Finally! Some good news for small business owners when it comes to taxes. A bill passed into law last Friday (November 6, 2009) added some nice tax planning opportunities
If you have a net operating loss in 2009 for your business, you can carry that loss back five years. When you carry that loss back to a high income year, you can get a refund within 45 days from the IRS.
Money in your pocket fast. Gotta love it!
Here are a few strategies:
If you’ve got a small loss for your business in 2009, and some big income years in the past, you may want to create an even bigger loss in 2009. It could mean quick cash in your pocket when you take your loss carryback.
Just because you can take the loss carryback, you may instead want to roll it forward to 2010 and beyond. That’s especially true if you’re taking advantage of Strategy #3.
There is a narrow window occurring in 2010 that allows anyone with pensions to roll into a tax-free Roth account. That means you can set up a self-directing Roth pension to invest in real estate, passive business interests and, of course, regular paper investments like stocks, bonds and the like.
NEXT YEAR ONLY! If you have a tax-deferred pension like a SEP, IRA, Keogh, old 401(k), etc… you can roll into a Roth account.
This is going to be huge! Not only can you do the roll-over, you also get 2 years to pay the tax. (You have to pay tax on the fair market value of the account at the time of the rollover.)
You are now investing TAX FREE FOR LIFE!
Combine Strategy #2 & Strategy #3 and you are setting yourself up for financial freedom that is tax free!
In the next few days, I’m going to tell you how you can have a seat in one of our exclusive year-end tax planning online coaching sessions.
Even better, these coaching sessions are FREE as soon as you become a client.
Can’t wait to find out? Contact Us.