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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

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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

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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.

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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

Depreciation recapture can create substantial tax liabilities when selling business assets or real estate, even when selling at or below your original purchase price. We explain how this overlooked tax works and provide strategies to completely eliminate or reduce the tax impact.

• Different types of property face different recapture tax rates – building structures (Section 1250) capped at 25%, personal property (Section 1245) at your ordinary income rate
• Cost segregation studies create larger future recapture tax liabilities that can surprise unprepared sellers
• Installment sales require immediate payment of all recapture taxes even when cash is received over time
• 1031 exchanges can defer recapture taxes when properly structured with equivalent replacement assets
• Creating losses from other properties through cost segregation studies can offset recapture taxes
• Suspended passive losses from prior years can be used to offset recapture income
• Strategic timing of other business expenses can help minimize the tax burden
• Inherited property receives a stepped-up basis, eliminating depreciation recapture concerns

If you want help mitigating taxes from depreciation recapture events and creating lifelong tax savings, visit ProsperalCPA.com/apply

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

Trusts serve as powerful wealth preservation vehicles for the affluent, providing control, protection, privacy, and potential tax savings. We explore the fundamentals of trusts and how they can be strategically used for estate planning and asset protection.

• Most beneficial for those planning their estates, individuals with risk exposure, entrepreneurs, business owners, and real estate investors
• Revocable living trusts help avoid probate and mitigate estate taxes when inheriting assets
• Irrevocable trusts remove assets from your estate for asset protection and tax minimization
• Grantor trusts (intentionally defective grantor trusts) allow assets to exist outside your estate
• Charitable trusts create significant tax savings, especially during major capital gains events
• Different professionals may recommend different trust solutions for the same situation
• Proper trust structure can help preserve multi-generational wealth

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

Tax planning doesn't have to consume your time or require expertise to be effective, especially for professionals who feel overwhelmed or too busy to implement complex strategies.

• Retirement accounts offer substantial tax deferral opportunities with minimal ongoing effort
• You can contribute to tax-deferred accounts after year-end but before filing taxes
• Liquidity concerns can be addressed through strategic timing and borrowing options
• Advanced charitable planning creates massive deductions for those earning $500K+
• Oil and gas investments provide truly passive losses that offset all income types
• Distributions from oil and gas investments receive favorable tax treatment
• Simple systems and professional support capture legitimate deductions without constant vigilance
• S-corporation salary optimization can save six figures with proper guidance
• Home office deductions and accountable plans require minimal effort but deliver real savings

Visit prosperalcpa.com/apply to learn how we can help simplify your tax planning. Take our free mini-course at taxplanningchecklist.com.

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

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Tax planning timing is crucial for maximizing wealth and minimizing your tax burden, with most people waiting too long and missing significant opportunities for savings and financial growth.

• When to start tax planning if you have business income volatility or uncertainty
• How one-time events like RSUs, capital gains, or inheritances should trigger planning
• Why waiting for tax law changes like bonus depreciation can cost you significantly
• Complex tax strategies often take months to set up properly with multiple professionals
• Immediate tax savings by reducing W-2 withholdings or quarterly estimated payments
• Family-based strategies need time for proper implementation during the tax year
• Advanced planning reduces stress and prevents last-minute poor decision making
• Earlier implementation means more time for investments to generate both tax advantages and economic returns
• Hiring the right tax professional early gives you time to change if needed

Visit prosperalcpa.com/apply or taxplanningchecklist.com to learn more about implementing these strategies and taking control of your financial future.

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Tax planning for stock portfolios offers significant wealth-building opportunities when approached strategically. We dive deep into how different types of portfolio income are taxed and explore advanced strategies to minimize tax impact while maximizing growth potential.

• Understanding the difference between portfolio income (stocks, dividends, capital gains) and passive income (real estate)
• Short-term capital gains are taxed at ordinary income rates up to 37% plus potential 3.8% net investment income tax
• Long-term capital gains receive preferential tax rates (0%, 15%, 20%) depending on income brackets
• Qualified dividends receive the same favorable tax treatment as long-term capital gains
• First $47,000 of long-term capital gains ($94,050 if married filing jointly) can be completely tax-free
• Capital losses can offset capital gains from any source, with excess losses offsetting ordinary income up to $3,000 per year
• Tax-deferred accounts like 401(k)s eventually tax all withdrawals at ordinary income rates, not capital gains rates
• Strategic timing of capital gains can dramatically reduce tax liability
• Using ordinary business losses to offset capital gains from portfolio liquidations
• Qualified Opportunity Zones can defer, reduce, and potentially eliminate taxes on capital gains
• Utilizing tax-free vehicles like Roth IRAs and borrowing against appreciated stock positions
• Taking advantage of years with low income to realize gains at 0% tax rate

To learn more about implementing these strategies for your specific situation, visit prosperLCPA.com/apply or taxplanningchecklist.com to get on our list and be invited to free educational events.