Year-End Tax Strategies for Entrepreneurs in 2020 | The Run Down!!

So top 10 tax strategies versus year end tax strategies. So year end deadlines and strategies. That sounds really good. Alright so here's the top 10 real quick self employment tax savings which is going to generally be an S corp deal, Real estate pro real estate, professional and rental losses. That's what we're looking for. Very big. These are the my top strategies I talk about in my books, conferences around the country retirement accounts and that's funding retirement accounts. Then the next major strategy is self directing your retirement accounts and how can you those same accounts how you can invest in what you know best and get a better rate of return and oftentimes do it tax free, not just tax deferred. We're going to talk about health care strategies and that's going to be your hsa, HR A and flexible spending account. Huge strategies there. We're going to talk about auto, auto deductions better than they've been in 30 years. This is car, truck, SUV, RVs, Carvey, RV truck, all of them, dot dot dot. We've got family on payroll. That's how do you pay your kids, your spouse? Do you, do you not? 1099 W2 how do you do it? Family pay. Next I want to really drive home the easy stuff like dining and there's 50%, 100% issues. Travel, want to always make sure we are writing off our travel expenses which is different than auto and dining. Auto dining and travel all take place on a trip. We want to always take advantage of home office and I want to throw in all the goodies and I'm going to say electronics, supplies, equipment, furniture, cameras, drones. I mean just all these little things that a lot of people forget if they have a business use. I don't want to pay taxes and buy them personally. I'm going to let the business buy them. Now I think there's actually 10, 11 or 12 there and I'm going to put startup costs here and a lot of people forget that one. So let's add these up now these are great strategies that you just say Mark, I don't even thinking of these on a regular basis and we're not even to the deadline ones. So number one, I'm going to number these 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. 12 Days of Christmas 12 strategies. All right, okay. I know I'm a dork. Okay so now let's talk about which ones have a deadline. So deadline self employment tax. Here's some important year end strategies. This is a big one. You've got to make sure your payroll number, how much you're going to take in payroll is decided upon and reported by 11521 at the latest. You also so the payroll number, how much are you going to do next? You've got to make sure on your W2 you list your health insurance premiums and any 401k contributions you might be doing in your business. Like a solo 401. Also, some of you that have been in LLC all year need to think about doing your LLC retroactively to 11 20. So I'm going to put an LLC s election and that's got to be done to 1120, which you can do and then start pay and then plus payroll which has to be done by 115 21. All of this has got to be done in the next five weeks, people. So any of these strategies, the next one is. Well Mark, I don't have an S corp, I don't have an llc, but I'm making money and self employment tax killed me this year. Well, you better have your new S Corp set up by January 1st for next year. Our fees are 150 bucks. Knock it out. Same price as legalzoom with paralegal or $800 with a tax journey. On the phone with you, planning your situation, answering any of your questions for an hour. Okay. This is all related to, in my opinion, self employment tax. You want to make sure we got the S Corp, the payroll, the W2 done right and the LLC s election and the new S corp. So any of your questions on that? That is your first really piece of deadlines, Real estate professional. Nothing before December 31st I'm going to worry about. I want you to try to buy a rental. Every year I talk about passive losses and rental losses and buying real estate as a key tax strategy. But if you haven't done it by now, there's nothing to worry about before the end of the year. Okay. Retirement funding. Oh my gosh. If you're going to do a Solo 401K, the Solo 401K has to be set up by the end of the year. Now the problem is the IRS shuts down their system sometime before December 20th. We never know when. And if you don't have your EIN for your 401k by then, it doesn't happen. So our deadline at our office is December 15th. So that's the deadline I'm going to put here. You might look it up online. Mark your line. There's no December 15th deadline. That's an internal for us because I'M telling you, I don't think it's going to happen if you don't nail it by December 15th. So solo 401ks if you want to get a write off this year, you don't even have to put in the money till next year at all. This is your solo 401k in your business. It has to be completed. And I'm going to put 12-15-kkos. That's, that's for us to help you get it done. All right, now next on retirement funding, if you're going to do a Roth conversion which is part of the backdoor Roth strategy. Roth conversion or backdoor Roth. And I have clients at every income level. Do this at a phone call today with a lawyer that said, mark, I make a lot of money as an immigration lawyer, but I don't know what I'm doing with the tax stuff. My advisor told me I can do a Roth ira. Bad advice. Everybody at every income level can do a Roth IRA through a backdoor method. So backdoor Roth IRAs have to be converted by 1231, 20. Okay, so we've got those two deadlines. SEPs you can do next year, you can fund your traditional IRA by April 15th. DB plans, it's too late for those. Okay, so there's our deadlines there. Self directing accounts. No December 31st deadline that I would worry about. Health care. All right. If you're doing an hra, you have to get it set up and do the reimbursement, which is a health reimbursement arrangement. You have to do that by 1231 20. Now I have an HRA. I use it with my family. It's a great small business strategy to get a write off for all of your medical above insurance premiums. It's in my book right up here. My book tax and legal playbook. I have a whole section on health care strategies. Read up on the hra. If you have a small business health savings accounts, you don't have to fund until April 15th. So you're okay there HRA. Don't deal with it in the next three weeks. Set it up, get it funded, done. The next one is the flexible spending account. If any of you have one at work, you have to use it or lose it. That's the rule. So you have 2750 is the maximum you can turn in your receipts for. Depends on what your work's offering. Check with the them. But that has to be done by 123120 as well. Health care is good. Auto. Oh, if you want to Buy an auto before year end. There's a good chance you're going to get a big right off that auto. If you want to buy an SUV, truck, car, motorcycle or RV, buy 1231. The write offs can be amazing. Now I'm not saying that everybody should do that. Family pay Next one. If you're going to pay your kids by the end of the year, you got to do it by the end of the year. So pay kids. Oh my gosh, this is above age 18 or 18 and older under age 18. I've got a whole chapter in my book that. Countless YouTube videos and blog articles. People, if you have kids and and you have a small business and you're not paying your kids, you're making a major major mistake. I cannot emphasize that enough and it's legitimate. I want these kids working in the business for real. So paying kids and I can answer questions on that. Has to be done by 123120 as well. If you're going to pay your spouse, you've got to make sure that he or she is paid properly with the right method. I have articles on again, paying your spouse how, where, when in YouTube as well. Pay spouse. That has to happen by 1231 20. He or she family pay dining. Nothing big there. Travel. Here's the thing. I want you to have your travel write offs for Christmas at Christmas. I want to make sure that you're having a board meeting during Christmas, board meeting at Christmas, Hanukkah, whatever you're doing and have a big shindig. And I want you to write off all your travel this holiday season if you can have some business meetings or check things out. Okay, so there. Let's summarize everything to deal with your S Corp payroll. Making sure you're saving on self employment tax. If you're making more than 40 grand a year net in your small business, there's going to probably be savings to be had. I don't care if you're in California or New York or everywhere in between. Solo 401k got to be set up in the next 15 days. Roth conversion have to do by 1231. That includes the backdoor Roth flexible spending account. Deal with that at work. Buy suv, truck, car, motorcycle or rv. Don't know. Look at your situation. Pay your spouse possibly if you're married on a board meeting at Christmas. Travel. A boom chem drop. That was good. SA.