Bryan Lord’s Post

Write-Offs vs. Deductions: What's the difference? 🤔 There is none! Both are pretty much the same. However, if you’re talking about Write-Offs/Deductions vs. Tax Credits…there is a difference. Tax credits shrink your tax bill, while deductions slash your taxable income. So, buying that lawnmower or hiring a local kid to help with your landscaping business both trim down what you owe to Uncle Sam. Smart moves for savvy entrepreneurs! #cpa #taxes #writeoff #deductions #taxcredits #entrepreneurs #income

Kamala Harris has proposed a $50,000 tax deduction for startup expenses as part of her broader economic strategy to support small businesses and foster entrepreneurship. This is a significant increase from the current $5,000 deduction, aimed at alleviating the financial burden many startups face during their initial stages. Key Features of the Proposal: 1. Increased Deduction: The tax benefit allows entrepreneurs to deduct up to $50,000 in startup costs. This represents a tenfold increase from the previous limit. 2. Covered Expenses: The deduction would apply to a variety of startup costs, including: Office supplies and equipment Legal fees (e.g., for forming a business entity) Marketing and advertising expenses Employee training Business development expenses, such as product research. 3. Flexibility in Usage: Startups could either take the full $50,000 deduction in one year or spread the deduction across several years as the business grows. Alternatively, they could opt for the original $5,000 deduction and amortize the remaining expenses over 15 years. 4. Boosting Entrepreneurship: This proposal is designed to remove financial barriers, making it easier for more entrepreneurs to start new businesses. Harris aims to encourage 25 million new small business applications during her first term, up from the 19 million that occurred under the Biden administration. 5. Job Creation and Economic Growth: Small businesses are a significant source of job creation in the U.S. Harris’s proposal is expected to stimulate job growth and innovation by reducing the upfront costs for entrepreneurs, making it easier to launch and grow businesses. 6. Part of a Larger Economic Plan: This initiative aligns with Harris's broader goals of promoting small business growth, providing tax cuts for the middle class, expanding the child tax credit, and offering assistance for first-time homebuyers. What are your thoughts on this new proposed tax deduction? Let me know in the comments #sayyestoprofits #kamalaharris #2024election #smallbusinesstaxes

🚩 Not claiming R&D tax credits consistently? That’s a red flag. Think of it this way: even if your business isn’t turning a profit yet, the R&D tax credit can help offset payroll taxes for up to five years. After that, you can carry it forward and use it when those profits start rolling in. And if you’re thinking, “What’s the point if we’re never going to be profitable?”—it’s STILL worth it for acquisitions and building a strong foundation. Ashton and Ishan dive into these topics in the video—check it out to see how tax credits can benefit your business. Let’s chat below! #RDtaxcredit #TaxCredits #BusinessGrowth #RDTaxIncentives #TaxStrategy #TaxSavings #StartupTips #Entrepreneurship #TaxPlanning

Starting a new business is an exciting time, but one of the first big decisions you'll need to make is how to structure your company. Will you be a sole proprietor, a partnership, an LLC, or a corporation? The entity you choose can have a big impact on your taxes, so it's important to weigh the pros and cons. For example, sole proprietorships and partnerships are "pass-through" entities, meaning the business income and losses are reported on the owners' personal tax returns. This can be simpler, but you'll pay self-employment tax on all your net business income. Corporations, on the other hand, are taxed separately from their owners. C corps pay corporate income tax, while S corps and LLCs can elect to be taxed as pass-through entities. The tradeoff is more complex tax filings, but you may be able to take advantage of certain deductions and tax breaks. Unsure which structure makes the most sense for your new venture? Let the MASCPA team analyze your specific goals, industry, and financial projections. At MASCPA, our certified public accountants (CPAs) are experts at helping entrepreneurs navigate this crucial choice. We'll break down the key tax considerations for each business structure so you can make the best decision for your situation. We'll crunch the numbers and provide a personalized recommendation to minimize your tax burden and set you up for long-term success. Don't let something as important as your business entity status trip you up. Partner with the tax experts at MASCPA and make an informed choice that pays off for years to come. #BusinessEntity #TaxImplications #Entrepreneurship #StartUp #Taxes #PassThroughEntity #CorporateStructure #CPAExperts #MASCPAServices #TaxPlanning #FinancialStrategy

