Think Twice Before You Trust Your Banker

[Music] so i'm just rocking out to brittany folks i'm getting geared up it's brittany time we're all about free brittany i'm gearing up welcome everybody i know some of you may not appreciate that but sometimes you need a little extra energy to get you going so i've already drank too many rock stars today this is another empty can feels like monday but it's thursday welcome everybody my name is mark kohler we're here to talk about banking in your small business and i'm going to field your q a from around the country i want to give away a few books we got a whole round of books here to help you in your american dream side gig want to help you build wealth save taxes hope you guys are having a great week it's summertime and it's hot in here cory makes me turn off the ac in the studio because he likes very crisp audio for the recording and it's killing me i'm going to be like look at i'm already sweating it's called hot live youtube or hot live yoga i don't know what it's called but anyway everybody i try to keep this fun keep it real if you have a question about your small business saving taxes asset protection setting up your entity yada yada yada type it down below i want to say thanks for all of you that are regular viewers and listeners please subscribe to my youtube channel uh lots of followers there i'm posting videos every week trying to save you money make you money i've got a team of lawyers a team of accountants yes we're geeks but we speak english we keep it real having fun listening to brittany i'm dedicating the show to brittany that's what i'm gonna do jack free brittany i'm serious i was shocked that the judge shot down that motion to have the custodianship removed i cannot believe it she ten years in a custodianship give the girl a break anyway well if you haven't read the news on that it is actually quite shocking okay so the topic at hand today is about banking for your small business now let's set the stage here anybody watching this right now you got a sidekick if you don't you better get one because that's how we save taxes i want you making more money taking write-offs for expenses that we can relate to your business talking cell phone home office pdas computers laptops headsets where do i go um microphones drones auto travel dining i want you to write off any expense you can related to your side gig that creates tax-free income in your life now if we can take that income and then plow it into a roth ira pay off old debt and build wealth for the future buy some rental properties people now are talking financial flexibility financial freedom as some may call it financial freedom got to give this book away today all right so that's what it's about that's the equation create some i'm not saying quit your day job make money pay the bills get out of debt use your side gig take as many write-offs as you can fund a roth ira or real estate build wealth listen everybody guess what gross the economy helps everyone hurts nobody okay that was a little creepy but you know what i'm saying you know you know i'm talking about all right so okay so now let's talk banking let's do the trifecta and here's how it works for those that have seen this before can we see it okay corey we're rocking i better get my gatorade out of the way jeez slave master over there what are you calling okay task master all right here's your trust for privacy you're gonna have a revocable living trust that you're gonna build to hold your assets hold your businesses single or married young or old yada yada you got to have a revocable living trust at your foundation this is where your 1040 tax return is and i'm gonna put it in red this is where your personal bank account is going to go all right so there's your personal bank account your tax return and your trust that's your foundation then from there we're going to split your life in half boom and we're going to put your llc over here with your rental property cryptocurrency investments gold whatever you want and over here is going to be your side gig or your full-time small business that'll be an llc maybe initially but we know in the long run we want the s corp if you're making more than 40 grand a year net here is your day job now if you're married or have a partner or something over here is the day job that's the w-2 that's how paying the bills keeping maybe some benefits on the table creating stability so you can blow this side gig up i want this side gig to create that extra wealth so we can drive that money over here to your iras like a roth and we're going to use that extra money to build our llc and our investments outside of our retirement accounts see so i have my personal investments maybe an airbnb i can visit and work on rental property where mom and dad live or where the kids are going to college i got my roth ira i may even have a day job 401k can you have both can you have a day job 401k and a roth ira on the side yes you can and then your trust owns your llc and your trust owns your s corp that is the trifecta my friends investments operations all flowing down to your trust your 1040 and your personal bank account now you may say mark what does this have to do with business banking it has a freaking lot to do with your banking because banking is what makes this all flow smoothly example let's say you're like a regular teenager that freaking doesn't put their clothes in the drawers or hang them up in the closet and you walk into a teenager's bedroom and there's crap everywhere right now as you get older you realize it's not too efficient you can't find your shirt you can't find your jeans your socks your shoes it's a mess and you're always losing everything once you figure out the drawers are actually kind of cool you have a drawer for underwear a drawer for the t-shirts you're hanging up clothes you're putting drawers together for socks and all these things the drawers make your life easier and when that clicks oftentimes in your late teens or early 20s you're like hey having furniture actually makes my life easier having bank accounts makes your life easier those are the drawers of your financial life and the more you can keep them organized and it actually makes life simpler some people like if i open up my app for my bank i probably have 20 bank accounts and i'll scroll through them and show people sometimes you know just quickly i don't want everybody to see my bank accounts i don't want you to see my dirty laundry get it there's little anyway okay thank you appreciate that okay so here's the deal when you scroll through my little app for my bank you may go 20 bank accounts i'll go those are 20 drawers i know where everything's at so let's use red and let's stick with this for a minute i want you to have a bank account for your side gig so this we have bank account we're going to call this bank account number one down here for your personal banking bank account number two is for your operational side gig or business bank account number three is for your llc with rentals now some of you say well mark that makes it's crazy because what happens if i need money from this business over here just transfer it it's okay you can move socks from the sock drawer over to the underwear drawer if you need to it's okay that's not co-mingling that does not ruin the corporate veil what ruins the corporate veil is if i use this bank account to pay for groceries see i need to pay for expenses from these accounts that relate to that operation but i can move money anytime i want so let's look at personal is going to pay for clothes and groceries and golf clubs there's three examples let's just say we're not going to be able to write this stuff off because it's personal but what i want to do over here is i'm going to pay for home depot for my tools for my rental and i may pay for the mortgage payment on my rental what else would be good on landscaping for my rental all right so i've got three different tools i need three different places i might write off tools or expenses i was thinking of harbor freight to be honest i was kind of i love harbor