10 Ways For Entrepreneurs To Save Money on Taxes Feat. Tom Wheelwright

let's say though you could hire LeBron James to come in and substitute for you and play that college player one-on-one now who's gonna win why would you ever put yourself in a position where you're going up against someone who knows more than you do when you could put somebody in there who knows more than they do this is the fighting entrepreneur the podcast dedicated to entrepreneurs looking to change the world learn how to start build and scale a business in today's highly competitive business environments here's your house the fighting entrepreneur on a single what's up you crazy fighting entrepreneurs it is onyx and all your host for the fighting entrepreneur your favorite person in the world back with an episode that's gonna save you and make you a ton of freakin money I've got the esteemed honor of bringing on a man who's saved me Millions and I don't just say that lightly okay I say that with full confidence I'm telling you the only thing that burns a hole in me is that I wish I had met him three to four years before I did because I swear I lost I estimated about four maybe five million dollars that are not in my pocket now because I didn't know Tom all right so with that said today's episode is gonna be ten ways for entrepreneurs to save money on taxes I am bringing to you who I believe to be the number one tax expert in the world that's right I said in the world this guy goes around speaking in like Kazakhstan and stuff so he knows tax code he's just a great guy and he's always been I mean he's such a busy person he's the tax advisor and he's also a rich dad advisor so he's a main advisor to Robert Kiyosaki so he's working with the celebrities of celebrities yet every time I text him whether it's 6:00 in the morning or 10:00 at night I don't know how he gets back to me within three minutes that's just the kind of person he is so he's a good dear friend a brilliant entrepreneur he's out there saving people money the biggest mistake you could make today is not listen to him that's honest to god the biggest mistake you could make so I'm really really excited to have on my good friend Tom wheelwright Tom thanks for being here with us man thanks for having me on it's always good to be with you always good I appreciate that we were joking earlier just to give you guys kind of you know the impact that Tom has on his clients because you heard me I'm singing his praises the bottom line is this you saved someone millions of dollars bill gonna sing your praises like it's just how this is how it works out I was at an event recently in the joke I was just telling Tom is and maybe Brad some rock will listen to this maybe we'll clip this out Tom and send it to Brad maybe all laugh I was at an event for Brad some Rockets multifamily real estate in bed and very early on Brad spoke about Tom and how tom has helped him save so much money and and and then he just he just kept talking about Tom like his name kept coming up again and again and again and I made it you know I had a joke with my wife I said man next time I come to Brad's event I'm gonna bring a bottle of vodka every time he says Tom I'm gonna take a shot and by 11 a.m. on day 1 I'm gonna be damn out but she turns around and said something very funny she goes I know you think that's funny but you talk about Tom just as much just FYI like I'm like you know it makes sense you save someone so much money they'll talk about you it makes total sense listen before we get started are you a member of learned nation come on get over to L you are n com get a free account listen we're gonna put 10 million entrepreneurs into this self delivered platform we are building a massive community a movement worldwide of entrepreneurs because I believe very confidently that if we want to change the world if you want to cure world poverty if you want to bring education to every child you want to solve you know you wanna bring peace to the world it's not gonna be government it's gonna be entrepreneurs to do it it always has been so you can either be a part of our movement go get your free account at L you RN comm or you can sit aside and watch us move by you don't do that all right so go to learn comm right now if you're listening to this on iTunes make sure to leave us a great review go to on ik podcast a ni k podcast comm for all of our show notes and if you're on youtube come on you got to share this out you got to hit subscribe leave a comment click the little bell thing you click the little thumbs up icon and give Tom a shout out man he's taking time away from his personal life his business to be here today to teach us it's a complete complete honor Tom thanks again Tom you know what before we get into the rounds because you have ten specific strategies you're gonna share with us today that aren't heard about you know common stuff that's all over the place how the heck did you follow up with taxes like why do you like taxes so much Tom it's it's not a common trait for people well you know Einstein said the most difficult thing in the world understand is income tax I thought well if I can if I can master something to Einstein had trouble with I'm probably doing okay actually I love taxes because to me it's a game and I love games I grew up playing gin rummy and carts you know with my mother and poker and with my buddies and I just I love games I love games and taxes like you said it is the number one expense than anybody has and it's actually the number one pain most people have financially because a tax dollar saved has an emotional benefit to it as well as a tangible benefit to it and people hate paying taxes so they don't see the money being used you know the way they want to be used and so they hate paying taxes which is actually why the tax law has evolved the way it has into a series of incentives right because the government figured out many years ago back from the 60s primarily that people hate paying taxes and if they can given and tax incentive it's actually worth more to the person than a Direct Subsidy so that's why they're the taxes basically a whole 6,000 pages of incentives and that's really what it is it's Frank and primarily for entrepreneurs and so here's a crazy part and we're gonna have you back for another episode you know I already talked about it for a freedom Friday episode because see when you say that there's gonna be a class of people that say there we go another conservative doesn't want to pay taxes but what I learned from you on the first call we ever had which was a big breakthrough call for me is what you said was listen not paying taxes is not evil as a matter of fact using the tax code to benefit you know you to benefit yourself by not having to pay is you end up having to do things make investments in things that end up benefiting the economy and the government far greater than what your tax dollars could have so it's a true win-win-win and so it's easy to believe the narrative that the politicians like to put out there which is not paying taxes is evil but if you start to truly understand it it changes your paradigm and I don't want to get into that in this episode because that will be a freedom Friday episode but I I just love the fact that you have figured it out and made it so that US entrepreneurs who work our butts off right like we work hard I work hard and and at the end I should keep more of my money and you you know and at the same time though I want to do good in the world I mean I give a lot and it's important to me that I give a lot and most entrepreneurs are not selfish they like to give up give back a lot but if I can give back a lot and impact people while also impacting myself positively that's a win-win-win you said something else Tom that really hit with me and you said the emotional benefit of saving a dollar on taxes is so much more than than earning another dollar but think about this right you taught me this also a dollar saved then earning you cumulative interest for the next 30 to 40 years is not a dollar anymore it's it's tens if not hundreds of dollars and again where does that money go you either spend it which impacts the economy you invested in property which impacts the economy so it's really amazing stuff it's really amazing stuff that's why I'm very excited for the entrepreneurs listening right now we're gonna give you ten ways to save money and to save taxes but Tom we do have a tradition here at the fighting entrepreneur which involves you raising your right hands so if you can follow along raise your right hand and repeat after me i tom wheelwright i tongue will write do solemnly swear do solemnly swear to tell the truth and nothing but the truth to tell the truth nothing but the truth and reveal the tax strategies of the rich and reveal the tax strategies of the rich I love it sweet awesome let's do it man let's move into round one which will be strategy number one let's dive in Tom what's your first strategy for our entrepreneurs to hear well I think number one is to recognize that any expense you have can be deductible okay so it what we have to remember is that the tax law you are taxed on your net income okay it's a net income tax now for four employees it's not it's a gross income tax because your tax on every dollar you earn but for entrepreneurs it's a net income tax meaning that you earn the income but any money that you spend back into your business they put back in your business and as long as we make certain tests can be deductible meaning that it reduces your taxes by whatever your tax rate is so you're in a dollar of income as an employee you're