WEBVTT - Professional Development: TAX STRATEGIES FOR BUSINESS OWNERS

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<v Speaker 1>An illegal alien from Guatemala charged with raping a child

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<v Speaker 1>in Massachusetts. An MS thirteen gang member from Al Salvador

0:00:07.720 --> 0:00:11.840
<v Speaker 1>accused of murdering a Texas man of Venezuelan charged with

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<v Speaker 1>filming and selling child pornography in Michigan. These are just

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<v Speaker 1>some of the heinous migrant criminals caught because of President

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<v Speaker 1>Donald J. Trump's leadership. I'm Christy nom the United States

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<v Speaker 1>Secretary of Homeland Security. Under President Trump, attempted illegal border

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<v Speaker 1>crossings are at the lowest levels ever recorded, and over

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<v Speaker 1>one hundred thousand illegal aliens have been arrested. If you

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<v Speaker 1>are here illegally, your next you will be fined nearly

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<v Speaker 1>one thousand dollars a day, imprisoned, and deported. You will

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<v Speaker 1>never return. But if you register using our CBP home

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<v Speaker 1>app and leave now, you could be allowed to return legally.

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<v Speaker 1>Do what's right. Leave now. Under President Trump, America's laws,

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<v Speaker 1>border and families will be protected.

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<v Speaker 2>Sponsored by the United States Department of Homeland Security. Okay,

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<v Speaker 2>So I put this in all my tax slides all

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<v Speaker 2>the time because I think I want everyone to have

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<v Speaker 2>this perspective and understand this, and so Warren Buffett. Warren

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<v Speaker 2>Buffett stated I paid a lower tax rate than my

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<v Speaker 2>secretary thanks to the many loopholes and deductions that benefit

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<v Speaker 2>the wealthy. And so I love to include this, and

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<v Speaker 2>I love to have start off with this conversation because

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<v Speaker 2>the reality is that Warren Buffett is not boasting. He's

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<v Speaker 2>not saying it's right. He actually thinks that it's wrong.

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<v Speaker 2>But the reality is the reality. So this goes back

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<v Speaker 2>to my conversation of earlier saying Okay, well, if you

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<v Speaker 2>don't currently have a business or you're not currently investing,

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<v Speaker 2>you need to invest. You have Warren Buffett, one of

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<v Speaker 2>the richest men in the world, saying that his tax rate, right,

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<v Speaker 2>so not saying the amount of taxes that he pays.

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<v Speaker 2>His tax rate is lower than his secretary. So that

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<v Speaker 2>tax rate just means that his rate is probably at

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<v Speaker 2>twenty five percent and his secretary is probably at thirty

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<v Speaker 2>five percent, right, And it's all about It's all about

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<v Speaker 2>because of it's sorry, it's all because of what he's

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<v Speaker 2>investing in and where his income is flowing in from.

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<v Speaker 2>And so the government is always going to incentivize things

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<v Speaker 2>that they want to pretty much happen. Right, So if

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<v Speaker 2>they want more people to become landlords. They're going to

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<v Speaker 2>incentivize real estate. That's why there's so many tax deductions

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<v Speaker 2>and so many different perks when it comes to real estate.

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<v Speaker 2>When it comes to taxes, it's because the government needs help.

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<v Speaker 2>They want landlords. They want you to be a landlord

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<v Speaker 2>because they cannot house everyone. When it comes to you know,

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<v Speaker 2>food and energy and all those things, there's a bunch

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<v Speaker 2>of different tax deductions surrounding them. And it's because that's

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<v Speaker 2>what the IRS wants. The IRIS wants you, I'm sorry,

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<v Speaker 2>that's what the government wants. The government wants you to

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<v Speaker 2>invest your money in the stock market long term, not

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<v Speaker 2>short term. Right, So what do they do. They make

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<v Speaker 2>the tax rates for long term investment lower than the

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<v Speaker 2>tax rates for short term investing. Right, And so you

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<v Speaker 2>all have to just it's really about mindset when I educate.

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<v Speaker 2>When i'm educating you all, if you know, you want

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<v Speaker 2>to go off and do your own taxes, that's fine,

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<v Speaker 2>But when I'm educating, it's really about mindset. So that

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<v Speaker 2>way you all can understand what's possible and you can

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<v Speaker 2>understand pretty much the rules of the game. Okay, so

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<v Speaker 2>I'll read this. You guys can feel free to take

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<v Speaker 2>a screenshot of this. This is pretty much what I

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<v Speaker 2>spoke to you all about already in terms of what

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<v Speaker 2>tax planning is. But tax planning is the analysis and

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<v Speaker 2>arrangement of a person's and business financial situation in order

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<v Speaker 2>to reduce their tax liability. The tax plan ensures that

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<v Speaker 2>all elements of the financial plan work together to pay

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<v Speaker 2>the lowest tax in a legal and efficient manner. Through

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<v Speaker 2>tax planning, individuals ensure they can attain maximum tax efficiency.

