These are the topics we will explore in this publication:
1- Discover the power of tax savings.
2 - The art of deferral: Your Journey to Tax Postponement!
3 - Unlock the potential of your business with four key professionals!s
4 - How to eliminate 100% of your income taxes?
5 - Optimizing Tax Strategy for Medical Insurance Expenses: Maximize Your Deductions!
1- Discover the power of tax savings
Are you ready to conquer high tax levels? It's time to level up and take advantage of government tax benefits like a true professional!
It's all about control! Remember, it's not just about how much you own but how much you can control. Learn some exciting strategies to help you master this tax savings game:
Family income shifting: By employing your children or caring for your parents through legitimate means, you can enjoy incredible tax benefits. It's like assembling a dream team of tax savings, where your loved ones become key players in your financial success.
Harness the power of C corporations: When your business income from a partnership soars and exceeds the 21% tax rate, it's time to call in reinforcements: a C corporation. By establishing a C corporation, you can strategically shift your income and take advantage of lower tax rates.
Leverage the power of tax deductions: The government rewards you for being a responsible business owner and a family caregiver. By employing your children, you not only provide them with valuable life lessons but also unlock notable tax benefits. Caring for your parents can also lead to substantial tax advantages.
Remember, the power to reduce your tax burden is within your reach. Stay tuned for more exciting strategies that will allow you to master the art of tax savings like never before.
2 - The art of deferral: Your Journey to Tax Postponement!
Are you ready to embark on an exciting journey to the realm of tax deferral? When it comes to taxes, you have three options: tax them now, tax them later, or not tax them at all.
Legally reducing your taxes is not an insurmountable challenge; it simply requires attention and effort. Let's take a look at some incredible examples of tax deferral that will make you jump for joy!
The 1031 exchange: The delight of deferral! With this tax-saving gem, you can defer paying taxes on capital gains from the sale of your original investment property. Here's the important information: Within the first 45 days after the sale, identify a new property and complete the exchange by acquiring it within the next 180 days. Oh, and don't forget you'll need the help of a qualified intermediary to make this magic happen!
The traditional 401(k) plan: Your Dream Retirement: Imagine this, a magnificent account where you can save hard-earned dollars, shielded from taxes until you retire. That's right! By contributing to a traditional 401(k) plan, you will not only see your savings grow but also postpone paying taxes until you're ready to enjoy your golden years. It's a win-win situation!
The Accounting Method Metamorphosis: Get ready to transform your cash accounting method to accrual and unlock a world of tax deferral possibilities. By adopting the accrual method, you'll have the power to defer taxes on income until it's actually earned.
These are just a few examples of the incredible techniques you can employ to keep your taxes in check and your money in your hands. Remember, my team and I are here to be your loyal tax companions, guiding you on this exciting adventure every step of the way.
3 - Unlock the potential of your business with four key professionals!
Are you ready to assemble an unstoppable team that will take your business to new heights? Today, I present to you four key professionals who are ready to become your secret weapons in your quest for success!
Certified Public Accountant (CPA): Imagine a superhero with an incredible ability to navigate the complex world of numbers. That's a CPA! These licensed professionals are masters of accounting and finance, trained to handle a wide range of tasks, including taxes and financial planning. With their expertise, they ensure you comply with government tax and accounting requirements, freeing you up to focus on growing your business.
The Lawyer: A lawyer is your champion when it comes to drafting and reviewing contracts, resolving legal disputes, and providing advice on complex legal issues that can affect your business. With their guidance, you can protect your assets and ensure your company complies with all applicable laws and regulations. They are the guardians of legality in your epic business journey!
The Banker: Imagine having a financial maestro orchestrating a symphony of banking solutions tailored to your specific business needs. They help you manage your business finances more effectively, offering customized banking solutions that align with your business goals. Plus, they provide valuable financial advice that allows you to make informed decisions about your business finances.
The Accountant: Every great adventure needs someone to keep track of the treasure, and that's where the reliable accountant comes in. They diligently record and classify all your company's financial transactions. While they may not possess the advanced skills of a Certified Public Accountant (CPA), accountants excel at managing basic accounting tasks. Many small businesses rely on accountants to handle essential financial tasks with precision.
