ACap ReCap: Financial and Tax Tips
ACap Advisors & Accountants is a boutique fee-only Wealth Management and full-service Accounting firm based in Los Angeles. We handle everything from taxes to investments to risk management and estate planning, providing comprehensive, unbiased financial advice in one location. In our ACap ReCap episodes, we discuss the latest financial news, answer the frequently received financial questions, and share financial tips with you. If you have questions or suggestions email us hello@acapam.com Find more details at https://www.acapam.com/ #financialadvisor #fiduciaryfinancialadvisor #finance #financial #money #wealthmanagement #assetmanagement #investment #tax #taxplanning
ACap ReCap: Financial and Tax Tips
How a 7-Figure Content Creator Can Save Over $100K in Taxes
In this case-study episode, Ara and Matt pull back the curtain on a real client scenario (names changed) featuring Jasmine, a 7-figure online content creator, and her husband George, a W-2 employee at a large company. Together, they walk step-by-step through how they take a chaotic, high-tax situation and turn it into a coordinated, long-term tax and retirement plan.
You’ll hear exactly why Jasmine’s single-member LLC structure is costing her tens of thousands in unnecessary payroll taxes, and how a simple S corporation election could save her over $75,000 per year. Ara and Matt also break down why the “buy rental real estate to lower your taxes” advice doesn’t work for high-income earners like Jasmine and George, and what to do instead.
In this episode, they cover:
- Why a high-earning content creator should consider switching from single-member LLC to S corp
- How S corp reasonable compensation works and where the real payroll tax savings come from
- The difference between passive rental real estate losses and active income—and why high earners don’t get the deduction they think they’re getting
- When a Solo 401(k) (a.k.a. Individual 401(k)) beats a SEP IRA, and how to stack employee deferrals + employer contributions
- How the backdoor Roth IRA works—and how existing IRAs can quietly blow it up
- Using a Solo 401(k) rollover to unlock the backdoor Roth strategy
- The cash balance pension plan: a “401(k) on steroids” for very high-income years
- Why owner-occupied commercial real estate is a completely different animal from rental property for tax strategy
If you’re a high-income professional or business owner (especially in a high-tax state like California) and feel like you’re flying blind with taxes and retirement, this walkthrough shows you how a coordinated plan can realistically create six-figure annual tax savings while rapidly building long-term wealth.
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