Mark Kohler's 2021 Tax Secrets

couple of years ago i ran across mark kohler and mark kohler was doing a presentation at an event now he's a cpa tax attorney and literally i would say that this guy has changed my life cory i think you'll probably agree any of you guys who are you know making any money or maybe using him currently to use your tax to do your taxes this guy just brings it he's been on all the major news sources he's got book after book i believe and i'm just going to say this mark i think you're the best real estate tax attorney in the country and uh mark we are so lucky to have you on the call and you're here right yeah i'm here can you hear me i can well after that build up i hope you're here but uh i mean i i i just can't tell you how much we appreciate you man and how much you've helped everybody's financial lives and you know help them keep more money in their pocket and take care of their families and once again i just want to give a huge thank you for taking time out of your schedule to join us today oh you bet chuck i'll send you the bill um that's not a problem i heard you're gonna pay big so yes yeah you get a high five uh but but i do wanna say um it is just so you know who you're talking to uh it is reaching out across california and we have a good sized audience in idaho colorado and montana too i didn't tell you that but with that take it away mark it's all you oh thank you so much chuck and thanks for that kind introduction everybody i know a lot of you are multitasking in a presentation like this you're it's a busy day we're all busy please stop what you're doing for 60 seconds let me just tell you what we're going to talk about then you can decide to multitask or stay here and make some freaking money now here's the ying and the yang there are so many cool speakers that you've already heard today i just caught the last one marketing you're making money my daughter's a realtor i did my first caldwell instructional training for a group 15 years ago i've been teaching realtors and real estate investors and dentists and doctors and plumbers and morticians for 20 years helping them save money that's the aim the yin is making and realtors are great at making money my daughter sydney who's a realtor in orange county california i'd shout out to sydney if she's watching today i wanted to make sure she's out there but there are so many talents that a realtor has but one of them that usually is lacking i know you i know your language you're great at talking and selling and building relationships and making people feel warm and fuzzy i'd rather go to a dinner with a realtor any day of the week versus an engineer and you know what i'm saying you engineers out there don't be offended but doing the details saving money being organized having your s corp done talking to your accountant at least once a freaking year you're terrible at that most of you and i know it because you hate it and most people do i'm not trying to pick on you here but i'm saying give me this 45 minutes i think is most what i have i need to know chuck so i know my cutoff time but guys i'm here to save you some money i'm going to give you my hottest tips before you're in and as chuck said and i say this humbly there is no other tax attorney in the country with more books no more youtube followers and more podcast listings anywhere i have specialized in the main street america i love my main street clients my small business owners and that's what you are so i'm going to let you moderate chuck you can cut me off i'm going to throw out do you want to answer ask the questions i want people to type up questions if you're like mark you're full of crap my accountant said this what about california that what about idaho this right now i'm broadcasting from idaho i have a place in california we have an office in arizona utah idaho and california i am in your world i know you people i'm here to help you i want to answer all your questions as fast as i can so that's my intro we're going to talk about what structure how to write off your kids before you're in are you going to buy an auto before you're in are you going to convert to a roth before you're in there's a lot of deadlines in the next three freaking weeks and your account is not going to tell you you've got to take some proactive action you are the captain of your ship so that's my intro so if you can just focus for 45 minutes this will be this will be taking that medicine with a spoonful of sugar i'm going to try to try to make it go down i know you don't want to talk about this but we're going to make it work okay chuck are we good anything else no dive into it it's all you mark thank you bring it okay do you do you want me to give you after each little tip you give me a couple questions you might think are the best out of the chat uh we can do that but since you got 45 minutes man you always bring the gold and we could also save questions after and if that's okay with you and then those who got to tune out at 12 you know are gone and then maybe we can come back and revisit the questions at noon if that works for you okay let's do that so everybody don't type your question in chat right now because we'll probably miss it write it down on a little post it right next to you if you're like mark what about my payroll i want to pay my kid who's in college right now i want to write off for my truck before you're in write down those questions if i don't answer them now here's what i'm going to give you write this down as well here's my top 10 my top 10 tax strategies and they're not going to apply to all of you but i'll tell you at least six to seven of them are going to probably hit most of you so here we go here's the top 10 and then we'll talk about them as much as you want okay number one okay and i'm going to put top 10 tax strategies before your end and this is 2020 baby right here the crazy year of 2020 which will go down in infamy right okay number one you've got to save on self-employment tax which means all of you making more than 40 grand a year better be a freaking s corp s corporation or an llc taxed as an s corporation if you're a brand new realtor you're probably an llc waiting to make that jump some of you that are an s corp now you're taking the wrong amount of payroll having the s corp step one taking the right amount of payroll step two taking the payroll when you're supposed to is step three so we can break those down and there's a lot and i have a color payment matrix of where you should be you want to call your accountant but in the next five weeks and go what are we taking for payroll am i paying my spouse am i doing a 401k am i doing health insurance premiums all that crap has to be on your payroll statement your w-2 and if you're not in charge of it who is number two i want to talk about you real estate professionals that means if you are buying rental properties it's common that a lot of cpas will screw up your tax return chuck and i have talked about this for years if you're going to buy a rental and i'm going to talk about the trifecta we'll come to that in a moment real estate professionals