Speaker 1: Tax code is made up with seventy seven thousand pages.
Speaker 1: One percent is telling us how to pay taxes. The
Speaker 1: other ninety nine percent is saying, hey, if you follow this,
Speaker 1: you don't have to pay taxes.
Speaker 2: What's the biggest mistake that business owners and make it
Speaker 2: when it comes to taxes.
Speaker 1: Waiting until the next year to file their taxes. Your
Speaker 1: first steps need to be okay, how can I get
Speaker 1: on the right side of the tax code so therefore
Speaker 1: I can save on taxes.
Speaker 3: You talked to a lot of entrepreneurs.
Speaker 4: What's the biggest misconceptional lot that they think is true
Speaker 4: when it comes to taxes.
Speaker 1: That the tax code was put in place to make
Speaker 1: them pay taxes. The tax code is a wealth map.
Speaker 1: Everything that you need to generate wealth is a tax deduction.
Speaker 5: What's some advice for real estate owners?
Speaker 1: If you want to live tax free, you have to
Speaker 1: have real estate because when it comes to the tax code,
Speaker 1: the government's like, listen, we can't house everyone. You do
Speaker 1: us this solid will allow you to keep your money.
Speaker 1: If Warren Buffett said, thanks to the mini loopholes put
Speaker 1: in place by the IRS, I pay a lower tax
Speaker 1: rate than my secretary. If you have an LLC and
Speaker 1: you're trading in that LLC. That doesn't automatically make it
Speaker 1: business in. You have to be doing it full time.
Speaker 3: So is there qualifications that make you full time?
Speaker 1: It's a thousand hours. That's probably like three hours a day.
Speaker 1: The tax code does not incentivize you for working more.
Speaker 1: They incentivize you for generating income as passively as possible.
Speaker 2: All right, ladies and gentlemen, welcome back. We have a
Speaker 2: friend of the show, friend of the program. She has
Speaker 2: been on the show more than anybody, for.
Speaker 1: Sure, I have, Yes, I didn't know that.
Speaker 4: Yes, you've been on multiple platforms I have. You were
Speaker 4: our first guests and our most returning guess.
Speaker 1: I love that.
Speaker 2: Yeah, miss business, somebody has ven Vendom Marketplace sponsor. When
Speaker 2: you're thinking the Vendom Marketplace, she had the best booth
Speaker 2: for so many years that she actually just took over
Speaker 2: the whole thing and INVESTMST.
Speaker 4: Rightfully, So it was it was only right you changed
Speaker 4: the look of what the vendor marketplace was so rightfully.
Speaker 2: So, yeah, you spoke at INVESTMST every year. Oh yeah, yeah,
Speaker 2: you know. I don't think we have to introduce you.
Speaker 2: Everybody already knows who you are. If they watch her
Speaker 2: and your legion, they obviously know misbusiness.
Speaker 5: So how you been.
Speaker 1: I've been great under a lot of pressure. I got
Speaker 1: to make sure that investments is you know, it's great.
Speaker 1: You got to make sure that the people are feeling me.
Speaker 1: That's my main objective when I'm there.
Speaker 5: Investments it's nothing like it. It's nothing like it.
Speaker 4: I think what's beautiful is that twenty nineteen we first meet, Yes,
Speaker 4: a lot of changes. Then our business has grown changed.
Speaker 4: I mean, your business has grown. You're I feel like
Speaker 4: you're everywhere. I feel like I need to be on
Speaker 4: some of these retreats that are happening.
Speaker 3: Talk to us about the growth over the.
Speaker 1: Past year or so over the past year, Oh my god. Okay,
Speaker 1: so I really just transition my mark. So marketing has
Speaker 1: always been at the forefront of everything that I've done,
Speaker 1: but I feel that it was more important for me
Speaker 1: to really get to the people and really get them
Speaker 1: to understand that business can really be their pathway to wealth.
Speaker 1: I think that a lot of times our mindset is
Speaker 1: business is our pathway to paying our bills or leaving
Speaker 1: our job, but not really thinking about like, wow, if
Speaker 1: I stop overpaying in taxes. If I take this money
Speaker 1: and I invest it, that that's my pathway. And so
Speaker 1: just doing that. I've just been trying to figure out
Speaker 1: different ways to touch people, so like you know, invest fest,
Speaker 1: miss business for the people, just really making sure that
Speaker 1: I'm touching people and then creating more moments where I
Speaker 1: can be in person. So I'm doing retreats, you know,
Speaker 1: I'm on a webinar consistently, right, I just feel like
Speaker 1: I have to touch people. I can't just it just
Speaker 1: it can be a distance between me and the people
Speaker 1: for it.
Speaker 5: Yeah, so let's get right to it.
Speaker 2: You know, this is always going to be informational session
Speaker 2: whenever we sit down with you. So, what's the biggest
Speaker 2: mistake that business owners are making when it comes to taxes?
Speaker 1: Oh, waiting until the next year to file their taxes.
Speaker 1: I think that right now, in twenty twenty six, I
Speaker 1: think most people know that their tax deductions available, they
Speaker 1: know that there are strategies that they can implement. But
Speaker 1: most business owners and individuals, they're waiting until let's say,
Speaker 1: in our case, right right now, they're waiting until twenty
Speaker 1: twenty six, when they shouldn't wait to twenty twenty six.
Speaker 1: They have to focus on tax strategy in twenty twenty five,
Speaker 1: and more importantly than just not focusing on tax plan,
Speaker 1: and what they're also missing is paying attention to who's
Speaker 1: in office, not being emotional about it because the reality
Speaker 1: is every single president has someone that they have to
Speaker 1: literally please, whether it be themselves, right, or whether it
Speaker 1: be someone that contributed to their campaign. Everyone has a
Speaker 1: have someone that they have to please. And so with
Speaker 1: looking at that, it's very important that when you're a
Speaker 1: business owner or even if you're an individual. So let's
Speaker 1: start with an individual, right, if your individual have W
Speaker 1: two income, your first steps need to be Okay, how
Speaker 1: can I get on the right side of the tax
Speaker 1: code so therefore I can save on taxes. Okay. Once
Speaker 1: you do that, you now have to make a decision.