freight if you don't have a harbor freight around it's like white trash disneyland people it's pretty sweet go in there you can get all sorts of tools so cheap okay um now over here in this business we might write off expenses to let's say apple store or i might be writing off dining or my auto and i could do a little home office here on this side and i could do home office on this side what's the other the store where you buy all the electronics that i'm thinking of seriously you're throwing out radio shack what are you from the 1980s what even what best buy radio shack what the hell what kind of operation are we running in here are they even in business still i don't think they are no radio radio stream there's one uh there's one in moab still there's one i've only seen one i've only seen a radio shack on stranger things and so i'm just going to leave that it okay so that's what that's where what's his name worked fiona and wynonna ryder's boyfriend and stranger things worked at radio shack sean ashton huh see i can throw down all right okay now here's the point people let your business bank account pay for business stuff let your rental property business account pay for rental property stuff let your personal account pay for personal stuff it keeps life organized all right now why would i say be careful trusting your banker because when you go to open up your base business bank account they are going to drive you insane you're going to walk in and go hey i need a business bank account they're going to go we need your operating agreement we need your articles we need the ein we need your blood test your cove post results your vaccine you know you know statement that you've been back they give you everything they're just they drive you nuts now let me say this everybody this is so important this happened to me the other day and i'll give an example bankers are a service provider what they say is not gospel it's how they run their bank if you don't like the services they're providing go somewhere else you're the customer so many people walk into banks and they get intimidated and for the banker says this is the way it is they sound really convincing but it's bs you can go to another bank down the street and get a different answer you can go to a credit cue credit union heaven forbid and now there's online banking services that are amazing that make life so much freaking easier so when you walk into one of the big banks and they give you crap say thank you so much but do you really want my business because you're making this overly complicated can i talk to your manager be nice be respectful but remember you're the customer you're the one in charge so when it comes to business banking be respectful but just realize that you don't have to work with them okay example i went to an unnamed big bank a couple weeks ago to open two bank accounts now let me tell you what i was doing this is kind of fun uh this gets you guys juices flowing i was setting up my llc for my crypto mining rig that's right i look like an old guy but i'm freaking crypto mining so here's my trust down here and i have in my structure i have a roth ira now i've got i could expand i've got multiple iras and my kids and i'm not a billionaire you know but our structure is very my structure is very similar to many of my clients but in this little example i have a roth ira that owns an llc 100 this llc is what holds my cryptocurrency it's a holding company for crypto that's the only purpose it has i can look on my app right now as to what my llc is worth with my crypto wallet so i have set up a wallet for this llc but i didn't stop there this llc opened another llc that purchased my crypto mining rig this has its own wallet as well so i'm going to call this a little wallet and i'll set up a little wallet over here now where is this wallet located this wallet is in nicehash and i can go over to my little nice hash wallet there it is it's yellow and then it goes over here i gotta be careful because you can see my bitcoin my nice hash gets paid in bitcoin and i can look at my portfolio right inside my nice hash wallet that's owned by this llc now for privacy i'm not going to tell you the name of my trust i'm not going to tell you the name of my llc that holds my crypto and i'm not going to tell you the name of my llc that holds my rig that's a privacy strategy now if you want to do business with me i'll tell you the name of my s corp all day long it's marc j kohler inc call me i'll also tell you the name of our law firm kkos lawyers i'll tell you the name of this see these are operational businesses and i don't want profit privacy over here i want you to know where we're doing business i want to brand those i want to trademark them i want to make money but they don't hold my assets these bank accounts have merchant accounts i go to the bank i open a bank account i tie my merchant account maybe a shopping cart i just want to think of shopping cart in my website they're all intertwined i can do paypal i can do venmo i can do apple pay i want to make it easy for you to pay me and find me to do business but i don't want you to find my assets see how i'm combining banking with tax planning with business privacy asset protection [Music] that's what tax attorneys do and we don't charge an arm and legion to do this we can build your diagram in an hour make a plan for you and tell you what some other surfaces might cost this is why we're booked out a month because clients have figured out we're kind of a fun little secret out there so we're excited but but today it's free i'm trying to teach you as much as i can so i've got an llc owned by my roth this llc owns this llc a hundred percent i'm doing crypto mining up here so i've got a mining rig with three graphics cards bing bing so one two three and i'm earning bitcoin that goes into my nice hash wallet now i've got other videos on this you can go to youtube and type roth crypto mining my video will be right up there in the top two or three please watch it you'll love it i now teach more how to do this but what's the point i'm trying to bring up here the point i'm trying to bring up here is banking you can't do this without banking and if i think about this if i walk into a bank and go i need a bank account for my llc owned by my roth and it's going to own crypto the banker's head's going to spin and then shoot off and explode right they're going to be like what the you know they're going to run out screaming out the door bankers don't get this i'm sorry so you've gotta i feel like a jerk saying all this but you gotta dumb it down they're on a need to know basis you're the customer so you're gonna go into the bank and keep it simple don't walk in there go i'm setting up a proper i'm setting up a family management company to hire my kids their brain's going to go you know say i'm setting up a roth ira llc to go mining rig you know you know build crypto and well they're gonna go so what did i do i mark kohler screwed up i went in there and thought i could talk to this person like a human being so i went in there i had my articles so you're gonna have your articles of organization this is let me give you the list you're gonna go into nine times out of ten once you get through all the crap at a bank or credit union or an online banking system and i'm going to give you some references for some sweet online banks in the notes below hang tight when you go to do this you're going to need your articles if you're doing an llc they're called articles of organization if you're doing an inc they're called articles of incorporation if you're doing a partnership it's called certificate of partnership this is what's recorded with the state so you have to show up with that okay then they're going to want to see the ss4 ss4 is what gives you your ein that's your electronic identification number that's all you need now you probably need your driver's license to prove who you are but that's all a bank really needs is article and ein that's it but they're gonna want more stuff because they're a banker and they freak out if they don't