1 00:00:00,080 --> 00:00:00,440 Speaker 1: Turners. 2 00:00:00,480 --> 00:00:01,040 Speaker 2: What's going on? 3 00:00:01,200 --> 00:00:05,800 Speaker 3: Listen, Eylu is relaunching, revamping Retoom. That's why we're creating 4 00:00:05,880 --> 00:00:09,640 Speaker 3: a new educational experience that's more expensive, shy telling. 5 00:00:09,480 --> 00:00:11,280 Speaker 4: We gods twenty twenty three. 6 00:00:11,880 --> 00:00:12,559 Speaker 5: We got a lot. 7 00:00:12,600 --> 00:00:14,800 Speaker 4: It's still a lot planning for you guys. So you 8 00:00:14,840 --> 00:00:18,919 Speaker 4: know that Eylu already includes monthly financial planning calls with me, 9 00:00:19,079 --> 00:00:22,160 Speaker 4: book club calls with Troy, real estate calls with MG 10 00:00:22,280 --> 00:00:26,000 Speaker 4: to mortgage Guy, access to the home Buying Blueprint Volume 11 00:00:26,040 --> 00:00:29,280 Speaker 4: one and Volume two. Part of the revamp will include 12 00:00:29,480 --> 00:00:33,240 Speaker 4: twenty seven local chapters from across the United States, live 13 00:00:33,400 --> 00:00:37,680 Speaker 4: interactive teaching, hands on not just pre recorded videos, plus 14 00:00:37,920 --> 00:00:40,440 Speaker 4: fifteen brand new curriculums. 15 00:00:40,760 --> 00:00:42,360 Speaker 2: The biggest just got viger. 16 00:00:42,840 --> 00:00:47,560 Speaker 6: Head over to eyl university dot com. That's EYL. You 17 00:00:48,000 --> 00:00:53,240 Speaker 6: n I V E R s I t y dot com. 18 00:00:53,479 --> 00:00:54,040 Speaker 2: See it there. 19 00:00:54,280 --> 00:00:57,960 Speaker 7: An illegal alien from Guatemala charged with raping a child 20 00:00:58,000 --> 00:01:01,160 Speaker 7: in Massachusetts and MS thir two gang member from Al 21 00:01:01,240 --> 00:01:06,080 Speaker 7: Salvador accused of murdering a Texas man of Venezuelan charged 22 00:01:06,080 --> 00:01:10,000 Speaker 7: with filming and selling child pornography in Michigan. These are 23 00:01:10,040 --> 00:01:13,560 Speaker 7: just some of the heinous migrant criminals caught because of 24 00:01:13,600 --> 00:01:17,319 Speaker 7: President Donald J. Trump's leadership. I'm Christy Noman, the United 25 00:01:17,319 --> 00:01:22,080 Speaker 7: States Secretary of Homeland Security. Under President Trump, attempted illegal 26 00:01:22,120 --> 00:01:25,760 Speaker 7: border crossings are at the lowest levels ever recorded, and 27 00:01:25,800 --> 00:01:29,160 Speaker 7: over one hundred thousand illegal aliens have been arrested. If 28 00:01:29,200 --> 00:01:32,839 Speaker 7: you are here illegally, your next you will be fine 29 00:01:32,920 --> 00:01:37,000 Speaker 7: nearly one thousand dollars a day. Imprisoned and deported, you 30 00:01:37,080 --> 00:01:40,600 Speaker 7: will never return. But if you register using our CBP 31 00:01:40,760 --> 00:01:43,520 Speaker 7: home app and leave now, you could be allowed to 32 00:01:43,560 --> 00:01:45,600 Speaker 7: return legally. Do what's right. 33 00:01:46,160 --> 00:01:47,040 Speaker 1: Leave now. 34 00:01:47,360 --> 00:01:52,120 Speaker 7: Under President Trump, America's laws, border and families will be protected. 35 00:01:52,240 --> 00:01:54,400 Speaker 8: Sponsored by the United States Department of Homeland Security. 36 00:01:54,560 --> 00:02:00,600 Speaker 5: Okay, yes, welcome back to part three, Yeah, man of 37 00:02:00,640 --> 00:02:01,800 Speaker 5: our how to series. 38 00:02:02,560 --> 00:02:02,840 Speaker 3: Uh. 39 00:02:02,920 --> 00:02:08,200 Speaker 5: Two weeks ago we talked about relal estate, Mortgage Guy 40 00:02:08,760 --> 00:02:11,000 Speaker 5: and all things you need to know about buying home. 41 00:02:11,040 --> 00:02:13,800 Speaker 5: Make sure you check that episode out. And last week 42 00:02:13,880 --> 00:02:16,400 Speaker 5: we had a great episode with x something great to 43 00:02:16,480 --> 00:02:21,560 Speaker 5: understand for sure, absolute classic talking about artificial intelligence, something 44 00:02:21,600 --> 00:02:25,880 Speaker 5: that's very very important. Time we walked how too really 45 00:02:26,040 --> 00:02:30,080 Speaker 5: on artificial intelligence. You know everything that you need to know, 46 00:02:30,360 --> 00:02:34,720 Speaker 5: So keeping in theme with you know, the educational series 47 00:02:34,720 --> 00:02:38,400 Speaker 5: that we've been doing on these Thursdays. Tonight we're going 48 00:02:38,440 --> 00:02:40,800 Speaker 5: to be talking about a very important topic and another, 49 00:02:41,080 --> 00:02:42,640 Speaker 5: you know, one of these topics that we don't learn 50 00:02:42,720 --> 00:02:47,000 Speaker 5: about in school, and cause it's so many problems. You 51 00:02:47,040 --> 00:02:50,520 Speaker 5: look at so many entertainers that old millions of dollars 52 00:02:50,560 --> 00:02:53,760 Speaker 5: on taxes, and so many people go bankrupt because of taxes, 53 00:02:53,840 --> 00:02:56,919 Speaker 5: and so many people just don't understand how to actually 54 00:02:57,040 --> 00:03:00,400 Speaker 5: you know, play. The tax code is very complicated and 55 00:03:00,440 --> 00:03:03,240 Speaker 5: it changes all the time, so you can never just 56 00:03:03,320 --> 00:03:05,320 Speaker 5: have one understanding of the tax code. It has to 57 00:03:06,120 --> 00:03:10,160 Speaker 5: always be updated. And there's millions of dollars that can 58 00:03:10,200 --> 00:03:14,280 Speaker 5: be potentially saved and lost if you don't understand taxes. 59 00:03:14,320 --> 00:03:17,799 Speaker 5: So we're going to be talking about taxes tonight, very 60 00:03:17,800 --> 00:03:19,320 Speaker 5: important and the words. 61 00:03:19,040 --> 00:03:21,160 Speaker 3: Of Lauren Hill and about what you cop is what 62 00:03:21,240 --> 00:03:23,520 Speaker 3: you keep and uh, it's good to make the money, 63 00:03:23,560 --> 00:03:26,760 Speaker 3: but mostly important, most so important how you managed to 64 00:03:26,880 --> 00:03:29,520 Speaker 3: keep the money rather than paying it in tax. And 65 00:03:29,560 --> 00:03:32,160 Speaker 3: we already know about state tax and federal tax, income tax, 66 00:03:32,360 --> 00:03:35,240 Speaker 3: all types of tax. We're going to be covering a 67 00:03:35,280 --> 00:03:38,520 Speaker 3: plethora of information. So went for a treat another one. 68 00:03:38,360 --> 00:03:41,120 Speaker 5: So whatever further do, let's bring up our good friend. 69 00:03:41,680 --> 00:03:43,040 Speaker 5: Let's do that business. 70 00:03:43,240 --> 00:03:45,760 Speaker 2: Yes, yes, yes, hello. 71 00:03:45,680 --> 00:03:48,800 Speaker 1: Thank you for having me again and again and again 72 00:03:49,200 --> 00:03:49,720 Speaker 1: and again. 73 00:03:49,760 --> 00:03:52,240 Speaker 3: You know, the last time we went on the Educadle's 74 00:03:52,440 --> 00:03:55,400 Speaker 3: educational journey with you, it changed the way that people 75 00:03:55,400 --> 00:03:57,480 Speaker 3: were consuming and buying vehicles. 76 00:03:58,440 --> 00:04:00,840 Speaker 1: Know, I said that all the time, like I did. 77 00:04:01,600 --> 00:04:04,160 Speaker 1: We did that video back in twenty nineteen. I feel 78 00:04:04,200 --> 00:04:07,840 Speaker 1: like from then I have seen so many different videos. 79 00:04:07,880 --> 00:04:13,200 Speaker 1: Everyone's an expert, everyone's adame now changed the game, It 80 00:04:13,360 --> 00:04:14,520 Speaker 1: definitely changed the game. 81 00:04:14,720 --> 00:04:17,159 Speaker 5: Let's do it again, for sure. So miss business with 82 00:04:17,240 --> 00:04:22,239 Speaker 5: Brooks Alliance CPA. Right, so you're actually qualified to speak 83 00:04:22,240 --> 00:04:25,800 Speaker 5: about taxes, not just somebody that does it part time, 84 00:04:27,240 --> 00:04:29,680 Speaker 5: has their own firm and has worked with businesses and 85 00:04:29,720 --> 00:04:35,320 Speaker 5: individuals for a long time. So somebody that we've developed 86 00:04:35,320 --> 00:04:38,920 Speaker 5: a great relationship, which she's done investmentst every year, then 87 00:04:39,320 --> 00:04:43,960 Speaker 5: Legion multiple times, market mondays and actually works closely with 88 00:04:44,040 --> 00:04:47,400 Speaker 5: us on our taxes as well, so our tax advisor. 89 00:04:48,200 --> 00:04:55,520 Speaker 3: So your CPA could never could never, could never for sure. 90 00:04:55,680 --> 00:04:57,440 Speaker 5: So first and foremost, thank you for join us. 91 00:04:57,480 --> 00:04:59,880 Speaker 1: Appreciate it, You're welcome, thank you for having me. 92 00:05:00,320 --> 00:05:03,160 Speaker 5: Yes, all right, So it's a lot to go over 93 00:05:03,600 --> 00:05:05,640 Speaker 5: in this In this session, we want to we want 94 00:05:05,640 --> 00:05:08,159 Speaker 5: to go over you know, how business owners can save 95 00:05:08,200 --> 00:05:10,840 Speaker 5: money on taxes, how individuals can save money on taxes. 96 00:05:10,839 --> 00:05:12,719 Speaker 5: We're gonna go over retirement plans. We're want to go 97 00:05:12,720 --> 00:05:15,640 Speaker 5: over you know, payroll, putting your kids on and all 98 00:05:15,680 --> 00:05:17,159 Speaker 5: that type of stuff. We're gonna be going to actually 99 00:05:17,200 --> 00:05:20,720 Speaker 5: go over actionable items that you can actually utilize to 100 00:05:20,720 --> 00:05:23,200 Speaker 5: to you know, make your life better. When it comes 101 00:05:23,200 --> 00:05:26,039 Speaker 5: to taxes, Let's get into how people can actually you know, 102 00:05:26,960 --> 00:05:30,800 Speaker 5: save money, learn about tax code deductions with you know, 103 00:05:31,640 --> 00:05:35,640 Speaker 5: what is most important for the average person. Right, So 104 00:05:35,920 --> 00:05:36,880 Speaker 5: where do you want to start. 105 00:05:37,920 --> 00:05:40,400 Speaker 1: Let's start talk about the cycle. Let's talk about the 106 00:05:40,440 --> 00:05:44,320 Speaker 1: cycle of reducing taxes. And I love this quadrant because 107 00:05:44,360 --> 00:05:48,120 Speaker 1: it makes it so easy for people to understand exactly 108 00:05:48,240 --> 00:05:50,920 Speaker 1: where you are and what is the cycle and how 109 00:05:50,920 --> 00:05:54,200 Speaker 1: do you actually go about saving on taxes and what 110 00:05:54,240 --> 00:05:57,039 Speaker 1: does that look like? And tonight I want to basically 111 00:05:57,080 --> 00:05:59,360 Speaker 1: touch all of these topics so that way people can 112 00:05:59,400 --> 00:06:02,920 Speaker 1: get like picture in terms of like, hey, this is 113 00:06:02,960 --> 00:06:04,880 Speaker 1: you know, this is what you really need to do 114 00:06:05,320 --> 00:06:07,560 Speaker 1: if you want to save on taxes. And I tell 115 00:06:07,600 --> 00:06:11,240 Speaker 1: people all the time, if you really follow the strategy 116 00:06:11,360 --> 00:06:14,400 Speaker 1: in terms of how to actually save you will really 117 00:06:14,400 --> 00:06:17,080 Speaker 1: set yourself up for the future, which I'm really scared 118 00:06:17,080 --> 00:06:19,560 Speaker 1: about because I find that not enough people are investing 119 00:06:19,680 --> 00:06:22,520 Speaker 1: for their future. You know, we're in this space where 120 00:06:22,520 --> 00:06:25,440 Speaker 1: everybody's like hustling and trying to figure it out, and 121 00:06:25,480 --> 00:06:29,440 Speaker 1: you know, they're starting these businesses and operating these businesses, 122 00:06:29,520 --> 00:06:32,080 Speaker 1: and then no one's really thinking about retirement. But if 123 00:06:32,080 --> 00:06:35,440 Speaker 1: you think about if you think about how taxes go 124 00:06:35,560 --> 00:06:37,240 Speaker 1: and the things that you can invest in and what 125 00:06:37,360 --> 00:06:40,440 Speaker 1: helps you save on taxes, you would have no problem 126 00:06:40,560 --> 00:06:45,080 Speaker 1: one being wealthy and two saving on taxes. So let's 127 00:06:45,080 --> 00:06:49,480 Speaker 1: talk about the cycle of reducing your taxes. Okay, So 128 00:06:50,040 --> 00:06:52,360 Speaker 1: first you start out right, this and this is my 129 00:06:52,680 --> 00:06:56,320 Speaker 1: this is my this is my flow. This is you 130 00:06:56,360 --> 00:06:59,039 Speaker 1: guys flow too, right in terms of how it went right, 131 00:06:59,120 --> 00:07:02,080 Speaker 1: you guys, well not Rashad, Rashad, I know you talked 132 00:07:02,080 --> 00:07:03,480 Speaker 1: about all the time. I don't think you ever had 133 00:07:03,480 --> 00:07:10,840 Speaker 1: a job, right, you know? Okay, all right, So for 134 00:07:11,000 --> 00:07:13,760 Speaker 1: most people, this is how you start you are you know, 135 00:07:13,800 --> 00:07:16,320 Speaker 1: you start out as an employee. And then once you 136 00:07:16,320 --> 00:07:18,440 Speaker 1: start out as an employee, I want you to understand 137 00:07:18,480 --> 00:07:21,080 Speaker 1: that one thing about the tax code. The more you work, 138 00:07:21,280 --> 00:07:23,800 Speaker 1: the more taxes you pay. It just is what it is. 139 00:07:24,280 --> 00:07:28,160 Speaker 1: So another thing about being an employee is you have 140 00:07:28,400 --> 00:07:31,520 Speaker 1: you don't have much flexibility. So when I say you 141 00:07:31,520 --> 00:07:35,040 Speaker 1: don't have much flexibility, what I mean is your your 142 00:07:35,080 --> 00:07:36,640 Speaker 1: pay rate is your I mean your pay rate is 143 00:07:36,640 --> 00:07:40,120 Speaker 1: your pay rate? Your tax rate? Right, is your tax rate. 144 00:07:40,560 --> 00:07:42,960 Speaker 1: There are some deductions which will talk about, but there 145 00:07:42,960 --> 00:07:46,600 Speaker 1: aren't many, right, there aren't many for employees. So the 146 00:07:46,640 --> 00:07:50,360 Speaker 1: taxes that you pay are kind of set. Right now, 147 00:07:50,920 --> 00:07:53,440 Speaker 1: Then what happens is you move into being self employed. 148 00:07:53,440 --> 00:07:55,560 Speaker 1: That's when you give yourself a job. Right, you give 149 00:07:55,600 --> 00:07:58,120 Speaker 1: yourself a job. You don't really have much help, it's 150 00:07:58,200 --> 00:08:00,880 Speaker 1: just you. You're wearing so many hats. Now, that's when 151 00:08:00,920 --> 00:08:04,000 Speaker 1: you start to form your LLC. You may convert over 152 00:08:04,080 --> 00:08:07,920 Speaker 1: to an escort. That's when you start taking advantage of deductions. 153 00:08:07,960 --> 00:08:11,480 Speaker 1: You may implement some sort of retirement account in place, 154 00:08:12,480 --> 00:08:14,240 Speaker 1: and so that's when you know it's you. And now 155 00:08:14,240 --> 00:08:15,960 Speaker 1: you're starting to catch on. You're like, all right, cool. 156 00:08:16,960 --> 00:08:20,280 Speaker 1: Then what happens is you become a business owner. A 157 00:08:20,320 --> 00:08:22,440 Speaker 1: business owner, this is where you have the oh, you know, 158 00:08:22,480 --> 00:08:26,640 Speaker 1: you have way more flexibility. You now have employees, You're 159 00:08:26,640 --> 00:08:30,920 Speaker 1: now delegating things. Everything isn't on you. Then that's where 160 00:08:30,960 --> 00:08:33,520 Speaker 1: you may switch over and find a beneficial to be 161 00:08:33,559 --> 00:08:36,880 Speaker 1: a C corporation. Now you have employees, you're able to 162 00:08:36,920 --> 00:08:40,120 Speaker 1: take additional deductions because now you're able to benefit them, 163 00:08:40,880 --> 00:08:44,400 Speaker 1: you know, by whether it's bonuses or And that's what 164 00:08:44,440 --> 00:08:46,560 Speaker 1: we talked about on the when I first when I 165 00:08:46,640 --> 00:08:49,520 Speaker 1: was a guest. We talked about Amazon and how they 166 00:08:49,559 --> 00:08:52,600 Speaker 1: were able to reduce their taxes, and a big part 167 00:08:52,600 --> 00:08:54,720 Speaker 1: of it it was the stock options, right, and the 168 00:08:54,840 --> 00:08:57,920 Speaker 1: value of the stock options that they were able to 169 00:08:58,080 --> 00:09:03,040 Speaker 1: reduce their income. Right. So now once you start getting employees, 170 00:09:03,559 --> 00:09:06,120 Speaker 1: now you're playing a whole nother game, right, because now 171 00:09:06,160 --> 00:09:08,360 Speaker 1: you're able to contribute and you have stocks and all 172 00:09:08,600 --> 00:09:11,840 Speaker 1: those things. Then you contribute to like higher type of 173 00:09:12,040 --> 00:09:15,600 Speaker 1: retirement accounts, and then you go to being an investor. 174 00:09:16,120 --> 00:09:18,880 Speaker 1: Being an investor is the ultimate tax tax. I tell 175 00:09:18,920 --> 00:09:22,480 Speaker 1: people all the time. Everyone does not love real estate. 176 00:09:22,559 --> 00:09:29,480 Speaker 1: Real estate is not the best business right in the world. However, 177 00:09:29,520 --> 00:09:32,599 Speaker 1: it provides you a lot of tax deductions and benefits. 178 00:09:32,600 --> 00:09:34,560 Speaker 1: So a lot of people when they get to a 179 00:09:34,559 --> 00:09:37,000 Speaker 1: certain point are like Okay, I'm going to have to 180 00:09:37,000 --> 00:09:40,120 Speaker 1: get into real estate. So, yes, some people enjoy it 181 00:09:40,160 --> 00:09:43,240 Speaker 1: and it is an amazing tool and an amazing resource. 182 00:09:43,920 --> 00:09:46,360 Speaker 1: But I want people to also think about what are 183 00:09:46,360 --> 00:09:48,520 Speaker 1: the things that you have to do or the investments 184 00:09:48,559 --> 00:09:51,040 Speaker 1: that you have to make in order to help you, 185 00:09:51,040 --> 00:09:53,720 Speaker 1: you know, live tax free. The same thing goes with 186 00:09:53,800 --> 00:09:57,040 Speaker 1: investment in the stock market. It's passive, it has a 187 00:09:57,040 --> 00:09:59,840 Speaker 1: lower tax rate. So even if you put your money, 188 00:10:00,440 --> 00:10:03,680 Speaker 1: if you made the exact same money in the stock 189 00:10:03,760 --> 00:10:07,440 Speaker 1: market that you made in W two income, you would 190 00:10:07,480 --> 00:10:10,840 Speaker 1: be paying like a much lower tax Ruder, Like I 191 00:10:10,880 --> 00:10:13,400 Speaker 1: just told you guys, somebody could have a gain. A 192 00:10:13,440 --> 00:10:16,439 Speaker 1: married couple would have a gain in the stock market 193 00:10:16,480 --> 00:10:19,280 Speaker 1: of ninety thousand dollars. They would have to pay zero taxes. Well, 194 00:10:19,280 --> 00:10:21,920 Speaker 1: if they had a if they made W two income, 195 00:10:22,320 --> 00:10:24,720 Speaker 1: they would be looking at on the federal side alone, 196 00:10:24,800 --> 00:10:30,240 Speaker 1: about twenty five percent in taxes. Right, that's not including state. Right, 197 00:10:31,320 --> 00:10:34,240 Speaker 1: Like me live in New York City, right, local. Right, 198 00:10:34,720 --> 00:10:38,520 Speaker 1: So now you have all of these different taxes, and 199 00:10:38,920 --> 00:10:41,959 Speaker 1: you know it can be pricey. So when we're talking 200 00:10:42,000 --> 00:10:44,800 Speaker 1: about reducing taxes, I want us to talk about like 201 00:10:44,840 --> 00:10:47,640 Speaker 1: the flow and really understanding that we have to look 202 00:10:47,679 --> 00:10:51,280 Speaker 1: at everything. So before we start talking about business owners, 203 00:10:51,400 --> 00:10:54,880 Speaker 1: let's just quickly talk about what tax deductions are there 204 00:10:55,400 --> 00:11:00,840 Speaker 1: for individuals, and then we'll go on to being a 205 00:11:00,840 --> 00:11:03,800 Speaker 1: business owner, because honestly, being starting a business is a 206 00:11:04,080 --> 00:11:08,800 Speaker 1: tax strategy for people that have W two income. Right. 