There are many advantages to giving to charity. While doing good is in and of itself its own reward, it also probably makes you feel good. Reaping the tax benefits from that charitable giving has also been a nice perk. While taxes might not have been at the forefront of your mind when providing assistance to others, the tax deduction for charitable contributions has typically helped shave money off your tax bill if you itemize instead of taking the standard deduction. Under the new Tax Cuts and Jobs Act, the deduction for donations is unchanged, but the bar is higher with the nearly doubled-standard deduction. ‘Tis the season for charitable giving, so make sure you do it correctly and stay on the nice list.
Many people have the dream of becoming wealthy but have no idea how to get started or who to turn to for help. It’s no wonder when there is so much conflicting information out there. On this episode of New to the Street, host Jane King and Financial Gravity CEO, John Pollock, discuss how Financial Gravity is helping small business owners grow their wealth with the help of the tax code and strategic tax planning.
Unless you’ve won the lottery, balancing what you earn vs. what you spend can be a daunting task. But just because something is daunting doesn’t mean it’s impossible. Instead of being paralyzed by phrases like wealth management or tax preparation, we want to give small business owners more time to devote to their craft and themselves. Simply put, Financial Gravity exists so that small business owners can be better versions of themselves. By implementing tools like our Tax Blueprint®, a wealth management plan designed entirely around the tax code, we save small business owners, on average, $20,000 per year on their taxes.
Paying less tax will not increase your chance of being audited. Sure, tax evasion is illegal but tax avoidance is absolutely not. All of the 130+ tax saving strategies we implement are actual laws written into the tax code, which means using them does not increase your risk of being audited. In fact, it decreases the chance. Just like stopping at a red light won’t increase your chances of getting a ticket, lowering your tax liability won’t increase your chances of being audited.
Lower Your Taxes, Grow Your Wealth.
Financial Gravity wants everyone to benefit from integrated financial advice, something that is currently only accessible to the uber-wealthy. We are currently working on digitizing the tax code in order to combine the best of both professions; an accountant (who loves to put numbers into boxes) and a financial services person (who is mostly product focused.) Aside from Financial Gravity, there is no one-stop-shop for all your financial matters. Hence why your head feels like it’s exploding when tax season looms or you have to make a big purchase for the company. Financial Gravity is disrupting the financial services industry as you know it by letting the tax code determine your wealth plan. The result? Legal, moral, and ethical results (and less tax, of course.)
Don’t want to read all 70,000 pages of the tax code to reduce your tax liability? Download this free eBook: http://www.johnpollockinc.com/taxbook
Before we start, I want to define what strategic tax planning actually is. Strategic Tax Planning is a phrase coined by Financial Gravity, but it’s a pretty basic concept. Lowering taxes increases profitability and grows wealth. Unlike other tax-related services and solutions, at Financial Gravity we’re committed to working with you personally to proactively develop a plan to minimize your tax burden and maximize your success.
Our tax strategies aren’t just picked randomly out of a hat. We have partners all over the country who are trained, certified, and experienced tax planning advisors who help you keep capital in your business and pay less tax.
All of our financial advice starts with Taxes. Why? Because the Tax Code is FULL (more than 20,000 pages full) of legal ways you can pay less tax (such as structuring your business as an S-corp instead of a Sole Proprietor or even hiring your kid). The financial industry is broken. Advisors either want to make a transaction or commission while Accountants just want to put numbers into boxes (they aren’t trained to help you with taxes, say what?) Financial Gravity helps small and medium-sized business owners keep more of what they’ve earned — so they can pour money back into the economy and hire more people– by giving them advice based on what the tax code says, not what commission they’ll earn.
You wouldn’t start a business without a business plan, would you? You wouldn’t build a house without a blueprint, would you? You wouldn’t plan a dinner party without a grocery list, would you? Enough said.
At Financial Gravity, we firmly believe that accounting firms are not serving their clients the way they should be. We want to change the financial services industry from being transaction, commission, and product based, to more Tax Code based. By offering Strategic Tax Planning, Financial Gravity will help SMB owners lower their personal income tax liability, and give them numbers that help them run their business
Here are three examples of small business owners who didn’t receive Strategic Tax Planning:
1. You’ve structured your business as Sole Proprietor because your neighbor John told you it’s the easiest way to get started as an entrepreneur (and you are all about preventing headaches). What John didn’t tell you, however, was what would happen if you earned more than $100k as a sole proprietor. Earning more than $100k in gross revenue will increase your risk of being audited. Your headache prevention plan actually turned out to be your biggest nightmare. Not only did you end up paying far more in taxes, but now you have to hire a lawyer to help you sort out this scary audit.
Financial Gravity can help you identify the right filing status for your business.
2. My financial advisor told me to start with an IRA, Individual Retirement Account, and then jump to a 401k after I grew my business. Now that I’m retired, I realize how terrible this advice actually was. Not only have my taxes increased but I’ve had to decrease my lifestyle because my money doesn’t go as far. Not only have my taxes increased but my money is not able to sustain the lifestyle I wanted to live.
Financial Gravity can help you choose a retirement plan (without Third Party Administrators, confiscatory fees, or discrimination rules) that fully supports your unique vision of retirement.
3. My accountant told me to file the $50,000 I spent hosting educational seminars for potential clients and referral partners as a Meals and Entertainment expense. Therefore, I was only able to deduct 50% of the total instead of the entire amount. Little did I know that I could have filed it as a Marketing expense and deducted the full amount. This mistake cost me thousands of dollars.
Financial Gravity can provide you with our Tax Blueprint® (a tax reduction plan that is customized specifically for you and your business). The Tax Blueprint® is your strategic tax plan that when implemented will maximize your personal tax savings and give you numbers to run your business.
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