In summary, these four professionals are the key to your business's long-term success. By leveraging their expertise, you'll ensure your company complies with regulations while maximizing profitability. Together, they form an unbeatable dream team that will allow you to conquer new horizons!
4 - How to eliminate 100% of your income taxes?
To start, let's take a quick tour of the main types of taxes:
Federal Income Tax: This tax is based on your income and follows a progressive scale that increases as your income increases. Tax rates can range from a modest 10% to a staggering 37%.
State Income Tax: Just like its federal counterpart, state income taxes are based on income and vary depending on the state you reside in. The tax rate could be around 10%, and it can hit your wallet hard!
Social Security and Medicare Taxes: These taxes are applied to both employees and employers, financing the country's social security program. FICA taxes have a total of 12.4% for the Social Security payroll tax and an additional 2.9% for the Medicare payroll tax, making a grand total of 15.3% between FICA and Medicare.
Sales Tax: This tax is applied when you purchase goods and services, and the rate varies depending on the state and the type of item or service. Expect a tax rate of around 6% to give your wallet a little workout.
Property Tax: Based on the value of your property, this tax is applied to real estate and personal property. Rates vary by state and city, but you could be looking at around 1% of the property value.
In summary, when you add up federal taxes, state taxes, and Social Security and Medicare taxes (excluding sales tax and property tax), you could face a staggering total of 62.3% in overall taxes. Yes, you read that right! If your business generates $100,000 in income, you could say goodbye to a significant amount of that money in taxes.
But fear not! I have five epic strategies to help you achieve the Holy Grail of zero taxes in the United States:
The Mighty Foreigner: If you're an international rockstar, don't live in the US, and have registered an LLC in the United States (not a corporation), you may qualify for our zero tax strategy. No income limitations!
The Investment Wizard: If you're a real estate or stock market investor, get ready for an exciting tax-free journey! Channel your financial prowess through a Roth IRA and enjoy the sweet taste of zero taxes on capital gains.
The Refinancing Magician: Do you have properties you don't want to sell but need that sweet cash from equity? Fear not! Refinance your property and watch the taxman shed a tear as no taxes will be paid on that income.
The Generous Clan: Need a little extra capital? Let your family come to the rescue! They can "gift" you money or properties, and guess what? You don't have to pay taxes! In the US, the giver of the gift bears the tax burden, not the lucky recipient.
The Airbnb Enchanter: Want to boost your income with some rental housing magic? Here's the trick: Rent out your personal home for up to 14 days a year, charge whatever you want, and voila! Zero taxes on those sweet rental income.
5- Optimizing Tax Strategy for Medical Insurance Expenses: Maximize Your Deductions!
When it comes to maximizing tax deductions, partners' medical insurance expenses play a crucial role. Understanding the available options and how they can benefit your business is essential for an effective tax strategy. The good news is that in many cases, these expenses are eligible for tax deductions, resulting in significant savings for your company.
It's important to note that medical insurance expenses can be classified as eligible expenses for tax deduction if they meet certain requirements. One key requirement is that the medical insurance must be provided through a legally recognized entity such as a corporation. Additionally, the insurance must cover the partner, their spouse, and qualified dependents. This eligibility applies to both traditional health insurance and self-employed health plans.
An effective tax strategy for medical insurance expenses involves considering the option of establishing a Health Savings Account (HSA). An HSA is a tax-exempt savings account that allows you to save money specifically for covering medical expenses. These plans offer significant tax benefits as funds deposited into the HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
Another tax strategy to consider is the possibility of treating medical insurance expenses as a deductible business expense. It is crucial to take into account applicable restrictions and guidelines. Medical insurance expenses are only deductible if they are paid directly by the company and not through a personal plan.
Additionally, maintaining proper documentation and demonstrating that these expenses are necessary and reasonable for the business is essential.
Working closely with a qualified tax professional can help ensure you are maximizing this tax strategy.
Did you know you can pay 0 taxes in the U.S. with 30 days of free accounting?
Let’s pay zero taxes!
Antonio Coa, CPA
Tax Specialist &
Antonio Coa, LLC
Whatsapp: (561) 814-4558