Speaker 1: Am I going to invest or am I going to
Speaker 1: start a business? And it really is just that I
Speaker 1: tell people all the time, like listen, if you're looking
Speaker 1: for a strategy for W two employees, they're very slim.
Speaker 1: It's just not there. And so really focusing on and
Speaker 1: making a decision and say, okay, you know what, I'm
Speaker 1: going to start a business whether big or small, or
Speaker 1: I'm going to start to invest. Then after that you
Speaker 1: have to say, you know what, I'm going to look
Speaker 1: at my income throughout the year and make a decision
Speaker 1: on how much I want to pay the irs. We
Speaker 1: don't treat the IRS as though it's a decision. We
Speaker 1: treat it as though it's something we have to pay. Right,
Speaker 1: because we were never really taught we were to talk thought,
Speaker 1: go to school, get a job, make money, get a promotion,
Speaker 1: make more money, buy that house, pay you know, and
Speaker 1: so with that what happens We start making more money,
Speaker 1: we start paying more taxes. But if we're never really
Speaker 1: focused on any sort of strategy and implementation, then we
Speaker 1: end up in a really bad place.
Speaker 3: So what are the things? Right?
Speaker 4: Like, we have conversations all the time and again paying
Speaker 4: attention to what's happening in the task com We had
Speaker 4: a conversation about the salt tax, like all the things. Yes,
Speaker 4: what are the things that people should be considering before
Speaker 4: we get to December thirty first of each year?
Speaker 3: Right? Because we got to plan this thing. O.
Speaker 1: Absolutely, if you are a business owner, your entity structure,
Speaker 1: so you have to start at your foundation, LLC S
Speaker 1: corpse ce corp, nonprofit trust. How do you need to
Speaker 1: actually structure your entities what is important to you. I
Speaker 1: think a lot of business owners don't think about that,
Speaker 1: so they're not really considering in saying, hey, you know
Speaker 1: what I want to go for funding, I want to
Speaker 1: apply for a house, I want to do certain things.
Speaker 1: You have the leverage to make all of those decisions,
Speaker 1: So you have to understand where you're going. You need
Speaker 1: to make sure that your structure is correct, and then
Speaker 1: you need to actually tap into the tax code. So now,
Speaker 1: based on the big beautiful Bill, there's been so many
Speaker 1: changes that has been at the benefit of taxpayers. Granted, guys,
Speaker 1: Trump is taken on when he leave in twenty twenty eight,
Speaker 1: but they are here, so some of them being the
Speaker 1: which actually parents can start contributing to their Trump account,
Speaker 1: right they have their Trump account, and so that's really
Speaker 1: important because a lot of people want there's a lot
Speaker 1: of misconception around that. So I do want to just
Speaker 1: take a moment to explain that, because when it comes
Speaker 1: to the Trump account, most people think when you fouled
Speaker 1: your taxes, you were supposed to fill out Form forty
Speaker 1: five to forty seven to say, hey, I want my
Speaker 1: child to actually get this see I like forty five
Speaker 1: forty seven. Yes, yes, you know Trump, Yes, so you
Speaker 1: know it's so crazy. I didn't even picked up on that,
Speaker 1: but I know how your mind works. So yeah, So yeah,
Speaker 1: you had to complete form forty five to forty seven
Speaker 1: to say, hey, I want my child to actually be
Speaker 1: able to receive this thousand dollars contribution retirment contribution. Most
Speaker 1: people did not do that. Now most people are like,
Speaker 1: oh my god, I missed my opportunity. You didn't miss
Speaker 1: your opportunity. You can still download the app, sign your
Speaker 1: child up, and then you can complete the forty five
Speaker 1: to forty seven form online, and so that's really important.
Speaker 1: They do contribute one thousand dollars to it for children
Speaker 1: that were born January first, twenty twenty five through December
Speaker 1: thirty first, twenty twenty eight, so it's not something that's ongoing.
Speaker 1: So if you've had a child within that within that timeframe,
Speaker 1: then make sure that you go ahead and get that
Speaker 1: for your child. Now, the big thing here is that
Speaker 1: what most people don't know is that you also can
Speaker 1: make contributions to You can make personal contributions. It's not
Speaker 1: a tax deductions, but still an actual benefit to your child.
Speaker 1: So that's one that I definitely want everyone.
Speaker 3: I think is it captre like five thousand.
Speaker 1: Yes, cap that five thousand. Yeah, in terms of the
Speaker 1: personal contribute, I know you've got no.
Speaker 3: Kids at that age, but try to help people.
Speaker 1: Yes, but yes, it is six thousand, well five thousand
Speaker 1: additional that you can contribute. So that's that's a good one,
Speaker 1: and I want everyone to take advantage of it. I
Speaker 1: think the big thing. Sometimes people are like, oh, I'm
Speaker 1: not going to do it. Oh I have to do
Speaker 1: some additional work. No, if it's there, if it's available,
Speaker 1: take advantage of it. So that's one that I think
Speaker 1: it's current that we really need to focus on the
Speaker 1: other now when we really start getting into the tax deductions. Right.
Speaker 1: I love the fact that they brung bonus appreciation back, right.
Speaker 1: That is amazing. You've used bonus appreciation with your g wagon, right,
Speaker 1: And so I think that it's so important for us
Speaker 1: to really tap into bonus appreciation because we were losing it.
Speaker 1: We were losing it. We were down to only being
Speaker 1: able to take forty percent of the value of your asset.
Speaker 1: Explain what that is. So basically, when you have an asset,
Speaker 1: the irs says, listen, you have an asset, you cannot
Speaker 1: just in all cases take the full value. Right, it's
Speaker 1: not an actual expense.
Speaker 5: The asset we talked about sphyfically about cars or.
Speaker 1: Any cars that can be equipment. It doesn't necessarily just
Speaker 1: have to be cars. It can be any asset. But
Speaker 1: a vehicle in the case of a business, is considered
Speaker 1: an asset. So if you have any asset in your business,
Speaker 1: the IRS typically says, listen, you can depreciate the value
Speaker 1: of that asset over specific period of time. So that's
Speaker 1: standard depreciation. Right, vehicle is five years, the home is
Speaker 1: twenty seven and a half years. Every asset has a
Speaker 1: different life. They call it a useful life. But bonus depreciation, says, listen,
Speaker 1: we're going to allow you to accelerate some of that.
