Renee K. Collins, CPA, CFP®, AFC® MS (Tax)

Tax Planning + DAF A Donor-Advised Fund (DAF) is a philanthropic vehicle that allows individuals to make charitable contributions, receive immediate tax benefits, and recommend grants from the fund over time. DAFs are established under a public charity, which manages the fund's assets and oversees distributions to qualified nonprofit organizations. Tax Implications and Benefits of DAF: 1. Immediate Tax Deduction: When you contribute to a DAF, you are eligible for a tax deduction in the year the contribution is made, regardless of when the funds are granted to charities. This allows for strategic tax planning, especially in high-income years. 2. Deduction Limits: - Cash Contributions:You can deduct up to 60% of your adjusted gross income (AGI) for cash donations to a DAF. - Appreciated Assets: For long-term appreciated assets, such as stocks held for more than one year, you can deduct the fair market value up to 30% of your AGI. This strategy also helps avoid capital gains taxes on the appreciated value. 3. Tax-Free Growth: Assets in a DAF can be invested and grow tax-free. This means the fund's value can increase over time, potentially allowing for more substantial future grants to charities. 4. Capital Gains Tax Avoidance: By donating appreciated assets directly to a DAF, you avoid paying capital gains taxes that would be incurred if you sold the assets first and then donated the proceeds. This maximizes the amount available for charitable giving. 5. Estate Tax Planning: Contributions to a DAF remove assets from your taxable estate, which can reduce potential estate taxes. Additionally, you can name successors to manage the DAF, creating a legacy of charitable giving. 6. Flexibility in Grant Timing: While you receive an immediate tax deduction upon contributing to a DAF, you have the flexibility to recommend grants to charities over time. This allows for thoughtful and strategic philanthropy aligned with your charitable goals. Considerations: - Irrevocable Contributions: Once you contribute assets to a DAF, the contribution is irrevocable. The sponsoring organization has legal control over the assets, though you retain advisory privileges regarding grant recommendations. - Administrative Fees: DAFs may charge administrative and investment management fees, which can vary by sponsoring organization. - Minimum Contributions and Grants: Sponsoring organizations often have minimum initial contribution requirements and minimum grant amounts. In summary, DAF offer a tax-efficient and flexible means to manage charitable giving. They provide immediate tax benefits, potential for tax-free growth, and the ability to support charitable causes over time. However, it's crucial to consider the irrevocable nature of contributions, associated fees, and any minimum requirements when establishing a DAF. If you are into giving in a strategic manager, this could be a great vehicle to donate and reduce your current tax liability.

22

2 Comments

Reconciled Solutions Tuesday Tip: The bookkeeper you choose can have a real impact on your biz, so make sure you're choosing someone who will handle your books with accuracy and expertise. Not sure what to look for? I break it down on this recent episode of the Profit by Design podcast: https://loom.ly/qBdPXks Thanks for having me! #bookkeeping #smallbusiness #tuesdaytip #podcast #businesspodcast

6

🎙️ New Podcast Episode Alert! Small financial mistakes can cost your business big. This week, I’m diving into the top 5 financial mistakes small business owners make—and how to fix them. Don’t let these common issues hold you back! 👉 Tune in to learn:  • How to improve your cash flow  • Why underpricing can hurt your business  • Simple tips to plan for taxes  📥 Listen now! https://lnkd.in/ekXhGEY6  🎧 Don’t forget to download the Financial Mistakes Prevention Toolkit for free!   #SmallBusinessTips #Entrepreneurship #FinancialMistakes #Podcast #BusinessFinance

1

🚀 Considering a retirement plan for your small business? Learn why we typically recommend the Simple IRA over the SEP IRA for group plans on our latest podcast episode! 📈 While SEP IRAs offer high contribution limits, they require equal contributions for all, which might not fit every business's budget. Discover how the Simple IRA can provide a more flexible and financially feasible option for your team. Tune in now for expert insights into tailoring the perfect retirement plan for your business! #SmartSavings #BusinessFinance #RetirementReady

