When the Tax Cut and Jobs Act imposed the 10k SALT deduction limit, states with high taxes, like California, were outraged. Their taxpayers faced significantly higher federal tax bills. As a workaround, the Pass-Through Entity Tax Election was created.

PTET is an elective tax that business owners pay at the entity level. Instead of business income passing through to their individual return, they pay a separate state tax on their business income.

This pass-through entity tax is 100% deductible at the federal level, and generally, you receive a dollar-for-dollar credit on your personal state tax return.

Key Topics:

• 10K SALT Deduction Limit and the Workaround: PTET (Pass-Through Entity Tax) (01:30)
• An Example of PTET in Action (02:52)
• A Few Important Issues and Limitations with PTET (04:00)
• Breaking Down How PTET Saves on Taxes (05:47)
• All Business Owners Must at least Consider and Explore PTET (07:27)

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠⁠⁠⁠https://mdrnwealth.com/blog/⁠⁠⁠⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠⁠⁠⁠https://www.mdrnwealth.com

Short-Term Rentals (STRs) are one of the few ways to gain exposure to real estate as a non-real estate professional while taking advantage of some of the incredible tax benefits that real estate offers. However, getting into the business of investing in Short-Term Rentals can require a lot of work. This week, we're breaking down how to identify STR opportunities and how to optimize their returns with Real Estate Advisor Eric Ravenscroft. We'll also dive into the tax benefits and how to use them to your advantage.

Key Topics:

• 0:00 - Introduction to STRs
• 5:10 - Optimizing Your Investment
• 13:45 - Getting Started
• 17:34 - STR Case Studies
• 22:54 - Growing Your STR Business
• 34:36 - Tax Basics
• 37:12 - Introduction to Bonus Depreciation
• 38:25 - Cost Segregation Study
• 39:22 - Leveraging Bonus Depreciation
• 44:15 - Tax Case Study

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

⁠The Ravenscroft Group⁠

Subscribe to our weekly planning insights newsletter: ⁠⁠⁠https://mdrnwealth.com/blog/⁠⁠⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠⁠⁠https://www.mdrnwealth.com

First-round pick of the 2024 NFL Draft, Caleb Williams, makes headlines for wanting to do some "creative" tax planning with his NFL money. We're breaking it down!

Key Topics:

• Breaking Down the Caleb Williams LLC Proposal (01:26)
• Breaking Down the Forgivable Loan Element (02:53)
• How Rich People Use Loans to Avoid Taxes and How This is Different (03:52)
• LLCs and Their Benefits and Misconceptions (04:55)
• Wrap-Up (05:57)

MDRN Wealth Episode on All Things LLCs

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠⁠https://mdrnwealth.com/blog/⁠⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠⁠https://www.mdrnwealth.com