WEBVTT - Study Hall: Tax Tips with Ms Business

0:00:00.400 --> 0:00:04.280
<v Speaker 1>You just realized your business needed to hire someone yesterday.

0:00:04.800 --> 0:00:09.520
<v Speaker 1>How can you find amazing candidates fast? Easy? Just use Indeed.

0:00:09.960 --> 0:00:12.680
<v Speaker 1>Stop struggling to get your job posts seen on other

0:00:12.760 --> 0:00:16.439
<v Speaker 1>job sites. With Indeed sponsored jobs, your post jumps to

0:00:16.480 --> 0:00:19.000
<v Speaker 1>the top of the page for your relevant candidates, so

0:00:19.120 --> 0:00:22.119
<v Speaker 1>you can reach the people you want faster. According to

0:00:22.160 --> 0:00:26.120
<v Speaker 1>Indeed data, sponsored jobs posted directly on Indeed have forty

0:00:26.120 --> 0:00:30.040
<v Speaker 1>five percent more applications than non sponsored jobs. Don't wait

0:00:30.080 --> 0:00:33.519
<v Speaker 1>any longer, speed up your hiring right now with Indeed,

0:00:33.960 --> 0:00:36.200
<v Speaker 1>and listeners of this show will get a seventy five

0:00:36.280 --> 0:00:39.440
<v Speaker 1>dollars sponsored job credit to get your jobs more visibility

0:00:39.600 --> 0:00:45.320
<v Speaker 1>at indeed dot com slash pod Katz thirteen. Just go

0:00:45.360 --> 0:00:50.120
<v Speaker 1>to Indeed dot com slash pod katz thirteen right now

0:00:50.479 --> 0:00:53.040
<v Speaker 1>and support our show by saying you heard about Indeed

0:00:53.080 --> 0:00:57.400
<v Speaker 1>on this podcast. Terms and conditions apply. Hiring Indeed is

0:00:57.440 --> 0:00:58.080
<v Speaker 1>all you need.

0:01:05.800 --> 0:01:08.440
<v Speaker 2>Earners, Listen up. When people all around the world first

0:01:08.480 --> 0:01:11.360
<v Speaker 2>started going out protesting this summer, you'd hear it over

0:01:11.440 --> 0:01:15.440
<v Speaker 2>and over. This time is different, But how and who

0:01:15.440 --> 0:01:17.560
<v Speaker 2>are the people trying to make it different? And give

0:01:17.760 --> 0:01:21.759
<v Speaker 2>us new podcast resistance posts, SAYI T John Thomas Jr.

0:01:21.920 --> 0:01:24.000
<v Speaker 2>Brings us stories from the front lines of the movement

0:01:24.040 --> 0:01:27.119
<v Speaker 2>for Black lives, told by the generation fighting for the change.

0:01:27.480 --> 0:01:29.959
<v Speaker 2>It's to show about people refusing to accept things as

0:01:29.959 --> 0:01:32.160
<v Speaker 2>they are and how we can make sure this time

0:01:32.400 --> 0:01:35.839
<v Speaker 2>really is different. Resistance is out now, follow and listen

0:01:35.959 --> 0:01:41.919
<v Speaker 2>for free on Spotify.

0:01:43.240 --> 0:01:49.280
<v Speaker 3>My graduates from my school being forced back drop drop Mike.

0:01:49.600 --> 0:01:52.480
<v Speaker 4>There are advantages of being a business owner, and that's

0:01:52.520 --> 0:01:55.440
<v Speaker 4>something that we want to encourage. Entrepreneurship for a lot

0:01:55.480 --> 0:01:57.840
<v Speaker 4>of different reasons, not just to take money of your taxes,

0:01:57.880 --> 0:02:01.120
<v Speaker 4>but it's one of the perks that comes with being

0:02:01.120 --> 0:02:02.520
<v Speaker 4>a business owner because even if you look at it

0:02:02.600 --> 0:02:06.680
<v Speaker 4>from a corporate standpoint, like large corporations, the corporate tax

0:02:06.760 --> 0:02:12.400
<v Speaker 4>rate is twenty one percent, right, that's but the highest

0:02:12.440 --> 0:02:17.080
<v Speaker 4>federal tax rate for individuals is thirty seven percent. So

0:02:17.160 --> 0:02:19.520
<v Speaker 4>if you're a wealthy business like Amazon, or if you're

0:02:19.520 --> 0:02:22.440
<v Speaker 4>a wealthy person right like a basketball player or an

0:02:22.520 --> 0:02:25.440
<v Speaker 4>NBA player, NFL player, whatever, and you're at the highest

0:02:25.480 --> 0:02:28.720
<v Speaker 4>federal tax rate, you're at an advantage to be a

0:02:28.760 --> 0:02:31.680
<v Speaker 4>corporation because the most you can pay is twenty one percent.

0:02:31.680 --> 0:02:34.600
<v Speaker 4>Now you're working your way down from there, whereas the

0:02:34.639 --> 0:02:37.080
<v Speaker 4>federal tax rate. The highest you can pay is thirty

0:02:37.120 --> 0:02:39.000
<v Speaker 4>seven percent. You have to work your way down from there.