know everything but you're gonna keep it simple but here's what mark kohler did i went in and said hey i'm setting up an llc it's owned by my roth and this llc is also owned by this llc is owned by this llc i need two bank accounts here's my articles in ein here's my articles in ein let's go the 20 something year old which is what you're always going to get on the front desk level he looked at it and i swear his ears started to bleed and he and goes called chicago and i'm like oh no and he starts calling his manager in the region hey i'm trying to set up an llc owned by a roth ira you could hear that person's brain explode and then i don't know let me transfer you then another brain was exploding i don't know what to do and then blah blah i need your articles and we're going to have to look at the opera grand new game it's going to be three or four days i said stop stop i was into this 15 minutes and the kid's name his name was jeff i said hey jeff jeff stop hang up the phone please hang up the phone okay let's start over jeff you know you want my business i've got 20 freaking bank accounts here you can see him jeff before this gets ugly let's start over let's say i came in jeff and said that i own an llc 100 me i'm the manager and i have another llc owned by me 100 and i'm the manager could you just set up those bank accounts quickly if you just had articles and eins and he goes yes and i tried to be funny i stood up turned around and said hey jeff could you set up two bank accounts for me articles articles he goes sure mark let's do it now we were done in 15 minutes i had two bank accounts ready to go and i was out the door did i lie to him no a roth ira is beneficially owned by me the beneficiary and owner of the roth account i didn't lie to him i really owned it was i the manager of both these llc's yes and i can be the manager of an llc owned by my roth ira and i'm building cryptocurrency tax-free i had my bank accounts i kept them on a need-to-know basis and i kept it simple don't go into the bank and start telling them your life story it over complicates it i don't know was that helpful we wanted to talk about that so i could keep going on and on but i get calls from clients all the time that are at the bank and the bankers freaking out so keep it simple tell them you're the owner and just set up the gosh darn account now i don't want you to go and start laundering money and lying about who owns what and all that i'm not saying that but if you're ultimately the owner anyway you can generally keep it simple now jack here said he had the same problem with the same guy at the same bank the other day and he said mark i walked out and he went down the street to a credit union and they just rolled out the red carpet and they were simple and easy to set up his llc bank account cool you can go to a big bank and have a good experience you can go to a credit union and they're going to want to draw your blood so again shop around you're the customer and you get to choose where you bank now in general i like all my banking at one place because then i can do online transfers i can look at all of my accounts really quickly on my app so i don't want to have a counselor to you know a big bank here and credit union there and online bank there i want to keep them organized for me in one spot but other people say mark i want diversification for privacy and all these other reasons so to each their own there's no right way and where i'm going wrong way to do this so i have a bank account here so let's go back here you may have an llc let's use black here so that it looks uniform you may have another bank account here number four that's another llc bank account that's owned by your roth now a couple of their bank accounts i like to set up is an emergency account and this is a dave ramsey and mark kohler strategy emergency account and what i want in there is a thousand dollars and i also want a kind of a fallback account just in case something big happens that's bad in this fallback account i want three months of your living expenses so let's say around 15 grand just to be safe maybe 10 to 15 depending on what's going on in your life so now i've got one two three four five and six six bank accounts but look at their drawers to keep your underwear and socks and t-shirts separate other bank accounts i might have i have investment accounts at acorns i love the acorns app i can swipe up here face id go boom and right here i have my acorns account i love acorns and i can see right now what's in my acorn savings account i actually have two parts to my acorns a short term and a long term i teach that as well that's type that's a type of bank account but it's investing and i'm going to use this to fund my roth ira um my kids have bank accounts you and your spouse may have different bank accounts so don't stress out about having bank accounts treat them like drawers now jack made a good point the other day some of these big banks they're nailing you 5 10 15 bucks in account fees if you don't have certain balances talk to them about that right out of the gate am i going to have bank fees for a certain minimum balance i heard chase is now a thousand they want a thousand dollars as a minimum balance or they charge you 10 bucks wells fargo 100 500 shop around credit unions free huh i hate credit unions though so that's just me okay now okay mortgage all right last example and then i'm going to answer q and a from all you guys so um this happens all the time um jack you don't mind if i share your experience okay so my daughter um and jack here they went out and purchased recently a duplex that they've been able to convert to a triplex threeplex they're gonna probably bring in a couple grand in month with rent and be able to live there for in the third unit huge and they got a sweet mortgage with three and a half percent down now it's easy to say what they got you know that's really cool oh my gosh they got a threeplex under 200 grand and they're going to create 2 000 in rent and live in the third unit for free i love them i get excited hearing that story and i had a duplex when i was in college and i learned how to be a landlord and i was a freaking idiot now they're doing a better job than me now here's the interesting point jack and allison my daughter allison has been hearing me for her whole life buy a rental property buy a rental property your first home could be a duplex you should have a basement rental so when her and jack got married a couple years ago they started saving their money so they could buy a rental they walked into an unnamed big bank about six months ago when this process was ready to get going they had saved up ten to fifteen thousand dollars they were ready to go i told them about the uh rural development loan which is oftentimes zero percent down there's also the fha first-time home buyer based on your income you might be able to get as low as three percent okay so they walked into a big bank within 10 minutes they said oh you can't get a loan you won't qualify you're college students no good maybe come back in two years that's literally what they said they walked out demoralized they were like what the freak has mark kohler been talking about i thought we could get a loan i thought we could buy our first little home and buy a little duplex and they came home pretty dejected and i said well tell me about the story and they and i said let's talk about banks and they got the same speech that i'm giving you right now and they're like you mean every bank is different and i said yes let's go to a different bank tomorrow and i said dress up nice i'm not going to go with you take your two years tax returns they've already been working on their credit score they had money in the bank saved and i said go into a different bank and they did they went into a different bank the next day and the banker said we'd love to give you a loan and you know what i think we can get you into a three percent and let's run an app right now and they ran the numbers he's like here's what your down payment would need to be and here's what your