In this episode Marcus Mire, CPA lays out tax basics by addressing some of the most commons questions and misunderstandings he has heard from clients over the years.
Show Notes and Key Take Aways
-Marcus explains how the “Progressive” tax system works in regards to tax brackets. He explains that you only owe the percentage of taxes for the amount earned in that bracket.
– Most money you earn outside of stocks is considered “Ordinary” income.
– At the 10 minute mark Marcus clears up misconceptions about the Tax implications of an LLC and how “Flow through” tax works.
– Forming an LLC my offer legal benifits but it makes little difference in your tax liability.
– At the 15 minute mark Marcus explains itemized deductions vs standard deductions.
– Types of itemized deductions generally stay the same with minor policy changes year to year.
– Minute Mark 20 Marcus outlines the difference between tax deductions and credits.