5 Ways to Eliminate Capital Gains

Taxes are one of two certainties in life. Just because they’re inevitable, that doesn’t mean taxpayers can’t limit how much they pay the government. Capital gains taxes can significantly erode yearly earnings, but it’s possible to reduce or eliminate them. Here, we’ll offer some information on capital gains taxes, as well as some tax avoidance strategies and implementation tips.

What’s the Capital Gains Tax All About?

When people own real estate, stocks, land, businesses, and other assets and sell them for a profit, they’ve achieved capital gains. The government will want their share of the proceeds, which is known as the capital gains tax. Depending on the classification of gains and your yearly taxable income, the rate may vary.

Avoiding Capital Gains

No one wants to hand over a significant portion of their profits to the government. Fortunately, there are several ways to reduce the amount of taxes paid after selling assets, and we’ll go over them in the sections below.

Invest in Opportunity Zones

Since the Tax Cuts and Jobs Act was established in 2017, qualified opportunity zone funds near me have given investors an incentive to work in distressed communities. By investing in underserved areas, you can potentially reduce or eliminate capital gains taxes. These savings are only available, however, when an investment is retained for the required timeframe.

Select Long-Range Investments

A capital gain may be short- or long-term, and each type has a different tax rate. Any asset held for a year or less is classed as short-term. These gains are taxed at the ordinary rate, which may be up to 37%, depending on your taxable income. To avoid that big hit, pick long-term investments when possible.

Start a Tax-Deferred Retirement Plan

For some investors, most assets and savings are tied up in retirement accounts. It’s best to optimize these accounts to the extent possible by using tax-exempt and tax-deferred plans to eliminate capital gains taxes. When contributing to traditional IRAs, 401(k)s, and other tax-deferred plans, you’ll get a deduction on all contributions made during the tax year.

Be Patient

With this tax elimination strategy, you’ll save now and in the future. Money put into retirement accounts will also grow with time. When you’re ready to make a withdrawal, account growth is taxed at the ordinary rate instead of being assessed a capital gains tax.

Offset Gains

Those holding a range of assets can sometimes offset some gains with losses, thereby reducing or eliminating the capital gains tax. For example, if an investment decreases in value by $5000, but another one is up by $4000, selling both assets would reduce capital gains. You’d only pay the tax on the difference, or $1000, instead of the full $5000 gain on the first investment.

Keep More of Your Hard-Earned Money

Reducing or eliminating capital gains taxes paid on certain assets will help you give less money to the government—and keep more of it in your own pocket. The capital gains tax may range from 0% to 28%, depending on the asset class, your income, and other factors. Tax-deferred retirement accounts, offsets, patience, and long-term investments are all effective ways to reduce or eliminate capital gains taxes. While taxes are an inevitable part of life in America, paying too much isn’t. By following these strategies, investors can reduce tax liabilities and save more of what they’ve worked for.

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Top 5 Cash Flow Problems Businesses Face and How to Solve Them

Cash flow is the number one thing to get right in business. You can’t keep the lights on if you don’t have money to pay the bills. And when 82% of businesses fail because of cash flow issues, it’s more common than you think.

You can’t afford cash flow problems if you want to set your business up for success. Keep reading to learn the typical cash flow issues and how to fix them.

  1. No Cash Reserves

It’s not enough as a business to have money coming in. If all you do is pay for expenses and invest in growth, you won’t be able to set aside cash reserves. What happens when something happens that requires an expense you can’t pay for?

While investing in growth is not a mistake, don’t do so without growing your reserves. Ensure you have a minimum amount of money in your business bank account to handle unexpected issues.

  1. Late Invoices

Invoices are a must when you sell to other companies. The problem is that those companies will generally pay using net terms. You may not see your payment for between 30 and 90 days.

While this isn’t an issue most of the time, it is when people don’t pay on time. Inevitably, you’ll run into companies that have problems meeting their payment terms. Come up with a way to track unpaid invoices and stay on top of the companies that are late.

