The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Taxes Strategy no bullshit

Taxes and regulation

Ama

New Contributor
User Power
Value/Post Ratio
69%
Dec 2, 2017
13
9
California
Hi everyone, am in the process of changing accountants and looking for tax strategies. There are many different forms, deductions confusing the big picture to me. Please correct this if it is wrong, any help is greatly appreciated.

Gross Wages + K1 + LLC income - deductions - QBI = net income that is subject to federal and state taxes.

What is the order each of these numbers are calculated and when is QBI applied? Does QBI disappear completely after the 415,000 threshold? During our interview process a cpa said that even with earners with over a million in profit could still have the qbi deduction, vastly different from another cpa we have talked to.

What tax strategies are you guys using to protect the funds or control them rather than see them disappear every quarter?

A lof of you may also come from real estate, with big losses due to repairs and bonus depreciation, what are ways to use these losses against profits from another business? Are businesses all netted together at the end of the day or are these real estate holdings supposed to stay in their own bubble and carry their own losses forward, never being able to offset profit from other K1s and LLCs?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Lyinx

Silver Contributor
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
128%
Oct 28, 2019
581
742
Lancaster County, PA
Hi everyone, am in the process of changing accountants and looking for tax strategies. There are many different forms, deductions confusing the big picture to me. Please correct this if it is wrong, any help is greatly appreciated.

Gross Wages + K1 + LLC income - deductions - QBI = net income that is subject to federal and state taxes.

What is the order each of these numbers are calculated and when is QBI applied? Does QBI disappear completely after the 415,000 threshold? During our interview process a cpa said that even with earners with over a million in profit could still have the qbi deduction, vastly different from another cpa we have talked to.

What tax strategies are you guys using to protect the funds or control them rather than see them disappear every quarter?

A lof of you may also come from real estate, with big losses due to repairs and bonus depreciation, what are ways to use these losses against profits from another business? Are businesses all netted together at the end of the day or are these real estate holdings supposed to stay in their own bubble and carry their own losses forward, never being able to offset profit from other K1s and LLCs?
if they are a good cpa, tell them that you thought that certain thing doesn't apply to you, and where they get their reasoning from?

I've seen some shady CPA's that just change the numbers on paperwork, those are the ones that will get you into trouble. You are responsible to make sure that they are doing their job (or that you trust them enough that if you get audited, you would be willing to pay the bill if there is a difference)

At the end of the day, it's your a$$ on the line, not theirs (if they are competent anyway)
 

Phil Yu

Contributor
User Power
Value/Post Ratio
68%
Aug 25, 2020
50
34
USA, CA
Accountant whose studying for his CPA and working on QBI in his study course right now

QBI deduction doesnt disappear after you pass the upper threshold.

2 type of income qualify for OBI - SSTB and your ordinary business income
SSTB is income from business such as accounting service, lawyer, Health, consulting, athletes, performing arts...etc

Threshold -
Married Joint filing - 326.6k (lower threshold) to 426K (upper threshold
Everyone else - 163.3 k (lower threshold) to 213.3k (upper threshold)

Above the upper threshold the QBI - all SSTB is gone. 2 steps to calculate
OBI is lower of (step 2) 20% of OBI vs greater of 50% wage paid vs 2.5% property cost + 25%wage paid (step 1)

Between the 2 threshold.
It is really messy to explain - in our course, it is a chart.

below the threshold.
20% deduction for all

hope this help
 

johnny2046

PARKED
User Power
Value/Post Ratio
0% - New User
Jan 22, 2021
1
0
I moved to the USA, Denver two years ago, and I had a lot of questions even if I thought I am prepared with all the taxes stuff. It's quite hard to answer your question straight. There are a lot of nuances. Like from where you are from, in which ES state you want to move, maybe you use any migration program or something. However, when I moved to US my neighbor advised me to refer to pros who know how to solve tax difficulties. They helped me with tax cases, so if not them I would have much more problems and had spent much more money. So moving to another country is a tough and responsible decision.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.
Last edited:

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top