust to accumulate tax-free. 3) Making a loan to a defective trust where the interest income and payments reduce the estate over time. The goal is to transfer wealth over generations while minimizing total tax liability.
2013 Changes in Tax Law and Year End Tax Planning Opportunities
Individuals
o 2013 tax rates
o Tax on investment income
o Other changes in tax law affecting individuals
o Year end planning opportunities
Businesses
o Employment tax
o Depreciation
o Pass-through entities
Estate and Gift Tax
o Exemption amounts
o Tax rates
o Gifting strategies
o Valuation discounts
o Grantor trusts
The document lists the 10 most expensive tax mistakes that cost business owners thousands each year. These include failing to plan, having "audit paranoia", choosing the wrong business entity, choosing the wrong retirement plan, missing opportunities for family employment, missing medical benefits, missing a home office deduction, missing car/truck expense deductions, missing meals and entertainment deductions, and missing tax coaching services. It encourages scheduling a free mini tax strategy session to review one's specific situation and identify potential tax savings from implementing proven strategies.
http://www.orlandotaxcoach.com/
Small business owners typically make these 10 tax related mistakes. Avoiding these mistakes all starts with proper tax planning including choosing the right business entity and maximizing your tax deductions.
10 Most Expensive Tax Mistakes That Cost Business Owners ThousandsTom Sawyer
1. Failing to properly plan taxes can result in thousands of dollars in unnecessary taxes paid. Tax planning allows business owners to maximize deductions, credits, and minimize taxable income through strategies like income shifting.
2. Choosing the wrong business entity, like operating as a sole proprietorship instead of an S-corporation, can significantly increase taxes paid through higher self-employment taxes.
3. Missing opportunities for family employment or medical benefits can save thousands in taxes by paying family members reasonable wages and salaries that are tax deductible or non-taxable. Setting up the proper retirement plans is also important for tax savings.
The document provides an overview of key aspects of the US tax system, including types of income, adjustments, deductions, tax brackets, credits, and taxes for individuals and businesses. It discusses changes to these areas introduced by the Tax Cuts and Jobs Act of 2017 and potential changes for 2018. The document aims to help readers understand how the tax system works and identify opportunities to reduce their tax burden through various strategies and planning techniques.
The document provides an overview of S-Corporations, explaining that they allow business owners to split business proceeds into a salary and income portion in order to pay employment taxes only on the salary and avoid self-employment taxes on the income portion. It notes the setup requirements to form an S-Corp and quarterly/annual maintenance requirements, and compares the employment tax savings of an S-Corp to a sole proprietorship.
This document provides an overview of tax strategies for real estate investors. It discusses how to structure income and expenses to minimize taxes through deductions, credits, and tax-advantaged business entities like S-corporations. Key strategies include maximizing depreciation by breaking out property components, avoiding self-employment taxes through S-corps, employing family members, and establishing medical reimbursement plans. The document emphasizes the importance of tax planning and coaching services to legally reduce tax liability.
Choosing A Retirement Plan For Your Business427503 CvShane Riley
A defined benefit plan guarantees a set monthly payment in retirement. It requires high annual contributions from the business owner to fund, making it best for older owners with shorter time horizons. Younger owners would need to contribute more annually to fund the same guaranteed benefit. The contributions are tax deductible for the business.
This document provides contribution limits and tax reference information for various tax-advantaged accounts like traditional and Roth IRAs, 529 college savings accounts, and Coverdell ESAs. It also includes income phase-out ranges that determine eligibility and deductibility for contributions. Additionally, it lists the standard tax deductions and brackets for 2021 federal income taxes for individuals, estates, and trusts. Long-term capital gains tax rates and gift/estate tax exclusions are also summarized.
The document discusses various retirement planning strategies such as investing in stocks, bonds, mutual funds, IRAs and 401(k)s. It provides details on contribution limits for traditional and Roth IRAs and how much individuals can contribute each year depending on income and age. The effects of starting retirement savings early versus late are shown through hypothetical investment scenarios over 30 years with different annual returns.