Speaker 1: Will allow you, depending on the asset, to take one
Speaker 1: hundred percent of the value of the vehicle or the
Speaker 1: value of the machine, the machinery, whatever it is, whatever
Speaker 1: asset that you purchase. And so that is key, Right,
Speaker 1: that's key because I use that for business clients, I
Speaker 1: use it for real estate clients, and I am wiping
Speaker 1: out hundreds of thousands of dollars, right, because the tax
Speaker 1: code says, so the tax code says that we can
Speaker 1: do it, and so bonus appreciation is a really, really,
Speaker 1: really good strategy that I'm always encouraging, Like, you know,
Speaker 1: I've used it. I got you.
Speaker 3: We had the phone.
Speaker 4: This is this future as we had this phone call
Speaker 4: in twenty twenty four when it was getting down to
Speaker 4: forty percent, and we're like, we might lose this, but
Speaker 4: just wait on getting the car because potentially it could
Speaker 4: come back.
Speaker 3: And here it's coming back.
Speaker 1: It's coming back.
Speaker 4: Now we have another conversation about potentially investing in your
Speaker 4: business but also maybe using another business right where there's
Speaker 4: multiple partners, where there might be two partners, so it
Speaker 4: changes the amount of depreciation that goes to you as
Speaker 4: an individual.
Speaker 3: We really be on the phone.
Speaker 1: We'll be on the phone. We'll be talking because guess what,
Speaker 1: when you're making money, I do not tell people. I
Speaker 1: don't care how much money you make. Most people think, Okay,
Speaker 1: you know what, I'm going to make more money and
Speaker 1: I'm just going to focus on making money. No, when
Speaker 1: you make more money, the first step is making more money.
Speaker 1: The second is keeping it. The second is keeping it.
Speaker 1: And so I know you guys are always like, listen,
Speaker 1: do I have to pay that? What is this? What
Speaker 1: is the tax deductions? Let's make sure that I'm doing
Speaker 1: these things. And that's how it should be. But the
Speaker 1: reality is most business owners don't have a CPA that
Speaker 1: they can consistently communicate with. They're filing their taxes with
Speaker 1: like tax preparers and they're there January through April and
Speaker 1: then they're out after that, and so that's important as well.
Speaker 4: My brother actually called me recently he was doing his
Speaker 4: taxes and he was talking about the salt deduction, which
Speaker 4: actually changed.
Speaker 3: You want to just give the people the the in
Speaker 3: phone us.
Speaker 1: Yes, I love that the salt deduction increased, because back
Speaker 1: in two thousand and eighteen, the salt deduction was decreased
Speaker 1: to ten thousand dollars, which means the salt deduction just
Speaker 1: means your state in local taxes, so you get a
Speaker 1: deduction for all of the state and local taxes that
Speaker 1: you pay. And it was it was it was a
Speaker 1: hard tax season for us that year because a lot
Speaker 1: of homeowners were being impacted because under the salt you
Speaker 1: have your state taxes, your local taxes, you also have
Speaker 1: your property taxes. So if you are making a certain
Speaker 1: amount of money. Let's say you make one hundred thousand dollars.
Speaker 1: Let's say you live in New York, New York City.
Speaker 1: Between state and local, you're already at that ten thousand.
Speaker 1: So that means you were used to getting a bigger
Speaker 1: refund because your real estate taxes were going to also
Speaker 1: be added to that. But they were capping it at
Speaker 1: ten thousand dollars, So that was that was a very
Speaker 1: hard tax season, a hard pill to swallow. But they've
Speaker 1: now increased it to forty thousand dollars and it has
Speaker 1: been a game changer. Everyone's happy this year because they
Speaker 1: are seeing larger refunds, which is really good. But yeah,
Speaker 1: so I definitely think that paying attention to the tax
Speaker 1: code is so important because of little things like that.
Speaker 1: Some people don't even know why they're getting a larger refund,
Speaker 1: and you must know why you're getting a larger refund.
Speaker 5: What do you?
Speaker 1: What do you?
Speaker 2: What's some advice for a business owners, not business owners,
Speaker 2: real estate onners in, real estate investors.
Speaker 1: Oh yeah, real estate. So one thing I want to say,
Speaker 1: real estate, come, come, come to me. I need you
Speaker 1: all to understand that real estate is great for cash flow. Yes,
Speaker 1: real estate is great for appreciation obviously if it's purchase right,
Speaker 1: But real estate is also great for tax purposes. And
Speaker 1: that is really the secret weapon that most people don't acknowledge.
Speaker 1: And they're most like, oh my god, if invest in
Speaker 1: real estate because you know it can produce cash flow,
Speaker 1: invest in real estate because you know it's going to appreciating,
Speaker 1: you can leave it, and all of those things and
Speaker 1: can be true. But what most people don't talk about
Speaker 1: is that real estate is the ultimate tax asset and
Speaker 1: it is the way to help you live tax free.
Speaker 1: So if you want to live tax free, you have
Speaker 1: to have real estate. And why is because when it
Speaker 1: comes to the tax code, the government's like, listen, we
Speaker 1: need you guys. We need you guys to be landlords.
Speaker 1: We can't house everyone. You do us this solid we'll
Speaker 1: allow you to keep your money. Right, you house these
Speaker 1: people and will allow you to keep your money. And
Speaker 1: you do that through depreciation. So I was just talking
Speaker 1: to you about cast about bonus appreciation. I implement that
Speaker 1: and cost segregation. So just how it works with real
Speaker 1: estate is instead of going in when you have real estate,
Speaker 1: if you have real estate, which and I'm going to
Speaker 1: say this because while it is a requirement, most people
Speaker 1: aren't doing it. You must depreciate your home if you
Speaker 1: are investing in real estate, not your primary residence. So
Speaker 1: if you're invested in real estate, you must depreciate your
Speaker 1: home every year. But that's twenty seven and a half years.
Speaker 1: So obviously you know you're dividing something about twenty seven
Speaker 1: and a half years. That's a big number. So while
Speaker 1: you do get some depreciation expense, it's not the largest.