and rentals we're going to hit that number three i'm gonna get it just the easy stuff this is a low-hanging fruit home office we've got to make sure that you're taking the home office deduction even if you have an office at the brokerage number four dining too many clients screw up dining there's a 50 rule and a 100 rule are you buying food for an open house or are you taking someone to lunch different rules number five auto the best it's been in 30 years are you going to buy a truck suv car before your end are you doing mileage you're doing an actual you're doing leasing lots of issues corey be ready to go with that link on that blog article for that any blog articles on these 10 that you can pull off my blog let's be ready to put the links in chat number six we're gonna hit travel when you go away for christmas i want you to have your board of directors meeting all of you should have an llc at least and probably an s election or an s corp inc pc professional corp that's where you should be getting paid as a realtor we'll talk about it if your broker is not that's okay but you need a board of advisors you need a board of directors you need a corporate book that piece of paper from legal zoom three years ago it's crap you've got to make sure you're doing all the pieces and parts you get audited you're screwed you're not going to have any asset protection your board of directors meeting makes your christmas holiday a write-off i want to write off travel when you're traveling for holidays because you're doing business when you're traveling number seven we're going to bring in family pay are you going to pay your spouse you're going to pay the kids kids under age 18 kids over age 18 too many people pay taxes and give their kids money they're getting a 10.99 baby put it in their christmas stocking all right number eight health insurance are we writing off our health insurance premiums properly are you doing a health savings account are you doing an hra do you even know what those are if you don't you're probably getting screwed i had a phone call with a client yesterday that did in vitro fertilization in 2019 they spent almost 50 000 they found me in 2020 we did their time we're doing their taxes this year we did some planning i said what are your medical expenses this year they oh five or ten grand i go okay we can do a health reimbursement arrangement write that off through an s corp sister company you get a write-off for all your medical and they said hold it you're telling me i can erode off 50 000 in medical last year yeah everybody else that's how you do it that's what accountants should be teaching you they missed a 50 000 write-off in 2019 that would have reduced their s-corp income people you cannot guarantee your cpa knows what they're doing or they're communicating with you you are the captain of your ship number nine we're going to bring in retirement accounts baby are you funding a 401k a roth a safe harbor roth a backdoor roth are you buying rentals with your roth are you buying rentals with your 401k are you self-directing if all that sounds foreign there's a whole new world just come and see sorry i won't sing again chuck okay retirement plans we've got to make sure all of you are doing your backdoor roth which is due by december 31st okay number 10 all the goodies electronics cell phones cell phones for all your family members who are on your board of directors cameras you see that last little training you got on the camera the drone the video the facebook the computers the laptops the ipads all write write-off my entire studio here is a write-off are you writing off everything at best buy an apple store and the list goes on home office supplies equipment furniture in your home office people you're going to miss out if you don't take advantage of this this is your little meeting with ben affleck at the beginning of the movie the accountant you got to figure it out all right okay those are our top 10 strategies i'm going to just kind of say a few things about them in 30 minutes i think chuck the best method here i'm going to call an audible this is what brady was good for at the patriots it's her he's hurting in tampa bay right oh i'm going to call an audible right here i'm going to go through a strategy i'm going gonna pause any question on that strategy post it in the chat chuck you come out you pick the best question we'll get it we'll go to the next topic sound okay absolutely all right number one self-employment tax here's the deal all of these strategies start with what i call the trifecta write this down on a piece of paper the foundation of everything you're doing is going to be your revocable living trust which is never going to be in your name i don't want it in your name we're going to do privacy strategies as well remember i'm a lawyer and an accountant we're doing asset protection and accounting at the same time this is your 1040. everything flows downhill it's like water coming down the hill so the trifecta is made up of your operations and your investments we're going to come back to this diagram throughout the whole thing operations investments all flows down into your family trust in your 1040. you don't own anything we're going to create good estate planning and good asset protection and good privacy that's the plan we're going to build on it if you're a brand new realtor you're going to be a sole proprietorship for about two minutes and then we're going to get you into an llc so i can make an s election when the time is right then we're going to convert this is the principle if you make 100 grand everybody listen this is so important if you bring in 150 000 in in commissions okay if you're on chuck whitehead's team that's averaged you're trying to get to 110 grand a month that's 120 a year you should be hitting 150 that's the goal chuck's working on that or better then you're gonna have 50 grand in write-offs auto dining travel kids electronics cell phone we're going to write off everything under the sun 50 grand in write-offs you netted a hundred thousand here's your net hundred thousand easy right do you have to have an llc to take a right off for all that nope you do it tomorrow we're gonna write off all that crap 100 grand now uh oh you've got self-employment tax self-employment tax kicks in at 15.3 percent you're gonna pay 15 grand off the top then you're going to pay state and that's in utah idaho and california then you're going to pay your federal people you could be losing on your first hundred grand close to fifty percent of your income that's why the yang of saving money is as important as making it now the s corp comes to your rest your benefit this is your savior this is your number one strategy if i run the same hundred grand through this so i have my 150 in sales i get the same freaking write-offs i net a hundred grand oh no self-employment tax and i get the 199 a 20 deduction but i got to take a salary so what we do is a split i take 40 grand in salary and 60 grand in pass through i only pay the fica on the 40 000. that's the f word social security medicare 15 i pay it over here on the