mortgage payment might be let's pre-qualify you go shopping within two to three weeks they had made a couple offers and it was a lot of work to close the deal because they wanted an fha loan and they had to do some repairs before they could even close because you had an fha inspector but in the end of the day they shopped around and they they kept bugging him see the squeaky wheel gets the grease when you work with banks don't give up go to bank number one go down the next door bank number two i didn't get the answer i like bank number three what's the interest rate i don't like that interest rate bank number four and you shop around you are the customer you're the captain of your ship and if you don't like the bank you're working with throw them off the ship and find a freaking new one it's your world it's your american dream it's your side gig it's your rental it's your home the bank is a resource and if you don't like that resource go to another one now sometimes you're asking the impossible and you might get five answers that say no maybe you need to change the equation and get to work on whatever the problem is but sometimes you can find an answer jack anything you'd want me to say to add to that shop around was that story fairly accurate anything i could add i mean was his name warbucks you know that's from the movie annie or the play one might say anything else well even like we got approved for they accepted our app i'm gonna repeat this and then we had to go to a couple different banks oh yeah that's right and then i kind of called in a favor with a friend too that had a connection so here's what happened actually that's just the last last note so they went to the second bank got pre-approved went out and made the offer and then when they went to that same bank to pursue the loan they ran into some problems and i said well that's a weird problem and so i called a friend at a bank and i said can you help him out and he's like yeah that's weird they don't know what they're doing there so the first bank was really bad the second bank was okay the third bank actually closed the loan and they ended up shopping actually a couple banks but the essentially the third or fourth bank was able to close the loan so they went from okay to better to great and so again you might use multiple banks in the process to get what you want okay all right that's my speech and i hope that helps some of you this is your life you're in control don't get frustrated change your mindset be positive if there's a will there's a way don't give up you can keep knocking on doors be respectable be respectful don't be a jerk honey always gets a better answer than a baseball bat and uh it works out great okay all right i'm just going to start answering some questions from youtube and facebook and i want to tell all of you thanks for being here i love this i'm having a good time and if i'm going to read these questions from a few feet away i've got gotta put on some glasses okay okay all right um oh and before i forget make sure please if you haven't subscribed to my youtube channel uh just search mark j kohler i shoot videos every week all the content there is packed with info that is free of course and whenever i go live you'll get a little ping to let you know i'm out there live and i really appreciate you sharing the videos or anything okay i'm gonna go through quick i'm going to try to answer these questions as quick as i can today and i'm just going to give out some i'm going to give out some books for some good questions should i do that no random i'm just going to say good questions all right glam rhinestones once i convert to s corp do i need to do taxes quarterly uh here's the technical answer absolute freakin lutely okay all right now for those of you that are going to have an s corp you've got to take a w-2 and you're going to take draws now the technical procedure is you take a draw and then you do your w-2 after the fact so quarterly four times during the year you're going to issue a 9 41 and this little 941 report is going to claim how much you have to take in payroll now for those of you that don't know what the s corp strategy is go to youtube type kohler s corp i've got multiple videos up there within an hour you're going to be an expert i'm not kidding you're going to know more than half the cpas out there by watching three or four videos on my my channel about s-corps i teach classes to other cpas about s-corps and it doesn't make them bad cpas you just don't learn this in school so you're going to do quarterly payroll once you turn your llc into an s corp it's you got it you can't get around it so um it saves you taxes it's a good thing and once you make at least 40 grand a year net you're going to start payroll and we're going to split this 50 50 in this example so you take 40 grand in draws i take 20 grand in w-2 and 20 grand in k1 and if i take 20 grand divided four ways you're gonna do a 941 for five grand every year every quarter that's how it would work watch my videos on that i've got a whole chapter and a book on that okay andrew says if i move my crypto and mining to an s-corp llc how will that impact long-term short-term capital gains whether it be fees thank you okay andrew great question first of all i don't particularly like that you're doing mining outside of a retirement account because it's going to cost you more in taxes okay everybody um so ryan is doing crypto mining everybody listen if i own a restaurant do i pay self-employment tax on my restaurant revenue yes if i am a landscaper do i pay self-employment tax when i go out and mow someone's lawn yes if i'm a dentist and i do uh teeth cleanings and replace some cavities or fill some cavities do i pay self-employment tax yes dentist doctors engineers plumbers electricians realtors brokers fix and flippers and crypto miners it's it's a service when you're mining you're going to pay self-employment tax so ryan's halfway there ryan is going to put in his s corp llc he's going to do his crypto mining and so crypto mining is revenue in his s corp now he can do other things he could be a realtor he could be a landscaper he could be an electrician you could run all that revenue through one s corp he's going to take a draw whenever he wants money and then we're going to do is w2 k1 that's how it works every dentist doctor engineer realtor broker all those people we use s corpse that's what i am trust me stay away from a c-corp in freaking nevada it's a scam it's a ripoff you're going to go with an s corp in the state where you live and ryan gosh darn it you cannot have your mining rig in nevada and think you're going to get out of this wherever you live is where your s corp needs to be period and i stand behind it i've got x irs agents that are partners in my law firm i mean in my accounting firm i've been doing this for 20 plus years trust me we will not lead you astray and i'll sign your tax return and if there's penalties i'll pay them if i'm wrong if anybody's telling you different you can set up your mining rig in google slavia because you're off the grid and your wallet is over here and it's encrypted and all this oh someone gave you that advice well are they going to sign your tax return no then who's in charge of your tax return ultimately you and if you get audited by the irs guess who's going to fry you so if someone on the web to on the dark web or wherever tells you you can do it differently with your crypto mining and your crypto trading ask them if they'll sign your freaking tax return they'll be out of there be careful where you get your advice people so ryan is mining ryan you're gonna do that mining in your s corp now here's the trick you are going to the day this is what i do the day you get paid in bitcoin from nicehash or wherever you're using an asics rig or you're doing all sort i know there's ten different ways to do mining you might be doing staking i get it but if it's ordinary income you run it through your s corp and at the end of the day you transfer the coin to a holding company llc that's where i hold my crypto my crypto holding