Summary: In this episode of Wealth on the Move, host Will Hoffman and tax expert Kelly Bender dive deep into the implications of the new OB3 tax law and what it means for both business owners and individual taxpayers. They explore the importance of understanding business entity structures, the impact of payroll tax updates, and the necessity of long-term tax strategies. Key topics include changes to income tax brackets, retirement account contributions, child tax credits, and state and local tax (SALT) deductions. They discuss the permanence of the Qualified Business Income (QBI) deduction, updates to depreciation rules, and investment incentives such as Qualified Opportunity Zones and qualified small business stock. Kelly shares insights from her upcoming book aimed at helping new entrepreneurs navigate the complexities of starting a business, while also addressing common tax myths and the importance of proactive planning for future generations. Throughout the conversation, they emphasize how OB3’s changes require individuals and businesses to adapt to an evolving tax landscape in order to maximize benefits and maintain compliance.

Resources:

• DKTBS Website
• eLab Website (A Starter Guide for Entrepreneurs)
• Invite Kelly to Speak
• PRE-ORDER Kelly’s Book

Takeaways:

• Many small business owners don’t fully understand their entity structure.
• OB3 introduces significant tax code changes impacting individuals and businesses.
• QBI deduction is now permanent for small business owners.
• Income tax brackets have been adjusted, but many won’t feel the impact.
• Retirement contributions are now tied to inflation.
• Child tax credit will increase to $2,200 per child by 2025.
• New senior deduction of $6,000 for those over 65.
• SALT deduction cap increased to $40,000.
• Qualified Opportunity Zones can defer or eliminate taxes on gains.
• Qualified small business stock offers significant tax benefits.
• Payroll tax compliance is essential under new rules.
• Depreciation rules now allow faster write-offs for capital investments.
• Proactive, long-term tax planning can save money in the long run.
• Common tax myths can lead to poor financial decisions.
• Asking questions is vital for entrepreneurs starting out.

Connect with Will Hoffman:

• Hoffman Wealth Management
• (724) 522-5411
• will@hoffmanwealth.com
• LinkedIn: Will Hoffman
• Facebook: Hoffman Wealth Management
• YouTube: Hoffman Wealth Management
• Instagram: Hoffmanwealthmanagement

Connect with Kelly Bender:

• LinkedIn: Kelly Bender
• Facebook: Total Business Soulutions
• YouTube: LifeUntaxed
• Instagram: LifeUnTaxes
• TikTok: LifeUntaxed