Last Minute End of year Deductions

[Jeff Nichols]

So time is running out to lower my taxes next year. I've done a couple flips this year that I plan to expense the rehab costs but I was wondering if there are any other things I can do to absorb some of the taxes. I own a small painting business in addition to being on staff at a church part time leading worship. I don't have any retirement so I was considering opening either a self directed IRA or Solo 401k. From what I read that would be deductible dollar for dollar. I'm just curious what would be the best route to go?

[Dmitriy Fomichenko]

@Jeff Nichols

While you can self-directed both, IRA and Solo 401k, the latter would give you several advantages. The one that would apply to you the most significantly higher contribution limit. Yes, the contributions are tax deductible, but while IRA allows you to contribute only $6,000/yr, Solo 401k contribution limit is $57,000.