Situation:
Meet Samantha, a successful entrepreneur at the age of 37. Samantha owns multiple franchises of a popular fast-food chain located in Minnesota. With her dedication and hard work, Samantha’s business will earn $1,250,000 in 2023. Now, she’s looking for ways to optimize her finances and reduce her tax liability while continuing to grow her business empire. She will owe 40% in federal and state income tax, resulting in a tax obligation of $500,000. Samantha’s CPA has tax mitigation products that can help her reduce her tax obligation.
Solution:
Samantha’s CPA recommends a powerful tax-saving product called Equishare – Fractional Ownership, and she’s excited to explore its potential benefits. The product uses tax code Section 179 and allows business owners to deduct the full purchase price of qualifying assets, such as equipment and property, in the year of purchase, rather than depreciating them over several years.
She decides to purchase ten units of the Equishare – Fractional Ownership. Each unit has a down payment of $12,000, resulting in a total down payment of $120,000. Through the Section 179 deduction, Samantha can claim a deduction of $600,000 based on the total cost for each fractional share, not just the $12,000 down payment for each share. This deduction significantly reduces Samantha’s taxable income, resulting in substantial tax savings.
Result:
Samantha can reduce her business’s taxable income from $1,250,000 to $650,000 in 2023. With this reduction in taxable income, her company will now have a tax obligation of $260,000. Utilizing the Equishare – Fractional Interest tax mitigation technique will give Samantha’s business a net gain of $120,000.
The Equishare – Fractional Share program empowers Samantha to invest in her business, stimulate growth, and ultimately keep more of her hard-earned money. By taking advantage of this tax-saving strategy, Samantha can allocate her savings towards expanding her franchises, enhancing operations, or even pursuing new business opportunities.
Samantha is poised to supercharge her business’s financial success, reduce her tax burden, and continue to make waves in the fast food industry. Here’s to Samantha’s continued prosperity and growth as a savvy entrepreneur.