Tax Advice for the End of the Year
I know it's July but the end of the year will be upon us before we know it. You may find yourself struggling to spend some profits to lower your tax liability. There are a few tax advantaged investment vehicles you can use listed below. Now is the time to start tax planning if you haven't already begun. If you need help or more explanation of anything send me a message!
Traditional IRA ($6,000 or $7,000 if age 50 or older)
Solo 401k ($57,000 or $63,500 if age 50 or older) Please note you CAN borrow money from this tax advantaged vehicle
SEP (25% of your net earnings from self employment up to $61,000)
SIMPLE IRA ($14,000 or $17,000 if age 50 or older)
401k (20,500 or $27,000 if age 50 or older) Please note you CAN borrow money from this tax advantaged vehicle
We all know that the best tax advantaged vehicle is real estate by far. Keep these options in your back pocket should you find yourself in a pinch come December 1st.
Accredited investors get to play by different rules. People are considered accredited investors if they meet one of the following requirements;
1.) Net worth over $1,000,000
2.) Income over $200,000 if single, or $300,000 if married in each of the two prior years with a reasonable expectation to earn the same for the current year
There are two tax saving vehicles I'm fond of for end of year (I have to spend this or pay too much in taxes) moments.
1.) Real Estate Syndication (advertised on BP quite often)
2.) Oil and gas partnerships - a little diversification into commodities can offer up to a 92% deduction
I'm new into real estate investing. I'm one of those guys that read the books for 10 years and never pulled the trigger. I know many of you are probably anti stock market and that's okay. I definitely understand why you might feel that way. I don't care to try and change your mind. If what you're doing is working then keep working it! I personally choose to be real estate heavy while taking every tax advantage I can get. If you find yourself wanting to diversify out, or needing some tax shelter, don't hesitate to reach out!
If I've missed something or messed something up, please let me know! We all want to make sure we are getting the most accurate information possible.