w-2 but on my through my draw by k1 you don't get a paycheck every week i know incomes up and down we're going to do a payroll report quarterly and by the way you cannot do it at the end of the year i know many of you on the caller well my account just does a w-2 one at the end of the year yeah welcome to the audit you're going to get some day and your account is going to go oh yeah sorry and you're going to be left holding the bag you have to do payroll quarterly you're going to have to do an estimate and you're going to kind of guess what your payroll should be each quarter then we clean it up at the end of the year it is a report you do not get a paycheck i do not care what your cash flow is like you take a draw anytime you want many of you s corp owners know this chuck has been living this for years easy schmeezy but look i only paid fica here i just saved 15 on 60 000 that's 9 000 in savings so i either pay 15 grand in self-employment tax or i pay six grand in self-employment tax on the payroll i just saved nine thousand now i so know some of you're like well i'm in california you'd say eight hundred dollars for an entity and then i gotta do a tax return and payroll that's right you're gonna spend two grand a year doing your s corp i get it let's do the math uh spend two save nine now this is hard math but work with me spend two save nine i think you're going to be okay and the more money you make the more you save that my friends strategy number one get your s corp done get the payroll right and i have a spread a payroll matrix to nail your payroll at the right amount and it's going to be in a 30 to 50 range maybe as low as 20 percent allocation to payroll if your accountant's making you take more payroll than that they're costing you if you do payroll at our office under our method and you get audited we'll pay the penalty we'll pay for the whole audit because in 20 years i've never had a client audited for taking the wrong amount of payroll we got it all right chuck that's strategy number one questions what do we got you know mark i think everybody is literally just like loving it and taking notes like crazy um i mean how do we get started if we don't have an s corp is the first one i mean there are a lot of people who are just getting rolling okay that's a great question all right so let's do this for those of you and isn't this awesome see this is the nuts and bolts i know all of you are starving for but heaven forbid your account speak freaking english or you trust your lawyer to give you a straight answer so i'm here this is important by the way i got a weekly podcast i got a weekly newsletter i'm going live on facebook today at four o'clock i do it every thursday i'll be here for you i'm gonna be your new resource for this and then you go to your local account if you want you can use someone national nationwide you can use us don't care but you got to get some info all right so here's 2020 and here is 2021 and let's say let's do example number one one of you is a sole proprietor you made money this year let's say you made 50 grand you were sole prop no llc no llc sold prop and you netted 40 to 50 grand there's nothing i can do i would say this if you know you're going to do that or more next year in the next five weeks let's get your s corp set up go straight to an ink just do it right and set up your new s corp 1121. we charge 450 for a diy paralegal helps you do it right same price as legal zoom get all the parts and pieces or 800 bucks you meet with one of my tax lawyers on a phone call on zoom and they will help you set up your entity and answer all your questions for an hour they're going to knock it out of the park no one ever has complaints they love it 800 bucks if you need it with the filing fee for whatever state you're in okay do it price it whatever don't use us it's cool i'll give you my contact info a bit that's those people that have no llc no corp and you got hoes this year i hate to tell you you're sol and i ain't talking statute of limitations that's a new joke of mine chucky's like okay now number two number two some of you are an llc all year long and this is the first you've heard of an s corp and you've just been taking your profit all year long god bless you that's great no problem i can backdate you into an s corp as of 1 1 20. you have to do your s election retroactive with a special revenue ruling that allows you to do it we charge 200 bucks done then you've got to do your payroll before january 15th so you're going to get a w-2 for the whole year you're like mark i already took my money that's cool we're going to allocate some to payroll everything else falls out the bottom no self-employment tax now you still pay your state and federal income tax the reason why we do an s corp is to save on the f word fight what the fight we don't want to pay that so that's why we do the s corp so any of you that are an llc not taxed as an s corp and you made more than 50 grand last year no brainer get your payroll service set up get your s election done and do a corporate tax return for last this year 2020 it'll be due next year and you're gonna save thousands done option three any of you that are already in s corp your job is to make sure that your payroll is the right level talk to your accountant i've got my books here tax and legal playbook on amazon that's where i go it's tax and legal playbook i've got videos on uh why do an s corp on youtube i've got my tax on legal library on my website blah blah blah you can learn a bunch i had a client yesterday yeah it was yesterday she goes mark i'm sick and tired of knowing more than my accountant because she's been following my podcast in my youtube videos and i'm like i know she goes i just fired him coming your way you know so but you got it you're the captain your you don't know how to know the form you just gotta know what your account is doing so make sure you're nailing down your payroll in the next three weeks which your w-2 should include health insurance premiums anything you're doing in a 401k or a roth 401k and your payroll amount for the year okay all right any final questions on s-corps there there's a bunch but i think we probably won't be able to get to them all just the one big one is just what's the minimum i should be making before i incorporate that's the number one question across the board um if if people you're an llc now um when do i make the jump to the s corp because i tell all realtors if you're in for the long haul with my daughter in california i set her up as an llc because if she hits it big i want to be able to back date into an escort so all of you should at least be an llc's good for asset protection good to get used to it get your ein get your corporate credit going get your branding done you got your name so do all that when do you make the election when you're netting at least 40 grand a year if you're netting 40 so think 3 000 a month you're landmark after all my expenses yeah i'm making about three to four k a m then you better be an escort and i'll say anything above that uh oh mark we're losing you a little bit if you don't do it