What Your CPA Isn't Telling You! | Mark J Kohler LIVE |

instagram folks sorry for that craziness we had to get the tripod closer to our main camera welcome youtubers welcome facebookers instagrammers i don't know if those are real words but they are today my name is mark kohler i'm a small business tax attorney cpa and attorney helping all of you hopefully today with some tips that are going to save you and make you thousands of dollars ooh where's a copy of my book that i'm giving away i'm going to give away a book every 10 minutes now my marketing folks here are going to alert me what 10 minutes is up and you're gonna choose random winners now do they have to do anything to be a winner do you have to share this or something share it see on instagram you can't share it until it's over leave a comment that you shared it yeah leave a comment that i look really good today and you're in the drawing so there you go okay thanks everybody we're gonna have fun i try to joke around i want to answer your questions i'm going to type your questions down below today's topic is what your cpa isn't telling you wouldn't that be nice if someone wrote a book titled what your cpa isn't telling you well i did it and i put my money where my mouth is and actually a lot of cpas and tax preparers and enrolled agents have started to follow me over the years and appreciate me kind of digging up little strategies and tips that can be helpful so i want to say thank you to all of you tax and legal professionals that follow i follow me i follow several other experts around the country too and try to get the best info i can to you the small business owner in america one out of three americans now have a side hustle so we've got to know these little tips and strategies now i'm going to tell you the 10 things right now we're going to cover so before you go anywhere here are the 10 things that i don't think cpa is telling you enough and then we'll talk about each one for a little bit and then i'm a q a for the rest of the time i'm all yours number one they don't talk about small business enough okay so i'll rec i'll i'm going to expound on these 10 as soon as i get to that point number two they don't talk about the s corp strategy enough this is what they aren't telling you number three the backdoor roth number four the ppp and ertc procedures number five what an estate plan is and why you should be doing it number six the roth and 401k combo because you can have both and they don't talk about the mega backdoor roth we're gonna hit that paying your family members number seven paying family rental property um why am i having 10 and the regular updates that's number 10 oh i forgot one up here number nine updates we'll come to that and number nine self-directing okay to me and i'm hoping many of you cpas or tax professionals legal professionals financial advisors that are out there watching today these are 10 things that i don't think cpas talk to their clients enough about and so i'm hoping to wow you i'm going to talk about each one of these now number one small business i'm going to hit these quick i've got a bunch of questions here that have already been sent in and i'm all yours i want to make you money today i think you're going to love it number one thanks for i got a woo in the studio that was that's a big day this is good okay number one i have so many people that are like i don't i how do i save taxes and i go you need a small business give me something to work with well my accountants never told me that a whole i have a 1099 from uber they just plug it in i go they don't talk to you about small business from that you sell crap on ebay you sell stuff on paypal you have a little small janitorial business a little landscaping business or you've got a side hustle driving for grubhub that's a business that is a business so i bring up one of my favorite movies okay this was a movie called the accountant uh yes that was me in the preliminary photo before ben affleck got the role and i loved ben he was amazing but i was close second i was a close second so this was kind of you know the movie the accountant oh man that's that's my life right there so um i've been learning my krav maga take a punch shoot a gun you know that's what us accountants do in our price time we're really you know secret agents okay so anyway in the movie the accountant if you've not seen it it's on your to-do list in the first scene in the first scene well the first scene is when the fbi agents are outside a stakeout of a pizza parlor that's the first scene the first scene with ben affleck is he's in his accounting office and this little farming couple comes in and they're paying way too much in taxes and it's excruciating for ben affleck the autistic accountant to really talk about this and he says do you have a small business and she goes yes i make necklaces do you like him he's like no and then he goes through and he saves them money that's the movie the accountant i love it number one your accountant should be talking about your side hustle number two the s corp strategy if you have a small business and you're a sole proprietor you are paying 15.3 percent on all your profit this is the f word called fica what the fica and so if you're a sole prop or an llc you are getting hosed i do not want that this fica is a killer so every dentist doctor plumber electrician accountant realtor developer restaurant owner landscaper and i'm going to do one more engineer there's 10 people right there dennis doctors we're all s corpse we want you to be an s corp take a w-2 salary reasonable comp everything else is a k-1 no