Harris & Trump: A Review of the Candidates’ Small Business Plans: As the 2024 election approaches, Kamala Harris and Donald Trump are outlining their small business policies, which are of interest to angel investors. Both candidates propose plans that could impact startups and early-stage ventures. Here’s a brief overview. ### Kamala Harris Vice President Kamala Harris aims to reduce barriers for small businesses, proposing an increase in the startup tax deduction from $5,000 to $50,000, which startups can claim when they become profitable—benefiting early-stage companies. Harris also plans to streamline occupational licensing, potentially boosting innovation and entrepreneurship. She proposes a 28% capital gains tax for those earning over $1 million, which is lower than President Biden's earlier proposal but could still affect high-net-worth investors. However, her promise not to raise taxes for those earning under $400,000 could benefit many angel investors. While she supports tariffs, Harris has not specified plans for new levies on China, leaving some flexibility. She also proposes eliminating federal income tax on tips, while maintaining payroll taxes. ### Donald Trump Donald Trump promotes extending or permanently enacting the Qualified Business Income Deduction, which benefits pass-through entities like S-Corporations. His proposed reduction of the corporate tax rate from 21% to 15% could help growing companies but may increase the national deficit. His tariff plan, including up to 60% on Chinese goods, could raise costs for startups dependent on imports. Trump also supports eliminating income and payroll taxes on tips and Social Security benefits. His running mate, JD Vance, advocates breaking up Big Tech, which could open opportunities for smaller startups. ### Key Considerations for Angel Investors - **Taxes**: Harris’s capital gains tax may affect returns for high earners, while Trump’s tax cuts provide immediate benefits but pose fiscal risks.    - **Regulation**: Harris emphasizes reducing red tape to encourage new businesses, while Trump’s approach to deregulation supports scaling companies but may impact long-term stability. - **Global Markets**: Trump’s aggressive tariffs could disrupt supply chains for startups, while Harris’s stance leaves more room for flexibility.

𝗠𝘆𝘁𝗵 𝗕𝘂𝘀𝘁𝗲𝗿: 𝗦𝗺𝗮𝗹𝗹 𝗦𝗶𝗱𝗲 𝗜𝗻𝗰𝗼𝗺𝗲𝘀 𝗗𝗼𝗻’𝘁 𝗥𝗲𝗾𝘂𝗶𝗿𝗲 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 📋 Understand why every dollar earned, regardless of size, should be reported to the IRS. Seek guidance from a tax expert to manage deductions and ensure everything is filed correctly. Stay informed! 💡 ➖➖➖ Over the last two decades, through strategic tax planning, I have helped multi-entity business owners increase business profits, pay less in taxes and keep more money. Through the "Smarta Method," I have successfully saved business owners on average more than $20,000 in income taxes annually. With over 1,600 tax strategies available, the "Smarta Method" identifies the ones that: 💰 Increase Business Profits 💰 Increase Business Cash Flow 💰 Increase personal wealth 💰 Reduce Taxes ***** 👉 Type “MARTA” in the COMMENTS, and I will send you a FREE PDF copy of my "5 Proven Steps to Stay in Charge of Your Hard-Earned Dollars and Keep Your Taxable Income in Your Pocket!" #taxtips #finances #yourvaluedcpa #entrepreneurs #startup #taxseason #businessowners

Starting a new business is an exciting time, but one of the first big decisions you'll need to make is how to structure your company. Will you be a sole proprietor, a partnership, an LLC, or a corporation? The entity you choose can have a big impact on your taxes, so it's important to weigh the pros and cons. For example, sole proprietorships and partnerships are "pass-through" entities, meaning the business income and losses are reported on the owners' personal tax returns. This can be simpler, but you'll pay self-employment tax on all your net business income. Corporations, on the other hand, are taxed separately from their owners. C corps pay corporate income tax, while S corps and LLCs can elect to be taxed as pass-through entities. The tradeoff is more complex tax filings, but you may be able to take advantage of certain deductions and tax breaks. Unsure which structure makes the most sense for your new venture? Let the MASCPA team analyze your specific goals, industry, and financial projections. At MASCPA, our certified public accountants (CPAs) are experts at helping entrepreneurs navigate this crucial choice. We'll break down the key tax considerations for each business structure so you can make the best decision for your situation. We'll crunch the numbers and provide a personalized recommendation to minimize your tax burden and set you up for long-term success. Don't let something as important as your business entity status trip you up. Partner with the tax experts at MASCPA and make an informed choice that pays off for years to come. #BusinessEntity #TaxImplications #Entrepreneurship #StartUp #Taxes #PassThroughEntity #CorporateStructure #CPAExperts #MASCPAServices #TaxPlanning #FinancialStrategy