gonna pay and you're a forty percent tax bracket you're gonna pay forty cents on that dollar of income but as entrepreneur if you're in a dollar of income and then you have a dollar of expenses you're gonna pay zero taxes on that income because you use the money in the business see this goes back to our you know freedom Friday comment which is you know you have understanding that the government wants you to put your money back into your business so then the question is okay so what does that mean so what I get all the time is people will ask me tom is this deductible is this deductible and I wanna help you rephrase the question okay I think one of the things that entrepreneurs do really well is they come up with better questions and the better entrepreneurs come up with the best questions right and the question is that if is this deductible is how do I make this deductible and so there are four primary tasks and this is very important for everybody to understand the first test is that the expense there has to be a business purpose for the expense and that's a pretty easy test to meet that means there's some reason business reason that you're spending money but the next two tests are a little more difficult the next one is it must be ordinary meaning it's typical in your business so let me give you an example so let's say an insurance agent takes his best client to Hawaii because they're they're spending a hundred thousand one hundred fifty thousand stars of premiums a year and so they take their best client to Las Vegas for a weekend in Las Vegas that would be pretty typical I find among you know high high earning insurance agents they're gonna do that kind of stuff that's a that's a sales technique that that they do all the time if your accountant takes you to Las Vegas that's probably not typical for your accountant okay it's remembering the CPA stands for cheapest people in America but it's just gonna say come on Tom let's go to Vegas let's do it that's not typical okay so would not be an ordinary it wouldn't be a typical expense for me but it might be a typical expense for you okay and then the third one is it's got to be necessary this is the most important one this means that the the purpose of the expense is to make you more money right that's the purpose of the expense and here's what's great about I think about the tax law if you meet those first three tests in other words there's a business purpose it's a typical or ordinary expense in your business and it's going to make you more money what's really going to be the outcome of spending that money it's not that the the outcome isn't going to be just that you reduce taxes the outcome is going to be that you make more money so the tax law actually encourages you if you follow the taxes you'll end up actually making more money than if you don't follow the tax law because the tax law is actually there incentivizing you and giving you the instructions on how to make more money because the fourth the fourth item is very important and that's documentation well Annika you've got to have seen you've seen thousands of entrepreneurs and you know one of the things they struggle with the most is documenting their expenses and whether that's in their bookkeeping or whether that's having receipts or whatever but you also know that documentation is a really important part of this okay if you can't document it then it's not real and and if you think about the IRS by the way the IRS if you pretend to document it they will pretend to give you a deduction you know the very first thing that iris will look at they audit you is your documentation so you've got a document that and it's a real receipt by the way your credit card statement does not do it for you it's got to be an actual receipt and you're gonna write on the receipt you know for example let's let's give a big one so one of the big deductions that people miss is meals okay it's a huge deduction I like you and I've talked about this one it's meals you take you for example you go to dinner say once a week because we want to be ordinary right typical once a week you take some of your dinner to discuss business well let's say that that person you're taking to dinner is your spouse okay but you're gonna use that spouse as a sounding board as somebody who's going to give you feedback that you might not otherwise get from an employee or somebody else okay well does that mean the test is their business purpose yes is it is it typical that you might once a week take somebody to do you know go to dinner with somebody or a lunch or whatever and actually in a casual restaurant setting get some of that feedback that you need yeah of course that's typical is it necessary it's gonna make you money well yeah that's that's the whole point of the conversation is to make you money and then you just document it okay so that's a really good example meals is a big one that people miss because they don't they're not focused on what the meals about they're focused you know they go and have a good time and they you know they have a drink on and that's fine just understand that if you don't have that business conversation if that's not the purpose of the meal it's not deductible and you want to have meals that are detectable that's fine but recognize that they could be deductible right so what can I do to make it deductable and that's that's the key so meals is a big one so another big deduction I think the biggest deduction people miss my experience is homeless okay so let's so is this are we moving on to strategy number two we are number two would be home office so home office is a big one and it's a deduction okay it's specifically allowed in the tax law and it's got very specific requirements okay and I'll give you a couple of the requirements one of the big ones is it has to be an area in your home that is used for nothing but your home office so don't put a bed in there I mean I'll tell you I'm actually recording right now from a room that is not qualified to be a home office it has a bed in it okay it has my my grandson's crib in it this is not qualified so I don't take this space even though I record in here I don't take this space as a home office like you have other space that is just for home office and that's what I take for my home office so I understand it has to be only used for business and that's an important when the IRS will ask you that but what I gave a lot is I get a lot of people telling me that their accountant told them not to take the home office deduction because it raises a red flag and what that if you ever get told that it means that it's time for a new tax preparer because if you do it right now the Home Office has not been a red red flag for over 20 years okay 20 years ago 25 years ago it was absolutely a red flag but today what the red flag is when you have when you you have to disclose that you have a home office is when you're on a Schedule C now a Schedule C meaning that your sole proprietor is a red flag but it's the Schedule C that's the red flag okay the home office is just a secondary red flag because you and the only reason you've disclosed is because you have a Schedule C so having that Schedule C is just it's it's bad yeah five times greater chance of being audited with the Schedule C than without a Schedule C so there's your red flag right there and and and that basically by the way that's that strategy number three we're going to come back to strategy number two strategy number three never have scheduled see what okay are we ready to talk about that or you want to come back let's go back to home office because whole office actually is a much bigger deal than people think it is people you know the other thing the accountant will say is well you know it's really not that much well okay let's say for example that you have ten ten rooms in your home and one of them is a home office that means that you're gonna be able to deduct 1/10 or 10% of everything you spend on basically everything you spend on your home so your maintenance your cleaning your utilities um now mortgage interest is not as deductible as it used to be taxes are not as susceptible as they used to be all of these things if they're in your home office now they're deductible okay because there aren't the limitations right the on business taxes business taxes know about same limitation it's personal taxes so you have all of these benefits but here's the big one and this is one nobody ever gets so cars right people don't need up enough of their cars and here's why because they don't have the whole office so we're gonna connect the two here so the very first trip you take during the day let's say you go from your home and you go see a client that's considered a commute so that's non deductible and then you go see clients all during the day and you come home at night and that last trip home is a commute so what that means is probably 40 to 50 percent of your travel during the day is that commute to and from either a client or an outside office or something like that all right so that means you let's say your car is now right now is 50 percent deductible because you only use it for 50 percent business because the rest of time it's community right now all of a sudden you have a home office alright every morning you go to your home office and you commute 30 feet and then your very first trip out to that first client is no longer commute when you back you come back to your home office you then commute 30 feet from your home office to your kitchen so here's the thing this is in the IRS instructions on home office they actually talked about this that by having that by