corporate tax no self-employment tax and no obamacare [Music] this is huge plus you get what's called the 199a deduction deduction so good so if you're a small business owner and make more than 30 or 40 grand a year your accountant should be bringing this up i meet people all the time that meet with an accountant and they've had an accountant for years they never brought up the s corp i'm like oh my gosh and i know you accountants out there you're like well mark you're being too aggressive with reasonable calm really i go to every reasonable comp ce in the country i write articles on this i interview fba fbi i interview irs agents about reasonable comp i have never had a client in 20 years audited for taking too little comp yeah but markets are risky it blows my mind accounts are afraid too much of their own shadow be more aggressive people there's a reasonable comp that'll save you money boom that's number two okay is this okay ally i'm good i'm gonna hit these real quick number three backdoor roth okay there's a party going on and it's called the roth party and anybody that wants to save big money for the future and dave ramsey loves the roth i love the roth the roth party is freaking rocking tax-free growth tax-free withdrawals the rest of your life peter thiel started paypal with his roth ira as an investor worth millions tax-free tax-free people you should be funding a roth and and but my account says i make too much money or i can't do a roth and a 401k because i have a 401k at work no you can still do a roth even if you have a 401k at work well i'm 90 years old you can still do a roth well i'm six year old and i shred paper for my parents small business yes you can have a roth you can all have a roth mark i make 500 grand a year i make too much no you can have a roth it's called the back door roth so here's the front door and right now in my amazing calendar which you can still buy on my website for this year the handy dandy mark kohler 2021 calendar there's a front page here with all your little tax data you're going to want at your fingertips if i make more roth ira contribution phase out oh 208 000 if i'm married 140 000 if i'm single i can't do a roth no no it just means you can't go in the front door so what you do is a traditional ira contribution which is not tax deductible because you made too much money and then you convert it to a roth the next day and you can you're allowed to convert money at any income level so it's called the back door roth go youtube kohler backdoor roth done okay that's the back door roth too many accounts don't teach that okay number four uh a little uh what did we say my number four i'm gonna go back to my list ppp and ertc i'm writing articles every three weeks on this biden in the new administration wants to come out with another 2.9 trillion dollar package for small business owners uh you have got to think about getting the new ppp is there a problem corey 10 minutes huh it's been 10 minutes i got to give away a book yeah okay who's the winner you are the winner of what your cpa isn't telling you the gateway drug to c to tax planning once you read this you'll never go back you're gonna love it good kids bad kids death divorce i even worked in a sex scene so it can be a movie someday yeah it's a little subtle all right now if you're a winner you've got to email corey at mark j kohler dot com corey mark j kohler.com so i will not i will refer to that a minute and every time we give a winner so 10 minutes in our first winner what your cpa isn't telling you it's been out it's over it's almost five stars on amazon some people don't like it because it's a story so i get four stars like this is too much of a story uh that's the point because normal people don't want to read a textbook you geek so i've got other books that are more geeky this is to help the average business owner catch the vision right okay we were called normal people all right so now what i was talking about is the ppp and ertc you have until the end of march to apply for the ppp if you're a small business owner and your business wasn't going on in 2019. have you applied do you know how to apply do you have any articles on this is your accountant talking to you about it if they're not i've got articles on our newsletter and on my website at an entrepreneur.com get over there look into your ppp okay why should you have an estate plan is that next estate plan okay the trifecta i've been teaching for years you need to have your revocable living trust as the foundation of everything down here's your 1040 tax return your trust owns your home your trust owns your llc that owns your rental your iras and 401ks go down to your trust if you or your spouse both die you and your spouse both pass away your s corp is owned by your trust your trust saves legal fees it can save estate taxes state estate taxes there's federal and state estate taxes and it can save your family from fighting and you can leave money where you want it guys you're working so hard for the american dream make sure you put your money in a safe spot for your next generation leave a legacy accountants don't talk about it all right next is the mega backdoor 401k now this is pretty darn cool i've got a new article i'm working on this so let's say here's your trifecta and let's say you have a regular roth ira and you could have a 401k at work or you could have a solo 401k that you contribute to out of your own s corp okay so this is your day job to a 401k this is your own s corp to a solo okay so you've got these two 401ks how much can you put in this year 19.5 now at your day job they may match