June 18, 2019

Minimize Capital Gains Taxes to Get a 0% Tax Rate

Business owners pay their fair share of taxes. Among all the hundreds of taxes they pay, today we’re going to focus on capital gains tax. This tax is levied on the net gains you make when you sell capital assets like stocks, businesses, land, works of art, etc. However, there are ways to minimize capital gains taxes allowing you to work toward that elusive 0% tax rate.
June 13, 2019

20 Ways to Reduce Taxable Income: A Business Owner’s Guide

There’s perhaps no expense more frustrating to business owners than income taxes – the amount of money you pay to the IRS. I receive more calls from business owners asking me how to minimize their tax bills than anything else. Therefore, I want to go over 20 different strategies, or ways, to reduce taxable income for the business owner.
June 11, 2019

Can You Avoid the 10% Early Retirement Penalty? 10 Possible Ways

Not surprisingly, people want to make sure they have the income to last throughout their lifetimes. If you plan well, you could theoretically retire at age 55, 50, 45 or sooner. Maybe you’ve sold your business for profit, you’ve maximized your retirement account contributions for years, you’ve invested in non-qualified accounts, and you own multiple rental properties. At that point, you could take a blended distribution from various accounts and investments so that your money continues to grow tax-sensitive to you. However, if you take distributions from your retirement accounts before age 59 ½, many times, you will owe the IRS a 10% early distribution penalty. Sometimes, though, the government will waive that 10% early retirement penalty if certain conditions are met.
June 7, 2019

How to Make Extra Income on the Side While You Grow Your Business

Owning a business is hard work. Budgeting your personal cash flow around your business’s expected revenue can be even harder. Oftentimes, entrepreneurs forfeit their owner’s draw or their paychecks to make sure the business has enough cash in its budget. Sure, you can employ your spouse or hire your children from your business. However, if your business is struggling or if you need to keep your resources in your business instead of in your pocket for a time, you may need fast cash. Thus, I want to give you four ways to make extra income on the side while you’re growing your business.
June 4, 2019

What Age Should Business Owners Start Taking Social Security Benefits?

As you may be aware, Social Security (or the trust in which Social Security benefits go) will probably be insolvent or in default before those of us currently in our 30s and 40s reach retirement age. In fact, Barron’s states that “Social Security benefits will start to exceed the program’s costs in 2020, and the program will deplete its $2.9 trillion reserve fund in 2035.” Now personally, I don’t believe the government is going to allow Social Security to go bankrupt. However, I do believe that Full Retirement Age may be pushed back to 70. I also anticipate a Social Security tax increase across the board for all Americans. Yet, now is not the time to panic and start taking Social Security benefits early just because you’re afraid of losing any and all benefits in the future. Instead, it’s time to learn the facts about Social Security benefits and when […]
May 31, 2019

Is it Time to Revisit Your Budget? 12 Events That Make it A Requirement

In How Much Should I Pay Myself from My Business, I advised business owners to build a personal budget to determine how much money to take home from their company’s proceeds. Yet, life happens. Sometimes, you have to adjust your income to cover increased or unexpected expenses. Other times, you may not need to take home as much income because you’ve paid off some of your monthly expenses. Budgeting is not a one-and-done exercise. It’s an ongoing process that you must reevaluate occasionally so that you and your financial advisors can determine the best tax planning strategies for you. So, just how often should you revisit your budget?
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