EP17: 6-Figure Tax Savings for Brand Owners (and important tax code changes) | Dan Nicholson of Nth Degree CPAs
Dan Nicholson, founder of Nth Degree CPAs, is passionate about working with business owners to create financial security. He and his team work to expand financial capabilities and increase the profits of their clients at all points throughout the year. Dan graduated Summa Cum Laude with emphasis in both Accounting and E-Commerce Information Systems from Seattle University. He served as a member of the Governmental Accounting Standards Board (GASB) and has worked in finance and accounting roles at Clark Nuber, UPS, WaMu, as well as Deloitte and Touche’s Audit and Enterprise Risk Services. If you hate thinking about taxes and accounting in your business, you aren’t alone. But what if a few simple tweaks could leave you with six-figures in tax savings? This week, Dan is sharing a whole list of ways that you might be leaving a ton of your cash on the table. Regarding small business C corporations: "say you sell your eCommerce business after five years for $10MM and it was a C Corp that entire time, you wouldn't pay any capital gains tax on that transaction, which would save you somewhere around $2.3MM." -Dan Nicholson Some topics that were discussed include: Important tax code changes that ecommerce owners need to know. Specific strategies to help ecommerce business owners save money on taxes. All about the WayFair ruling, and how it has made it easier to trigger “nexus.” How few transactions it actually takes to trigger nexus. How classifying inventory has drastically changed under the new tax code. You may be eligible for an R&D Tax Credit Leveraging your Entity Structure to eliminate the need to pay Capital Gains Tax. Reasonable Compensation Study - how this alone could save you $20-50K each year. Augusta Loophole - How to write off your board meetings. Administrative Home Office - Making your mileage count. Solo 401k - Take advantage of the opportunity to setback an additional $37K. Contact Dan Nicholson: Nth Degree CPAs Dan’s LinkedIn Nth Degree Facebook Page References & links mentioned: Connect with Dan for Q&A in his weekly Office Hours Subscribe & Review The Commerce Lab Podcast: Thanks for tuning in to this week’s episode of The Commerce Lab Podcast! If the information shared in these weekly conversations and interviews have helped you in your business journey, please head over to iTunes, subscribe to the show, and leave us an honest review. Your reviews and feedback will not only help us continue to deliver great, helpful content, but it will also help us reach even more amazing entrepreneurs just like you!