Financial Advisor vs. Wealth Manager

Financial Advisor vs. Wealth Manager

Financial advisors deliver planning and organizational resources for their clients. The term financial advisor is unspecific. Advisors specialize in retirement planning, estate, college, business, tax planning, portfolio building or anything related to the generalized management of your finances like setting goals, picking investments, saving for an emergency fund or assessing risks.

Wealth managers are much more systematic and typically work with high – net worth clients.  Most wealth managers have expertise in financial advisors, yet many financial advisors may not be able to assist you with managing your wealth. Both financial advisors and wealth managers, set their own minimum account requirements, so terms and conditions will likely vary based on your requirements.

I take a collaborative approach to both financial planning and wealth management. Whether it’s company taxes or individual retirement objectives, I will review your current financial position to help you strategize your future financial goals then help you build a savings and investing roadmap that itemizes your options for asset protection and building. I am qualified as both a wealth manager and financial advisor and am looking forward to helping you reach your financial ambitions expediently and comprehensively.

Schedule your free consultation at JeffreyLevine.Solutions today.

Business Models and How Your Taxes May Differ

Business Models and How Your Taxes May Differ

If you are an entrepreneur or considering starting a small business, your 1st consideration will be which business entity is right for you to meet your primary objectives which is to make profits while saving in taxes. Let’s review a few facts to assess which business entity could be right for you and what your tax planner may recommend for tax savings, asset protection, and retirement benefits. Yes, it does matter which entity you choose because that business model directly determines how much money you can save in net taxation by between ten and 40 percent and how much you can invest in an equitable retirement.
Let’s look at the top business entity preferences and how they can possibly benefit your objectives.

Those who receive income via 1099 are independent contractors or freelancers who must pay self-employment taxes in addition to regular income while representing themselves as both employee and employer. You do not have to have any type of corporate entity to be self-employed. Ask your planner based on your income tax bracket if you qualify for any pass-through deductions.

S Corp
A typical S Corp is a pass-through entity that has no legal responsibility to pay taxes on its corporate income while all profits flow through to the proprietors, therefore the owners pay income taxes on their personal returns.

C Corp (Most Large Corporate Entities)
Pretty much any company that has gone public, or plans to go public, will likely be a C corp. C corp, entities are taxed separately from the shareholders. If your company intends to go public then this may be the entity for you as there are no restrictions on ownership or limits to the number of shareholders you can procure. C Corps offer a lower tax rate but also leaves the potential for “double taxation” on the corporation’s profits and when shareholders distribute their dividends.

A Limited Liability Company (LLC) can be file as a partnership, S corporation, or even sole proprietor. An LLC is a pass-through entity that isn’t required to pay federal income taxes, so the owners will report profits and losses on their personal federal tax returns. Understand as well that many states charge an annual fee for the LLC designation. An LLC’s owner can elect to tax it as a pass-through entity a qualified business income deduction could apply. Discuss with your tax planner what would be the best way to set up the LLC to allow for the benefits the entity has to offer.

Your tax planner will know best based on your business objectives and profession what corporate entity would be in your best interest to initially incorporate to maximize your earnings and ensure a profitable retirement.

If you don’t have a tax professional at your leisure, I am definitely willing to speak to you regarding your objectives.

Reach out to me at JeffreyLevine.Solutions anytime to schedule a free consultation on tax planning, beneficial retirement opportunities, and lucrative business exit strategies.

The Importance of Having A Mastermind Mentor or Coach

The Importance of Having A Mastermind Mentor or Coach

Mastermind mentors and coaches are often necessary to encourage, support, guide and provide collaborative advice to help their mentee navigate smoothly their professional resources, networks, and leadership capabilities to realize the most results and ultimately profits from their business ventures.

High-quality mastermind mentors and coaches, although seemingly expensive bring a wealth of aid to an individual looking to best harness their responsibility levels to optimize successes in their primary objectives. A mastermind mentor considers your underlying motivations and via extensive evaluation processes aids the mentee to identify and correct deficiencies on both developmental and impersonal levels.

Relationships with mentors or coaches can provide some of the following underlying benefits to mentees:
A direct authority with inside expertise and experience that supports your industry’s vision
Confidence and character-building strategies that help you to be a better person
The ability to draw Higher salary opportunities via direct network building strategies
An educated ally who has your back no matter what

When evaluating a mentor or coach consider the following questions:
What are my short- and long-term mentoring needs?
How do I assess a mentor’s competencies and deficiencies?
How do I approach the mentor once I think they are a good fit?
How do I develop credibility in my respected field?
What are the takeaways to get the most from this mentoring relationship?

Mastermind mentors and coaches create support systems for their mentees often time eliminating guesswork, trial and error while providing honest feedback based on personal knowledge and industry trends. A mastermind mentor can provide insight into living a healthy lifestyle, dealing with difficult people, work/life balance, and of course growing your business.

If you would like to discuss your mentorship needs,  how to take your business to the next level of revenues, or are looking for a profitable exit strategy, reach out to me to schedule a consultation at JeffreyLevine.Solutions today.

Important Tax Deductions Every Business Owner Should Use

Important Tax Deductions Every Business Owner Should Use

Business tax deductions work by lowering your taxable income, thereby lowering the amount of tax you owe toward your tax return. In order to claim the most deductions possible carefully review this list of deductions to see if they apply to your business, then reach out to your financial planner or tax consultant for clarity with accurate bookkeeping records.

