Powerful Retirement Plan For Small Business Owners

Solo K is A.O.K for Small Business Owners Seeking Lower Taxes and Retirement Contributions.

If you missed out on the millions of bucks sent to the big corps in Uncle Sam’s stimulus program, don’t fret, you still have some options (Although, they don’t involve big financial handouts).

The Solo (k) commonly referred to as Solo K is a retirement plan set up for small business owners. Small business owners drive this economy, (in spite of what the lobbyists in DC would have us believe). As a small business owner, your tax liabilities are the most threatening thing to your financial well being right after the economy. Learning how to reduce your tax liability should be a part of every small business owner’s wealth building strategy. Knowledge is power. Let me re-phrase that, knowledge is money! Continue reading →

12 Tax Deductions For Small Business Owners

More Money Saving, Tax Saving Ideas for Small Business Owners!

The list continues! Check with your tax advisor in your unique situations but ALL of the following should be reviewed by you and/or your wealth team! Here are a few more write offs:

1. Fees we Hate! Service for processing credit cards is deductible!

2. Pens and Paper – Office Supplies! Those little things add up.

3. Bad Debts. As opposed to good debts? The only good in any debt might be its deductibility. If that debt was included in previous income, it may be deductible.

4. Professional Fees – Even if you felt like you got amateur advice, professional fees are usually deductible. Lawyers, accountants, and other consulting fees are write offs.

5. Office Equipment – Computers, iPads, cameras, fax machines, as long as it’s part of doing your biz, deductible it iz! You may be able to take it this year or depreciate it.

6. Furniture – Just like office equipment. Write it off.

7. Repairs and Maintenance – Keeping that office in tip-top-shape costs money! Deduct it and get some of it back.

8. Interestingly Enough, Interest is Still Deductible! Mortgage, finance charges, payment plan interest, and other interest may reduce that taxable income! Now, do you despise your credit card company a little less for that 22% interest rate?

9. Insurance For Sure – Premiums you pay for liability, credit, workers’ comp, malpractice and others is deductible.

10. Software Anywhere – Whether you got it from the box or downloaded it, generally, software is deductible. Future software apps are evolving to online service products that you don’t need to download and those fees are likely deductible as well.

11. License to Kill – Well, James Bond you’re not but most licenses can be written off. Licenses, fees, regulatory gouges, I mean fees are usually deductible.

12. Taxes – Whoa. That’s weird. Pay taxes. Use them as a tax deduction? It’s a strange taxable world we live in but yes, taxes are a business expense and if you incur them running your business, Uncle Sam says, write ‘em off!

Obviously, we have a little fun talking about taxes but the most fun you can have with your taxes is when you go from paying double digit taxes to single digits. That’s what I do. I want you to pay taxes – but only the ones you are obligated to and most of you are paying taxes that you are NOT obligated to pay!

Why pay for something when you don’t have to? Dang good question! We should tax, I mean, talk. ( I really did type that mistake – oooh, it must be tax season!)

Have a prosperous and deductible day!

Gabby Huguenin

Wealth Coach

Tax Fighter

All Around Fun Gal

P.S. Call me if you want to lower your taxes in 2011!

208-263-7202

HURRY! The Tax Man Goes Retro! Tax Savings for 2011 Only!

The Clock has Been Turned Back on Certain Taxes but not for Long!

In my ongoing Axe the Tax campaign, I have been asked by a lot of doctors and other clients what some of the new tax changes will mean to their tax-reduction strategies. It may seem a little strange but Uncle Sam really does give us ample money-saving opportunities to lower our taxes. Unfortunately, the tax gods tend to make things a little too complicated for busy small business owners, doctors with thriving practices, and other mere mortals to grasp.

There are tons of new tax deductions available for the tax enlightened out there. So, if you have not been enlightened yet, let me tax-enlighten you a bit! Here are a few Tax Tips to look into and discuss with your tax advisor and/or CPA right now because they are going fast! Literally.

Retroactively Reinstated Tax Break – Extended through 2011

The following tax breaks for individuals that came to a screeching halt at the end of 2009 are back! They’ve been extended through the end of this year. Not perfect, but not bad! Take ‘em while you can get ‘em!

1. The $250 above-the-line deduction for certain expenses of our beloved elementary and secondary school teachers. Yeah! They deserve a little extra help!

2. The election to take itemized deductions for local and state general sales taxes instead of the itemized deductions permitted for local and state income taxes.

3. An increased contribution limit and a carry forward period for contributions of appreciated real property for conservation purposes (may include partial interests in real property).

4. An above-the-line deduction for your qualified tuition and other related expenses.

5. This one’s BIG! URGENT- The provision that permits taxpayers aged 70 ½ or older to make tax-free distributions to charities from their Individual Retirement Accounts (IRA) in amounts up to $100k per tax payer per tax year. In addition, those individuals will be allowed to treat their IRA transfer to charitable organizations during January of 2011 as if it was made back in 2010. Retro is good! Talk to your tax advisor today!