207 00:11:08,840 --> 00:11:10,800 Speaker 1: And when I say starting a business, that could be 208 00:11:10,920 --> 00:11:13,240 Speaker 1: you know, starting a business that can be invested in 209 00:11:13,280 --> 00:11:15,800 Speaker 1: real estate. But you have to do something, right. I 210 00:11:15,840 --> 00:11:17,600 Speaker 1: always say, if you want to kind of change your 211 00:11:17,640 --> 00:11:20,079 Speaker 1: tax situation, you got to change what's happening, right. You 212 00:11:20,080 --> 00:11:22,960 Speaker 1: gotta change your facts and what's actually being put down 213 00:11:23,000 --> 00:11:25,760 Speaker 1: on paper if you want to make that change. So 214 00:11:26,840 --> 00:11:31,040 Speaker 1: let's talk tax minimization as it relates to individuals. Right, 215 00:11:31,080 --> 00:11:33,840 Speaker 1: So you can do things like invest in in thissible bonds, 216 00:11:34,480 --> 00:11:37,680 Speaker 1: long term capital gains. So I like to list long 217 00:11:37,760 --> 00:11:40,679 Speaker 1: term capital gains because a lot of people that are 218 00:11:41,640 --> 00:11:44,560 Speaker 1: that are looking for a way to say, hey, well, 219 00:11:44,600 --> 00:11:48,000 Speaker 1: how can I take my income and generate additional income 220 00:11:48,080 --> 00:11:50,559 Speaker 1: and not have to pay as much taxes? So again 221 00:11:50,600 --> 00:11:53,000 Speaker 1: we talked about this, you know a good amount already 222 00:11:53,160 --> 00:11:56,520 Speaker 1: just investing that is one way that can be done 223 00:11:56,600 --> 00:12:00,080 Speaker 1: starting a business. So we'll talk about that on the 224 00:12:00,120 --> 00:12:02,600 Speaker 1: next what we'll continue to talk about that, just like 225 00:12:02,679 --> 00:12:04,680 Speaker 1: being a business owner and how you can shift a 226 00:12:04,679 --> 00:12:08,040 Speaker 1: lot of those expenses that you guys are paying with 227 00:12:08,200 --> 00:12:11,840 Speaker 1: after tax dollars and shift it up into your business. 228 00:12:11,880 --> 00:12:15,640 Speaker 1: So now it's a tax eduction. Right. There's major power 229 00:12:15,760 --> 00:12:20,280 Speaker 1: in that maxing out your retirement plans. So most people 230 00:12:20,440 --> 00:12:24,320 Speaker 1: are not actually maxing out their retirement plans at work 231 00:12:24,360 --> 00:12:27,400 Speaker 1: that is done with before tax dollars. So if that's 232 00:12:27,440 --> 00:12:30,520 Speaker 1: done with before tax dollars, go ahead, invest in your 233 00:12:30,559 --> 00:12:34,040 Speaker 1: retirement plan. So therefore you're able to get to maximize 234 00:12:34,040 --> 00:12:36,680 Speaker 1: all your money and take advantage of that compound interest. 235 00:12:37,040 --> 00:12:42,000 Speaker 1: So employee benefits, HSA accounts, and then your tax credits, right, 236 00:12:42,040 --> 00:12:46,080 Speaker 1: so your earn Income Credit, your American Opportunity Credit, child 237 00:12:46,200 --> 00:12:49,640 Speaker 1: and Child and Dependent Care credits, so all of those 238 00:12:49,720 --> 00:12:53,040 Speaker 1: are credits. One credit that I did not well, one 239 00:12:54,000 --> 00:12:56,240 Speaker 1: really good deduction that I didn't put up here, which 240 00:12:56,280 --> 00:12:58,680 Speaker 1: I just thought about because we were talking about real estate, 241 00:12:59,760 --> 00:13:05,160 Speaker 1: is the homestead Exemption credit for realism for all of 242 00:13:05,160 --> 00:13:08,280 Speaker 1: my individuals that are selling their property. Right, so I 243 00:13:08,320 --> 00:13:11,520 Speaker 1: talked about ten thirty one exchange, A really good one 244 00:13:11,559 --> 00:13:15,960 Speaker 1: for individuals when they sell is they are able to 245 00:13:16,480 --> 00:13:19,280 Speaker 1: exempt up to two hundred and fifty thousand dollars of 246 00:13:19,320 --> 00:13:22,480 Speaker 1: a capital game if you're single, right, if you're married, 247 00:13:22,520 --> 00:13:25,120 Speaker 1: you get to exempt up to five hundred thousand. So 248 00:13:25,200 --> 00:13:28,400 Speaker 1: I've had clients in so many different scenarios where there 249 00:13:28,480 --> 00:13:31,520 Speaker 1: was one client she literally sold, she helped, she had 250 00:13:31,520 --> 00:13:35,760 Speaker 1: a property. Eleven and a half months she sold the property. 251 00:13:36,640 --> 00:13:39,840 Speaker 1: And I'm like, no, no, sorry, it was a year. Sorry, 252 00:13:39,920 --> 00:13:41,920 Speaker 1: it wasn't a year. It was one year and eleven month, 253 00:13:41,960 --> 00:13:45,640 Speaker 1: eleven and a half months. And the exemption, I mean, 254 00:13:45,679 --> 00:13:47,960 Speaker 1: the credit says that if you live in this home 255 00:13:48,040 --> 00:13:50,520 Speaker 1: two out of the five years that you that you've 256 00:13:50,520 --> 00:13:53,640 Speaker 1: owned it, that you get to exempt this two hundred 257 00:13:53,640 --> 00:13:56,160 Speaker 1: and fifty thousand dollars. And so I was like, oh 258 00:13:56,160 --> 00:13:59,040 Speaker 1: my god, why didn't you call us? Because now what 259 00:13:59,160 --> 00:14:01,480 Speaker 1: happens is because she sold it before the two years, 260 00:14:01,600 --> 00:14:05,000 Speaker 1: now she can't. Right now she can't take advantage of 261 00:14:05,040 --> 00:14:08,080 Speaker 1: the credit. But has she just known and held on 262 00:14:08,120 --> 00:14:11,079 Speaker 1: to it for freaking fifty months things? 263 00:14:11,640 --> 00:14:12,880 Speaker 2: Yeah, yeah, she's two months away. 264 00:14:13,720 --> 00:14:17,280 Speaker 1: Yeah dang, yeah, no, actually she was fifteen days she 265 00:14:17,360 --> 00:14:19,600 Speaker 1: was it was one year and eleven months. She only 266 00:14:19,640 --> 00:14:23,960 Speaker 1: needed to hold on to it for two years, so 267 00:14:24,680 --> 00:14:27,000 Speaker 1: she would have been she would have been exempt from taxes, 268 00:14:27,920 --> 00:14:30,160 Speaker 1: you know. So it's like knowing things like that is 269 00:14:30,240 --> 00:14:35,120 Speaker 1: really important because again, you're giving away money. Be offended, 270 00:14:35,240 --> 00:14:37,160 Speaker 1: like be I want people to get offended. I always say, 271 00:14:37,160 --> 00:14:39,560 Speaker 1: if I came to you and said, listen, I want 272 00:14:39,600 --> 00:14:41,920 Speaker 1: twenty percent of your house sales, sell your house and 273 00:14:41,960 --> 00:14:44,960 Speaker 1: then give me twenty percent, you would be highly offended. 274 00:14:45,200 --> 00:14:48,840 Speaker 1: You probably want to punch me right like, you would 275 00:14:48,840 --> 00:14:51,960 Speaker 1: be highly offended. But when it comes to taxes, people 276 00:14:52,000 --> 00:14:53,960 Speaker 1: don't understand it. So they just be like, Okay, I'm 277 00:14:53,960 --> 00:14:55,760 Speaker 1: gonna just pay it, but I want you I want 278 00:14:55,800 --> 00:14:58,160 Speaker 1: you guys to get offended and really do whatever you 279 00:14:58,440 --> 00:15:01,360 Speaker 1: feel that you can do to minimize your taxes, which 280 00:15:01,400 --> 00:15:04,560 Speaker 1: is just have the conversation right with with your CPA 281 00:15:04,720 --> 00:15:07,320 Speaker 1: or your accountant. And if you can't have that conversation 282 00:15:07,400 --> 00:15:09,680 Speaker 1: with them, then that means that you need to fire them, right, 283 00:15:09,720 --> 00:15:12,760 Speaker 1: because then that means that they're not for you anymore. 284 00:15:13,760 --> 00:15:15,920 Speaker 5: All right, So yeah, so we're gonna we're gonna get 285 00:15:15,960 --> 00:15:21,239 Speaker 5: into different type of tax deductions in detail. First, everybody 286 00:15:21,360 --> 00:15:24,720 Speaker 5: hit the like button and share please about to get 287 00:15:25,520 --> 00:15:29,640 Speaker 5: deep into it, but let's go over just the actual 288 00:15:29,720 --> 00:15:33,680 Speaker 5: brackets if we can, before we go into the different 289 00:15:33,720 --> 00:15:34,680 Speaker 5: type of strategy. 290 00:15:35,400 --> 00:15:38,920 Speaker 1: Yeah. So brackets are important, right, Brackets are important because 291 00:15:39,440 --> 00:15:42,160 Speaker 1: when you fall into a particular bracket, that is going 292 00:15:42,240 --> 00:15:45,360 Speaker 1: to determine the amount of taxes that you are going 293 00:15:45,440 --> 00:15:49,480 Speaker 1: to pay. Right, So, earlier I talked a lot about Hey, well, 294 00:15:49,600 --> 00:15:51,440 Speaker 1: you know, if you had a couple that weren't that 295 00:15:51,520 --> 00:15:54,040 Speaker 1: was investing in the stock market, and if they were 296 00:15:54,080 --> 00:15:56,400 Speaker 1: invested in the stock market, then they would be able 297 00:15:56,440 --> 00:16:00,000 Speaker 1: to you know, take a you know, sorry, they would 298 00:16:00,080 --> 00:16:02,160 Speaker 1: be able to make ninety thousand dollars an income and 299 00:16:02,200 --> 00:16:05,000 Speaker 1: pay zero taxes. But if you have that same person 300 00:16:05,400 --> 00:16:09,200 Speaker 1: that was like married, right they what are we looking at? Okay, 301 00:16:09,240 --> 00:16:12,080 Speaker 1: well we're looking at twelve percent right in taxes. So 302 00:16:12,120 --> 00:16:14,240 Speaker 1: I want you guys just to understand, as I mentioned, 303 00:16:14,240 --> 00:16:17,040 Speaker 1: the harder you work, the harder you the more taxes 304 00:16:17,040 --> 00:16:19,720 Speaker 1: you are going to pay. So at the top, what 305 00:16:19,840 --> 00:16:22,360 Speaker 1: you see under earn income, these are this is my 306 00:16:22,520 --> 00:16:25,560 Speaker 1: w two earners. This is my business owners right that 307 00:16:25,680 --> 00:16:30,040 Speaker 1: are that have LLCs, that has s corporations, partnerships. This 308 00:16:30,120 --> 00:16:33,120 Speaker 1: is your tax bracket. Okay, So it can be as 309 00:16:33,160 --> 00:16:35,320 Speaker 1: low as ten percent, and it can be as high 310 00:16:35,360 --> 00:16:39,640 Speaker 1: as thirty seven percent. What you have below is your 311 00:16:39,760 --> 00:16:44,080 Speaker 1: investment income. So your investment income can be as low 312 00:16:44,120 --> 00:16:47,600 Speaker 1: as zero percent, right, and then it can go as 313 00:16:47,640 --> 00:16:51,200 Speaker 1: high as twenty percent. I want you guys to realize. 314 00:16:51,240 --> 00:16:53,480 Speaker 1: Do you realize that no point is your earn income 315 00:16:53,560 --> 00:16:57,840 Speaker 1: not taxed at all? Do you see that it starts 316 00:16:57,880 --> 00:17:01,240 Speaker 1: out at ten percent, that's it, from zero to eleven, 317 00:17:01,480 --> 00:17:04,359 Speaker 1: like it's going to start out at ten percent. So 318 00:17:04,400 --> 00:17:07,280 Speaker 1: I want you guys to just really really understand, like 319 00:17:07,480 --> 00:17:10,800 Speaker 1: you know what this really means. And then I want 320 00:17:10,800 --> 00:17:13,159 Speaker 1: to highlight the corporate tax rate, because I know I 321 00:17:14,000 --> 00:17:16,879 Speaker 1: spoke a lot just about the you know, the corporate 322 00:17:16,960 --> 00:17:19,719 Speaker 1: tax rate and it being much lower. So somebody may, 323 00:17:19,800 --> 00:17:21,080 Speaker 1: you know, look at this and be like, Okay, well 324 00:17:21,080 --> 00:17:22,480 Speaker 1: I'm not going to be an LLC. I'm going to 325 00:17:22,520 --> 00:17:26,080 Speaker 1: be a corporation. But you have to just hold on. 326 00:17:26,200 --> 00:17:30,439 Speaker 1: Let's talk about corporations and how they're tax So corporations, 327 00:17:30,520 --> 00:17:34,160 Speaker 1: the business itself does pay twenty one percent in taxes, 328 00:17:34,680 --> 00:17:37,639 Speaker 1: so they do, they do pay twenty one percent in taxes. 329 00:17:37,720 --> 00:17:40,640 Speaker 1: But what happens is a corporation deals with what's called 330 00:17:40,720 --> 00:17:44,760 Speaker 1: double taxation. Right, So every person that invests in the 331 00:17:44,800 --> 00:17:50,200 Speaker 1: stop what happens they invest in this stop the company, 332 00:17:50,280 --> 00:17:54,640 Speaker 1: Let's just say they invest in Apple, Apple files their 333 00:17:54,640 --> 00:17:58,160 Speaker 1: corporate tax return and Apple pays taxes. Right, So Apple 334 00:17:58,200 --> 00:18:01,760 Speaker 1: pays taxes. Then what happens is they send you dividends. 335 00:18:01,760 --> 00:18:06,240 Speaker 1: And what happens when they send you a dibdend, you 336 00:18:06,280 --> 00:18:07,679 Speaker 1: got to pay taxes on it. 337 00:18:07,880 --> 00:18:14,520 Speaker 3: Unlucky reinvested, you can reinvest it, However, you have to 338 00:18:14,560 --> 00:18:17,359 Speaker 3: pay taxes on the dividends that they send you. 339 00:18:17,440 --> 00:18:19,960 Speaker 1: Right, they're going to send you your form. They're going 340 00:18:20,040 --> 00:18:24,040 Speaker 1: to send you have to file your the dividend income 341 00:18:24,119 --> 00:18:27,480 Speaker 1: that you receive from this business. So that's called double taxation. 342 00:18:27,640 --> 00:18:31,640 Speaker 1: So you as a shareholder, right, you have to pay taxes. 343 00:18:31,680 --> 00:18:34,280 Speaker 1: And then Apple had to pay taxes. So that's why 344 00:18:34,520 --> 00:18:38,280 Speaker 1: all the ultimately just forming a C corporation may not 345 00:18:38,320 --> 00:18:41,920 Speaker 1: be the best idea because now you're paying twenty one 346 00:18:41,960 --> 00:18:44,439 Speaker 1: percent on the corporate side. And now if it's just 347 00:18:44,520 --> 00:18:47,640 Speaker 1: you and the business, you are the shareholder. So now 348 00:18:47,760 --> 00:18:50,480 Speaker 1: that then goes over to you. So now you you 349 00:18:50,480 --> 00:18:53,679 Speaker 1: know you're looking at an additional twenty percent on the 350 00:18:53,720 --> 00:18:54,479 Speaker 1: dividend income. 351 00:18:54,880 --> 00:18:56,600 Speaker 5: Well, let's let's talk about that before we move on, 352 00:18:56,680 --> 00:18:58,560 Speaker 5: because that's a question a lot of people have. As 353 00:18:58,560 --> 00:19:02,679 Speaker 5: far as lcses corps and C corps. The difference is 354 00:19:03,080 --> 00:19:06,280 Speaker 5: and what is most beneficial as far as taxes. 355 00:19:06,640 --> 00:19:10,600 Speaker 1: Absolutely so my rule of thumb is if you are 356 00:19:10,880 --> 00:19:14,720 Speaker 1: making anywhere and this is profit, guys, if you are 357 00:19:14,800 --> 00:19:19,840 Speaker 1: profiting thirty five to forty thousand dollars or more I 358 00:19:19,880 --> 00:19:22,840 Speaker 1: mean sorry, or less, So thirty five to forty thousand 359 00:19:22,880 --> 00:19:26,960 Speaker 1: dollars or less, you should be an LLC. About again, 360 00:19:27,000 --> 00:19:28,919 Speaker 1: thirty five to forty thousand, I would let's just give 361 00:19:28,960 --> 00:19:31,159 Speaker 1: it a number. So let's just give it one number. 362 00:19:31,560 --> 00:19:34,320 Speaker 1: I would say, forty thousand dollars or less. You should 363 00:19:34,400 --> 00:19:39,000 Speaker 1: be an LLC. Forty thousand dollars to about four hundred 364 00:19:39,040 --> 00:19:41,520 Speaker 1: and fifty thousand dollars in the business, I would say 365 00:19:41,520 --> 00:19:45,160 Speaker 1: an escort. Anything above that the four hundred and fifty 366 00:19:45,160 --> 00:19:51,280 Speaker 1: thousand dollars. Now is time to consider being a C corporation, right, so, 367 00:19:51,600 --> 00:19:55,520 Speaker 1: and we'll talk about the reasons and why so with 368 00:19:55,680 --> 00:19:59,520 Speaker 1: an LLC. With an LLC, what happens is you are 369 00:19:59,560 --> 00:20:03,239 Speaker 1: the owner, Your profit is seen as your payroll. So 370 00:20:03,320 --> 00:20:07,280 Speaker 1: because your profit is considered your payroll, what happens is 371 00:20:07,320 --> 00:20:11,520 Speaker 1: that you have to pay Social Security tax on that 372 00:20:11,600 --> 00:20:14,520 Speaker 1: profit because they're looking at it as your payroll. Right, 373 00:20:14,560 --> 00:20:16,320 Speaker 1: So if they're looking at it as your payroll, they're like, 374 00:20:16,359 --> 00:20:18,480 Speaker 1: all right, well you have to pay Social Security tax 375 00:20:18,480 --> 00:20:21,480 Speaker 1: and Medicare tax. So you can have one person that 376 00:20:21,520 --> 00:20:24,680 Speaker 1: has making one hundred thousand dollars in this LLC. What 377 00:20:24,760 --> 00:20:26,960 Speaker 1: may what's going to happen is that you have to 378 00:20:27,000 --> 00:20:30,520 Speaker 1: pay self employment tax, which is fifteen point three percent. 379 00:20:31,119 --> 00:20:34,040 Speaker 1: So off the bat, you're paying fifteen thousand, three hundred 380 00:20:34,040 --> 00:20:37,000 Speaker 1: dollars a loan in self employment tax. I call it 381 00:20:37,000 --> 00:20:40,439 Speaker 1: the invisible tax. Everybody doesn't know they're paying tax, and 382 00:20:40,480 --> 00:20:42,760 Speaker 1: so like we'll show them their taxes and they're like, 383 00:20:42,800 --> 00:20:44,760 Speaker 1: oh my god, I never knew that I was paying 384 00:20:44,760 --> 00:20:49,639 Speaker 1: that tax. So it's a separate tax from income tax. 385 00:20:49,720 --> 00:20:51,359 Speaker 1: So then what happens is you have to pay that 386 00:20:51,400 --> 00:20:53,520 Speaker 1: self employment tax, which is made up of your Social 387 00:20:53,560 --> 00:20:56,919 Speaker 1: Security tax and Medicare tax. And then what happens is 388 00:20:57,200 --> 00:21:00,400 Speaker 1: you still have to pay your income taxes on that money. 389 00:21:00,880 --> 00:21:04,159 Speaker 1: So now what we do to reduce the amount of 390 00:21:04,200 --> 00:21:07,560 Speaker 1: money that we're paying in self employment taxes. Is we 391 00:21:07,640 --> 00:21:10,960 Speaker 1: will go ahead and we will start an S corporation. 