MEMBER FORUM HIGHLIGHT -- Cashing Out Retirement Plan

Q: What are some of the best ways to minimize taxes when cashing out of my retirement plan? 

A: This will depend on a few different factors.  Be aware that, as a starting point, retirement distributions are taxed as ordinary income, and could trigger a penalty if accessed early.  Keep in mind though, when you withdraw in a low-income year, those penalties are lessened by that fact.  Outside investments that generate passive income losses, such as oil & gas and rental properties, can be a good way to blunt the effects of cashing out of the retirement plan.  Best practice is of course is to run all this by your advisor and get a qualified, second opinion. 

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Taxes and Divorce

marital status taxes Jan 31, 2022

If you are recently divorced or are contemplating divorce, you will have to deal with or plan for significant tax issues such as asset division, alimony, and tax-return filing status. If you have children, additional issues include child support; claiming of the children as dependents; the child, child care, and education tax credits; and perhaps even the earned income tax credit (EITC). 

Filing Status – Your filing status is based on your marital status at the end of the year. If, on December 31, you are in the process of divorcing but are not yet divorced, your options are to file jointly or to each submit a return as married filing separately. There is an exception to this rule; however, if a couple has been separated for all of the last 6 months of the year, and if one taxpayer has paid more than half the cost of maintaining a household for a qualified child, then that spouse can use the more favorable head of household filing status. If each spouse meets the criteria...

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Save 10-40% in After-Tax Cash Flow NOW!

cash flow taxes Jan 24, 2022

Want to find out how?  Watch this video.

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Rental Property Tax Benefits


Do you need more cash? Well, if you're a real estate investor, you're probably sitting on it as we speak!

In this video, I'll teach you about various rental property tax benefits and tax strategies for real estate investors, including the following topics:

-- rental income tax deductions
-- rental property expenses
-- how to avoid paying taxes
-- after tax cash flow
-- depreciation explained

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Business Tax Deductions


Are you overpaying on your taxes? Most people are!

In this video, we'll go over tax planning strategies as well as business tax deductions. Some specific topics we'll be discussing:

-- after tax cash flow
-- tax savings strategies
-- qualified business deduction
-- how to reduce self employment tax

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Choosing the Right Entity


Do you know how to choose a business structure? Do you know which entity type is best for your business?

If not, keep watching!

In this video, we'll start off by reviewing personal marginal tax rates to set the table, then we'll look at how to choose a business structure and examine the decision from both a tax and legal liability protection standpoint. We'll discuss:

-- limited liability company
-- limited partnership
-- C Corporation
-- S Corps benefits
-- how to increase cash flow by choosing the right business structure

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Tax Planning to Help New Franchisees

Investment can be a wonderful opportunity, but it also involves a completely unfamiliar set of rules when it comes to your taxes. Whether you are considering becoming a franchisee or are already involved, it’s important that you have the support of a knowledgeable tax planner to help ensure you understand your tax obligations and are preparing accordingly. Here are just a few of the things that you need to keep in mind:

Franchisees Pay Self-Employment Taxes

Even though you take direction from the franchise on marketing materials, training methods, employee rules and suppliers, you still are in charge of the business in ways that the IRS defines as being self-employed. You make your own schedule and establish your own community and business relationships, so the government puts you in the same category as a sole proprietor. That means you need to report your earnings on a Schedule C, just like single-member LLCs and sole proprietors do, and you need to pay the additional 15.3%...

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The Power of Real Estate and Oil & Gas Investments

ProPublica continues its revealing series of tax articles exposing the secret methods and tactics of the ultrawealthy to slash their tax bills.

Well, the good news is the methods they're using are not so secretive and are available to you, the everyday investor, as well.

Check out this article examining the benefits of real estate and oil & gas investments from a tax standpoint.  

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Save $10K to 100K in Taxes RIGHT NOW

tax planning taxes Dec 20, 2021

Want to find out how?  Watch this video.

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Made a Mistake on Your Tax Return - What Happens Now?  

Generally speaking, tax return mistakes are a lot more common than you probably realize. Taxes have grown complicated and COVID tax relief has made many changes; the paperwork required to file proper tax returns is often convoluted. This is especially true if you're filing your taxes yourself.  

The 2020 tax year certainly does not qualify as a "normal year."

Congress passed numerous tax laws before, during and after 2020 that apply to 2020, making it one of the more complicated tax years in recent memory. Even seasoned tax professionals had a hard time digesting all of the changes that they and their clients are now dealing with, requiring hours of continuing education. All of this is to say that if you've just discovered that you've made a significant mistake on your tax return, the first thing you should do is stop and take a deep breath, and then call this office. It happens. It's understandable. There are steps that you can take to correct the situation quickly — you...

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