GROWING AND PRESERVING ASSETS THROUGH TAX AND ESTATE PLANNING - Tina Davis, C...IFG Network marcus evans
Presentation by Tina Davis Milligan, CPA, Managing Director, Family Office Services, CTC | myCFO - Speaker at the IFG Wealth Management Forum Oct 2015 at the Trump Doral in FL
This document discusses the benefits of incorporating a professional business. Tax deferral is a key benefit, as corporate tax rates are generally lower than personal tax rates, allowing business owners to retain more income. Incorporation also enables income splitting between family members through dividend distributions or paying a spouse/children through the corporation. Limited liability protects personal assets from business debts and liabilities. The document provides tax rates and strategies for compensation, investments, transferring assets, and common CRA audit topics. It emphasizes that incorporation is best for tax deferral and planning but has costs like taxes when withdrawing corporate funds.
This document provides a summary of tax rates and allowances that were announced in the UK Budget 2014. It includes income tax rates, personal tax allowances, national insurance contribution rates, capital gains tax rates, inheritance tax allowances, corporation tax rates, VAT rates, stamp duty land tax rates and other tax relief thresholds. The summary is intended to be a basic guide and specific advice should be obtained for individual circumstances.
The document describes various types of charitable remainder trusts (CRTs). A CRT allows a donor to transfer assets to charity while receiving payments, either for life or a set term of years. The donor receives an income tax deduction upfront based on the value of the future gift to charity. When the donor passes away or the term ends, the remaining assets go to the designated charity. The document discusses the tax benefits of CRTs and how distributions are taxed to recipients. It also outlines some variations of CRTs, such as net income CRUTs that make payments based on trust income or "flip" CRUTs that convert to a standard payout rate after a trigger event.
The document discusses how many tax provisions are set to expire or change at the end of 2012, which would result in individuals and families paying substantially more in taxes. It outlines how popular tax deductions, credits, and rates that applied to income, capital gains, dividends, payroll taxes, and estate taxes are scheduled to expire or change. The expiration of these tax provisions could remove up to $3,500 from the average taxpayer's annual income and significantly increase taxes for many individuals, families, and businesses.
The document summarizes the Florida state deferred compensation retirement program. It provides three key components to preparing for retirement: the Florida Retirement System pension or investment plan, supplemental savings like deferred compensation or IRAs, and Social Security benefits. It describes how deferred compensation works by allowing pre-tax contributions and growth over time. It lists investment providers and contribution limits and benefits of the program like tax deferral and flexibility.
2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...Nicola Wealth Management
On October 1, 2017, NWM hosted a group of clients at the Four Seasons Hotel Toronto to discuss Finance Minister Bill Morneau and the Canadian government's proposal for tax reform impacting the majority of Canadian business owners.
NWM President, David Sung, opened the evening with an overview of the proposed tax changes. He provided some context and asked the audience to consider the political undertone of the Liberal government's tax proposal and the way in which they have handled the public push-back.
John Nicola, Chairman & CEO, an overview of what the government is proposing exactly and the impact it will have. He went on to discuss some planning options available to Canadian business owners.
This document discusses the tax benefits of incorporating for realtors. It outlines how incorporation allows for tax deferral through lower corporate tax rates compared to personal tax rates. Incorporation also enables income splitting between family members through dividend payments. Finally, incorporation provides liability protection as corporate assets are separate from personal assets, shielding personal assets from business-related lawsuits. The document provides examples of how to structure compensation, utilize investment vehicles like RRSPs, and engage in tax planning to further reduce taxes.
This is a presentation that I put together while in college to educate other students about 401k's. My intention was to get them to participate in a company 401k if offered at their starting jobs. Originally the presentation had an intro slide show of people moving from college through various stages of life to retirement with the Rolling Stone's "Time is on My Side" playing in the background. Unfortunately, Slideshare doesn't support embedded video and audio, since that was probably my favorite part of the presentation.
