October 3rd, 2024
This week's tax lab, led by Veronica Herrera, focused on reviewing a tax plan submitted by Nicole Johns for her client, who owns an S Corporation and multiple rental properties. Key discussions included the importance of putting the client on payroll to maximize tax benefits, strategies for reducing self-employment taxes, and leveraging retirement plans like a solo 401(k). The group also considered additional strategies such as implementing the Augusta rule, an accountable plan, and health insurance deductions. Nicole plans to pitch this tax plan to her client soon, and the session ended with a focus on ensuring a 300% return on investment for the client.
October 10th, 2024
During the Tax Lab session, Veronica Herrera and Courtney Holness discussed several tax strategies for a client who owns multiple entities, including S Corps, partnerships, and LLCs. The client primarily operates real estate investment companies and faces challenges with zero taxable income due to cost segregation strategies and losses from his real estate investments. Key topics included retirement planning, such as setting up a backdoor Roth IRA and determining salary levels for optimal tax savings. They also explored employing the client's children for tax advantages, non-cash charitable contributions, medical expense reimbursement plans, and education savings accounts. Courtney proposed a strategy to leverage cost segregation for newly purchased properties, which generated significant savings. They also reviewed state-specific filing requirements for paying the client's children and discussed compliance with entity tax returns. Veronica provided guidance on pricing the advisory and compliance services, suggesting quarterly meetings and adjusting fees based on the complexity of the client's needs.
October 17th, 2024
In this session, Veronica Herrera led a discussion involving a tax plan created by Courtney Holness, focusing on various tax strategies and pricing models for clients. Topics included handling primary residence sales, IRA withdrawals, rental properties, and accountable plans. Veronica emphasized the importance of understanding how to calculate tax savings, the implications of IRA penalties, and how to structure advisory fees versus tax preparation costs. The session also touched on pricing strategies for tax plans, including calculating ROI for clients, handling state returns, and the considerations for clients with complex tax situations such as rental properties and retirement accounts.
October 24th, 2024
In this Tax Lab session, Courtney Holness shared a success story, highlighting a recent client win achieved by effectively using the updated TaxPlanIQ presentation, which better illustrated the financial benefits of tax planning over paying IRS dues. Courtney and Veronica Herrera discussed strategies surrounding an S-corp election, potential family payroll tax savings, and the advantages of maximizing retirement and education benefits through strategies like the SECURE Act tax credits, Coverdell accounts, and 529 plans. They examined optimal advisory and compliance fees, aiming to provide ongoing value and structured client engagement.
October 31st, 2024
During this session, Veronica Herrera guided Ron Joseph and Lisa Odeja through complex tax planning scenarios. Ron discussed strategies for his client, a hairdresser, focusing on maximizing the Qualified Business Income (QBI) deduction and clarifying W-2 wage sources to determine S Corporation viability. Veronica recommended additional income-shifting tactics involving family members. For Lisa's client, a plumbing business owner, the group examined the potential to revoke an S Corporation election in favor of a more tax-efficient structure, and they discussed strategies like a family management company, home office deductions, and retirement planning options. They also explored HSA contributions and how income limitations affect Coverdell accounts.