you're gonna be living in creek home show i wasn't swearing that's a tv show you don't want to be living in creek you've ever seen that it's not good okay now we have one of my new ones do you you know you're going to be up crete now you're going to be living in creek see and it's a show i'm i can say it it's not even scary it's an s on the end okay all right strategy number two when you're doing your s corps this sister com company is your l also brother sister brothers i don't care but guess what the escort does not own the llc the llc does not own so your trust owns your lcgs when we do an entity for you we talk through all that what state you're in you're married remarried single kids but you're going to have your two companies cessport and llc you put your rentals over here you put your 1099 over here you take you pay your bills you take a draw once a quarter the accountant calls you and goes let's do your payroll report you don't get a paycheck we just do a payroll report once a quarter over here your rental is owned by the llc do not worry about the due on sale clause as soon as you close your mortgage has been sold 10 times you're going to buy your rental in your name keep fannie mae and freddie mac happy close and then deed it to your llc the llc will collect rent beyond the title beyond the lease agreement and this is creating asset protection for you llcs do not save taxes llcs are for protection now i have entire videos on how many llc's you're going to be all that depreciation is right off against your your w-2 and your k-1 so chuck here in my matrix and i could be oh chuck calls me up mark let's buy a rental in tennessee they're cash flowing great we've got a good property manager down there done i'm not going to buy my rentals in southern california what are you crazy i don't want to buy a 2 million meth lab in san diego i'm gonna go and buy rentals where they cash flow so we set up a tennessee llc my trust owns maybe 60 and chuck stone's 40 i think that that's fair it was my idea but anyway so llc okay 50 50. so 5050 my trust and chuck's trust my s corp has nothing to do with it so whenever i have a new partner and buy a new rental we set up an llc for that partnership now if i buy two rentals in arizona i might put two rentals in my arizona llc all the conversations do i register in california. we don't have time for it but anyway okay so we're buying rentals we're getting the losses even though we have cash flow the paper losses are wiping out our income on the other side we get a refund we buy another rental it's a machine do you know what my realtors retire on their self-directed 401k and their rental income boom but any real estate pro questions chuck anything on reynolds i think we're good right now um i'd say keep charging mark keep charging okay next copy and by the way and mary beth i think i saw you doing a screenshot with your phone i freaking love that i love you okay marybet i'm gonna draw a master diagram when we wrap this up in 14 minutes people so we're going to bring this together you're going to love it all right dining 100 food for an open house food for a workshop food for a training or a sales event for your customers 100 you go out to eat you write down 100 for your account and cuts it in half you've got to make sure that on your bank statements on your credit cards you're trying to help your accountant by coding them with two different highlighters at the end of the year christmas time you're gonna get some eggnog you're gonna turn on elf and you're gonna sit down and start coding your bank statement and your credit card statements and you're going to go oh that was for an open house oh that was for a training meeting oh that was for a sales meeting okay 100 percent food dining out 50 you can even write off dining by yourself when you're traveling outside of a normal commute if my daughter's in orange county and she goes even to long beach or la or san diego or riverside or oceanside for a meeting that's outside of her normal commute she can stop it in and out and take a ride off for lunch even though she's by herself when i travel for business all of my food is a write-off because i'm traveling for business home office do not let anybody talk you out of the administrative home office now you could take home office in your s corp is a deductible rent expense and non-taxable to you or a lot of times with my real estate professionals the bear the best place to bury i mean right off your home office is over here in your llc you need the home office not to run your realtor uh projects but to run your rentals so why not just bury home office over here then write off rent at the brick and mortar down the street in your escort s corp rent home office llc irs is happy doesn't even care you look clean audit proof see a lot of people oh well the home office is high risk no it's not i've never had a client audited for home office just don't get greedy and try to write off two grand a month let's just do reasonable home office and write it off against your rentals and you're a real estate pro so those losses come over anyway auto um corey or louise can you put that link i wrote an article in january for 2020 it's a link on choosing the best deduction method for your auto the auto deduction is amazing i in that article i go through eight rules of thumb should i if i buy a lower price vehicle but i'm doing a lot of miles i'm gonna go mileage if i'm buying a higher priced vehicle not as many miles i'm gonna go actual if i'm buying an suv or a truck i can write off a hundred percent of it now this year if it's 100 business the bonus depreciation was trump and the gop throwing fire on the auto deduction it's the best it's been in 40 years i have some videos on youtube and that article that luis and corey are putting down in your chat line that article is excellent it's on my blog mark j kohler.com now any of these topics go to mark j kohler dot com let me just say this now if you go to markjaykohler.com i've got a blog with the search window any of these topics you can search for an article number two you can sign up for my newsletter that's free every week and you get my ebook the top 10 tax mistakes small business owners make 30 pages you get it for free just comb through it and then just talk to your account about it just know enough to captain your ship uh there are my lo my youtube video links the most recent youtube videos i'm doing i've got a video i'm doing next week on the ppp forgiveness app now i'm doing youtube videos on year end strategies roth back doors paying your kids blah blah blah all that stuff go to markjaykohler.com and you can sign up for free and search any blog article i'm just going to say this there's no easy answer to auto because some people leave some people buy some people but the point is you can buy a car truck between now and the end of the year based on the business use percentage i may very well be able to write off the entire thing if it makes sense for you and that's car truck or suv the write-offs are amazing study up on it and i'm not saying go out and buy something you don't need