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Tax deferrals can be a powerful tax strategy when implemented properly and at strategic times, as demonstrated by a client who missed an opportunity that will cost them approximately $100,000 in taxes. We explain why timing your tax deferrals between high and low-income years creates massive tax savings despite common objections.

• Common objections to tax-deferred accounts include eventual taxation, liquidity concerns, and ordinary income tax rates on distributions
• Retirement accounts offer more liquidity than people realize, with loan options for Solo 401(k)s and principal withdrawal flexibility from Roth accounts
• Strategic timing of contributions and distributions between high and low tax bracket years creates substantial tax arbitrage
• Contributions to SEP IRAs and Solo 401(k)s can be made until October 15th of the following tax year
• Self-directed retirement accounts can invest in real estate and other alternative assets without needing real estate professional status
• Advanced strategies include timing Roth conversions during temporary valuation dips, potentially reducing conversion taxes by 30-40%
• Beyond retirement accounts, consider 1031 exchanges, installment sales, and charitable planning for additional tax deferral opportunities

PS. Whenever you're ready, here are some ways we can help with reducing your taxes...

Ready to slash your tax bill? Schedule your free consultation and let's strategize your tax savings together! Book now at: https://www.prosperlcpa.com/apply Or, if you still need more time, here are some other ways to begin winning the tax game...

Take our free Tax Planning Checklist & learn about what tax savings may be available for you in our minicourse at https://taxplanningchecklist.com

At the very least, get on our newsletter to gain access to free live events and exclusive insight you won't find anywhere else: https://www.prosperlcpa.com/subscribe

Send us a text

Ready to slash your tax bill? Schedule your free consultation and let's strategize your tax savings together! Book now at: https://www.prosperlcpa.com/apply Or, if you still need more time, here are some other ways to begin winning the tax game...

Take our free Tax Planning Checklist & learn about what tax savings may be available for you in our minicourse at https://taxplanningchecklist.com

At the very least, get on our newsletter to gain access to free live events and exclusive insight you won't find anywhere else: https://www.prosperlcpa.com/subscribe

The consumption tax may be your most expensive hidden tax, created when high earners spend profits on lavish lifestyles instead of tax-advantaged investments that build generational wealth. This concept affects both business owners and W-2 earners, as the tax code rewards those who reinvest rather than consume their profits.

• The consumption tax occurs when you spend all profits on lifestyle expenses, leaving nothing for tax-advantaged investments
• High-income earners who spend excessively on luxury items often struggle to implement effective tax strategies
• The IRS incentivizes business reinvestment, charitable giving, and investments in energy and real estate
• W-2 earners can access similar tax advantages through side businesses, strategic investments, and withholding adjustments
• Creating legitimate business purposes for existing activities can transform personal expenses into deductible business expenses
• Reinvesting profits gives you more control over the timing and rate of taxation
• Capital gains are taxed at lower rates than ordinary income, creating wealth-building advantages
• Consider whether your current lifestyle is financially sustainable when accounting for taxes
• Resources like "Profit First" methodology help prioritize profit before expenses
• Books like "The Millionaire Next Door" reveal that most wealthy people maintain modest lifestyles to build wealth

Send us a text

Ready to slash your tax bill? Schedule your free consultation and let's strategize your tax savings together! Book now at: https://www.prosperlcpa.com/apply Or, if you still need more time, here are some other ways to begin winning the tax game...

Take our free Tax Planning Checklist & learn about what tax savings may be available for you in our minicourse at https://taxplanningchecklist.com

At the very least, get on our newsletter to gain access to free live events and exclusive insight you won't find anywhere else: https://www.prosperlcpa.com/subscribe

Entrepreneurs often hesitate to withdraw money from their LLCs due to tax concerns, but in most cases, there are no additional tax implications when taking out profits. The tax treatment of withdrawals depends entirely on how your LLC is classified for tax purposes - as a disregarded entity, partnership, S-corporation, or C-corporation.

• Single-member LLCs (disregarded entities): Taking money out is simply an owner's draw with no tax implications
• Profits are already taxed on your personal return whether you withdraw them or not
• For partnerships: Distributions to partners typically have no additional tax consequences
• Guaranteed partnership payments are taxed as ordinary income and subject to self-employment tax
• S-corporation owners must pay themselves a reasonable salary subject to payroll taxes
• Distributions from S-corps can provide tax advantages but require proper planning
• C-corporations face "double taxation" when paying dividends to owners
• Always transfer money to personal accounts rather than paying personal expenses from LLC accounts
• Maintain proper separation between business and personal finances to protect your liability shield

For more help with tax planning, visit taxplanningchecklist.com for our free mini-course or go to prosperalcpa.com/apply for a free strategy session.