Smart Financial Moves for the New Year: Tax Strategies & Wealth Building with CPA Albert C. Hurston Jr.

In this episode of The Wealth Equation Podcast, host Maurice L. Wilson welcomes CPA and business strategist Albert C. Hurston Jr. to discuss essential financial strategies for entrepreneurs as they close out the year and prepare for tax season. They dive into tax-saving strategies, financial planning for business owners, and common misconceptions about wealth-building.

 

Key Topics Covered:

 

1. Importance of Year-End Financial Clarity

•Albert emphasizes that the first quarter of the year is a crucial time for financial planning, tax preparation, and setting financial goals.

•The key focus should be ensuring books are accurate, updated, and clear to make informed decisions.

•Many business owners wait too long to review their numbers, limiting their ability to optimize tax strategies before deadlines.

 

2. Avoiding the Common “Write-Off” Mistakes

•One of the biggest misconceptions is the idea that purchasing an expensive vehicle (e.g., Tesla or luxury car) is always a good tax write-off.

•Instead, Albert suggests investing in business growth activities like marketing campaigns rather than making unnecessary purchases for the sake of tax deductions.

•He stresses that strategic tax planning should align with business growth, not just tax avoidance.

 

3. Tax Strategy & Business Structure Considerations

•Albert explains the different tax strategies applicable to business owners based on their entity structure (LLC, S-Corp, etc.).

•S-Corps vs. LLCs: Many business owners rush into forming an S-Corp, but Albert warns that it may not always be the best option.

•If structured incorrectly, an S-Corp can complicate hiring family members and create tax inefficiencies.

•Hiring Family Members: Business owners should be strategic about employing their children or spouses and ensure proper documentation to remain compliant.

 

4. Retirement Planning & The Roth 401(k) Shift

•Maurice and Albert discuss how the government is subtly shifting financial incentives toward after-tax retirement savings (Roth 401(k), Roth IRA).

•The removal of the “stretch IRA” provision means non-spouse heirs now have only 10 years to withdraw inherited retirement funds, increasing the tax burden.

•Maurice speculates that tax rates will rise in the future, making Roth accounts more attractive as a long-term wealth-building tool.

•Albert agrees that business owners should integrate retirement strategies into their tax planning, working closely with financial professionals.

 

5. Business Registration & Potential Government Oversight

•Discussion on new business registration requirements and potential government efforts to track businesses more closely.

•Albert speculates that some of these regulations stem from PPP loan fraud and government efforts to ensure businesses are legitimate.

•Maurice suggests these new rules might also be part of a broader strategy to convert more 1099 contractors into W-2 employees, increasing tax revenue.

 

6. The Danger of DIY Financial Strategies

•Albert warns against taking financial advice from social media or generic online sources without consulting a professional.

•Many entrepreneurs implement tax strategies incorrectly, which can cost them more in penalties and legal fees than they would have saved by hiring a CPA.

•He stresses that paying for professional tax and financial advice upfront is a much better investment than dealing with IRS audits later.

 

Key Takeaways:

 

✅ Know your numbers – A clear understanding of financials is crucial for making smart business decisions.

✅ Don’t rush into tax write-offs – A flashy vehicle might not be the best tax move; focus on business growth instead.

✅ Be strategic with your business structure – LLCs and S-Corps work differently when it comes to tax planning and hiring family members.

✅ Think long-term about retirement – Roth accounts may be more advantageous in the face of rising future tax rates.

✅ Stay compliant with new regulations – Business registration rules are evolving, and ignoring them could have consequences.

✅ Consult professionals – Online advice and “one-size-fits-all” strategies can be misleading and costly in the long run.

 

Final Thoughts & Resources:

Maurice and Albert conclude by emphasizing the importance of staying proactive with financial planning and working with trusted advisors to navigate tax laws and build long-term wealth.

 

For more insights on wealth-building strategies, visit wilsonwealth.com.

 

🎙️ Join us next time for Part 2 of this insightful conversation!