Ted Bauman Points Out Some Key Factors Regarding The New Tax Plan

Ted Bauman

Bauman received his Bachelor of Science in Business Administration and Management Information Systems from the State University of New York at Albany. He earned his Master of Business Administration degree in Finance from Georgia State University – J. Mack Robin College of Business. He earned postgraduate degrees in History and Economics from the University of Cape Town.

Factor number one

Companies that are limited liability corporations, S corporations, and partnerships, otherwise known as pass-through entities will see a drop in income taxes. Business owners of these companies will only have to pay federal income taxes on 80 perfect of their profit. This could save companies a lot of money.

Number two

There is the potential to make money within the new plan no matter what you do for a living. For those who work for someone else, now may be the time to become a consultant in your field. Your tax attorney will explain how it can benefit you. For professionals, like doctors and lawyers, it now may be the time to separate your business into individual parts in order to save money on taxes. For those who are self-employed, have an LLC, or a small scale partnership, it may be beneficial to not use the profits to pay your salary. In return, this will increase profits and increases the amount of tax-free money that can be deducted from your taxes. Read more at ezinearticles.com for more info.

Number three

The new tax plan has eliminated some deductions that families relied on to help save them money. Only $10,000 in state and local income along with property taxes can be deducted from federal income taxes. Even though the standard deduction will be doubled, many people will still see their tax bill rise.

Number four

There are steps to take to reduce the taxes being paid on any retirement income. The first step is to open a Roth IRA. This IRA will become the only shareholder in your C Corporation that is suggested that you start.

These are only four factors that people should be made aware of under the new tax plan. Before implementing any of these tips, seek the advice of your tax lawyer. Read more on Talk Markets: http://www.talkmarkets.com/contributor/Ted-Bauman

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