having a home office you and you have to use it right okay so you're actually doing your administrative work in the morning at your home office I do this every morning I start my morning with my administrative work I go check my emails I do all that good administrative work and then I start you know into into my day and doing things that I might and I might do them on my home office or I might have to go into a meeting at my office at at work now here's another thing people will say well tax preparers will say well you can't have two offices that's not true okay now there's very specific rules and you need to sit down with a tax advisor to really understand what those rules are but you can make what's important for your home office is that it's your primary office okay it has to be your primary office and they're very specific requirements that you need to talk about with your accountant to know what those those are because they're very very specific and they're going to be different for every different situation so I'm not going to talk about them here but the the key is you can't have for example my office at my CPA firm I go there only for meetings that's the only time I use it I've the rest of time in my home office okay so my home office is my is very clearly my primary office okay it's very clearly my primary office so I always start first thing in the morning I do my administrative work I may then go I may have been go to the office for meetings I might go see clients I might go see some real estate that I have and then I come back at the end of the day I'm going to come back to my home office I'm gonna clean up you know and my home office for the rest of the day well what that does is now now the car right has a much bigger percentage of business use and remember your cars only deductible to the extent of your business use so if you can shift your business shoes let's say you buy a and and here's gonna buy and here's gonna be your strategy number four which is where you'll see that these are all connected these strategies all get connected is bonus depreciation so we we now let's say you go buy a $80,000 SUV and it weighs at least six thousand pounds because that's what asked away well then okay now you have a home office okay well that instead of being 50% now you're 90 percent business use 90 percent of that $80,000 or seventy two thousand dollars is now subject to bonus depreciation which means you get to deduct seventy two thousand dollars that year you buy it so because you have a home office so if you were let's say you were didn't have a home office and you were less than fifty percent you don't even get bonus depreciation but now you're more than fifty percent you're now 90 percent and you're going to get bonus depreciation because you have a home office so you know for all of those accountants out there that say home office is a waste of time and you just don't get very much I'm gonna say look 72 thousand dollars for most of us would be a pretty nice deduction to have and would wipe out an awful lot of income at a thirty or forty percent tax bracket that's a huge huge number and that automobile expense is there because you have a home office so is the home office deduction it's an automobile expense deduction but that's a it's a big deal yeah it's crazy because when bonus depreciation came out there was a you remember I called you last year there was actually a scenario in which I could get rid of my existing Range Rover and buy a brand-new one and come out on top right but you know we talked about some of the rules around that and and in all of this but if you understand the rules and if you connect all the pieces together there's actually some really great benefits that you can achieve and and you're right I've actually I have really seen the bonus depreciation and what it's done I want to come back then since we talked about the home office and that connected to number four which was how that will talk about bonus depreciation what that means in a second what should we talk about the number three which was never have a Schedule C so how do you all in your business is really really important regarding how much tax you pay okay most my buddy Garrett Sutton who's a asset protection lawyer he says he says CPA stands for cannot protect assets and okay because he gets very frustrated because CPAs will say all you need an LLC or you don't need a corporation because you know that's just a waste of money in a waste of time and all that kind of stuff and I'm going but wait a minute you want to protect your assets on top of that if you have a limited liability company you can elect to tax that limited liability company any way you want so you can have a limited liability company that provides great asset protection and you can tax it as an S corporation or you can tax it as a c-corporation you can tax it as a partnership you you really get your choice on how you tax that so having that LLC is going to be a really important thing but if you have the LLC and you don't make any election and you're the sole owner your business you're gonna be back on a Schedule C so the fact that having that LLC is not enough so Tom Wood is a Schedule C if you're a sole if you're a sole proprietor you're a nut here you own the business yourself and you just went in and set up a bank account basically that's what you did you set up a bank account on exceed all DBA you know I like coffee okay and and and and so you you set up this I like coffee franchise and you start operating under your personal name or you do an LLC you set up the LLC limited liability company and you own one hundred percent and now it's I like coffee LLC and now what you do is now when you report your income and expenses instead of reporting on a separate tax return you're gonna report them on your personal tax return which I hate putting stuff that I wanted people to know on my personal tax return because we give it to banks and all sorts of other people but as Schedule C basically is how you report that business now why doesn't the IRS like Schedule C well it's really simple you think about your financial statements okay so if you're an entrepreneur you should you really should be focused on three different financial statements your income statement your which is your amount of income that comes in and your expenses going out your balance sheet which is your assets liabilities and then what's left over which is your net worth and your statement of cash flow okay now a Schedule C is basically your income statement and that's it well a Schedule C is really easy to manipulate because there's no there's only one side of you know we have what we call double entry accounting which means you have two sides of every entry you have a debit and credit which I know that's just accountants speak but what it really means is is that it balances all the time but a lot of times the other side of that let's say you have cash coming out of your bank account and on an expense okay so one side is the cash coming out the other side is the actual expense well your Schedule C all it shows is the expense it doesn't show the cash coming out that's a balance sheet item so it doesn't show both sides of the transaction which owns one side of the transaction well if you think about it and you go okay how do you know you've got a straight line because you got two points and there's a line in between those two points and so now you got it you got a line going through it okay now let's say you take one of those points away name that all the lines you want through that C so the IRS doesn't know if you're telling the truth or not and so they believe you're probably not telling the truth that's that's really that they don't believe a thing is remember under the tax thought you are guilty until proven innocent and there's actually good reason for that it's promote and I know this is a Paul see time but from a policy standpoint look not that the tax law says no expense is deductible unless we say it is that means you have to prove it's deductible okay and all income is taxable unless we say it isn't so if you have that income that you say is not taxable you have to prove it's not taxable well that okay now that makes sense right so on an on an income statement only you have one side of a transaction how do you prove that that's accurate well that's a tough thing to prove to the IRS and the problem is with the Schedule C you're only showing one side so they don't they don't bleed you basically they're just not gonna believe that that's accurate they're gonna come in and audit you and make sure that you're doing that accurately let's say instead and this is something that all offerors this is just basically entrepreneur 101 right from a tax standpoint you instead of being a Schedule C most entrepreneurs should probably just be an S corporation an S corporation you can still be a limited liability company from a legal standpoint still get that ass protection but you make an election and what it does it does two things most importantly it gives you a separate tax return for your business and that separate tax return is called an S corporation tax return it's 1120s and it's completely off of your personal tax return now the number comes back into your tax return okay because you're taxed on it not the corporation but again it's a separate tax return well that tax return has both an income statement and a balance sheet so now the IRS is much better belief that you're doing it right because you're showing them both sides of your transactions and they know that's a lot of accountant speak but all you have to remember