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After Filing 50,000 Tax Returns I Discovered the Secrets to Tax Savings
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Accounting
They professional, well versed and educated to address my needs. I feel very comfortable moving forward with their services.
Business Accounting Services
Amazing service! Called right away and provided so much information and support!
Tax Sherpa by far is the best in fulfilling your tax needs. They provide top notch customer service and are always willing to help.
Neal is exceptional at the work he does and always looks out for the best interest of his clients. Serena is amazing and keeps communication line open at all time. Thank you Tax Sherpa for your service.
Tax sherpa has been quite good in helping me with my monthly accounting and understand tax saving strategies and has been very low effort on my end compared to tax services I have used in the past.
If you own your own business Tax Sherpas can really switch the extra tax burden on it head for you and save you thousands, while charging very fair fees for service.
The Tax Sherpa Mission
At Tax Sherpa, our mission extends beyond the numbers. We are passionately committed to empowering solopreneurs and small business owners by saving them tens of thousands on their taxes. We firmly believe that prosperity thrives when individuals retain more of their hard-earned money. It's not just about good business sense; it's about fostering a world where people's pockets, not the government's, hold the key to positive change.
Book a Survey Call Now
Hop on a call with one of our tax experts to go over your individual situation.
Personalized tax assessment
Expert strategies tailored for you
Potential to discover significant tax-savings opportunities
Pick any available time on our calendar to start saving today.
Our Services
Learn a little more about the core services we offer:
Tax Advisory
Unlock your path to significant tax savings with our Tax Advisory services. Our experts craft, implement, and consistently update tailored tax strategies that not only align with your unique business needs but also pave the way for maximum tax efficiency.
Tax Filings
Realize your tax savings annually without the hassle. With our Tax Filings service, we meticulously handle the paperwork, ensuring every tax advantage is captured when submitting to the government. Experience peace of mind, knowing that every deduction and saving is realized for you.
Bookkeeping
More than just numbers on a ledger, our Bookkeeping service helps you maintain a clear picture of your revenue and expenses. By seamlessly integrating tax strategies into your books, we ensure that your records not only stay organized but also accurately mirror your financial blueprint, keeping you aligned with your tax-saving goals.
About Us
Neal McSpadden,
Chief Tax Strategist
I went from owing the IRS over $1,300,000 to Zero, and in the process of fixing my own mess I discovered the hidden world of tax planning.
Over the years, I've worked on over 50,000 tax returns covering billions of client earnings and have helped save clients hundreds of millions of dollars.
What I discovered through this whole process is that:
The large companies (that can afford to pay 6-figure fees) get great tax advice.
The simple W-2 earner with no other activities end up filing for themselves or go down to the corner tax preparer office. They generally get mediocre advice, but it's good enough for now.
The people in the middle, solopreneurs and small business owners, can't afford the fees of the big companies and are unable to get good service from the corner preparers.
Those people are who we aim to serve.
Our Core Values
Our Philosophy
Our core philosophy is that the solopreneurs and small business people are the backbone of our entire society. Without them, nothing else works.
The current system that places undue tax burdens on this group needs to be changed and defunded.
Our Promise
Our promise to you is to craft an individualized plan for your individual situation. All taxes are personal, and everyone's life is different.
Our Guarantee
We guarantee you will save multiples of our advisory service fees.
When we create your custom tax blueprint we will show you exactly how much you might save based on your current circumstances.
Our Blogs
Tax Planning Secrets Revealed | Tax Sherpa Live - 2024-07-16
In this latest episode of Tax Sherpa Live on July 16, 2024, Neal McSpadden, the Founder and Chief Tax Strategist at Tax Sherpa, dives into a wide range of critical tax-related topics. This episode is brimming with actionable advice for independent contractors, solopreneurs, and small business owners looking to save tens of thousands of dollars on their income taxes each year.
Key Topics Covered
1. The Importance of Effective Tax Planning
Neal opens the session by underscoring the value of meticulous tax planning. He shares his personal journey, from receiving a $1.3 million tax bill from the IRS to mastering Wall Street tax planning strategies, which he now brings to Main Street businesses.
Key Quote:
"Your life is your own, and we want to spend our time working on behalf of whatever it is we want to work on behalf of, rather than turning that time over to the government."
2. The Magic Answer to All Tax Questions — "It Depends"
Neal emphasizes that the answer to most tax questions is, "It depends," due to the variability of facts and circumstances. He offers a compelling example of an exotic dancer who successfully claimed her cosmetic surgery as a deductible business expense.
Key Insight:
"Every tax situation is unique, so the context and details greatly influence the answers."