0:02:39.120 --> 0:02:42.919
<v Speaker 4>So we're gonna take down a micro level, and you know,

0:02:43.040 --> 0:02:45.600
<v Speaker 4>talk about small businesses because you know that's the majority

0:02:45.600 --> 0:02:47.920
<v Speaker 4>of businesses in America and in the world of small businesses.

0:02:47.960 --> 0:02:50.480
<v Speaker 4>Right Amazon, We talk about Amazon and Netflix, but that's

0:02:50.520 --> 0:02:54.280
<v Speaker 4>not typical. Those aren't the majority of businesses in America.

0:02:55.400 --> 0:02:58.359
<v Speaker 4>So as a small business owner, I'm going to speak

0:02:58.400 --> 0:03:03.160
<v Speaker 4>from first had experience, whereas I can say that you

0:03:03.240 --> 0:03:05.200
<v Speaker 4>have benefits of being a business owner because you can

0:03:05.480 --> 0:03:08.400
<v Speaker 4>deduct a lot of things. Right, So when we talk

0:03:08.440 --> 0:03:11.799
<v Speaker 4>about Amazon as far as their travel and things of

0:03:11.840 --> 0:03:13.280
<v Speaker 4>that nature, it's the same thing with a small business

0:03:13.280 --> 0:03:15.480
<v Speaker 4>owning on a certain level. Where you travel, you see

0:03:15.480 --> 0:03:17.360
<v Speaker 4>a client, you can deduct that, you take your client

0:03:17.360 --> 0:03:19.760
<v Speaker 4>out for a mal, you can deduct that. You lease

0:03:19.800 --> 0:03:22.360
<v Speaker 4>a car, you can deduct that the mouths as long

0:03:22.360 --> 0:03:25.240
<v Speaker 4>as it's for business, so your cell phone, you can

0:03:25.280 --> 0:03:28.120
<v Speaker 4>deduct that. You buy furniture for your office, you can

0:03:28.200 --> 0:03:30.080
<v Speaker 4>deduct that. So you have a lot of things that

0:03:30.120 --> 0:03:32.400
<v Speaker 4>you can deduct, where if you just have a regular job,

0:03:33.200 --> 0:03:36.840
<v Speaker 4>you can't deduct any of that stuff, right, So it's

0:03:36.960 --> 0:03:39.400
<v Speaker 4>hard for you to do anything with your taxes if

0:03:39.400 --> 0:03:42.640
<v Speaker 4>you just have a regular job, because there's only so

0:03:42.760 --> 0:03:44.920
<v Speaker 4>much that you can actually deduct, right, Where a business

0:03:44.920 --> 0:03:50.800
<v Speaker 4>owner you can you can get creative, be responsible, responsible,

0:03:51.160 --> 0:03:56.640
<v Speaker 4>be responsible with that. So okay, it's all right. So

0:03:57.040 --> 0:04:00.560
<v Speaker 4>when we talk about the advantages for people that may

0:04:00.640 --> 0:04:03.680
<v Speaker 4>not be familiar or people that want to be business

0:04:03.680 --> 0:04:06.080
<v Speaker 4>owners or want to be entrepreneurs, what are some basic

0:04:06.240 --> 0:04:09.480
<v Speaker 4>advantages that entrepreneurs and business owners have as far as

0:04:09.480 --> 0:04:12.040
<v Speaker 4>the tax system as opposed to regular individuals.

0:04:12.760 --> 0:04:15.240
<v Speaker 3>Well, first, I always tell people, because do you get

0:04:15.240 --> 0:04:17.520
<v Speaker 3>that question a lot, what's the advantage of me being

0:04:17.640 --> 0:04:22.240
<v Speaker 3>a business owner or even claiming self employed, right, because

0:04:22.240 --> 0:04:25.279
<v Speaker 3>then you are a business owner as well versus me

0:04:25.440 --> 0:04:28.800
<v Speaker 3>being an employee. And I always tell them employees are

0:04:29.040 --> 0:04:31.080
<v Speaker 3>taxed first and they have to pay their bills later,

0:04:31.480 --> 0:04:34.760
<v Speaker 3>where a business owner pays their bills and then they

0:04:35.279 --> 0:04:37.120
<v Speaker 3>are charge tax on what's left.

0:04:37.400 --> 0:04:37.679
<v Speaker 5>Right.

0:04:37.720 --> 0:04:41.000
<v Speaker 3>And so, like you said, we can't as a business owner.

0:04:41.120 --> 0:04:43.320
<v Speaker 3>There's a ton of things that you can write off, right,

0:04:43.320 --> 0:04:45.400
<v Speaker 3>Like you can write off your travel, you can write

0:04:45.440 --> 0:04:48.440
<v Speaker 3>off your meals, you can write off anything that relates

0:04:48.480 --> 0:04:51.960
<v Speaker 3>to your business, your supplies, your employees. Right, So everything

0:04:52.440 --> 0:04:54.400
<v Speaker 3>that relates to your business you're able.

0:04:54.200 --> 0:04:55.960
<v Speaker 5>To write off. You know.