is don't do a Schedule C do an S corporation and if you get those two things and here's the thing so on an S corporation remember on a Schedule C you have to report that you have a home office under this corporation what you do is according to IRS you just reimburse yourself for the home office expense from the corporation it's not taxable to you it shows up on your tax return for your S corporation as office expense there is no separate form to show that you have a home office so the only way the IRS would ever know you have a home office is if you got audited so it can't possibly create an audit because the IRS doesn't even know you have a home office and tell me on you so it's a if if you're being told that don't take a home office because it's a red flag it's only a red flag because you didn't do the other thing that's important which is to not be a Schedule C go out and do an S corporation C and the point here is on it is that these things all work together right so now you got your automobile experience your home office you're you're not being audited all of those things come about because you know all the same you know off because you're working together so before we move on to talk about bonus depreciation for a couple minutes I can already feel it I can sense that our listeners are thinking what the heck I want to talk to someone how do I do this what do I do oh my god I'm not doing this because we're only at 3 and a half like we haven't finished number four so I never do this for people usually but I'm going to do this now the URL to go to if you want to schedule a free call to talk to a tax adviser that is a part of Tom's internet work these are the best of the best around the country go to wealth ability ok wealth WEA LTH ability ABI L ity comm wealth ability calm you'll have a little button there you click your scheduled call and you'll be talking to someone who's almost as smart as Tom may be you know definitely not as smart but it's pretty damn close now there's a lot of people smarter than me well then I want to talk to them dear we do we have we have we do have an entire network of accountants in CP yeah have joined our network so that you know I get I get to train them yeah that one a lot of fun I do want to warn everyone who's thinking about going into this first of all a great accountant there's gonna be a cost to it so please you know get on a free call eventually you got to engage their services if you want the help that comes with it the first time I ever called Tom he was advised I was I was recommended to call him by by Robert Kiyosaki esteem right so I called him right away and then we talked and then you know he told me how much his advice would cost and I almost fell off my chair I was completely in shock I thought wow but within like three months of doing it it's like if if I asked you for a dollar and every time you gave me a dollar I gave you a seven back or ten back or twenty back how many times would you do that transaction with me so it's like that's how it so a lot of people I find what they do with account and this is what I did guilty okay I went to my neighborhood accountant down the street this is someone I knew since I was a child I mean he was he's a good person I loved him I still know him but he's an accountant for local small like he's an accountant good accountant for employees with a little bit of a twist in their taxes you know a local doctor's office or whatever I had gone way past his abilities but a lot of people try to they discount shop thinking that all accountants are the exact same and I'm just here this is not Tom's not asked me to say this I'm telling you is one of the biggest lessons I learned as an entrepreneur is don't there's one place you don't discount shop is with your CPAs with your lawyers and with your wealth managers you just you do not discount shop those people because well you get what you pay for so all right Tom bonus depreciation my understanding of it is the ability for us to deduct a whole crapload of something we buy for the business in year one a way it used to be up until recently was overtime so that if you've spent a hundred grand you know you could depreciate it over so much time but now it's like a large portion of that goes boom right in the first year is that kind of a correct summary I think that's a great way to put it it's you know we used to have you know we think of it as an income tax it's actually a consumption tax now because it's only the amount that you actually consume that is taxable so if you don't consume it if you actually put it back into the business you're getting it a deduction for it and it doesn't matter anymore used to matter whether that what the money what the money was spent on was it spent on an expense that was you know you're gonna use in the next five days or as a deduct was it spent on something you're gonna use over the next five years now something you're gonna use over the next five years gets just as much of an induction is something you're gonna use over the next five days so whether you spend it on you know you know that meat meal that we're talking about that you're gonna use immediately or whether you or whether you spend it on a car which you're gonna use over the next five years doesn't matter you spend it on equipment that the microphone you're talking into that's deductible you know the desk that you have that's deductible and what's really interesting is they change the bonus depreciation rules not only is it now a hundred percent deductible the first year but even used equipment is deductible the first year so there have to be brand new used to have to be brand new we and then we have this whole 179 a lot of people have heard of 179 we don't even bother with 179 anymore because bonus depreciation is so much better than this section 179 deduction so for the next few years at least until 2023 we have bonus depreciation at a hundred percent so that means that anything you put into your business you can you know a lot of your let's say you remodel your office a lot of that it's going to be deductible not all of it but a lot of it's going to be deductible you could go by on if you are saying that you were down across or xtina and you're looking at multi-family housing well multi-family housing normally that's used property right you're not gonna go build your a brand new apartment building so you're gonna you're gonna take well when you buy a piece of property you're actually buying four different things you're buying the land and the building but you're also buying the land improvements all the landscaping the outdoor lighting that the infrastructure all that custom and you're buying the contents of the building well the contents of the building and the land improvements are all subject to bonus depreciation so let's say you buy a million dollar building this math is phenomenal you buy a million dollar building you put down $250,000 unmade are building new not even put down more than 50,000 okay so you invest 250 thousand year first year deduction is going to be somewhere between 250 and 300 thousand dollars on that to $50,000 investment of kind of free building it is it's like I'm getting this huge deduction for something that's gonna last for the next 40 years is a screaming deal okay and so you know I'm not here to say I don't want to pay taxes or I do want to pay taxes I'm just telling you that if you understand the tax ought there for enough per there's no reason to be paying high taxes it's just you're just not understanding the tax law if you're paying high taxes and it's funny about it because last year 2018 was the year I built the Learn center so we invested a ton of money and video equipment AV equipment desks and I don't know what else what we did and there was a conversation happening at the end of last year because we got to figure out like okay any tax strategies needed in 2018 to eliminate taxes I recalled Tom and he was like you don't need like we don't even need to talk I'm like why he's like cuz there's no way you're paying taxes with bonus depreciation and the fact that you just built this Center with all the stuff you bought I mean there's gonna be carry forward probably losses because it's just the way that so and you know what that was helpful it was super helpful gave me more net income at the end to be able to continue to invest in the center and it encouraged me to frickin build this place like it it is actually helpful in the example Tom gave of buying the building someone may say that's ridiculous you could you write off the whole thing a rich person who has a million you know who has that much money to even buy the well you just bought a building that maybe has 10 20 30 units you're providing for people that's gonna increase the real estate taxes it's gonna increase the value of the area the economy of the area like that's far far more impact than a one-time tax you would have paid for for the building so but anyways we're let's move a long time because we're getting a little bit behind but it's been awesome I just I'll I don't know every time I don't like taxes but every time I talk to you you talk about saving taxes and also an I like taxes so I like talking taxes number five number five what's what so let's do a cool one this one's kind of fun actually gotten a little play out of this recently so let's say every once in a while you go on a two-week vacation and while you're on that two-week vacation you put your house on Airbnb the income that you get from Airbnb is not taxable Wow you if you lease your house for 14 days or less for 14 days or less you rent it out for 14 days or