Video: Fantastic Year-end Tax Strategies - Professionals with Equity Compensation & Business Owners

Video: Fantastic Year-end Tax Strategies - Professionals with Equity Compensation & Business Owners

November 02, 2023

Do you have equity compensation from your employer or do you own a business? Are you tired of getting surprised at tax time and finding out that you owe more taxes than you expected?

Now is the time to take action to reduce your tax burden for the 2023 tax year.

Sierra Pacific Financial Advisors, LLC has recently produced this educational webinar titled “Fantastic Year-end Tax Strategies for Professionals with Equity Compensation & Business Owners”. Through watching this video, you will learn various tactics and actions that help you minimize your tax liability.

This webinar recording will cover:

  • Strategies for exercising Stock Options and Restricted Stock Units
  • The Alternative Minimum Tax (AMT) – how to avoid it
  • Bunching Itemized Expenses to increase tax deductions
  • Accelerating expenses to reduce reportable income for Small Business Owners
  • Set up and funding of a Defined Benefit Plan
  • Maximizing SEP IRA contributions

Please note that the presenter, Daniel Goodman, offered some additional comments and clarification below on some of the Q&A during the live presentation:

- "Can I contribute to 529 using the sell from RSU?" The response provided in the live webinar indicated it was best to gift appreciated stock to the 529 and that it could hold different types of investments. In retrospect, Daniel identifies he misspoke and was actually speaking about the UTMA account referenced in the presentation, NOT a 529. A 529 account can only be funded with cash. Regarding RSU sales to contribute to the 529 account, the owner would have to sell the stock resulting from the RSU, accruing any potential capital gain tax. The most tax-efficient consideration would be to look for positions that have a capital loss or sell the RSU stock the same day it vests to avoid capital gains tax altogether.

- "Non-Qualified Stock Option question regarding ways to sell those in a tax efficient manner?" I would direct them to our Concentrated Stock/Equity Compensation webinar we did earlier this year. I believe that may address some NQSO issues and topics. You can view that, and our other videos, on our YouTube channel playlist:

- Question surrounding gifting to your children interning for your company, ". . . better to pay our children on 1099 as compared to W2?" After some additional follow-up Daniel found that yes, it is better to pay your child as a W2 employee (as long as you are a sole prop, LLC single member, or partnership) or a regular partnership. You can deduct the wages you pay your child, you (the employer) don’t have to pay the Social Security and Medicare match, and you don’t have to withhold Social Security and Medicare from your children’s wages. Additionally, your child doesn’t have to pay federal income tax up to the standard deduction amount. And, if they are paid from one of these 4 entity types, he or she doesn’t pay social security and Medicare tax.

Chapters & Bookmarks:
04:15 The Alternative Minimum Tax (AMT) - What is it?
08:04 Option/ RSU Exercise and Vesting Tactics
20:18 Deductible Expense Bunching
28:46 Defined Benefit Plan Opportunities
32:52 Savings Plan Contributions
35:43 Maximize Section 199A Deduction (Qualified Business Deduction)
39:55 Qualified Opportunity Zones
47:17 About Us: Sierra Pacific Financial Advisors, LLC