0:04:56.080 --> 0:04:57.600
<v Speaker 3>I know we spoke about it and covered it a

0:04:57.640 --> 0:05:01.440
<v Speaker 3>little bit when we were talking about Amazon, but even Capex, right,

0:05:01.480 --> 0:05:04.520
<v Speaker 3>if you have any type of machinery or you know,

0:05:04.839 --> 0:05:09.600
<v Speaker 3>warehouse or even for my real estate investors or you know,

0:05:09.680 --> 0:05:11.280
<v Speaker 3>just landlords, even if you have one and you don't

0:05:11.320 --> 0:05:13.680
<v Speaker 3>have like multiple properties. So if you're doing things to

0:05:13.720 --> 0:05:16.320
<v Speaker 3>your property like capital improvements, you're able to write that

0:05:16.400 --> 0:05:20.520
<v Speaker 3>off one hundred percent, right, versus being a homeowner, where

0:05:20.520 --> 0:05:23.480
<v Speaker 3>you're not able to write that off at all. Right,

0:05:23.560 --> 0:05:26.200
<v Speaker 3>So those things are very important when you are a

0:05:26.200 --> 0:05:27.040
<v Speaker 3>business owner.

0:05:28.120 --> 0:05:31.560
<v Speaker 4>Yeah, well, yeah, exactly, And that's something that people have

0:05:31.600 --> 0:05:33.560
<v Speaker 4>to fully understand. I like what you said as far

0:05:33.600 --> 0:05:35.640
<v Speaker 4>as taxes, I don't know I forgot exactly how you

0:05:35.640 --> 0:05:42.719
<v Speaker 4>framed it. But regular people, regular people, people, people, people

0:05:42.720 --> 0:05:46.480
<v Speaker 4>were people were regular jobs pay taxes first. Business owners

0:05:46.560 --> 0:05:48.760
<v Speaker 4>pay taxes last. Right, So you can make one hundred

0:05:48.760 --> 0:05:52.080
<v Speaker 4>thousand dollars, but then by the time you have all

0:05:52.080 --> 0:05:55.320
<v Speaker 4>your deductions, you might only pay taxes on twenty thousand. Yep.

0:05:55.440 --> 0:05:59.080
<v Speaker 4>Now it's important to be responsible with that because the

0:05:59.560 --> 0:06:02.320
<v Speaker 4>good thing about having a regular job when it comes

0:06:02.320 --> 0:06:04.080
<v Speaker 4>to taxes that you don't have to worry about paying

0:06:04.080 --> 0:06:05.920
<v Speaker 4>the taxes. It's done for you, right, it's taken out

0:06:05.920 --> 0:06:08.280
<v Speaker 4>of your paycheck. So most of the time you might

0:06:08.320 --> 0:06:10.120
<v Speaker 4>even get money back at the end of the year

0:06:10.120 --> 0:06:12.400
<v Speaker 4>because they've they've taken too much money out right, whereas

0:06:12.400 --> 0:06:14.360
<v Speaker 4>a business owner, they're not taking any money out of

0:06:14.400 --> 0:06:17.680
<v Speaker 4>your paycheck. So you either pay quarterly or you pay

0:06:17.680 --> 0:06:18.840
<v Speaker 4>at the end of the year. So what happens a

0:06:18.880 --> 0:06:22.840
<v Speaker 4>lot of times is that you don't save to pay

0:06:22.880 --> 0:06:24.840
<v Speaker 4>your taxes. Right. So let's say you make a hundred

0:06:24.880 --> 0:06:27.839
<v Speaker 4>thousand dollars, right, but you're living like you make one

0:06:27.920 --> 0:06:30.440
<v Speaker 4>hundred thousand, So like everybody, you're spending one hundred thousand.

0:06:30.480 --> 0:06:33.920
<v Speaker 4>You're living up to the limit. So now when it's

0:06:34.000 --> 0:06:37.760
<v Speaker 4>tax time, you have a tax liability for twenty five thousand,

0:06:37.839 --> 0:06:41.000
<v Speaker 4>thirty thousand, but you don't have twenty five thousand saved.

0:06:41.520 --> 0:06:44.719
<v Speaker 4>So now you're behind on your taxes, right, and before

0:06:44.760 --> 0:06:47.800
<v Speaker 4>you know it, the next tax year comes around. And

0:06:48.080 --> 0:06:50.040
<v Speaker 4>this is how a lot of business owners fall into

0:06:50.120 --> 0:06:55.080
<v Speaker 4>tax trouble because it's up to you to actually pay it.

0:06:55.080 --> 0:06:58.160
<v Speaker 4>It sounds easy, but it's not easy at all.

0:06:58.440 --> 0:06:59.520
<v Speaker 5>It's a lot of discipline.

0:06:59.520 --> 0:07:02.480
<v Speaker 3>I try to and a lot of systems for my clients,

0:07:02.560 --> 0:07:05.640
<v Speaker 3>one being quarterly taxes, getting me in there doing your

0:07:05.640 --> 0:07:08.240
<v Speaker 3>bookkeeping quarterly, whether it's me or you just you know,

0:07:08.400 --> 0:07:12.400
<v Speaker 3>you just kind of knowing what your income and expenses

0:07:12.440 --> 0:07:15.600
<v Speaker 3>are for that quarter. But that's important because at the

0:07:15.680 --> 0:07:19.239
<v Speaker 3>end of the year, paying twenty five hundred quarterly versus

0:07:19.280 --> 0:07:21.560
<v Speaker 3>paying ten thousand at the end of the year seems

0:07:21.600 --> 0:07:23.800
<v Speaker 3>like a you know, a world of difference, you know,

0:07:24.120 --> 0:07:29.720
<v Speaker 3>so I do. That is important and I'm glad that

0:07:29.760 --> 0:07:33.000
<v Speaker 3>you brought that up because it sounds good, like, oh,

0:07:33.040 --> 0:07:35.720
<v Speaker 3>I get to pay my taxes later. But imagine looking

0:07:35.760 --> 0:07:37.520
<v Speaker 3>at your W two and you're like, oh, I paid

0:07:37.520 --> 0:07:38.800
<v Speaker 3>out twelve thousand this year.