Speaker 1: So what you should do is you should perform a
Speaker 1: cost segregation study. And what a cost segregation study does
Speaker 1: is it dissects the property. When you have a building,
Speaker 1: your building is made up of the building, land improvements,
Speaker 1: a roof, HVAC. It has so many different compartments. It's
Speaker 1: not just the building. And so me as a tax strategist,
Speaker 1: I'm like, m well, let's dissect that building. Because the
Speaker 1: IRS says land improvements can be depreciated over fifteen years,
Speaker 1: and they say, okay, well personal property can be depreciated
Speaker 1: over five years. So how about I dissect the property
Speaker 1: versus making my client just only divided over twenty seven
Speaker 1: and a half years. And so that has to be
Speaker 1: done through a cost segregation analysis. You dissect the property
Speaker 1: and then what happens there is then bonus appreciation comes
Speaker 1: into play. So bonus appreciation says, okay, well you have
Speaker 1: these assets, let's accelerate some of that depreciation. Let's take
Speaker 1: one hundred percent of it. Now, to be clear, you
Speaker 1: cannot take one hundred percent of the value of a building,
Speaker 1: but you can take one hundred percent of the value
Speaker 1: of let's say personal property or land improvement. So on average,
Speaker 1: what happens when I do a cost segregation study, most
Speaker 1: clients are looking at about twenty five to thirty percent
Speaker 1: of the value of the real estate property. So therefore
Speaker 1: now they're able to deduct that. And the great thing is,
Speaker 1: there's so many different strategies that's like probably a whole
Speaker 1: another episode, but there's so many different strategies to make
Speaker 1: sure that you can use those losses from your real
Speaker 1: estate to wipe out your real estate income, your business income,
Speaker 1: you're even your W two income. So therefore now it
Speaker 1: puts you in a position where you're getting larger refunds
Speaker 1: and lowering your taxes.
Speaker 4: So we talk about investing a lot and a lot
Speaker 4: of people have made substantial gains.
Speaker 1: I think, don't you guys have like one thousand thousand
Speaker 1: percent club.
Speaker 4: Shout out to the green jacket community, right, So these
Speaker 4: people that have made whole hopefully long term capital gains
Speaker 4: is going to be you know, taxed at a different rate.
Speaker 4: It feels like is real estate the next move to
Speaker 4: offset some of those gains or depending on obviously how
Speaker 4: much they've made, Like when we ask about mistakes, like
Speaker 4: the first thing is like, yes, we have the money.
Speaker 4: It's exciting and wow, I've never had this much in
Speaker 4: your mind. You know that part of this is going
Speaker 4: to the government. The person who's doing it is not
Speaker 4: thinking that because of any excitement. Is that the next
Speaker 4: phase or there other things that we should be looking
Speaker 4: at to offset some of this so we can keep more.
Speaker 1: Yes, So to my green jacket community and those approaching.
Speaker 1: One thing to note is that you there are different
Speaker 1: buckets of income, some buckets so you I just mentioned
Speaker 1: how you can use real estate losses to offset business losses.
Speaker 1: If you have capital gains, long term capital gains, you
Speaker 1: can't take that and offset your business or you you know,
Speaker 1: it won't be added to your business. It is going
Speaker 1: to be in a separate bucket and it's going to
Speaker 1: be tax So the only thing that can offset a
Speaker 1: long term capital gain is a short term capital gain, right,
Speaker 1: So you have to have it in that bucket now, right.
Speaker 1: Because again, and I want to just stay on this
Speaker 1: actually before I go into before I go a little
Speaker 1: further in terms of talking about how you can navigate
Speaker 1: that and all those things, one thing I want everyone
Speaker 1: that invests to know is that Warren Buffett said, thanks
Speaker 1: to the mini loopholes put in place by the IRS,
Speaker 1: I pay a lower tax rate than my secretary. And
Speaker 1: I want you guys to really lean into that and
Speaker 1: understand what that means. That means that Warren Buffett, one
Speaker 1: of the most wealthy people in the world. The highest
Speaker 1: tax rate he will ever pay is twenty percent on
Speaker 1: any gains that he makes, while his secretary the highest
Speaker 1: that he will and again I'm only talking federal I'm
Speaker 1: not talking state, local, Social Security tax, Medicare tax.
Speaker 6: Right.
Speaker 1: The most that she will pays third thirty seven percent.
Speaker 1: So we first have to understand, Okay, well, maybe if
Speaker 1: you are you do have that earned income that could
Speaker 1: be at thirty seven percent, Maybe a strategy is to
Speaker 1: shift some of that income into trading. So therefore, now
Speaker 1: those gains are only going to be tax at twenty percent.
Speaker 1: That's a seventeen percent reduction in the taxes that you
Speaker 1: would pay. All right, So that's the first thing. Now
Speaker 1: for all my green jacket people, I know you guys
Speaker 1: a prayer like listen, I'm about to be out here.
Speaker 1: I'm about to do this full time. For those people,
Speaker 1: you can become what's called trader status. You can elect
Speaker 1: for trader status. Trader status says that the IRS is
Speaker 1: looking at yours, looking at your trading like a business.
Speaker 1: Because what happens now is when you trade, your fees
Speaker 1: aren't deductible, your education isn't deductible, none of those things
Speaker 1: are deductible. But when you become trader status, the government says, okay,
Speaker 1: we're going to actually look at this as a business,
Speaker 1: and now your income instead of it instead of it
Speaker 1: being looked at as capital gains or income, it just
Speaker 1: looked at as income. Now you can deduct your vehicle,
Speaker 1: your education, the fees that you're paying, and all of
Speaker 1: those things. So now that is a strategy that can
Speaker 1: also help.
Speaker 5: But it'll be higher income and be higher tax rate.
Speaker 1: But it depends and it would be a higher tax rate.
Speaker 1: And that's why tax planning and tax strategy is so important,
Speaker 1: because now you have to understand and say, okay, well
Speaker 1: do I have enough expenses or how can I plan
Speaker 1: and position myself to Cause let's just say that scenario.
Speaker 1: I may say to you, okay, well, if you're invested
Speaker 1: in stocks, we don't want to just leave it as
Speaker 1: just business income and have the expenses. Depending on how
Speaker 1: much profit you have, we may now also need to
Speaker 1: go out and purchase some real estate, or you may
Speaker 1: need to go and purchase a brand new computer system. Right,
Speaker 1: you have the ability to then say, okay, what do
Speaker 1: I need to do? But what happens when you just
Speaker 1: have trading income? It's kind of stuck at whatever that
Speaker 1: rate is.