1

What Small Businesses Need To Know About Taxes For 2024 Did You Miss the April 15th Tax Deadline? THIS IS NOT A TRAINING SESSION!!! This webinar is for INFORMATION ONLY!!! Join me for a Tax Webinar on Thursday, September 12, 2024, at 7 pm CST. If you missed the April 15th tax deadline, this webinar is designed specifically for you. While this is not a training session, it will provide crucial information to help you navigate your tax situation. Remember, this session is purely informational, offering you guidance and clarity to take the right steps. Click the link below to register. https://lnkd.in/ey8YXDQX

4

1 Comment

*IRS took his business revenue then we stepped in. The IRS had already issued a notice of intent to levy the business income and issued it to all his customers. Can you imagine what that would feel like if it happened to you? This implies that rather than getting paid for the service the business renders, the IRS will receive all the funds to offset his tax debt. The IRS is well within its right to do this, but I'm also within my rights to fix this situation as his legal Power of Attorney. When the client signed up to work with us, he was extremely desperate to stop the levy as soon as possible. Otherwise, the business would not be able to pay payroll or any other bills. When this occurs, the IRS would often demand for a resolution to be in place before they could lift the levy. However, my team was able to negotiate with the Revenue Officer and got the levy release letter issued within 3 business days of working with us. Maybe you will have a beautiful story like this, but if you don't sign up for your limited-time free consultation you'll never know and likely suffer longer while money bleeds out of your bank account and into the IRS collections... Both the price of the initial consultation AND the actual service will increase in about 10 days so don’t delay. ACT NOW → Leave Tax Debt Behind >>>https://lnkd.in/eCY8dYz Contact my team today at [email protected] Or call 443.741.4188 during business hours to schedule with the team.

1

 One great tax client can lead to many more. When you provide exceptional service to every client, you not only build trust but also create a strong reputation that attracts new business. Always remember, how you serve today determines the success of tomorrow. Treat each client like your business depends on it—because it does! Ready to take your tax practice to the next level? Let’s connect and discuss strategies for growth! #TaxBusiness #ClientSuccess #TaxProfessionals #ClientRetention #BusinessGrowth #TaxStrategy #CPA #SmallBusiness #Entrepreneurship #TaxServices

2

1 Comment

How Could Bench Do This to Clients—Especially This Close to Tax Season? Bench’s sudden closure has caught countless small business owners off guard at one of the worst possible times—right before tax season. It’s more than an inconvenience; it’s a serious disruption that leaves entrepreneurs scrambling to find a reliable bookkeeping solution on short notice. But don’t settle for another AI-driven platform that might leave you hanging again. At McFadden Accounting, we believe in real conversations, tailored advice, and strong professional relationships that technology alone can’t replicate. Our team provides: Personalized Guidance: Get expert advice specific to your business and industry. Stable, Year-Round Support: We’re here to answer questions and address concerns any time, not just when it’s convenient for software updates. Peace of Mind: Trust that your financials are in good hands, even during the busiest tax season. If you’ve been left stranded by Bench, send me a direct message or visit our website to learn how McFadden Accounting can help you prepare for tax season with confidence—no AI replacements necessary. #TaxSeason #SmallBusiness #AccountingServices #BenchClosure #Entrepreneurship #McFaddenAccounting

2

This episode is packed with actionable advice to help business owners create a strategic, sustainable plan for their finances using the Profit First system. Implementing even one small step can transform how you view and manage your business funds. Tune in to learn how taking control of your money today can help you build a thriving, profitable business for the future. Ready to start paying yourself first? Listen to the full episode now and take your first steps toward a more profitable business strategy! https://lnkd.in/gEZ_ux9Y