is over here and that's where i pay my short-term and long-term capital gain i've got asset protection between my mining rig and my crypto this llc holds my crypto this s corp mines for crypto gets paid in bitcoin or whatever and transfers the coin over here this has a wallet this has a wallet so ryan to answer your question that's why i paused there is no short-term long-term capital gain problem over here because you're not going to keep the crypto here the minute you earn it you bounce it over here you pay for the earning here and you're going to pay tax on that and we're going to do as much as we can to save the money but then boom you're going to hold it here for the long term and short-term or long-term capital gain now what everybody i did because i didn't want to pay taxes like ryan i did the whole thing in my roth ira now this llc is taxed as a c corp and it's going to pay c-corp tax because it is subject to self-employment tax but every crypto dollar i earn here drops into my roth and ryan i'll never pay tax again so i do a c-corp blocker it's called a c-corp blocker write that down ryan and then it all drops to my llc roth no tax in your situation you're mining over here you're gonna drop it over here and hold it there there for the long term wendy of velasquez and wendy's been on the show before if i buy a home under my name and rent it out how can i put it under an llc wendy that is a great question tax and legal playbook wendy velasquez write that down corey great question now i know ryan and glam are like what the freak why don't i get a book well you're not as cute as windy that's how it works i'm just joking i'm gonna give a bunch of guys books too okay wendy tax on legal playbook okay wendy she's gonna buy a home and rent it out how can i put it under an llc so what she does now remember she's got her trust and this is her this is wendy down here and so she is going to buy a home and she's going to go fannie mae freddie mac traditional loan she's going to tell the bank she's buying this home she's not going to lie on any loan docs i don't know what she's going to say that's up to her she's going to buy a home she's not going to live in it she's going to rent it out she's gonna create an llc owned by her trust and on day two she's gonna deed this little home that's currently owned by her we're gonna deed it up to the llc now everybody quit freaking out in 20 plus years i've never had a client pay on the due on sale clause the bank has already sold her mortgage five times over and she'll probably go through three different services in the first month it's gone the bank does not care as long as she is still the guarantor and she's on the mortgage but she can transfer it to an llc set up a lease get asset protection and it does not pierce the bail for her to be the guarantor on the mortgage that's okay so wendy you're going to do typically a warranty deed if you're in california it'll be a grant deed you're going to deed the property up to the llc right after closing we're going to set up the llc in the state where the rental property is held we can help set up your llc brady weiner in our office is a paralegal that does the deed transfers every day we've been doing them for years you're not going to go ask the bank for permission you're just going to do it i have met with so many banker attorneys that are like we do not care just pay the damn mortgage and you can do it if you don't pay the mortgage then we're going to come in and start screwing up your life and we're going to foreclose and we're going to transfer it back to your name but as long as you pay the mortgage they do not care do not worry about the due on sale clause windy get it deeded over to a new llc and you might put two or three rentals in one llc that's a whole other topic go youtube kohler llc's rental i got multiple videos that'll teach you how to do it okay steven cern says can i loan self-directed ira money to my stepson who uses the money to buy and improve a property and then sell it back to my ira the answer is yes right stepson are we okay we're not i don't think we are are we son-in-law yes i might call right now the infamous matt sorensen because we were just talking about this yesterday and i get it all jacked up when we go from stepson to his son-in-law okay now everybody when you have a roth ira let's go back to my roth ira i can own this hey a stepson is prohibited from stepfather in an ira transaction both directions stepson so i knew i was right non-prohibited it's the son-in-law is prohibited from okay stepson okay since i'm live on youtube and facebook i'm not going to give you all the details but i'm just going to say stepson there's a good chance that they're not prohibited son-in-law from father-in-law or father-in-law can loan son-in-law money which direction both son-in-law okay but okay got it thanks man you rock everybody live i'm gonna give away matt sorenson's book right now matt is that okay with you i'm just gonna give away a book are you okay with that okay i have to sign it okay i'm gonna sign it sorry matt all right matt sorenson the author of the self-directed ira handbook we just got him on phone a friend phone a friend i phoned matt sorenson the author of the self-directed iran ira handbook we're going to give it to stephen cern i hope i send your night your name right stephen you got it corey now anybody that wins a book today or is given a book you email corey at mark j kohler.com corey mark j kohler.com you just say mark gave me a book and cory will line you up and mail you the book and he needs your mailing address and all that now here's what matt sorenson just said a stepson is not prohibited with your roth ira or traditional ira so if i want to give a loan if steve wants to give a loan to his stepson out of his ira he can do it not prohibited and the stepson could loan step father money out of his ira the son-in-law is a different story you guys ready a son-in-law could not loan money to father-in-law because it's prohibited but a father a father-in-law can loan money to a son-in-law that's how it works i know it's weird there's a whole chapter in matt sorensen's book on what's prohibited and what's not this is the best-selling book in america on self-directed ira rules this is the second edition if any of you need this book it's on amazon and you can get it really quickly at sdirahanbook.com s d ira self-directed ira handbook.com get over there and get a copy i literally have one on my desk and it's all thumbed with little folds and everything it's tricky so you need to know this these are probably the two best books for just having on your desktop the tax legal playbook and the self-directed ira handbook now i've got two other books here i'm gonna give away three and i've got my workbook that's awesome too but these are like daily resource books that you're going to want to use so steven thank you all right i'm going to jump over to cash to burn wow cash and burn 150 i need your books will there be a coupon day yes we do a back to school special on labor day this is coming up is it labor day memorial day which one did we already have i always forget which one's first okay so here in september on labor day weekend so in one month we're going to have a special and give and 25 to 50 off a lot of my products so keep an eye out for that anybody that would like it hook up the book you know you got to ask a good question and i'll give you a book come on you know millie ask a good question all right uh if some of you are seeing a comment from a darren charrington here he is an attorney on my team he is at his desk answering questions for any of you so if you see answers from a darren charrington he's with me okay um john says in texas disabled veterans do not pay property taxes on their home if the home is moved into a revocable living trust will the veteran have to pay property taxes on it john that's a great question my gut feeling would be no but you're going to have to maybe look at the exemptions for that um because the government wants you to have a trust the government if you're disabled