but if you're gonna upgrade do it in december not january all right uh travel everybody now here's important back to our trifecta okay so enter yes oh question i i just wanted to mention this because i thought this was something that a lot of my agents were excited about that you said when you just said that you can write off a car this year if it you know you might be able to ride up to off to 100 um i loved when you said and maybe you can expand what if i get a loan a car loan 100 percent right off still you could go i've done it myself you can go into a car lot i know this sounds crazy it's true this is the rule stand by it all day long you could go into a car lot on december 31st and buy an suv or a truck that weighs at least 6 000 pounds i'll give you some auto ones here in a second but if you want to buy an suv or a truck you could put down a dollar buy used and get a loan and write off this whole darn thing on december 31st for the whole year love it love it if it's 100 that's if it's 100 business use you got to be able to show i got a car to go to the grocery store in the movies well who goes to the movies anymore but you know that that right off now if it's a car i can ride off up to oh my gosh i want to say 18 grand to 19 grand in year one and another nine grand in year two so you're riding off almost 25 grand out of the gate on a car but again if you only buy a 30 or 40 000 car and you're going to crank out 20 000 miles and hold it three years you're gonna be better off with mileage so again you've got to look at your situation the cost of the car but don't worry about loans don't worry about used or new that's how trump and the gop freaking gassed it up is they're like we don't care new or used we don't care credit or cash just go out and buy something they're trying to stimulate the economy okay now i'm going to bring this together in our last 10 minutes talking about travel family health care retirement uh this is gonna be hard i oh by the way i'm gonna say this if any of you are interested my last workshops of the year are tomorrow and saturday i do basic class tomorrow six to four i mean nine a.m to four six hours and then advanced class is saturday nine to four it's fully recorded you can watch it up to six months later you can uh catch what you can tomorrow but i in order to get the zoom links out for everybody tonight at 6 pm mountain we're cutting off registration but if you want to join us you can sign up at mark j kohler.com for my basic and advanced workshop i'm going to have 12 hours where i'm not talking 500 miles an hour so just check that out the next few days if you're interested all right so here's your s corp we're going to write off electronics auto home office or rent over here we're going to do home office travel because we're going to travel to check on our rentals we're going to buy rentals where our family airs travel uh all of our little goodies write-offs marketing legal accounting you're gonna have a board of advisors boa a board of advisors for your llc so at time you can meet with your adult children your parents your best friend your you don't have to be married you don't have to have kids to whoever your people you're hanging out with put them on your board there's no liability exposure to them you're going to hold a board meeting for your llc you should be doing company maintenance for your llc anyway get to my law firm through the link at my site ktos lawyers.com cmp company maintenance program 150 bucks a year we do the minutes we give you a questionnaire to fill out when you have your board meeting you're cranking then at your s corp you're going to have a board of directors they could be the same people but you're going to have three to five people here three to five people here that allows you to now write off travel because you're going to be having your board meeting at christmas time i want to write off travel to meet with customers clients go to workshops trainings and my board meetings if you're a part of a brokerage your s corp is going to own your share of the brokerage this is the llc for a law firm all the lawyers are s corps engineering firm all the engineers are escorts brokerage all the realtors arrest corps that's how you do it easy you've been doing it for years over here you have your llc's for your rentals so llc for rentals llc's for operational partnerships s corp for you i mark kohler have one s corp in my life it owns all my other llc's that are operational my trust owns my escort my trust owns my llc my trust owns my personal home it all comes here and a river runs through it brad pitt you know what i'm saying ladies it all goes to brad pitt it does it just does okay now this little bubble this is called the management company and the only reason i use this one is to pay my kids now there's two reasons i pay my kids under age 18. so my kids under age 18 quit giving your kids money paying taxes and giving your kids money put them on the payroll get a ride off and let them pay for their own soccer and school clothes and christmas presents it's totally legal the new york city deli hires their kids after school the oklahoma city farm hires their kids on the farm the idaho potato farm hires their kids at the potato harvest you can hire your kids to work in the home office cleaning rentals cleaning your home office vacuuming stuffing paper envelopes and putting up signs it's a family business you know it take the ride off but you got to do it before december 31st you know where i was this morning i was i was about wells fargo making sure the manager knew all my clients coming in locally because one of my er doctors that has a private practice was like his wife called me mark i'm going in to set up accounts for all the kids today and we're going to pay him 15 grand for this this and this i go okay and she goes to the banker didn't know what the hell they were doing yesterday oh my god i'll stop in so i talked to the manager i'm like lane you got to make sure that when my clients come in you don't give them a run around he's like i got it i got it he's a new guy i got it see you so you got to be setting up bank accounts for your kids doing the payroll and doing all this before you're in but you don't do it out of your escort because here's the beauty when you pay your kids out of an uh sole proprietorship no fica no suda no fuda and your kids don't pay taxes on the first 12 grand and they're still independent of yours i know it's insane you gotta watch my videos on youtube come to the workshop tomorrow and saturday i'm gonna break down all the steps and what you tell wells fargo this is thousands of dollars in savings right here oh but i have kids over age 18. kids over age 18 get a 1099 and i'm going to say 18 and over any of your kids under age 18 get paid through a management fee and then to the kids directly as outside services so we funnel the money we launder them i shouldn't say launder we clean the money oh sorry this is ozark and better call saul i gotta be careful we're gonna move the money through our management company and pay the kids that's what we're doing that was