Speaker 4: So in that example, Warren Buffett is trading, well, they're
Speaker 4: trading stocks, but they're doing underbrush your hathaway the individual.
Speaker 4: Should they have it in their individual brokerage or should
Speaker 4: that brokerage now be an LLC?
Speaker 1: Oh, so happy that you ask that question. It is
Speaker 1: not about you if you have an LLC. If you
Speaker 1: have an LLC and you're trading in that LLC, that
Speaker 1: doesn't automatically make it business income. It will still be
Speaker 1: capped at I mean tax at capital gains rates when
Speaker 1: it's added to your taxes. You have to be doing
Speaker 1: it full time. That's all the government really wants, right,
Speaker 1: whether it's real estate or whether it is trading. They
Speaker 1: want to understand that you're doing this full time and
Speaker 1: if so, then you get the benefits.
Speaker 3: Okay, gotcha.
Speaker 4: So is there a qualifications that make you full time?
Speaker 4: Is it amount of trades? Is the amount of hours? Is
Speaker 4: it income level? Like how today.
Speaker 1: It's ours hours? Yeah, so it's ours, So it's one
Speaker 1: thousand hours, which if you do the math, that's probably
Speaker 1: like three hours a day. Right. And I always tell
Speaker 1: people the tax code does not incentivize you for working more, right,
Speaker 1: they incentivize you for generating income as passively as possible. Right,
Speaker 1: So it doesn't have to be it's not an income amount.
Speaker 1: And then you also can't have W two income. You
Speaker 1: have to be doing this full time.
Speaker 3: I mean that makes sense if you think about it.
Speaker 4: A lot of people that are in the community, they're
Speaker 4: in front of their computers doing this three hours a day.
Speaker 4: A lot of them, I don't know how many are entrepreneurs,
Speaker 4: but I mean, it's good information to know.
Speaker 1: Yeah, yeah, and again these are strategies. I have a
Speaker 1: client she literally her husband works, her husband works, she
Speaker 1: has w two income, and she quit her job. She's like,
Speaker 1: because it benefited her to be able to have that status,
Speaker 1: So therefore they can benefit from the tax code. To
Speaker 1: take advantage of the tax code, you have to make
Speaker 1: some decisions. You can't just stay the same and then
Speaker 1: want to reap the benefits. You're going to have to
Speaker 1: make some decisions.
Speaker 2: What's the best advice for people as far as if
Speaker 2: they have a family, is it married to foul jointly
Speaker 2: or head of household? The child tax credit? Should you
Speaker 2: file as individual single? Like, what's break that down?
Speaker 1: So if you are, it really depends on where you are.
Speaker 1: So let's just start with married filing joint versus married
Speaker 1: filing separate. There's a few different things. It's going to
Speaker 1: benefit taxpayers to fiul mary filing joint. However, sometimes, and
Speaker 1: this happens a lot, one spouse just be wild.
Speaker 6: So one spouse they may go exempt for the entire year,
Speaker 6: or they are just really bad with finances, And there's
Speaker 6: usually one spouse who's really good.
Speaker 1: What's finances and they're like, I don't want any parts
Speaker 1: of that right, Or they may be going through let's say,
Speaker 1: like child support, or you know, like there may be
Speaker 1: different reasons why people will decide that, hey, I'm going
Speaker 1: to file separate, But if you have the opportunity, I
Speaker 1: would suggest that you fil mary filing joint because you
Speaker 1: are going to receive a lot of benefits. What a
Speaker 1: lot of people don't know is that you're pretty much
Speaker 1: penalized for filing married filing separate. If you invest in
Speaker 1: real estate, you can't take losses if you file mary
Speaker 1: filing separate, and so you know, it's different. You are
Speaker 1: taxed as a single person, so which means your standard
Speaker 1: deduction is lower. You certain child tax credits you don't get,
Speaker 1: and so again it's a decision. Some people are willing
Speaker 1: to take it because they're like, no, this person's wilent.
Speaker 1: They're not taking my entire refund, because that's what it
Speaker 1: comes down to. They're like, they're not going to take
Speaker 1: my entire refund because you want to go exempt the
Speaker 1: entire year. You don't understand the arguments that I'm a
Speaker 1: part of.
Speaker 5: It's crazy about the child tax credit.
Speaker 1: Yeah, so in terms of filing like married filing joint
Speaker 1: or just to be make.
Speaker 5: People aware of that. A lot of people don't even
Speaker 5: know about that.
Speaker 1: Yes, absolutely, So you have the child tax credit, and
Speaker 1: the child tax credit actually increase this year as well,
Speaker 1: which I'm I was very happy about. So the child
Speaker 1: tax credit increased for but it doesn't differ right Mary
Speaker 1: fouling joint. It really is an income limit threshold, so
Speaker 1: it depends on how much you're making. That will determine
Speaker 1: if you're able to take the child tax credit. But yes,
Speaker 1: if you have a child and if you're filing them
Speaker 1: on your taxes, you should definitely be getting your child
Speaker 1: tax credit.
Speaker 4: I wonder, as I mean, you talked to a lot
Speaker 4: of entrepreneurs and the past seventy.
Speaker 1: Is for sure hundreds of thousands.
Speaker 4: What's the biggest misconceptional lot that they think is true
Speaker 4: when it comes to taxes?
Speaker 1: The biggest misconception, HM, I would say that the biggest
Speaker 1: misconception is that the tax code was put in place
Speaker 1: to make them pay taxes. That I think that's the
Speaker 1: biggest misconception because if we really look at the tax code,
Speaker 1: the tax code is a wealth math. Everything that you
Speaker 1: need to generate wealth is a tax deduction. Contributing to
Speaker 1: your retirement, starting a business to generate more cash flow,
Speaker 1: investing in assets, all of these things, investing into the
Speaker 1: stock market, all of these things that you need to
Speaker 1: build wealth to be financially free, to live the life
Speaker 1: that you want, are all tax deductions. But you know
Speaker 1: it's not our fault, right, We've taught shift. Yeah, it
Speaker 1: is a mindset shift because if we think about it, right,
Speaker 1: what happens April fifteenth? What's April fifteenth tax day? Tax day? Right?
