February 1st, 2024
The meeting discussed a tax case study of a married individual with multiple residential properties in New York City, dealing with passive activity losses, distributions from the S-Corp, and missed opportunities for IRA and backdoor Roth contributions. The conversation highlighted the complexities of tax planning for high-income individuals and the importance of exploring diverse strategies to optimize tax savings. The team also explored potential strategies for maximizing education benefits for the client's college-going children.
The meeting also covered Backdoor Roth IRA strategies and education credits, with the team considering various options and implications to ensure the most beneficial outcomes for the client. They also discussed the Pre-Tax Employer Benefit Package review, emphasizing the significance of requesting and examining documentation to ensure employees are maximizing tax-free benefits offered by the company.
The team also discussed the client's financial situation, noting that the client and his wife are unlikely to meet the real estate professional criteria. They explored potential planning opportunities, taking into account the client's substantial property assets and his background in banking. The conversation also touched on the pricing and fee structure for their services, focusing on the importance of considering intangible benefits and the time it takes for clients to realize a return on investment.
February 8th, 2024
Today, Veronica led discussions on various topics related to tax planning and compliance. The group discussed the new reporting requirements for clients, including the use of separate entities and software platforms to streamline the process. They also talked about the importance of including financial reporting terms in engagement letters and the potential liability associated with it. The group also touched on the complexities and aggressive tactics involved in qualifying for the Employee Retention Credit (ERC) and the potential risks associated with such practices.
Additionally, the group also discussed the complexities of structuring business ownership for a home health care industry S Corp with two unrelated owners. They considered the suitability of partnerships for flexibility and equity distribution, particularly for unrelated owners, while also considering the benefits of S Corps for actively participating owners. The conversation also touched on the potential impact of the sunset of QBI benefits on tax planning.
Veronica and Jesse Gleaton engaged in a strategic discussion about the need to proactively identify new opportunities for clients, particularly in the context of potential changes in tax laws and regulations. They stressed the importance of staying ahead of the curve and offering value-added services to clients as their businesses evolve, highlighting the potential impact of changes in tax laws on estate planning and the need for proactive client advisory services.
The group also discussed tax planning strategies for retirees, including the benefits of selling stock to avoid capital gains and utilizing Qualified Charitable Distributions (QCDs) to lower taxable income. They also talked about the handling of non-cash and cash donations, highlighting the responsibility of donors to provide fair market value breakdowns and keep receipts. Throughout the conversation, they stressed the importance of educating donors and placing responsibility on them for accurate reporting.
February 15th, 2024
Our lab today focused on financial and tax strategies, where Veronica and Nicholas examined a client's tax return for savings opportunities, including the Augusta rule and cost segregation for rental properties. They discussed the client's plans to sell their businesses and the tax effects, Medicare and Social Security impacts, and questioned the valuation of S-Corps and high self-rental rates.
Retirement planning was explored, including simple IRA and 401k options, C corporation advantages, and the 1202 gain exclusion, emphasizing early strategic planning for estate and payroll taxes. The discussion also covered tax and retirement strategies, with emphasis on capturing savings at higher rates and considering Health Reimbursement Arrangements (HRA) and maximizing Schedule C contributions to navigate discrimination rules. The challenges of retirement planning across multiple entities were highlighted.
Technical issues arose in reviewing returns, underscoring the need for system improvements and clearer instructions. Partnering with iTaxPlan for specialized strategies and the process for uploading returns, using either the Tax Lab or iTaxPlan, were discussed, stressing the importance of clear guidance for these processes.
February 22nd, 2024
The meeting today addressed various aspects of tax planning and client financial strategies. Veronica Herrera introduced new features designed to streamline the tax return process, while Jeff Wolf reviewed a high-earning attorney's tax return, highlighting specific deductions and expenses and overcoming technical issues to proceed with the discussion.
The team evaluated tax considerations such as S corporation status in New York City, tax strategies including the Augusta rule, and whether to opt for an S-Corp or C-Corp based on the attorney's tax bracket and the potential impact on the Pass-Through Entity Tax (PTET). The discussion also touched on the level of urgency, complexity, and risk of different plans, along with pricing strategies for tax plan implementation, including one-time and monthly advisory fees.
Concluding with an in-depth look at a client's tax situation, the team considered recommending amendments to past returns and emphasized the need for accurate and timely decision-making to maximize potential savings and correct errors. The meeting offered a thorough exploration of tax planning and financial strategies, underscoring the importance of detailed analysis and strategic advice.
February 29th, 2024
Today's tax lab focused on tax-related issues, including the tax relief bill, tax planning, and client engagement, highlighting the necessity for caution due to potential legal changes and the significance of strategic decisions amid evolving regulations. The discussion also touched on the challenges of juggling tax preparation with planning duties, noting the advantages of prioritizing tax planning for enhanced profit and compliance.
Specific client cases were examined, covering various advisory approaches, service pricing, and interactions with clients preferring to manage their tax strategies. The conversation addressed the risks of advising without comprehensive knowledge of a client's financial background.
Additionally, the team reviewed the tax planning process and client presentations, stressing the importance of setting realistic expectations and optimizing the time spent on tax plans to ensure profitability. Strategies for effectively introducing tax plans to clients, enhancing sales presentations with personalized content, and leveraging tax return meetings to offer more services were also discussed.