The short list of legal income tax avoidance tools

Posted on 2 CommentsPosted in Financial Planning, Tax Planning

Most of the legal tax saving strategies used successfully by individual taxpayers in the U.S. stem from just 12 tactics. These are frequently observed in tax practice and confirmed by the IRS1 as the most expensive to the government. All of these avoid federal income tax: Earnings of nonprofit business organizations Qualified employee benefits Deferred compensation […]

Fantastic opportunity to save on taxes and insurance

Posted on Leave a commentPosted in Health Insurance, Small Business, Tax Planning

Great news for health care costs: Small businesses can immediately combine the benefits of the the recent December 13, 2016 federal health care law with Trump’s new January 20, 2017 executive order to save money on health insurance and taxes. The new law reverses prior IRS positions to give us new opportunities for savings. The […]

Pros and Cons of a One Person Pension Plan

Posted on Leave a commentPosted in Retirement, Small Business, Tax Planning

This post summarizes the pros and cons of a one person private pension plan (sometimes called a “Solo Defined Benefit Plan”) for a successful small business owner as opposed to other self-employed retirement savings options. Pros Potentially larger immediate tax deduction; perhaps in the range of 3 times to 5 times larger than a 401(k) […]