Tax Shelter

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  • JT2307
    Senior Member
    • Jan 2009
    • 105

    #1

    Tax Shelter

    I have quite a few clients - that have now established their businesses - retail - and need no improvements or equipment - loans almost paid off - so write offs are at a minimum ending in healthy taxable bottom lines.
    They are asking me what to do - how do they reduce their tax liability.
    Are there any good resources that I can refer to? Looking for something in addition to putting money in their retirement account.
    Any recommendations would be appreciated.

    Thank you.
  • Lion
    Senior Member
    • Jun 2005
    • 4699

    #2
    What biz entity?

    Comment

    • JT2307
      Senior Member
      • Jan 2009
      • 105

      #3
      They are 1120 S

      Comment

      • RWG1950
        Senior Member
        • Nov 2017
        • 461

        #4
        Your post is just a little bit open ended.
        Are they looking for a way to lower their net taxable employment income or are they interested
        in some sort of tax advantaged investment "in addition to putting money in their retirement account" ?

        Comment

        • JT2307
          Senior Member
          • Jan 2009
          • 105

          #5
          They are looking to reduce their net taxable income - not looking to invest in another venture - just reducing tax liability for the current.

          Comment

          • TAXNJ
            Senior Member
            • Jan 2007
            • 2106

            #6
            see if any suggestions in link below can be recommended to consider:

            Start implementing critical strategies NOW to lower your S-Corp taxes this year. Here are 10 ways to use your business to keep more of your money.
            Always cite your source for support to defend your opinion

            Comment

            • ATSMAN
              Senior Member
              • Jul 2013
              • 2415

              #7
              Originally posted by JT2307
              I have quite a few clients - that have now established their businesses - retail - and need no improvements or equipment - loans almost paid off - so write offs are at a minimum ending in healthy taxable bottom lines.
              They are asking me what to do - how do they reduce their tax liability.
              Are there any good resources that I can refer to? Looking for something in addition to putting money in their retirement account.
              Any recommendations would be appreciated.

              Thank you.
              I have 2 or 3 clients in similar financial situation where they have excess cash and no real need to invest in new equipment. Two of them started a fully funded Defined Benefit plan because the owners and their spouses, children (involved in the business) are employees and if I recall one of them is putting away over $120K a year in retirement. You can't put away so much with Defined Contribution plans. If the owners are older (over 55), have them check into that through a qualified retirement specialist.
              Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

              Comment

              • JT2307
                Senior Member
                • Jan 2009
                • 105

                #8
                Thank you for the suggestions -

                Comment

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