DEFER INCOME
Employing strategies where you can defer some of your taxes for
a long time, can provide savings that are substantial. A retirement
plan is a perfect example. "Maximizing 401k contributions
reduces taxable income and defers taxes until retirement.
Depending on your employer's contribution match, this could
also mean free money beyond tax savings" says Sankar.
IT'S A
FAMILY AFFAIR
Over 30% of businesses in America are small businesses,
and there are amazing opportunities to leverage your family
business for tax savings. Filing jointly with a spouse may
provide greater savings on Section 199A where up to 20% of
qualified business income (QBI) may be deducted. Employing
children in the family business can also have many benefits.
For example, a child may be employed for bookkeeping and
compensated to a salary threshold of $10,000-$12,000. That
same salary could see exponential growth if it's placed into a
Roth IRA in the child's name.
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