0:07:39.040 --> 0:07:40.960
<v Speaker 5>Imagine that twelve thousand.

0:07:40.960 --> 0:07:43.200
<v Speaker 3>Once at once at the end of the year. You're

0:07:43.240 --> 0:07:44.280
<v Speaker 3>not gonna want to pay it.

0:07:44.400 --> 0:07:47.000
<v Speaker 6>Oh you don't have it.

0:07:47.640 --> 0:07:48.840
<v Speaker 5>Oh you don't have it.

0:07:49.000 --> 0:07:51.080
<v Speaker 4>You don't have it too pay Okay, So before.

0:07:50.800 --> 0:07:52.640
<v Speaker 2>We go any further, because you said a few things

0:07:52.960 --> 0:07:57.040
<v Speaker 2>real estate, and you said regular people, and I guess

0:07:56.680 --> 0:07:58.200
<v Speaker 2>you go with your everybody.

0:07:58.200 --> 0:08:01.000
<v Speaker 4>So everybody's not a business own, right, so most people

0:08:01.040 --> 0:08:04.880
<v Speaker 4>aren't business owners. Right, So we talked about the advantages

0:08:04.920 --> 0:08:08.960
<v Speaker 4>of business. Well, there's also things that regular people with

0:08:09.160 --> 0:08:13.320
<v Speaker 4>regular jobs can take advantage of as well. Right, So, okay,

0:08:13.360 --> 0:08:15.280
<v Speaker 4>I'm a business owner. Enjoy you're a school teacher.

0:08:15.320 --> 0:08:16.240
<v Speaker 2>I'm an educator.

0:08:16.720 --> 0:08:21.560
<v Speaker 4>Okay, Okay, So I spoke. I spoke from the business

0:08:21.600 --> 0:08:24.520
<v Speaker 4>season standpoint. Yeah, so I want you to talk on

0:08:24.600 --> 0:08:26.480
<v Speaker 4>the other side of the flip side of the right.

0:08:26.520 --> 0:08:30.440
<v Speaker 2>So I'm an educator, and taxes are taken out, and

0:08:30.560 --> 0:08:32.679
<v Speaker 2>like I said, we have a set salary and that

0:08:32.760 --> 0:08:35.560
<v Speaker 2>works in our benefit, especially when we want to go

0:08:35.640 --> 0:08:37.520
<v Speaker 2>to do things like purchase a home. Right when we

0:08:37.559 --> 0:08:40.160
<v Speaker 2>look at our income, our income is steady because it's

0:08:40.200 --> 0:08:42.839
<v Speaker 2>the same thing. Whereas you, for example, you might have

0:08:42.960 --> 0:08:45.120
<v Speaker 2>made a one hundred thousand, but if your deductions was

0:08:45.200 --> 0:08:47.120
<v Speaker 2>seventy five thousand, when the bank looks at it, they

0:08:47.120 --> 0:08:49.839
<v Speaker 2>said that your income's only twenty five thousand, you might

0:08:49.840 --> 0:08:50.679
<v Speaker 2>not be able to be.

0:08:50.640 --> 0:08:51.480
<v Speaker 4>Approved for a loan.

0:08:52.040 --> 0:08:55.360
<v Speaker 2>But one of the things that struck me this year,

0:08:55.360 --> 0:08:58.880
<v Speaker 2>and this actually happened, I was shopping at Best Buy

0:08:59.440 --> 0:09:02.480
<v Speaker 2>and one of the employees there ran up on me.

0:09:02.520 --> 0:09:05.439
<v Speaker 2>He knows me. I been erners, what's up. You ever

0:09:05.520 --> 0:09:08.679
<v Speaker 2>walk into a small business and everything just works like

0:09:08.720 --> 0:09:12.160
<v Speaker 2>The checkout is fast, the receipts are digital, tipping is

0:09:12.200 --> 0:09:14.800
<v Speaker 2>a breeze, and you're out the door before the line

0:09:14.800 --> 0:09:19.440
<v Speaker 2>even builds. Odds are they're using Square. We love supporting

0:09:19.480 --> 0:09:22.160
<v Speaker 2>businesses that run on Square because it just feels seamless.

0:09:22.320 --> 0:09:24.840
<v Speaker 2>Whether it's a local coffee shop, a vendor at a

0:09:24.880 --> 0:09:27.760
<v Speaker 2>pop up market, or even one of our merch partners,

0:09:28.000 --> 0:09:31.800
<v Speaker 2>Square makes it easy for them to take payments, manage inventory,

0:09:31.880 --> 0:09:35.760
<v Speaker 2>and run their business with confidence, all from one simple system.