and thank you for your service does not want you to pay property tax so you've just got to make sure you marry those two rules or legal benefits together so if there's an exemption you have to apply for and i apologize i'm not doing business in in texas law every day we know a lot of the texas rules and we help clients in texas every day but whenever i don't i recommend go get do a little research john but i would think you're going to be okay but double check that make sure that you look at the exemption form to not pay property tax and say i'm a disabled veteran i'm the 100 percent owner of the property through my revocable living trust and just make sure you check a box for an exemption look into it okay where am i going corey laura okay i'm going to try this out laura laura saint pierre hello i am a freelancer 1099 work who wants to get into rentals if i have a lot of assets home a rental 401k but inconsistent income because she's a freelancer will the lender still loan to me based on my collateral laura great question when it comes to banks first of all banks not only look at your collateral they look at your income so it is true you're gonna have to make sure you look really good on the income side as well as the asset side now let's all talk about laura here for a minute is that okay lara laura let's look at her trifecta and this is what any of my attorneys can do they can set up your trifecta give you a little diagram give you a checklist for the year and meet with you each year to help you stay dialed in and if our appointments are out at four weeks don't stress just get on the calendar we'll take care of you all right so laura is a freelancer that's an entrepreneur she's got a 1099. now everybody look at this what's laura gonna face in taxes let's say laura brings in 60 grand she's a sole proprietor so i'll just do a little soul prop she's going to report this on a schedule c on her tax return and let's say she writes off 20 grand in all sorts of things dining home office auto home depot best buy she nets 40. okay everybody hang tight now if laura goes to the bank with her 1040 and she shows them that i have 40 grand in income that's going to help her qualify for a loan so you want to go in with your best foot forward lara and show him your 10 40 tax return with your schedule c and your tax return now as your accountant this isn't good you're going to be paying out the rear end in taxes sorry for my french there because you're going to pay 15.3 in self-employment tax on 40 000 what 15.3 that's 6 000 then you're going to pay state tax if you're in a state with state tax plus fed do you see that everybody laura is getting killed as a freelancer on taxes and it's self-employment tax so what are we going to do steve earlier on one of his questions said well what about the s corp so what we're going to do is want to convert lara over to an s corp now she could be an llc taxed as an s corp or just come right out of the gate as an ink but the most important thing is i want her to be an s corp now look what happens now i'm going to do this in blue the same 1099 is going to come in for 60 grand then she's going to write off 20 000 in expenses she's going to net 40. same example apples to apples see she got the same write-offs and s-corp's not going to give her more write-offs she's got all of her write-offs and laura i want you to read my books on home office cell phone dining travel i mean everything we can write off we want to write it off and you're going to net 40 grand that's what you're going to take into the bank but here's why you're going to look sexier to the bank when you take that 40 grand we're going to divide half of it into a w2 and banks love w2s and half of it is a k1 now the bank is still going to see 40 grand of income they're just going to see half of it is w-2 and half of it is a k-1 you want to go to a well-educated banker that understands this if they don't understand that you made 40 grand go to a different banker just like jack and allison they shopped around now why do we do this and i'm going to put this in red she only pays fica on the w-2 the f-word fica what the fica over here she paid 15.3 percent on the entire 40. but we're going to split it we're going to do 20 grand in w-2 and 20 grand in k1 we just cut the 6 grand in half 3 000 we saved 3 000 by doing an s corp now i know for some of you that are watching from california they're like mark an llc is eight hundred dollars and you charge eight hundred dollars to set it up holy crap that's sixteen hundred dollars and blah blah blah blah blah okay california waives the eight hundred dollars for the first year on an s corp and yes you're gonna have to do a tax return as i told steve you've got to do quarterly payroll and s corp is going to cost you 2 000 a year that's why i say the break-even point is around 40 grand because look at the s corp's going to cost her two so let's put it in black i mean i want to show the cost too cost two thousand saved three thousand now i know hey this is hard math work with me uh save 3000 spend 2 000. now hold it this is hard jack help me out save 3000 spend 2. what do you think would you do it i mean that's kind of good i don't know that's how the s corp works guess what helps everyone helps the economy hurts no one that was okay all creepy do the s corp laura that's the moral of the story you're going to look better for the bank with the w-2 you're going to save on self-employment tax and any of you out there that are getting a 1099. uber side gig selling crap on ebay affiliate on amazon dentist landscaper doctor engineer all of us if you're getting multiple 1099s funnel them through the s corp saving money that's the plan all right then you're gonna go out there set up an llc buy the rental in your own name like we talked about just a minute ago you're going to buy the rental in your own name and then deed it up to the llc now look at laura she's got a side gig she's saving taxes she's buying rentals she's got a 401k laura i love you you're cranking all right next question where should i go um can't torpedo says can you write off the covet testing as a travel business expense that's a great question no one's asked me that all right if you're traveling for business and you have to pay for covert related testing related to that trip i'd write it off as a travel expense not medical i really would i like it no one's asked me that question torpedo you just won a book torpedo joe you won the business owner's guide to financial freedom love this book it's for business owners now since torpedoes asking about this i know he's a business owner or torpedo joe could be a female so torpedo joe gets a business owner's guide to financial freedom tech uh email corey corey mark j kohler dot com now notice the question there he's traveling for business had to pay for a coveted test to travel apparently whatever the deal was but it was a business trip it was a business related expense i'm going to write off that coveted test as a write-off love it corey has a question our producer yes corey because i know of a lot of people that got stuck in another country on a business trip doing something else that got stuck okay and they had to stay longer yes okay let me tell you corey's question let's say torpedo joe is flying out of the country ooh this could be really real knock on wood let's say torpedo joe in the next three weeks is traveling out of the country for business pays for his kova test business write-off travels to another country and the delta variants whatever freaking covet what do they call a delta variant whatever nails us please no do we really have to wear masks why are people that are vaccinated wearing masks to protect the people that don't even want to get vaccinated that's all i'm saying everybody says don't go there oh no i'm going to get in trouble okay i'm vaccinated i like wearing masks do i need to say that but anyway i'm in trouble okay i'm just gonna move on move on i know this is so hot okay but listen to the story torpedo joe goes out of the country delta variant hits he's stuck this happened