Hi, is your group open to using a Defined benefit plan? (qualified plan that allows contributions higher than the typical 401(k) in some cases)
A cross tested new-parity pla can be funded in such as way as to allow contributions that are actuarially drive gto provide a certain retirment benefit .... and many times allow for much higher contributions that they basic 401(k) ploan
These age based (better said, how much time do I have left to retire with a given benefit) type plans are appropriate when the business wants to provide a certain group of employees, such as the business owners and key employees, higher contributions than it does to other employees.
I this same category are also Tiered Plans - you might want a tiered plan over age-weighted plans because they can have an equal
rate to all participants in the same category or tier. Again, this works well for certain key employees among the business owners so they can get theses higher plan contributions.
Other than getting the group to look at these special retirement plan designs, side businesses that may one day be profitable, they provide for legitimated losses in the first few years, ...
Charitable contributions, of course
Ahh there you are Hello
There's tax loss harvesting ... if you do have investment losses in say individually owned investments, rather than just hanging on sell and reinvest in something different. You can deduct up to $3000 a year of investment losses against your ordinary income
529 plans for the children's education don't provide any Immediate gratification, but if you're going to fund education, let the dollars grow tax deferred and then pull them out tax free (and there is a STATE income tax deduction is you use GA's 529 plan)
For retirement the ROTH IRA does the same ,,, again no immediate gratification, but grows tax deferred and can be pulled out tax free at retirement ... can be very powerful when you're about to hit that next tax bracket for the year (again, DURING retirement) shot down the qualified plan dollars and pull the rest of that year's retirement from the roth
Is your group a Professional Corp?
If so, in Ga you can file for S Corporation status, this election allows for the entity to have pass-through tax treatment. With pass-through taxation, the income to the entity is not taxed at the entity level; however; the entity does complete a tax return. The income or loss as shown on this return is “passed through” the business entity to the individual shareholders or interest holders, and is reported on their individual tax returns.
I see that you're in chat ...but you don't seem to be responding, I'll give it a few, but then switch Q & A mode. ... We'll still be able to continue a dialogue there, just not in real time.
Child care credit
Maybe the Q and A mode will help
Also, for the traditional IRA, even if you are covered by a 401(k) at work all or some of the contribution may be deductible
For 2013 the phaseout range for deducting an IRA contribution when you are covered by a retirement plan at work are as follows:
OK I still can't see you. I'll switch to Q & A mode now. I have a 5:00 meeting with a client, but will check back in after that to continue the dialogue .... hope to speak with you later.
Sorry Lane, got called into work.
Here's my situation. I am a doctor who is a salaried employee of a single specialty medical group. We do have a 401k which I participate in. I am told that the 401k, my dependents, charitable contributions, and the interest on my mortgage are the only tax breaks I have. My salary ranges from 425-475k. So you can see, I'm very frustrated to be working so hard and lossing much of it to taxes.
I have several questions. 1) In ths senario, are there any other tax breaks? 2) I do like your idea of 529 education fund and would like more info on how that works. 3) How many tax deductions can I take before I am at risk for an audit? In the past, I think I've been way too conservative, but can't get any good tax advice from my tax person.
Another senario, my partner & I want to start our own business which is separate from my main income. She feels a S corporation would be good and provide us with a tax break. This is a legit business, not created just for a tax break. How would this work? What deductions can I take and how do I keep it separate from my main income? What happens when there are losses? I am told that it may take 4-5 years before the new business may break even or profit...depending on initial investment and overhead.
My partner thinks a "S" corporation would be cheaper to start and later we can form a LLC. Is that true? Also, is there a way where she and I can be separate so our deductions are separate. The current situation would be that she and I share office space. We are just starting, so we have no staff. We may lease equipment later. We will start by purchasing cosmetic products...ie botox and dermal filler.