3. Leveraging the R&D Tax Credit
Neal delves into the complexities of the Research and Development (R&D) tax credit, explaining how recent legislative changes have impacted its potency. He also provides insights on how to navigate and utilize this credit effectively despite its limitations.
Key Points:
The R&D tax credit now requires a five-year amortization for software development expenses.
The typical credit is approximately 6%, making it less advantageous than in previous years.
4. Tax Considerations When Selling Your Business
Neal offers detailed advice for business owners considering selling their ventures. He discusses the distinctions between asset sales and stock sales, the benefits of long-term capital gains rates, and advanced strategies like Deferred Sales Trusts and ESOPs.
Noteworthy Strategies:
Utilize ESOPs for tax-advantaged sales.
Aim for 1202 treatment for potentially tax-free gains up to $10 million.
5. Real Estate Tax Benefits
Exploring the tax advantages of real estate, Neal highlights two major benefits: depreciation and cost segregation. These strategies can significantly reduce taxable income and even generate tax refunds, which can be reinvested.
Core Benefits:
Depreciation allows for substantial tax losses on paper.
Cost segregation accelerates depreciation benefits, optimizing cash flow.
6. Structured Ownership Programs (SOP)
Neal briefly touches on the Structured Ownership Program, an advanced strategy for those with high tax liabilities. This involves partnering with other entities to generate large net operating losses.
Key Insight:
SOPs fall under "exotics," requiring specific conditions to be effective.
7. Common Tax Filing Mistakes and How to Avoid Them
Neal lists the most frequent errors individuals make when filing taxes, ranging from mismatched information to missing forms. He stresses the importance of ensuring all reports match and advises avoiding scams.
Critical Advice:
Ensure names and social security numbers match official records.
Report all income accurately to prevent issues.
8. Changes in Bonus Depreciation Rules
Neal discusses the decline in bonus depreciation from 100% to 80% in 2023, noting it continues to decrease yearly until 2026. This impacts how assets, including vehicles, are depreciated.
Key Quote:
"Assets that you could depreciate aggressively in recent history are now less depreciable in the early years."
Join Us Live Next Time!
Don't miss our live sessions every Tuesday at 6 PM Eastern: https://taxsherpa.com/live
For more resources and to download our DIY Tax Planning Templates, visit: https://taxsherpa.com/templates
Parting Thought from Neal:
"Effective tax planning can relieve significant emotional and financial burdens."
Join Neal and Serena next week for more invaluable tax insights and strategies tailored for small business owners and independent contractors. Stay informed, plan ahead, and save time and money with the expert guidance from Tax Sherpa Live.
Frequently Asked Questions
Q:
What's the difference between tax advisory and just filing my taxes?
Filing your taxes each year is a necessary task, but it is always backwards looking. Tax advisory works with you throughout the year to make sure that you are on the right track when it comes to your taxes and have strategies in place to save money now.
Q:
I've heard about tax write-offs for small businesses. What exactly can I write off, and how does it benefit my business?
Tax write-offs, also known as tax deductions, are expenses that a business incurs that can be subtracted from its revenue to reduce the amount of taxable income. Common write-offs include office supplies, mileage, rent for a business location, and advertising expenses, among many others. By writing off legitimate business expenses, you can significantly reduce your taxable income, which can lead to a lower tax bill. It's essential, however, to maintain proper records and ensure that the expenses are truly business-related.
Q:
What's the difference between a tax deduction and a tax credit?
A tax deduction reduces the amount of your income that is subject to taxation, which in turn can lower your tax liability. Common deductions include expenses like mortgage interest, student loan interest, and business expenses. A tax credit, on the other hand, is a direct reduction of your tax bill. This means if you owe $1,000 in taxes and have a $200 tax credit, your tax due would be reduced to $800. Some popular credits include the Child Tax Credit, the Earned Income Tax Credit, and credits for energy-efficient home improvements.
Q:
I'm thinking of hiring an independent contractor instead of an employee. Are there different tax implications for each?
Yes, there are significant tax differences between hiring an employee and an independent contractor. When you hire an employee, you're responsible for withholding federal and possibly state income taxes, Social Security, and Medicare taxes from their paychecks. You also typically pay unemployment taxes on wages paid to employees. Independent contractors, on the other hand, are responsible for their own taxes. As a business owner, you'd provide them with a Form 1099-NEC (if you pay them $600 or more during the year) instead of a W-2, and they would be responsible for their own self-employment taxes. It's important to correctly classify your workers, as misclassifying can lead to penalties.
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(678) 944-8367
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3900 CROWN RD SW STE 16709
Monday - Friday, 10:00 am - 5:00 pm
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Contact Us
office@taxsherpa.com
(678) 944-8367
3900 CROWN RD SW STE 16709
Monday - Friday, 10:00 am - 5:00 pm
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