Episode 031 Tax Tips With Lance Belline CFP, CHFC

The ToddCast Show show

Summary: <h3>Lance Belline CFP, CHFC, and Financial Advisor joins us for the second episode of our 2023 Tax Tips series. He is a financial consultant who seeks to provide financial peace of mind and clarity in how they plan their financial goals. He recalls the divine intervention that led to his journey to this career path.</h3><p><br></p><h3>We learn how self employed or 1099 workers can open the door to more tax strategies through deductions and other allowable items. Unlike W2 employees (standard job, tax withholding by the company), self employed individuals can write off or deduct mileage, as well as expenses related to the business activities. Having children of age (10 or older) can perform a jobs function with the self-employed company to enable them to be paid up to $12,950.00 (standard deduction) as an employee. This allow for further deductions and lessening your overall tax liability. Custodial parents typically switch back and fourth with filing the child on their tax returns (in a divorce or separation, living separately).</h3><h3><br></h3><h3>The highest marginal tax rate currently in 2023 is 37% if the person earns more than $539,999 (single) or $647,850 (married). At one point in history, we had tax rates as high as 90% during the 40s-50s due to the Great Depression. Even in the 1980s, it was almost 50%. We are actually in the lowest tax rate environment we have ever been in. Even though we don’t enjoy it, we should be happy the tax rates are as low as they are…even though it doesn’t seem like it. Without the taxes we will be unable to support Government and Society properly, which is why it is important to pay your taxes. When we are making a good income, save and position your wealth so that you can dramatically decrease the impact Uncle Sam has on you at tax time.</h3><h3><br></h3><h3>Tax laws enable many opportunities for reducing tax liability that are perfectly legal, ethical and above boards. The trick is knowing the strategies and how to implement them effectively.</h3><h3><br></h3><h3>We discuss gig workers and the overall gig economy and qualifying deductions and expenses, which are one of the factors in reducing your tax liability. Even older equipment can be utilized through depreciation and can qualify as a deduction. Everything from phones, gas, food and meals, to equipment and office related costs can qualify as a deduction. It is possible to operate at a loss with expenses greater than income, but only during the first year. This is fairly common.</h3><h3><br></h3><h3>Conversely, a W2 employee is someone who has taxes withheld by the company they work for, but people need to remember to choose the proper withholding amount during the hiring process. if a person does not withhold enough, they will owe taxes at the end of the year. Those who withhold the proper amount will likely receive a refund at the end of the year. Bonuses are also taxed, which can be a surprise to some filers. Supplemental wages have a different tax rate, which applies to a bonus earned.</h3><h3><br></h3><h3>Lance created a “Bucket Strategy” that he uses to reduce tax liability and maximize return. He has also authored a book outlining strategies used successfully with real clients over the years. The key to developing wealth is to start early. Compounding wealth is the vehicle. If starting late, save more to make up for lost time.</h3><h3><br></h3><h3>His book “More Wealth, Less Taxes” helps readers learn to invest and save while lessening their tax liability and leveraging strategies available to them. If you want to have more money in retirement, Lance can help you make it happen as long as you are patient.</h3><p><br></p><p><strong>To read the entire show summary, please visit </strong><a href="https://toddcastshow.com/" rel="noopener noreferrer" target="_blank"><strong>https://toddcastshow.com</strong></a></p><br><hr><p style="color:grey;font-size:0.75em;"> Hosted on Acast. See <a style="color:grey;" target="_blank" rel="noopener noreferrer" href="https://acast.com/privacy">acast.com/privacy</a> for more information.</p>