another joke you know marcy you're the only ones andrea you're the only one smiling janie thank you gosh you're killing me guys phillip that was a good one ozark i quoted ozark in a tax training you gotta love that all right we're gonna move the money to pay the kids down here okay now here's what's cool you ready for to go to turbo next level this is the basics this is the basics now that i've paid my 10 year old for helping in the business or my 20 year old that's a college that can't pay for their own bills i know they have earned income so my 10 year old can open a roth ira along with my backdoor roth along with my moms or dads or spouses roth and now oh i even have a 401k solo i set up we're doing those before year end because by december 31st it's over all of my roths form an llc with my 401k and i buy my next rental tax-free that pays for my kids college and my retirement tax-free forever forever that's what smalls would say this is serious my clients learn how to self-direct my good realtors sell rental property to their clients retirement accounts let me repeat that are you just selling single family homes there is trillions of dollars in retirement accounts people are scared to death of the stock market in this upcoming year let their retirement accounts buy rentals learn how to teach that and share that concept here's my partner's best-selling book the best-selling book in the country self-directed ira handbook s-t-r-s-d-i-r-a-handbook.com will you put that in the chat louise sdirahanbook.com you can buy a copy of his book get the videos over there i'll be teaching it on saturday i'm hoping to have matt come in for a half hour for a breakout session okay so we're fun we're paying the kids we're funding retirement accounts we're funding a solo yes someone say something did i hear a high five okay we're going to be paying the kids over age 18 under age 18 we're gonna be funding retirement accounts who are we forgetting spouse mom dad i'm helping support my family members oh should i put my spouse on payroll i've got a whole video on youtube put your spouse on payroll find the sweet spot now don't youtube the sweet spot for your spouse you're going to get a whole other set of videos i'm not responsible for but you want to do payroll for my spouse kohler sweet spot i have a whole video on it so when do you put your spouse on payroll do i don't i typically the rule is only to fund his or her 401k so i might pay the spouse but i'm also going to be thinking about my health savings account or my health reimbursement arrangement so i may pay the spouse to fund an hra or i'd pay the spouse to fund a 401k or i don't pay the spouse at all now for those that are single out there you may be helping mom or dad i've literally 1099 my mom or dad or father-in-law for help with my rental properties and helped them pay their taxes and i got a write-off at my bracket and mom who's on social security hardly paid any tax at all plan your taxes as a family when you sit down with your accountant you're like hey i'm paying this can i'm helping this kid i'm helping mom and helping dad i'm helping brother-in-law's sister-in-law they should all be on the company board of directors you're paying them and getting write-offs and even if you help your kids pay their taxes it's cheaper than you paying taxes all right it is 12 59 that was boom so mary beth that's one of my master diagrams we're going to be building on to this tomorrow and saturday in a big way if you ever get my books you'll see more of this don't feel pressure i'm not a good used car salesman but chuck i'm doing q a as long as you want my secretary's bringing me a burrito so i'm good for wild whatever you want i love it i love it uh mark we have had so many questions um i think people are really really enjoying it um people right now here's the last message i got here no please don't stop um can you talk a little job can you talk a little bit about what's going to happen tomorrow i mean do you how would it work if somebody exactly wanted to log on and watch because i think that like it's almost like a college education in six or seven hours if they can sit on your nine to four and i should mention that is that central standard time um that would be mountain time tomorrow at nine o'clock it starts now what's fun tomorrow morning in the first hour and a half i'm talking about everybody getting out of debt giving you a debt snowball saying we're going to watch a little dave ramsey we're going to set up your acorns account your roth account and your savings account so that you can start building wealth outside of your operations then we start expanding from there the structures the s-corps the llc's i do q and a the whole time we're doing a breakout session for just women another breakout session for men i've got my female attorneys and cpas helping out we're doing a breakout session for east coast and west coast a breakout session for over 30 under 30 and a breakout session for no kids with kids and so over two days and it's three or four hundred bucks but you can watch it recorded if i don't save you ten times that certainly if i don't save you three or four grand in taxes this year alone i failed it's worth it but anyway if you want to go there uh just go to mine in fact i might be able to just show you right here mark j kohler.com and um i'll just go here and i'll just share my screen right here this is just this is my website markjaykohler.com and just go to workshops and you can read up on it and there's the business owner workshop um and when we go over there come on boom four weekends eight sessions the last one's december fourth and fifth and uh here's what's in it you get a discount if you go to both and testimonials blah blah blah so you can learn more about it there anyway but don't feel pressure for that guys at lea here's what i'm saying no this is not a sales pitch this was not an infomercial chuck didn't even know i had that tomorrow i'm just saying at least at my website sign up for the newsletter peruse it once a week go to my youtube hit the bell icon and follow every time i shoot a new video you get a pain i try to keep my videos under eight minutes and there's a tip every week i have a podcast two podcasts a week free stitcher itunes spotify links are on my website so there's a lot of free content there the books are free i i launched a christmas special tonight for to get all my books for a friend or family member for i have a 50 deal i know a 25 deal uh 99 and 150 all gift wrapped and signed by me whatever okay keep talking chuck whatever you want well i've bought them they're great i'm getting a lot of people that we do have a large chunk of the people on the call that have had very good years i mean because for the people that have been adjusting to covet write um they have actually been doing great and a lot of them are sending messages to my phone right now talking about i'm paying hundreds of thousands in taxes i'm doing this i'm doing that could you do you mind talking about what the saturday and i mean that's something i i mean i'm very interested what what is the advanced