0:09:36.240 --> 0:09:38.840
<v Speaker 2>If you're a business owner or even just thinking about

0:09:38.920 --> 0:09:42.000
<v Speaker 2>launching something soon, Square is hands down one of the

0:09:42.040 --> 0:09:45.480
<v Speaker 2>best tools out there to help you start, run, and grow.

0:09:45.760 --> 0:09:48.760
<v Speaker 2>It's not just about payments, it's about giving you time

0:09:48.880 --> 0:09:51.800
<v Speaker 2>back so you can focus on what matters most Ready.

0:09:51.840 --> 0:09:55.200
<v Speaker 2>To see how Square can transform your business, visit Square

0:09:55.280 --> 0:09:59.920
<v Speaker 2>dot com backslash go backslash eyl to learn more. That's

0:10:00.080 --> 0:10:05.440
<v Speaker 2>Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.

0:10:05.559 --> 0:10:07.960
<v Speaker 2>Let's Square handle the back end so you can keep

0:10:07.960 --> 0:10:14.080
<v Speaker 2>pushing your vision forward. This episode is brought to you

0:10:14.120 --> 0:10:16.360
<v Speaker 2>by P and C Bank, a lot of people think

0:10:16.440 --> 0:10:20.320
<v Speaker 2>podcasts about work are boring, and sure, they definitely can be,

0:10:20.800 --> 0:10:24.080
<v Speaker 2>But understanding of professionals routine shows us how they achieve

0:10:24.120 --> 0:10:28.360
<v Speaker 2>their success little by little, day after day. It's like

0:10:28.440 --> 0:10:31.199
<v Speaker 2>banking with P and C Bank. It might seem boring

0:10:31.240 --> 0:10:34.080
<v Speaker 2>to save, plan and make calculated decisions with your bank,

0:10:34.520 --> 0:10:37.000
<v Speaker 2>but keeping your money boring is what helps you live

0:10:37.120 --> 0:10:41.119
<v Speaker 2>or more happily fulfilled life. P and C Bank Brilliantly

0:10:41.200 --> 0:10:45.760
<v Speaker 2>Boring since eighteen sixty five. Brilliantly Boring since eighteen sixty

0:10:45.800 --> 0:10:49.080
<v Speaker 2>five is a service mark of the PNC Financial Service Group, Inc.

0:10:49.520 --> 0:10:54.960
<v Speaker 2>P and C Bank National Association Member FDIC. Yeah a

0:10:54.960 --> 0:10:56.679
<v Speaker 2>few times and he goes, yeah, I can help you.

0:10:56.760 --> 0:10:58.480
<v Speaker 2>I can help you. Can I ask your personal question?

0:10:58.880 --> 0:11:02.360
<v Speaker 2>And he says, did you get your income tax back?

0:11:02.720 --> 0:11:04.840
<v Speaker 2>And I'm like what He's like, Yo, I didn't get

0:11:04.880 --> 0:11:06.800
<v Speaker 2>my refund back? The mess with my money and they

0:11:06.880 --> 0:11:10.959
<v Speaker 2>tell me I'm getting lest this year. So has there

0:11:11.000 --> 0:11:14.120
<v Speaker 2>something has changed in the federal income tax for us

0:11:14.160 --> 0:11:14.880
<v Speaker 2>regular people.

0:11:15.760 --> 0:11:19.440
<v Speaker 5>I'm not going to call you guys, I'm going to

0:11:19.480 --> 0:11:20.679
<v Speaker 5>call you guys employees.

0:11:21.920 --> 0:11:24.400
<v Speaker 3>So yes, a lot has changed, and I think that

0:11:24.400 --> 0:11:25.280
<v Speaker 3>that's important.

0:11:25.679 --> 0:11:25.920
<v Speaker 6>Right.

0:11:27.000 --> 0:11:30.160
<v Speaker 3>The tax code has shifted to be in favor of

0:11:30.200 --> 0:11:34.120
<v Speaker 3>the real estate investor and the business owner, right, all

0:11:34.280 --> 0:11:38.120
<v Speaker 3>of the perks. And I'm sure I don't know if

0:11:38.120 --> 0:11:40.000
<v Speaker 3>the guy who you were talking to, like if he

0:11:40.040 --> 0:11:42.840
<v Speaker 3>had a house or what his specific situation was, But

0:11:43.000 --> 0:11:45.520
<v Speaker 3>to just speak a little bit about some changes that

0:11:45.559 --> 0:11:48.800
<v Speaker 3>I've seen a lot with my clients, one being people

0:11:48.840 --> 0:11:52.000
<v Speaker 3>who have homes have been hit hard. Right, So I'm

0:11:52.000 --> 0:11:54.880
<v Speaker 3>not talking about the landlords or the real estate investors.

0:11:54.920 --> 0:11:58.079
<v Speaker 3>I'm not talking about those people. I'm talking about homeowners,

0:11:58.120 --> 0:12:02.520
<v Speaker 3>single family homeowners, and they've been hit the hardest because

0:12:02.960 --> 0:12:06.800
<v Speaker 3>now taxes are capped at ten ten thousand.

0:12:06.840 --> 0:12:10.200
<v Speaker 5>Right, So where last year you were able to, you know.

