Top 6 celebrities who lost millions in NFTs | Chris Randall posted on the topic | LinkedIn (2024)

⚕👩⚕️Open enrollment is almost here! Catch up on the HSA & HDHP increases for 2025!The IRS released Revenue Procedure 2024-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2025. These limits include the following:· The maximum HSA contribution limit;· The minimum deductible amount for HDHPs; and· The maximum out-of-pocket expense limit for HDHPs.These limits vary based on whether an individual has self-only or family coverage under an HDHP. Eligible individuals with self-only HDHP coverage will be able to contribute $4,300 to their HSAs for 2025, up from $4,150 for 2024. Eligible individuals with family HDHP coverage will be able to contribute $8,550 to their HSAs for 2025, up from $8,300 for 2024. Individuals age 55 and older may make an additional $1,000 “catch-up” contribution to their HSAs.The minimum deductible amount for HDHPs increases to $1,650 for self-only coverage and $3,300 for family coverage for 2025 (up from $1,600 for self-only coverage and $3,200 for family coverage for 2024). The HDHP maximum out-of-pocket expense limit increases to $8,300 for self-only coverage and $16,600 for family coverage for 2025 (up from $8,050 for self-only coverage and $16,100 for family coverage for 2024).If you would like to learn more, subscribe to my newsletter at the top of this post.

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🚨🚨🚨 ATTN: Business Owners & Solopreneurs – Quarterly Tax Payments Due September 16th!!If you earned self-employment income between June 1st and August 31st, the deadline to make your quarterly tax payment is 9/16. Use IRS Form 1040-ES, pay online, or on the IRS2Go app! Be aware, the app only has 2.8⭐…How much should I pay? There are a few different options:1) 100% (or 110%) of last years tax bill – Even if you made more in 2024 than 2023, pay the same amount as last year. This figure becomes 110% if you made over $150k in 2023. Obviously, you will have to make up the difference when you do your tax return in April.2) 90% of actual taxes owed – Pay 90% of the tax to be shown on your current year’s tax return. This can be done using IRS Form 2210. 3) Annualized income installment method – If you have uneven income, make your quarterly payments based on the amount of income you earned up to that point in the year. This allows you to pay less when income is lower. Check out IRS Publication 505 for more help on this.If you are self employed and interested in learning more about investing, taxes, and regulations, subscribe to my newsletter at the top of this post.

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🤔 Remember when I-bonds were all the rage?? If you purchased I-bonds in August of 2022 when a popular investing website article declared "Run, Don't Walk, for I-Bonds," your investment would be yielding 2.96% right now. Why? Inflation has come down, and the I-bonds issued during that time had no fixed coupon rate. So the entire 9.62% interest rate that you received at the time has come down as CPI inflation has cooled.As a reminder: You can only buy $10,000 in I-bonds per year. Also, if you sell before 5 years, you surrender 3 months of interest. Were I-bonds a good investment? Depends why you made the decision to buy them in the first place. Were the bonds part of a long term investment plan? Or were you merely caught up in "running" after the latest investing fad perpetrated by the financial media?

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👨💼👩💼Do I have independent contractors or full-time employees? 💸 If you hired workers for your business, knowing the difference between these two designations is critical.The Department of Labor final rule on independent contractors went into effect on March 11th. Full-time employees are entitled to minimum wage, overtime pay, and other benefits.The final rule uses a six-factor analysis to determine if a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA).These six factors include:1) Opportunity for Profit or Loss Depending on Managerial Skill Consider if they can negotiate pay for the work, if the worker accepts or declines jobs, chooses the order and/or time in which the jobs are performed, if the worker engages in marketing, advertising, or other efforts to expand their business or secure more work. If a worker has no opportunity for a profit or loss, then this factor suggests that the worker is an employee.2) Investments by the Worker and the Potential EmployerConsider if investments by a worker are capital or entrepreneurial in nature. Independent contractor status is indicated by investments that “generally support an independent business and serve a business-like function, such as increasing the worker’s ability to do different types of or more work, reducing costs, or extending market reach.”3) Degree of Permanence of the Work RelationshipA worker is more likely an employee when the work relationship is indefinite or continuous. Independent contractor status would be supported when the work relationship is definite, non-exclusive, project-based, or sporadic based on the worker being in business for themself and marketing their services or labor to multiple entities.4) Nature and Degree of ControlIf the employer sets the schedule, supervises performance of the work, limits the ability to work for others, uses tech to supervise the work, reserves the right to discipline workers, or restricts if workers can work for others or work when they choose. Control over prices/rates for services or marketing of services by the worker should also be considered.5) Extent to Which the Work is an Integral Part of the BusinessThis factor does not depend on whether any individual worker is an integral part of the business, but rather whether the function they perform is integral to the business. A worker is likely to be an employee when the work is critical, necessary, or central to the employer's principal business. 6) The Worker’s Skill and InitiativeEmployee status would be supported where the worker does not use specialized skills in performing the work or if dependent on training from the employer. Subscribe to my newsletter at the top of this post to learn more. ***The excerpts above are from the Department of Labor Employee or Independent Contractor Classification Under the Fair Labor Standards Act Final Rule, and not be used as legal advice.***