class look like on saturday what kind of topics will be covered in there i know you're starting with the nuts and bolts on friday what's saturday look like well believe it or not friday we're going to get see friday is basics in that i'm going to talk about how to utilize your escort paying your family members and your llc's and asset protection for that and your rentals we're going to go through that tomorrow so there's you know some stuff don't feel like you guys are don't need the basic you need it um but here's some advance and let me give you okay so for my high income earners let's do this i'll tell you what i'm doing um okay so here's your 10 40. i think most of you first of all you got to look at your income for the year so if any of you are making more than 100 grand a year and i know chuck you've got a lot of people on the line that are doing that so pay attention everybody here's what i would do you're making one two three hundred grand the first thing is in your s corp we've got to make sure you're writing off everything under the sun auto dining travel home office pdas laptops computers i want to throw in the kitchen sink so don't miss those little things they can add up number two if you do have children i want to be funneling money to the kids immediately though i'm in a 1099 my kids over 18 and over and i'm gonna be setting up my management company for kids under age 18. no brainer let's shift income out of your name into the kids so that's good so number one all the little write-offs number two is going to be kids under age 18 and kids over age 18. next the solo 401k i cannot say enough about that if you're making one two three or four hundred grand you may say well mark i'll do both i want you to fund those things we we've got a a a discount price and a regular price which includes an hour with another attorney the 401k can partner like i said with your backdoor roths buy rentals so now you're buying rentals inside your retirement account then you're also buying rentals together and i'm telling chuck every year buy a piece of a rental no matter where in the country because those write-offs will offset your other income so i'm going to say that's number three is don't forget your backdoor roths and your 401k number four you've got to be looking for your rentals and i know some you're like mark i can't buy a rental in three weeks i get it i've had clients buying rvs in the next three weeks think about this strategy i had a phone call yesterday afternoon two guys in texas they bought four rvs used do you think a lot of people that you know this has been the number one year for rv sales in america ever all the people stopped at home in the spring bought rv do you think there's a few people with buyers remorse there are steals on craigslist and ebay for rv mobile homes maybe you buy a mobile home rv just an idea an rv or mobile home and put it in a rental pool before you're in even if it doesn't have a rental a day rented in this year but it's available you got it you took delivery you bought a used rv for 10 grand 20 grand 50 grand 100 whatever these four guys spent 200 grand on four rvs used they already have them in a rental pool bonus depreciation 100 percent they're going to write off 200 grand of mobile home rbs this year and get them in a rental pool that cash flows 30 on their purchase they're going to cash flow 15 grand a year on a 50 000 rv now it's not going to appreciate but in three years they paid for it it's now just a cash atm could you buy those in your llc owned by your 401k yes you could write off 50 grand in a 401k buy an rv create tax-free cash flow in your 401k and get a ride off to do it these are the little strategies that you want to be thinking about okay so paying kids rentals solo 401k nailing your salary you've got to make sure your salary is accurate i'll put that number sit and number five are you gonna put your spouse on payroll number six you can do a dv plan i've got realtors that do what's called a defined benefit plan i could write off 100 to 200 grand equipment is nice because it's 100 bonus depreciable so i don't know if you need a backhoe or a four-wheeler to push snow around in front of your rental property i have three rentals in idaho okay my idaho people i got three rentals in idaho i got a four-wheeler to push snow around for my rentals right off see what i'm saying okay uh chuck i'm all yours you tell me what you want to talk about okay i i do have one person that's asked the same question a couple times are you familiar with any of the california propositions specifically proposition 19 okay prop 19 got modified of course in this last election cycle it actually was there to help people inheriting property from their parents and keeping the same tax basis for property tax now prop 19 other than that is a mod podge right but here's the thing if you're okay let me tell you where prop t 19 doesn't matter if you're buying a rental property in fresno it cash flows and or maybe somewhere inland you're getting a good deal you're not going to be buying rental properties in the bay area right okay so you're going to be buying rental properties inland and you're going to buy a property in your own name and then deed it over to your llc do you care about prop 19 no because the the property tax value was nailed when the purchase occurred there's no reassessment because you haven't held it for years and years now for some of you that have had a rental property on your books for years in california you need that to an llc you're going to have a prop 19 problem right they're going to want to come in and reappraise that for property taxes so you got to be careful now when you deed your own home to your own your own trust so back in our trifecta when you need your home to your trust on the cover sheet in california i can get you out of prop 19 because it's your own home to your own trust so there's an exemption so there's not a reassessment there but guy i have a california attorney in the irvine office lee chen he's great you want to talk to him about prop 19 all day book him for a half hour book him for an hour 300 400 bucks an hour max and with lee you can address these issues lee as a rental property owner himself in orange county so i love he's been an attorney with me for 10 years so talk to lee schedule an hour with him you're good to go awesome awesome well i'm going to open it up peter any anyone else have any questions before we let mark go lance uh no mark i think just a personal question for me sorry to go out and put myself in this fun front 250 people but um if i personally wanted you to and not be handed off to an associate how would i go about working directly with you peter i called you this summer i don't think you remember but i called you this summer and i got handed off to a bunch of people i was like man i just need a guy well i want to work with a guy all right first let me say this carla asked to an 1120s is an s corp so if you have an llc taxed as an s corp you're doing an 1120s as in small so anybody out there if you have an selection and you did an 1120s you're an s corp