0:12:10.240 --> 0:12:13.120
<v Speaker 3>Take in all of your sales tax, your sales I

0:12:13.160 --> 0:12:17.240
<v Speaker 3>mean your income tax and your property tax. Now it's

0:12:17.280 --> 0:12:20.640
<v Speaker 3>not even putting a dent inside of your you know,

0:12:20.720 --> 0:12:25.239
<v Speaker 3>inside of your itemized deductions because it's being capped.

0:12:24.960 --> 0:12:25.600
<v Speaker 5>At ten thousand.

0:12:25.679 --> 0:12:28.640
<v Speaker 2>Yeah, I was, Yeah, And so what.

0:12:28.679 --> 0:12:31.320
<v Speaker 3>They also did was they raised standard deduction and got

0:12:31.400 --> 0:12:34.280
<v Speaker 3>rid of personal exemption. So to just elaborate a little

0:12:34.280 --> 0:12:39.800
<v Speaker 3>bit about that, and prior year in twenty seventeen, we

0:12:39.880 --> 0:12:43.480
<v Speaker 3>would all receive standard deductions based off of your file

0:12:43.520 --> 0:12:46.680
<v Speaker 3>and status if you were single head of household, right,

0:12:46.720 --> 0:12:50.760
<v Speaker 3>and then you would also, in addition, get a personal exemption. Now,

0:12:50.920 --> 0:12:55.960
<v Speaker 3>personal exemptions have been taken away. Standard deductions has been increased, right,

0:12:56.000 --> 0:12:58.240
<v Speaker 3>So what that means is, let's just say, let me

0:12:58.240 --> 0:13:01.959
<v Speaker 3>give some numbers. If you are a married filing joint, right,

0:13:02.040 --> 0:13:04.920
<v Speaker 3>your standard deduction has now been increased to twenty four

0:13:04.960 --> 0:13:06.600
<v Speaker 3>thousand dollars.

0:13:06.720 --> 0:13:06.920
<v Speaker 6>Right.

0:13:07.640 --> 0:13:11.319
<v Speaker 3>However, in order for you to itemize, you have to

0:13:11.400 --> 0:13:13.720
<v Speaker 3>get above that standard deduction.

0:13:14.480 --> 0:13:16.199
<v Speaker 5>So now if you have a home.

0:13:17.880 --> 0:13:20.320
<v Speaker 3>And they'll say you have your property taxes, right, and

0:13:20.360 --> 0:13:24.920
<v Speaker 3>then you and your wife will have your your income taxes,

0:13:24.960 --> 0:13:28.760
<v Speaker 3>your state income taxes, that's not probably going to exceed

0:13:29.000 --> 0:13:33.080
<v Speaker 3>over twenty four thousand dollars once you start adding everything up.

0:13:33.120 --> 0:13:34.079
<v Speaker 5>So now it's just a.

0:13:34.040 --> 0:13:37.840
<v Speaker 3>Situation where everyone, not everyone, but for it's a lot

0:13:37.920 --> 0:13:42.360
<v Speaker 3>harder for people to get over that standard deduction hurdle now.

0:13:42.440 --> 0:13:46.360
<v Speaker 3>And so that's why people are getting hit hard, especially homeowners,

0:13:46.400 --> 0:13:48.400
<v Speaker 3>because last year you guys were.

0:13:48.280 --> 0:13:55.080
<v Speaker 6>Eating Any tips that people that aren't business owners, that

0:13:55.600 --> 0:13:58.920
<v Speaker 6>employees can do to reduce their tax liability, to save

0:13:59.000 --> 0:14:02.400
<v Speaker 6>money on taxes, yeah, anything they can.

0:14:02.280 --> 0:14:05.160
<v Speaker 3>Do if you are a homeowner and you've been hit,

0:14:05.200 --> 0:14:08.320
<v Speaker 3>what I would suggest is putting your property inside of

0:14:08.360 --> 0:14:11.719
<v Speaker 3>an LLC because that way, with your properties in an LLC,

0:14:11.880 --> 0:14:15.000
<v Speaker 3>it's now considered a business. So now that's considered a business.

0:14:15.000 --> 0:14:17.559
<v Speaker 3>Now you're able to write off a one hundred percent

0:14:17.559 --> 0:14:20.040
<v Speaker 3>of your CAPEX and well your capital improvement.

0:14:20.160 --> 0:14:22.280
<v Speaker 5>So if you need a new AC.

0:14:23.200 --> 0:14:26.360
<v Speaker 3>You know, as as a homeowner, you can't write that off,

0:14:26.400 --> 0:14:29.320
<v Speaker 3>but as a business owner you're able to, right, So

0:14:29.440 --> 0:14:33.400
<v Speaker 3>now and then there's also a twenty percent deduction. Right,

0:14:33.480 --> 0:14:36.880
<v Speaker 3>So let's just say, if you know your home I

0:14:36.880 --> 0:14:39.040
<v Speaker 3>don't know, let's just say in your LLC you're bringing

0:14:39.080 --> 0:14:42.320
<v Speaker 3>in ten thousand dollars on your personal return, You're now

0:14:43.200 --> 0:14:45.800
<v Speaker 3>given a twenty percent deduction. So now that would be

0:14:46.120 --> 0:14:50.280
<v Speaker 3>a two thousand dollars deduction edition that you would be

0:14:50.280 --> 0:14:53.400
<v Speaker 3>receiving on your on your taxes. So that would be

0:14:53.520 --> 0:14:59.600
<v Speaker 3>my suggestion for for you know, people that, yeah, like employees.