less during the year the income is not taxable to you so so let's say I mean for example that this is actually came about because of the Olympics right the Olympics would come to a city I came to my hometown Salt Lake City a few years ago and people would just leave town they say look I'm gonna leak town you know rent my house out for the two weeks of the Olympics and they might rent it out for a thousand or two thousand dollars a day so let's say you run out for $2,000 a day for 14 days that's $28,000 non-taxable income tax free income that you can just put in your pocket though say just so you know you can actually rent it to your company so you might use your home for business purposes you might rent up use the whole the entire house you might decide you want to bring your key employees in and you kick your spouse out and kick your kids out and say go somewhere else and and then you just use you might use your house or you might have vacation oh that you know what normally you just don't want to rent it out do anything but for 14 days a year you're going to rent out and not pay tax on that income there's just all sorts of things you can do with this I actually recently got invited to speak in an Airbnb conference just because this is such a cool tax benefit it's it wasn't ever intended for Airbnb but because Kate came and came out long before Airbnb was around but now a lot more people can use it because you know you you just you know you go on vacation or white let your house that they can why not Airbnb it Wow awesome well there you go everyone you just put an extra you know a few thousand to ten thousand dollars in your pocket if you're willing to go with it that that's that's really cool alright number six so far we are this is awesome we're lots of way through here alright so number six is travel so again we go back to the the basic rules okay can you make your travel a business purpose can you make your travel ordinary necessary ok well let's think what are you gonna do while you travel well if you are gonna just go out and have a pure vacation I mean I just spent five days at Lake Powell with my kids that was pure vacation I mean there was no business purpose there I just want to have fun on the lake with my kids great but let's say that you go no you know what I'm gonna go and let's say that you're going to your real estate investor I'm gonna go look at real estate all I have to do is spend four and a half hours a day during the weekday during the weekdays doing business four and a half hours and then the primary purpose of the trip is business because it's four and a half out of eight hours is more than 50% so that means the rest of the time during the day I can do whatever I want the weekends I can do whatever I want so I take a two-week trip I only have to work basically 40 45 hours I mean think about it I'm working ten days four and a half hours a day I'm gonna work 45 hours in two weeks and but if I can work for five hours in two weeks than the rest of the time the whole thing is deductible so it's an all-or-nothing okay so that we can you can make a lot of your travel deductible simply by having a real business purpose and you know go see clients go see you know go see prospective clients you know if you're in business go go learn something I mean you were in Dallas right for the last last weekend right and when you're in doubt you're in Dallas and you're learning something you're you are doing business you're doing something good but you I hope you had fun in Dallas too right I mean in the evening right you had some fun you want saw some things you might go see a show whatever you can do all that and still all deductible so a lot of people don't deduct travel just because they don't know how to need up travel so I have a question so this is interesting is like right soon I'm gonna be going to I went to Toronto recently twice and that was for business I went there to speak at an event ended up staying an extra day or two had business meetings with the people who had arranged the events soon I'm gonna be speaking in Singapore Malaysia I'll be there for a while because I have to do multiple events so that all becomes fairly easy to understand how that's a business travel business let's say I'm going to Switzerland okay I don't have any clients there I don't have any contacts there does the four and a half hours a day of work have to be location dependent like I have to be doing something there has to be a reason for me to be in Switzerland right and actually when you travel internationally it's proportionate it's not all or nothing so so if you spend 50 percent of your time doing business than 50 percent of the trip is deductable so foreign travels a little different than domestic travel but let's say for example this takes four lines I think that's a great one okay let's say you decide that you're gonna go interview some bankers you're going to talk about what are you gonna do with your money well how are you and how you gonna set up your offshore accounts you're gonna so all you can do let's say you're going to do tax planning in Switzerland okay which is legitimate tax planning right and you spend your time doing tax planning for your business in Switzerland okay all of a sudden that's that part of the that part of the trip is deductible so because that's part of your business right but part of your business and or let's say you're investing good one for you is you're investigating how to do this for up for all of your your viewers right you you're looking all of your members all of your viewers and going this is how you do it so you go investigate something I mean here's the thing about entrepreneurs we're all about coming up with new ideas and exploring new ways to do things why not I what looks better than doing in a foreign country and actually learning from that country because they have a completely different way of looking at things than than we do in the US right so if I go to for example I was in Bucharest Romania I'm going and I was actually speaking there so that was an easy one right like you say sometimes it's easy but I'll tell you what I learned so much they have a completely different way of looking at business a completely different way of doing things and so there's so much you can learn only by being there so I would look at it so this is why I say when you look at at the tax line you go I'm gonna do what the tax guy tells me to do you will make more money because you have to do things that make you money in order to make to get the deductions and so to me it's a like I love what you say it's a win-win-win right because you're helping the economy okay at the same time you're helping your students at the same time you're actually making more money and reducing taxes so you've got all sorts of good things going on because you're doing what the tax law tells you to do that's awesome love it yeah I love it travel and getting travel deducted if you're if you're listening is one of my absolute favorites because my wife loves to travel we like to take vacations it's usually a good opportunity to take a break but I'm an entrepreneur so the thing is when I travel I know I'm gonna be working so if there's a way to kind of fuse the two together and be able to deduct all of that away from income that's that let the government pay for some of my fun too it's great love it Tom all right let's move on to numbers number seven so let's talk a little bit about documentation because this is actually a big one that it's not sexy it's not exciting but I'll tell you what it will make the difference between having a positive experience with the IRS and your accountant or a negative experience first of all when you have and what I mean by this is you hire a bookkeeper okay you hire a bookkeeper who is not your spouse and who is not related to you and can hold you accountable because that bookkeeper you want to make sure that their professional bookkeeper bookkeeping it's not a very expensive service okay it's not very expensive but having that documentation and somebody who really makes sure that you're documented that you're you've got things in place that everything ties out let me tell you what it'll do for you first of all you're never going to have to worry about mayurasana because you're gonna have all the documentation that you need okay number two is when it comes time to do your taxes at the end of the year it's gonna be half as expensive okay because you're gonna turn over a really nice set of books to your accountant and your accountants gonna say wow this is great this is not gonna be very expensive at all because most of the time we spend on doing tax returns is spent doing bookkeeping okay that's there's no question most of the time we spend is doing bookkeeping it reminds me of think caring with your partner's name again real quick yeah Karen right yeah how much she loves working with my dad and even usually even you said you've said in the past cuz my dad does a lot of my like you know not my main company not learned but he does a lot of my other companies he does the bookkeeping and every time like I know that she would work with him she's like I love working with him because he gets me everything I need like you know I said don't you know don't hire relative I would say your dad is a kind of an exception that proves the rule type of guy he's like all over us he keeps me in check I'll tell you there's only one person who can get me to respond to a text and answer questions that fast it's him because he doesn't let it go and he doesn't forget stuff which is I guess it's the engineering him but it's he's