now you got to nail your payroll properly and do your w-2 thing make sure your payroll company's on it costco has a payroll service for s corp so you're good well peter thank you for your request um [Music] i try to take one or two appointments a day maybe creation with the law firm you know i'm out there um so i'm not saying i don't take new clients but i don't own all sorts of huge premiums like oh you want to work with mark you've got to pay five grand or whatever i don't do that pc devin devin is to be on the chat all day tomorrow x it's one attorney cedar city incredible kevin in phoenix liam irvine uh darren our new attorney here in rexburg they're excellent he does our patents and trademarks as well for small business owners though all of these are tax attorneys and peter if you meet with one of my people who are usually cheaper a little couple hundred bucks cheaper an hour and they don't wow you i want to hear about it but they are they are so i'm training them we almost have a training every four days but we do weekly sometimes we get on a call even twice a week so but there's a little bit of a waiting list for me but don't worry don't stress that you've got to meet with me people i've got great cpas on the accounting firm i got 12 cpas over on the accounting firm we a lot of times have a little the wait list that's occur in february if you want us to do your taxes you want to get with just quick get us a retainer and say hey i want to be at aedpas.com that's the accounting firm the law firm is kkos lawyers.com um but peter if you really want to meet with me i guess get on my schedule a month out or something you know if and my personal assistant is whitney and uh just be patient but i got a great hat that's all i'm saying i'm just not just playing okay uh uh let me see can you buy life insurance yeah christine i'm not a big an investor money in reynolds you're your real estate professional i think you're going to get a lot more big bang for your buck with rentals and by the way all of you know we're going to have a buyer's market this year we really was good in 2021 the foreclosures and evictions are piling up and you know it banks are holding back they don't want to be the first person to foreclose on someone in colorado foreclosures are piling up on top of the coveted people it's going to be a buyer's frenzy out there you guys are going to make great money this coming year you got to be ready to roll uh but life insurance we can talk privately i'm not a big fan um can you write off a solo prop or llc with under 40 grand a year home office kids vehicle food travel shanae absolutely everybody everybody look it in your structure if you're not an s corp yet and you're just a sole proprietor that's cool we're writing off kids we're writing off all the crap we're doing a 401k and all that it's all good but when you start making more than 40 grand if i knew do you suggest a solo 401k that's kim i would wait to do the solo 401k until you've got the profit to do it i'd like you to get get your s corp set up get your expenses done get your backdoor roth going buy your rental property get out of debt okay mark i'm nimble i'm ahead on my taxes i'm ready to go solo 401k now like chuck said some of you had a couple hundred grand big year three grand 300 grand 400 grand let's get out of debt let's get our taxes set aside for this year because a lot of you are not ready for that let's set aside our taxes let's get our solo 401k funded our roth backdoor roth let's do all the basics then let's talk you know we can get bigger and better um who is the attorney that works under you that handles patents and trademarks that is darren charrington darren darren darren darren just call up and go i need a half hour with aaron tell him your idea your plan and he will meet with you tell you your options and give you a price if you want to move forward our trademark cost is i think 750 plus each uh mark that you want awesome um i'm just looking here chuck if there's something you want me to hit seven 401k i call it i i screwed up and did a sep how do i get to a 401k that's the purpose of my video so ultimately i'm going to get you out of a set especially if you're a solo owner okay chuck what was that someone's coming out live no i was just going to say mark just in the interest of your time and everybody else man i think uh i mean i think i just can't tell you how much we appreciate it this is all the notes i have i mean i got notes after notes after notes all over the table like i always do when we hear from you um and i just want to say thank you uh we are gonna i'm sure there's gonna be a ton of you guys the clock is ticking guys so um if you wanna be set up for a corporation next year or whatever it is you're hoping to do get to market as soon as you can i mean it drives me crazy to see people leaving money on the table and like i said mark's gonna help keep it in your pocket and and that's really what it's all about and mark you know one of the speakers we got some complaints earlier that you know that this person was all about um you know themselves and you're always giving information dude for free and reaching out trying to help people and i just want to tell you personally how much we appreciate how much you've helped us all uh you know in our financial lives so thank you for that mark thank you thank you everybody and oh and today oh hold on when's your event in today noon oh you're done now yeah pretty much okay at four o'clock mountain i'll be youtube live and facebook live talking about my ten year end strategies now you've heard a lot of them right here so i'm going to be answering questions nationwide in three hours or two hours and 45 minutes so if you like my facebook fan page or get over to my youtube channel mark j kohler you'll find it right away and subscribe and bell icon when i go live you'll get a pain so if later today you want to jump on for an hour and just listen in and and guys the funny thing is chuck comes to my class every year he always learns something new i learned some things new this week i could seriously tell you three things i learned the strategies that blew my mind this week so i'm always learning something new but really my bread and butter is the same stuff it really is so once you get a lot of this cranking it's just adding on some bells and whistles every year you'll love it so it's not it's not rocket science don't let your accountant or your lawyer bamboozle you my hourly rate hasn't changed in three years we don't have a huge upfront this that or another we have reasonable rates so check us out if you need help we're here but awesome thanks everybody and how's the burrito good yes thanks i'm starving it's 1 30 here i haven't even had breakfast so all right well thank you very much mark we appreciate it and we'll be in touch soon and i'm sure everybody will be reaching out to you at markjaykohler.com so thanks mark thanks everybody

Channel: TheChuckWhiteheadShow

Views: 16,353

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Id: QFBXYsiZ2Ac

Length: 62min 11sec (3731 seconds)

Published: Sat Dec 05 2020