  1. Excess Purchases

You probably won’t have a problem scrutinizing large purchases. You don’t make them often, so you do everything possible to vet the need for the purchase. The same isn’t always true for smaller items.

Small purchases can take away much of your net profit if you aren’t careful. You’ll need to invest in business spend management strategies to avoid too many small buys.

  1. High Overhead

You won’t get away with overhead in your business. You’ll need to pay for utilities, software, and other things to keep your business running. The problem is that many services will raise their price over time and drive up your monthly expenses.

However, you don’t have to accept those price increases if you have other options. Contact your vendors regularly to see if you can negotiate a lower monthly rate. If you can’t, start looking at other vendor options to switch to.

  1. Excess Inventory

Yes, it’s a wise decision to carry more inventory than you believe you need. You never know when you’ll get a surplus of demand. You need additional products to meet that demand.

However, there is such thing as too much inventory. Every dollar you put towards your inventory is cash tied up that you can use elsewhere. Keep your inventory levels only as high as needed to preserve your money.

Do Everything You Can to Fix Cash Flow Problems

You can’t afford to get caught off guard in business and not have the cash to deal with immediate problems. Without enough money in the reserve, you’ll suffer from devastating setbacks that put your business at risk.

You need to avoid all the common cash flow problems if you want to see business success. Keep the issues above in mind to make cash flow management easier.

Check out the blog for more insight into managing business finances.


The Art of the Cold Email

Whether you’re just starting your business or are looking to scale, you’re probably focusing a lot of your time on getting new customers and prospects. You’re trying all of the new marketing tips and tricks and creating awesome sales funnels, but they aren’t necessarily working as well as you thought.

What more can you do?

Introducing the cold email. Well, you’ve definitely heard of (and dreaded) cold emails before, but it’s only because you were crafting the perfect one.

Reaching out to strangers and cold prospects can be intimidating, especially because a large percentage of them reject your offer or simply don’t answer. Don’t let this deter you from using this method, though. You never know what can come from sending a cold email to the right person.

Below are tips on how to create the perfect cold email to send your business propositions to.

Get Specific

Now, you can’t simply find a list of emails and send your cold email without thoroughly vetting the contacts. It’s important to be specific and show the recipient that you’ve looked into their business or problems.

Firstly, you should always address the prospect by name. Personalizing the email will get you so much further than if you send a generic one.

Use other specific information like their website or their business’s name. For example, if you’re selling insurance, you can use insurance xdate to remind your prospect when their current homeowners’ insurance policy expires. Little details like this can go a long way in a cold email.

Keep It Short

Nobody wants to open a cold email and have to read a novel. Chances are, the person will spend about five seconds skimming the email. If nothing catches their eye in those five seconds, they delete it.

So, keep the email short and to the point. Make it easy to read with short sentences and paragraphs.

Touch on Their Pain

In just a sentence or two, show your recipient that you understand the struggle or pain they’re feeling with their business or lifestyle. This is how you truly connect with them and gain their trust. When done well, they will continue reading to see which solution you are offering them.

Give Them a Transformation

While you may be selling a service or product with great features, it’s the benefits that you really want to sell in your cold email. Show your recipient the transformation they will make when they become your customer.

For example, if selling an insurance policy, don’t go into detail about the coverage and features of the policy. Instead, describe how much money they’ll save and the comfort they’ll feel knowing they’re protected.

Close with a Strong CTA

The point of a cold email is to get the recipient to take action. However, if you don’t put a strong CTA at the end, they won’t know what action to take if they’re interested. Encourage them to schedule a meeting or a demo with you. Make your CTA clear concise, and have it stand out from the rest of the email.

When you follow these five steps, you’ll see a much higher conversion rate when you send cold emails.

Photo by Vlada Karpovich from Pexels

How to Get the Most Out of Online Courses

Whether you’re going back to school or want to brush up on new skills, online courses are a great and convenient way to do it. You can sit at home in your pajamas while learning essential new skills to run your business. From learning new email marketing techniques to copywriting to coding, there are thousands of online courses, both free and for sale, that you can take.