three to four percent right if you're doing your own solo 401k you could match 25 but how much can you really put in to an ir a 401k this year this year in 2021 i think it's 58 000. it is 57 000 and 2020 58 000 and 2021. so i could put in eight thousand dollars well if you're like mark i put in my nineteen five maybe i paid myself forty thousand in salary i did twenty five percent match that means i'm only up to twenty nine thousand five hundred and if your company your company is not matching 25 so you're even less but if i'm at 29.5 and i want to get to 58 000 you're like i've got to take a huge salary to get a match to get me in the door to 57 58 wrong you can do what's called an after-tax contribution to your 401k darren this is the coolest thing i've got mcdaryn my one of my lawyers here tax lawyers answering questions on the chat trying to help out here this is a new strategy that darren learned when he joined our firm as well which is exciting the solo 401 k you can do what's called an after tax contribution so you don't get a write-off you don't get it right off to put the money in there and i don't have to take out a bigger salary to put the money in there i just do an after-tax contribution so if my salary was 40 and i've got to make up the difference to get to 58 000 i just take part of the profit of my s corp and put it in there and we're looking at 39 49 15 we're looking at about 27 grand 28 grand no 39 49 50 oh about 28 yeah 27 28 000 you put that in the 401 k and then convert it to roth the next day now you have oh my gosh you could have over 30 to 40 000 in a roth in one year at any income level it's called the mega back door roth okay another strategy some of you are like mark move on to a cool one okay the next one is paying your family members whether you're young old rich or poor in your small business are you paying your kids out of your business and you may say mark i'm not rich enough to fund an ira or a 401k in the thousands i just got a couple kids that i'm trying to pay that are in high school great quit paying taxes and giving your kid money put them on the payroll and give them a 10.99 or if they're under age 18 no 1099 or w2 you just call it outside labor now in my books i have a whole section on how to pay your kids i've got a youtube video on how to pay kids under age 18. another video on how to pay kids 18 or over please check them out you will love them so good so good all right now on our list i'm just going to wrap this up and then my q a is all for you we have three more rentals self-directing and regular updates rentals in your trifecta too many of my clients go to their accountant and the cpa is not bringing up how great rentals are rental properties are one of the most tax deferred cash flow tax-free cash flow best investments when i meet with clients people ask me all the time they're like i'm at a dinner party i'm at a family reunion and they go mark what are your rich clients doing and i go 95 of my clients that are doing well or buying rental property is that crazy they're buying rentals they don't have to buy expensive ones they may use credit they're just buying a little rental every year and they're building wealth that's what successful clients do is your cpa telling you that maybe not are we ready to give away another book in three minutes in three minutes okay all right and next buy rentals then it was self-directing so let's say in your trifecta you've got a solo 401k or a roth your roth ira and solo 401k can buy crypto it can buy bitcoin it can buy gold it can invest in real estate it can buy cows it can buy raw land it can buy a meth lab it can buy a rental property that's a meth lab you wouldn't be doing meth you might just rent it to a jesse or and let them make their chemicals but the beauty is you can invest in whatever you want inside your retirement account and that's called self-directing accountants aren't talking about it if you want to learn more about it go to directedira.com and we do a podcast every week teaching you how to take control of your retirement account boom all right and then where's that or does that leave us number 10 what your cpa isn't telling you here's the biggest takeaway guys you're the captain of your ship in your personal life and your personal tax return do you have a side gig do you have a little side hustle is your accountant giving you regular weekly updates do they have a newsletter they have a youtube channel are they doing up posts on their social media if your accountant isn't force feeding you tax strategies you've got the wrong account and if you what your cpa isn't telling you may be the very problem that your cpa is telling you nothing and some people say well mark a tax return is what it is and you're taught that i'm going to pay the least amount for a tax return but the reality is the more time you spend with me or my team members the more money we save you if you pay 400 bucks an hour i want to save you 10 times that i'd never want you to get off a phone call with any of my advisors in a paid consultation where we don't save you one two three four times whatever you paid us you should the person you should want to pay is your accountant because they should be saving you so last example you could hire three different people to remodel your kitchen you're going to get three different jobs three different prices and you get what you pay for and that's the same thing with accountants and tax returns you get what you pay for if you want to be cheap and go down to the strip mall and go grocery shopping and pick up your tax return you're going to get a crappy tax