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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.
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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
Understanding Trump’s Tax Proposals and Their Impact on Small Businesses | Tax Sherpa Live - 2024-07-23
In this week's Tax Sherpa webinar, we delved into the tax proposals from the current presidential candidates, focusing on Donald Trump’s plans. With the upcoming election, it's crucial to understand how these changes might affect you as a small business owner or solopreneur.
Key Takeaways from Trump's Tax Proposals
1. Lowering Corporate Tax Rates
Trump proposes reducing the corporate income tax rate from 21% to 20%, and possibly even 15%. This change primarily affects C corporations, but most small businesses in the U.S. operate as pass-through entities (like S corporations or partnerships) and wouldn't directly benefit from this change. However, lowering the corporate rate could make the C corporation structure more appealing for some businesses.
2. Capital Gains and Dividends
No specific changes have been proposed for capital gains and dividends taxes. There was a past proposal to adjust capital gains calculations for inflation, which would significantly benefit long-term investors by reducing the tax burden on the inflationary gains. We hope to see this proposal resurface.
3. Making Tax Cuts Permanent
The 2017 Tax Cuts and Jobs Act brought several significant changes, including doubling the standard deduction and eliminating personal exemptions. Trump's proposal aims to make these changes permanent. This would continue the benefits such as the Qualified Business Income Deduction, which allows pass-through entities to deduct up to 20% of their income.
4. Estate and Wealth Taxes
Trump plans to make the increased estate tax exemption from the 2017 Tax Cuts and Jobs Act permanent. This change would mean that fewer estates would be subject to the estate tax, benefiting those with larger estates.
5. Excise Taxes
One notable proposal is to tax large private university endowments, targeting institutions like Harvard and Yale, which have substantial endowments and favorable tax treatments.
6. Exempting Tips from Income Taxes
Trump has proposed exempting tips from income taxes. While this could benefit millions of workers in the service industry, the actual impact on federal revenue is minimal.
7. Tariffs and Trade
A significant proposal includes imposing a 60% tariff on U.S. imports from China. While intended to protect American jobs, this move could increase the cost of goods for consumers and disrupt supply chains.
How These Proposals Affect You
Small Business Owners and Solopreneurs
If you're operating as a pass-through entity, the proposal to make the Qualified Business Income Deduction permanent is particularly beneficial. It allows you to reduce your taxable income significantly.
Investment Income
For those with investment income, the lack of changes in capital gains and dividend taxes means current strategies remain effective. However, any future changes could impact your long-term investment planning.
Estate Planning
The proposal to maintain the increased estate tax exemption means continued tax efficiency in estate planning, allowing more wealth to be passed on to heirs without a significant tax burden.
Service Industry Workers
Exempting tips from income taxes could reduce your tax liability, potentially increasing your take-home pay. However, the implementation and enforcement of this proposal remain to be seen.
Consumers and Importers
The proposed tariffs on imports could lead to higher prices for goods, affecting your purchasing power and business costs if you rely on imported products.
Conclusion
Trump's tax proposals offer a mix of benefits and challenges. Lowering corporate taxes and making the Tax Cuts and Jobs Act provisions permanent could provide ongoing benefits for small business owners and solopreneurs. However, the proposed tariffs and the uncertain future of capital gains adjustments require careful consideration and planning.
As always, individual tax situations vary. For personalized advice, consider scheduling a session with Tax Sherpa to explore how these proposals might impact your specific circumstances.
Join us next Tuesday at 6 PM Eastern for our live session where we'll continue to break down the latest in tax strategies and proposals. Register at taxsherpa.com/live
For more insights and to access our DIY Tax Planning Templates, visit taxsherpa.com/templates.
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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Have questions? Use the form here and one of our knowledgable staff will get back to you as soon as possible.
(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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Disclaimer: The content presented on this website is intended for informational purposes only and is not tailored to the needs of any specific individual or entity. It should not be considered as financial, investment, or tax advice. The information provided is general in nature and does not account for individual circumstances or financial positions. Before making any financial or tax-related decisions, we strongly advise consulting with a qualified professional who can provide guidance tailored to your individual situation. All information on this site is provided in good faith, but we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the site. Use of this site and reliance on its content is solely at your own risk.
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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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