However, sometimes participants in an online course don’t feel like they’re getting as much out of it as if they were sitting in a classroom with other people. So, whether you’re taking training classes for your new job on hsi.com or taking online courses of your own free will, here are some tips to get the most out of them.

Take Notes

To get the most out of an online course, you must be an active listener and learner. The best way to do this is by taking notes either on your computer (which is convenient if you have a double-screen monitor) or by hand.

What’s great about a recorded online course is that you can pause and rewind certain parts if you need more time to understand or want to make sure you wrote it down correctly in your notes.

Limit Distractions

When you’re sitting at home in front of the computer watching a video for your online course, there is plenty of opportunity for distraction. From your family members walking in and asking you a question to your phone lighting up with a notification from social media or a new text message, these distractions can hinder your learning.

Put your phone on silent mode and tell your housemates that you’re taking an online course. Close your door and put on headphones to get the full experience of learning online.

Schedule Your Learning Time

Since many online courses are a go-at-you-own-pace style, you must have good self-discipline to ensure you actually watch the course and learn from it. A good way to do this is to schedule in your daily routine a time to sit and watch a lesson or chapter.

It’s important that you see this time as non-negotiable. Just like a doctor’s appointment or a work meeting, it’s something you must do at that time. Having this mindset will help you be more disciplined and actually get through your online course.

Set an Objective

It can be easy to forget why you’re taking this online course, especially if there are other things you would rather be doing. Simply remember that this is for your own career advancement and individual learning. At the end of this course, you can transform your current business or lifestyle with the things you’ve learned and make more money or better brand yourself and more.

Write your goal or objective on a piece of paper and keep it next to your computer. If you’re getting bored or feeling unmotivated while watching your course, read your goal and remind yourself why you’re taking it.

Image by Gerd Altmann from Pixabay

How To Separate Work Time From Personal Time

If you have a regular 9-to-5 job, you may not struggle as much to separate work and personal time. When you clock out at the end of the day, you can usually turn your attention to your family, chores, and other aspects of your personal life. The same holds true on weekends or whenever you have days off.

However, if you run your own business from home, the line between work time and personal time can get blurred. Fortunately, there are a few strategies you can implement to be more productive while you work and more present with your friends and family when you “clock out.” So, in today’s post, we are going to look at a few different ways to separate your work time from your personal time!

Create Boundaries With Your Family Members

Do you ever find yourself constantly interrupted when working from home? Maybe your husband comes in to ask what model of bilge heater he should buy for your boat or your toddler comes in crying because they bumped their elbow. Either way, it can be really difficult to get things done when you have a million distractions throughout the day. For this reason, it is vital to set boundaries with your family. While you can’t tell a small child not to come to you with problems, you can have older members of your family help take care of the kids while you’re working. Additionally, you should make it clear to any older family members that you should not be bothered while you are working.

Set Specific Work Hours

It is much easier to create boundaries with your family members when you (and they) know when you work. Setting specific work hours and days can help keep everyone on the same page. Just as importantly, a set schedule can help you stay consistent and focused on your work from one day to the next. If you don’t have set work hours, your work may merge with “family time” or vice versa, making it hard to give proper attention to your business or your family.

Make Realistic To-Do Lists

Many entrepreneurs create really long to-do lists that cannot be feasibly done in one day. This causes them to feel like they need to work extra hours (or days) just to meet their goals. However, this is a quick way to experience burnout and end up being less productive. So, set realistic to-do lists that you can actually accomplish in the allotted time. This will ensure that you don’t have to take away from your personal time to tick off all of the items on your list. If you’re struggling with reasonable to-do lists, try to make to-do lists by day, week, month, quarter, and year. This will help you keep you on track on a daily basis while also focusing on your long-term goals!

Image by Vadim Tashbaev from Pixabay

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