0:15:00.080 --> 0:15:00.800
<v Speaker 5>They own a home.

0:15:01.560 --> 0:15:03.320
<v Speaker 4>Anything, somebody can do what they don't own a home.

0:15:04.800 --> 0:15:06.640
<v Speaker 4>Kind of difficult, Huh, it's difficult.

0:15:06.840 --> 0:15:08.400
<v Speaker 5>Yeah, it's difficult.

0:15:08.520 --> 0:15:10.240
<v Speaker 4>It's just the way the tax law is set up.

0:15:10.280 --> 0:15:12.800
<v Speaker 4>You know, it's set up for business owners in companies.

0:15:12.840 --> 0:15:17.560
<v Speaker 4>Really yeah, And your think about it is that it's

0:15:18.120 --> 0:15:20.200
<v Speaker 4>I don't even want to say it's unfortunate, because it's

0:15:20.200 --> 0:15:21.720
<v Speaker 4>just it is what it is, right, it is.

0:15:21.760 --> 0:15:24.840
<v Speaker 3>And one thing that I stress now more than ever

0:15:25.000 --> 0:15:27.440
<v Speaker 3>is that we have to pay attention to the people

0:15:27.480 --> 0:15:30.120
<v Speaker 3>that are in office and play up to that.

0:15:30.520 --> 0:15:30.720
<v Speaker 5>Right.

0:15:31.160 --> 0:15:34.280
<v Speaker 3>I find that if in school they taught us to

0:15:34.720 --> 0:15:38.840
<v Speaker 3>focus more so on the taxes, then our mindset would

0:15:38.880 --> 0:15:42.360
<v Speaker 3>be so different, right, because let's just use when Obama

0:15:42.560 --> 0:15:43.680
<v Speaker 3>was in office.

0:15:43.880 --> 0:15:44.880
<v Speaker 5>I believe when he.

0:15:44.960 --> 0:15:49.280
<v Speaker 3>Was in office, there was a rebate for homeowners like

0:15:49.840 --> 0:15:52.480
<v Speaker 3>eight thousand dollars or something like that. Right, So many

0:15:52.560 --> 0:15:55.400
<v Speaker 3>people took that money and then reinvested it and purchased homes.

0:15:55.880 --> 0:15:56.120
<v Speaker 5>Right.

0:15:56.160 --> 0:15:58.840
<v Speaker 3>And so now with Trump, if you're going to purchase

0:15:58.840 --> 0:16:01.840
<v Speaker 3>a home, now, maybe the time to you know, get

0:16:01.840 --> 0:16:04.880
<v Speaker 3>that rental property that you want. Now, maybe the time

0:16:04.960 --> 0:16:07.520
<v Speaker 3>to start that business that you want, because now you're

0:16:07.560 --> 0:16:10.120
<v Speaker 3>able to get more, you know, you're able to write

0:16:10.160 --> 0:16:12.680
<v Speaker 3>off more and get more deduction. So we just have

0:16:12.760 --> 0:16:15.120
<v Speaker 3>to pay attention to the tax code a little bit more.

0:16:15.280 --> 0:16:16.200
<v Speaker 2>Education is the key.

0:16:16.280 --> 0:16:19.520
<v Speaker 4>And also it's a couple other things that people should

0:16:19.520 --> 0:16:21.760
<v Speaker 4>be aware of too. It's a five to twenty nine plan.

0:16:22.160 --> 0:16:25.360
<v Speaker 4>That's it used to be a college savings plan only,

0:16:25.440 --> 0:16:27.400
<v Speaker 4>but now with the new tax law, you can use

0:16:27.440 --> 0:16:30.640
<v Speaker 4>the money for anything as far as education is concerned.

0:16:31.000 --> 0:16:33.160
<v Speaker 4>So you can use it for prep school, you can

0:16:33.240 --> 0:16:34.880
<v Speaker 4>use it for private school, you can use it for

0:16:34.960 --> 0:16:38.640
<v Speaker 4>elementary school. So that helps parents out as far as

0:16:38.640 --> 0:16:41.240
<v Speaker 4>paying for the cost of education where you just don't

0:16:41.320 --> 0:16:43.520
<v Speaker 4>have to use it for college. Now you can use

0:16:43.560 --> 0:16:46.080
<v Speaker 4>it for anything related to education at any point in

0:16:46.120 --> 0:16:49.240
<v Speaker 4>time during child life. That's important. And then also the

0:16:49.240 --> 0:16:51.000
<v Speaker 4>limit has been raised as far as how much money

0:16:51.000 --> 0:16:53.720
<v Speaker 4>you can put into an IRA and four one K

0:16:53.840 --> 0:16:56.720
<v Speaker 4>as well. So the limit for IRA this she is

0:16:56.800 --> 0:17:00.520
<v Speaker 4>six thousand dollars four one K is nineteen thousand. So

0:17:00.520 --> 0:17:02.280
<v Speaker 4>those are vehicles that you can put money in for

0:17:02.360 --> 0:17:04.879
<v Speaker 4>your retirement and that that helps you save money on

0:17:04.920 --> 0:17:06.560
<v Speaker 4>your taxes as well. That's probably one of the biggest

0:17:06.600 --> 0:17:10.639
<v Speaker 4>tax deductions that people have if they just are employees,

0:17:10.720 --> 0:17:13.400
<v Speaker 4>because that allows you to save up to almost twenty

0:17:13.440 --> 0:17:16.240
<v Speaker 4>thousand dollars in a four one K nineteen thousand if

0:17:16.920 --> 0:17:18.880
<v Speaker 4>and if you're over fifty five, you can actually save

0:17:18.920 --> 0:17:23.199
<v Speaker 4>even more than that. But that's a pretty sizable amount

0:17:23.240 --> 0:17:25.080
<v Speaker 4>and it goes back to you know, it's in your

0:17:25.080 --> 0:17:27.120
<v Speaker 4>account and it grows for your retirement, so.