392 00:21:11,080 --> 00:21:14,640 Speaker 1: So we'll convert our LLC over to an escort. Right, 393 00:21:14,920 --> 00:21:17,560 Speaker 1: So just keep in mind, guys, S corporation is not 394 00:21:17,640 --> 00:21:21,280 Speaker 1: an entity type. It is a tax election, which means 395 00:21:21,280 --> 00:21:23,840 Speaker 1: that if you're an LLC, you will need to fill 396 00:21:23,880 --> 00:21:26,000 Speaker 1: out Form twenty five p. Fifty three. And when you 397 00:21:26,040 --> 00:21:28,400 Speaker 1: fill out Form twenty five to fifty three, you would 398 00:21:28,440 --> 00:21:30,800 Speaker 1: then be able to send it into the IRS and 399 00:21:30,840 --> 00:21:33,439 Speaker 1: they'll acknowledge you and say, okay, we'll allow you to 400 00:21:33,440 --> 00:21:36,400 Speaker 1: be taxed as an S corporation. But what does that mean? 401 00:21:36,440 --> 00:21:39,960 Speaker 1: What are the requirements? The requirement is one, you have 402 00:21:40,040 --> 00:21:42,480 Speaker 1: to put yourself on salary. You have to pay yourself 403 00:21:42,520 --> 00:21:45,199 Speaker 1: a salary. And the other requirement is you have to 404 00:21:45,240 --> 00:21:49,200 Speaker 1: file your taxes every single year, regardless of how much 405 00:21:49,200 --> 00:21:52,520 Speaker 1: money you make. It's not an option that difference within 406 00:21:52,760 --> 00:21:55,800 Speaker 1: LLC and LLC. If you make four hundred dollars or less, 407 00:21:56,080 --> 00:21:59,040 Speaker 1: you don't have to file. That's fine with the ES 408 00:21:59,119 --> 00:22:02,360 Speaker 1: corpor doesn't matter. You have to file your taxes, okay. 409 00:22:02,880 --> 00:22:09,600 Speaker 1: So that is something that's really really important to understand now, corporations. 410 00:22:09,640 --> 00:22:15,640 Speaker 1: Corporations are great because corporations you're able to do. You're 411 00:22:15,640 --> 00:22:18,800 Speaker 1: able to have your corporate So I just talked about 412 00:22:18,800 --> 00:22:22,439 Speaker 1: the double taxation. But what some corporations will do, right 413 00:22:22,600 --> 00:22:24,680 Speaker 1: if you're if you're building, or you have any sort 414 00:22:24,720 --> 00:22:27,760 Speaker 1: of research and development, or any plans in place that 415 00:22:27,800 --> 00:22:31,800 Speaker 1: you that you intend to do. What corporations have the 416 00:22:31,880 --> 00:22:35,400 Speaker 1: ability to do is they're able to issue what's called 417 00:22:35,400 --> 00:22:38,600 Speaker 1: a plan and say, okay, well we are going we're 418 00:22:38,600 --> 00:22:42,080 Speaker 1: a technology company and we plan to I don't know, 419 00:22:42,119 --> 00:22:44,520 Speaker 1: invest in some AI and it's going to do all 420 00:22:44,560 --> 00:22:46,480 Speaker 1: these things in order to do that. I know, we 421 00:22:46,560 --> 00:22:50,320 Speaker 1: have a profit of two million dollars, but we need 422 00:22:50,359 --> 00:22:53,199 Speaker 1: to use a million dollars of that for this. What 423 00:22:53,400 --> 00:22:56,439 Speaker 1: happens is you are then able to draw up a 424 00:22:56,480 --> 00:22:59,480 Speaker 1: plan and show how you're going to allocate those funds. 425 00:22:59,720 --> 00:23:02,359 Speaker 1: And when you do that, then you'll be able to 426 00:23:02,560 --> 00:23:05,160 Speaker 1: basically back out that income. So now you would only 427 00:23:05,160 --> 00:23:07,840 Speaker 1: be paying taxes on a million dollars of it. Right, 428 00:23:07,880 --> 00:23:10,000 Speaker 1: So they're able to do that. They're also able to 429 00:23:10,040 --> 00:23:12,560 Speaker 1: give out stop options. So that's how the Amazon's the 430 00:23:12,640 --> 00:23:16,120 Speaker 1: general electorates the Googles. That's how they're able to save 431 00:23:16,200 --> 00:23:18,720 Speaker 1: so much in taxes because now they're giving out stop 432 00:23:18,720 --> 00:23:22,719 Speaker 1: options to their to their employees, right, which is a 433 00:23:22,760 --> 00:23:27,320 Speaker 1: tax benefit to them. So those are like when you 434 00:23:27,359 --> 00:23:29,560 Speaker 1: should be doing those things in terms of income. And 435 00:23:29,600 --> 00:23:31,359 Speaker 1: I did include like a little bit of strategies in 436 00:23:31,400 --> 00:23:34,320 Speaker 1: there as well, but yes, that's when you should be 437 00:23:34,960 --> 00:23:35,840 Speaker 1: kind of using those. 438 00:23:36,119 --> 00:23:38,560 Speaker 3: You know, when we were younger, man, we would go 439 00:23:38,600 --> 00:23:40,639 Speaker 3: out to eat, and this is kind of like one 440 00:23:40,640 --> 00:23:42,600 Speaker 3: of the benefits of being around an entrepreneur when you're 441 00:23:42,640 --> 00:23:46,120 Speaker 3: an employee working in the school district, and Rashall would 442 00:23:46,119 --> 00:23:46,880 Speaker 3: always ask. 443 00:23:47,040 --> 00:23:49,280 Speaker 2: Yeah, let me get the receipt, let me get the seat. 444 00:23:51,240 --> 00:23:53,040 Speaker 3: And I had no idea why he was taking their 445 00:23:53,080 --> 00:23:55,840 Speaker 3: receipts until I started to get educated on the process 446 00:23:55,880 --> 00:23:58,720 Speaker 3: and I'm like, oh, man, that's why he's thinking receipts. 447 00:23:58,480 --> 00:23:59,920 Speaker 1: That's why he wanted early talk. 448 00:24:00,040 --> 00:24:02,320 Speaker 3: I was like early twenties. It's like really like twenty 449 00:24:02,400 --> 00:24:05,359 Speaker 3: years ago at this point. And it goes to the 450 00:24:05,359 --> 00:24:07,159 Speaker 3: point where now you see a lot of people on 451 00:24:07,280 --> 00:24:11,400 Speaker 3: entrepreneurs they're in business or then I'll take care, I'm 452 00:24:11,400 --> 00:24:13,560 Speaker 3: gonna write this off. I'm gonna write that off. Can 453 00:24:13,600 --> 00:24:16,040 Speaker 3: we just get a breakdown on the things that actually 454 00:24:16,119 --> 00:24:19,080 Speaker 3: qualify as things that can be expensed. I remember being 455 00:24:19,080 --> 00:24:21,080 Speaker 3: a teacher and saying I'm a buy sneakers, and that's 456 00:24:21,119 --> 00:24:23,800 Speaker 3: part of my uniform code for I'm like, like, that's 457 00:24:23,840 --> 00:24:24,200 Speaker 3: not how. 458 00:24:24,960 --> 00:24:26,200 Speaker 1: You cannot do that. 459 00:24:26,359 --> 00:24:31,440 Speaker 2: Try this was a young this is exactly. This is 460 00:24:31,440 --> 00:24:34,600 Speaker 2: a younger me. I advocated myself that's fair. 461 00:24:34,680 --> 00:24:36,439 Speaker 5: But before you do, I just want to make this 462 00:24:36,440 --> 00:24:38,680 Speaker 5: point because a lot of people have questions. You can 463 00:24:38,800 --> 00:24:42,120 Speaker 5: if the LLC, you can always start as an LLC 464 00:24:42,320 --> 00:24:45,400 Speaker 5: and then transfer over to a C corp escorp. Because 465 00:24:45,440 --> 00:24:48,960 Speaker 5: that's something that's the common misconception. People think that like, oh, 466 00:24:49,040 --> 00:24:51,479 Speaker 5: you have to you like you have to start with 467 00:24:51,880 --> 00:24:53,960 Speaker 5: like a C corp or escort. Like, you can start 468 00:24:54,000 --> 00:24:56,440 Speaker 5: as an LLC, which is the easiest because you don't 469 00:24:56,480 --> 00:24:58,720 Speaker 5: have to pay yourself salary, you don't have to have 470 00:24:58,800 --> 00:25:00,480 Speaker 5: a board, you don't have have to have a lot 471 00:25:00,520 --> 00:25:03,680 Speaker 5: of other requirements that those other ones have. Right, But then, 472 00:25:03,720 --> 00:25:05,760 Speaker 5: like you said, once your once your business really starts 473 00:25:05,760 --> 00:25:10,800 Speaker 5: to boom, then you can always change the classification over right. 474 00:25:11,240 --> 00:25:15,080 Speaker 1: Absolutely, So I love ellcs because I think LLC's are well. 475 00:25:15,200 --> 00:25:18,080 Speaker 1: LLCs is what I call it. The flexible entity, like 476 00:25:18,119 --> 00:25:20,600 Speaker 1: you can start an LLC and then convert over to 477 00:25:20,680 --> 00:25:23,080 Speaker 1: an S corp, convert convert over to a C corp. 478 00:25:23,359 --> 00:25:25,960 Speaker 1: So I always recommend when you're starting a business to 479 00:25:26,160 --> 00:25:29,000 Speaker 1: start out as an LLC because now you can, you know, 480 00:25:29,160 --> 00:25:32,840 Speaker 1: change over to different entity types. Right, And that's another thing. 481 00:25:32,880 --> 00:25:35,199 Speaker 1: So I'm happy you bring that up for Shad. You 482 00:25:35,240 --> 00:25:37,159 Speaker 1: all have to understand that where you start is not 483 00:25:37,200 --> 00:25:39,560 Speaker 1: where you're going to finish. You have to be willing 484 00:25:39,640 --> 00:25:43,760 Speaker 1: to switch things up, change things up right in order 485 00:25:43,840 --> 00:25:45,760 Speaker 1: to save on taxes. So you can't be like, Okay, 486 00:25:45,800 --> 00:25:47,720 Speaker 1: I'm an LLC. I'm just going to remain an LLC. No, 487 00:25:48,200 --> 00:25:50,600 Speaker 1: you don't have to remain in LLC. You are going 488 00:25:50,680 --> 00:25:54,280 Speaker 1: to you know, you can then become an S corporation. 489 00:25:54,560 --> 00:25:57,719 Speaker 1: You can, you know, change your ownership, you can whatever 490 00:25:57,760 --> 00:26:00,600 Speaker 1: it is that you need to do to you know, 491 00:26:00,800 --> 00:26:04,239 Speaker 1: to uh fit the growth of your business. You have 492 00:26:04,359 --> 00:26:05,920 Speaker 1: to do it. We cannot stay stuck. 493 00:26:06,760 --> 00:26:09,240 Speaker 5: That was a great point, all right, Yeah, so let's 494 00:26:09,240 --> 00:26:11,720 Speaker 5: talk about these deductions if we can some of the 495 00:26:11,840 --> 00:26:13,680 Speaker 5: some of the deductions that people can take. 496 00:26:13,720 --> 00:26:15,640 Speaker 2: And obviously the Sneakers is not one of them. 497 00:26:15,920 --> 00:26:21,840 Speaker 1: Sneakers is not one of these. Come on, that is 498 00:26:21,920 --> 00:26:26,399 Speaker 1: not your uniform. It not a uniform. Okay, so let's 499 00:26:26,440 --> 00:26:28,960 Speaker 1: talk about first of all, let's get let's get Troy 500 00:26:29,080 --> 00:26:32,840 Speaker 1: sneakers out the way. Let's talk about how you can 501 00:26:33,000 --> 00:26:36,600 Speaker 1: make that as a business owner a deduction if you 502 00:26:36,640 --> 00:26:41,159 Speaker 1: put if you purchase a pair of sneakers and you 503 00:26:41,359 --> 00:26:45,400 Speaker 1: put your logo on them, then you can now write 504 00:26:45,400 --> 00:26:47,440 Speaker 1: them off like I've seen you guys with y y'all 505 00:26:47,440 --> 00:26:52,640 Speaker 1: sneakers before. That can now make it a tax deduction, right. 506 00:26:52,680 --> 00:26:57,199 Speaker 1: But you cannot just purchase sneakers, you know, when you 507 00:26:57,240 --> 00:26:59,480 Speaker 1: were an employee and just be like, oh, because I 508 00:26:59,520 --> 00:27:01,439 Speaker 1: went to put and I brought these sneakers, they are 509 00:27:01,440 --> 00:27:03,920 Speaker 1: now at tax deduction, right. And that also goes with clothes. 510 00:27:04,040 --> 00:27:05,520 Speaker 1: So a lot of people will say, well, how can 511 00:27:05,520 --> 00:27:08,160 Speaker 1: I write off this clothing? So you can write off, 512 00:27:08,359 --> 00:27:11,359 Speaker 1: you know, clothing that you purchase, however, and you have 513 00:27:11,440 --> 00:27:13,520 Speaker 1: to stit your logo in it. And it also can't 514 00:27:13,520 --> 00:27:16,080 Speaker 1: be excessive, like you can't say, oh, I'm gonna go 515 00:27:16,119 --> 00:27:18,760 Speaker 1: out and buy a Gucci shirt and then I'm gonna 516 00:27:18,800 --> 00:27:21,400 Speaker 1: like put my business on there, and then I'm gonna 517 00:27:21,440 --> 00:27:22,800 Speaker 1: be able to write it off, right, So it has 518 00:27:22,840 --> 00:27:25,719 Speaker 1: to be reasonable. You purchase a reasonable shirt you want to, 519 00:27:25,960 --> 00:27:27,960 Speaker 1: you know, put your logo on it, you can then 520 00:27:28,200 --> 00:27:31,160 Speaker 1: you know, write that off. So that's how that works, 521 00:27:31,920 --> 00:27:34,720 Speaker 1: all right. But let's talk about expenses, right, What does 522 00:27:34,720 --> 00:27:37,280 Speaker 1: it mean? Because I do get a lot of outlandish 523 00:27:37,359 --> 00:27:41,119 Speaker 1: requests and inquiries about what can be written off. And 524 00:27:41,240 --> 00:27:43,680 Speaker 1: keep in mind, guys, there's hundreds of things that can 525 00:27:43,720 --> 00:27:47,200 Speaker 1: be written off. This is like the number one question 526 00:27:47,560 --> 00:27:51,400 Speaker 1: that I get all the time. So I like literally 527 00:27:51,920 --> 00:27:56,400 Speaker 1: wrote a book about it, like there's hundreds of deductions 528 00:27:56,440 --> 00:27:59,960 Speaker 1: because I mean I wrote the book because there's literally 529 00:28:00,040 --> 00:28:02,040 Speaker 1: hundreds of the deductions that you guys can write off. 530 00:28:02,119 --> 00:28:02,280 Speaker 6: Right. 531 00:28:02,320 --> 00:28:06,240 Speaker 1: But let's talk about what classifies something as an expense. 532 00:28:06,280 --> 00:28:10,000 Speaker 1: According to the IRS, it has to be an ordinary 533 00:28:10,040 --> 00:28:15,200 Speaker 1: and necessary expense. Ordinary meaning ordinarily in your industry people 534 00:28:15,200 --> 00:28:18,719 Speaker 1: are spending money on it. Necessary meaning that it is 535 00:28:18,880 --> 00:28:22,800 Speaker 1: necessary for you to spend this money or encour this 536 00:28:22,960 --> 00:28:26,639 Speaker 1: expense in order for you to operate your business. Okay, 537 00:28:26,680 --> 00:28:29,520 Speaker 1: So just to get that out the way, and I 538 00:28:29,640 --> 00:28:32,080 Speaker 1: always say to people, when you want to start talking 539 00:28:32,119 --> 00:28:34,760 Speaker 1: about how outlandish the things are, right, think about if 540 00:28:34,760 --> 00:28:37,240 Speaker 1: you were sitting across from an IRS agent and you 541 00:28:37,320 --> 00:28:41,280 Speaker 1: had to explain to them like, yeah, I needed to 542 00:28:41,360 --> 00:28:44,160 Speaker 1: purchase this right in order to make this happen. Like 543 00:28:44,280 --> 00:28:47,520 Speaker 1: does that sound logical? Right? Because sometimes people will try 544 00:28:47,520 --> 00:28:49,680 Speaker 1: to take it to the moon and I'm like, yeah, no, 545 00:28:50,160 --> 00:28:53,680 Speaker 1: let's keep it, you know, let's keep it reasonable. That 546 00:28:53,840 --> 00:28:56,800 Speaker 1: is what the IRS is all about. Things being reasonable 547 00:28:57,320 --> 00:29:00,640 Speaker 1: and you being able to and you having your documentation. Okay, 548 00:29:01,040 --> 00:29:04,280 Speaker 1: you need documentation. So let's just talk about a few 549 00:29:05,560 --> 00:29:09,760 Speaker 1: very popular expenses. So your CPA services. That put me first, 550 00:29:09,880 --> 00:29:12,000 Speaker 1: just because I need you guys to understand that you 551 00:29:12,160 --> 00:29:15,360 Speaker 1: need a CPA and you need an accountant, and an 552 00:29:15,400 --> 00:29:17,520 Speaker 1: accountant is going to be able to guess you'll have 553 00:29:17,560 --> 00:29:20,040 Speaker 1: to pay your accountant, but it is a tax deduction 554 00:29:20,160 --> 00:29:22,560 Speaker 1: and then they should also be able to save you money, 555 00:29:22,680 --> 00:29:26,120 Speaker 1: so it is a win win. So any legal services. Education, 556 00:29:26,360 --> 00:29:29,800 Speaker 1: so you guys are going to conferences, you know, investing 557 00:29:29,840 --> 00:29:35,200 Speaker 1: in your education, purchasing books, you know, investing in mentorships, 558 00:29:35,200 --> 00:29:38,560 Speaker 1: like all of these things are tax deductible. Why because 559 00:29:38,600 --> 00:29:41,120 Speaker 1: it is a necessary expense in order for you to 560 00:29:41,160 --> 00:29:44,240 Speaker 1: develop in your business. And that's what I love about business, right, 561 00:29:44,320 --> 00:29:47,880 Speaker 1: Like we get to really invest in ourselves and it's 562 00:29:47,880 --> 00:29:50,760 Speaker 1: a tax deduction, so consultants meals. 563 00:29:52,480 --> 00:29:53,800 Speaker 5: So this and this is for business. This is for 564 00:29:53,840 --> 00:29:54,960 Speaker 5: business owners only. 565 00:29:54,840 --> 00:29:56,400 Speaker 1: Right, this business owners. 566 00:29:56,400 --> 00:30:00,160 Speaker 5: So so if for a business owner, if you we're 567 00:30:00,240 --> 00:30:02,520 Speaker 5: going to invest Fest, let's say, right, and you buy 568 00:30:02,560 --> 00:30:05,240 Speaker 5: a ticket to invest Fest, and then you know the 569 00:30:05,360 --> 00:30:08,280 Speaker 5: travel of course you gotta fly and get a hotel, 570 00:30:08,680 --> 00:30:09,960 Speaker 5: so you can you can deduct that. 571 00:30:10,640 --> 00:30:15,200 Speaker 1: Absolutely, you can deduct the ticket, purchase the flight, the hotel, 572 00:30:15,720 --> 00:30:19,920 Speaker 1: the meals while you're there, the transportation get into and from. 573 00:30:19,520 --> 00:30:23,400 Speaker 5: Absolutely, because because it would be for the betterment of 574 00:30:23,440 --> 00:30:27,160 Speaker 5: your business. You're there and you're promoting your business, you're marketing, 575 00:30:27,240 --> 00:30:31,880 Speaker 5: you're talking to different people, so you're you're right, that's why. 576 00:30:32,560 --> 00:30:34,160 Speaker 1: And the only thing you need to do is you 577 00:30:34,200 --> 00:30:37,600 Speaker 1: need to keep confirmation that you purchase your ticket, obviously, 578 00:30:37,960 --> 00:30:39,520 Speaker 1: and a good thing about all of these things is 579 00:30:39,520 --> 00:30:42,760 Speaker 1: they're digital, right, so you know you keep that, you 580 00:30:42,880 --> 00:30:46,440 Speaker 1: keep your hotel record and obviously all of your receipts, 581 00:30:46,520 --> 00:30:52,200 Speaker 1: and it is a text deduction. Okay, reason you haven't 582 00:30:53,640 --> 00:30:56,120 Speaker 1: especially played yourself. You double played. 583 00:30:55,840 --> 00:31:02,360 Speaker 5: Yourself, all right, So consultants, you said, consultants. 584 00:31:02,200 --> 00:31:06,920 Speaker 1: Yep, consultants meals travel, so business travel, though, I want 585 00:31:06,960 --> 00:31:08,000 Speaker 1: to make me talk about. 586 00:31:08,080 --> 00:31:12,080 Speaker 5: Let's talk about the meals. Okay, there's some that's you 587 00:31:12,160 --> 00:31:13,840 Speaker 5: gotta let's explain that. 588 00:31:14,320 --> 00:31:19,960 Speaker 1: Let's explain meals. Okay, guys, meals. Meals. You can write 589 00:31:19,960 --> 00:31:23,080 Speaker 1: off fifty percent. Here's the idea. If you are having 590 00:31:23,080 --> 00:31:26,320 Speaker 1: a meeting with a client, the IRS says, hey, you 591 00:31:26,360 --> 00:31:29,280 Speaker 1: can write off and no way are we paying for 592 00:31:29,360 --> 00:31:33,080 Speaker 1: your meals? Right, but you can write all fifty percent 593 00:31:33,120 --> 00:31:36,600 Speaker 1: of it because the idea is that you are having 594 00:31:37,440 --> 00:31:41,400 Speaker 1: you are having dinner with clients. And then if you 595 00:31:41,400 --> 00:31:45,240 Speaker 1: are having dinner with clients, then you know their portion 596 00:31:45,520 --> 00:31:49,480 Speaker 1: is deductible, yours is not. So that's why you can 597 00:31:49,520 --> 00:31:52,400 Speaker 1: write all fifty percent of your meal. So fifty percent 598 00:31:52,440 --> 00:31:55,080 Speaker 1: of your meals can be deducted. I want you all 599 00:31:55,920 --> 00:31:58,959 Speaker 1: to understand that this line item is and thank you 600 00:31:58,960 --> 00:32:00,680 Speaker 1: for shop for making me go back to this, because 601 00:32:00,760 --> 00:32:05,720 Speaker 1: this is one of the highest U audit line items. 