A Solo 401(k) or Individual Solo 401(k) is a special type of retirement plan for small business owners who don’t have any W2 employees on payroll (besides their spouse). As a tax planner and business owner myself, the solo 401(k) is one of my favorite tools to incorporate. In this guide, we will unravel how solo 401(k)s work, spotlighting their unparalleled benefits and how they can transform your tax and financial plan. The Solo 401(k) Versus SEP IRA Debate Before we dive in, one of the most common questions I get from business owners is “Why don’t I open

Setting up your first rental property comes with a barrage of decisions, one of which is whether to set up a Limited Liability Company (LLC) for your property. This question often plagues newcomers in the real estate investment sphere, leading to a mix of advice and misconceptions. In this article, we’ll explore the intricacies of establishing an LLC for rental properties, diving into the pros and cons to help you make an informed decision. Debunking the Tax Misconception A common myth surrounding LLCs is their supposed tax benefits for rental properties. Contrary to popular belief, an LLC does not

The Pass-Through Entity Tax (PTET) is an entity-level income tax that business owners can elect to take to deduct their state taxes as a business expense and circumvent the $10,000 SALT cap. In 2017, the Tax Cuts and Jobs Act (TCJA) was passed, becoming the largest tax overhaul in modern history. One controversial aspect of the TCJA was the capping of the State and Local Tax (SALT) deduction at $10,000. Additionally, the standard deduction doubled. In 2024, for example, it’s $14,600 for individuals and $29,200 for joint filers. This means that even if you have $10,000 in state and

ESG (Environmental, Social, and Governance), Socially Responsible Investing, and other Values-Based Investing approaches are gaining prominence in today’s modern investment landscape. Investors now have greater flexibility than ever before to tailor their investment portfolios to align with their personal beliefs and values. According to a 2022 Gallup poll, nearly half of investors express interest in ESG and other forms of values-based investing. As the owner of an investment advisory firm, I’ve observed a growing number of clients proactively seeking ESG or values-oriented portfolios compared to previous years. So, what’s all the hype about? What is Values-Based Investing? Before delving

When you’re filing your tax return and discover that you owe taxes, you may wonder if you’ll face penalties or interest, or if you’re in trouble with the IRS. As with most financial matters, the answer depends on various factors. In this guide, we’ll break down tax underwithholding and help you understand whether you should be concerned about it. What is Tax Underwithholding?  Many taxpayers are familiar with the concept of receiving a tax refund, where you’ve overwithheld or overpaid your taxes throughout the year, and the IRS returns the excess money to you in the form of a