6. The treatment of any mortgage insurance premiums as a deductible of qualified residence interest and the exclusion of 100 percent of the gains on certain small-business stocks.

7. Retro-refrigeration news: The energy efficient appliance credits may apply but they will be in new amounts and with some new requirements.

8. The Code Sec. 25C credit for energy-efficient improvements made to existing homes. Reinstating the credit as it existing prior to the passage of the American Recovery and Reinvestment Act. The standards for which property is eligible under Code Sec. 25C have been updated to reflect improvements in current energy efficiency standards.

That’s the retro news and the tax-saving views from here! The clocks have been set back for a little bit so check with your tax pro and find out which way to go. The list above is far from complete but these are all tax-saving opportunities you should be aware of. Chat with your advisor or give me a call!

Understanding how to use the tax rules to your advantage is what I teach my students in a variety of programs. Find out more about our coaching programs and let’s Axe the Tax from your life! I’ll cover more on the tax changes soon but move quickly, some of these tax savings are only good for January 2011! Here’s more info on tax extensions.

Have a prosperous day!

Gabby Huguenin
Wealth Coach
208-263-7202

Know the Rules – Thoughts on Savings, Debt, and Taxes

Know the Rules
The Arabs have an ancient proverb that affirms:

He who knows not, and knows not that he knows not is a fool, shun him

He who knows not, and knows that he knows not is a student, teach him

He who knows, and knows not that he knows is asleep, wake him

He who knows and knows that he knows is wise, follow him

This proverb fits well with our belief system at Wealth Classes Coaching. We believe that it is good to have help from financial planners, CPAs, brokers, bankers, etc. but we believe it is even more important that you learn about the world of finances. Nobody will ever care as much about your money as you will. You cannot delegate that attitude.

If savings is just delayed spending here is what I have done with my money:
I look at money as a circle and it goes round and round to make up a sum total of 100%. If you take 100% and divide it out into the following categories I think you may be happier over the long run:

1.    10% to giving
2.    10% to emergency fund
3.    10% to fun fund
4.    10% to long term investments and with in that
a.    3.33% to high risk high reward
b.    6.67% to low risk secure safe investments
5.    10% to debt elimination
6.    50% to monthly living expenses such as mortgage etc.

Rules change and in order to get the maximum benefit you must continually educate yourself on what is changing and how to maximize change to your advantage.

Believe it or not…

1.    You can invest your way out of debt
2.    You can take advantage of the tax laws in the USA
3.    You can take advantage of tax free growth environments
4.    You can take advantage of coaching and mentoring environments that keep you informed on how to manage your money

Have a prosperous day!

Gabby Huguenin
Wealth Coach
208-263-7202

Are you giving your Cash to the IRS again this year?

A wise friend just told me yet again “Gabby, just focus on the cash.”

Specifically she said: have the systems in place for the cash to continue to come in and it will continue to do so.

Oh, and one other big point – Go after the one that will bring in a stream of consistent cash now.

Being that I am a master of certain systems, you the readers here in this scenario can actually gain something of value here so let’s cut to the chase:

What is a way to redeem and recoup cash right now that you can delegate to a Wealth Team advisor / member?

Let us Axe The Tax!

I heard that today is the biggest shopping day of the year.

(Well supposed to be the largest shopping day of the year.)

If the IRS isn’t one of the stops when shopping online or out at a “real” place that you’d like to be swiping your debit card, or spending your vat of cash with, than rally your ear, dear one. What does this mean? Well, we don’t have to totally bore you with detail down to the code, but you do need someone on your Wealth Team who does have that code in their humble abode, so you don’t get snowed!

There are some major potential tax savings questions we could ask over a cup of cocoa

Do you have the right record keeping systems in place?

Are they current accurate systems?

Do you know your numbers?

Do you the right tax planning / bookkeeping / CPA in place?

Do you have the right entity structures in place?

Do you have a current profit and loss statement for each business you have in place?

The answers to the above questions can make for a great new year.

When you have the right record keeping systems in place, they are current, accurate and you know your numbers, you can have your bookkeeping staff educated ** with the information on how your CPA wants information plugged in your profit and loss statement and pulled to send to them, and the documentation you are going to need to support your tax deductions for the year. Typically you get the major logistics of this set up the first year and then annually review and update.

**Educated note above: Each time you take time to educate staff on something that is repetitive that may need to be explained to over and over again in case of turn over etc… do a procedures manual in audio and written format, it’s a pain the first time but a life saver over the long run – 208-263-7202 ask about the procedures manual Connector Call.

It meant the difference between a 28% + tax bracket and an average less than 15% for our students.

THIS CAN BE YOU

THIS SHOULD BE YOU

Give yourself a Christmas Bonus Come Early

That lucky 13% average difference that is recouped and back in your pocket can be used for many other exciting things to be explored next time…

Remember! Let’s legally axe the tax and the Team Work Makes the Dream Work – Over and out.

Gabby Huguenin

Legacy Wealth Building, LLC