Educational workshops in taxation
Biblical message in tax planning
A Christian who uses God-given talent in accounting and finance to help people help themselves.
January 2022 webcast: Tax Planning Strategies by Fan Li, CPA (in Chinese)
January summary https://us02web.zoom.us/rec/share/5W6euccIqAioayBkvDHntxORwlGr5gUs4d-5J0nPe-OVcCM13chWPPhnmXZS98PS.vhFj0f9YlA44WhVx Access Passcode: SmartTax2022M1!
Keynote speaker: Fan Li CPA, MST, Prominent CPAs & Associates, LLC www.prominentcpa.com Phone: (312) 450-2347 / Email: accounting@prominentcpa.com
February 2022 webcast: Back Door Roth IRA Step by Step (in Chinese)
Meeting Recording: https://us02web.zoom.us/rec/share/-Ms0QXhygU9KUsqfAqbne6syMCtU946ztgDEQloY4nU8QVps7TjcJYUW1uvJ8jav.OHjRwe7IqrRJZ9U1 Access Passcode: SmartTax2022M2!
• When to do Roth IRA, and when to do traditional IRA
• Step by step backdoor Roth using Mike’s Vanguard example
• Two strategies to avoid the pro rata Roth conversion rule
March 2022 webcast: yoga, life insurance, taxation, and public speaking (in ENGLISH)
Please watch a March 2022 podcast with Steve Parisi, IBC Global President: yoga, public speaking, youth life insurance, and how to grow small business from good to great.
April 2022 webcast: College Financing (in Chinese)
Please access smart tax for smart college education finance workshop” at https://us02web.zoom.us/rec/share/NXxpOCT_9UKuuiwxVXD2eaoNNBANzHLLnnY08MGdiJyJvzcwzztcm_V1lxA1bH07.z3_yOENCP7QOFMZH Access Passcode: SmartTaxApril22!
• Part 1: time 0 – 49: how to build characters and shape the right career path for our children
• Part 2: time 49-81: FAFSA, CSS and planning strategies
The keynote speaker Wei Zhang can be reached at Mobile: 503-442-9794 / Email: wei.zhang@hife-usa.org / Website: www.hife-usa.org.
April 2022 webcast: 美国遗产规划那些事 (in Chinese)
Please access the recording at : https://www.youtube.com/watch?v=y52sxktVSLY
1. Engage a few estate attorneys to go through your estate/will/financial needs
2. Prepare your letter of instruction of financial assets/income distribution and go through with me or with your estate attorneys
3. Consider a professional successor trustee
4. List all your assets based on the attached questionnaire and think through beneficiary arrangement and post-life arrangement
May 2022 Webcast for CAPA (in Chinese)
为马州/维州公司职员(W-2)家庭定制， 旨在启发家庭做出最优化的税务计划以及⼀⽣的财富积累。讲座涵盖以下内容 : 1. LLC的十个好处和三个缺点 2. . 记账技巧和税收表格 Schedule C 3. 马州/维州LLC申请表手续详细讲解 Contact help@smart1040.us to register: (1) May 18 8:30 pm ET (Maryland LLC); and (2) May 24 8:30 pm ET (VA LLC)
May 18, 2022 马州LLC税务规划讲座 (in Chinese)
Recording: https://us02web.zoom.us/rec/share/fny3H8B7_WCGHHFnwDDDf_VjgutbwG9KM8d4Z4iimFmgP0L1ydcSVdP9wFXQpm78.fTok7wB9qWiewK_l Access Passcode: CAPA-MC0522!
Note: Maryland is ranked #35 (1 the best and 50 the worst) among 50 states in terms of tax burden. Check with your CPA. CFP and EA for smart tax planning.
