couple questions maximizing deductions of 1099 including car purchase vs backdoor mega roth vs house purchase

Mega back door Roth is post tax even if 1099

BUT you can contribute the max employee 401k for the deduction and divert employer to mega roth

You Can’t MAX both , you get the mega back door Roth by diverting 401k funds. So your 401k employer + employee max at ur age is 69k. Mega back door Roth is 46k limit. Leaves your 23k pre tax u can put into 401k. The 46k isn’t deductible even 1099

Car is done deal as long as documentation is good

House, a portion (office) of it is done deal as long as documentation is good

Are you still in cali? In your area u can get a free cpa initial consult since competition is high and they want clients. Don’t listen to me get a free consult with a nicely reviewed cpa

This post was edited by Bazi on Aug 20 2024 08:11am

forgot to mention i have a S corp lol was going to do solo 401k through it vs buy a car

prolly hit 6 figs in investments (first year investing)
and just never invest that aggressive again besides 401k match and should hit 1-2mill by 20-25 years if all is in S&P and VOO for something to fall back on

was also looking into buying businesses such as Subway or other small restaurants as a side thing but idk, i just really don’t want to work anymore lol

This post was edited by Physician on Aug 20 2024 10:32am

Following - I'm due for a new car, but I want to be smart about it... Would you buy it cash or write off payments? I haven't touched base with my accountant yet...


Side note: if you're looking into businesses, I would steer clear of restaurants - worked the industry 15+ years as club manager and it has a way of consuming your life and the exit strategy isn't as easy as some other opportunities...

Check out my recent post regarding investment properties, the exit strategy is very straight forward in my market homes are appreciating 7-10% annually on the island and 5-year exit plan is 35% appreciation, not to mention if you use property for short term rentals $$$
- I'm sure there's a ton of other things you can do, but I stick with what I know - the last time I did stocks Ichan Enterprises took a dump the following week / never again lol

damn lol yeah real estate is always the smart way in terms of passive appreciation and income.

my cpa said you can finance or pay all cash for the vehicle but i’m planning to pay all cash and get it over with, however you can write it off via 1099 S corp expense regardless of which you choose to do

What u getting ???

M3/M4, RS5, Stinger or Panamera lol cant decide

Save panamera for when you need a sporty car but have kids

Can comfortably seat 2 car seats in the back

yeah i heard maintenance is repair is ass on those

50k mile warranty for 5k

sell the car when warranty is expiring