Entrepreneurs, freelancers, and small businesses are allowed to write off a range of business expenses when filing their income tax.  These expenses include:

  • Startup Expenses
  • Postage
  • Business  associated travel
  • Educational
  • Advertising and Promotion
  • Business phone and internet
  • Business Insurance
  • Health Insurance premiums
  • Home Office Expenses
  • Office Supplies and related expenses
  • Business Meals
  • Work-related car use including maintenance
  • Business Interest and Bank Fees
  • Foreign Earned Income Exclusion
  • Interest on Loans
  • Depreciation
  • Real Estate Tax
  • Professional Service and Consulting Fees
  • Salaries, Benefits, Vacation Pay to employees
  • Moving Expenses
  • Home Energy Credits
  • Client and Employee Entertainment

Personal Tax Deductions for Business Owners

Charitable contributions

Business owners are able to claim their qualified philanthropic deductions on Form 1040 Schedule A attachment.

Child and dependent care expenses

If you pay someone for childcare or a codependent member, you may be able to claim the Child and Dependent Care Credit. Refer to IRS Publication 503 regarding limits and form requirements.

Retirement contributions

Depending on the retirement plan, business owners who contribute only to their own retirement funds can claim the deduction on Schedule 1 attached to their Form 1040.

Health care expenses

Out-of-pocket medical costs, like co-pays and prescription costs, can be deducted like the health plan premium and should be itemized on Schedule A.   A Self-employed business owner to itemize and deduct health insurance premiums for themselves, their spouse, and dependents.

How Can I Benefit From A 100 Percent Tax Deduction?

100% tax deductions are business expenses of which 100 percent of it can be claimed on the owners’ income taxes. These deductions can result from:

  • Annual business phone bills
  • Health premiums for the self-employed
  • Up to $25 per person per year as gifts to employees and clients
  • Office equipment, like computers, printers, and scanners
  • Business travel and its associated costs, like car rentals, hotels, etc
  • Furniture purchased entirely for office use in the year of purchase

What Do I Do Next?

Contact me to identify which deductions you can claim, which forms you require, timelines, deadlines, and anything else related to Financial Management and Tax Planning.

Learn More Here


The Importance of a Tax Consultant

The Importance of a Tax Consultant

Tax consultants are financial advisors who assist their clients with tax-related issues. They can help save lots of money for their clients including penalties and fees that otherwise would be paid to the government.

The most significant role of a tax consultant is to file the income tax return for the client. If filed late, the client is liable to pay penalties that can be more burdensome than the actual taxes. A consultant takes care of this and ensures that the returns are filed accurately and timely.

A tax consultant’s role is to identify, analyze, and solve problems in a way that realizes a return on investment for the client.
Tax consultants advise on business expansion plans, ways to deter or defer taxes, and can give recommendations as to how to alter income strategies to retain more preferable financial results. Many assume tax consultants can only be helpful during an audit as they are experts in dealing with those types of issues, but they are also versed in, financial trends, philanthropic options, and passive income strategies that help their clients retain wealth rather than planning to give it away. Tax consultants are the ‘right hands’ of many affluent professionals and multinational companies.

When seeking to hire a tax consultant pick one who has a proven track record of successes, has a broad range of domestic and international tax knowledge, and has experience with high net worth clients. I can be reached at JeffreyLevine.Solutions to discuss your tax matters upon request.

20 Important Questions to Discuss With Your Financial Advisor or Tax Planner

20 Important Questions to Discuss With Your Financial Advisor or Tax Planner

I have compiled a list of 20 important questions you should ask your tax planner or financial adviser.  As there is no one size fits all template, consider these topics as they relate to your current situation. Keep in mind, this is nowhere near an all-inclusive list as these questions may not apply to you, or there may be questions here that don’t reflect your circumstances.

  1. How do I convert my Roth IRA and is the conversion reversible?
  2. Are there alternative ways to contribute to Roth accounts?
  3. How can I maximize my deductions?
  4. Do I pay taxes on trust accounts?
  5. Are my estate planning documents in order?
  6. What are my state’s laws and potential options to mitigate state, estate, or inheritance taxes?
  7. What strategy should I use for low cost-basis assets that stem from lifetime gifts or trusts?
  8. How much can I contribute yearly to a 529 account?
  9. How do I bequeath to charity?
  10. Does my company qualify for the 20% deduction for Qualified Business Income (QBI)?
  11. What are the current year’s highest marginal tax rates?
  12. Am I obligated to pay the Medicare investment income surtax and what are the limits?
  13. Am I responsible to pay Medicare payroll taxes and what are their limits?
  14. What are Child tax credits for this year?
  15. What are the standard deduction limits?
  16. Can I deduct my mortgage?
  17. Are State and local taxes (SALT) deductions capped?
  18. Can I claim deductions on Medical expenses?
  19. What are the limits on Estate/gift tax exemptions for the current year?
  20. What is the Annual gift tax exclusion amount for the current year?

As you may know, I am a qualified tax planner and financial advisor so I would be more than happy to discuss these questions with you in more detail at your convenience.  Visit JeffreyLevine.Solutions to schedule a time that works for you via our contact page and let me educate you on your strategic wealth-building and tax planning options.