May 24, 2022 Virginia LLC 税务规划讲座 (in Chinese)
1. Recording: https://youtu.be/ONK29mMP7gY
2. Slides (listing pros and cons)
3. Family Foundation workshop (starting Wednesday 7:30pm) for eight weeks (fee based)
4. Schedule C (LLC) book keeping template
5. VA LLC setup instruction 6. Book for tax deductions
May 31, 2022 Workshop Coverdell Education Savings Account (in Chinese)
Topic: Coverdell Education Savings Account Week 1 May 31, 2022 Meeting Recording: https://us02web.zoom.us/rec/share/dHxrkBoGnmIejw2CTfP4NySKSjrRMvVoMefHOF7fqca1xvTQUNpAlOoWWVVVSVrq.bKGaESF4Fmr4AbJg Access Passcode: ESAWeek1! 1. I interviewed Sasha, my daughter about how high school teaches finance and tax 2. I went over a strategy to walk around the $220,000 modified AGI to fund ESA 3. I talked about a strategy to elongate ESA even if my child is over 30 years old 4. I projected ESA investment performance with S&P 500 simulation 5. Please contact Coach Mike at help@Smart1040.us for consultation and planning model
June 2022 CAPA-MC Smart Tax Workshop (Ten benefits of LLC)
June 14, 2022 08:46 PM Meeting Recording:
Access Passcode: CAPA-MC0622
Key points:
1. We discussed the importance of projecting tax return simulations with important business decision
2. We reiterated the importance and usefulness of an LLC to pay compensation to children (to set up minor Roth IRA) and deduct expenses that incur during the business operations
3. We ran a scenario of how to maximize college grant and financial aid from Ivy League (part-time W-2 and active loss from short-term rental).
July 2022 CAPA-MC Smart Tax Workshop – Top Ten Side Jobs for your LLC
7/19/2022 Meeting Recording:
Access Passcode: CAPAMC0722!
1. An ideal side job meets a few criteria: (1) use our brain and service; (2) virtually feasible; and (3) linking to your forte and expertise
2. Rental LLC and family foundation are two good side businesses that (1) produce income, (2) absorb business expenses, and (3) pay our children with minor Roth IRA setup
3. Suggested side jobs include IRS enrolled agent (info flyer attached), insurance agent, real estate agent, instructor (chess, bridge, Chinese, ma-jiang, cooking, photographer, social media influencer)
August 2022 Smart Tax / Smart Savings Workshops
August 2022 高通胀低股指的时期，看看老牌的人寿保险公司推出的增值产品长得什么样?
主讲人：丁博士，中金投行，美林财管，纽约人寿，南开校友😊
August 2, 2022 Meeting Recording: https://us02web.zoom.us/rec/share/JI0CiiZE43u696NMEa5eQRL7G-1mIHd6lj99SKb963kLRDX77vJDLFeryd8Hch27.L4T5ghhcc6k4tKxm
Access Passcode: DingNYL0822!
1. Dr. Ding stressed the importance of knowing yourself and your family: income stability, family stability and health stability
2. New York Life released three products that fit into different age group and financial need people: (1) Custom Whole Life with premium deposit account; (2) Secure Term Choice Fixed Annuity; and (3) IndexFlex Variable Annuity
3. Financial products require your knowledge, patience and peacefulness. Seek professionals for advice. Measure three times and cut once!
August 2022: CAPA-MC Smart Tax Workshop - Tax Documentation to Reduce Audit Risk
Meeting Recording:
Access Passcode: CAPAMC0809!
1. We discussed the audit risk red flags (income, effective tax rate, and overstating expenses)
2. I demoed schedule C expense
3. Contact me for Schedule C, Schedule E and FAFSA/CSS template
August 2022: CAPA-NoVA workshop: How to invest in college town real estate? By Dr. Thomas Forbang.
1. Recording is available at CAPA-NoVA membership zone
2. Location location location: large university; large hospital and military base
3. Magic lease contract: student/parent cosign to lease the whole house
4. Townhouse >> SFH >> condo
5. Upgrade and update to reduce the headache
6. Do not kill the golden egg laying duck (if the house is self-sustainable, keep it, even if your child graduates from that college)
7. Steve Jobs — "Don’t educate your children to be rich, educate them to be happy so they know the value of things and not the price.”