to a lot of people when covet first hit so torpedo joe is traveling for business and gets stuck somewhere and has to stay in a hotel pay for food and comes back as soon as possible once the travel restriction was lifted is that a write-off yes because torpedo joe was there for business in the first place now let's say torpedo joe stays longer than he could have to get back so as soon as the travel restriction was lifted he's like i met this cute girl over here i'm going to stay a few extra days that would be a personal expense he only gets to write off the business expenses for staying there as long as it was required due to this travel restriction okay all right torpedo joe great question do you guys want another cool question did i one or two more questions did i talk about the garage on the last live i did didn't i i did i forgot someone commented okay so i forgot on the last live to talk about here was the question so here's your home and you have a garage so here's your garage i'm visual with everything okay garage i'm a guy you know okay all right so garage house i have a small business you guys don't like me today do you everybody's like saying mark you're you're pushing the envelope i want this i want this rated e can we get it ready to eat i'm just joking okay so okay here's your garage here's your little front door and here's the driveway and you have a business vehicle i had the coolest question the other day someone said can i write off the garage under the home office expense because i have a business vehicle i was like no one in 20 years had asked that question my office debated this and we said yes and no here's what we would say yes a hundred percent if here's the if it's a hundred percent business use vehicle so let's say it's a delivery truck and you park it in your garage at home for your employees to use okay and so it's a 100 business use vehicle and number two number two and number two number one the garage is not used for personal use whatsoever okay so now i could write off uh a hundred percent of this garage assuming that a hundred percent i'm gonna put that in red oh come on come on come on 100 percent business if it was a 100 business use vehicle and the garage is not used for personal use at all okay now what happens if your car for most of us my car is not 100 business use so let's say i'm 70 business use vehicle and to make it simple i use 30 of the garage to store my surfboard and a bunch of garbage like most of us do so i've got seventy percent business use on the car and thirty percent business thirty percent personal use of the garage now as you can see i planned that perfectly because that means my garage is 70 percent business maybe i'm storing some supplies inventory equipment that are business and my car is 70 business use i think you've got an argument now here's the problem with the home office deduction it has to be exclusively used for business in order to be a write-off that's one of the tests the other is your primary place of business but we got the admin exception yada yada now any of you cpas or tax lawyers out there you know i'm pushing the envelope with this one but let's just think about it let's say that the garage is literally 70 percent dedicated exclusively to business and your business vehicle is 70 with good record keeping business i might go for it and that's what our office decided i like it so talk to your accountant if you're using the garage for storing equipment supplies or inventory and you've got a business vehicle over 50 i can't just be doing mileage i want a business vehicle that's over 50 and you're using actual for your business mileage i like it um now oh one other thing for banking what i didn't talk about in banking was back to the very beginning of this is that we have some online banking resources that are amazing we've got three banks we really really like now some of them are used just for ira llc's some of them you need to be 100 owner of the llc to get some sweet banking but we're going to put those links down in the uh description and jack is going to kind of describe which each bank is good for and put the contact information down down there for you uh we uh just went and signed up for one of those banking uh debit cards as a single member llc and so far it's been going really well so uh what's her name i'm going to give him a shout out d i beat that's right zebo z i b o it's business banking for single member llcs they really like it for single member llc's doing real estate but you can use it for a single member llc for any type of business now that's your shout out zebo we got to get you on our show we want to be on yours let's get talking because i really like what they're doing for business banking for small business owners solera bank we love them for ira llcs and titan bank i want to give all three of them a shout out they're great we're going to put them down in the description solara and titan as well as zebo okay so i answered the garage your resources for banking are down below and two more questions one one more question one more question and corey you know what i'm feeling i'm feeling generous i'm gonna let corey if any of you want to send a hate mail you send it to corey by the way ladies he's single helps the economy hurts no one i'm just saying ladies he's a good-looking guy he's got a good job he's pretty ripped okay i'm gonna give away four books and corey is gonna get to choose those winners okay and the grand prize winner grand prize is going to win my eight steps workbook which is 60 videos online access immediately to help you build or grow start your business i have successful business owners that have loved this eight town home workshops uh hour and a half each plus 60 other videos comes with a business plan marketing plan and strat plan if any of you are trying to build your business it's 99 bucks you can get it at amazon it's a freaking awesome workbook there's nothing else out there like it it took me two years to develop it okay corey i'm going to come back to you and you're going to announce our winners in the meantime i'm going to choose a question slide go slowly i'm going to chewed i don't like that one keep going down no go up go up the other way or is this the way to go okay okay i'm clearly thinking about selling my business own four years is that it is that the top yeah okay um okay i'm gonna go to swing for the ring i like this this is a good question for everybody swing for the ring asks can i use a health savings account to invest in a rental property yes and i have done that swing for the ring now everybody i want to talk about the health savings account and don't worry you've already typed i want the book i get it don't type it again corey's going to choose five winners four book winners and a grand prize winner for the workbook but everybody pay attention here we're going to talk about the health savings account and this is a huge tip this can save and make you thousands so here's how it works let's go to our trifecta so in your trifecta here's your trust here's your 1040 and here's your personal bank account all right now in your foundation you're going to have your day job you're going to have your side gig and some of you are going to be full-time small business owners maybe laura with her 1099 freelance okay so you've got your small business llc here ooh that was ugly i gotta erase that and do it right okay all right so here this is like lara she's got her llc soon to be s corp side gig 1099 whatever now over here you're going to have your llc with your rental property and then your trust is also going to own your personal home now your personal home might be a duplex or something creative but it's going to be owned by your trust your trust owns your s corp llc and your trust owns your rental llc see the trifecta i know some of you get sick of it i don't this is your foundation be building it ever you have a diagram i carry around my own diagram in my own workbook that i can be looking at all the time this is my calendar and my workbook it's got all my notes my phone numbers i carry