602 00:32:05,960 --> 00:32:08,240 Speaker 1: And the reason why is because people are on like 603 00:32:08,280 --> 00:32:10,400 Speaker 1: for shot, like oh let me get that receipt You 604 00:32:10,560 --> 00:32:14,360 Speaker 1: have to keep your receipts because the government is like, okay, 605 00:32:14,400 --> 00:32:16,840 Speaker 1: well we know I'm going to tell you it is 606 00:32:17,400 --> 00:32:20,760 Speaker 1: the highest audit line items on a business owner's tax 607 00:32:20,800 --> 00:32:26,400 Speaker 1: return is meals, travel, and vehicle Okay, And the reason 608 00:32:26,440 --> 00:32:31,480 Speaker 1: why is because you need extensive documentation to support these things. 609 00:32:31,480 --> 00:32:33,560 Speaker 1: And when I say extensive, I mean that it's a 610 00:32:33,600 --> 00:32:36,719 Speaker 1: lot of small transactions right that equal off into this 611 00:32:36,800 --> 00:32:39,840 Speaker 1: big transaction. So for your meals, you need to hold 612 00:32:39,920 --> 00:32:40,960 Speaker 1: on to your receipts. 613 00:32:41,360 --> 00:32:43,560 Speaker 5: So for the receive things though, because most people are 614 00:32:43,600 --> 00:32:46,440 Speaker 5: not going to carry their receipts. So what's the best 615 00:32:46,440 --> 00:32:48,800 Speaker 5: option outside of that? Is it to use a credit card, 616 00:32:48,840 --> 00:32:52,240 Speaker 5: a business credit card where it can track your transactions. 617 00:32:51,960 --> 00:32:52,920 Speaker 2: Or or is it an app? 618 00:32:52,960 --> 00:32:55,200 Speaker 3: I know sometimes people are using app that takes a 619 00:32:55,200 --> 00:32:57,080 Speaker 3: picture to seat and now it's saved this from digitally. 620 00:32:57,440 --> 00:32:59,720 Speaker 1: Absolutely, so it's both. So let's just talk about when 621 00:32:59,760 --> 00:33:02,480 Speaker 1: you go out in the receipt and what it should have. Right, 622 00:33:02,520 --> 00:33:05,680 Speaker 1: if you have a meal, the receipt that you have, 623 00:33:06,040 --> 00:33:07,760 Speaker 1: So let's talk about the receipt and then let's talk 624 00:33:07,760 --> 00:33:09,960 Speaker 1: about how to actually hold on to the receipt and 625 00:33:10,000 --> 00:33:13,160 Speaker 1: what you need to do. So for the receipt, right, 626 00:33:13,160 --> 00:33:17,560 Speaker 1: the receipt needs to have the date, the amount, who 627 00:33:17,680 --> 00:33:21,480 Speaker 1: you went to dinner with or lunch with or whoever, 628 00:33:21,680 --> 00:33:23,440 Speaker 1: like who was the like who did you go with? 629 00:33:23,840 --> 00:33:27,200 Speaker 1: What did you guys discuss? Right, so you need to 630 00:33:27,240 --> 00:33:29,400 Speaker 1: have all of these things written down, like you need 631 00:33:29,440 --> 00:33:32,160 Speaker 1: to know all of these things. And what I do is, 632 00:33:32,360 --> 00:33:34,840 Speaker 1: when I get the receipt, I'll say, Okay, I went 633 00:33:34,880 --> 00:33:37,400 Speaker 1: out with Sean and Troy. You know this is what 634 00:33:37,440 --> 00:33:40,920 Speaker 1: we you know, talked about, like this is what you know, 635 00:33:41,000 --> 00:33:45,640 Speaker 1: like we were meeting to review taxes. And then you 636 00:33:45,680 --> 00:33:49,240 Speaker 1: know then out well, all the date, the amount, and 637 00:33:49,360 --> 00:33:53,160 Speaker 1: the place is already on the It's on the receipt, right, 638 00:33:53,160 --> 00:33:54,840 Speaker 1: so you just need to identify, like what was your 639 00:33:54,880 --> 00:33:57,239 Speaker 1: business reason for being there? That's the only thing that 640 00:33:57,240 --> 00:33:59,360 Speaker 1: the IRS wants to know, right, what was your business 641 00:33:59,400 --> 00:34:02,440 Speaker 1: reason for being there? So then from there, Rasha to 642 00:34:02,480 --> 00:34:06,160 Speaker 1: your point, you have to hold onto those receipts, right, 643 00:34:06,200 --> 00:34:08,400 Speaker 1: So you have to hold onto those receipts. But not 644 00:34:08,520 --> 00:34:10,920 Speaker 1: everyone is going to be able to hold onto a 645 00:34:10,920 --> 00:34:14,240 Speaker 1: physical receipt. I'm one of those people. Receipts they crumble, 646 00:34:14,320 --> 00:34:16,319 Speaker 1: they fade, they're all over the place. So what I 647 00:34:16,400 --> 00:34:18,960 Speaker 1: do is I take a photo of them. I'll take 648 00:34:19,000 --> 00:34:20,799 Speaker 1: a photo of them on my phone and then what 649 00:34:20,880 --> 00:34:24,440 Speaker 1: I do is I and my account and software, so 650 00:34:24,440 --> 00:34:27,240 Speaker 1: I use quick Books. So quick Books has a feature 651 00:34:27,239 --> 00:34:29,360 Speaker 1: where it allows you to upload the receipt and attach 652 00:34:29,400 --> 00:34:33,440 Speaker 1: it to the transaction. So that makes it really helpful 653 00:34:33,520 --> 00:34:35,600 Speaker 1: to do that. Or if you're a person that you know, 654 00:34:35,800 --> 00:34:37,920 Speaker 1: let's say you want to upload into your Google drive 655 00:34:38,160 --> 00:34:40,560 Speaker 1: or and you know what's so crazy, Troy, you gave 656 00:34:40,640 --> 00:34:43,560 Speaker 1: me that idea one year when you were like, I 657 00:34:43,640 --> 00:34:45,880 Speaker 1: was asking you for a receipt for something and you 658 00:34:45,920 --> 00:34:47,680 Speaker 1: were like, oh, let me just go back in my 659 00:34:47,800 --> 00:34:51,120 Speaker 1: photos and I could just look in my photos because 660 00:34:51,120 --> 00:34:53,680 Speaker 1: it'll match to D And so now I give that 661 00:34:53,680 --> 00:34:54,920 Speaker 1: that strategy out to everybody. 662 00:34:54,920 --> 00:34:56,000 Speaker 2: So thank you trusting me. 663 00:34:57,440 --> 00:35:01,719 Speaker 1: I thank you because a lot of times, if you, 664 00:35:01,840 --> 00:35:04,360 Speaker 1: let's say you you know, you'll know when the transaction happens. 665 00:35:04,400 --> 00:35:06,439 Speaker 1: So if you put the date in the search bar 666 00:35:06,480 --> 00:35:08,120 Speaker 1: of your phone, you'll be able to pull it up. 667 00:35:08,120 --> 00:35:10,239 Speaker 1: You'll know exactly who you were with while you were there. 668 00:35:10,480 --> 00:35:12,920 Speaker 1: You know, you should have a photo in your phone 669 00:35:12,960 --> 00:35:15,040 Speaker 1: of the of the receipt. I wouldn't say keep all 670 00:35:15,120 --> 00:35:17,680 Speaker 1: don't keep the photos there, right, but originally take the 671 00:35:17,719 --> 00:35:20,040 Speaker 1: photo on your phone and then you know, attach it 672 00:35:20,080 --> 00:35:22,720 Speaker 1: to quick bolts or upload it into Google drive, like whatever, 673 00:35:22,920 --> 00:35:26,200 Speaker 1: whatever your process is, figure out the process and stick 674 00:35:26,280 --> 00:35:26,600 Speaker 1: to it. 675 00:35:26,920 --> 00:35:30,200 Speaker 3: Yeah, I would just just add to that what you're 676 00:35:30,200 --> 00:35:34,000 Speaker 3: saying is one hundred percent factual. Having documentation is super important. 677 00:35:34,000 --> 00:35:35,879 Speaker 3: The last thing you want to see at the end 678 00:35:35,880 --> 00:35:38,279 Speaker 3: of the year, especially if you're a business owner. It's 679 00:35:38,520 --> 00:35:41,480 Speaker 3: uncategorized transactions. 680 00:35:42,360 --> 00:35:42,839 Speaker 2: It is. 681 00:35:43,600 --> 00:35:46,279 Speaker 3: It's the most tedious thing you ever have to look at. 682 00:35:46,600 --> 00:35:48,279 Speaker 3: You don't want to do it. So the best thing 683 00:35:48,280 --> 00:35:50,319 Speaker 3: to do is make sure just document it. When when 684 00:35:50,360 --> 00:35:52,839 Speaker 3: you're doing something, document it, label it. When you send 685 00:35:52,880 --> 00:35:55,120 Speaker 3: the money, just label it. It's going to say yourself 686 00:35:55,239 --> 00:35:57,759 Speaker 3: a lot of time and energy and hassle. So just 687 00:35:57,800 --> 00:35:59,000 Speaker 3: document the process. 688 00:35:58,760 --> 00:36:04,360 Speaker 1: Speaking from experience, you know, you know, you know, and 689 00:36:04,440 --> 00:36:06,799 Speaker 1: then try to do it on a more frequent basis. 690 00:36:06,840 --> 00:36:10,640 Speaker 1: Like now we're like sending over those uncategorized transactions over 691 00:36:10,680 --> 00:36:13,400 Speaker 1: to you guys, like every two weeks, every two to 692 00:36:13,480 --> 00:36:15,560 Speaker 1: three weeks. I know. Try. I'm so sorry, but it 693 00:36:15,560 --> 00:36:18,000 Speaker 1: makes the part, It makes it easy about the taxes later. 694 00:36:18,560 --> 00:36:22,000 Speaker 2: I appreciate you, no problem. 695 00:36:22,160 --> 00:36:25,399 Speaker 1: All right, So let's talk about some deductions. Right, Let's 696 00:36:25,400 --> 00:36:27,759 Speaker 1: talk about some other deductions. So we're clear on that right. 697 00:36:28,160 --> 00:36:31,400 Speaker 1: If it is deductive, I mean, if it is ordinary 698 00:36:31,480 --> 00:36:34,240 Speaker 1: or necessary, you can expense it as a business owner. 699 00:36:35,000 --> 00:36:37,319 Speaker 1: All right, So now let's talk about. What I want 700 00:36:37,320 --> 00:36:42,040 Speaker 1: to talk about is the shifting of expenses from your 701 00:36:42,040 --> 00:36:45,640 Speaker 1: personal over into your business. And this income ship, I mean, 702 00:36:45,680 --> 00:36:48,600 Speaker 1: this extensive thing really is just saying, hey, these are 703 00:36:48,640 --> 00:36:51,839 Speaker 1: expenses that you're already utilizing in your business. So if 704 00:36:51,840 --> 00:36:55,279 Speaker 1: there's expenses that you're already utilizing in your business, how 705 00:36:55,320 --> 00:36:58,560 Speaker 1: about we, you know, switch those like over to your 706 00:36:58,600 --> 00:37:02,080 Speaker 1: business because you're utilizing them. So let's talk about the infamous. 707 00:37:02,160 --> 00:37:04,640 Speaker 1: Let's take it back real quick. Let's talk about vehicles. 708 00:37:04,719 --> 00:37:10,560 Speaker 1: Let's talk vehicles. Let's take it back and let's start 709 00:37:10,600 --> 00:37:14,520 Speaker 1: out there. So with a vehicle, if you are leasing 710 00:37:14,560 --> 00:37:17,040 Speaker 1: your vehicle, if you are financing your vehicle, there's still 711 00:37:17,040 --> 00:37:20,520 Speaker 1: an opportunity for you to take a tax deduction. So 712 00:37:20,560 --> 00:37:22,799 Speaker 1: if you're leasing the vehicle, and guys, keep in mind, 713 00:37:22,800 --> 00:37:25,000 Speaker 1: because I get this question all the time. In order 714 00:37:25,000 --> 00:37:26,799 Speaker 1: for me to write off my vehicle, do I have 715 00:37:26,880 --> 00:37:30,400 Speaker 1: to own it? The irs does not care who owns 716 00:37:30,400 --> 00:37:33,800 Speaker 1: your vehicle. They don't care if it's you or the business. 717 00:37:33,800 --> 00:37:37,640 Speaker 1: What they care about is your business use of the vehicle. Okay. 718 00:37:38,120 --> 00:37:41,319 Speaker 1: So if you have your personal vehicle and you are 719 00:37:41,400 --> 00:37:45,200 Speaker 1: utilizing it for business, you can still take the tax deduction. Okay. 720 00:37:45,239 --> 00:37:47,560 Speaker 1: So if you're leasing the vehicle and you utilize the 721 00:37:47,640 --> 00:37:50,840 Speaker 1: vehicle fifty percent of you know, fifty percent of the 722 00:37:50,880 --> 00:37:52,880 Speaker 1: time for business, you can take fifty percent of the 723 00:37:52,960 --> 00:37:57,040 Speaker 1: lease payments, fuel repairs, registration, you can take all of 724 00:37:57,080 --> 00:38:00,279 Speaker 1: those expenses up to fifty percent. Right. So if your 725 00:38:00,400 --> 00:38:03,080 Speaker 1: finance and the vehicle, then we have to do what's 726 00:38:03,120 --> 00:38:06,239 Speaker 1: called depreciation because now that's an asset. You own it. 727 00:38:06,480 --> 00:38:08,719 Speaker 1: You're not leasing it in renting it, right, so you're 728 00:38:08,760 --> 00:38:12,359 Speaker 1: owning it, so you have to do what's called depreciation. Depreciation. 729 00:38:12,560 --> 00:38:17,120 Speaker 1: All depreciation is is the process of being able to 730 00:38:17,160 --> 00:38:20,480 Speaker 1: deduct the value of your asset. That's all it is 731 00:38:20,520 --> 00:38:23,640 Speaker 1: over time. And the IRS says what that time is. 732 00:38:23,760 --> 00:38:26,400 Speaker 1: They determine what the time is, so they say, okay, 733 00:38:26,440 --> 00:38:28,919 Speaker 1: well a home is I mean not a home. Sorry. 734 00:38:28,960 --> 00:38:32,640 Speaker 1: They'll say a vehicle can be depreciated over five years. 735 00:38:33,400 --> 00:38:36,640 Speaker 1: They'll say a cell phone can be depreciated over five years. 736 00:38:37,120 --> 00:38:39,120 Speaker 1: A home can be depreciated over twenty seven and a 737 00:38:39,160 --> 00:38:42,400 Speaker 1: half years. So the IRS gives you what you know 738 00:38:42,760 --> 00:38:45,920 Speaker 1: what that looks like. So if there is no guesswork, 739 00:38:46,160 --> 00:38:48,680 Speaker 1: So what happens is if you do have a vehicle 740 00:38:48,800 --> 00:38:52,000 Speaker 1: that you're financing, and you utilize it fifty percent, then 741 00:38:52,040 --> 00:38:55,160 Speaker 1: you will your depreciation. So let's just say you had 742 00:38:55,160 --> 00:38:58,120 Speaker 1: a vehicle fifty thousand dollars. What will happen is that 743 00:38:58,200 --> 00:39:01,600 Speaker 1: you'll be able to depreciate fifty percent of it. Right, 744 00:39:01,680 --> 00:39:05,080 Speaker 1: So let's say the the tax deduction should have been 745 00:39:05,440 --> 00:39:08,959 Speaker 1: ten thousand dollars because you divided by five, what would 746 00:39:08,960 --> 00:39:11,000 Speaker 1: have What would happen is that you would be able 747 00:39:11,040 --> 00:39:14,120 Speaker 1: to take a tax deduction of five thousand dollars in 748 00:39:14,200 --> 00:39:18,640 Speaker 1: depreciation expense on top of your fuel and the maintenance 749 00:39:18,719 --> 00:39:21,879 Speaker 1: and all those things. Right, that wouldn't change, But it's 750 00:39:21,920 --> 00:39:24,960 Speaker 1: just about how you treat that actual payment if it's 751 00:39:25,120 --> 00:39:28,400 Speaker 1: least versus if it is finance. Now let's just go 752 00:39:28,520 --> 00:39:31,719 Speaker 1: back real quick. Let's take it back twenty nineteen. We 753 00:39:31,840 --> 00:39:36,120 Speaker 1: talked about six thousand pound roll and at that moment 754 00:39:36,320 --> 00:39:39,640 Speaker 1: I broke down how if your vehicle is over six 755 00:39:39,719 --> 00:39:42,200 Speaker 1: thousand pounds that you would be able to write off 756 00:39:42,239 --> 00:39:45,160 Speaker 1: one hundred percent of it. What happens now is you 757 00:39:45,200 --> 00:39:47,120 Speaker 1: only can write a sixty percent of it, so let's 758 00:39:47,239 --> 00:39:50,120 Speaker 1: just talk about why and all of those things. That's 759 00:39:50,160 --> 00:39:53,200 Speaker 1: gorl So in twenty nineteen we were still in the 760 00:39:53,200 --> 00:39:57,319 Speaker 1: window of being able to write off the being able 761 00:39:57,360 --> 00:40:00,279 Speaker 1: to write off one hundred percent. So the tax and 762 00:40:00,360 --> 00:40:04,120 Speaker 1: jobs at implements it what's called bonus suit Erners. 763 00:40:04,120 --> 00:40:04,520 Speaker 2: What's up? 764 00:40:04,600 --> 00:40:07,080 Speaker 3: You ever walk into a small business and everything just 765 00:40:07,239 --> 00:40:10,400 Speaker 3: works like the checkout is fast, the receipts are digital, 766 00:40:10,920 --> 00:40:13,920 Speaker 3: tipping is a breeze, and you're out the door before 767 00:40:13,920 --> 00:40:18,080 Speaker 3: the line even builds. Odds are they're using Square. We 768 00:40:18,239 --> 00:40:20,759 Speaker 3: love supporting businesses that run on Square because it just 769 00:40:20,800 --> 00:40:24,040 Speaker 3: feels seamless. Whether it's a local coffee shop, a vendor 770 00:40:24,080 --> 00:40:26,359 Speaker 3: at a pop up market, or even one of our 771 00:40:26,400 --> 00:40:30,080 Speaker 3: merch partners, Square makes it easy for them to take payments, 772 00:40:30,280 --> 00:40:33,960 Speaker 3: manage inventory, and run their business with confidence, all from 773 00:40:34,080 --> 00:40:37,480 Speaker 3: one simple system. If you're a business owner or even 774 00:40:37,600 --> 00:40:41,120 Speaker 3: just thinking about launching something soon, Square is hands down 775 00:40:41,160 --> 00:40:43,480 Speaker 3: one of the best tools out there to help you start, 776 00:40:43,880 --> 00:40:47,399 Speaker 3: run and grow. It's not just about payments, it's about 777 00:40:47,440 --> 00:40:49,880 Speaker 3: giving you time back so you can focus on what 778 00:40:50,080 --> 00:40:53,720 Speaker 3: matters most Ready to see how Square can transform your business. 779 00:40:54,000 --> 00:40:58,640 Speaker 3: Visit Square dot com backslash go backslash eyl to learn 780 00:40:58,680 --> 00:41:03,839 Speaker 3: more that Square dot backslash go backslash eyl. Don't wait, 781 00:41:04,160 --> 00:41:07,000 Speaker 3: don't hesitate. Let's Square handle the back end so you 782 00:41:07,000 --> 00:41:13,319 Speaker 3: can keep pushing your vision forward. This episode is brought 783 00:41:13,360 --> 00:41:15,279 Speaker 3: to you by P and C Bank. A lot of 784 00:41:15,280 --> 00:41:18,879 Speaker 3: people think podcasts about work are boring, and sure they 785 00:41:18,920 --> 00:41:22,759 Speaker 3: definitely can be, but understanding a professionals routine shows us 786 00:41:22,840 --> 00:41:27,359 Speaker 3: how they achieve their success little by little, day after day. 787 00:41:27,440 --> 00:41:29,080 Speaker 2: It's like banking with P and C Bank. 788 00:41:29,560 --> 00:41:32,360 Speaker 3: It might seem boring to save, plan and make calculated 789 00:41:32,400 --> 00:41:35,480 Speaker 3: decisions with your bank, but keeping your money boring is 790 00:41:35,520 --> 00:41:38,840 Speaker 3: what helps you live a more happily fulfilled life. P 791 00:41:38,960 --> 00:41:43,800 Speaker 3: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly 792 00:41:43,840 --> 00:41:46,480 Speaker 3: Boring since eighteen sixty five is a service mark of 793 00:41:46,520 --> 00:41:49,760 Speaker 3: the PNC Financial Service Group, Inc. P and C Bank 794 00:41:50,160 --> 00:41:52,400 Speaker 3: National Association Member FDIC. 795 00:41:54,160 --> 00:41:57,759 Speaker 7: An illegal alien from Guatemala charged with raping a child 796 00:41:57,840 --> 00:42:01,640 Speaker 7: in Massachusetts in MS thirteen. Gang member from Al Salvador 797 00:42:01,880 --> 00:42:06,000 Speaker 7: accused of murdering a Texas man of Venezuelan charged with 798 00:42:06,080 --> 00:42:09,960 Speaker 7: filming and selling child pornography in Michigan. These are just 799 00:42:10,080 --> 00:42:13,840 Speaker 7: some of the heinous migrant criminals caught because of President 800 00:42:13,880 --> 00:42:17,399 Speaker 7: Donald J. Trump's leadership. I'm Christy Noman, the United States 801 00:42:17,480 --> 00:42:22,280 Speaker 7: Secretary of Homeland Security. Under President Trump, attempted illegal border 802 00:42:22,280 --> 00:42:25,839 Speaker 7: crossings are at the lowest levels ever recorded, and over 803 00:42:25,920 --> 00:42:29,120 Speaker 7: one hundred thousand illegal aliens have been arrested. If you 804 00:42:29,200 --> 00:42:33,040 Speaker 7: are here illegally, your next you will be fine nearly 805 00:42:33,160 --> 00:42:37,160 Speaker 7: one thousand dollars a day, imprisoned and deported, you will 806 00:42:37,200 --> 00:42:40,839 Speaker 7: never return. But if you register using our CBP home 807 00:42:40,880 --> 00:42:44,280 Speaker 7: app and leave now, you could be allowed to return legally. 