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Updated almost 5 years ago,
Pass through deduction plus solo k
So I’ve been reading the new advanced tax strategies book and according to the book, because I am a 1099 realtor, I can use the pass through deduction to take off 20% of my taxable income.
But according to the first tax strategies book, I can tax shield 25% of my yearly income (up to like 54k) into a self directed 401k.
So, combining those strategies, let’s say I make 100k
I can use the pass through to drop my taxable income to 80k...but can I tax shield 20k based on that 80k or still 25k into a self directed 401k based on the 100k?
Thanks!