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<v Speaker 2>Reducing tax liability increases the ability to take the money

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<v Speaker 2>you would have paid to the irs and allow you

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<v Speaker 2>to contribute it, contribute it to your dreams. Okay, So

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<v Speaker 2>that in a nutshell is what tax plan it is.

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<v Speaker 2>And a one liner, keep more of your money so

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<v Speaker 2>you could do whatever it is that you want with it, right,

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<v Speaker 2>and to make it simple. Now, I'm going to start

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<v Speaker 2>talking about tax planning, and we're going to start off

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<v Speaker 2>with bookkeeping. I used to be so lenient when it

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<v Speaker 2>comes to bookkeeping, and I used to try to find

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<v Speaker 2>a way around it to tell people, you know, maybe

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<v Speaker 2>you don't need bookkeeping, maybe you could try to do

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<v Speaker 2>it yourself. No, you guys need some sort of bookkeeping. Now,

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<v Speaker 2>whether you decide to do the bookkeeping yourself. Everyone needs

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<v Speaker 2>some sort of bookkeeping software. Some people choose to keep

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<v Speaker 2>track of their books, and you know, let's say they

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<v Speaker 2>sorry they made you to keep track of their books.

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<v Speaker 2>Let's say it on Excel. Right. The issue with trying

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<v Speaker 2>to maintain your books and money that's coming in and

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<v Speaker 2>going out of your business. The issue with that is

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<v Speaker 2>that when you do that, you have you pretty much

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<v Speaker 2>have the opportunity to miss things, right. So if you're

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<v Speaker 2>missing things, you may forget to include a transaction, you

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<v Speaker 2>may include you know, some revenue or some expenses. So

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<v Speaker 2>what you want to do is you want to make

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<v Speaker 2>sure that you're able to kind of get ahead of that, right.

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<v Speaker 2>And so I do recommend like some sort of software.

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<v Speaker 2>So whether that's like quick Books, Sorry, some of my clients.

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<v Speaker 2>I use quick Books within my company with my clients.

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<v Speaker 2>But what's some other one WAVE A lot of not

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<v Speaker 2>a lot of clients, but some clients do use WAVE.

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<v Speaker 2>I don't care what you use, just use something, right,

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<v Speaker 2>And so the business.

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<v Speaker 3>Is that this episode is brought to you by P

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<v Speaker 3>and C Bank. A lot of people think podcasts about

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<v Speaker 1>An illegal alien from Guatemala charged with raping a child

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<v Speaker 1>in Massachusetts. An MS thirteen gang member from El Salvador

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<v Speaker 1>accused of murdering a Texas man a Venezuela and charged

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<v Speaker 1>with filming and selling child pornography in Michigan. These are

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<v Speaker 1>just some of the heinous migrant criminals caught because of

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<v Speaker 1>President Donald J. Trump's leadership. I'm Christy nom the United

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<v Speaker 1>States Secretary of Homeland Security. Under President Trump, attempted illegal

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<v Speaker 1>border crossings are at the lowest levels ever recorded, and

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<v Speaker 1>over one hundred thousand illegal aliens have been arrested. If

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<v Speaker 1>you are here illegally, your next you will be fine.

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<v Speaker 1>Nearly one thousand dollars a day. Imprisoned and deported, you

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<v Speaker 1>will never return. But if you register using our CBP

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<v Speaker 1>home app and leave now, you could be allowed to

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<v Speaker 1>return legally. Do what's right, leave now. Under President Trump

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<v Speaker 1>America's laws, border and families will be protected sponsored by

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<v Speaker 1>the United States Department of Homeland.

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<v Speaker 2>Security right off, if they decide to absolutely, so yes,

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<v Speaker 2>so sorry, guys, you know my voice is going, so absolutely,

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<v Speaker 2>if you guys sign up for quick books, if you

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<v Speaker 2>guys decide to pay me, if you guys decide to

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<v Speaker 2>pay another professional, all of those things are tax write offs, right,

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<v Speaker 2>And that's the beauty. And I said this on stage.