808 00:42:44,640 --> 00:42:45,439 Speaker 7: Do what's right. 809 00:42:46,000 --> 00:42:46,840 Speaker 1: Leave now. 810 00:42:47,200 --> 00:42:52,000 Speaker 7: Under President Trump, America's laws, border and families will be protected. 811 00:42:52,080 --> 00:42:54,080 Speaker 8: Sponsored by the United States Department of Homeland. 812 00:42:53,840 --> 00:42:59,400 Speaker 1: Security Appreciation Bonus Appreciation start it on November twenty seventh 813 00:42:59,400 --> 00:43:02,480 Speaker 1: and twenty seven andeen, and basically it's going to go 814 00:43:02,520 --> 00:43:05,759 Speaker 1: all the way into twenty twenty seven. However, as of 815 00:43:05,800 --> 00:43:08,640 Speaker 1: twenty twenty two, that was the last year you'll be 816 00:43:08,640 --> 00:43:11,080 Speaker 1: able to take one hundred percent, right, So that's the 817 00:43:11,160 --> 00:43:12,920 Speaker 1: last year you'll be able to take one hundred percent. 818 00:43:14,080 --> 00:43:16,839 Speaker 1: Every single year after that, it's going to decrease by 819 00:43:16,880 --> 00:43:20,399 Speaker 1: twenty percent until it phases out. So what that means 820 00:43:20,480 --> 00:43:22,960 Speaker 1: is in twenty twenty three you only can take eighty percent, 821 00:43:23,200 --> 00:43:25,640 Speaker 1: and twenty twenty four you only can take sixty percent. 822 00:43:25,840 --> 00:43:28,359 Speaker 1: So if any of you are new to this conversation 823 00:43:28,480 --> 00:43:32,319 Speaker 1: about bonus appreciation and writing the asset off, and you 824 00:43:32,320 --> 00:43:34,680 Speaker 1: know all of those things, and what happens is, you 825 00:43:34,680 --> 00:43:38,400 Speaker 1: know you you miss you missed the train, but you 826 00:43:39,360 --> 00:43:42,120 Speaker 1: didn't totally miss it, right, you you're still here. You 827 00:43:42,120 --> 00:43:44,160 Speaker 1: can take sixty percent, you just can't take one hundred 828 00:43:44,640 --> 00:43:47,600 Speaker 1: and so next year it'll be forty percent, twenty percent 829 00:43:47,680 --> 00:43:51,160 Speaker 1: until it completely phases out in twenty twenty seven. 830 00:43:50,160 --> 00:43:53,440 Speaker 5: So so all right, So for six thousand pounds, if 831 00:43:53,440 --> 00:43:55,680 Speaker 5: you buy a car a SUV, and it was started 832 00:43:55,680 --> 00:44:00,719 Speaker 5: by George Bush, I think originally to give it incentives 833 00:44:00,760 --> 00:44:05,160 Speaker 5: to the gas companies because SUVs obviously used more gas, 834 00:44:05,160 --> 00:44:07,960 Speaker 5: so he wanted to incentivize people to buy SUVs. So 835 00:44:08,000 --> 00:44:11,479 Speaker 5: they started to rule the six thousand pounds rule. Right, So, okay, 836 00:44:11,520 --> 00:44:13,520 Speaker 5: if you buy a car that's over six thousand pounds, 837 00:44:13,600 --> 00:44:19,160 Speaker 5: let's say a g wagon, right, it's over six thousand pounds. Yes, 838 00:44:19,560 --> 00:44:21,919 Speaker 5: And let's say you buy it for two hundred thousand dollars, right, 839 00:44:22,320 --> 00:44:24,520 Speaker 5: So now you buy a two hundred thousand dollars g 840 00:44:24,640 --> 00:44:30,120 Speaker 5: Wagon for It's so currently in twenty twenty four is 841 00:44:30,520 --> 00:44:33,360 Speaker 5: sixty percent, and then in twenty twenty five is forty percent. 842 00:44:33,680 --> 00:44:36,160 Speaker 5: So what is that? What does that actually mean? Because 843 00:44:36,400 --> 00:44:39,320 Speaker 5: most people aren't going to pay two hundred thousand dollars cash, 844 00:44:39,560 --> 00:44:41,879 Speaker 5: but let's say hypothetically they were. Let's say hypothetically they 845 00:44:41,880 --> 00:44:44,759 Speaker 5: paid twenty thousand dollars gas, and let's do what most 846 00:44:44,760 --> 00:44:49,040 Speaker 5: people would do. They would probably finance the car, right, 847 00:44:49,600 --> 00:44:52,680 Speaker 5: or at least the car finance. So let's kind of explain, like, 848 00:44:52,760 --> 00:44:56,080 Speaker 5: how what is sixty percent of your car payments? What 849 00:44:56,600 --> 00:44:57,160 Speaker 5: is it? 850 00:44:57,160 --> 00:45:00,520 Speaker 1: It's sixty percent of the value because it is an asset. 851 00:45:01,360 --> 00:45:04,080 Speaker 1: So because it is an asset, what happens is that 852 00:45:04,200 --> 00:45:09,400 Speaker 1: you are able to deduct the value of the asset. 853 00:45:09,920 --> 00:45:14,359 Speaker 1: So with so to your point, it's if you finance it, 854 00:45:14,360 --> 00:45:16,840 Speaker 1: it is not the payment, it is the asset value. 855 00:45:16,880 --> 00:45:19,360 Speaker 1: So if let's say in your case where you just mentioned, 856 00:45:19,360 --> 00:45:22,719 Speaker 1: someone purchased a g Wagon it's two hundred thousand dollars 857 00:45:22,920 --> 00:45:25,160 Speaker 1: in twenty twenty four, they'll be able to take one 858 00:45:25,200 --> 00:45:29,360 Speaker 1: hundred and twenty thousand dollars tax deduction right against their income. 859 00:45:29,400 --> 00:45:31,200 Speaker 1: It is now going to it's a line item. They 860 00:45:31,239 --> 00:45:34,520 Speaker 1: can take that deduction. Now, what happens is the remaining 861 00:45:34,800 --> 00:45:38,520 Speaker 1: what is that the remaining eighty thousand dollars, they'll depreciate 862 00:45:38,600 --> 00:45:41,359 Speaker 1: it over the remaining four years. Right, So now that 863 00:45:41,400 --> 00:45:43,719 Speaker 1: would just be a tax deduction that they'll receive over 864 00:45:43,760 --> 00:45:46,960 Speaker 1: the remaining four years. So twenty thousand dollars every single year. 865 00:45:48,000 --> 00:45:50,040 Speaker 3: Now, that's if you if you finance it, right, But 866 00:45:50,440 --> 00:45:53,919 Speaker 3: also if you finance it, leasing is also an option too, 867 00:45:53,960 --> 00:45:57,680 Speaker 3: And I think we covered that, like obviously on the 868 00:45:57,719 --> 00:45:59,680 Speaker 3: personal we said all right, well let's figure out this 869 00:45:59,719 --> 00:46:01,400 Speaker 3: six thousand pound rule. We did that, but then this 870 00:46:01,560 --> 00:46:05,040 Speaker 3: year we said we still can need some deductions. So 871 00:46:05,120 --> 00:46:07,040 Speaker 3: talk about having an EV and how that can help, 872 00:46:07,120 --> 00:46:08,480 Speaker 3: especially in different states. 873 00:46:08,880 --> 00:46:11,239 Speaker 1: Yes, so an EV, the EV credit, And one thing 874 00:46:11,280 --> 00:46:12,759 Speaker 1: I want to point out to people that the EV 875 00:46:12,920 --> 00:46:17,080 Speaker 1: credit is a reflection of understanding that when the government 876 00:46:17,120 --> 00:46:19,160 Speaker 1: wants us to do something, they're going to incentivize us 877 00:46:19,160 --> 00:46:21,960 Speaker 1: through tax credits. Right, It's just as simple. They know 878 00:46:22,000 --> 00:46:25,040 Speaker 1: what's going to get us moving, They know you give 879 00:46:25,080 --> 00:46:28,080 Speaker 1: them money, they gonna do it. Right. So basically the 880 00:46:28,160 --> 00:46:31,200 Speaker 1: EV credit, you can get up to seventy five hundred 881 00:46:31,239 --> 00:46:34,560 Speaker 1: dollars credit, right, And the difference between a tax deduction 882 00:46:34,640 --> 00:46:37,319 Speaker 1: and a credit is a credit is like cash, Like, hey, 883 00:46:37,680 --> 00:46:40,960 Speaker 1: dollar for dollar, here's the money to you. You can 884 00:46:41,000 --> 00:46:43,560 Speaker 1: have this seven up to seventy five hundred dollars right 885 00:46:43,640 --> 00:46:47,319 Speaker 1: for the EV credit. So what happened, Well, now what 886 00:46:47,400 --> 00:46:50,640 Speaker 1: they're doing. Prior to twenty twenty four, they were allowing 887 00:46:50,680 --> 00:46:52,640 Speaker 1: you to file it on your taxes and then you 888 00:46:52,719 --> 00:46:56,279 Speaker 1: will get the tax refund through your taxes. Now what 889 00:46:56,360 --> 00:46:59,520 Speaker 1: they are doing, which I don't I think the previous 890 00:46:59,520 --> 00:47:04,279 Speaker 1: wave was better, but they are allowed they are deducting 891 00:47:04,400 --> 00:47:08,640 Speaker 1: that EV credit from the value of the vehicle, so 892 00:47:08,760 --> 00:47:10,480 Speaker 1: you can get the seventy five hundred dollars, but then 893 00:47:10,520 --> 00:47:12,799 Speaker 1: interest is going to eat it up. So that's why 894 00:47:12,840 --> 00:47:16,080 Speaker 1: I'm like, yeah, I don't really like that way, but again, 895 00:47:16,120 --> 00:47:18,040 Speaker 1: it's still a credit. It's still reducing the value of 896 00:47:18,040 --> 00:47:22,320 Speaker 1: your vehicle. Buy the seventy five hundred dollars. So you guys, listen, 897 00:47:22,320 --> 00:47:25,319 Speaker 1: if you're interested in the electric vehicle, then go for it. 898 00:47:25,400 --> 00:47:28,279 Speaker 1: You can get up seventy five hundred dollars simply by 899 00:47:29,239 --> 00:47:31,040 Speaker 1: you know, getting an electric vehicle. 900 00:47:31,480 --> 00:47:33,359 Speaker 3: Yeah, and then some states have like New York has 901 00:47:33,400 --> 00:47:35,200 Speaker 3: a drive clean rebate, So if you have an EV 902 00:47:35,320 --> 00:47:37,400 Speaker 3: car that's a drive clean rebate, you can get up 903 00:47:37,640 --> 00:47:39,840 Speaker 3: to another twenty five hundred. So you're talking about almost 904 00:47:39,840 --> 00:47:40,600 Speaker 3: ten thousand dollars. 905 00:47:40,680 --> 00:47:42,439 Speaker 1: Now you have state side. Yep, you have your state 906 00:47:42,520 --> 00:47:44,440 Speaker 1: side as well. And that's the same thing with solar 907 00:47:44,440 --> 00:47:46,840 Speaker 1: panels like you have. If you ever sat down and 908 00:47:46,880 --> 00:47:48,799 Speaker 1: talked to someone about solar panels, they're like, no, it's 909 00:47:48,800 --> 00:47:50,800 Speaker 1: like basically one hundred percent free because you're going to 910 00:47:50,840 --> 00:47:53,040 Speaker 1: get the tax credit, which is true. You get a 911 00:47:53,120 --> 00:47:54,920 Speaker 1: tax credit on the federal side, and you get a 912 00:47:54,960 --> 00:47:58,160 Speaker 1: tax credit on the state side. Right, because again, they 913 00:47:58,280 --> 00:48:00,399 Speaker 1: want us to have these things, and they know how 914 00:48:00,440 --> 00:48:04,799 Speaker 1: to get people moving. Tax deduction's tax credits. It's just 915 00:48:04,840 --> 00:48:07,759 Speaker 1: the name of the game for sure. All right. So 916 00:48:07,880 --> 00:48:09,280 Speaker 1: let's talk about king. 917 00:48:09,680 --> 00:48:12,319 Speaker 5: Before we go there. So what is it better to 918 00:48:12,440 --> 00:48:14,279 Speaker 5: lease a car or is it better to buy a car? 919 00:48:15,640 --> 00:48:19,040 Speaker 1: It depends on the car. So it depends on the car. 920 00:48:19,840 --> 00:48:24,600 Speaker 1: In terms from a tax perspective, it really depends. It 921 00:48:24,680 --> 00:48:27,600 Speaker 1: really depends because you could have those lease payments, and 922 00:48:27,640 --> 00:48:29,640 Speaker 1: depending on how much your lease payments is, it can 923 00:48:29,719 --> 00:48:34,680 Speaker 1: still be pretty significant. But and that's what I hate 924 00:48:34,719 --> 00:48:36,680 Speaker 1: to give the answer like it depends, But this is 925 00:48:36,680 --> 00:48:39,360 Speaker 1: really one of those things where it's like the factors 926 00:48:39,360 --> 00:48:41,840 Speaker 1: that I look at is how much are your lease payments? 927 00:48:42,480 --> 00:48:45,000 Speaker 1: How much is the value of your vehicle? Because sometimes 928 00:48:45,000 --> 00:48:47,280 Speaker 1: we can't we have to look at things from all sides, 929 00:48:47,600 --> 00:48:50,080 Speaker 1: So we have to understand does it cost you more 930 00:48:50,120 --> 00:48:53,440 Speaker 1: to finance? Do you really want to hold onto this vehicle? 931 00:48:53,800 --> 00:48:56,440 Speaker 1: Obviously it's a vehicle, so it is going to depreciate. 932 00:48:56,760 --> 00:48:58,520 Speaker 1: Do you have plans to sell it? Are you the 933 00:48:58,600 --> 00:49:01,040 Speaker 1: type of person to sell your vehicles after one or 934 00:49:01,040 --> 00:49:03,239 Speaker 1: two years? So for my people that's like in and 935 00:49:03,239 --> 00:49:07,040 Speaker 1: out of cars consistently, it may make more sense to lease, 936 00:49:07,239 --> 00:49:10,040 Speaker 1: right because you have to look at the tax credit. Yes, 937 00:49:10,320 --> 00:49:12,680 Speaker 1: but then now looking at the value of the vehicle, 938 00:49:12,719 --> 00:49:14,919 Speaker 1: and that trade and value may not be as worth 939 00:49:14,960 --> 00:49:19,439 Speaker 1: it where something like a g wagon it sustains its value, right, 940 00:49:19,520 --> 00:49:22,480 Speaker 1: So financing it is like a no brainer because it's like, 941 00:49:22,560 --> 00:49:25,520 Speaker 1: you know, you can literally go trade it in years 942 00:49:25,520 --> 00:49:27,960 Speaker 1: from now and it'll still have a really good value. 943 00:49:28,760 --> 00:49:33,160 Speaker 1: So I do think it really depends on the value, 944 00:49:33,200 --> 00:49:35,680 Speaker 1: you know, because again, like you could have a you 945 00:49:35,760 --> 00:49:38,520 Speaker 1: can have a you know, a vehicle that's not as much, 946 00:49:38,640 --> 00:49:41,960 Speaker 1: so that means your depreciation isn't as much, you know, 947 00:49:42,160 --> 00:49:44,239 Speaker 1: So I would just always compare it. But guys, these 948 00:49:44,280 --> 00:49:46,360 Speaker 1: are conversations that you should be having with your CPA. 949 00:49:46,480 --> 00:49:49,839 Speaker 1: They can compare it, like we can compare that. That's 950 00:49:49,880 --> 00:49:52,440 Speaker 1: like a tax plan. Guys, Hey, should I lease or 951 00:49:52,440 --> 00:49:53,240 Speaker 1: should I finance? 952 00:49:53,600 --> 00:49:56,400 Speaker 5: Either way? Is it still a deduction? 953 00:49:57,200 --> 00:49:59,320 Speaker 1: Yes, yes, yes, it's still a deduction. So yes, I 954 00:49:59,360 --> 00:50:01,680 Speaker 1: started out by saying the least payments is still a 955 00:50:01,680 --> 00:50:04,680 Speaker 1: tax deduction when you do it, it'll be let's say, 956 00:50:04,680 --> 00:50:07,200 Speaker 1: if it's let's say you utilize this vehicle. Let's say 957 00:50:07,200 --> 00:50:10,000 Speaker 1: you have two vehicles, and you utilize this one vehicle 958 00:50:10,080 --> 00:50:12,920 Speaker 1: one hundred percent of the time for business, one hundred 959 00:50:12,920 --> 00:50:14,920 Speaker 1: percent of the lease payments will be a tax deduction. 960 00:50:15,280 --> 00:50:18,400 Speaker 1: One hundred percent of the fuel, the registration, all of 961 00:50:18,440 --> 00:50:22,319 Speaker 1: those things will be still be a tax deduction. Yep, 962 00:50:22,600 --> 00:50:23,160 Speaker 1: if you lease. 963 00:50:24,160 --> 00:50:27,600 Speaker 3: All right, huh, So let's talk about your children with 964 00:50:27,719 --> 00:50:31,919 Speaker 3: these kids, man, let's put. 965 00:50:31,840 --> 00:50:35,240 Speaker 1: These kids to work, all right. Let's talk about hiring 966 00:50:35,280 --> 00:50:38,200 Speaker 1: your children. I know that we've talked about this a 967 00:50:38,239 --> 00:50:41,400 Speaker 1: lot in terms of like hiring your children, or you 968 00:50:41,440 --> 00:50:43,960 Speaker 1: guys may see like hiring your children and what that 969 00:50:44,000 --> 00:50:48,960 Speaker 1: all means, and you know how to really maximize and 970 00:50:49,000 --> 00:50:51,520 Speaker 1: I love the concept of hiring your children, but I 971 00:50:51,520 --> 00:50:53,399 Speaker 1: want to allow you, guys, and I want to talk 972 00:50:53,440 --> 00:50:55,880 Speaker 1: about taking it a step further and really investing in 973 00:50:55,880 --> 00:50:59,440 Speaker 1: your child's future and making it like a triple tax deduction. 974 00:50:59,640 --> 00:51:02,840 Speaker 1: So let's talk about hiring your children. Right. So, hiring 975 00:51:02,840 --> 00:51:05,239 Speaker 1: your children in the year twenty twenty four, you can 976 00:51:05,320 --> 00:51:08,600 Speaker 1: pay them up to fourteen than six hundred dollars. Okay. 977 00:51:08,600 --> 00:51:11,840 Speaker 1: What you cannot do is you cannot contribute take that 978 00:51:11,880 --> 00:51:14,560 Speaker 1: money and contribute it towards food and shelter. So you 979 00:51:14,640 --> 00:51:16,960 Speaker 1: cannot have them work and then say you owe me 980 00:51:17,280 --> 00:51:21,720 Speaker 1: rent and pay for your own food. You cannot do that, okay. 981 00:51:21,719 --> 00:51:23,400 Speaker 1: But what you can do with the money is you 982 00:51:23,440 --> 00:51:28,480 Speaker 1: can pay for extracurricular activities. It's their money. But what 983 00:51:28,560 --> 00:51:30,839 Speaker 1: you should be considered and what you should be thinking 984 00:51:30,840 --> 00:51:33,400 Speaker 1: about is taking it and investing it into a roth ira. 985 00:51:34,120 --> 00:51:35,759 Speaker 1: So if you take that money and you invest it 986 00:51:35,840 --> 00:51:38,319 Speaker 1: into a roth ira, here's how you're able to get 987 00:51:38,320 --> 00:51:42,040 Speaker 1: a triple tax deduction. One, it's a tax deduction from 988 00:51:42,080 --> 00:51:46,040 Speaker 1: your business. Then when your child receives the fourteen thousand, 989 00:51:46,120 --> 00:51:50,399 Speaker 1: six hundred dollars, it is not a tax. It's not taxable. Right, 990 00:51:50,480 --> 00:51:53,160 Speaker 1: it's not taxable because it's under the standard deduction amount. 