this around with me everywhere i go have the same thing get off the phone once in a while carry some paper around it'll help you be more organized now in this mix you might have a day job 401k if you're single married you might each have your own roth ira single or married but here is one of the biggest secrets in building wealth i'm going to put it in red so we can highlight it in this diagram i want all of you to try and it depends on your health insurance plan to set up a health savings account hsa now sit back calm down just hang with me a health savings account is not a user to lose it plan you don't have to have a day job to have one you don't have to have a business to have one all you have to have is a high deductible plan this year i'm going to go straight to my little handy dandy mark kohler calendar i'll be selling these in december again for 2022. the health savings deductible for 2021 is if you're single it has to be at least a deductible of thirty six hundred if you're married oh whoa whoa that's the health saving account contribution oh my gosh your minimum deductible is 1400 if you're single this year or 2800 if you're married your contribution is 3 600 single 7 200 married so you can put in 3 600 or 7 200 if you're married and you get a tax write-off on the front page of your tax return now why do i like this health savings account because it grows tax-free it comes out tax-free for any medical expense and you get a tax deduction to put in the money you take it where if you everywhere you go it's like a supercharged roth ira for healthcare now i'm going to blow your mind with two things here first nine years ago it's been at least eight to nine years ago i formed an llc in illinois and this little llc owns a rental property i bought for 40 grand i've had it for nine years it's got it's a section 8 low income housing rental it cash flows a couple hundred bucks a month and it goes back into my hsa tax free it paid for molly my daughter's braces i can pull it out for medical anytime i want my hsa does not just have to be at a bank my hsa can form an llc and buy a rental property oh you want more they want more jack you guys want more that's not good enough last year i formed an llc in honor of john dutton and yellowstone and i have a little llc owned by my hsa with my contribution from last year and i bought four cows no actually i gotta clarify here i bought five pears now what for some of you that are farmers i bought five mother cows that were pregnant this spring they gave birth and believe it or not this is actually quite rare they usually kind of a ratio of two to three female calves or bulls my five mom cows gave birth to five bowls so now i have 10 cows in my livestock dutton kohler llc for for yellowstone you fans and i've got 10 cows now in my llc i had five moms that gave birth to five bulls these bulls recently were turned into steers it was pretty traumatic for them but anyway i'm gonna sell these ten cows right now in the fall now if you've noticed there is a drought in the west and a lot of cattle are being sold off because farmers don't have enough feed for their cows so right now cats beef prices are down but guess what they're going to be coming back with a vengeance as many are predicting if you have enough feed for your cows and when i bought my 10 cows we bought enough hay to get us through the winter so next spring in 2022 i can sell my 10 cows but it's better than that i have 10 cows and the five moms are going to be pregnant again i hooked them up with a bowl in town so anyway i'm going to have five pregnant cows and five bowls and i'm gonna sell my five pair which will be ten cows plus my five and i'm gonna make money and i did it all in my health savings account and all the profit goes down to my health savings account tax-free and i can pay for chiropractors dental i's co-pays deductibles prescription drugs your health savings account can be self-directed your health savings account goes with you the rest of your life your health savings account is like a supercharged roth for healthcare and all of you can have one you can go to directedira.com and set up a hsa to just own crypto this is the stuff i'm teaching i love it please don't go anywhere get onto my youtube channel i've got so many freaking videos on all this we've got a podcast every week on self-directing we have the main street business con podcast please subscribe follow me on youtube on facebook i'm going to keep producing content every week and i want to say thank you for being here i love it and my winners corey you've got our five winners must be present to win okay so do do i choose the book or have you already chosen the books okay okay grand prize is last who is the winner of what your cpa isn't telling you ryan lee ryan lee this is a story that's the gateway drug to tax planning you're going to freaking love it i even worked in a little sex scene too you know it's pretty sweet when you find out viagra's tax deductible uh it really is pg-13 anyway but it's going to be a made-for-tv movie now any of you that are winners you're going to go to corey send corey at mark j kohler an email and say corey i was one of your winners and twenty dollars for corey oh yeah whatever ladies you can email corey send him a pic tell him you know where you're at he'll send you no i need a very a headshot i didn't mean to be i wasn't trying to be lucio salacious no just some headshots corey's from texas he's been to bucky's good looking guy played football in high school graduate from college and runs my studio he's legit can i share anything else likes long walks on a beach okay there we go what your cpa isn't telling you okay next winner business owner's guide to financial freedom randy lape you are the winner it's great book i'll sign them and get them out to you and you can give them away as a gift if you already have a copy the self-directed ira handbook by matt sorensen my business partner he is awesome this is a best-selling book on self-directing your health savings account everything i talked about with the cows and your rentals you can do in your hsa it's in this book who's the winner andrea snook you are the winner you're a winner today doesn't that feel good andrea snook my tax and legal playbook oh i love this book second edition and if joe biden's administration passes a new tax law we're going to end up with a third edition but we'll see tax on legal playbook lauren katua lauren coutua is the winner of the tax legal playbook and our grand prize winner of the eight steps to start and grow your business 99 bucks on amazon and it's an awesome book you will love it 60 different videos and webinars and you fill out that out there's business plans in here and qr codes to watch stuff who's the winner so this is only because she's been uh every single one of our lives for like the last two months and has asked every single week okay corey said milly diaz every time she's here she's been here eight times in a row she's always asking questions she's on time and she's very kind on the chat milly diaz you're the winner thank you thanks everybody we'll be here i don't know will we be here next week we're going to be in vegas at our corporate training we're going to do it from live live from vegas oh we're going to be live from vegas put this on your calendar and matt sorensen's going to be with me and we're going to be at a really inappropriate restaurant or club and we're going to be live next thursday if we won't live next thursday at 4 o'clock pacific or mountain at the same time same time so it's gonna be four o'clock mountain five o'clock pacific no that's wrong four o'clock mountain three pacific next week matt sorenson and i live in vegas here answering your questions from around the country please put it on your calendar four o'clock mountain just stick with four o'clock mountain next week and we'll see you thanks everybody keep living the dream

Channel: Mark J Kohler

Views: 369,299

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Id: JEQFiNYVCyQ

Length: 81min 19sec (4879 seconds)

Published: Thu Jul 29 2021