#547 Year-End Tax Strategies The IRS Haven’t Heard Of w/ Carter Cofield

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Nov 22, 2024

Explore innovative year-end tax strategies that can boost your financial game. Discover the 'December loophole' for vehicle depreciation to save big. Find out how renting out a primary residence for business purposes can lead to tax-free income. Learn about combining family gatherings with strategic board meetings to make holiday expenses tax-deductible. Plus, uncover the benefits of maximizing HSAs and tax-efficient planning for entrepreneurs—essential tips to help secure your financial future!

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ADVICE

Healthcare Planning

Secure health insurance before December 1st to maximize HSA contributions for the entire year.
Implement an HRA agreement and reimburse yourself before year-end for additional medical expense deductions.

ANECDOTE

Augusta Rule and Holiday Rental

Carter Cofield leverages the Augusta Rule and higher holiday rental rates.
He rents his primary residence to his business for board meetings, maximizing the 14-day tax-free rental income allowance.

ADVICE

Kids on Payroll

Put your kids on payroll for legitimate work, adjusting compensation based on age and work performed.
Document their work and ensure compensation aligns with their contribution, maximizing tax benefits.

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In this episode of the Main Street Business Podcast, Mark J. Kohler welcomes Carter Cofield to discuss must-know year-end tax strategies that can save you money and set you up for success. They dive into the "December loophole" for vehicle depreciation, maximizing health savings accounts (HSAs), and using Roth conversions to lower your future tax burden. Whether you're a seasoned business owner or just starting out, these actionable tips are essential for closing out the year on a strong financial footing.

Here are some of the highlights:

Mark and Carter discuss the tax benefits of renting out a primary residence for business purposes, emphasizing the $14,000 tax deduction and tax-free income potential.
Mark comments on the current market trends, including rising markets, crypto, and interest rates, urging listeners to invest in their future and business.
How to hold board meetings during family gatherings to write off travel and dining expenses, making it a tax-efficient holiday activity.
Carter highlights the importance of reviewing entity structures in the last quarter of the year, especially for LLC owners with unexpected profits.
They emphasize the need to finalize payroll amounts before year-end to avoid last-minute adjustments and penalties.
Explanation of the "December loophole" for healthcare, where health insurance must be in place before December 1 to qualify for the entire year's HSA contribution deduction.
The importance of planning and using tax savings accounts strategically to maximize tax benefits.

Need more Carter Cofield in your life? Check him out on the Melanin Money Show

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