Tax Planning HQ

01/08/2024

Every business podcast can't resist that Year-End Tax Planning Strategies episode.

I can't tell you the number of times I have rolled my eyes and hit the stop button on these episodes. They are all the same! CPA Bob comes on and wants you to use his firm for tax services. He then goes on to tell you invaluable tax tips that nobody knows like the S Corp payroll strategy and home office deduction. 🤦‍♀️

These are basic concepts that every first-year accountant will know. And if your CPA doesn't know them and hasn't already talked to you about these basic topics, you need a new CPA. This is not real tax planning!

Here's the tea 🍵: The people preparing your tax return are not the people you should be listening to for tax planning advice. If they really understood complicated tax planning strategies, they wouldn't be doing tax returns.

12/12/2023

A secret tool of the wealthy is building significant amounts of wealth inside Roth-IRAs.

There are a number of different great tax planning strategies you can use with a Roth-IRA. I've previously posted about how Peter Thiel was able to build a billion-dollar Roth. But there are also strategies that can be used by everyday people, like you and me.

The first step to using any Roth-IRA tax strategy is to get money inside the account. We know there are limitations in the amount we can contribute each year. And high earners are prohibited from making any contributions. But that doesn't mean you can't still use a Roth.

Check out this video to learn about how you can get tons of money into a Roth by doing a mega backdoor Roth-IRA conversion ➡ https://youtu.be/VCj3Ox-nYdw

Better act fast because some democrats are keen to shut down this loophole in the near future.

*This is not legal or investment advice*

Learn what a mega backdoor Roth-IRA conversion is and how to do it. Self-Directed Roth-IRA @ E*TRADE - https://us.etrade.com/what-we-offer/our-accounts/roth-...

12/07/2023

The typical recommendations from your CPA around year-end tax planning are ▶️ max out 401k contributions and prepay expenses.

Not only are these strategies not tax planning, they are also just bad advice in the first place.

Check out my video where I walk you through some outside-the-box year-end tax planning ideas nobody else is talking about. 🎥https://youtu.be/HNWCqEQHbbw

Most of the year-end "tax planning" ideas you hear from CPAs and tax advisors are garbage. Prepaying expenses and maxing out 401k contributions are not examp...

11/28/2023

As crypto winter hopefully comes to a close, some of you may still have net losses in your crypto holdings. Good news! Under current law, tax loss harvesting for crypto is still an option. You can sell crypto for a loss and immediately buy back the same crypto without the same limitations as stocks.

The key is to use this strategy wisely to maximize the tax loss you can claim. Check out this video to learn how you can implement tax loss harvesting with your crypto and potentially save on your taxes ➡ https://youtu.be/xxiNuA05NRU

Act fast before Congress considers closing this loophole!

Disclaimer: This is not tax or investment advice.

Learn how to do tax loss harvesting for crypto and how to maximize tax losses by using the HIFO approach for basis tracking. Crypto Tax Planning Strategies -...

11/21/2023

Contrary to what estate planners and Suze Orman would like you to think, everyone does not need a revocable living trust.

Basically, you only need a revocable living trust if the savings from probate fees justify setting one up. This typically includes people who:

1️⃣ Own property(ies), especially properties in multiple states;
2️⃣ Own a business or multiple businesses; or
3️⃣ Have investments outside just stocks and bonds (e.g., investment funds, businesses).

A revocable living trust helps you avoid probate fees when you die. It can also provide you with some privacy to avoid having your business out there for all to see.
That’s it. It does not provide any asset protection, income, or estate tax benefits.

Here’s a little tea 🫖: Asking an estate planner if you need a revocable living trust is like asking a barber if you need a haircut. Of course, they are going to say yes.

There are all kinds of scams and cockamamie examples of the costs you will save with your trust. To make sure you don't get duped, you need to understand what revocable living trusts are and how to use them before you even consider setting one up.

Check out this video before you contact an estate planning attorney 🎥 https://youtu.be/bZsADZ0vOFQ

*This is not investment or tax advice.*

This videos gives an overview of Revocable Living Trusts. Learn what Revocable Living Trusts are, the key benefits, and who should set up a Revocable Living ...

11/16/2023

Why aren’t more people talking about the ticking tax bomb that many are facing with their 401ks and traditional IRAs? 💣💰

I get asked this question ALL THE TIME by people in my network. When I owned a consulting firm, it was probably the 2nd most common question I would get from new clients.

Yet, CPAs and financial advisors are still telling clients to max out contributions to 401ks and IRAs under the disguise that this is “tax planning.” When will this madness stop?🤦‍♀️

Check out more about the ticking tax bomb issue in my video here ▶️ https://youtu.be/Vb2nnjU61aA

Discover the looming tax challenge that everyone's been talking about recently: the ticking tax bomb. With large 401k and traditional IRA balances becoming a...

11/09/2023

One harsh reality is that the tax code does not favor W-2 employees. If you have a full-time job, the unfortunate truth is that there are limited good tax planning options available to you.

The key for W-2 employees is taking advantage of what few tax strategies are available, especially when it comes to investing your money. The worst thing you can do as a full-time employee is take high-taxed money from your salary and invest it in a way you are going to pay taxes again on the future earnings from those investments.

Watch this video to understand what tax planning strategies are available for W-2 employees: 🎥 https://youtu.be/5yV770uR-y4

Learn about the tax planning strategies available for W-2 full-time employees. S Corp Payroll Tax Strategy - https://youtu.be/4kAF8oKOfXMShort-Term Rental Lo...

11/08/2023

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11/02/2023

Ever wondered how billionaires like Peter Thiel managed to make billions while paying $0 in tax?

He used one of the best tax planning tools available ➡️ a Roth-IRA.
Learn how Peter Thiel amassed a Roth-IRA worth billions in this video: https://youtu.be/5s0UBwfjNJY

I explain the strategy in detail and show how you too can use a Roth-IRA to build wealth and never pay another dime of tax again.

Delve into the financial genius of Peter Thiel as I unravel the strategy behind his billion-dollar Roth- IRA. From savvy investments to leveraging tax advant...

10/31/2023

You might not be making quite as much as you think. Taxes can cut your salary income in more than half! Under current tax laws, 1099 income is > W-2 salary.

10/26/2023

Good, modern-day tax planning strategies are based on the principle that you would rather pay tax on the seed, not the harvest.

Many CPAs recommend outdated strategies such as maxing out contributions to 401ks and IRAs or accelerating expenses. This is not tax planning.

If you want to build wealth efficiently, you have to find ways to reduce taxes you pay on your investment gains. You'd prefer to pay tax on your initial earnings (the seed) and then enjoy tax-free growth on that money once it's invested (the harvest).

All good tax planning strategies employ this concept.

Check out this video to learn more 🎥 https://youtu.be/pZ0yz_bgZys

This video covers the concept of paying tax on the seed, not the harvest. I explain what this means and why this is the foundation of good modern-day tax pla...