In this episode of the podcast, we discuss various tax deductions that law firm owners should be aware of, including strategies like hiring family members and deferring income, to help lower your tax liability.
I’m always meeting with law firm owners who are missing out on different tax deductions. It’s crazy how much money they’re leaving on the table! Today, I want to talk about a few strategies that can help lower your tax liability. The first one is hiring family members. This is a great way to legally shift some taxable income to a lower bracket. For example, if your effective tax rate is 25%, and you pay your child $10,000 for administrative duties, you’ve just shifted $10,000 of income that would have been taxed at 25% to $2,500.
Another strategy is deferred income. This allows you to defer the tax liability that comes with income earned from a contingency fee agreement.
In this episode, you will learn the following:
- Hiring family members to help with the law firm can be a way to legally shift some taxable income to a lower bracket.
- Deferred income, such as from an attorney fee, can be paid in a future year or period, which defers the tax liability.
- Meeting with a financial adviser and CPA can help to plan for the long-term goal of the law firm owner having the most amount of money.
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Jayden was not always the financial guru that he is today. Growing up in a household just shy of the federal poverty line in Prince George’s County, Maryland, he knew the importance of money management but didn’t have the tools to create the financial stability he so desperately craved. After graduating Towson University with a B.S in Accounting and incurring a large amount of debt, Jayden was determined to make a change.
With a little hard work, and A LOT of sacrifice, Jayden became independent, gained professional growth as an accountant at a small CPA firm in Atlanta, and became a Certified Public Accountant. Over the next years, he’s worked with clients in just about every industry — helping them not only expand their financial portfolios, but to create plans that ensure financial sustainability and minimize taxability.
As a CPA, Jayden’s goal is to help entrepreneurs like himself gain independence and create a unique action plan to bring more to their bottom line while paying less in taxes. Invest in yourself and start working with Jayden TODAY!
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