Speaker 1: But realistically, April fifteenth is just the deadline to pay
Speaker 1: the irs if you owe them. So if we think
Speaker 1: about it, we've been conditioned to just think about taxes
Speaker 1: only when it comes to paying taxes, And so realistically
Speaker 1: they're saying, hey, April fifteenth is come and file your taxes.
Speaker 1: But I can file your taxes in May. I can
Speaker 1: find your taxes in October. It's the deadline to pay taxes.
Speaker 1: If we really want to look, when I was in corporate,
Speaker 1: what we did We focus on taxes all year round.
Speaker 1: Why because if we're going to make a change for
Speaker 1: twenty twenty six, we need to make it in twenty
Speaker 1: twenty six. We can't wait till twenty twenty seven, February
Speaker 1: February to say, oh man, it's taxis and now let
Speaker 1: me gather my documents, let me now start thinking about it.
Speaker 1: It's already too late. So I think that's the biggest
Speaker 1: misconception that they have. And I think that if we
Speaker 1: lean more into the tax code and not the tax
Speaker 1: code is made up of seventy seven thousand pages, one
Speaker 1: percent is telling us how to pay taxes. The other
Speaker 1: ninety nine percent is saying, hey, if you follow this,
Speaker 1: you don't have to pay taxes. And that's I think
Speaker 1: the biggest misconception.
Speaker 2: Okay, let's talk about it. Invest Fest. Okay, obviously you
Speaker 2: play a major part. So you have the Vendom marketplace.
Speaker 2: Yes it's sponsoring. Now you're going to be speaking. But
Speaker 2: you have a workshop, yes, right, let me talk about that.
Speaker 1: Yeah, So the Entrepreneur's Boardroom. I actually did the Entrepreneur's
Speaker 1: Boardroom last year and it was received really well. My
Speaker 1: goal with the Entrepreneur's Boardroom is just to have a
Speaker 1: place where business owners can have a holistic conversation because
Speaker 1: a lot of times they're having a conversation about growing
Speaker 1: a business saving on taxes, how to get access to capital,
Speaker 1: how to actually have this business help them build wealth.
Speaker 1: But it's very difficult for them to piece it all
Speaker 1: together because they're not having the conversation all at once.
Speaker 1: And so me and my friends.
Speaker 3: We come out I was and that was it.
Speaker 1: We come out and just put it all together. Because
Speaker 1: as I mentioned, the tax code is a roapemap and
Speaker 1: so yes, I can talk about taxes all day, but
Speaker 1: it would be super incomplete if I didn't talk about,
Speaker 1: you know, the cash flow aspect of it, or if
Speaker 1: I didn't talk about how you need to properly pusition
Speaker 1: in your business so therefore you can access capital. Because
Speaker 1: if we're really going to talk about getting ahead and
Speaker 1: closing the wealth gap, we have to understand how to
Speaker 1: responsibly utilize other people's money. So realistically, the entrepreneur's boardroom
Speaker 1: is just a workshop where I Am going to really
Speaker 1: have a be able to have a conversation holistically with
Speaker 1: entrepreneurs to help them really understand, Okay, what do I
Speaker 1: need to do so therefore I can have this business
Speaker 1: serve me versus me just always serving everyone else. And
Speaker 1: so that's what are some tips to do that to
Speaker 1: to have your business serve you you have, okay, So
Speaker 1: the first thing is you have to be clear on
Speaker 1: what you want from your business. Right do you is
Speaker 1: it a money grab? And that's okay? Right is it
Speaker 1: a money grab? Do you plan to sell your business?
Speaker 1: What is your vision for your business? Because all of
Speaker 1: those things matter, So be becoming very clear on the
Speaker 1: path that you want for your business. Do you want
Speaker 1: to start a business or do you want to buy
Speaker 1: a business? For me, I started three businesses, I'm starting
Speaker 1: nor more businesses. I'm ready to buy businesses, right, so
Speaker 1: do you want to buy businesses? So really just figuring
Speaker 1: out how you want to enter business or how do
Speaker 1: you want to grow in business. Also really focusing on
Speaker 1: how can you keep more money? You've already worked so
Speaker 1: hard for this money. Most people, if they need more money,
Speaker 1: they're like, Okay, let me go out and make more money,
Speaker 1: let me go get another job, let me start another business.
Speaker 1: But the reality is they're sitting there giving fifty percent
Speaker 1: of their money away and not even mindful of it.
Speaker 1: And it's like you already work so hard for that.
Speaker 1: So I think just becoming clear, focusing on your structure,
Speaker 1: your taxes, really really taking time, and I know most
Speaker 1: people are afraid of the IRS. The IRS is nothing
Speaker 1: to be afraid of. Okay, the tax code is there,
Speaker 1: we're just ignoring it. It's there, and wealthy people will
Speaker 1: use it right unapologetically, while we're like, oh, man, I
Speaker 1: don't want to get audited it. If you get audited
Speaker 1: it and you spent the money and it's in the
Speaker 1: tax code, you want, you know. And so I think
Speaker 1: that fear is keeping a lot of entrepreneurs away from
Speaker 1: just really taking a time to understand the IRS. But
Speaker 1: thanks to you guys, you know, people get it. They
Speaker 1: get it. They get it. I hear it all the time.
Speaker 1: They're like, I say, o ey l, no, I got
Speaker 1: to save all my taxes. I can't. I can't. I
Speaker 1: can't keep giving my money away. I'm like, yes, you
Speaker 1: get it, Yes, But yeah, I think just really focusing
Speaker 1: on just allowing and really understanding that you come first
Speaker 1: in their business, and that's more of a mindset thing.
Speaker 1: But I think most people are just like I'm serving,
Speaker 1: I'm serving, I'm serving. I just want to serve, But
Speaker 1: who's serving you? Ninety five percent we are in a
Speaker 1: retirement crisis. Ninety five percent of people are not even
Speaker 1: prepared for retirement. I asked this question all the time,
Speaker 1: who's prepared for retirement? Like right now, do you really
Speaker 1: feel like you're prepared for retirement? People are like no, no, no,
Speaker 1: whether they have W two income or not. But the
Speaker 1: reality is you could use that business to start also
Speaker 1: contributing to your retirement. But most people won't.
