The latest ProPublica tax article published on 19 Aug. It focused on S Corporation owners, particularly ultrawealthy individuals who benefitted from the S Corp tax status to an outsized degree.
S Corps allow their owners to declare a portion of their earnings as profit instead of salary, thus avoiding the 15.3% self-employment tax. As the article highlights, for ultrawealthy individuals, this can result in enormous tax savings.
What are your thoughts on S Corps and pass-through income? Leave us a comment below!
In this video, we'll provide an introduction to real estate tax benefits and rental income tax deductions.
Real estate investing is a tried and true method when answering the question of how to pay less taxes. It's also one of those assets that generate cash flow: passive income that can replace the earned income you get from a 9-5 job. This is why we feel so strongly about the power of real estate investing.
Let me cut right to the chase: if you're a real estate investor and you're paying taxes, you're doing something wrong!
Ok, I know, I know -- we all have to pay SOME tax. I get that.
But if you've got real estate investments, you should be seeing SUBSTANTIAL tax savings based on all of the inherent advantages that come with those types of investments.
If you know you're paying too much, or you even THINK you might be, head on over to our free training video to learn more about how wealth.gps can help!
In this video, we'll cover more tax planning strategies and ways to pay less tax and increase cash flow.
You'll find out how you can apply various business tax incentives to accelerate your after-tax cash flow and then funnel that cash towards increasing your net worth. These tax savings tips are invaluable to your success at building wealth!
Thanks to some very liberal tax laws written to encourage investment in personal tangible equipment, including information technology (IT) equipment, many businesses will be able to expense (write off as a tax deduction) all such assets purchased and placed in service before the end of the tax year. For businesses using the accrual method of accounting, the purchase must have been completed and the equipment placed in service before the company’s year-end.
There are a number of ways to deduct IT costs, and the best method should be based upon the need for a current-year deduction, while also considering that the deductions may be more beneficial in a future year. So careful planning is required.
In this video, we'll cover tax planning strategies that revolve around business entity structures, and the business tax incentives that they create.
Keep in mind, the right entity choice has a huge impact on your after tax cash flow, and is one of the best tax savings strategies available to you.
If you've always wondered how to not pay taxes legally, you've come to the right place!
Thieves use taxpayers’ natural fear of the IRS and other government entities to ply their scams, including e-mail and phone scams, to steal your money. They also use phishing schemes to trick you into divulging your SSN, date of birth, account numbers, passwords and other personal data that allow them to scam the IRS and others using your name and destroy your credit in the process. They are clever and are always coming up with new and unique schemes to trick you.
These scams have reached epidemic proportions, and this article will hopefully provide you with the knowledge to identify scams and avoid becoming a victim.
The very first thing you should be aware of is that the IRS never initiates contact in any other way than by U.S. mail. So, if you receive an e-mail or a phone call out of the blue with no prior...
A couple of weeks ago, ProPublica released an update on the story it first ran about Roth IRAs and Peter Thiel's $5B Roth account. (We released articles here on this blog on June 30 and July 14 on this story, as well.) Their latest article focused on Congress' desire to investigate the issue and the perceived abuses of the law, triggered by the revelation that approximately 28,000 Americans have $5M or more in their Roth or traditional IRA.
Here's an excerpt from the article:
"Roth IRAs were established in 1997 to incentivize middle-class Americans to save for retirement. Congress imposed strict limits, including a cap on how much can be contributed to the accounts each year, which today stands at $6,000 for most Americans. The average Roth account was worth $39,108 at the end of 2018.
But a select set of the ultrawealthy have managed to get around limits set by Congress and transformed the vehicle into a powerful onshore tax shelter. One way they’ve done that is...
The latest bombshell article from ProPublica, back on 8 Jul, examined the unique tax breaks owners of sports teams receive. It was the latest in the tax series of articles they've published since June that has opened may people's eyes to exactly how the tax code works for wealthy individuals.
Here's an excerpt from the article:
"[Los Angeles Clippers owner Steve] Ballmer pays such a low [tax] rate, in part, because of a provision of the U.S. tax code. When someone buys a business, they’re often able to deduct almost the entire sale price against their income during the ensuing years. That allows them to pay less in taxes. The underlying logic is that the purchase price was composed of assets — buildings, equipment, patents and more — that degrade over time and should be counted as expenses.
But in few industries is that tax treatment more detached from economic reality than in professional sports. Teams’ most valuable assets, such as TV deals and player...