Similar to 10 Most Expensive Tax Mistakes That Cost Business Owners Thousands (20)
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The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
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Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
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On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
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B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
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10 Most Expensive Tax Mistakes That Cost Business Owners Thousands
1. 10 Most Expensive Tax
Mistakes That Cost
Business Owners
Thousands
Jaswant S Gill CPA
281-880-8500
info@jsgcpas.com
www.jsgcpas.com
2. #1: Failing to Plan
“There is nothing wrong with a
strategy to avoid the payment of
taxes. The Internal Revenue Code
doesn’t prevent that.”
William H. Rehnquist
4. Taxable Income
Earned income
Interest/dividends
Add Taxable Income Capital gains
minus Adjustments to Income Pension/IRA/Annuity
Rent/royalty
minus Deductions
Alimony
times Tax Bracket
Gambling winnings
minus Tax Credits Illegal income
5. Adjustments to Income
IRA contributions
Moving expenses
Add Taxable Income ½ SE tax
minus Adjustments to Income SE health insurance
Retirement
minus Deductions
Alimony
times Tax Bracket
Student loan interest
minus Tax Credits
6. Deductions/Exemptions
Medical/dental
State/local taxes
Add Taxable Income Foreign taxes
minus Adjustments to Income Interest
Casualty/theft losses
minus Deductions/Exemptions
Charitable gifts
times Tax Bracket
Miscellaneous itemized
minus Tax Credits deductions
7. Tax Brackets
Rate Single HoH Joint
10% 0 0 0
Add Taxable Income
15% 8,501 12,151 17,001
minus Adjustments to Income
25% 34,501 46,251 69,001
minus Deductions
28% 83,601 119,401 139,351
times Tax Bracket
33% 174,401 193,351 212,301
minus Tax Credits
35% 379,151 379,151 379,151
8. Tax Credits
Family credits
Education credits
Add Taxable Income Foreign tax
minus Adjustments to Income General business
Low-income housing
minus Deductions
Renovation
times Tax Bracket
minus Tax Credits
9. Two Kinds of Dollars
Add Taxable Income
minus Adjustments to Income Pre-Tax Dollars
minus Deductions
times Tax Bracket
minus Tax Credits
After-Tax Dollars
10. Keys to Cutting Tax
“You lose every time you spend after-tax
dollars that could have been pre-tax dollars.”
1. Earn nontaxable income
2. Maximize deductions and credits
3. Shift income: later years, lower brackets
13. Sole Proprietorship
Report net Pay income
income on tax on net
Schedule C income
Pay SE tax up
to 15.3% on
income
14. S-Corporation
Split proceeds Pay income
into “salary” tax on salary
and “income” and income
Salary Income
Pay FICA up to Avoid FICA/SE
15.3% on salary tax on income
15. Employment Tax Comparison
S-Corp FICA Proprietorship SE
Salary $40,000 Income $80,000
FICA $6,120 SE Tax $11,304
Net $73,880 Net $68,696
S-Corp Saves
$5,184
16. #4: Wrong Retirement Plan
50,000
40,000
Contribution
30,000
20,000
10,000
0
30,000 60,000 90,000 120,000
Income
SEP SIMPLE 401(k)
17. Simplified Employee Pension
“Turbocharged” IRA
30000
Contribute up to 25% of
income 25000
Max. contribution: $49,000 20000
Must contribute for all 15000
eligible employees
10000
Contributions directed to
5000
employee IRAs
No annual administration 0
30,000 60,000 90,000 120,000
SEP Contribution
18. SIMPLE IRA
Defer 100% of income up to
$11,500 16000
Age 50+ add $2,500 “catch 14000
up” 12000
10000
Business “match” or “PS”
8000
Contribute to IRAs 6000
No annual administration 4000
2000
0
30,000 60,000 90,000 120,000
SIMPLE Contribution
19. 401(k)
Defer 100% of income up to
$16,500 45000
Age 50+ add $5,500 “catch 40000
up” 35000
Employer contributes up to 30000
25000
25% of “covered comp”
20000
Max. contribution: $49,000 15000
Loans, hardship withdrawals, 10000
rollovers, etc. 5000
Simplified administration for 0
“individual” 401(k) 30,000 60,000 90,000 120,000
401(k) Contribution
20. Defined Benefit Plan
Guarantee up to $185,000
Age Regular 412(i)
Contribute according to
age and salary 45 $80,278 $164,970
Required contributions
“412(i)” insured plan 50 $133,131 $258,019
“Dual” plans
55 $211,448 $395,634
60 $236,910 $450,112
Projections based on retirement at age 62
with $165,000 annual pretax income.