Speaker 6: Look.
Speaker 1: They will just be like, oh, I have W two income,
Speaker 1: I'm just gonna, you know, let my job contribute. Or
Speaker 1: they're business owners and no one's doing it for them,
Speaker 1: so they keep telling themselves, Okay, next time, next year,
Speaker 1: next year, And I'm seeing so many people retire and
Speaker 1: they are like, I'm retired, but I now have to
Speaker 1: work and I now have to try to figure it
Speaker 1: out because I'm not prepared. And it is a tax deduction.
Speaker 1: So just being clear and really focusing on you.
Speaker 4: I want you to talk to that person who just
Speaker 4: bought their ticket to invest best. I was in the
Speaker 4: room last year, I mean incredible, blown away. What can
Speaker 4: they expect from the boardroom this year?
Speaker 1: The boardroom this year? Okay, so the boardroom this year
Speaker 1: for everyone. Make sure that you guys come to my workshop.
Speaker 1: It's gonna be on Friday. Make sure that you guys
Speaker 1: come to my work shop.
Speaker 6: Yuh.
Speaker 1: This workshop is for every entrepreneur, whether you're new, whether
Speaker 1: you're existing. It is positioned to help you not only
Speaker 1: think about your business from a structure perspective and how
Speaker 1: it serves you, but also how can you position it
Speaker 1: in the mindset that you need to think through to
Speaker 1: make sure that you're positioning yourself for funding. How do
Speaker 1: you access that capital, how do you get where you're
Speaker 1: going much faster? How do you utilize the tax deductions
Speaker 1: to keep more money in your pocket? And so you know,
Speaker 1: how do you then take that and then build wealth?
Speaker 1: And so the Entrepreneur's Boardroom is it is a great workshop.
Speaker 1: I'm actually very proud of it. I am very proud
Speaker 1: of it. It was kind of put together and shout
Speaker 1: out to you guys for proving it very last minute
Speaker 1: because I had a whole different plan. I was like, no,
Speaker 1: this this has to go like this, and so shout
Speaker 1: out to you guys. But yeah, so if you're a go,
Speaker 1: if you're at investments, you need to be an Entrepreneur's Boardroom.
Speaker 1: It is the one workshop where you'll be able to
Speaker 1: have all the pieces connected together for you.
Speaker 3: You gave some dates.
Speaker 4: April fifteenth in our world is more than April fifteenth, Yes,
Speaker 4: the September fifteenth, right, this December thirty first. Talk about
Speaker 4: making a plan for the year, not just on a
Speaker 4: one time basis, but a quarterly situation, because I think
Speaker 4: entrepreneurs missed that part right. If you do this, think quarterly,
Speaker 4: it lessens the burning of having a one time thing.
Speaker 1: It's actually a requirement. It's not even like an option.
Speaker 1: The IRIS is like, listen, if you owe me one
Speaker 1: thousand dollars or more, you're required to pay me quarterly.
Speaker 1: They're like, we don't want you holding our money the
Speaker 1: entire year, send us our money. But to your point, right,
Speaker 1: some people don't consider their taxes on a quarterly basis,
Speaker 1: and then what happens is the end of the year comes,
Speaker 1: and you know how it is being an entrepreneur, You're like,
Speaker 1: that's the profit, Well where the money? Not an account?
Speaker 1: And so most people obviously you know they're spending money,
Speaker 1: they're operating a business, which makes sense, but you do
Speaker 1: have to consistently take a look at your taxes on
Speaker 1: a quarterly basis, and also do tax planning, right, you
Speaker 1: should be able to say, Okay, well, based on these
Speaker 1: strategies that I've implemented, I know that this is the
Speaker 1: amount of money that I need to actually send to
Speaker 1: the IRS on that quarterly basis. If for whatever reason,
Speaker 1: you happen to send them more, don't worry. You get
Speaker 1: a refund. They will send it back to you. Okay.
Speaker 1: I think most people are like, oh my god, the
Speaker 1: IRS such like they they will send it back to you. Right,
Speaker 1: you can get a refund. So I just I do
Speaker 1: think that when it comes to just throughout the year,
Speaker 1: we have to focus on, Okay, what is our business doing?
Speaker 1: And I think that also just goes to the thing
Speaker 1: of we have to focus on us. We are important too,
Speaker 1: not just our clients and the people we serve, because
Speaker 1: we have to think about how are we protecting our money?
Speaker 1: Are we in compliance? That's a big thing. A lot
Speaker 1: of times we're not in compliance. Are you in compliance?
Speaker 1: Are you filing your taxes quarterly? Are you scheduling those
Speaker 1: meetings with your CPA to say, hey, I need to
Speaker 1: sit down to evaluate where my income is because I
Speaker 1: may need to make something shape right, I may need
Speaker 1: to make some things happen. So therefore I am able
Speaker 1: to pay lesson taxes. So I do encourage every single
Speaker 1: person to focus on their taxes throughout the year.
Speaker 5: Vitally important. Before we leave, last word, talk about the
Speaker 5: vendor marketplace.
Speaker 1: Oh my baby, Yeah, indeed, my baby, Indeed vendor marketplace. Okay,
Speaker 1: so I am. I am the Queen of the marketplace.
Speaker 1: So I actually started out with a ten x ten
Speaker 1: boof and then the next year we had to take
Speaker 1: it up a notch. I was like, guys, I think
Speaker 1: we should build it, and I would never forget you
Speaker 1: called me. You were like, are you building a house?
Speaker 1: I was like, I mean some not a house, but
Speaker 1: I am building some things. You're like because there's people
Speaker 1: like on the ceiling and people building in this what
Speaker 1: complete TV's and everything, and so I really just wanted
Speaker 1: to have a space where people can experience and that
Speaker 1: was my biggest thing. I was like, I want to
Speaker 1: create an experience. And then the next year I took
Speaker 1: it up a notch. I had my game show. So ye,
Speaker 1: my game show, which I'm bringing back this year by
Speaker 1: the way, so make sure that you guys stop by
Speaker 1: the booth and play the game show. But yes, I
Speaker 1: had my game show the next year and it was
Speaker 1: like a huge hit, Like it was amazing, like everybody
Speaker 1: was interacting and it was exactly what I envision And
Speaker 1: so every year I've just been consistently trying to think about, like,
Speaker 1: how can I, you know, make this better and better?
