Sometimes tackling issues or question regarding tax is not easy especially when you don’t have any tax background. It takes the advice of a professional for you to be able to get answers to your questions. Ted Bauman is one of such expert. Before we get started let’s, first of all, understand who Ted Bauman is.
Ted Bauman went to the State University of New York where he obtained his Bachelor of Science degree in Business Administration. He later joined Georgia University where he graduated with a master of Business Administration in Finance. He has over five years of experience working with the non-profit sector as an executive officer. His current position as the editor of the Bauman Letter includes international immigration issues, low-risk investment strategies, asset protection and privacy.
The New Tax Plan, what you need to Know
According to Ted Bauman, pass-through entities will be able to save a lot of money on the new tax plan. Pass-through entities are those businesses that do not pay taxes such as partnerships and limited liability corporations. As from January 1, owners of such companies will no longer be required to pay federal income taxes pegged on their 20% profit. Therefore anybody making between $100,000 and $200,000 will be on the safe side.
Almost everyone will be able to save money on taxes through the new Tax Plan
Regardless of your profession or business, there is a likelihood that you will save a lot of money on tax. For example, if you are private practicing doctor or lawyer you can split your business and save thousands of dollars in in taxes. On the other hand, if you are an employee you can take advantage of the situation and become a tax consultant.
Getting rid of key deductions
One of the main reasons for passing the new tax bill was to lower the tax rate and make the tax code easier. However, what you need to know is that the tax rates are not going to reduce until 2025. The lawmakers were trying to simplify the tax code but in essence, it could cost you more if you do not understand the regulations.
Reducing taxes on your Retirement income
As much as you may not be retiring soon, the fact is that at some point you will be
forced to. There are a few things you need to consider if that is the case. One of the things you need to do is to open a Roth IRA if you haven’t done that yet. The other things make sure you read Bauman’s Letter where he advises people on how to reduce taxes on their retirement earnings.
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