Deni Baldwin
Tax Saving Secrets Of Top Real Estate Agents • Deni Baldwin
Episode Summary
In this episode, CPA Deni Baldwin discusses the financial benefits of incorporating as an S-Corporation for real estate agents. She explains how this can reduce self-employment taxes and provide legal protections. Deni also emphasizes the importance of working with a CPA to ensure all potential tax savings are realized and to navigate the complexities of tax law.
🎯 Key Timestamps
High self-employment taxes for independent contractors
Consider incorporating as an S-Corporation to reduce self-employment taxes and gain potential tax savings.
Lack of asset protection for sole proprietors
Set up an LLC to gain legal protection and flexibility for future growth.
Difficulty in managing taxes and deductions
Work with a CPA to ensure all deductions are captured and taxes are minimized.
🎬 Clip-Worthy Moments
"Every dollar of net income as a sole proprietor is subject to self-employment tax, but as an S-Corp, you can avoid this."
Hook: Want to save thousands on taxes? Here's how incorporating can help.
💡 Key Tactics
Set up an LLC and elect to be taxed as an S-Corp once your income reaches around $40,000 to $50,000.
This allows you to reduce self-employment taxes and gain asset protection. (19:00)
Use a CPA to ensure proper tax filings and to maximize deductions.
A CPA can navigate complex tax laws and find savings you might miss. (49:00)
💬 Quotable Insights
"Incorporating as an S-Corp can save you from paying self-employment taxes on every dollar of net income."
Full Description
Deni Baldwin talks about what made her decide to become an accountant. Deni discusses the benefits of incorporating as an S-corporation to save on self-employment tax and determining a “fair and reasonable” salary as an S-corporation employee, and how that impacts the taxation of the remaining business income. Next, Deni talks about the differences in asset protection between sole proprietorships, LLCs, and corporations. Last, Deni discusses the pros and cons of holding investment real estate in an LLC vs a corporation, especially around issues like refinancing and triggering gains.
Please check out ProVision Wealth on Linkedin here.
If you’d prefer to watch this interview, click here to view on YouTube!
Deni Baldwin can be reached at 480-467-4400 and info@provisionwealth.com.
This episode is brought to you by Real Geeks.
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ProVision Wealth
website • Recommended for real estate agents to get professional tax advice and services.