Ryan Odom

💰 Helping Solo Business Owners and High W-2 Earners Plan/Save on Taxes ⭐️ Ex-Financial Advisor 👨‍🎓 Free Course with 12 Tax Saving Strategies⬇

[Ryan Odom @ryanmarkodom]

@niccruzpatane They've got a store right across from my apartment & seem very cool

[Ryan Odom @ryanmarkodom]

Forgot to add a PTET election. Another $10K - $15Kish deduction that I wouldn’t get without making this election

[Ryan Odom @ryanmarkodom]

My exact tax plan

- LLC taxed as an S corp (saves ~$12K/year in self-employment taxes)
- Expense anything ordinary and necessary for me to run my business (computer, Google, Calendly, LinkedIn, etc)
- Accountable plan to reimburse myself for my home office, health insurance, vehicle mileage, etc ($10K - $15K/year deduction)
- Augusta rule. My business rents my apartment from me 1x a month for a content day (to record videos, make content, review content, etc). $520 a day * 12 = $6,240 tax free income
- Solo 401k
- Use my solo 401k to get $72K into my Roth IRA (mega backdoor Roth)
- Backdoor Roth to get another $7,500 into my Roth IRA
- Direct indexing to not pay cap gains taxes on realized gains now or in the future. Which avoids a 28.1% tax on every dollar of realized gains
- Asset location. Just means I put my high-risk high-potential-for-reward investments in my tax-free Roth accounts

Pretty much it. Layers get added when married and kids. Add her to payroll (she is a contractor at the moment to me and helps with all my social media stuff). She has her own business so she gets to run a similar playbook. Add her to my solo 401k plan. Use that to get $ into a Roth IRA for her. Trump accounts for kids. 529 plan up to $35K for kids. Etc

Maybe equally important are all the things I don't do. Short-term rentals/buy real estate (great piece of the tax code but I have no interest). Move to Texas - no thanks. Go buy a laundromat, car wash, or small biz.

This is my plan. The fun part is making this your own to match goals, values, etc

[Ryan Odom @ryanmarkodom]

Being taxed as an S corp is great but I cannot tell you how many high-earning S corp owners miss out on a $50K, $100K, $300K deduction by not optimizing their salary for the QBI deduction

Example:

1 - Biz owner makes $1m/year profit in California, non-SSTB

2 - Biz owner has an S corp salary of $50K (real example). This gives him a 25K QBI deduction because he is subject to the wage-based limitation but if he optimized his salary to let's say $260K he gets a $130K QBI deduction. $105K difference in deductions and at a 37% federal tax rate plus 12.3% state, you get a $51,765 tax savings. Every. Single. Year. Just by having a tax strategy

3 - This can then be layered into a Pass-Through Entity Tax election (best for states with high state taxes) where the business pays the person's state taxes. Instead of a $10,000 SALT deduction, he'll get a ~$60,000 deduction. Another $28Kish in tax savings

Now add in a layer of solo 401(k)s where he can do a $72,000 tax deferral vs. a $12,500 max with a SEP IRA

This is how good planning works and the big problem with salaries is they have to be paid by 12/31 and ideally elected by 3/15. End of the year becomes very difficult with registering employer accounts with a state and being in limbo with the IRS, waiting for confirmation that a late election is confirmed. Get on top of it early with your advisor/tax team please :)

[Ryan Odom @ryanmarkodom]

@BowTiedYukon 😂

[Ryan Odom @ryanmarkodom]

@morganisawizard Lol

[Ryan Odom @ryanmarkodom]

@JBMason 🎯

Applies to dating (date your wife!), fitness, etc

[Ryan Odom @ryanmarkodom]

@jakewoolf 😂

[Ryan Odom @ryanmarkodom]

@abhishekf96 Never seen government stuff look so good. Very cool

[Ryan Odom @ryanmarkodom]

@InvestingAddict 😂

[Ryan Odom @ryanmarkodom]

@smarthelping 100%

[Ryan Odom @ryanmarkodom]

Michele and I moved into our new place

Has me thinking about the buy vs. rent debate. Again. No right answer here but the #s are fun to run. Currently we pay $4,155 for a 1-bedroom in Huntington Beach. Has every amenity we could ask for. Big resort-style pool. Great gym. 1 block from the beach which we walk every morning and every evening. Can see the water from our unit. Etc. I pop on Zillow and a comparable townhome runs from about $1.6m to $3m. 2 bed. Mortgage alone runs me $8,900/month with 20% down on a $1.6m property. Then add in maintenance, insurance, property taxes, etc and in no scenario would owning "win" by the #s. Even at a 3% 30-year fixed rate. Even with 10% down. We'll prob own some day. I'd like to. But fun little calculations like this sure remind me I'm in no rush to do so

[Ryan Odom @ryanmarkodom]

@ContrarianSaver Yeah

[Ryan Odom @ryanmarkodom]

@longfucius Hermosa is great. Is Baran’s worth the hype?

[Ryan Odom @ryanmarkodom]

Moved back to CA

[Ryan Odom @ryanmarkodom]

@jeremy__taggart Yeah

[Ryan Odom @ryanmarkodom]

@edisonbtc That’s the plan

[Ryan Odom @ryanmarkodom]

@SamSamSidyBJJ The new house will have double the monthly payment for the same price. Is he planning to buy in OC?

[Ryan Odom @ryanmarkodom]

@TraceyRyniec Yep

[Ryan Odom @ryanmarkodom]

@5partandawg Not $30m

[Ryan Odom @ryanmarkodom]

@EDUreboot Very true

[Ryan Odom @ryanmarkodom]

@5partandawg And I’ll have a $30m investment portfolio to pay for it