very meticulous and and thanks to that it allows me to be it allows me to be in accordance with everything you know we have milena now at learn and she tracks she chased me down you know you can't just put an Amazon charge on our credit card and say it's deductible she says can I get the receipt what was it that you bought on Amazon and I could you know by doing that's made me more aware cuz all of a sudden some of my supplements are you know not showing up on my business credit cards before I'm Elena's gonna come at me later and be like why's vitamin C on the you know Lauren credit card so it's like yeah like it makes me be more aware and you're right it just makes everyone's lives easier and you know what I can honestly say everyone I walk around every day with very little fear of an audit as a matter of fact that learned we actually are doing a voluntary audit with a private company because we we just wanted to make sure we have all our ducks in a row but I don't I don't really walk around with a lot of fear of it if they came in all right waste your time because in the end they're gonna find I'm pretty much up to speed on everything and I've got everything done right so you talk about documentation how much it saves money I just want to talk to all the entrepreneurs out there proper documentation gives you a good sleep at night because you know now I hate by the way this is a funny joke it's it's a true story I hate receipts I don't know what it is with receipts I have a deep innate hatred for them I hate being handed receipts I hate shoving them in my wallet and there was an epinephrine and it was a really funny scene where someone's trying to hand him something and he puts his hands up he goes I don't like to be handed things so like he makes his assistant he's like give it to her and I am the exact same way with receipts like if I'm at the grocery store they had me receipt I'm like I could give to my wife like I don't I don't like receipts but that part of me has begun to change I'm I really am trying hard now luckily also I buy most things online so the receipts come in to my email but entrepreneur every entrepreneur I know every entrepreneur I know is not good at documentation I could be better but they're not that good and you've since day one Tom you have driven this home with us like we've got to get better about it and you're right it's not sexy at all but it's important now I will definitely say any Tom so every receipt should be safe and like properly filed in like hardcore it's easy I'll just scan them to like I mean I'm a big believer that we do too much stuff ourselves as entrepreneurs right and we're there's a lot of do-it-yourself going on where you have get an assistant have somebody else do it for you get a bookkeeper get somebody else to do it for you and let them scan the receipts just all you have to do is give them the receipt no big deal right right what the purpose was for the expense and just hand it over no big deal let them scan it file it electronically you don't want to keep them physically that's a they're gonna fade anyway so don't keep it physically just do it a good scan and make sure all the informations on there and they don't have to worry about it awesome sleep at night yeah it does I mean well we're actually it's crazy I don't know how much money we spent but yeah we spent multiple multiple five figures to get a voluntary audit done by a private CPA firm here at learn and it's in the process and we're doing it just so we could find any holes in documentation and that's that's when we you know that's how I got myself to stop putting supplements on my company's credit card alright number eight let's do this number eight so here's another fun one this is something that people don't think about so our tax law system like most countries is what we call a progressive tax law meaning that we all have low tax rates we all have a zero tax rate first $12,000 is non-taxable then we have a ten percent tax rate then we have a twelve percent tax rate on up to in the US a thirty seven percent tax rate that's how it works and it's progressive okay progressively the more money you make the higher the tax bracket well here's the cool thing so everybody gets the same tax brackets meaning that our children have the same tax brackets we have our parents have our elderly parents have the same tax brackets we have so a lot of entrepreneurs have children and they might be two or three or four or five or six or seven none matter 12 whatever and they cut they cut you've got an underutilized asset right there because they've got a tax bracket a zero tax bracket that you're not using and every year that zero tax bracket goes away you have twelve thousand dollars you could have you can add in a zero tax present yuning news okay if you've got three kids you've got three $12,000 tax brackets that you're not using so here's what you have to do you have to involve your kids in your business you have to involve this is a great opportunity for entrepreneurs because you think about it from again from a policy standpoint what does the government want you teaching your kids how to work obviously would they like them to not be on the welfare rolls when they get older obviously would they like them to contribute to society through business obviously I mean those are all positive things right and so what the government says is great so if you pay your children to work for you now let's say that they're two but let's say that your business requires some child modeling okay you could actually pay your kids to model now pay them a reasonable modeling fee don't pay them twelve thousand dollars to do five hundred dollars worth to work okay paying $500 to do five hundred dollars with working but child models are not cheap so you can pay them a realistic modeling fee or let's say they're ten or twelve have that you have them start doing some bookkeeping for you have them do some work in your business have get them ago I started working at my dad's printing company when I was 12 okay yeah I always pay me a buck an hour he should have paid me more would have been better for in tax wise but he he he paid he did I mean we were all involved in the family business and we all learned about this because we're Baldwin family business so there's a lot of benefits to involving your kids in your business but one of the big tax benefits is that first $12,000 you pay them is deductible by your business at your 37 percent rate and non-taxable to them so you just eliminate a tax on $12,000 for every cheap kid you do this now that you say I don't have children well a lot of people in a lot of Millennials have elderly parents okay you know and you're taking care of your parents so here's the thing parents that's even easier because you don't even have to pay them you can give them a share of your business okay you can't do that with your kids because they don't get tax brackets for passive income but your parents do so you actually give them a non-voting non-controlling interest in your business and again it let's say they're in a very low tax bracket because they're just on Social Security great give them give them an interest so that some of that income is showing up on their tax return in their tax bracket instead of your tax bracket so taking advantage of those tax brackets it's a pretty big deal and very few people and what's funny is so I was in South Africa a couple of years ago and I'm about to get on stage and we have the South African CPA with me and I turned to her and I said I said okay look I want to talk about pain or pain your kids can you do that here and she looked at me she goes Oh My heavens I never thought about that that's a brilliant it works in actually that one works in every country it works in every single country you can pay your kids to work in your business that's so crazy I thought of a so Jimmy if you're listening which you probably aren't but so Jimmy Kim last night we were talking about his daughters ally she's super adorable and she's getting more and more adorable by the day and I just told I was joking with him I said hey can you ship her over here and you make another one like I'll take her and he goes sure no problem send her back when she's making money and so Jimmy she can make you money now get her to do some photo shoots for Sen Lane that would be awesome and then you can divert income to her that's so cool like if you're listening to this there's just so many ways to deploy this and it's your choice twelve thousand dollars is a lot of money especially for entrepreneurs doing a couple hundred grand or whatever a year and I mean that that's a that's five percent and you got two or three kids that adds up real quick real simple real easy not to mention your kids are involved they're learning you're spending time with them it's a cool little fun thing like when my nephew came here once I keep always referring back to this it was so fun I don't have any kids but my nephew was visiting and he's loves a learned Center he says it's Disney World and he went and he wanted to speak on stage I was completely baffled and so I took like an hour and a half the night before like you know working with him teaching him and then the next day he got up on stage and he spoke and I just wished he lived closer by because if he did how much fun could we have he would definitely charge me though he's a very capitalistic child so I know that hey but here's a cool thing so your kids are minors which means that they don't get to control that money you do yeah yeah so you're not gonna hand them you're gonna hand them twelve thousand dollars