Create a Personal Invoice Example for Real Estate Effortlessly

Personal invoice example for Real Estate

I want to share with you a few tips on how to avoid taxes legally my name is Brian Kim my legal disclaimer is I am a certified public accountant so I'm a CPA I do encourage you to speak with your accountants if you don't have one then I hope you enjoy this free information before we begin I do have a request if I help you save money with this video then my request is that you enjoy the money treat yourself out help someone else out the way I see it I'm just happy that the money stays in your hands it's better than having the IRS have your money right if you're making under 400 000 a year this video is going to be perfect for you that's because the reason why I'm saying that is if you make over 400 000 a year then you can utilize more tax tricks there's more tricks that are available to you once you get over the one million dollar threshold that's when things start getting wacky there's a lot of gray areas but in today's video we're going to stick to information for people making under four hundred thousand dollars a year and I want to be upfront with you there is no magic bullet there's no secret hack that's gonna reduce your taxes to zero that privilege that's reserved for the billionaires with sophisticated offshore entities that's I'm just I'm basically saying that's it's not for people like you and me if you want to make your taxes go to zero without the offshore entities without the army of tax attorneys then the only way to pull that off is for you to go down the illegal routes so how to avoid taxes illegally if that's what you're looking for then you're at the wrong video you clicked on the video with the title that says how to avoid taxes legally therefore in this video I'm gonna I'm gonna show you how to do it legitimately so you can save money on your taxes and you can sleep well at night I'm basically going to teach you how to nickel and dime the IRS legally and those nickels and those nickels and dimes they're going to add up now let's begin let's start off with the easy ones number one is commuter benefits your workplace offers this to you so please take advantage for 2023 you can spend up to 300 a month tax-free on commuting so that's basically a 300 tax deduction every month which is three thousand six hundred dollars a year this is applicable to mass transit such as trains Subways buses ride sharing such as Uber or Lyft parking meters parking garages parking lots and more number two retirement plans so please take advantage of retirement Plans offered by your workplace for example a 401k or a 403 b retirement plan a 401k is offered by for-profit companies a 403 b is if you're working for certain governments or non-profit organizations so when you put money into your 401k or 403b you pay less taxes this year and you're building up your retirement accounts there are more retirement plans than just the 401K or 403b but these are just the more popular ones number three HSA and HSA is a health savings accounts for people with a high deductible Health Plan when you put money into your HSA it lowers your taxable income it's a tax deduction okay so here's how it works you put money into your HSA so you can think of the HSA like a savings accounts dedicated to health related expenses so if you spend the money on qualified medical expenses then you do not pay taxes on that money so essentially you're paying for your health related expenses with pre-tax money which is awesome Additionally you can invest the money in your HSA and the earnings and interest will be tax-free number four FSA and FSA is a flexible spending accounts and FSA allows you to pay for certain health care expenses with pre-tax money which is great but I do want to warn you that there's a use it or lose it rule with the FSA if you have leftover money in your FSA by the end of the year you end up losing it unless your company has a rollover option number five dependent care FSA you can pay for child care expenses with pre-tax money you can do this for children and adult dependents you can use your pre-tax money to pay for daycare nurseries preschool nannies Au pairs babysitters day camps after school programs Adult Day Care facilities and more now let's move on to saving money and paying less taxes within Investments so number six we have Capital losses if you have cryptocurrency losses make sure that you report them because losses are good for tax purposes losses are tax deductions so when it comes to stocks you will receive a tax form the 1099 B and your stock losses will be accounted for on that tax form so when it comes to stock losses they're pretty hard to overlook they're pretty hard to miss I'm bringing up cryptos specifically because in many instances you are not provided a year-end tax form and many people forget to report their crypto losses or many people are just too lazy to report them but you're throwing away money to the IRS if you don't number seven long-term capital gains if you hold on to a stock or a crypto for more than a year before selling it that is classified as a long-term capital gain long-term capital gains receive much better tax treatments the tax rate for long-term capital gains it's about half your regular tax rates and if you're under a certain income threshold you will qualify for a zero percent tax rate in that case you will pay zero taxes at the federal level your profits will be 100 tax free number eight review your 1099-b tax form the 1099-b is the year-end tax statement for your stock market activity so you get this tax form from your brokerage account like Robinhood or Ameritrade or whoever you use so they send this to you around late January to mid-February but you can also download the 1099b from your brokerage account you just have to go to the tax section in your app or on their website with this 1099 B tax form just gloss over it make sure that there are no obvious mistakes I want to tell you about the most common mistake that I see that makes people pay more tax than they should on your 109b tax form if you see some information that's blank or missing that could cost you a lot of money and I see this happen all the time your 1099-b says how much you bought a stock for and how much you sold it for if the how much you bought it for is missing you know for whatever reason then it looks like you bought it for zero dollars and then whatever you sold it for it looks like pure profits and then you're gonna erroneously end up paying a lot of taxes therefore look out for obvious errors like that number nine margin interest so please do not forget to deduct your margin interest you can deduct your investment interest expense and this is going to be listed on your 1099 B tax form as well I see so many people forgetting to report this because it's not listed on the cover page number 10 gambling losses so here's a random one that's actually useful because I see this quite frequently if you went to the and you won big on the slot machine then you will receive a tax form called a w2g we're not talking about a million dollar jackpot this is applicable if you win a few thousand dollars the sends a copy of your winnings to the IRS therefore if you don't report your winnings on your tax return then you will get in trouble however I want you to know that if you do get a w2g you can reduce that amount by how much money you lost gambling so the money that you lost on table games slots sports betting horse racing Etc you can use the losers to offset the winners number 11 traditional IRA so we spoke about the 401K and the 403 b those retirement plans are offered at your workplace the traditional IRAs a retirement plan that you set up outside of your work so depending on your situation you may qualify for a tax deduction for putting money into your traditional IRA so please keep that in mind number 12 529 plan if you want to put away money for Education whether it's for your child or for someone else or even for yourself you can put money into a 529 plan you will not receive a tax deduction with the IRS for funding a 529 plan however you may receive a tax deduction on your State's income taxes some states do not give a tax deduction for 529 plan contributions like California and nine states do not have state income taxes like Texas or Florida but even in those cases if you have a 529 plan you can still benefit from tax-free growth number 13 fix your W-4 payroll settings if you usually owe money to the IRS when you file your tax return in many cases you're getting charged an underpayment penalty and you don't even realize it's the penalty is listed on your tax return but many people overlook this because the penalty automatically adds to your balance due so it's Sneaky like that to prevent this you have to fix how much taxes that you have taken out of your paycheck you make that adjustment on your W-4 with your payroll departments or in your payroll settings so I made a video on how to do that I'll provide a link down below number 14 minimal rental use rule a lot of people have been listing their homes on Airbnb or similar providers if you rented out your home for 14 days or less the money that you make will be 100 tax free this is called the minimal rental use rule so make sure that you report this properly otherwise you're going to end up paying taxes which is wrong notify your accountants or look it up it's called again the minimal rental use rule so I hope this has been helpful to you I hope you pay less taxes to the IRS and again if this video helps save you money please treat yourself out treat someone else out I'm just happy for you please subscribe I thank you for the support and I wish you a very nice day