8. Mae West — ‘You only live once, but if you do it right, once is enough.”
9. Thomas — "You can never be happy if you are unhealthy."
10. Thomas can be reached at thomas.forbang@gmail.com
Stay smart; stay sharp.
Coach Mike, CFP, CPA, CFA, EA
August 2022: CAPA-NoVA workshop: How to obtain the IRS enrolled agent (EA) license? Workshop recording is viewable from the CAPA-NoVA membership site.
1. The 87,000 new IRS hires will partially backfill retirees, expand IT / op functions and the newly added auditors will be much fewer than that number.
2. EA license provides many benefits and conveniences to us, such as (1) a federal level license trumping all state level; (2) virtual earnings opportunity to do federal tax return or tax planning nationwide; (3) the one of the three licenses (tax lawyer or CPA) that can defend client in front of the IRS (much more lucrative than tax return job); (4) set up an tax advisory LLC to absorb up to $5,000 set up cost; (5) hire your children to do chores and IT work (set up minor Roth IRA, my big favorite!); (6) deduct business expenses, home office, supplies, laptop, iPhone, etc.; (7) do your own family / friend taxes and save $$$ for them for generations; (8) low entry level requirement (no green card, no SSN, no accounting background, no college degree: no problem); and many more
3. EA licensing steps include (1) PTIN (IRS Form W-12); (2) three parts of EA exam (see CAPA-NoVA membership site to download three sets of study materials); (3) practice exam questions and pass the SEE exams via Prometrics; and (4) continual education.
Be financially prepared, financial shielded and financially smart.
Coach Mike, CFP, CPA, CFA, EA (help@smart1040.us; 703-606-0270)
September 2022 Smart Tax / Smart Family Workshops
September 2022 如何合理合法合规地规划家庭资产房产和财产？ 如何避税，省心，防渣男，防小三 :)
周二（9/6/2022）晚上9pm，翁莉律师女士将给社区的朋友们做一个家族信托”疑难杂症”讲座。绝对硬核 绝对超值 [爱心]
欢迎朋友们积极参加：
[玫瑰]Zoom 链接： https://zoom.us/j/8782712588;
Meeting ID: 878 271 2588
Smart1040.us
Coach Mike, Certified Financial Planner
September 9, 2022: Federal Student Loan Forgiveness Workshop
Here is the summary of federal student loan foreignness workshop. Recording viewable at membership site of CAPA-NoVA. https://capanova.org/
1. It is critical to file FAFSA (starting 10/1/2022) to demonstrate your eligibility to have your federal student loan forgiven;
2. When your assets generate returns higher the student loan rate (4.99% by student-borrowed loan and about 7% by parent borrowed loan), to borrow federal loan is a good idea to maximize the rate arbitrage; and
3. Wealthy families tend to borrow more student loans, providing a hint of rich people’s mindset: use federally subsidized student loan to protect the uninterrupted compounding of family wealth.
Be financially prepared, financially educated, financially shielded and financially smart.
Coach Mike, CFP, CPA, CFA, IRS EA (help@smart1040.us; 703-606-0270). To schedule a tax consult? Click https://calendly.com/smart1040
CAPA-MC Smart Tax Workshop September 2022 – Front door, back door, side door Roth and Minor Roth IRA
Workshop recording
Passcode: CAPAMC0922!
1. We talked about the tax loophole of backdoor Roth and Roth conversion, bypassing the income phase out limit
2. We talked about the importance of diversifying our retirement fund (S&P500, real estate, small business, and more: all wrapped into the Roth accounts)
3. Two books I recommend are (1) Retirement timebomb by Ed Slott and (2) Self-directed IRA handbook by Matt Sorensen
4. A seven-year old child, with minor Roth and $6K Roth throughout his / her life, can grow a tax-free, fee-free retirement fund over $400M by age 90 (based on actual S&P 500 historical return). See an illustration attached. Challenge me if you have a better investment solution or if my assumptions are unfounded
5. I will launch a financial wellbeing against the headwinds program (8-week / $250 fee) starting from 9/14/2022 (see attached flyer)
Think and invest like top 1% families (diversification, tax efficiency, and legacy planning).
