Tax Savings On Sale Of Business

Imagine selling your business (C-corporation only) for a gain of around $7 million and paying no taxes. That’s right – as long as you operated your business as a Qualified Small Business Corporation (QSBC) and you owned the business for more than five years, you don’t have to pay any federal income tax on the […]

The Strategy That Can Substantially Reduce Taxes For A Husband-Wife Partnership

Separate out Husband-Wife Partnership and Hire Your Spouse as an Employee Consider this strategy for your existing husband-wife partnership if you are not in a community property state and you do not love the S corporation idea. Step 1. Separate the existing husband-wife partnership or LLC treated as a partnership for federal tax purposes and start […]

Understanding The Tax Benefits From COVID-19 (CARES Act)

Net Operating Loss (NOL) Opportunities  The CARES Act now allows NOLs arising in tax years 2018, 2019, and 2020 to be carried back 5 years and claim refunds against the taxes already paid. Say for example, a taxpayer that had net operating losses in 2018 and/or 2019, and may have losses in 2020 as well, […]

Tax Saving Strategies For Sole Proprietors

Put Your Children on Your Payroll If your kids are under 18, you can hire them to take care of business chores and save on federal self-employment taxes of up to 15.3%. As long as the total wages you’re paying your child are less than $12,400 for the year, the child doesn’t have to pay […]

Last Minute Year-End Strategies To Reduce Taxes On Capital Gains

Here is a list of strategies to reduce taxes on capital gains. Sell stocks that will give you short term gains (up to 40%) to mitigate the gain against any long-term losses (up to 23.8%) In other words, make the high taxes wash out by netting them against low-taxed losses, and keep the difference. Sell […]

6 Year-End Tax Saving Strategies

Year-end is approaching, so let’s do some tax planning. Check out some tax-saving strategies below that can save you $$$: Put your retirement plan in place by December 31st and make sure you make a tax-deductible contribution. Converting traditional IRA to a Roth IRA can provide huge tax savings in the long-term. Make sure you […]