Tax Planning

I. Introduction In today’s complex healthcare landscape, individuals and families are increasingly seeking strategies to manage healthcare costs effectively while maximizing their financial resources. Health Savings Accounts (HSAs) have emerged as a powerful tool offering a unique combination of healthcare savings and tax advantages. This white paper delves into the intricacies of HSAs, exploring their…

More Tax Strategies to Consider Business Start-Up Costs: Business Insurance Deductions: Home Office Deduction (Simplified Method): Inventory Management (LIFO/FIFO): Business Travel Deductions: Business Entertainment (Limited): Research and Development (R&D) Tax Credit: State and Local Tax (SALT) Deductibility (Limited): Qualified Opportunity Zones: Net Operating Losses (NOLs): Remember to consult with a qualified tax advisor for personalized…

Abstract: Simplified Employee Pension (SEP) IRAs offer a straightforward and tax-advantaged retirement savings option for self-employed individuals and small business owners. With relatively simple setup and administration, SEP IRAs provide a valuable tool for building retirement savings while reducing current tax liabilities. This white paper explores the mechanics of SEP IRAs, their contribution limits, tax…

Abstract: Choosing the appropriate business structure is a critical decision for small business owners, with significant tax and legal implications. Electing S corporation (S-Corp) status can offer substantial tax advantages compared to other structures like sole proprietorships or partnerships, particularly regarding self-employment taxes. This white paper explores the mechanics of S-Corps, their eligibility requirements, tax…

Abstract: Individual Retirement Accounts (IRAs), both Traditional and Roth, offer valuable tax-advantaged savings vehicles for retirement. While often associated with employees, these accounts can be particularly beneficial for small business owners, providing flexibility and tax benefits tailored to their unique circumstances. This white paper explores the mechanics of Traditional and Roth IRAs, their contribution limits,…

Abstract: Section 179 of the Internal Revenue Code offers a powerful tax incentive for small and medium-sized businesses, allowing them to deduct the full purchase price of qualifying assets in the year they are placed in service. This strategy, known as Section 179 expensing, can significantly reduce taxable income and improve cash flow. This white…

Abstract: The Qualified Business Income (QBI) deduction, introduced by the Tax Cuts and Jobs Act (TCJA) of 2017, offers a significant tax benefit to eligible self-employed individuals and small business owners. However, maximizing this deduction requires careful consideration of various factors, particularly the interplay between salary and business income, especially for S corporations. This white…

Abstract: For small business owners, choosing the right retirement plan is a crucial decision with significant tax and financial implications. The 401(k) plan, traditionally associated with larger corporations, offers valuable benefits for small businesses as well, especially when considering variations like the Solo 401(k). This white paper explores the mechanics of 401(k) plans, their tax…

Abstract: For married small business owners, the decision of whether to file taxes jointly or separately can significantly impact their tax liability. While filing jointly is the more common choice, certain circumstances may make filing separately advantageous. This white paper explores the nuances of both filing statuses, outlining the tax implications, benefits, and drawbacks for…