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<v Speaker 2>I was like, you know, the beauty of being a

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<v Speaker 2>business owner or an investor is that you get to

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<v Speaker 2>make your money, pay your expenses, and then your tax

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<v Speaker 2>on what's left. Versus when you are a W two employee,

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<v Speaker 2>what happens is that you get your money, your tax,

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<v Speaker 2>and then you have to try to live off what's left,

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<v Speaker 2>you know. And so just looking at it that way

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<v Speaker 2>is like you know, I tell clients all the time,

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<v Speaker 2>it really is about what can we really what can

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<v Speaker 2>we do to bring more of our personal expenses over

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<v Speaker 2>to the business side. So now that business is now

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<v Speaker 2>deducting those expenses versus you know, us trying to live

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<v Speaker 2>off of let's say that W two income that we're

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<v Speaker 2>bringing in. So I put bookkeeping first because bookkeeping, as

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<v Speaker 2>I put here, is really the foundation. Okay, So it

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<v Speaker 2>is the foundation of tax planning. I cannot help you

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<v Speaker 2>save on taxes if I don't know how much your

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<v Speaker 2>business is profiting. If I don't know what expenses you

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<v Speaker 2>really have or what assets you really have already, it's

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<v Speaker 2>pretty much impossible for me to help you. And so

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<v Speaker 2>if you want help or you want to be able

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<v Speaker 2>to take advantage of things, you have to have your

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<v Speaker 2>foundation in order, okay. And bookkeeping is very important, especially

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<v Speaker 2>for you know, if you're going for any loans or

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<v Speaker 2>you don't know how many people every single year contact me,

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<v Speaker 2>actually every single week, contact my office and they're like,

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<v Speaker 2>oh my god, I'm going for a loan and asking

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<v Speaker 2>me for a profit in law statement. And I can't

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<v Speaker 2>give them my profit in law statement because I don't

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<v Speaker 2>have any bookkeeping. Oh my god, can you guys do

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<v Speaker 2>my bookkeeping? I need you to do my bookkeeping for

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<v Speaker 2>the past two years, and I need it done in

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<v Speaker 2>two days, we're like, do you want us to go

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<v Speaker 2>through twenty four months? Wow? You know, and so because

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<v Speaker 2>nothing is urgent until it's urgent, and I like to

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<v Speaker 2>practice a lot, and most people look at me and

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<v Speaker 2>they're like, Okay, well, you know, you're just like it's

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<v Speaker 2>just taxes. But it's like, no, this is really the foundation.

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<v Speaker 2>Like I really am like the powerhouse to a business

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<v Speaker 2>from the financial perspective because all of these tools, all

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<v Speaker 2>of these things, if you conduct your business and your

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<v Speaker 2>incompliance and you have your bookkeeping done and you know

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<v Speaker 2>you're able to take, you able to save on taxes

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<v Speaker 2>and file your taxes on time, and all of those

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<v Speaker 2>things contribute to a profitable business. Okay, so More wrote

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<v Speaker 2>the story get your stuff Together. So let's just quickly

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<v Speaker 2>talk about tax deductions. So with tax deductions within tax

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<v Speaker 2>planning for the most part, sometimes we do have to

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<v Speaker 2>bring up to clients tax deductions that they need to take,

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<v Speaker 2>or they need to consider, or they need to shift

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<v Speaker 2>from a business side I mean sorry, from their personal

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<v Speaker 2>over to their business. So any consultants, mails, travels, gifts,

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<v Speaker 2>entertainment service sorry, internet, internet services, computer or software, cell phone, education,

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<v Speaker 2>medical magazine. So these are just some right. Of course,

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<v Speaker 2>we have home office, we have vehicle, which we'll talk

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<v Speaker 2>about a little later. There's so many different things. How

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<v Speaker 2>I like to tell clients to think about tax deductions,

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<v Speaker 2>and well, I want to define tax deductions because a

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<v Speaker 2>lot of times people ask me what's like to define it?

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<v Speaker 2>So I'll continue this thought, but it just popped in

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<v Speaker 2>my head that I need to define this. So a

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<v Speaker 2>lot of times what I tell clients is if you

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<v Speaker 2>are spending money on this particular thing in order to

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<v Speaker 2>complete that transaction, in order to get that money through

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<v Speaker 2>the door, then ninety five percent of the time it

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<v Speaker 2>is a tax deduction. Okay, So pretty much tax deduction

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<v Speaker 2>really is just you capturing all of your expenses that

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<v Speaker 2>you have put out in order to operate your business.

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<v Speaker 2>So for the irs, in order for something to be

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<v Speaker 2>considered as an expense, it has to be reasonable, and

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<v Speaker 2>they had I'm sorry, not reasonable. Sorry, it has to

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<v Speaker 2>be necessary and ordinary. And so what that means is necessary,

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<v Speaker 2>meaning that you needed it in order to complete your business. Right,

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<v Speaker 2>And then there's a necessary an ordinary ordinary meaning that

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<v Speaker 2>is common. Right, So if it's something common in your

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<v Speaker 2>industry and it's necessary, is considered a tax deduction,