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Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Disclosures.

Keith from The Wealthy Accountant makes an appearance on the show to discuss tax optimization for individuals and small businesses with plenty of tax tips for your FI tool chest.

Podcast Episode Summary

  • Keith from the Wealthy Accountant presents his tax optimization strategies for individuals and small business owners
  • Keith is the most knowledgeable accountant we have ever met. We met him in Florida at Camp Mustache and his exuberance for tax optimization was infectious
  • Keith became the official accountant of Mr. Money Mustache after a presentation at Camp Mustache in Seattle
  • A discussion of how to save FICA taxes by being taxed as an S-Corporation instead of as a pass through entity such as an LLC
  • Keith’s discussion of potential tax law change based on the President’s proposal
  • For people starting a business, where would Keith start? Business structure, getting kids and spouses involved, etc.
  • Keith believes when you have business income over $50,000 that you should be an LLC taxed as an S-Corp
  • Is there value for someone over the FICA cap in their ‘day job’ for their business to be treated as an S-Corp?
  • Home office deductions vs. renting part of your home to your business entity and how to make it official with a formal contract
  • What Keith recommends for retirement savings and the rules you need to understand whether you are an employee or if you own a business
  • Keith’s recommendation to speak with your HR department to max out your 401k if they only seemingly offer a certain percentage of your income
  • Tax optimization strategies for real estate investors including the tangible property rules and how to benefit from expensing items that would have otherwise needed to be depreciated
  • Cost segregation studies and how that can save you money on depreciation
  • Healthcare for small business owners and the lack of options
  • Discussion of Keith’s writing at The Wealthy Accountant. The goal was for people to “think like an accountant” and to live your life ‘right.’
  • He believes in saving half your income and investing in broad-based index funds. If you do those 2 things you’ll be successful
  • Hot Seat Questions
  • Keith believes the mega backdoor Roth and the Roth IRA conversion ladder will go away with tax reform
  • Favorite Blogs and Blog Posts of all time
  • Favorite life hack: Credit Card travel rewards
  • Biggest financial mistake: Trying to get into the stockbroker business
  • Advice you’d give your younger self: Don’t worry so much about money and enjoy yourself

Listen to Brad and Jonathan’s thoughts about this episode here.

Links from the show:

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Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Disclosures.
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