Jacksonville CPA | Saving Your Tax Money
Hello and thank you for listening to the podcast. This segment, we’re going to talk about ways to save taxes. This is brandon. I’m the president of Mineva attacks and accounting firm based in Jacksonville, Florida. So if you have a CPA, a Jacksonville CPA that you are frustrated with, then give Mineva a call and we’ll be glad to meet with you. We offer a free consultation and free month, first month of service, sorry for a dollar when we will donate that dollar to charity. So a lot of people, um, have a skewed view on taxes, especially if you haven’t been in business very long. They think you can do these magic, a magic tricks and have them pay nothing in taxes. I’m a good CPA. In Birmingham, Alabama. Greg crabtree wrote a book called simple numbers. He says, the amount of money that you’re paying in federal income taxes is a good indicator of the success that you are having financially.
And I agree with them. Now there are ways to save money and taxes, um, have things structured optimally, but there becomes a point to where you just have to pay the man you have to pay your fair share of people. Unfortunately, don’t always want to hear that, but it’s the truth. So let’s go over some more obvious ways to save in taxes. So as a small business owner, you definitely recommend you set up some sort of retirement plan. Okay? Uh, you have all kinds of retirement plans available to you, um, just depends on your business type, how many employees you have, how much money you want to put away, um, but you have and how your business is structured. You have a sep account, self employed pension account, and you can contribute a round $50,000. I don’t know the exact numbers right here. A lot of them change every year. Um, and you can also contribute to a traditional IRA as long as you have earned income. And if you are married, you can contribute to a traditional IRA for your spouse. So for tax year 2018, I believe that number you can contribute up to 13,000 between the two of you, um, and a direct right off,
know you can have a 401k simple IRA. There’s just so many different plans out there you can choose from. But I definitely recommend you set something up and give us a call. I don’t know, a Jacksonville CPA out there that offers what we offer it Mineva. Uh, it’s called the automatic millionaire plan. Come in, figure out your goals and we’ll work with you to set up an automatic millionaire plan. Uh, an automatic millionaire does not happen overnight, but the journey of a thousand miles begins with one step. So you have to take the first step to come in to Mineva. Um, you may need to fire your Jacksonville CPA, come into a neighbor and let us help you with these things. So, um, so many people full of see, um, they, their accountant tells them where their Jacksonville CPA tells them they’re going to owe a lot of money in taxes. And so they say, well, what can I do? And they say, well go buy some new equipment, right it off business owner goes and buys new equipment that he doesn’t need so we can write it off. So this is like if you were at the 30 percent tax bracket, this is like spending
$70 so you can get 30 so you’re spending $70 on something that you don’t need so you can save $30, just doesn’t make logical sense. Now if you need a new piece of equipment, by all means buy one and take the right off. But don’t just buy stuff just so you can have a deduction so you can save in taxes. You’re shooting yourself in the foot. Okay. I would much rather keep $70. Pay The government 30 than to spend 70 that I don’t need to spend so I can save 30 so I can keep 30. next I’m talking about the structure of your medical insurance plan. I recommend a couple of different ways to take medical expense deductions. A, the most common is take it as itemized deduction, but with the increase in the standard deduction in 2018 as well as the phase out limit of seven and a half percent of your adjusted gross income. Most people would not get to take the deduction for health insurance, medical copayments, but there’s a way for small business owners to take advantage of this deduction and fear. Jacksonville CPA is not telling you these things. Then blue’s give them a Neva a call and we will help you out. So what I would recommend is to purchase a high deductible health insurance plan. And that just means that your deductible, you’re, you’re basically going to self insure for the small things. And if something goes wrong, catastrophic Lee, uh, you get in a severe accident and you have to spend months and months in the hospital or you get some dread disease and you have to spend hundreds of thousands dollars.
You’re covered. But for the small things, for the sniffles and the broken bones, you’re going to self insure that. So for the regular regular doctor checkups, you’re going to ensure that yourself. And here’s how that would work, you need to get a high deductible insurance plan and it would be classified as self employed health insurance for many of my customers there as corporations. And so you would need to set this up as a company plan paid out of the company and then include the value of that health insurance. So the health insurance for the year, it was a thousand dollars a month, 12,000 for the year, you would need to include $12,000 as a fringe benefit on the shareholders w two. And then we can take a direct deduction of that $12,000 on the 10:40 and also as part of a high to high deductible plan, you need to open up an hs, a witch, functions very similarly to an IRA so you can contribute money into that account and get a tax write off.
And then you use the money from the HSA to pay for qualified medical expenses. So prescriptions, copays, glasses, and chiropractor visits. Uh, any type of medical device or service that you need, you can use these funds from the HSA. So if you have a family plan, I believe the Max contribution is almost $7,000 per year and you do not have to use all of that money in one year so you can let it roll over. The good thing about the Hsa is if you still have an amount in here at retirement, uh, I believe it’s actually at age 70, then it functions similar to an IRA and you can take this money out and use it for anything you desire. You don’t have to pay for qualified, you don’t have to use it on qualified medical expenses. So it becomes kind of like an additional IRA. So if you’re Jacksonville CPA has not given you the strategy and please give them a call, we’d be glad to help you out and give you the things you need to help you achieve your financial goals. I think that’s it for this segment. Um, my name is brandon, president of Mineva.
Come by and see us for our free consultation and um, we may be able to get your first month of service for a dollar and then we will in turn donate that dollar to charity. We appreciate you listening. See you next time.