Coach Mike
· Smart1040.us (see prior workshop recordings at the Blogs page)
· Tax consult: https://calendly.com/smart1040
· $60/12 month donation is welcome to help me help you and half money will be directed to CAPA-MC
CAPA-NoVA Smart Tax Workshop September 2022 "How to Optimize your FAFSA/CSS Filing to Maximize Financial Aid Outcomes"
Here is a summary of Dr. Michael Chen’s workshop. Recording viewable from CAPA NoVA membership zone.
1. Tax planning is an active and proactive process, starting years ahead of your child’s college age
2. Four ways to shift and shelter your parental aseets (rental property, checking account, brokerage account and more)
3. Which top-ranking college you should consider to apply and which you should shun
4. Mr. Chen can be reached at 408-220-3036 or https://www.mastermindfinaid.com/. WeChat: michaelfinaid
Be financially prepared, financially educated, financially shielded and financially smart.
I Bond Tax Planning Workshop Summary 09/29/2022
Passcode: IBond0929!
1. We discussed (1) I Bond Pros and Cons; (2) How to work around the $10K/year limit; (3) How to avoid paying federal income tax on I Bond interest; and (4) Step by step instructions.
2. We also discussed converting I Bond to UTMA to avoid kiddie tax
3. Minor Roth IRA and family foundation are my favorite topics too.
Smart tax; smart family.
Mike
October 2022 Smart Tax / Smart Family Workshops
CAPA-MC Tax-Free Retirement Workshop (10/4/2022)
Passcode: CAPAMC1022!
1. Eight sources of tax-free income are (1) social security benefits (making sure your provisional income below the threshold); (2) Roth IRA/401(K); (3) Roth annuity (fixed index annuity better); (4) loan from whole life; (5) loan from IUL; (6) securities backed line of credit (non-dividend paying stocks); (7) home equity line of credit; and (8) health savings account.
2. The gold window to perform Roth conversion is age 59.5 – 72.
3. Traditional 401K/annuity/IRA are time bomb and we need to defuse them by social security benefit time.
Talk with your accountant and financial advisor. Measure three times and cut once.
Be tax smart; be retired smart.
Note: You are cordially asked to donate $60 to make my program sustainable and scalable (PayPal to help@Smart1040.us). Portion of the proceeds will be redirected to CAPA-MC donation. Thank you!
Coach Mike, CFP, CPA, CFA, EA
Owner of Smart 1040 LLC, a Maryland LLC (Smart1040.us)
Help@Smart1040.us or 703-606-0270
ROTH Retirement account
November 2022 Tax Workshop
CAPA-MC Roth Retirement Account FAQ Workshop 11/1/2022
Passcode: CAPARoth1122!
1. My suggested sequence of funding is Health Savings Account (yourself and then major-aged children, $7.7K per account); Backdoor Roth ($6.5K+$1K catchup); and Roth 401(K) (up to $22.5K+$7.5K, stopped at the employer matching % is reached).
2. Social security benefit taxation is sensitive to provisional income, meaning traditional 401(K)/IRA withdrawals and RMDs will hurt us in the long run.
3. Roth conversion from now to 72 is a wise move given the low equity market, but not touching your next tax bracket
4. Self-directed HSA/Roth 401(K) and Roth IRA are three tax free ways to buy real estate (with non recourse loan) or other alternative assets that are somewhat isolated from the stock market downturns.
Coach Mike, CFP, CPA, CFA, EA
CAPa-nova tax workshop 11/4/2022
Ten Tax Code Gold Pots that we should Spot
Dear CAPA parents and supporters.
Here is the workshop about ten tax sweet spots discussed on November 4, 2022..
