SOLO 401K: A TAX SAVING STRATEGY FOR REAL ESTATE INVESTORS DMITRIY FOMICHENKO
However, the average individual tax bill doesn’t project a clear picture of average tax rates. For an instance,
the average person earning between $125,195 and $175,817 was taxed at 21%. If you made $150,000
during the given financial year, you would’ve paid $31,500 in taxes. That’s nearly four times of the average
individual tax bill in 2013.
If you’re a fairly successful real estate
investor, saving on taxes could be a
potential challenge for you, and you
might have been spending a lot of time
figuring out effective tax strategies.
SelfDirected Solo 401 K Plan: 3 Tax
Saving Strategies For Realtors
At Sense Financial, a major part of our
clientele
involves
real
estate
professionals, seeking effective methods
to cut their taxable income. As a self
directed Solo 401k plan provider, we
help our clients cut their taxable income
by a huge margin; precisely up to
$59,000 in 2016.
A Brief Insight into SelfDirected Solo 401 k Plan
Solo 401 k plan is a qualified retirement plan from the IRS,targeting owneronly businesses and selfemployed
individuals. As a part of the annual contribution limits, you can contribute up to $53,000 in 2016 along with a
catchup contribution of $6,000 for professionals above the age of 50 years.
The primary attraction of this plan is its ability to invest in a plethora of investment options, including real
estate, tax liens, tax deeds, mortgage notes, private lending, and private businesses along with the traditional
investment options.
Contribute up to $59,000 of Your Real Estate Income in 2016
If you are a realtor with no fulltime employees, you can contribute up to $59,000 in 2016. The contribution
includes a salary deferral contribution along with a profitsharing contribution.