Moshe Mindick, CPA PA

07/30/2025

Let’s get this Viral!

Moshe (Moe) Mindick is a practicing CPA - who owns and operates his own firm. I talk taxes. A lot. Whether you're a business owner, real estate investor, or just someone trying to keep more of your money and less in Uncle Sam's pocket — you're in the right place. I specialize in tax strategy for s...

11/10/2024

🎥 From My Latest YouTube Video: Tax Planning for Seven-Figure Business Owners

*Transcript from my latest tax strategy talk*

"Let me tell you what happens ALL the time...

You're a smart business owner, crushing it for the first time. Making millions. Then you look at your tax bill - a MILLION in taxes! 😱

So you call me in November:
'What can I do? I can't write a check for a million bucks!'

Good news: There are options.
Bad news: I wish you'd called me in February!

Here's the real talk about real estate and tax strategy:

1. Real estate can be great for offsetting active business income, BUT...
• Long-term rentals are passive by default
• If you're not a real estate professional (or married to one), active and passive income can't offset each other

Pro Tip I Share with Clients: Consider getting passive equity instead of active income for your services. Had a client recently who started taking ownership stakes instead of cash payments - brilliant passive income strategy!

The Biggest Mistake I See: Rushing into December real estate deals just to save on taxes. You'll likely overpay and make poor investment decisions.

Remember: Don't let fear of taxes drive bad investment choices. Plan early, invest smart.

🎯 Want more tax strategies for your business? Follow me here and check out my full video [Link in comments]

11/03/2024

Owning an Aircraft through an S Corporation? Here’s What You Need to Know! ✈️

If you’re considering purchasing an aircraft under your S corporation,

there are unique tax considerations you should keep in mind.

S corporations offer benefits like tax efficiency and operational simplicity,

but they also bring specific challenges when it comes to aircraft ownership.

Here’s a breakdown of the top pitfalls—and strategies to avoid them! 👇

1️⃣ Basis Limitations


The Pitfall:

When an S corporation finances an aircraft with third-party debt, there’s no increase in basis for that debt, which can limit your ability to deduct losses.

💡 Pro Tip:

Avoid third-party debt financing.

Instead, consider cash purchases or taking a personal loan, then contributing the proceeds to the S corporation to establish a basis increase.

2️⃣ Depreciation Recapture

The Pitfall:

To leverage significant first-year depreciation, the aircraft must be used for business over 50% of the time.

Falling below this threshold over the aircraft's depreciable life means facing depreciation recapture, converting prior deductions into ordinary income.

💡 Pro Tip:

Ensure that business use consistently stays above the 50% threshold to safeguard your deductions.

3️⃣ Cost-Sharing Arrangements

The Pitfall:

S corporations can’t allocate aircraft expenses based on owners' individual usage.

So if you and a partner each own 50% of the corporation but use the aircraft differently, you’re stuck with equal expense allocations regardless of actual usage.

💡 Pro Tip:

For more flexibility in cost-sharing, consider a partnership structure for ownership.

Entity structure plays a critical role in maximizing tax benefits and minimizing complications when it comes to aircraft ownership. ✈️

If you’re navigating this path or want to discuss your options, let’s chat! DM me or book a call

Safe flying and smart tax planning!

10/11/2024

🌀 IRS Announces Tax Relief for Victims of Milton — Deadlines Extended to May 1, 2025, for ALL of Florida! 🌀

To all my clients and anyone working with a CPA in Florida:

You now have extra time to get your tax filings in order!

But, there's a catch…

If your return doesn’t show a Florida address,

but either you or your CPA are based in Florida,

the IRS might not recognize you as part of this relief zone automatically.

❗ What You Should Do:

Be proactive!

Notify the IRS in advance if you're filing with an out-of-state address but qualify for Florida relief.

While you can appeal penalties after the fact, it’s easier to avoid them by taking action now.

Got questions on how this impacts you?

Reach out—let's make sure you’re covered and avoid any surprise penalties!

FL-2024-10, Oct. 11, 2024 — The Internal Revenue Service announced today tax relief for individuals and businesses in parts of Florida that were affected by Hurricane Milton that began on Oct. 5, 2024.

09/22/2024

Turning Family Time into Tax Savings: How Adding Your Family to the Board of Directors Can Unlock Big Deductions (and even train your kids on business and finances)

Running a business often means long hours and little time for family,
but what if you could mix business with pleasure and turn family trips into a smart tax strategy?