Speaker 1: And so last year I was like, if not me,
Speaker 1: then who sponsors the marketplace? Like if not me, then who?
Speaker 1: And so so I shifted my focus last year to
Speaker 1: focus on the vendors. And my campaign last year was
Speaker 1: this business for the people, and it was really just
Speaker 1: surrounded around me saying, listen, I've done this, I know
Speaker 1: how to do this. I have not only done this,
Speaker 1: but I've been profitable at this. And I think most
Speaker 1: people feel like, Okay, if I come to invest best
Speaker 1: and because they have people, I'm automatically going to make money.
Speaker 1: It doesn't work like that. You have to really think
Speaker 1: about every single interaction. You have to think about you know,
Speaker 1: what you're selling, what your back end looks like. And
Speaker 1: so because of that, I was like, you know what,
Speaker 1: I want to really pour into the vendors and show
Speaker 1: them how they should be doing this. And so we
Speaker 1: did that last year and yeah, deonce would be proud.
Speaker 1: You inspire me nothing but greatness. But yeah, so I
Speaker 1: did that last year and really just poured into the vendors.
Speaker 1: We were going around, we were helping them, we were
Speaker 1: giving a popcorn and water and just you know, helping
Speaker 1: them if they needed to go to the bathroom. It's
Speaker 1: like little things that people don't think about, like, wow,
Speaker 1: I flew all the way down here by myself. I'm
Speaker 1: at this boof by myself. How do I leave all
Speaker 1: my merch here? So we were there, had one hundred
Speaker 1: I had about maybe it. Last year had about seventy
Speaker 1: five volunteers. We're trying to upset this year probably at
Speaker 1: one hundred hundred and fifty because we really need to
Speaker 1: deserve the people. But we were just being there and
Speaker 1: being supportive for them and helping them think about things
Speaker 1: that they didn't think through.
Speaker 4: And to add to it because I want to thank you.
Speaker 4: We've thank you before, but thank you here as well.
Speaker 4: Prior to even get into a ves Fest, there were
Speaker 4: zoom calls, yes, but how they should be showing up,
Speaker 4: how they should prepare themselves for the actual moment, which
Speaker 4: I think helped as well.
Speaker 1: Absolutely, there were so many people that came up to
Speaker 1: me like, oh my god, thank you. I didn't think
Speaker 1: about those things. I didn't consider that. And because I've
Speaker 1: implemented those things, I was able to get more leads,
Speaker 1: I was able to make more money. And so I'm
Speaker 1: bringing the same concept back this year as well, because
Speaker 1: again I want to touch the people. I want to
Speaker 1: help them. It's not about me, it's not about me.
Speaker 1: So same concept, but this year we're gonna take it
Speaker 1: up a notch. It's going to really be missbusiness for
Speaker 1: the people. Every single person that is intended investments. You
Speaker 1: can't I can't tell. I can't tell you guys, the theme,
Speaker 1: but it's changing.
Speaker 3: It was no album this year, so we got.
Speaker 1: To see it was no album. It was hard trying
Speaker 1: to find this theme. I'm like, Beyonce, where's my inspiration?
Speaker 3: I mean, you were a star in that movie. You
Speaker 3: were in it.
Speaker 1: I was.
Speaker 6: I was in her trailer. Guys, you didn't see it.
Speaker 6: It was like a three second clip.
Speaker 3: But I was in this feature in this business.
Speaker 1: Yes, but but yeah, so this year what my what
Speaker 1: my goal is, it's not only just pouring to the vendors.
Speaker 1: Continue to do that, continue to help them, just become
Speaker 1: bigger and better and just you know, helping them in
Speaker 1: that way. But also I want to be able to
Speaker 1: continue the conversation with all of the Investment Best attendees.
Speaker 1: So I want to do like a three day workshop,
Speaker 1: like a free three day workshop with them that allows
Speaker 1: them to just continue the conversation and really help them
Speaker 1: implement because you know, we have information, we go to conferences,
Speaker 1: we're inspired with pump, We're like, Wow, all of these
Speaker 1: things are magical, but then we don't have a way
Speaker 1: to actually implement it. So I said, you know what,
Speaker 1: I need to help these people implement it, and what
Speaker 1: better way to do that. Then as soon as we
Speaker 1: get back from Investments, We're going to do like a
Speaker 1: free three day workshop. I don't guys, I don't know
Speaker 1: how I'm going to do it. See this is the
Speaker 1: Beyonce part of me. You guys seen what Beyonce said.
Speaker 1: When I'm working, I don't eat right. I don't know
Speaker 1: how I'm going to get through invest Best and then
Speaker 1: come and then have a three day workshop the following week.
Speaker 1: But I'm going to do that and it's going to
Speaker 1: be free. Yeah, I don't know. And if you guys
Speaker 1: could hop on it's something.
Speaker 4: You know, last past weekend, and obviously the lead up
Speaker 4: is big for us. I suppose to you last year.
Speaker 4: I'm like, this is becoming pretty happy for you. The
Speaker 4: rule of the marketplace and you have one of the
Speaker 4: best pre investments events.
Speaker 3: Yes, I mean it's a lot, and we thank you
Speaker 3: for all that.
Speaker 1: You're welcome. Thank you guys for allowing me to just
Speaker 1: you know, just shine and do all these things. But yeah,
Speaker 1: so I'm excited about investmentest. I'm excited to just pour
Speaker 1: into everyone and and just bring that energy to the
Speaker 1: marketplace like it's needed.
Speaker 5: It's needed, it's needed. Well, how can people follow you?
Speaker 1: You can follow me on all social platforms, on miss
Speaker 1: business one on one. You can also if you need
Speaker 1: tax services. I know some people are like, oh my god,
Speaker 1: my accountant did not tell me any of this. It's okay,
Speaker 1: fire them. We're here for you. You can go alliance. Yes,
Speaker 1: you can go to bricks Alliance www. Dot bricks Alliance
Speaker 1: dot com, or you can find us on social media
Speaker 1: and bricks Alliance.
Speaker 3: Please see you