#562: Tax Strategies That Sound Illegal (But Aren’t) With Candy Valentino – Amy Porterfield

Are you worried about how to maximize your tax savings? More importantly, how do you achieve tax savings without running the risk of running afoul of the law? Fortunately, there are legal ways to gain a tax advantage without committing a crime. Here to discuss some of those strategies is Candy Valentino, a tax attorney and personal finance coach, in an episode of the podcast hosted by Amy Porterfield, #562: Tax Strategies That Sound Illegal (But Aren’t).

Valentino begins the podcast by discussing the 10 most common misconceptions about taxes. Many people view taxes through the lens of “pay now, or pay later”- it’s better to simply pay the taxes when due, instead of trying to look for loopholes or opportunities to Procrustean plans. In truth, Valentino explains, “there’s a lot of room to maneuver. You have to understand what the tax laws are in order to do that.”

Valentino and Porterfield divulge information that to many will come as a surprise – several strategies are available to save money tax wise, and those strategies don’t flaunt the law. According to Valentino, there are four strategies people should consider utilizing:

1) Time your income – A method of shifting income from a year in which you are in a higher tax bracket to a year in which you are in a lower tax bracket by delaying the income until December of the following year.

2) Smart Retirement – Retirement accounts like 401Ks, traditional IRAs and Roth IRAs, enable you to lower your taxable income and save for retirement at the same time.

3) Tax Credits – A tax credit would reduce your taxes dollar-for-dollar. For example, having children and deducting childcare expenses can give you more tax credits.

4) Tax-Loss Harvesting – If you have investment losses, you can use that loss to reduce your taxable income.

For more information on these topics, check out the podcast #562 that is available on Amy Porterfield’s website. As the financial year is fast approaching, this knowledge is essential for reducing one’s tax burden and maximizing savings.
Most people may not understand the full extent of their tax rights and can make costly mistakes during tax season. However, with the right guidance and proactive strategies, managing taxes can be made easier, and even profitable.

Candy Valentino, a senior tax advisor and Enrolled Agent with ProVision Wealth, recently collaborated with Amy Porterfield to discuss some tax strategies that “sound illegal (but aren’t)” on her online business podcast #562. Valentino highlights how taking advantage of certain tax opportunities can be a great benefit, and can even help people save money on their taxes.

Valentino delves further into the importance of having a tax strategy, and how proper planning and guidance can help taxpayers become more educated and aware of their options. She indicates that, depending on a taxpayer’s goals, some strategies and deductions can be maximized for greater savings.

Valentino explains different strategies in detail, such as how entrepreneurs can set up their businesses to become pass-through entities in order to reduce tax liability. She outlines strategies like the qualified business income deduction and how entrepreneurs can set themselves up so that they have lower taxation rates and save money.

Valentino also emphasizes the importance of understanding the details of the individual and offers tips on how to track expenses and choose the right deductions. She touches upon the importance of having a certified accountant and/or having a professional help build a tax strategy in order to remain compliant with complicated rules and regulations.

By understanding their rights, individuals and entrepreneurs can review their taxes and discuss with their tax professional what steps need to be taken to make sure taxes are filed correctly. Taxpayers can take an active approach in managing their taxes, such as in Valentino’s case, and ultimately save money in doing so.