Imagine that you made $300K/year as a wage-earner – you can defer a maximum of $24,500 into your 401K or 403b plan at work and then will have to pay tax on the rest of your earnings. Instead, consider buying a franchise for $100K and expensing nearly all of the $100K purchase price in the year of purchase. Doing so is like deferring $100K into a 401K…you earned $100K and invested it in a small business and so get a $100K deduction/deferral. Then as the franchise produces profit, you take that profit and another year’s earnings from work and use those funds to purchase franchise #2 in order to defer tax on even more earnings. Repeat year after year.
Accounting and Consulting