By adding your family members to your Board of Directors or Advisors, you can make travel, lodging, and even meetings at home tax-deductible.

Here’s how to do it, and why it can be a game-changer for your finances:

1. Establish Legitimate Business Purposes for Meetings:

For your travel expenses to be deductible, your meetings need to have a clear business purpose.

This means setting an agenda that includes strategic planning, reviewing financials, or developing new business strategies.

Not only does this justify your expenses, but it also demonstrates to the IRS that your family trip is more than just a vacation.

2. Use the “Augusta Rule” for Home Meetings:

The Augusta Rule allows you to rent out your home to your business for up to 14 days per year, tax-free.

By hosting Board meetings at your home, you can charge your business a reasonable rental fee and deduct it from your company’s income—all while pocketing the tax-free rental income personally.

3. Plan Quarterly Offsite Meetings:

Why not hold your quarterly Board meetings at a nice resort or another out-of-town location?

As long as more than half of the trip is spent on business activities, travel and lodging expenses can be deducted.

For a husband-and-wife S corporation, this is a great way to take care of business while enjoying some well-deserved relaxation.

4. Keep Detailed Records and Document Everything:

When combining business with pleasure, detailed documentation is key. Keep records of meeting minutes, agendas, and receipts.

Make sure your travel itinerary shows business meetings occupying more than half of the time.

Proper documentation is your best defense against an audit.

Bonus Tip:

Don’t Go Overboard!

While it might be tempting to book that luxury resort in the Caribbean, the IRS is more likely to scrutinize trips that seem extravagant or purely for leisure.

Stick to destinations that align with your business goals and choose accommodations that are appropriate for a working meeting.

Takeaway:

Adding your family to the Board can be a smart move to make family time both enjoyable and financially beneficial.

With careful planning and proper documentation, you can transform family trips and home meetings into legitimate business expenses, reducing your tax burden while creating valuable memories.

After all, who says you can’t mix business with pleasure?

09/18/2024

What Business Owners Need to Know About Implementing an IRS Accountable Plan

As a business owner, ensuring you're IRS-compliant while reimbursing your employees (or yourself) for business expenses is crucial.

That’s where an ⬆ IRS Accountable Plan ⬆ comes in.

If you or your employees are paying
out-of-pocket for expenses related to
the business—think home office, travel, or mileage
an accountable plan is the IRS-approved way to ensure those expenses are reimbursed tax-free.

Remember if you are an owner and have an S-Corporation you are also an employee for this purpose if you are doing payroll properly

⬆ So, what exactly is an Accountable Plan? ⬆

An accountable plan is a company document that outlines policies for reimbursing employees for valid business expenses.

Unlike home office deductions (which corporations cannot take),
an accountable plan allows corporations, LLCs, and S-corporations to reimburse employees and shareholders for business-related expenses—while keeping it all deductible on the company’s return and tax-free for the employee.

⬆ How does it work? ⬆

1. Document Business Expenses:

To reimburse employees, the expenses must be business-related, substantiated (with receipts, etc.), and fall within IRS guidelines.

2. Set Clear Policies:

You can reimburse actual expenses or provide a per diem allowance (like for travel or meals).

3. Home Office Reimbursement:

Even though corporations can’t take home office deductions, you can still reimburse employees for the costs of maintaining a home office under the accountable plan.

What Expenses Qualify?

Here are some common reimbursable expenses:

- Home office expenses
- Travel and meals (per diem rates or actual costs)
- Car expenses (standard mileage or actual expenses)
- Phone, internet, tools, and subscriptions

Requirements for Compliance

To stay IRS-compliant, the plan must meet three criteria:
1. The expense must have a business purpose.
2. The employee must submit documentation (expense report, receipts).
3. Any excess reimbursement must be returned within a reasonable period (usually 120 days).

⬆ Best Practices ⬆

Documenting your accountable plan is essential, especially in the event of an IRS audit.

Outline the types of reimbursable expenses, submission deadlines, and supporting documents needed (receipts, invoices, etc.).

For home office expenses, clearly define a method for calculating the reimbursement—whether by square footage or a monthly allowance.

Why Is It Important?

If you don’t follow IRS guidelines, reimbursements could be treated as taxable income, impacting both you and your employees.

✅ Bottom Line

An accountable plan is a win-win for both business owners and employees. Stay IRS-compliant while making reimbursements that benefit everyone.