- Primary residence: how to deduct home office (even at your rental apartment, 2nd home or RV)
- Primary residence: Augusta 14-day rule
- LLC $5K Setup cost $5K and $5K organizational cost
- Hire your children by your LLC
- Minor Roth IRA parent matching (highly debatable. Consult first)
- Self directed Roth 401(K): double your 401(K) loan options ($50K per 401(K)
- Self directed Roth 401(K): Use non-recourse loan to buy real estate and lease to siblings or fiancefiancé(e)
- Use 529 money to cover your child’s campus rental property
- Long term capital gain: Tax gain harvesting at 0% tax rate (beware of the stack -up formula)
- Short term capital loss $3K/year: Tax loss harvesting
- Bonus sweet spot: Health Savings Account to buy long term care / pay Medicare premium
Next month we will have a wealth manager Vijay to talk about financial planning in the uncertain times. I will run a workshop about 2022 year end tax filing preparation steps. Stay tuned.
Next month we will have a wealth manager Vijay to talk about financial planning in the uncertain times. I will later run a workshop about 2022 year end tax filing preparation steps. Stay tuned.
Be financially prepared, financially educated, financially shielded and financially smart.
Yuyan, CAPA-NoVA President
Coach Mike, CFP, CPA, CFA, IRS EA (help@smart1040.us; 703-606-0270).
To schedule a tax consult? Click https://calendly.com/smart1040
Christian Family Home Schooling Tax Planning Workshop November 2022
Passcode: ChristianHS2022!
Dear Christian brothers, sisters and families. Please see the Zoom recording and slide deck.
1. Use LLC or other business account to maximie business expense deduction
2. Use 501c3 non profit to apply for grant to fund education
3. Use family foundation as a tool to obtain 30% AGI deduction, invest in properties or securities to compound value and donate to church or home schooling 501(c)(3)
Be financially prepared and financially smart.
Mike Nie, a Jesus follower, CFP, CPA, CFA, IRS Enrolled Agent
Family Foundation Tax Planning Workshop November 2022
Here is the summary of Family Foundation workshop on November 30, 2022. Recording is viewable at our membership site of CAPA-NoVA. https://capanova.org/
1. Three key percentages: (1) 30% of AGI as your annual donation limit; (2) 1.39% tax rate on investment income or earnings; and (3) 5% of assets to be donated or as operation costs.
2. My children talked about how FF helped them better involved in their life and community. FF can be an effective tool to preserve family value, vision and virtue
3. IRS data analysis and slides attached too
Welcome your donation to mike@smart1040.us by PayPal to help me research and provide useful materials.
Be financially prepared, financially educated, financially shielded and financially smart.
Christian Family Ten Tax Tips Before the 2022 Year End
Dear Christian brothers, sisters and families. Please see the Zoom recording and slide deck.
Date: 12/13/2022.
Passcode: 10Tips2022!
Ten tips (and one bonus) are
1. Auto: miles for business; miles for doctor appointments; and miles for charity work
2. Business meals are 100% deductible. Need 5Ws for documentation
3. Pay your child (by 12/31/2022) and invest in Minor Roth IRA when stock index is now low
4. Roth conversion: see the recommended book in the attached slides
5. Donation: family foundation (30% of AGI), donor advisors fund (60% of AGI) and public charity. Strick receipt requirement
6. Health savings account and FSA: set up a high deductible health plan by 12/16/2022 enrollment period. Health conditions should be factored into.
7. Holiday travels by family members: board of advisors’ meeting and meals for your LLC
8. W-2 federal tax withheld final look and W-2 adjustment in 2023
9. Solo 401(K) for your single member LLC (spouse included)
10. Documentation template (see attached: Schedule C, mileage log, home office and travels)
11. Bonus tips: smartly use our annual gift limit ($16K per parent to each child) to invest in various fields
I cordially seek your generous help ($60 or more) to my 2022 workshops. I will then re-donate 80% of your money to church. Every heart is cherished and cheered. Use the attached QR code to pay by credit card or PayPal help@Smart1040.us.
Be financially prepared, financially educated, financially shielded and financially smart.
Coach Mike
Appreciate your donation to help me help yourself
PayPal to help@Smart1040.us. Half of the donation will be used to support CAPA and other educational groups. Thanks.