you're gonna put it into a custodial bank account or a trust and you're gonna be in control of it and you're gonna you're gonna decide what to do with it the only thing you can't do is you can't do use it for support right you can't use it for food or clothing or housing but you can use it for extracurricular activities you can use it for family vacations you can use it for music lessons sports you can use it for any of those things or I don't know here's a thought how about investing it for them notice I say your business okay so they own a PC or business or a piece of your real estate or whatever I mean there's all sorts of things you can teach your children about money by having this available to them that's awesome really really awesome all right let's let's do this I if you guys are getting ideas I'm gonna give the URL again if you want to talk about how this applies to your business with live human being one-on-one go to wealth ability calm well ability calm and talk to one of the amazing advisers out there they'll have you could literally say here's Who I am how will any of these and more right we're only doing ten here there's so many more strategies there's so many things that Tom's done for me that we came to talk about because they're just you know they're they level up like as your income levels up and as it levels up the strategies you can deploy level up and so anyways go to wealth ability calm alright number nine time number nine and this is a big one it's it's your tax preparation okay how do you report stuff on your tax return let me give you an example so a lot of entrepreneurs spend a lot of time between the seminars and education stuff like that and the thing is the IRS hates the word seminar they think it's that's personal it's personal development it's not really business so what you don't want is you don't want to have the word seminar or seminar fees on your tax return instead that should be continuing education okay now it is continuing education and it is a seminar it's both but you have to choose how you're going to report it so how you report things on your tax return is going to make a big difference in whether you're audited and what that audit looks like so this is this is my point not all tax preparers are created equal okay and just be really careful I don't care who you use just make sure that they're that you're understanding what they're doing on your tax return you don't want them cheating in any way do not cheat on your tax return that is the worst thing you could possibly do there's all these tax benefits you have no need to cheat but if you report things the right way this is the tonic your point about sleep at night right you've got to be able to sleep at night and if if you report things properly on your tax return like you say I mean you're not afraid of being audited well you know what everything everything we do on your tax return part part of what we're doing is looking at how do we make sure that you're not going to be on because we're the ones who have to defend that we don't want to be defending your audit either and and so we just you just be really careful with how you prepare that tax return so like you said you know I go to this points that you said well don't be you know don't be don't be cheap with your advisers right the way I look at it is you can it you can look at an adviser as an expense or an asset and if you're if your adviser isn't as an expense in other words you're not getting anything in return it's just an expense you want to lower the cost but if your adviser is constantly giving you return you actually want to invest more with your adviser because they're an asset so what the big key in my mind is the big shift in thought processes let's have advisors that are assets and not and not advisors that are expenses or liabilities we want advise your Scheuer assets and when we have advisors your assets it's always gonna make us more money not cost us more money because the return on investments always gonna be so hot 100% true took me a little while to understand that but I could not agree more with you precisely why lately when I go to events and I meet someone who could help my point is this I might meet someone that's gonna know us strategy at that I don't it's not kind of like make or break me but hey it could make me or save me 50 grand and they're asking for 10 it's just a stupid transaction not to do it whereas the the wrong thinking is people start focusing on the 10 oh my god it says 10 you gotta focus on the 50 and the fact that you've met 40 so I know you're thinking as I say this people are hearing and going oh uh hmm go back and think about your decision-making the duh applies to you trust me cuz it did to me as well Tom number 10 we're at the last one here what would you say okay so we started out with me having to raise my right yeah so here's what we're gonna do on it raise your right hand ionic single ionic single will never will never speak to speak to the IRS yeah absolutely say here's the thing your tax advisor will have a bigger impact on your finances than any other person in your life other than your spouse okay what you don't want to do is be talking the IRS because you will as an offeror you will screw it up okay here's the way here's the way I look at it you're going to play one-on-one basketball against a college basketball player okay now you're gonna go up against that college basketball player who's and you're going one-on-one who's gonna win that game college basketball coach Riley all day long yeah all day long let's say though you could hire LeBron James to come in and substitute for you and play that College Player 101 now who's gonna win me you're your team's gonna win so why would you ever put yourself in a position where you're going up against somebody who knows more than you do when you could put somebody in there who knows more than they do yeah I mean think about IRS now I appreciate what they do I think they have the one of the harshest jobs in the world seriously I would rather be a part ologist than an IRS right that that's definitely a visual there tom there's definitely a better visual for you what do you think of that okay so you come out of college and you go okay I can go work for a CPA firm where I'm the hero every single day I'm always saving taxes or I can go work for an agency a governmental agency where none of my clients like me then hear from me and they never want to talk to me and they're probably gonna be rude to me you know where's your top where your tux where's your top student where your touchstones going to go they're gonna go to the CPA firms there you're a cinch goes CPA firms your B students go to the lower level what I call national CPA firms and then your C students end up with the IRS well you get an opportunity to put an A soon against the C student who's gonna win that he's gonna win that okay you're a student's gonna win so this is where you know I spent a lot of time with mr. Kiyosaki bless his heart and I love it and he wrote a book a few years ago called why a students worked for C students and B students worked for the government and cuz they're pretty funny type I just haven't been to image of him saying it he could he would say yeah but here's the thing there is a time when you do want a students working for you right don't hire the beast in so high the C stands higher the a students because guess what the tax law is complex all the details are complex you have to know the basics we've got ordered a lot of the basics this morning you have to know the basics your your CPA though needs to know the intricacies of the tax law because the other ones going up against the IRS you're never going to talk to the IRS you get an IRS Notice you're going to send it to your CPA that's what you're gonna do you don't know look at it just send it to your CPA you you you get and if it's a brown envelope you open up because that's a cheque right but if it's a white envelope you just say you turned your citizen say here scan this over and send it over to Tom send it over to my CPA because I want him to handle this situation and then I'm gonna get a power of attorney from you and you know onic we have a power of attorney for you all the time right so that any time there's an IRS issue we just call the IRS I actually have a direct line in to the best people that I arrest that the average person can't get into them it's actually called the tax practitioners hotline so having that team this is really strategy number 10 and I think that's the most important part is having a team of advisers that really have your best interest in mind that by the way that you can send him a text at 6:00 in the morning you can send the text at 9:00 at night and your are going to get a response okay having those advisers that really understand their specialty I mean I'm a specialist there's no question I specialize in tax lock don't be asking me asset protection questions I have a general idea about but I'm not specialists that's that's that's a lawyer who's gonna handle that you know there's a lot of stuff I don't know right and by the way through countin says that they know everything you need to run ok cuz they don't ok we need to keep learning all the time but I just think that having great advisors I mean on it let's face it I mean I've spent a lot of time with you as an advisor to me right I'm not a marketing guru that's not my specialty but I mean I'm a business owner so therefore marketing is important so what I do I go to the best I go to onyx tingle and say on it how do we do this how do we put this together and so I you know I'm a