21. #5: Missing Family Employment
Children age 7+
First $5,800 tax-free
Next $8,500 taxed at 10%
“Reasonable” wages
Written job description, timesheet, check
Account in child’s name
FICA/FUTA savings
22. #5: Missing Family Employment
Children age 7+
First $5,800 tax-free
Next $8,500 taxed at 10%
“Reasonable” wages
Written job description, timesheet, check
Account in child’s name
FICA/FUTA savings
23. #6: Missing Medical Benefits
Employee benefit plan
– Married: Hire spouse (no salary necessary)
– Not married: C-corp
Reimburse employee for medical expenses
incurred for self, spouse, and dependents
Works with any insurance
– Use your own insurance
– Supplement spouse’s coverage
24. MERP/105 Plan
Major medical, LTC, Medicare, “Medigap”
Co-pays, deductibles, prescriptions
Dental, vision, and chiropractic
Braces, fertility treatments, special schools
Nonprescription medications and supplies
25. MERP/105 Plan
Written plan document
No pre-funding required
– Reimburse employee
– Pay provider directly
Bypass 7.5% floor
Minimize self-employment tax
26. Health Savings Account
1. “High deductible health plan”
- $1,200+ deductible (individual coverage)
- $2,400+ deductible (family coverage)
Plus
2. Tax-deductible “Health Savings Account”
- Contribute & deduct up to $3,050/$6,150 per year
- Account grows tax-free
- Tax-free withdrawals for qualified expenses
27. #7: Missing A Home Office
“Principal place of business”:
1. “exclusively and regularly for administrative
or management activities of your trade or
business”
2. “you have no other fixed location where you
conduct substantial administrative or
management activities of your trade or
business.”
Source: IRS Publication 587
28. #7: Missing Home Office
Determine “BUP” of home
– Divide by rooms
– Square footage 1500
– Eliminate “common areas”
100
144
29. #7: Missing Home Office
Deduct “BUP” of expenses:
– Mortgage/property taxes
(better than Schedule A)
– Utilities/security/cleaning
– Office furniture/decor
– Depreciation (39 years)
Increase business miles
30. #7: Missing Home Office
When you sell:
– Recapture depreciation
– Keep tax-free exclusion
31. #8: Missing Car/Truck Expenses
AAA Driving Costs Survey (2010)
Vehicle Cents/Mile
Small Sedan 43.3
Medium Sedan 56.2
Large Sedan 70.2
4WD SUV 73.9
Minivan 62.0
Figures assume 15,000 miles/year; $2.603/gallon gas
32. #9: Missing Meals/Entertainment
Bona fide business discussion
– Clients
– Prospects
– Referral Sources
– Business colleagues
50% of most expenses
Home entertainment
Associated entertainment
34. #10: Missing Tax Coaching Service
True Tax Planning
Written Tax Plan
– Family, Home, and Job
– Business
– Investments
Review Returns
35. Circular 230 Notification
In accordance with the provisions of US Treasury Circular 230
we advise you that this communication and any attachments to
this message is not intended or written to be used, and cannot be
used for the purpose of avoiding tax penalties, under the IRS code,
or promoting, marketing or recommending to another party any
tax related matters addressed in this e-mail message or
attachments.
www.jsgcpas.com
info@jsgcpas.com
281-880-8500