Getting the most of this course
Section 1: Definitions
Basic definitions commonly used in tax planning
- Protected: Filing Status
- Protected: Total Income
- Protected: Adjusted Gross Income
- Protected: Deductions
- Protected: Taxable Income
- Protected: Tax
- Protected: Alternative Minimum Tax
- Protected: Self employment tax
- Protected: Credits
- Protected: Federal income tax withheld
- Protected: Estimated taxes
- Protected: 2018 Tax Planning template
- Definition Quiz
Section 2: Tax Law Changes
Discussion of some of the 2018 tax law changes
- Protected: Tax law changes excel template
- Protected: Personal Standard Deduction
- Protected: Tax Rate Changes – Individual
- Protected: Tax Rates – Corporation
- Protected: Alimony
- Protected: Moving expenses
- Protected: Medical expenses
- Protected: Mortgage interest
- Protected: State taxes
- Protected: Casualty loss
- Protected: Miscellaneous itemized deduction
- Protected: Child tax credit
- Protected: Meals
- Opportunity Zones
- Employee credit for paid family and medical leave
- Tax Law Change Quiz
Section 3: Qualified Business Income Deduction
QBI- new deduction for 2018
Section 4: Tax Planning
Section 5: Tax issues specific to married entrepreneurs
Section 6: Multi year tax planning issues
Planning for 2019 - Budgeting to minimize taxes
Coming soon ...
If your business completely depends on you, the likelihood of selling your business at a decent price is very low. As a result, I highly recommend having a retirement plan.
This strategy is going to discuss the roth versus the traditional ira contribution. Later we will discuss running your retirement plan through your business.
Roth or Traditional?
The roth versus the traditional ira choice is based on when you think you will have the higher tax rate. Obviously, you cannot tell exactly what the future holds, so it is important to visit this topic regularly.
If you are projecting a higher tax rate today, then using the traditional ira will be better for you.
Let’s take a look at a sample analysis:
By contributing to a traditional IRA, this taxpayer is able to reduce tax liability by $2,420. If they chose a roth ira, they will get no deduction. Rather they will be able to withdraw their benefits tax free as shown below:
The roth ira investor gets to enjoy the benefits tax free! This is great if he/she is at a higher tax bracket at retirement.