0:17:27.119 --> 0:17:28.960
<v Speaker 2>Then also reduce your income for that year.

0:17:29.119 --> 0:17:30.959
<v Speaker 4>That's how Yeah, that's exactly what it does. So that's

0:17:30.960 --> 0:17:33.399
<v Speaker 4>why you save money your taxes because it reduces your income.

0:17:33.960 --> 0:17:36.720
<v Speaker 4>So something to be aware of. But the key is

0:17:36.760 --> 0:17:40.840
<v Speaker 4>to educate yourself and to learn the political gain and

0:17:40.920 --> 0:17:42.800
<v Speaker 4>you know these are these are the rules that we're

0:17:42.840 --> 0:17:45.400
<v Speaker 4>in so as far as Amazon to say, like whether

0:17:45.600 --> 0:17:49.320
<v Speaker 4>my personal opinion, if it's fair, if it's not, I mean,

0:17:49.320 --> 0:17:51.560
<v Speaker 4>what are they supposed to do? Not do it? Right?

0:17:51.640 --> 0:17:53.560
<v Speaker 4>So it's the same thing with you as an individual.

0:17:53.960 --> 0:17:57.480
<v Speaker 4>You should, you know, learn the tax code, the tax

0:17:57.600 --> 0:17:59.840
<v Speaker 4>law and take advantage of it. And the thing about

0:17:59.840 --> 0:18:01.399
<v Speaker 4>being a business owner tool is that you don't have

0:18:01.480 --> 0:18:03.800
<v Speaker 4>to be full time. You can have a business and

0:18:03.840 --> 0:18:06.439
<v Speaker 4>still work a job as well, right, and then you

0:18:06.440 --> 0:18:10.359
<v Speaker 4>can still take advantage of your business, right because you

0:18:10.400 --> 0:18:12.240
<v Speaker 4>have just like any other business that has, you have

0:18:12.280 --> 0:18:14.320
<v Speaker 4>expenses and you have things that nature as well. So

0:18:14.640 --> 0:18:17.800
<v Speaker 4>you don't want to start a business just for tax benefits. Obviously,

0:18:17.840 --> 0:18:19.000
<v Speaker 4>you want to start a business because you want to

0:18:19.000 --> 0:18:22.760
<v Speaker 4>be successful in business. But that's another benefit and something

0:18:22.760 --> 0:18:24.560
<v Speaker 4>to strive forward where it's like you don't have to

0:18:24.560 --> 0:18:26.560
<v Speaker 4>do one or the other, you can do both. And

0:18:26.640 --> 0:18:29.680
<v Speaker 4>by having a business as your side hustle or a

0:18:29.760 --> 0:18:32.879
<v Speaker 4>part time job or whatever, now you're opening up the

0:18:32.920 --> 0:18:36.160
<v Speaker 4>window where you can deduct more things, and you know

0:18:36.600 --> 0:18:39.120
<v Speaker 4>it gives you a lot more flexibility.

0:18:40.440 --> 0:18:43.160
<v Speaker 3>My graduates from my school being.

0:18:43.040 --> 0:18:48.760
<v Speaker 7>Forced bad drop bag drop mic drop bad drop b drop.

0:18:59.240 --> 0:19:02.679
<v Speaker 7>With Robinhood, not only can you trade individual stocks and ETFs,

0:19:02.840 --> 0:19:06.680
<v Speaker 7>you can also seamlessly buy and sell crypto at low costs,

0:19:06.920 --> 0:19:10.639
<v Speaker 7>trade all in one place. Get started now on robin Hood.

0:19:10.640 --> 0:19:13.159
<v Speaker 7>Trading crypto involves significant risk. Crypto trading is offered through

0:19:13.160 --> 0:19:15.120
<v Speaker 7>an account with the Robert Hood Crypto LC. Robin Hood

0:19:15.119 --> 0:19:17.480
<v Speaker 7>Crypto is licensed to engage in virtual currency business activity

0:19:17.480 --> 0:19:19.440
<v Speaker 7>by the New York State Department of Financial Services. Crypto

0:19:19.440 --> 0:19:22.159
<v Speaker 7>held thro robin Hood Cryptos not FDIC insured or SIPC protected.

0:19:22.280 --> 0:19:25.119
<v Speaker 7>Investing involves risk, including laws of principle securities. Trading is

0:19:25.119 --> 0:19:27.840
<v Speaker 7>offered through an account with robin Hood Financial LLC member SIPC,

0:19:28.080 --> 0:19:29.160
<v Speaker 7>a registered broker dealer