991 00:51:54,000 --> 00:51:56,080 Speaker 1: And then what happens when you invest in a roth 992 00:51:56,160 --> 00:51:59,600 Speaker 1: ira It is going to be able to take advantage 993 00:51:59,600 --> 00:52:02,799 Speaker 1: and take into account compound interest. Right, So now you're 994 00:52:02,800 --> 00:52:06,160 Speaker 1: building a retirement account and you're able to do that, 995 00:52:06,200 --> 00:52:07,960 Speaker 1: and when it's time to get the money out of 996 00:52:08,000 --> 00:52:11,040 Speaker 1: that account, it's going to be tax free. So that's 997 00:52:11,080 --> 00:52:14,040 Speaker 1: why I love the conversation about paying your children, because 998 00:52:14,040 --> 00:52:16,880 Speaker 1: now it's like, all right, now, let's think about paying 999 00:52:16,920 --> 00:52:20,680 Speaker 1: your children and taking it a step further versus just saying, okay, 1000 00:52:20,680 --> 00:52:22,920 Speaker 1: it's just a tax deduction. No, let's let's get a 1001 00:52:22,920 --> 00:52:25,960 Speaker 1: triple tax deduction out of this. Right, So I think 1002 00:52:26,000 --> 00:52:26,960 Speaker 1: that that I love. 1003 00:52:27,840 --> 00:52:29,600 Speaker 5: Let's let's put a plan. I know you're going to 1004 00:52:29,680 --> 00:52:34,560 Speaker 5: go through like an example for that, But so for parents, 1005 00:52:34,600 --> 00:52:37,239 Speaker 5: like you know, if you have a business, you can 1006 00:52:37,280 --> 00:52:41,279 Speaker 5: pay fourteen six hundred, fourteen thousand, six hundred to year 1007 00:52:41,360 --> 00:52:43,600 Speaker 5: child So the benefit with that, like you said, is 1008 00:52:43,640 --> 00:52:45,920 Speaker 5: that if you're going to give your child money anyway, 1009 00:52:46,440 --> 00:52:48,840 Speaker 5: then you might as well give them money and have 1010 00:52:48,960 --> 00:52:51,520 Speaker 5: them as an employee. You don't have to go through 1011 00:52:51,560 --> 00:52:54,440 Speaker 5: all of the like have them on like officially on 1012 00:52:54,480 --> 00:52:58,319 Speaker 5: a payroll, right, and it's a tax deduction to you 1013 00:52:58,520 --> 00:53:00,480 Speaker 5: as opposed to you just giving them allowed. Now you 1014 00:53:00,840 --> 00:53:02,520 Speaker 5: don't benefit from that. 1015 00:53:02,520 --> 00:53:05,000 Speaker 1: That should be done through an LLC because I get 1016 00:53:05,040 --> 00:53:06,799 Speaker 1: that a lot, and I get that question a lot. 1017 00:53:07,160 --> 00:53:09,719 Speaker 1: That should be done through an LLC, not anes corporation 1018 00:53:09,760 --> 00:53:12,120 Speaker 1: because if you have ANX corporation, you have to put 1019 00:53:12,120 --> 00:53:14,920 Speaker 1: them on payroll, right, that has to be done through 1020 00:53:14,920 --> 00:53:15,520 Speaker 1: an LLC. 1021 00:53:16,040 --> 00:53:19,160 Speaker 5: So it's tax reduction to the business, you save money, 1022 00:53:19,200 --> 00:53:22,120 Speaker 5: and then it's tax free income for them. Now they 1023 00:53:22,160 --> 00:53:26,239 Speaker 5: do have to actually be able to perform a job, right, absolutely, 1024 00:53:26,600 --> 00:53:33,120 Speaker 5: that's obvious. Yeah, But there is also there's no age requirement, right, 1025 00:53:33,160 --> 00:53:35,000 Speaker 5: It just has to make sense, right. 1026 00:53:35,200 --> 00:53:38,439 Speaker 1: So there isn't an age requirement, but yeah, like you said, 1027 00:53:38,440 --> 00:53:40,680 Speaker 1: it has to make sense. I typically tell people like 1028 00:53:40,760 --> 00:53:44,399 Speaker 1: try to stay between like seven and seventeen. But if 1029 00:53:44,440 --> 00:53:46,560 Speaker 1: you have a child that's younger and let's say they 1030 00:53:46,600 --> 00:53:48,440 Speaker 1: are able let's say, listen, these kids know how to 1031 00:53:48,440 --> 00:53:52,000 Speaker 1: take photos. Now, they know how to work phones, computers, 1032 00:53:52,360 --> 00:53:54,640 Speaker 1: they know, so if you could hire them and have 1033 00:53:54,719 --> 00:53:56,520 Speaker 1: them help you with that, that's great. If they could 1034 00:53:56,560 --> 00:53:57,160 Speaker 1: be a model. 1035 00:53:57,360 --> 00:53:58,560 Speaker 5: But I thought I was going to say a model. 1036 00:53:58,600 --> 00:54:00,000 Speaker 1: If you have a kiss, they could be a model. 1037 00:54:00,120 --> 00:54:02,360 Speaker 5: You can have a kid that's younger that that's a model, 1038 00:54:02,400 --> 00:54:04,160 Speaker 5: and you could pay them for models and services, because 1039 00:54:04,160 --> 00:54:07,520 Speaker 5: you know what you gotta because there's always there's always 1040 00:54:07,560 --> 00:54:09,840 Speaker 5: somebody that's going to try to figure out how something 1041 00:54:09,880 --> 00:54:12,200 Speaker 5: doesn't work. And those are usually people that have never 1042 00:54:12,239 --> 00:54:15,880 Speaker 5: done anything. So it's like, well, you know, technically, you 1043 00:54:15,920 --> 00:54:19,720 Speaker 5: can't have a kid working if they're not working. That's obvious. 1044 00:54:20,360 --> 00:54:22,800 Speaker 5: That's obvious. But it's like you're trying to find ways 1045 00:54:22,840 --> 00:54:26,799 Speaker 5: around to make it not work when it's a workable model. Right, Like, 1046 00:54:27,080 --> 00:54:30,960 Speaker 5: if you have a child eleven, twelve, thirteen, they're old 1047 00:54:31,080 --> 00:54:34,720 Speaker 5: enough to perform tasks, they can post on social media, 1048 00:54:35,200 --> 00:54:37,080 Speaker 5: they can come with you, they can be an assistant, 1049 00:54:37,120 --> 00:54:39,440 Speaker 5: they can do a variety of different things. Right, It's 1050 00:54:39,440 --> 00:54:41,040 Speaker 5: like you're trying to talk yourself out of it. This 1051 00:54:41,040 --> 00:54:44,120 Speaker 5: is how this doesn't make sense. It's not difficult to work. 1052 00:54:44,920 --> 00:54:46,600 Speaker 5: That's not a difficult thing to do, and there's a 1053 00:54:46,680 --> 00:54:48,920 Speaker 5: variety of different jobs that you can do now for 1054 00:54:49,200 --> 00:54:51,279 Speaker 5: one year old is going to be difficult obviously to 1055 00:54:51,400 --> 00:54:53,920 Speaker 5: have them as a computer programmer, that's not something that 1056 00:54:54,080 --> 00:54:56,120 Speaker 5: is beneficial. But like I said, I mean you could 1057 00:54:56,160 --> 00:54:58,640 Speaker 5: pay somebody to be a model at any age really 1058 00:54:59,480 --> 00:55:01,719 Speaker 5: and the benefit with that as just a regular because 1059 00:55:01,760 --> 00:55:03,200 Speaker 5: you could put money to a wild fire rate for 1060 00:55:03,239 --> 00:55:05,440 Speaker 5: a regular kid. But that's not if you don't have 1061 00:55:05,480 --> 00:55:09,120 Speaker 5: a business. But they have to actually work a job 1062 00:55:09,239 --> 00:55:12,560 Speaker 5: that's hiring them, and they have to be of working age. 1063 00:55:13,040 --> 00:55:15,920 Speaker 5: So you have to have working papers to work a 1064 00:55:16,000 --> 00:55:18,640 Speaker 5: job like thirteen fourteen something like that, depending on I 1065 00:55:18,680 --> 00:55:20,680 Speaker 5: guess what, depending on what state you are. But you 1066 00:55:20,680 --> 00:55:24,200 Speaker 5: can hire your child at a younger age than that, right, 1067 00:55:24,480 --> 00:55:27,200 Speaker 5: and it's more flexible. They don't have to go to 1068 00:55:27,280 --> 00:55:31,879 Speaker 5: CBS from you know, six o'clock to nine o'clock every night. 1069 00:55:31,960 --> 00:55:34,359 Speaker 5: Like they can just work for you and you can 1070 00:55:34,400 --> 00:55:36,920 Speaker 5: dictate what they do and tell them what to do. 1071 00:55:36,960 --> 00:55:39,520 Speaker 5: And now, so they're gaining real life experience from working 1072 00:55:39,560 --> 00:55:45,000 Speaker 5: for you, and you're saving money, they're gaining money. It's 1073 00:55:45,000 --> 00:55:48,520 Speaker 5: a it's a win win situation. So that's very important 1074 00:55:48,600 --> 00:55:51,000 Speaker 5: for people to understand. Even if you take a trip, 1075 00:55:51,080 --> 00:55:53,000 Speaker 5: like you know, if they're working for you, then if 1076 00:55:53,000 --> 00:55:55,640 Speaker 5: you take if you go somewhere with them, then that 1077 00:55:55,680 --> 00:55:58,520 Speaker 5: could be all counted in the business trip, right if 1078 00:55:58,560 --> 00:56:02,839 Speaker 5: it's business related, Yes, So that's real powerful, like I said, 1079 00:56:02,960 --> 00:56:05,319 Speaker 5: as opposed to just parents going and give their kids 1080 00:56:05,400 --> 00:56:09,000 Speaker 5: money anyway, So going to pay for some paying. 1081 00:56:08,800 --> 00:56:11,520 Speaker 1: For road bloods, you're paying for ection, you paying for sneakers, 1082 00:56:11,520 --> 00:56:15,799 Speaker 1: you're paying for extra curricular activities, outing with friends. They 1083 00:56:15,840 --> 00:56:18,000 Speaker 1: have their own money paying them make them work. I've 1084 00:56:18,000 --> 00:56:18,880 Speaker 1: been working since I was. 1085 00:56:18,880 --> 00:56:21,719 Speaker 2: Six, so yeah, come on, we've been making I've been 1086 00:56:21,719 --> 00:56:22,400 Speaker 2: working longer than that. 1087 00:56:23,440 --> 00:56:25,239 Speaker 3: But I mean think about what this sending your kid's 1088 00:56:25,320 --> 00:56:28,120 Speaker 3: up for, right, Like, just what the information If you're 1089 00:56:28,200 --> 00:56:31,640 Speaker 3: seven to seventeen, you do fourteen six for ten years 1090 00:56:31,680 --> 00:56:34,479 Speaker 3: on almost a hundred and fifty thousand, Like how many 1091 00:56:34,520 --> 00:56:37,400 Speaker 3: of us had one hundred or anything waiting for us 1092 00:56:37,400 --> 00:56:39,600 Speaker 3: at the age of seventeen or eighteen where they're about 1093 00:56:39,600 --> 00:56:41,840 Speaker 3: to make a decision of whether they're going to school 1094 00:56:41,920 --> 00:56:44,719 Speaker 3: or now, maybe I have enough money to start my 1095 00:56:44,719 --> 00:56:47,000 Speaker 3: own business, right, this is the seed round for my 1096 00:56:47,120 --> 00:56:50,320 Speaker 3: business it's ready and then my account. It just sets 1097 00:56:50,360 --> 00:56:52,920 Speaker 3: your family up. And I've got two kids, and now 1098 00:56:52,920 --> 00:56:55,800 Speaker 3: that's twice, so now they both have the same amount. 1099 00:56:55,920 --> 00:56:58,319 Speaker 3: And obviously there's different avenues that they can invest. But 1100 00:56:58,719 --> 00:57:00,319 Speaker 3: just think about what you're seting your kid is up 1101 00:57:00,320 --> 00:57:01,280 Speaker 3: for at the age of seventeen. 1102 00:57:01,400 --> 00:57:02,120 Speaker 2: It's priceless. 1103 00:57:02,280 --> 00:57:04,680 Speaker 5: So you're going to go through an example, right. 1104 00:57:05,200 --> 00:57:08,280 Speaker 1: Yeah, let's just let's talk about it. Let's talk about 1105 00:57:08,840 --> 00:57:11,000 Speaker 1: and just put numbers to it, because I find that 1106 00:57:11,080 --> 00:57:16,360 Speaker 1: when you talk numbers, people really understand you know, something 1107 00:57:16,400 --> 00:57:20,600 Speaker 1: as as you know small as putting dollars away into 1108 00:57:20,640 --> 00:57:23,960 Speaker 1: a roth ira. So so one thing to note guys 1109 00:57:24,160 --> 00:57:27,439 Speaker 1: is that when you take money out of a wroth 1110 00:57:27,520 --> 00:57:30,360 Speaker 1: ira when it's time for retirement, it is going to 1111 00:57:30,440 --> 00:57:33,000 Speaker 1: be tax free. Right, so you're going to receive one 1112 00:57:33,080 --> 00:57:35,200 Speaker 1: hundred percent of those payments. You do not have to 1113 00:57:35,200 --> 00:57:40,000 Speaker 1: worry about it being tax and the the idea behind 1114 00:57:40,160 --> 00:57:44,320 Speaker 1: a wroth ira being like non t mean non taxable 1115 00:57:44,400 --> 00:57:46,960 Speaker 1: or tax free when it's time, when it's retirement agent, 1116 00:57:46,960 --> 00:57:48,920 Speaker 1: it's time for you to pull it out. It's simply 1117 00:57:49,000 --> 00:57:53,760 Speaker 1: that you've done it with quote unquote after tax dollars, right, 1118 00:57:53,800 --> 00:57:56,240 Speaker 1: which is different from like a traditional ira. Right. When 1119 00:57:56,240 --> 00:58:00,760 Speaker 1: you talk traditional ira, you're pretty much talking more so like, hey, 1120 00:58:00,760 --> 00:58:04,600 Speaker 1: you're contributing to this with pre tax dollars. So if 1121 00:58:04,640 --> 00:58:07,720 Speaker 1: you're contributing to this with pre tax dollars, then you know, 1122 00:58:07,800 --> 00:58:09,800 Speaker 1: obviously they're like, all right, we're gonna get our taxes 1123 00:58:09,840 --> 00:58:12,400 Speaker 1: one way or another. But the great thing about hiring 1124 00:58:12,400 --> 00:58:15,000 Speaker 1: your children is you can take that money, put it 1125 00:58:15,000 --> 00:58:18,240 Speaker 1: into a roth ira, and then what happens is, let's 1126 00:58:18,280 --> 00:58:20,360 Speaker 1: just say you started your child out, and then your 1127 00:58:20,440 --> 00:58:23,560 Speaker 1: child now has that concept in that mindset of hey, 1128 00:58:23,640 --> 00:58:27,040 Speaker 1: I now have to contribute to my wroth ira. What 1129 00:58:27,040 --> 00:58:31,360 Speaker 1: would happen if they invested freaking seven thousand dollars from 1130 00:58:31,360 --> 00:58:33,400 Speaker 1: the age of seven when you hired them. I didn't 1131 00:58:33,400 --> 00:58:36,320 Speaker 1: even do from one, right, Let's just do from seven 1132 00:58:36,800 --> 00:58:42,280 Speaker 1: to age sixty five. The total contributions inside of that 1133 00:58:42,800 --> 00:58:45,240 Speaker 1: roth ira would have been four hundred and six thousand, 1134 00:58:45,320 --> 00:58:49,080 Speaker 1: but the value would be five thousand, I mean five million, 1135 00:58:49,520 --> 00:58:53,000 Speaker 1: three hundred and eight thousand dollars. So I want you 1136 00:58:53,040 --> 00:58:57,240 Speaker 1: guys to really understand that compound interest is something that 1137 00:58:57,280 --> 00:59:01,080 Speaker 1: we need to take advantage of. Understanding taxes and how 1138 00:59:01,120 --> 00:59:03,920 Speaker 1: we can minimize taxes. It's something that we need to 1139 00:59:04,560 --> 00:59:07,600 Speaker 1: really lean into and really figuring out, like, okay, well 1140 00:59:07,600 --> 00:59:10,320 Speaker 1: if this is a tax reduction, how can I really 1141 00:59:10,360 --> 00:59:13,000 Speaker 1: take advantage of this? Because so many people are like, okay, 1142 00:59:13,040 --> 00:59:15,480 Speaker 1: I can pay my child. Yes, that's great, you can 1143 00:59:15,560 --> 00:59:17,800 Speaker 1: pay your child, But how about you pay your child 1144 00:59:17,840 --> 00:59:20,320 Speaker 1: and you invest into a retirement account. You teach them 1145 00:59:20,320 --> 00:59:23,240 Speaker 1: about this retirement account, and then it's you know, also 1146 00:59:23,600 --> 00:59:25,720 Speaker 1: going to be instilled in their mind that they have 1147 00:59:25,800 --> 00:59:28,160 Speaker 1: to keep this retirement account going, and then when it's 1148 00:59:28,200 --> 00:59:30,640 Speaker 1: retirement age, they're going to be set for life. I 1149 00:59:30,680 --> 00:59:32,440 Speaker 1: know so many people want to set their kids up 1150 00:59:32,480 --> 00:59:35,160 Speaker 1: for life. Right, So we need to focus and lean 1151 00:59:35,240 --> 00:59:36,520 Speaker 1: more into things like this. 1152 00:59:37,960 --> 00:59:41,640 Speaker 5: No, that's that's that's vitally important, and it could be 1153 00:59:41,680 --> 00:59:44,480 Speaker 5: invested in a variety of different things too, right, So 1154 00:59:45,080 --> 00:59:47,160 Speaker 5: it's like even the rate of return that you get 1155 00:59:47,680 --> 00:59:52,320 Speaker 5: is all dependent. So just another example because people might say, 1156 00:59:52,320 --> 00:59:55,240 Speaker 5: well all right, well, you know people always gonna find 1157 00:59:55,240 --> 00:59:57,280 Speaker 5: ways to try to put holes in things. So it's like, 1158 00:59:57,320 --> 00:59:59,880 Speaker 5: all right, let's say let's make it even more real 1159 01:00:00,000 --> 01:00:04,680 Speaker 5: liistic standpoint where we just go from age ten to eighteen, right, 1160 01:00:04,800 --> 01:00:07,560 Speaker 5: so you're just putting money. They're not even putting money. 1161 01:00:07,600 --> 01:00:09,640 Speaker 5: They don't even put a dollar in after the only 1162 01:00:09,680 --> 01:00:11,400 Speaker 5: you only put money in for them. They don't even 1163 01:00:11,400 --> 01:00:13,760 Speaker 5: they don't put no money in themselves at all. So 1164 01:00:13,840 --> 01:00:15,840 Speaker 5: let's say if you put five thousand dollars in, which 1165 01:00:15,840 --> 01:00:18,120 Speaker 5: is even lower than the maximum amount that you can 1166 01:00:18,160 --> 01:00:22,400 Speaker 5: put in. If you put five thousand dollars in every 1167 01:00:22,480 --> 01:00:27,880 Speaker 5: year for your child from ages ten to eighteen, and 1168 01:00:27,920 --> 01:00:30,080 Speaker 5: then they just left it alone, they didn't do anything 1169 01:00:30,280 --> 01:00:32,520 Speaker 5: at their age sixty. If there was a seven percent 1170 01:00:32,560 --> 01:00:35,080 Speaker 5: rate of return, which is a very realistic number, they 1171 01:00:35,080 --> 01:00:37,320 Speaker 5: would have all they would have a million dollars a million, 1172 01:00:37,560 --> 01:00:40,760 Speaker 5: twenty six thousand, a big zac. Now, assuming that it 1173 01:00:40,880 --> 01:00:43,960 Speaker 5: was a ten percent rate of return annual average, which 1174 01:00:44,240 --> 01:00:45,800 Speaker 5: I mean that's what if you look at what the 1175 01:00:45,880 --> 01:00:47,560 Speaker 5: S ANDP has done over the last twenty years, that's 1176 01:00:47,560 --> 01:00:51,200 Speaker 5: what it's actually been closer to ten than seven, then 1177 01:00:51,200 --> 01:00:54,560 Speaker 5: that would be three point seven million dollars. So this 1178 01:00:54,640 --> 01:00:57,920 Speaker 5: is people are like, well, they got to wait. I 1179 01:00:58,000 --> 01:01:02,920 Speaker 5: already know the pestimist, so I'm already get it. So 1180 01:01:02,960 --> 01:01:05,880 Speaker 5: it's like, oh, you gotta wait till to sixty who 1181 01:01:05,880 --> 01:01:09,320 Speaker 5: wants to wait? Okay, well, if somebody had a million 1182 01:01:09,360 --> 01:01:12,040 Speaker 5: dollars for you and you did nothing for it outside 1183 01:01:12,080 --> 01:01:17,560 Speaker 5: of working relatively minimum work as a child for your parents, 1184 01:01:17,880 --> 01:01:20,000 Speaker 5: if they if somebody had a million dollars for you 1185 01:01:20,040 --> 01:01:22,160 Speaker 5: when you were sixty years old, would you be mad 1186 01:01:22,160 --> 01:01:23,840 Speaker 5: about that? Tax free? By the way, you don't have 1187 01:01:23,880 --> 01:01:26,160 Speaker 5: takes on it. Would that be something that you would 1188 01:01:26,160 --> 01:01:30,440 Speaker 5: be mad discouraged about because nine times out of ten, 1189 01:01:30,480 --> 01:01:31,960 Speaker 5: when you get to retirement, and we're going to talk 1190 01:01:32,000 --> 01:01:35,439 Speaker 5: about retirement plans, but most people don't have anywhere close 1191 01:01:35,480 --> 01:01:37,480 Speaker 5: to a million dollars when they get to retirement after 1192 01:01:37,480 --> 01:01:39,760 Speaker 5: they work their whole entire life. So most people work 1193 01:01:39,800 --> 01:01:42,920 Speaker 5: their whole entire life and don't have a million dollars 1194 01:01:43,400 --> 01:01:46,040 Speaker 5: or more when this You could have had a million 1195 01:01:46,080 --> 01:01:49,640 Speaker 5: dollars just from having your parents put money away for 1196 01:01:49,680 --> 01:01:52,040 Speaker 5: a couple of years when you was a child, and 1197 01:01:52,680 --> 01:01:55,800 Speaker 5: let alone other money that you put into it a 1198 01:01:55,920 --> 01:01:58,640 Speaker 5: wrought fra as you're indulged on IRA or four and 1199 01:01:58,720 --> 01:02:00,560 Speaker 5: one K or all. The type of retirement plans like 1200 01:02:00,800 --> 01:02:04,160 Speaker 5: this is just the extra bonus that was set up 1201 01:02:04,160 --> 01:02:07,880 Speaker 5: for you when you were young. So it's just important 1202 01:02:07,880 --> 01:02:10,520 Speaker 5: to plan for It's important to plan for the future 1203 01:02:10,560 --> 01:02:12,320 Speaker 5: because of a compound and interests, Like you could really 1204 01:02:12,400 --> 01:02:16,360 Speaker 5: literally make your child a millionaire with a relatively little 1205 01:02:16,640 --> 01:02:18,800 Speaker 5: a little bit of amount of money, so a relative 1206 01:02:18,800 --> 01:02:21,320 Speaker 5: but a little amount of money for a short period 1207 01:02:21,360 --> 01:02:24,040 Speaker 5: of time and it's almost guaranteed as long as you 1208 01:02:24,360 --> 01:02:28,959 Speaker 5: follow those principles. So that's something that I think should 1209 01:02:29,000 --> 01:02:30,560 Speaker 5: be important because, like you said, you get the tax 1210 01:02:30,560 --> 01:02:34,120 Speaker 5: deduction anyway, and they still could spend money too, So 1211 01:02:34,160 --> 01:02:36,200 Speaker 5: it's not like if you put five thousand dollars, if 1212 01:02:36,240 --> 01:02:39,080 Speaker 5: you pay them fourteen thousand, well they still have nine 1213 01:02:39,080 --> 01:02:43,760 Speaker 5: thousand dollars surplus, so they could still have discretionary income 1214 01:02:44,000 --> 01:02:47,400 Speaker 5: that they can utilize to buy stuff for themselves Jordans 1215 01:02:47,440 --> 01:02:50,680 Speaker 5: or whatever they want to buy that you're actually paying 1216 01:02:50,680 --> 01:02:53,360 Speaker 5: for anyway. But at least you're getting a tax deduction. 