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👀 Passive Income For Overtaxed Business Owners: California Municipal Bonds 🏖 How about a 6.40% yield* for a AA-rated local school district? Is that something you may be interested in? How many can I put you down for?? 📝 There is a CA municipal bond new issue in the market today for Fresno Unified School District with a 2049 maturity that has a 4.16% yield to maturity, which is a 6.40% taxable equivalent yield*. (*Assumes a 35% tax rate)*Taxable Equivalent Yield=what you would have to earn on a corporate bond or other taxable fixed income product in order to match the tax-free yield on a municipal bond, at a certain tax rate (we assume 35% tax rate for simplicity).Looking for more diversification within CA munis?iShares California Muni Bond ETF (ticker CMF) could be your ticket. 🎟 Some advantages of CMF include:1) 3.17% yield, 4.88% taxable equivalent yield (assuming 35% tax rate)2) 3.32% annualized return since 20073) 0.08% expense ratio (very low)4) High quality with 94% AA or AAA rated.5) 0.25 correlation to the S&P 500 (IE, a great diversifier to your equity holdings)6) Low default rate: From 1970 to 2021, investment-grade munis had a 0.09% cumulative default rate within 10 years of issuance, while investment-grade corporate bonds had a 2.17% default rate.Interested in learning more about investing and saving money on taxes? Subscribe to my newsletter at the top of this post.

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😱 Avoid paying income tax on mixed use business expenses!! Set up a written Reimbursem*nt Policy today! 📜 Also known as an Accountable Plan, it's required when you have expenses that are both personal and business related.Home office deduction example: If you work from home and want to deduct a portion of your rent or mortgage, you need to have a Reimbursem*nt Policy in place. This will detail how you calculated the amount you are claiming as a deduction, as there is more than one way.Without a written Reimbursem*nt Policy, the IRS may claim this deduction as income, and tax it.Who needs to have one?1) S-Corps2) C-Corps3) LLCs with more than 1 employee(Not necessary for sole prop or single member LLC, who will just take the deduction directly on the schedule C)What is required in a Reimbursem*nt Policy?1) Business Connection – The expense must be a valid business expense that occurs in the normal course of business.2) Substantiation – Employees need to submit the required proof of the particular expense (receipts, mileage logs, etc).3) No Excess Payment – Any payment above the actual cost must be returned, or is considered taxable wages. 4) Timeliness – Reimbursem*nts and substantiation must be submitted in a timely manner.Having a written Reimbursem*nt Policy (Accountable Plan) in place shows the IRS how business expenses are deducted if they also have a personal component, to avoid income taxation. They are easy to setup and can be used for all employees.If you want to learn more about how I help small business owners, subscribe to my newsletter at the top of this post.***THIS IS NOT TAX ADVICE. SEEK A CPA OR ACCOUNTANT BEFORE MAKING TAX DECISIONS***

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🏀 Kevin Durant gets buckets, and you should too. 🏀 Cash Bucketing Strategy - spread your money out over different accounts for different needs. Each bucket has its own liquidity profile, time horizon, allocation mix, and tax considerations. This is especially useful for solopreneurs & small business owners who have irregular and uneven cashflow. 1. Emergency bucket - high yield savings account at 4-5%. Super liquid. Can access cash in 0-3 days. 2. Short term bucket - t-bills, short duration bond funds, CD's. You can earn 4-5% in these accounts right now. Money is typically locked up for 3-12 months. 3. Medium term bucket - money needed for things in 1-5 years like expanding the business, buying equipment, hiring employees, investing in new products, etc. This will be a mix of stocks & bonds depending on timeline and risk tolerance. 4. Investment account bucket - this is a long term bucket to grow wealth. We use dollar cost averaging to invest in ETFs and Index-funds, and use a buy-and-hold strategy. 5. Health & education bucket - 529 college accounts and health savings accounts have tremendous tax benefits. We use these for large and specific needs, 15-30 years into the future. 6. Retirement bucket - maximize retirement flexibility by investing in different kinds of accounts depending on your situation. Traditional, Roth, 401k, and IRA, are all considered when planning for retirement. If you would like to learn more about finance strategies, subscribe to my newsletter at the top of this post.

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🏢 Does your business have its own credit score? You bet your sweet EIN it does! 👨💼 While your personal credit score is tied to your Social Security number, your business credit score is tied to an Employer Identification Number — or EIN. This helps you keep your personal financial information private while you build and maintain your business credit score.1) Why is it important to know your business credit score? Having a higher business credit score makes financing more accessible & lowers the interest rate on borrowing. You may avoid being required to sign a personal guarantee that makes you personally liable. It can also help lower your insurance premiums. 2) How is your business credit score determined? Timeliness of payments, your length of credit history, and the amount of debt outstanding are the major components. Sometimes the size of the company and the industry can factor in as well.3) How can you improve your business credit score? Pay your bills and expenses on time, apply for a business credit card to build credit, use credit regularly and responsibly, monitor your score, and keep the credit utilization below 30% of your max limits. Other important things to keep in mind:- Keep personal and business expenses separate, so you can deduct business expenses against business income and lower your taxes.- Business credit scores are ranked on a scale of 0 to 100, while business scores using the FICO Small Business Scoring Service (FICO SBSS) range from 0 to 300.- Anyone can check a business credit score to see how a business ranks!! If you are interested in learning more about how I help business owners, subscribe to my newsletter at the top of this post.

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