EO SOFLO Tax Expert Shares Tips For Tax Freedom

Noah Rosenfarb

With the new year approaching and the new tax laws in place, South Florida-based entrepreneur and tax expert Noah Rosenfarb has highlighted 19 strategies business owners should not overlook if they wish to create tax freedom in 2019.

“Entrepreneurs often are hyper-focused on so many creative and operational elements needed to build their businesses, but saving on tax costs can be just as important for continuing profit and growth,” said Rosenfarb, who is a third-generation CPA and founder of Freedom adVentures, as well as a longtime member of Entrepreneurs’ Organization South Florida (EO SOFLO). “Sharp-eyed entrepreneurs can cut their tax bill by a significant amount this year and every year.”

Rosenfarb’s 19 for 2019 include:

• Get a second opinion on your taxes at least every three years.
• Contribute to the most appropriate retirement plan (SEP IRA, 401k, DB Plan, etc.)
• Strategically use “backdoor” Roth conversions.
• Open Self-Directed IRA LLCs.
• Own income producing real estate.
• Use cost segregation studies to recoup down payments on real estate acquisitions.
• Use tax free exchanges (Section 1031 and 1035).
• Use the tax protected status of life insurance as part of an overall financial plan.
• Have a bank pay life insurance premiums, i.e. premium financing.
• Use a Donor Advised Fund to make charitable contributions.
• Create multiple entities to segregate income streams and/or assets.
• Shift income to lower tax jurisdictions.
• Participate in a captive insurance company.
• Your spouse is a passive owner in your company.
• Deduct 100% of medical expenses using a Section 105 plan.
• Optimize your Section 199A deduction.
• Shift income to lower rate taxpayers you already support financially.
• Hire children as employees.
• Research and apply all applicable tax credits (R&D, 179, Work Opportunity, etc.)

Rosenfarb recently worked with a client who expected to owe about $600,000 for tax year 2018, but together they were able to reduce that tax liability almost in half with many of these strategies. They even were able to look back and amend 2016 and 2017 tax returns, with an $80,000 refund check expected to arrive soon.

“Noah’s a rock star entrepreneur himself with numerous successful businesses,” said Jerry Katz, president of EO SOFLO and Premier Protection Insurance. “He’s helped many of our members not only save money but also rapidly scale up their companies, which boosts the entire South Florida economy and entrepreneurial ecosystem.

EO SOFLO is one of the world’s largest EO chapters with about 190 members who run businesses that account for approximately 10,000 jobs and $2 billion in annual revenues in Miami-Dade, Broward and Palm Beach counties.

For more information on EO SOFLO, visit www.eosoflo.com.