1217 01:02:53,480 --> 01:02:55,920 Speaker 5: So it's just about being smart. You know, the tax 1218 01:02:55,960 --> 01:02:58,480 Speaker 5: code was always made for business owners and investors. It 1219 01:02:58,520 --> 01:03:01,840 Speaker 5: wasn't made for employees. And when you understand that, then 1220 01:03:01,880 --> 01:03:05,160 Speaker 5: you understand why it's so important to establish a business 1221 01:03:05,560 --> 01:03:06,480 Speaker 5: and to be an investor. 1222 01:03:07,760 --> 01:03:10,680 Speaker 1: That's a fact. I love when you guys validate the 1223 01:03:10,720 --> 01:03:11,360 Speaker 1: things that I. 1224 01:03:11,280 --> 01:03:15,000 Speaker 3: Say, I mean really, I mean we people talk about 1225 01:03:15,040 --> 01:03:17,640 Speaker 3: generational wealth and sustainable wealth, but like if you're not 1226 01:03:17,680 --> 01:03:20,120 Speaker 3: taking these steps to create it, how does it exist? 1227 01:03:20,360 --> 01:03:22,920 Speaker 3: So like these are just very like that is generational, 1228 01:03:22,960 --> 01:03:25,440 Speaker 3: Like that's something that you get at eighteen your parents 1229 01:03:25,440 --> 01:03:27,480 Speaker 3: do you when you have kids, you should be doing 1230 01:03:27,520 --> 01:03:30,880 Speaker 3: the same thing. That's that's generational, right, Like we got 1231 01:03:31,600 --> 01:03:34,320 Speaker 3: in those lenses. But you brought up retirement plans, So 1232 01:03:34,600 --> 01:03:39,080 Speaker 3: let's talk about some retirement contributions because that's something again taxes. 1233 01:03:39,080 --> 01:03:42,280 Speaker 3: They're not going to teach you retirement plans. They forget 1234 01:03:42,320 --> 01:03:44,960 Speaker 3: about it. Like this is just like language for so 1235 01:03:45,080 --> 01:03:46,480 Speaker 3: many so let's dive into that. 1236 01:03:47,240 --> 01:03:49,760 Speaker 1: They just literally you start. Even when you start a job, 1237 01:03:49,840 --> 01:03:52,880 Speaker 1: they're like, yeah, here, click, what do you what do 1238 01:03:52,880 --> 01:03:55,600 Speaker 1: you want to do? Like what I will never forget. 1239 01:03:55,600 --> 01:03:58,880 Speaker 1: When I first started corporate, I'm like what, I don't 1240 01:03:58,880 --> 01:04:00,480 Speaker 1: know what? Well, how am I going to make the 1241 01:04:00,480 --> 01:04:03,160 Speaker 1: best decision anybody for me to consult with? No, you 1242 01:04:03,280 --> 01:04:04,000 Speaker 1: just have to choose. 1243 01:04:04,240 --> 01:04:06,080 Speaker 3: They tell you, like yo, that there's a guy coming 1244 01:04:06,120 --> 01:04:08,800 Speaker 3: on Thursday, and he's coming during your lunch break, So 1245 01:04:08,840 --> 01:04:11,040 Speaker 3: if you have time, just go sit with him and 1246 01:04:11,040 --> 01:04:12,720 Speaker 3: then he'll play some things to you and then you 1247 01:04:12,840 --> 01:04:14,240 Speaker 3: never see the guy for the rest of the year. 1248 01:04:14,840 --> 01:04:15,040 Speaker 1: Yeah. 1249 01:04:16,040 --> 01:04:20,040 Speaker 5: Fact, this is for people. A lot of stuff that 1250 01:04:20,040 --> 01:04:22,200 Speaker 5: we went over so far was only for entrepreneurs, So 1251 01:04:22,640 --> 01:04:24,800 Speaker 5: this is for people that's not entrepreneurs also. 1252 01:04:25,640 --> 01:04:31,240 Speaker 1: Yeah, absolutely, absolutely, So let's talk about retirement contributions because 1253 01:04:31,240 --> 01:04:35,240 Speaker 1: we do need to think about the future, right. So, Rashad, 1254 01:04:35,480 --> 01:04:39,240 Speaker 1: you've mentioned it, you know a few times, especially when 1255 01:04:39,480 --> 01:04:42,880 Speaker 1: when we've spoken just in terms of like retirement and 1256 01:04:42,920 --> 01:04:45,280 Speaker 1: do we even have enough money, and you know, really 1257 01:04:45,360 --> 01:04:48,520 Speaker 1: understanding that and knowing what your limits are like, so 1258 01:04:48,680 --> 01:04:52,560 Speaker 1: many people aren't aware or have an understanding of Okay, 1259 01:04:52,600 --> 01:04:55,600 Speaker 1: well this is how much you know I can actually 1260 01:04:55,680 --> 01:04:58,800 Speaker 1: contribute and am I actually maxing it out? So one 1261 01:04:58,840 --> 01:05:01,520 Speaker 1: of the things that I mentioned, and as it relates 1262 01:05:01,520 --> 01:05:05,720 Speaker 1: to employees earlier, was hey, you need to max out 1263 01:05:05,800 --> 01:05:09,400 Speaker 1: your retirement contribute, I mean your yeah, your retirement contribution. 1264 01:05:09,800 --> 01:05:12,120 Speaker 1: And then for my business owners, I need you all 1265 01:05:12,160 --> 01:05:14,680 Speaker 1: to take retirement a lot more serious. 1266 01:05:14,920 --> 01:05:15,080 Speaker 6: Right. 1267 01:05:15,200 --> 01:05:18,520 Speaker 1: So, we have thousands of clients and Brooks Alliance, and 1268 01:05:19,280 --> 01:05:22,640 Speaker 1: I can tell you that retirement is not at the forefront. 1269 01:05:22,680 --> 01:05:24,959 Speaker 1: If we mention it, then it's like yeah, I want 1270 01:05:25,000 --> 01:05:28,640 Speaker 1: to retire, like I want to have retirement. But because 1271 01:05:28,680 --> 01:05:33,040 Speaker 1: everyone's so like consumed with you know, getting their business 1272 01:05:33,040 --> 01:05:35,640 Speaker 1: together and put you know, and serving their clients and 1273 01:05:35,680 --> 01:05:39,440 Speaker 1: doing all these things, they're not necessarily focused on their retirement. 1274 01:05:39,680 --> 01:05:42,480 Speaker 1: And it is a tax deduction. It is a tax deduction. 1275 01:05:42,720 --> 01:05:45,320 Speaker 1: You can match it, right, So you can literally put 1276 01:05:45,320 --> 01:05:49,960 Speaker 1: yourself on payroll. You can contribute to a retirement account 1277 01:05:50,000 --> 01:05:52,640 Speaker 1: and have your company match it the same way that 1278 01:05:52,680 --> 01:05:54,479 Speaker 1: they do at your you know, when you were working 1279 01:05:54,600 --> 01:05:57,400 Speaker 1: W two. So I need you all to lean more 1280 01:05:57,440 --> 01:06:01,080 Speaker 1: into retirement and understand that this is really really important. 1281 01:06:01,800 --> 01:06:03,240 Speaker 1: And we can't just be like, oh, well, I'm going 1282 01:06:03,320 --> 01:06:06,120 Speaker 1: to make enough money through my business. Wealthy people still 1283 01:06:06,160 --> 01:06:09,040 Speaker 1: plan for retirement. It doesn't matter how much money you 1284 01:06:09,120 --> 01:06:11,760 Speaker 1: plan on having, you still have to plan for retirement. 1285 01:06:11,880 --> 01:06:17,160 Speaker 1: So let's just talk about your contribution limits. So for 1286 01:06:17,240 --> 01:06:19,960 Speaker 1: all of my four to one k's four three bs 1287 01:06:20,160 --> 01:06:23,960 Speaker 1: for four fifty seven b's, your contribution limit for twenty 1288 01:06:24,000 --> 01:06:28,160 Speaker 1: twenty four is twenty three thousand dollars. It surprised me 1289 01:06:28,240 --> 01:06:31,240 Speaker 1: that they only increase these limits by five hundred dollars, 1290 01:06:31,280 --> 01:06:34,640 Speaker 1: Like I feel like they were pretty reasonable with a 1291 01:06:34,680 --> 01:06:38,160 Speaker 1: lot of different things that they increased this year. They 1292 01:06:38,200 --> 01:06:41,200 Speaker 1: increase it a lot more than they typically do. But anyway, 1293 01:06:41,200 --> 01:06:44,520 Speaker 1: it's up five hundred dollars from twenty twenty three. So 1294 01:06:44,760 --> 01:06:48,240 Speaker 1: if you're doing a ketchup contribution, obviously rashad, what's the 1295 01:06:48,280 --> 01:06:51,080 Speaker 1: age if you're over fifty, you. 1296 01:06:51,040 --> 01:06:53,160 Speaker 5: Get to do yeah, fifty fifty. 1297 01:06:53,400 --> 01:06:56,560 Speaker 1: Yeah, So if you're over fifty, then you can contribute 1298 01:06:56,560 --> 01:07:01,400 Speaker 1: an additional eight thousand dollars. So traditional Iron contribution roth 1299 01:07:01,440 --> 01:07:05,840 Speaker 1: IRA contribution is seven thousand dollars. So if you are 1300 01:07:06,120 --> 01:07:09,720 Speaker 1: doing the Ketchup contribution of eight thousand, I mean, if 1301 01:07:09,720 --> 01:07:12,840 Speaker 1: you are doing a Ketchup contribution, you can contribute eight 1302 01:07:12,880 --> 01:07:16,800 Speaker 1: thousand dollars. And then HSA accounts. So I talked about 1303 01:07:16,800 --> 01:07:19,400 Speaker 1: this earlier, right like he's saying, hey, these are things 1304 01:07:19,400 --> 01:07:22,840 Speaker 1: that you can actually invest, I mean, you can actually 1305 01:07:22,840 --> 01:07:26,280 Speaker 1: contribute to to help you, you know, just save on taxes. 1306 01:07:27,080 --> 01:07:30,440 Speaker 1: So the contribution limit for twenty twenty four is four thousand, 1307 01:07:30,480 --> 01:07:32,680 Speaker 1: one hundred and fifty dollars, and if you have a 1308 01:07:32,720 --> 01:07:36,680 Speaker 1: family it is eighty three hundred. All right, so let's 1309 01:07:36,760 --> 01:07:38,960 Speaker 1: let's take a step back, and let's because there's a 1310 01:07:39,000 --> 01:07:41,800 Speaker 1: lot of people that have W two income and they 1311 01:07:41,880 --> 01:07:46,400 Speaker 1: also have they also have retirement income Rayce. So one 1312 01:07:46,440 --> 01:07:48,520 Speaker 1: thing as a business owner that I want you all 1313 01:07:48,560 --> 01:07:52,640 Speaker 1: to understand is that your max contribution or everyone your 1314 01:07:52,720 --> 01:07:58,120 Speaker 1: max your max contribution in terms of other investment, vehicles 1315 01:07:58,200 --> 01:08:01,640 Speaker 1: and everything for the year for two is sixty nine 1316 01:08:01,680 --> 01:08:05,160 Speaker 1: thousand dollars. So let's just talk about it, and I'll 1317 01:08:05,200 --> 01:08:07,560 Speaker 1: just use a business owner. The business owner, they're like, 1318 01:08:07,560 --> 01:08:09,360 Speaker 1: all right, well, listen to this business. I want to 1319 01:08:09,360 --> 01:08:12,040 Speaker 1: contribute more than twenty three thousand dollars. You told me 1320 01:08:12,080 --> 01:08:15,240 Speaker 1: that I can contribute up to sixty nine thousand, But 1321 01:08:15,280 --> 01:08:16,760 Speaker 1: then you're telling me that my four oh one K 1322 01:08:16,880 --> 01:08:19,920 Speaker 1: contribution limit is sixty nine I mean it's twenty three hundred. Like, 1323 01:08:19,920 --> 01:08:22,080 Speaker 1: it's not making sense, right, So what does that mean? 1324 01:08:22,760 --> 01:08:24,519 Speaker 1: What that means is that again I told you guys, 1325 01:08:24,520 --> 01:08:26,599 Speaker 1: where you start is not necessarily where you're going to finish. 1326 01:08:26,880 --> 01:08:29,040 Speaker 1: So when you're a smaller business owner, you may be 1327 01:08:29,280 --> 01:08:32,440 Speaker 1: looking into things like solo four one K traditional Iraise 1328 01:08:32,520 --> 01:08:37,679 Speaker 1: contribute in to rock Irase. But what happens is now 1329 01:08:37,760 --> 01:08:41,280 Speaker 1: once you start making more money, now you're considering, hey, 1330 01:08:41,840 --> 01:08:46,360 Speaker 1: I need to maybe consider investing into a step IR, right, 1331 01:08:46,680 --> 01:08:49,280 Speaker 1: or hey, I need a four to one K plan. 1332 01:08:49,320 --> 01:08:51,880 Speaker 1: And keep in mind, guys, this falls along the lines 1333 01:08:51,920 --> 01:08:56,360 Speaker 1: of you are not going to where you start is 1334 01:08:56,360 --> 01:08:59,280 Speaker 1: not where you're going to finish, right, because you having 1335 01:08:59,280 --> 01:09:00,840 Speaker 1: a four to one K is a little bit more 1336 01:09:00,880 --> 01:09:05,080 Speaker 1: pricier than obviously doing like a simple IRA or traditional IRA. 1337 01:09:05,600 --> 01:09:07,639 Speaker 1: It is even a little bit more chea it's cheaper 1338 01:09:07,640 --> 01:09:10,599 Speaker 1: than having a step IR. But again, once you start 1339 01:09:10,680 --> 01:09:14,519 Speaker 1: having employees and when you start making more money and 1340 01:09:14,560 --> 01:09:16,280 Speaker 1: you need to start doing more things, a four to 1341 01:09:16,320 --> 01:09:18,880 Speaker 1: one K is a little bit more advantageous because what 1342 01:09:19,000 --> 01:09:22,200 Speaker 1: happens is you now can not only have your four 1343 01:09:22,240 --> 01:09:24,519 Speaker 1: to one K and pay yourself, but you also can 1344 01:09:24,600 --> 01:09:27,679 Speaker 1: do what's called profit sharing. Right, So while the max 1345 01:09:27,720 --> 01:09:29,799 Speaker 1: of that four oh one K is twenty three thousand, 1346 01:09:30,040 --> 01:09:32,439 Speaker 1: for the remaining balance, you can do a profit share 1347 01:09:32,479 --> 01:09:34,600 Speaker 1: and contribute into that four to one K in to 1348 01:09:34,720 --> 01:09:38,040 Speaker 1: your retirement. Right. So now it's a situation where now 1349 01:09:38,080 --> 01:09:40,519 Speaker 1: you can contribute up to that sixty nine thousand every 1350 01:09:40,520 --> 01:09:43,160 Speaker 1: single year. So I think that it's important that we 1351 01:09:43,280 --> 01:09:46,800 Speaker 1: understand that there are different retirement accounts and you just 1352 01:09:46,840 --> 01:09:49,200 Speaker 1: have to figure out like, okay, well where am I 1353 01:09:49,280 --> 01:09:51,600 Speaker 1: right now? And what's the best retirement account for me 1354 01:09:51,880 --> 01:09:54,920 Speaker 1: right now? And I think that if we understand that, 1355 01:09:55,000 --> 01:09:57,679 Speaker 1: then we'll, you know, definitely be able to take advantage 1356 01:09:57,720 --> 01:10:00,240 Speaker 1: of the tax code and be able to invest for 1357 01:10:00,280 --> 01:10:01,000 Speaker 1: a retirement. 1358 01:10:01,400 --> 01:10:04,080 Speaker 5: Can you talk about real estate quickly? Because they know 1359 01:10:04,120 --> 01:10:06,640 Speaker 5: there's course segregation, there's a lot of different stuff like that, 1360 01:10:06,800 --> 01:10:09,160 Speaker 5: So I know that that's something that people might probably 1361 01:10:09,160 --> 01:10:10,080 Speaker 5: want to be interested in. 1362 01:10:10,280 --> 01:10:12,599 Speaker 1: Absolutely. So what I'm going to do here is I'm 1363 01:10:12,600 --> 01:10:14,599 Speaker 1: not sure if you guys caught my presentation. I know 1364 01:10:14,640 --> 01:10:17,360 Speaker 1: you guys were going you were going crazy during invest Fest, 1365 01:10:17,439 --> 01:10:21,519 Speaker 1: But I did a presentation during invest Pest, and I 1366 01:10:21,560 --> 01:10:25,559 Speaker 1: want to talk about I want to talk about real 1367 01:10:25,640 --> 01:10:29,439 Speaker 1: estate and cost segregation and what it means. And a 1368 01:10:29,439 --> 01:10:32,360 Speaker 1: lot of times people are like, listen, I need to 1369 01:10:32,400 --> 01:10:34,639 Speaker 1: make a change, I need to do something. I need 1370 01:10:34,680 --> 01:10:38,840 Speaker 1: to invest in real estate. But what happens is they 1371 01:10:38,920 --> 01:10:44,120 Speaker 1: may get between depreciation expenses and so between depreciation expenses 1372 01:10:44,360 --> 01:10:49,160 Speaker 1: and between the deductions of operating the real estate, they 1373 01:10:49,200 --> 01:10:51,320 Speaker 1: may just come up with it like being tax free, right, 1374 01:10:51,360 --> 01:10:54,559 Speaker 1: So you may just like be tax free. You can 1375 01:10:54,680 --> 01:10:57,360 Speaker 1: get that really real estate income. But a lot of 1376 01:10:57,400 --> 01:11:01,040 Speaker 1: times people have business income, Right, you have business income 1377 01:11:01,040 --> 01:11:03,960 Speaker 1: that you're like, listen, I need to offset this business income, 1378 01:11:04,200 --> 01:11:06,280 Speaker 1: and I need an asset that's going to help me 1379 01:11:06,439 --> 01:11:09,880 Speaker 1: do that. So what exactly do I need to do? Right? 