big believer myself and using advisors using other people who know more than I do so I I have to preach on this for a moment because it's made such an impact in my life and I'm very blessed because and so I'm not sucking up here and Aiza but for the fact that I have Tom I want to give everybody like the series of events and how crazy and what why it's not even the fact that he saves me money alright so you guys if you've been following the fighting entrepreneur podcast for awhile you'll remember I had Michael Kerrigan who's my attorney and he was on and so he's our general counsel right he sees the first person I go to for pretty much any matter and then if I need a specialist he points to me the way and he was on he actually flew down here and I at the time that he was here I told you I was looking for a very very specialized type of person to ask a very specialized question I googled my brain off I called people I could not find I asked him and he worked three days and goes and gets me dull only person out of there's probably five people in the country I can talk to and he got me one of them right and and it's because of his experience now why did he have those doors it's 2530 years of meeting people knocking on doors shaking hands but him and I have built a relationship it's a it's beyond the professional you're my lawyer he's been here at the learned center he was at the grand opening he was he flew down here to do the podcast episode we've talked we've had lunch we've talked about his kids my future plans and so when I call him it's not just a client I'm not just a paycheck it's like I'm on ik calling him and he cares and in that episode I talked about just how frickin pivotal that's been because I do I've been in situations where I call him and I say this guy needs to go down do what you got to do and he calls me three months later and says check your bank account there should be a $200,000 wire it's gone right like how amazing is that all right now Tom right so many times I've message Tom like should I buy this car or not right I don't even know if I'm really supposed to be texting him those things but god bless him he's nice and he always just responds but I've had him involved in some smaller details but I've had him involved in big things huge things I'm building a three point six million dollar and center should I is it a good idea is it gonna cost me a ton of money as your attack savings there I'm thinking about investing money in XYZ should I and I that recently happened two weeks ago hey Tom I think I'm gonna invest in this what do you think don't do that why you should do this why because of the following 19 reasons oh hey but where do I learn this do you know someone yeah actually go to this event oh wow okay I'm at the event I'm sitting here's the thing I got massive a DD I can't listen fertile I don't know how my own students sit through my events I have friggin no clue like I'm sitting in the event and and so Brad some rock if you're listening is I mean this would like the warmest of heart I've sitting in the event like three hours in and I'm like imma shooting myself like I can't sit in one place like kind of pace can I run around where's my laptop there's no internet in the room which was damn smart because I wouldn't pay attention and my wife is loving it by the way she's taking notes and she's paying attention I'm like I can't and that was when I sent you a text you remember Tom and I said hey then he's gonna always something yes or no so bride's gonna do a two-day event to convince me to buy something from him and I don't care I sent a 10 word message to Tom yes or no and Tom's message back made me feel yes so at that point I'm looking at my wife and I'm like do you think Brad would mind if I just walk up to him like here's my credit card now like can I leave doctors want to buy what you're selling but that's the level of confidence I'm able to move around in whenever I want to do something financial I turn to my team right and if I don't have someone in my team I turn to my team and say I need someone in my team and it's made decision-making in my life and you know what I've come to learn and Tom you can agree or disagree this is why the rich get richer no question the the challenge that most entrepreneurs have is we're we're just caught up in this do-it-yourself right we're gonna get something done or I'm gonna do myself well that's that's so stupid if I'm gonna get something done right I'm gonna hire the person the person who knows how to do it the best in order to get it done right I'm building a guest house right now with the studio and I'm going I don't know how to do this so I've got like you know you know my my I for my technology guy Clint and he's in there actually building the studio for me working with my builder and then I got I read my assistant over here and she's making sure everything gets handled and I you know the builders got all these people working forever they got that this sheet that she rocked people and then they've got that the the roof people and they've got the training people and all these kind of stuff you don't do it by yourself you know you don't build a house by yourself you don't build a business by yourself and and frequently you know is here it's monist at the top well that's why you have advisors because it is lonely up there are certain things you cannot ask your staff okay you need somebody that you go I'm gonna ask somebody who knows more than I do about this subject and that I know that I have a relationship with them and and it's not a relationship it's not a top down relationship it's a peer to peer check and so I can ask Tom something that I could might not be able to ask an employee or I can ask my attorney something I cannot ask an employee and so then we can get really much better information and and then you also have that person to go rely on say oh hey by the way you need this contract done so your attorney just says oh ok and they know your business and so it's just you get bigger that this is why I say entrepreneurship is really a personal development journey that's what it is as we get bigger and we can handle more we can trust other people to handle that stuff that we don't know how to do and and it's okay to say I don't know no it's so true and so I want to leave it at that everybody I challenge you if you're an entrepreneur and you don't have seriously the first part of your wealth team it was mine the first part of my wealth team was Tom it was it was a great great accountant because you got do that first and then you got the rest so the more money you saved then you then you need someone who can help you invest it and guess what when you need that you call your great accountant say I need help with this who can you recommend me to and they'll have their network so with that said wealth ability calm wealth ability calm schedule yourself to talk to one of Tom's most trusted people and figure out how they can work with you in a personal environment and you know that's so much better than reading and strutting and trying to do it on your own get someone who knows their stuff let them do what they're good at pay them for it and make a heck of a lot more Tom thank you thank you so much for being here man it's always awesome talking to you I always learn how many years after having had our relationship I always learned the cool thing is I don't have to learn anymore because he just does it for me so I I mean here you're spending a weekend at a seminar and you're learning brand new stuff and you know we actually have a rule in our office that we don't take any client that doesn't want to learn and learning is a big part of what we do and we are learning all the time I mean I'm learning new stuff every single day you know there's that the thing I've always talked about taxes is the more you know the more you realize you don't know and it's just an opportunity to learn all the time and and I appreciate you know our conversations on it because I'll tell you what you challenge me and I'm always learning so I love it it's great thank you very much all right awesome we'll listen for everyone you've been watching come on you got to give Tom some love he probably just made you tens of thousands hundreds of thousands of dollars if you're watching on YouTube go barillo right now leave a comment I'm sure he'll go check them out click subscribe click the thumbs up icon and click the little bell icon and if you're listening on itunes make sure you leave us a great review at iTunes or any of the other places that you listen to this podcast thank you very much for listening go to learn comm lu RN comm join the movement and become an empowering entrepreneurs on the movement to help change the world we'll do it all together alright and with that said remember as I always say when life pushes you stand straight smile and push it the heck back till next time signing off thanks for listening to the fighting entrepreneur with your host on a single [Music]

Channel: Anik Singal

Views: 41,575

Rating: 4.9217219 out of 5

Keywords: Anik Singal, Entrepreneurship, Entrepreneur, how to save money on taxes 2019, how to save money on taxes for small business, how to save money on taxes, Ways for entrepreneurs to save money on taxes, tom wheelwright, tax deductions, financial education, Brad somrok, How to save thousands on taxes, how to save millions on taxes, tom wheelwright tax free wealth, taxes explained, People hate paying taxes, financial education services, how to not pay taxes legally, tax free wealth

Id: 2yLSFc5qorU

Length: 80min 50sec (4850 seconds)

Published: Wed Aug 28 2019