𝗙𝗶𝗿𝘀𝘁-𝗧𝗶𝗺𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗢𝘄𝗻𝗲𝗿? 𝗛𝗲𝗿𝗲’𝘀 𝗪𝗵𝗲𝗻 𝘁𝗼 𝗙𝗶𝗹𝗲 𝗬𝗼𝘂𝗿 𝗧𝗮𝘅𝗲𝘀 𝗥𝗶𝗴𝗵𝘁!🤝 Starting your business is a rush of excitement, but when should you file your taxes? Don’t let the unknown create unnecessary stress. Your first tax deadline is a crucial step toward building the future you’ve dreamed of – let’s make sure you get it right from the start. 💼✨ We’re here to guide you every step of the way. Share your thoughts and COMMENT below. ⬇️ ➖➖➖ Over the last two decades, through strategic tax planning, I have helped multi-entity business owners increase business profits, pay less in taxes and keep more money. Through the "Smarta Method," I have successfully saved business owners on average more than $20,000 in income taxes annually. With over 1,600 tax strategies available, the "Smarta Method" identifies the ones that: 💰 Increase Business Profits 💰 Increase Business Cash Flow 💰 Increase personal wealth 💰 Reduce Taxes ***** 👉 Type “MARTA” in the COMMENTS, and I will send you a FREE PDF copy of my "5 Proven Steps to Stay in Charge of Your Hard-Earned Dollars and Keep Your Taxable Income in Your Pocket! #Smallbusinessowners #FinancialFreedom #YourvaluedCPA #etrepreneurs #startups #businessowners

The Silent Partner You Can't Ignore: Why Taxes Matter More Than Ever for Founders Forget the hype, forget the hustle, forget the overnight success stories. The truth is, starting a company is a marathon, not a sprint. And just like a marathon runner needs proper training and fuel, founders need a solid understanding of taxes to reach their goals. Why? Because taxes are more than just an annual obligation. They're a strategic tool for building a sustainable business. Here's the reality: • Taxes impact your bottom line: From income tax to payroll taxes, understanding these costs allows you to price your products and services effectively, ensuring profitability. • Taxes influence your financial planning: Knowing your tax obligations helps you make informed decisions about investments, hiring, and scaling your business. • Taxes impact your cash flow: Proper tax planning ensures you have the funds available to cover expenses, pay employees, and invest in growth. The biggest mistake many founders make is thinking about taxes as an afterthought. They focus on the exciting aspects of building a company, forgetting that taxes are a crucial part of the equation. Here's what you can do: • Educate yourself: Start learning the basics of business taxation, even if it seems overwhelming. There are numerous resources available online and in your local community. • Seek professional advice: Don't be afraid to consult with a tax expert. They can help you navigate the complex world of taxes and ensure you're making informed decisions. • Make tax planning a priority: Don't wait until tax season to think about taxes. Integrate tax planning into your business strategy from day one. Building a successful company requires more than just a great idea and hard work. It requires a comprehensive understanding of the financial landscape, and taxes are a critical part of that landscape. Share your thoughts! What tax-related challenges have you faced as a founder? How has understanding taxes helped you build a more sustainable business? Let's start a conversation and empower each other! #startup #entrepreneur #business #taxes #financialplanning #founderlife

QSBS is an incredible US tax benefit that has made so many startup founders, employees, and investors wealthy. But also easy to mess up: Qualified Small Business Stock benefits offer a 100% exclusion from U.S. federal income tax on the gains from the sale of stock, subject to certain conditions. This potentially means no federal capital gains tax on the sale of your stock, up to the greater of $10 million or 10 times your adjusted tax basis. Consider this scenario: you’re a founder who acquired stock at virtually no cost and later sold it for $25 million. Given that your tax basis is almost zero, your exclusion cap would be $10 million. This leaves you paying capital gains tax on the remaining $15 million. If the tax rate is 20%, your tax liability would be $3 million — a significant reduction from the $5 million you would owe without the QSBS benefit. To leverage these benefits, there are 3 main conditions: 1. Original Issue: You must have acquired the QSBS directly from a U.S. C-corporation in return for money, other property (not including stock), or as payment for services, with limited exceptions. A key qualification that some people don’t understand is that in order to qualify for QSBS treatment you must own shares during the time the company is a qualified small business, NOT stock options. 2. Holding Period: The holder must have retained the QSBS for over five years by the time of sale. 3. Assets: The company must have had gross assets of <$50M when shares are acquired. QSBS is less about what to do versus what not to do. Stay tuned for my next post, where I'll discuss the most common pitfalls and how to avoid them. Have you encountered any issues with QSBS? Comment below, and follow for more legal insights for startups! #startuplawyer #startupfounder