Jacksonville CPA | The best people
So hello again and welcome to the podcast. This is brandon Mac aura, your host. I am the owner and founder of Mineva, a, a Jacksonville accounting consulting tax firm. So, um, if you have a Jacksonville CPA that, uh, is not being proactive, is not helping you achieve your financial goals, then please give him an neighbor call. We’re a different kind of an accounting firm. We’re a membership only accounting firm, um, where we, we help businesses achieve their goals. We to help you find out your why. We talk about things that maybe another Jacksonville CPA would not talk about. Of course, we’re not a Jacksonville CPA or Jacksonville accountant and we’re, and we’re focused on small business owners. We’re not the traditional CPA firm. Uh, we’re focused on small business owners and uh, we can do to help them achieve their goals. So, um, today we are, uh, we, we just got done listening to a gentleman explained why starbucks will pay less tax than I’m in the UK. Then maybe they could have if they did not. Um, if they did not do some of these structuring that, that, uh, they were taken advantage of. So, um,
you know, there are so many different ways. All of the different ways that he brought up are not viable for most small businesses in America. So he brought up, so he brought up paying debt, funding an operation and then paying interest back to the company, to the parent company that would offset any profits. So that is, uh, is not really a viable option as a small business owner with a pasture entity because you have to claim that interest in as income. Um, so, you know, just becomes a wash, you deduct it from one hand and you put it in another hand, um, and just becomes a wash. So, but, and then another thing, another strategy he discussed was taking the profit, or I’m sorry, organizing in a, a country that pays less tax and then charging the company that’s operating in a country that has a higher tax rate, charging them a franchise fee.
So that would not work and small with a small business owner. But there is a similar strategy you can use, it’s called paying your children. So, oh, I’ve used this with some of my clients. So your children have a lower tax rate, you can pay them, you can deduct it. You filed, they filed their tax return and some, some cases like uh, if if they make less than 4,000, $150 for 2018, they don’t have to file a tax return, you can claim them on your taxes, they do some, some work in some work around the business and um, you pay them and you’ve saved, you know, if you’re, if you’re top marginal rate is, let’s just say it’s, you’re all the way at the top and it’s 40 percent, 39 point six percent for 2017 and you paid $4,000 to child. So you’re going to save $1,200.
Forty percent, is that right? No, it’s going to be more than that. So 10 percent would be 400. So that would be 600 $1,600. So, you know, a nice little strategy. So you have to always, always be thinking, always be planning. You know, um, if you don’t have a Jacksonville CPA that is going to sit down and strategize with you and help you plan and make sure you get squeeze every dollar for all that it’s worth a, don’t pay any more taxes to the state or the Department of revenue. You don’t pay any more taxes than you have to, um, you know, use that money. So I’m going to do start doing this as a for my clients. But there are, if you, let’s just say we implement a tax strategy which is very easy to do it, extra strategy that saves a customer $15,000 a year, very easy to do. So then we run the numbers on,
um,
putting that money into a retirement plan for the rest of their working life. Let’s just say it’s 25 years, maybe we, we meet with the business owner that’s 40 years old and he wants to work until he’s 65. And so we said we have 20 years, 25 more years to take this strategy and put the money that we’re saving from the strategy, put it into a retirement plan, get a decent rate of interest or rate of return, and run the numbers on that, you know, very likely I don’t, I don’t have the calculator in front of me, but very likely you’re talking a million bucks. Okay? So if your Jacksonville CPA is not showing you how to make a million bucks then and keeping your same income, then please, please consider giving us a call. Set up a free consultation. So, um, there’s just so many ways that I’ve seen that people are not taking full advantage of. We’ve discussed, excuse me, we’ve discussed the HSA before the HSA. So many people, so many business owners are taking medical expenses as a itemized deduction and they’re not getting, especially in 2018 with the increased standard deduction. I mean, Laura, you have to have, um,
$15,000 plus of medical expenses. And this is not
premiums, health insurance premiums. You can deduct those if you, if you structure it properly. But we’re talking copays and different things like that. So, um, and she’s upstairs, I’m talking copays and different things like that. So you said an Hsa up, uh, you fund that Hsa, a, you take a deduction, you don’t, if you don’t have a big medical, you know, I had a client who had a surgery, he had a bunch of money in his Hsa, so he was able to pay for that, pay all of this copays and deductibles. So if you, you know, you, you may have a year, well, where you don’t have a bunch of medical expenses while start funding that puppy, you know, maybe you’re, you’re wanting to have a kid and you know, this is going to be a lot. So star funding that puppy, you know, three, three years you can, you can have, you know, potentially $20,000.
Um, so, you know, let’s just say yeah, almost seven grand. I’m so 67, 50 times three, so that’s roughly 20 grand. So, um, and that gets you a direct deduction. Direct, um, modified. It’s a called adjustments to income before you calculate your modified, adjusted gross income HSA contributions. It’s on the same level as contributing to an to an IRA or something like that. Um, and the great thing about nature, say, like I said, it rolls over and then when you become get retirement age, you can treat it as almost like an IRA. So you have to pay tax on the withdrawal if you’re not using it for medical qualified medical expenses. But once you hit retirement age, I don’t want to say it’s 65. I don’t know. Uh, I have to double check on the age, but you’re not having to worry about any kind of penalties.
So we’re, I’m, I’m very passionate about this subject. So, uh, you know, if you have a northeast Florida CPA or a Jacksonville CPA, that is, is not talking to you. It’s not mentioned. The HSA is not a helped you implement these strategies. They’re not. I’m sitting down and proactively reaching out to you and meeting with you and they don’t have your best interests in mind. Then please give us a call and set up a free consultation and we will do all we can to help you achieve your goals, to, to leave us better than you came.