If you’re unsure where to start, reach out to me or your CPA or tax advisor.

09/16/2024

🚨 ATTENTION W2 WAGE EARNERS! 🚨 who want to save on taxes 😍

Are you sick of paying too much in taxes?

I've got some killer strategies to help you keep more of your hard-earned cash! 💰

1️⃣ HSA:

It's a triple threat - tax deduction now, tax-free growth, AND tax-free withdrawals for medical expenses.

It's like the Swiss Army knife of tax savings!

2️⃣ Backdoor Roth IRA:

Don't let your accountant tell you that you make too much for a Roth.

We're going in the back door, baby! 🚪

3️⃣ Match and Out:

Get that sweet employer match in your 401(k), then get out and fund your own Roth IRA.

It's like free money AND tax-free growth! 🎉

4️⃣ Start a Side Hustle:

50% of working Americans have one.

Don't be left behind!
Write off that cell phone,
dining, travel,
and home office.

The American Dream is real, people!

5️⃣ Real Estate:

Buy a rental where grandma lives.

Depreciation,
cash flow,
and building wealth - it's a no-brainer!

Want to learn more?

Follow me, re-share and stay tuned

Don't let the IRS keep taking your hard-earned cash.

It's time to captain your own ship and start saving on the #1 cost in your life - TAXES!

Who's ready to keep more of their money? 🙋‍♂️🙋‍♀️

Drop a 💰 in the comments!

09/03/2024

As a CPA deeply involved in tax planning and wealth management, I’ve come to realize something crucial that I believe every American needs to know:

You need a trust!

You might be thinking,

"Why a trust?"

Well, let me break it down for you with four compelling reasons that I’ve seen transform the lives of many clients.

1. It’s the Foundation of Your Financial Trifecta

The first and most important reason is that a trust brings everything together.

Picture this:

your financial life as a Trifecta with three main pillars

➡ tax efficiency
➡ wealth building
➡ and protection.

At the heart of this Trifecta is a revocable living trust.

Unlike a will, which merely states who gets what when you pass, a trust allows you to control your assets during your lifetime and ensures a smooth transfer after you’re gone.

It’s the backbone of your financial plan, and it’s something that benefits you whether you’re young or old, married or single.

2. Privacy Protection

In today’s digital age, privacy is more valuable than ever.

A properly named trust can provide a level of anonymity, keeping your assets and your financial moves out of the public eye.

When your trust owns your assets instead of you personally, your name doesn’t appear in public records as easily.

This is like having camouflage for your wealth, shielding you from prying eyes and potential threats.

3. Avoid Probate

Probate is the legal process that happens when you die without a trust. It’s slow, costly, and exposes your private matters to the public.

With a trust, you can avoid probate altogether, meaning your loved ones won’t have to deal with courts, attorneys, and unnecessary delays.

This is especially important if you own property in multiple states or have complex assets.

A trust allows your assets to be distributed seamlessly, saving your heirs time, money, and stress.

4. Control and Protect Your Legacy

Finally, a trust gives you control over your legacy.

You can decide how and when your assets are distributed.

For instance, if you have life insurance, you might not want your 18-year-old to receive a huge payout all at once.

With a trust, you can set terms—like releasing funds at certain ages or milestones—ensuring that your hard-earned wealth is used wisely and in line with your wishes.

Bottom Line

I’ve worked with countless clients over the years, and I’ve seen the incredible impact a trust can have on protecting and growing wealth.

It’s not just for the ultra-wealthy

it’s a smart, strategic move for anyone looking to secure their financial future and leave a lasting legacy.

So, let’s talk about setting up a trust that works for you.

It’s more affordable and easier to implement than you might think, and it could be one of the most important financial decisions you ever make.

— Moe, your trusted CPA with a passion for helping you build and protect your wealth. 💼💡 DM to learn more

09/01/2024

What does 9/15 mean to you as a business owner or taxpayer?

To me it means:

1) Time to file your S-Corporation form 1120-S or Partnership return form 1065

2) Time to pay the 3rd quarter 2024 installment for your state PTE taxes in your business

3) Time to pay the 3rd quarter 2024 individual estimate for both Federal and State

4) Time to make that pension match or contribution from your business - you know the one that is based off 25% of your salary.

Glad I was able to remind you of things time sensitive items

Feel free to reach out if you need help on how to calculate what you need to pay in for PTE or Estimated payments.

After all this is how we defer from a typical silent CPA who does not answer the phone or reach out....

