The Backdoor Roth IRA Strategy

Saving for retirement is an essential part of any financial plan—but for high-income earners, accessing the benefits of a Roth IRA can be frustrating due to IRS income limits. Fortunately, there’s a legal workaround known as the Backdoor Roth IRA strategy. This approach allows individuals who earn too much to contribute directly to a Roth…

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The Augusta Rule — Renting Your Personal Home

As a business owner, you’re always looking for smart, legal ways to reduce your tax burden. One lesser-known but powerful strategy lies in your own backyard—literally. It’s called the Augusta Rule, and it allows you to rent out your personal residence to your business for certain events, deduct the expense on your business return, and…

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Why is my distribution being taxed as Capital Gains?!

If you’re a shareholder in an S Corporation, you might be surprised—or frustrated—to find out that a distribution you thought was tax-free is now showing up as capital gains on your tax return. What’s going on? Let’s break it down. The Issue: Basis Determines Taxability In most cases, distributions from an S Corporation to a…

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Shift Income to Save on Taxes with Child Wages

If you’re a business owner with children, you may be missing out on a valuable—and IRS-approved—opportunity to shift taxable income to a lower tax bracket. By employing your child in your business, you can reduce your overall tax liability and teach them the value of earning money at the same time. Why It Works: Two…

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Mixing Business & Pleasure Travel

Ah, the joys of combining business and pleasure—the ultimate two-for-one deal, right? Well, not exactly. While you can enjoy the benefits of mixing work with fun, it’s important to understand how the IRS distinguishes between business and personal travel. With some planning and recordkeeping, you can take advantage of valuable tax deductions without stepping outside…

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Employee or Business Owner?

For dental professionals considering a career shift, the choice between being an employee or a business owner comes with significant tax implications. While owning a practice or business can offer greater tax deductions, retirement savings opportunities, and financial flexibility, it also comes with additional responsibilities like self-employment taxes and operational costs. Understanding the tax advantages—such…

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Tax Benefits of Rental Real Estate

Real estate can be a powerful tool for building wealth while offering unique tax advantages. From depreciation deductions to rental income offsets, investing in rental properties can help reduce your tax burden and improve cash flow. However, the rules around real estate taxation can be complex, with depreciation schedules, passive loss limitations, and financing strategies…

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