ROTH 401ks are powerful tools for business owners. In fact I use this strategy myself each year as part of my overall financial strategy. Here is the simple math even if you start today. You contribute $23,000(2024 Rules) to a ROTH 401k account, if you are on the business payroll. If that money were to grow at 8% a year on average which is conservative because the S&P500 averages 10% since inception. Then over the next 30 years, until you are ready to retire, you would have over 2.7M in savings. Now as you retire and withdraw funds yearly this money is tax free! Lets say your business is d ..read more

Inflation continues to  chip away at business profitability and therefore cashflow. What is worse is that it does not seem like it is going away anytime soon. The Fed has maintained its elevated interest rates and the recent stats show inflation is still above the Feds target rate. What should you be doing for your business to survive and thrive in this market? Design a plan to drive more revenue to your business by ensuring you understand the key drivers for new patients or clients. Always be focused on the top line as that is the hardest get consistent Once the topline is optimal focus ..read more

Are you the only employee of your 1 man S Corporation? Well there is a unique tax straegy for you to super charge your tax deductions and save for retirement! For small business owners operating as S Corporations and serving as the sole employee, the Solo 401(k) retirement plan presents a compelling opportunity to achieve significant tax advantages while building a secure financial future. Tax-Deferred Contributions One of the primary advantages of a Solo 401(k) for S Corporation owners is the ability to make tax-deferred contributions. As both the employer and employee, you can contribute up ..read more

In a promising turn for businesses, a bipartisan deal currently under discussion in Congress could see the return of bonus depreciation to 100%. The proposed plan outlines that bonus depreciation would be reinstated at the full 100% rate for qualified property placed into service after December 31, 2022, effectively making it retroactive to the beginning of 2023. This potential shift in tax policy aims to provide a significant incentive for businesses, fostering investment and economic growth. Key Points of the Proposed Bonus Depreciation Plan: Retroactive Application: One of the notable feat ..read more

If you’re a small business owner, brace yourself for a new task on your to-do list. Commencing on January 1, 2024, the initial phase of the Corporate Transparency Act (CTA) takes effect, introducing a fresh federal filing requirement for most corporations and limited liability companies (LLCs), with only a few exceptions. Approximately 99% of small business proprietors are obligated to complete the Beneficial Ownership Information filing mandated by the Financial Crimes Enforcement Network (FinCEN). Not the most exciting addition to your responsibilities! The primary objective of the CTA is to ..read more

At Virjee Consulting, our primary goal is to reduce your tax burden by forward planning and then helping you use your business to reach financial freedom. The final quarter of the year is a crucial period for owners of small businesses and corporations, as well as independent contractors. It’s the time to implement strategic tax measures to optimize your financial position before the close of the fiscal year. Here are some strategies to consider in preparation for the upcoming tax season:   Timing Depreciation with the optimal method: Evaluate the potential advantages of bonus depreciat ..read more

We get this question at least twice a week for clients. “My friend’s CPA told them to buy a car under the company name in order to save taxes, why don’t you recommend it? Even better I’ve seen Tiktok and Youtube videos from Tax Experts about how buying a company car is one of the best ways to save on taxes” After we take a moment to smile, as we reflect on how Tiktok and Youtube videos are in the best marketing business as they are giving the viewer the answer they want to hear. We go into our logic behind our strategy and decision making process. Our Reply: A majority of clients want to buy ..read more

As the saying goes, there are only two certainties in life: death and taxes. For business owners, the latter can be especially daunting, and recent changes in IRS interest rates have made it even more critical to stay on top of estimated tax payments throughout the year. Failing to do so can lead to an unpleasant and costly surprise come tax season. IRS Interest Rates Are on the Rise In recent years, the IRS has raised its interest rates for underpayment of taxes, making it more expensive for taxpayers to delay payments or fall behind on their estimated tax obligations. This increase in intere ..read more

Virjee Consulting is proud to announce effective August 1st 2023 Abbey Ali, MBA, EA being named Partner overseeing our Client Accounting Service and Tax Business. Abbey will take over take Tax department responsibilities over from Omar Virjee who will move fully into his role as CEO over seeing the management and strategic vision for the firm. His official title will read Abbey Ali MBA, EA Partner-CAS and Tax. Abbey has been with Virjee Consulting over the past six years and has moved his way up the leadership role, after gaining experience in all aspects of the services the firm provides. Ove ..read more

Doctors, like any other professionals, need time off to recharge and relax. However, finding a way to write off vacation expenses can be a smart financial move. By following a few strategic steps, doctors can maximize their tax deductions while still enjoying a well-deserved vacation. Let’s explore how this can be done. Step 1: Establish the Primary Purpose Before embarking on a vacation, doctors must determine the primary purpose of their trip. If the primary purpose is personal, expenses related to that portion of the trip cannot be written off. However, if there is a substantial professio ..read more