08/30/2024

If you earn a too much and do not qualify for a Roth IRA and work in company you can do a ROTH 401k if they offer it - might make sense for some folks especially if you love the idea of tax free growth and tax free withdrawals

Designated Roth Accounts vs. Roth IRAs: What's the Difference?

Both designated Roth accounts and Roth IRAs offer tax-free growth and tax-free withdrawals in retirement, but they have some key differences:

Contribution Limits

🟢 Designated Roth: Higher limits ($23,000 for 2024, plus $7,500 catch-up if 50+)
🟢 Roth IRA: Lower limits ($7,000 for 2024, plus $1,000 catch-up if 50+)

Income Restrictions

🟢 Designated Roth: No income limits
🟢 Roth IRA: Income limits may restrict contributions

Employer Involvement

🟢 Designated Roth: Part of employer-sponsored plan (401(k), 403(b), 457(b))
🟢 Roth IRA: Individual account, no employer involvement

Investment Options

🟢 Designated Roth: Limited to plan's investment options
🟢 Roth IRA: Wide range of investment options

Loan Options

🟢 Designated Roth: May allow loans (if plan permits)
🟢 Roth IRA: No loan options

Employer Matching

🟢 Designated Roth: May receive employer matching (goes into pre-tax account)
🟢 Roth IRA: No employer matching

Accessibility

🟢 Designated Roth: May have limited in-service withdrawal options
🟢 Roth IRA: Contributions can be withdrawn anytime without penalty

Which is Better?

🟢 If eligible, consider maxing out both
🟢 Designated Roth good for higher contribution limits and possible employer match
🟢 Roth IRA offers more flexibility and no RMDs

Remember to consult with a financial advisor for personalized advice based on your specific situation.

08/27/2024

Can you offset your husband's Doctor wages with your real estate rental losses?

Many can and here is the trick

you the "other" spouse need to be involved actively in the real estate business

Understanding REPS: Real Estate Professional Status

Real Estate Professional Status (REPS)
is an important tax designation that
can significantly impact how
rental property income and losses
are treated on your tax return.

To qualify for REPS, you must meet specific criteria set by the IRS:

750-Hour Rule:

↗ You must spend at least 750 hours per year working on real estate activities.

More Than 50% Rule:

↗ More than half of your total working hours
for the year must be devoted to real estate activities.

Material Participation:

↗ You must materially participate in your rental real estate activities.

Key points about REPS:

Activities can include:

↗ managing properties
↗ renovations
↗ repairs
↗ tenant screening
↗ bookkeeping
↗ and researching potential investments.

↗ Hours must be meticulously documented in case of an audit.

REPS allows you to deduct rental losses against other income types (like W2 income of a spouse), potentially reducing your overall tax liability.

↗ It's crucial to consult with a qualified tax professional to ensure you meet all requirements and understand the implications.

Remember, claiming REPS without meeting the criteria can lead to serious consequences.

↗ Always maintain accurate records and be prepared to substantiate your claims if audited.

If you're considering pursuing REPS,
start by tracking your real estate activities diligently
and consult with a tax expert to determine
if you qualify and how it might benefit your specific situation.

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Hi I'm Moshe Mindick, CPA PA

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08/26/2024

Estate Planning: Key Tax Considerations After a Loved One's Passing

Recently, I came across some valuable insights on estate planning.

Here are crucial tax considerations to keep in mind:

Estate Tax vs. Income Tax:

➡ Estate tax threshold is currently ~$12M

➡ Example: A $5M estate likely won't owe estate tax, but may still have income tax obligations

➡ "Portability" tip: A widow can potentially save her late husband's unused exemption for future use

Income Tax for the Estate (Form 1041):

➡ Example: An estate with rental properties earning $50K/year would need to file

➡ Tip: Distribute a $100K inheritance before year-end to avoid higher trust tax rates

Step-up in Basis:

➡ Example: Inherited stock bought at $10/share, now worth $100/share. New basis is $100, saving significant capital gains tax if sold

➡ Consider professional appraisals for assets like real estate or art

Probate Prevention:

➡ Use revocable trusts: Can help transfer a family home more quickly and privately

➡ LLC operating agreements: Ensure your rental property LLC passes directly to heirs, bypassing probate

Remember, these are general guidelines.

For complex estates or those approaching the exemption threshold, always consult with a tax professional.

What other estate planning tips have you found helpful?

Share in the comments!