1380 01:11:09,920 --> 01:11:12,639 Speaker 1: So that's great. I was able to you know, utilize 1381 01:11:12,640 --> 01:11:14,720 Speaker 1: and I say all the time. Real estate is one 1382 01:11:14,760 --> 01:11:20,400 Speaker 1: of those amazing, amazing tax deductions where you can win 1383 01:11:20,479 --> 01:11:22,920 Speaker 1: in real life and lose on paper. And all that 1384 01:11:23,000 --> 01:11:25,840 Speaker 1: means is that in real life you're bringing in money, 1385 01:11:25,880 --> 01:11:29,000 Speaker 1: but on paper because of depreciation, which we talked about 1386 01:11:29,000 --> 01:11:32,320 Speaker 1: when we were talking about vehicles, you're able to now 1387 01:11:33,280 --> 01:11:36,160 Speaker 1: lose on paper. Right, you're now most likely reporting a 1388 01:11:36,200 --> 01:11:40,520 Speaker 1: loss because you're able to take all those deductions. So basically, 1389 01:11:40,920 --> 01:11:43,360 Speaker 1: what we do to take it a step further, Right, 1390 01:11:43,439 --> 01:11:45,439 Speaker 1: So all of my people that's like, listen, I need 1391 01:11:45,479 --> 01:11:49,640 Speaker 1: a hire depreciation expense. So therefore I'm now able to 1392 01:11:50,800 --> 01:11:54,680 Speaker 1: you know, go and deduct all of my you know, 1393 01:11:54,720 --> 01:11:58,439 Speaker 1: deduct my real estate losses and have it offset my 1394 01:11:58,560 --> 01:12:01,800 Speaker 1: business income. Right, So how can we do that? So 1395 01:12:01,840 --> 01:12:05,080 Speaker 1: we do what's called cost segregation. Cost surrogation is pretty 1396 01:12:05,120 --> 01:12:08,920 Speaker 1: much just the study, right, is a process that looks 1397 01:12:08,960 --> 01:12:12,439 Speaker 1: at each element of your property it is. It is 1398 01:12:12,479 --> 01:12:14,599 Speaker 1: not something that you can go off and do by yourself. 1399 01:12:14,680 --> 01:12:18,479 Speaker 1: It is an actual analysis that has to be done 1400 01:12:18,840 --> 01:12:21,880 Speaker 1: of your property. And then when it comes to the 1401 01:12:21,920 --> 01:12:24,640 Speaker 1: cost surrogation, what happens is you can also So we 1402 01:12:24,720 --> 01:12:29,080 Speaker 1: talked earlier about bonus depreciation. Right, so bonus appreciation pretty 1403 01:12:29,160 --> 01:12:32,200 Speaker 1: much up until twenty twenty two, it was one hundred percent, 1404 01:12:32,600 --> 01:12:36,040 Speaker 1: but then up until I mean now it's only sixty percent. 1405 01:12:36,400 --> 01:12:39,080 Speaker 1: But what happens is the IRS says, okay, every single 1406 01:12:39,160 --> 01:12:43,479 Speaker 1: asset has its specific asset class, right like it says, hey, 1407 01:12:43,520 --> 01:12:45,840 Speaker 1: this is a building can be written off over twenty 1408 01:12:45,880 --> 01:12:48,800 Speaker 1: seven and a half years. Personal property can be written 1409 01:12:48,840 --> 01:12:51,760 Speaker 1: off over five years. Land improvements can be written off 1410 01:12:51,760 --> 01:12:55,520 Speaker 1: over fifteen years. But how do we utilize bonus appreciation 1411 01:12:55,760 --> 01:13:00,799 Speaker 1: to like magnify or give us more of a depreciation expense. 1412 01:13:01,439 --> 01:13:04,439 Speaker 1: What we can do is, so in this example, we 1413 01:13:04,520 --> 01:13:07,719 Speaker 1: have a house that's five hundred thousand dollars. Keep in mind, guys, 1414 01:13:07,760 --> 01:13:11,160 Speaker 1: you cannot take bonus depreciation on a building, and you 1415 01:13:11,240 --> 01:13:15,599 Speaker 1: cannot depreciate land. Okay, So in this example, you see 1416 01:13:15,600 --> 01:13:17,960 Speaker 1: that the home is five hundred thousand dollars, the building 1417 01:13:18,080 --> 01:13:21,160 Speaker 1: is two hundred and fifty thousand dollars. You're going to 1418 01:13:21,280 --> 01:13:23,800 Speaker 1: still divide that over twenty seven and a half years. 1419 01:13:23,800 --> 01:13:27,440 Speaker 1: You cannot take bonus appreciation on it, so the depreciation 1420 01:13:27,600 --> 01:13:29,920 Speaker 1: expense there is going to be nine thousand, three hundred 1421 01:13:29,960 --> 01:13:34,160 Speaker 1: and eighty two dollars. Then you have personal property eighty 1422 01:13:34,200 --> 01:13:38,040 Speaker 1: seven thousand. The depreciation you can take sixty percent on that, 1423 01:13:38,640 --> 01:13:40,840 Speaker 1: So that's going to be fifty two thousand, two hundred 1424 01:13:40,880 --> 01:13:43,639 Speaker 1: dollars depreciation expense that you'll be able to take off 1425 01:13:43,680 --> 01:13:47,240 Speaker 1: of the personal property of your of your of your 1426 01:13:47,280 --> 01:13:49,400 Speaker 1: home right. And people are like, oh my god, like 1427 01:13:49,479 --> 01:13:51,559 Speaker 1: all of the like, how can you break it up 1428 01:13:51,600 --> 01:13:53,320 Speaker 1: like this? But you break it up because your house 1429 01:13:53,400 --> 01:13:55,360 Speaker 1: is not just a building, right, Your house is made 1430 01:13:55,400 --> 01:13:58,559 Speaker 1: up of different things. So let's dissect the property and 1431 01:13:58,680 --> 01:14:03,720 Speaker 1: really maximize on this depreciation expense. Then you have land improvements. 1432 01:14:03,800 --> 01:14:07,400 Speaker 1: Land improvements so this is like your driveway, So that 1433 01:14:07,520 --> 01:14:11,320 Speaker 1: is twenty five thousand dollars depreciation expense. You could take 1434 01:14:11,360 --> 01:14:13,920 Speaker 1: sixty percent of it is fifteen thousand. That's going to 1435 01:14:13,960 --> 01:14:16,840 Speaker 1: give you a total depreciation expense of seventy six thousand, 1436 01:14:16,880 --> 01:14:20,479 Speaker 1: five hundred and eighty two dollars right. So now let's 1437 01:14:20,520 --> 01:14:23,640 Speaker 1: just say you did not do cost segregation, and you 1438 01:14:24,000 --> 01:14:26,080 Speaker 1: just said, okay, well I have my home of five 1439 01:14:26,120 --> 01:14:28,759 Speaker 1: thousand dollars and then I had land of one hundred 1440 01:14:28,800 --> 01:14:31,320 Speaker 1: and thirty thousand. I need to back that out. You 1441 01:14:31,560 --> 01:14:34,720 Speaker 1: have about a thirteen thirteen thousand, five hundred dollars expence 1442 01:14:35,040 --> 01:14:39,720 Speaker 1: depreciation expense. But when you do cost segregation, now you're 1443 01:14:39,760 --> 01:14:44,240 Speaker 1: able to have a depreciation expense of seventy six thousand dollars. Right, 1444 01:14:44,280 --> 01:14:46,320 Speaker 1: And so now what that does is, let's say for 1445 01:14:46,400 --> 01:14:50,639 Speaker 1: my you know, for my people that are let's say 1446 01:14:52,040 --> 01:14:53,840 Speaker 1: let's just say you're in real estate, and this is 1447 01:14:53,880 --> 01:14:56,960 Speaker 1: what you're you know, you're doing. You're doing real estate 1448 01:14:57,000 --> 01:14:58,840 Speaker 1: full time. And let's just say you're investing in another 1449 01:14:58,880 --> 01:15:01,280 Speaker 1: business that's more passive, right, you don't you don't really 1450 01:15:01,280 --> 01:15:03,760 Speaker 1: have to be that active in that business, but you 1451 01:15:03,840 --> 01:15:06,439 Speaker 1: have this money that's coming in. You need something to 1452 01:15:06,520 --> 01:15:10,800 Speaker 1: offset that money. And so why not utilize cost segregation? 1453 01:15:10,920 --> 01:15:14,040 Speaker 1: Why not dig deeper and really understand, like, Okay, how 1454 01:15:14,040 --> 01:15:17,000 Speaker 1: can I really utilize the tax code and things, these 1455 01:15:17,040 --> 01:15:20,799 Speaker 1: things to my advantage? And so many people are entitled 1456 01:15:20,840 --> 01:15:23,360 Speaker 1: to these things, but they're not aware that they're available. 1457 01:15:23,479 --> 01:15:26,800 Speaker 1: So I love cost segregation. I love real estate. It 1458 01:15:26,920 --> 01:15:29,800 Speaker 1: just helps. I love depreciate anything depreciation is involved in. 1459 01:15:30,080 --> 01:15:32,920 Speaker 1: I love it. Like just starts wiping stuff out. So 1460 01:15:32,960 --> 01:15:33,519 Speaker 1: I love it. 1461 01:15:34,560 --> 01:15:36,280 Speaker 2: That's a fact. That's a fact. You know. 1462 01:15:36,520 --> 01:15:38,760 Speaker 3: One of the things we always hear from from the 1463 01:15:38,800 --> 01:15:40,320 Speaker 3: news is the state tax. 1464 01:15:40,360 --> 01:15:41,759 Speaker 2: The state tax, and we've seen. 1465 01:15:41,600 --> 01:15:44,120 Speaker 3: A lot of our celebrities fall victim to it because 1466 01:15:44,160 --> 01:15:46,200 Speaker 3: the planning wasn't done in place, so they thought the 1467 01:15:46,200 --> 01:15:49,280 Speaker 3: planning was done and it wasn't. This is a conversation 1468 01:15:49,360 --> 01:15:51,800 Speaker 3: again that doesn't get talked about, like how do we 1469 01:15:51,920 --> 01:15:53,400 Speaker 3: prepare for when. 1470 01:15:53,240 --> 01:15:53,800 Speaker 2: We're not here? 1471 01:15:53,960 --> 01:15:56,960 Speaker 3: We talked about life insurance, but the state planning is 1472 01:15:57,000 --> 01:15:58,799 Speaker 3: important and state's tax just as important. 1473 01:15:59,000 --> 01:15:59,960 Speaker 2: Can you touch on that. 1474 01:16:00,360 --> 01:16:04,320 Speaker 1: Absolutely, let's talk about it. Let's talk about estate taxes. 1475 01:16:04,880 --> 01:16:07,800 Speaker 1: So what people are not aware of is that there's 1476 01:16:07,880 --> 01:16:12,040 Speaker 1: something called death taxes, right, So a state taxes death taxes. 1477 01:16:12,080 --> 01:16:15,080 Speaker 1: These are taxes that you have to pay when you 1478 01:16:15,200 --> 01:16:18,919 Speaker 1: die if your assets is over a certain amount. Okay, 1479 01:16:19,200 --> 01:16:21,680 Speaker 1: so if you are an individual and your assets is 1480 01:16:21,720 --> 01:16:24,679 Speaker 1: over thirteen thousand, six hundred and ten thousand, I'm sorry, 1481 01:16:24,760 --> 01:16:28,680 Speaker 1: thirty sorry. If you are an individual and your assets 1482 01:16:28,680 --> 01:16:32,559 Speaker 1: are over thirteen million, six hundred and ten thousand dollars, 1483 01:16:33,960 --> 01:16:36,519 Speaker 1: you have to pay estate taxes. And what I want 1484 01:16:36,560 --> 01:16:39,479 Speaker 1: to let you guys know that estate taxes are higher 1485 01:16:39,920 --> 01:16:44,200 Speaker 1: than income taxes. Okay, estate taxes go all the way 1486 01:16:44,280 --> 01:16:48,000 Speaker 1: up to forty percent. So I actually I think it's 1487 01:16:48,040 --> 01:16:50,200 Speaker 1: the most ridiculous thing ever, Like, how do you tax 1488 01:16:50,240 --> 01:16:53,599 Speaker 1: me more when I'm dead than when I was alive working? Right, 1489 01:16:53,720 --> 01:16:58,320 Speaker 1: It's insane, But this is the name of the game. 1490 01:16:58,680 --> 01:17:02,000 Speaker 1: So if you are a couple, if your assets is 1491 01:17:02,000 --> 01:17:05,880 Speaker 1: twenty seven million dollars or more, you do have to 1492 01:17:05,920 --> 01:17:09,120 Speaker 1: pay death taxes. So a lot of times when we're 1493 01:17:09,160 --> 01:17:12,479 Speaker 1: seeing these celebrities and they're you know, they're they haven't 1494 01:17:12,520 --> 01:17:15,760 Speaker 1: set up anything, and now it's a situation where you 1495 01:17:15,760 --> 01:17:18,960 Speaker 1: know they are now paying death taxes. Now it becomes 1496 01:17:19,160 --> 01:17:21,360 Speaker 1: I mean, you know, now they owe death taxes. And 1497 01:17:21,360 --> 01:17:23,280 Speaker 1: now people are like, oh my god, they owe taxes. 1498 01:17:23,479 --> 01:17:26,280 Speaker 1: Oh my god. The state has been held up in 1499 01:17:26,320 --> 01:17:29,320 Speaker 1: probate for all this time, like why what's happening? But 1500 01:17:29,439 --> 01:17:33,240 Speaker 1: they fail to plan. Right, So, as I mentioned, when 1501 01:17:33,280 --> 01:17:37,080 Speaker 1: we're thinking about a state taxes, state taxes are higher, 1502 01:17:37,120 --> 01:17:39,519 Speaker 1: as you can see it goes all the way up 1503 01:17:39,560 --> 01:17:43,599 Speaker 1: to forty percent. So let's just say if you're an 1504 01:17:43,640 --> 01:17:49,760 Speaker 1: individual and your your assets are fourteen million dollars, right, 1505 01:17:50,400 --> 01:17:53,960 Speaker 1: what's happening is that you're now at forty percent, right 1506 01:17:53,960 --> 01:17:57,599 Speaker 1: because it says over a million dollars. So I just 1507 01:17:57,680 --> 01:18:00,479 Speaker 1: think that we have to understand that while we're having 1508 01:18:00,479 --> 01:18:04,439 Speaker 1: this conversation of estate taxes and a state planet, like, 1509 01:18:04,520 --> 01:18:07,000 Speaker 1: we have to understand exactly what we are going to do. 1510 01:18:07,080 --> 01:18:10,000 Speaker 1: The taxes are going to be due. And another thing. 1511 01:18:10,200 --> 01:18:14,160 Speaker 5: Is that is that so is that an exemption of like, okay, 1512 01:18:14,240 --> 01:18:17,200 Speaker 5: the first thirteen million, six hundred you don't get taxed on. 1513 01:18:17,920 --> 01:18:24,920 Speaker 5: Then this scale starts at that, starting at zero, yes, yes, 1514 01:18:26,040 --> 01:18:32,759 Speaker 5: so more than fourteen six that's when you hit forty percent. 1515 01:18:33,320 --> 01:18:38,320 Speaker 2: Yes, okay, yeah, fourteen turning eight real quick. 1516 01:18:38,840 --> 01:18:40,640 Speaker 1: Yeah. So now it's a. 1517 01:18:40,640 --> 01:18:46,000 Speaker 5: Situation that what it's fourteen, you know, it's fourteen. The 1518 01:18:46,439 --> 01:18:48,920 Speaker 5: thirteen million is never going to get taxed, right, it's 1519 01:18:48,920 --> 01:18:52,320 Speaker 5: the fourteen. Like if you have fifteen million, then that 1520 01:18:52,520 --> 01:18:54,600 Speaker 5: one million dollars you have to pay four un so 1521 01:18:54,640 --> 01:18:57,200 Speaker 5: you have to pay four hundred thousand dollars, right, what's 1522 01:18:57,240 --> 01:18:58,440 Speaker 5: the differences the overage. 1523 01:18:58,920 --> 01:19:02,960 Speaker 1: Yes, it's the op whatever's an excess of the thirteen million, 1524 01:19:03,280 --> 01:19:06,400 Speaker 1: thank you? Okay, yeah, so anything in excess of that, right, 1525 01:19:06,439 --> 01:19:08,720 Speaker 1: And so again someone has to pay the taxes. So 1526 01:19:08,800 --> 01:19:11,639 Speaker 1: many times we're like always thinking like oh my god, 1527 01:19:11,680 --> 01:19:13,840 Speaker 1: like I don't want to pay taxes. And I've heard 1528 01:19:13,840 --> 01:19:16,120 Speaker 1: people say, look, I ain't gonna start this additional business, 1529 01:19:16,160 --> 01:19:17,560 Speaker 1: so I'm not going to do certain things because I 1530 01:19:17,600 --> 01:19:20,160 Speaker 1: don't want to pay taxes. So it may be somebody 1531 01:19:20,200 --> 01:19:22,120 Speaker 1: in here, you know that's like, oh, well, you know 1532 01:19:22,160 --> 01:19:23,559 Speaker 1: what I'm not. I'm never going to try to get 1533 01:19:23,560 --> 01:19:25,840 Speaker 1: my assets to thirteen million because I don't want to 1534 01:19:25,880 --> 01:19:28,479 Speaker 1: have to pay I mean, you know, well fifteen million, right, 1535 01:19:28,520 --> 01:19:30,800 Speaker 1: because I don't want my family to have to pay. No, 1536 01:19:30,840 --> 01:19:32,680 Speaker 1: somebody's gonna have to pay. You know this, So you 1537 01:19:32,720 --> 01:19:34,880 Speaker 1: get a life insurance policy, you put your assets in 1538 01:19:34,960 --> 01:19:38,080 Speaker 1: the trust, you actually plan for that. That's a part 1539 01:19:38,120 --> 01:19:41,160 Speaker 1: of a state planet. Thinking about your taxes is a 1540 01:19:41,200 --> 01:19:44,360 Speaker 1: part of a state planet. So we can't just be like, oh, okay, 1541 01:19:44,360 --> 01:19:47,040 Speaker 1: we're going to have insurance and another thing, stop dying 1542 01:19:47,080 --> 01:19:51,080 Speaker 1: with tax that because guess what, before anybody get paid, 1543 01:19:51,240 --> 01:19:54,840 Speaker 1: the IRS is coming for their money. Right, and that 1544 01:19:54,880 --> 01:19:58,600 Speaker 1: don't matter if you over thirteen million or not. You 1545 01:19:58,600 --> 01:20:02,040 Speaker 1: could be at one hundred thousand, right. They will come 1546 01:20:02,160 --> 01:20:04,719 Speaker 1: for their money. So you guys have to make sure 1547 01:20:04,840 --> 01:20:07,960 Speaker 1: that you all aren't leaving debt and you're you're handling 1548 01:20:08,320 --> 01:20:11,200 Speaker 1: your business if you you know you're serious about building 1549 01:20:11,240 --> 01:20:14,880 Speaker 1: wealth and starting businesses and you know, building assets, we 1550 01:20:15,000 --> 01:20:17,120 Speaker 1: have to focus on taxes. 1551 01:20:18,200 --> 01:20:23,880 Speaker 5: Well, thank you, Thank you for your time. Very valuable information, 1552 01:20:24,040 --> 01:20:26,559 Speaker 5: So much information. People don't learn about this kind of stuff, 1553 01:20:26,600 --> 01:20:30,320 Speaker 5: like how can they follow you? What's your Instagram? Website? 1554 01:20:30,400 --> 01:20:32,280 Speaker 5: All of that information if they want to kind of 1555 01:20:32,360 --> 01:20:34,200 Speaker 5: you know, tap in with. 1556 01:20:34,200 --> 01:20:37,679 Speaker 1: You, absolutely, guys, tapping with me. My Instagram is miss 1557 01:20:37,720 --> 01:20:41,240 Speaker 1: Business one on one, so that's MS dot business one 1558 01:20:41,640 --> 01:20:45,360 Speaker 1: zero one. My website is miss Business one on one 1559 01:20:45,400 --> 01:20:47,680 Speaker 1: dot com very consistently, so you can follow me on 1560 01:20:47,720 --> 01:20:51,320 Speaker 1: Instagram on TikTok under the same exact handle. 1561 01:20:52,400 --> 01:20:55,080 Speaker 5: There you have it. I appreciate you as always. 1562 01:20:54,720 --> 01:20:56,680 Speaker 1: Thank you, problem, thank you for having me. 1563 01:20:57,439 --> 01:20:59,960 Speaker 2: All right, all right, good night y'all. Love is love. 1564 01:21:00,000 --> 01:21:01,439 Speaker 1: Oh, good night, guys. 1565 01:21:02,320 --> 01:21:06,000 Speaker 7: An illegal alien from Guatemala charged with raping a child 1566 01:21:06,000 --> 01:21:09,800 Speaker 7: in Massachusetts. An MS thirteen gang member from al Salvador 1567 01:21:10,040 --> 01:21:14,200 Speaker 7: accused of murdering a Texas man of Venezuelan charged with 1568 01:21:14,280 --> 01:21:18,160 Speaker 7: filming and selling child pornography in Michigan. These are just 1569 01:21:18,240 --> 01:21:22,000 Speaker 7: some of the heinous migrant criminals caught because of President 1570 01:21:22,040 --> 01:21:25,639 Speaker 7: Donald J. Trump's leadership. I'm Christy nom the United States 1571 01:21:25,640 --> 01:21:30,439 Speaker 7: Secretary of Homeland Security. Under President Trump, attempted illegal border 1572 01:21:30,479 --> 01:21:34,040 Speaker 7: crossings are at the lowest levels ever recorded, and over 1573 01:21:34,080 --> 01:21:37,320 Speaker 7: one hundred thousand illegal aliens have been arrested. If you 1574 01:21:37,400 --> 01:21:41,240 Speaker 7: are here illegally, your next you will be fine nearly 1575 01:21:41,320 --> 01:21:45,320 Speaker 7: one thousand dollars a day, imprisoned and deported, you will 1576 01:21:45,360 --> 01:21:49,000 Speaker 7: never return. But if you register using our CBP home 1577 01:21:49,080 --> 01:21:52,439 Speaker 7: app and leave now, you could be allowed to return legally. 1578 01:21:52,800 --> 01:21:53,599 Speaker 7: Do what's right. 1579 01:21:54,200 --> 01:21:55,080 Speaker 1: Leave now. 1580 01:21:55,360 --> 01:22:00,000 Speaker 7: Under President Trump, America's laws, border and families will be protected. 1581 01:22:00,000 --> 01:22:02,400 Speaker 8: It is sponsored by the United States Department of Homeland Security.