Section 179 Deduction: Writing off your Company Vehicle

The Section 179 tax deduction can be used for business owners who purchase a vehicle for business use.

What is the Section 179 Deduction? The Section 179 deduction is a tax deduction made available to business owners that purchase certain types of business property.  These purchases include vehicles for business use, equipment, office furniture, supplies and other tangible items.  Even ownership in a plane can potentially qualify for the Section 179 deduction. Using […]

Qualified Business Income: What is it and how can you Benefit from it?

QBI

What is Qualified Business Income? The qualified business income (or QBI) tax deduction allows eligible business owners to deduct up to 20 percent of their qualifying business income from their income taxes. To qualify, total taxable income must be below the following thresholds for 2024: $191,950 for single filers $383,900 for joint filers If your […]

Behavioral Biases and Other Pitfalls to Beware of

Behavioral Biases

Nobel laureate Daniel Kahneman is arguably the world’s leading authority on human decision-making and cognitive biases that exist due to irrational judgement.  As part of his research on the mind, he created a list of the five variables that lead to suboptimal decision-making as follows: A complex problem Incomplete and changing information Changing and competing […]

What Can March Madness Teach us about Survivorship Bias: Luck vs. Skill

sURVIVORSHIP bIAS

As I write this post, it is the second round of the 2023 NCAA tournament.  I proudly boast a near perfect bracket – having selected the winner of 29 of the first 32 games correctly. I check my bracket’s ranking; it sits at #845 in the world – out of the roughly 17.3 million brackets […]

What is the Mega Backdoor Roth 401(k)?

What is the Mega Backdoor Roth 401k

When it comes to making 401(k) contributions there are two sets of limits that an individual must be aware of – the first being the maximum deferral limit and the second being the total contribution (or 415) limit. The maximum deferral limit represents the total amount that you as an individual can contribute to your […]

What is a Roth Conversion and Why Should I do One?

What is a Roth Conversion and Why Should I Do One

Retirement Account Types When saving in a retirement account an investor has two options, to save money pre-tax or Roth. Pre-tax savings result in a tax deduction of the amount contributed each year (assuming you are not over any applicable income limits), tax-deferred growth of the investments, and an income tax bill each year as […]

What is the Augusta Rule and How can I use it as a Business Owner?

Augusta Rule

IRS Section 280A(g), better known as the “Augusta Rule”, is a special rule in the tax code that allows for the rental of a personal dwelling for less than 15 days without being taxed on the rental income.  Utilization of this rule in conjunction with a legitimate expense to your business can allow you to […]

What are Required Minimum Distributions?

Required Minimum Distributions

As you embark on your journey toward financial independence and a secure retirement, it’s crucial to understand the intricacies of various retirement account rules. One such rule that comes into play is the Required Minimum Distribution (RMD). In this guide, we’ll unravel the mystery behind RMDs, explaining what they are, who they apply to, and […]

Get Started with Fontana Financial Planning

Preferred Form of Communication