2

When you're ready to save more and stress less, it's time to consider an S Corp. 💯 From landscapers to lawyers, savvy business owners know: S Corps are the way to go for those earning $50K or more.🫰 Schedule a FREE demo to transform your practice and save your clients BIG! https://bit.ly/3ApWxFQ #cpa #scorp #fica #llc #savings #earnings #business #taxes

5

When you're ready to save more and stress less, it's time to consider an S Corp. 💯 From landscapers to lawyers, savvy business owners know: S Corps are the way to go for those earning $50K or more.🫰 Schedule a FREE demo to transform your practice and save your clients BIG! https://bit.ly/3ApWxFQ #cpa #scorp #fica #llc #savings #earnings #business #taxes

2

🎉 **Great News for Business Owners!** 🎉 The *Business Basics Grants Program* has officially been announced, and this is a fantastic opportunity for small businesses to gain essential support! 🔑 **What’s Covered in the Grant?** If you’re looking to take your business to the next level, this grant covers key aspects that are vital to your growth, including: - **Business Plans**: Let’s map out a clear, strategic plan for the future success of your business. - **Business Structure Advice**: Whether you're starting out or considering restructuring, we can advise on the best structure to minimize tax, protect your assets, and enhance scalability. - **Budgets**: Planning for financial success is essential. We’ll help you establish realistic budgets that align with your goals. And a lot more activities in business advice, marketing and website upgrades. 💡 **How We Can Help:** At Abbaco Accounting + Advisory, we specialize in providing tailored advice for small business owners. With the support of this grant, we can work closely with you to: - **Develop your Business Plan**: From market analysis to financial forecasting, we’ll ensure your business has a solid roadmap. - **Business Structure Review**: We’ll review your current structure or assist in setting up a new one that maximizes efficiency. - **Comprehensive Budgeting**: Let’s dive deep into your numbers to create a budget that supports growth while keeping costs under control. 💼 **Why This Matters?** Building a strong foundation is crucial for long-term success. By addressing these core areas, you can: - Improve your financial management - Identify growth opportunities - Streamline operations and boost profitability 🌱 **Don’t Miss Out on This Opportunity!** Grants like this can provide you with the financial backing needed to implement the changes that drive real business growth. If you're eligible, let’s get started on your application and help you access the funding needed to succeed. All details required on this link: https://lnkd.in/gZyTPwvA #SmallBusiness #BusinessGrowth #Grants #BusinessPlans #BusinessAdvice #AbbacoAccounting #BusinessQueensland #Budgeting #FinancialSuccess

7

2 Comments

When starting a business, it's important to integrate one’s entity structure, funding strategy, and tax planning right from the start, rather than ticking them off one at a time on your to-do list. This integrated approach ensures your business is strategically positioned for success and growth from day one. #CPA #entrepreneur

12

What will you do differently this financial year to enable your business to thrive? Conducting a past-year review with our experienced advisors will provide valuable insights for this financial year's goal-setting. We can help. Get in touch today. #businessstrategy

2

Don’t let partnership and S-corp basis be the boogeyman in your closet; there’s nothing to be afraid of! With our “Partnership and S-Corp Basis” toolbox, you can stop ignoring partnership and S-corp basis while hoping for the best. Easily calculate basis in your individual tax clients’ partnerships and S-corps, and learn what it means to be “at-risk” and whether you need to track both basis and “at-risk.” It’s time to get rid of the boogeyman: https://lnkd.in/e4ik-uWB #BrassTaxPresentations #Tax #Taxes #Taxation #TaxSeason

3

𝗥𝗘𝗔𝗟 𝗘𝗦𝗧𝗔𝗧𝗘 𝗮𝗴𝗲𝗻𝘁𝘀 𝗶𝗻 𝗧𝗘𝗫𝗔𝗦!!! You can now operate as an LLC! This not only means more legal protection, but potentially tax savings! https://lnkd.in/dGXU6RG2 DM me for more info #realestateagent #LLC #SCorp #CPA #BusinessCoaching

1