return it's just up to you all right now it's q a time oh giveaway book time who's our winner laura uh laura kowalska laura koalas guy probably butchered that i apologize laura get over to corey email corey mark j kohler dot com c-o-r-e-y at mark j kohler.com tell them your name and your contact information and we will send you a book i will sign it and get it out to you ali make sure i sign all the books okay now it's q a and i'm all yours i've got darren here uh on the chat he is one of our tax lawyers he had an hour to spare he came over he'll be answering in the chat as well darren i'm going to come to you with questions since you know what you're answering and what you're not and i'm going to answer a couple on instagram is that all right rami this was a good one from ronnie h um she said a friend received a 1099 k romney i don't know if it's male or female sorry so rami said a friend received a 1099 k what's a 1099k well a 1099k comes from transactions from merchant accounts and so paypal or venmo stuff like that apple pay and it was from a gofundme oh for his wife that had cancer is that taxable now the first answer is and then he says or rami says and how would you report it thanks stud thank you a little shout out for that i appreciate it um a friend received a 1099 k gofundme wife had cancer is it taxable 1099ks can be taxable but in this situation it was a gofundme to help his wife with cancer there was no business transaction so that was a gift now this year the gift exemption is fifteen thousand dollars so if anybody gave them more than fifteen thousand dollars they would have to file a gift tax return not the recipient but the person that gave the money but in the gofundme typically people are giving 100 bucks 500 bucks 200 bucks whatever 10 so all of that was gifts non-taxable now i would keep good records if the irs comes knocking and says you got a 1099k for 50 grand what the hell happened you're going to say it was a gofundme wife had cancer we're okay so there's nowhere to report it you don't have to report it keep good records a 1099 k for a gofundme would have been a gift in this situation okay darren you got a good question okay so amy amy hung says is the max still the same if there's already after-tax contribution from a w-2 employer she says is the max after tax contribution okay so she said is there an after-tax contribution i could make in my 401k even if my employer made up all the difference okay let's do some math here because and her name's amy yes okay amy now everybody i'm gonna do hard questions and easy questions i'm here for you how much can amy put in her 401k for last year okay let's say that 57 000 okay that's the max now how much of that can be a deferral from her now it could be 19 500 if she's under age 50 or if you're over age 50 you go to your handy dandy calendar and you look at this and go oh this is pretty cool i can put a catch-up provision of 6 500 more if i'm 50 or older so she would be able to put in 26 000 if she was 50 or older okay now what's the difference let's assume amy is put in the 19-5 so fifty seven thousand minus nineteen five okay so that's thirty seven five thousand five hundred now amy says her employer put all of that in for her now i'll say amy that's pretty darn rare i don't know if i've ever seen that that's a huge contribution you must be a vice president at microsoft or something because here's the thing most 401k plans may put in five percent of your salary and to make up 37 grand your salary would have to be around 800 000 i don't know maybe it was a profit plan something like that but if your employer already put in 37.5 and you put in 19.5 for a total of 57 000 you're done you can't put any after-tax contributions in but you can go to home and do a roth ira so you can still do a back door or a front door roth ira plus the 57 000. i'm cool with that but everybody out there this 500 is typically something you're gonna put in after the employer match so let's say the employer puts in seven grand 500 7500 which sounds a little more realistic than the 30 000 you could put in and convert to a roth on day two yep you can do it all day long people like this is how the rich get richer yes this is how they do it okay next question from instagram right where do i start to set up my mobile auto repair business in hawaii an llc mark david foster mark i love it and my heart goes out to all of you in hawaii um some of you think maybe i'm being funny i'm not hawaii was beat up with the airbnb law passed two years ago a lot of people are renting out their homes got shut down by the state extra income was taken off the table for them it's brutal and then covet hit hawaii harder than almost any state in the country tough the unemployment rate is off the chart tourism went through the floor it's been terrible so my heart goes out to mark david and anybody else in hawaii that's watching right now god bless you we just hope everybody gets traveling to hawaii soon which they're going to be happy to do all right spend lots of money when they come so mark david in hawaii is going to set up a mobile auto repair business i love that i've heard of mobile detailing mobile oil changes but mobile auto repair that's pretty cool i haven't heard of that so mark david's going to show up put your car on blocks in your front yard and work on it now you might fit right in arkansas but i don't know in hawaii maybe in waimanalo or somewhere like that you can get away with that okay anyway so he's going to go put someone's car up on blocks and work on it um mark you're going to start with an llc it's operational and then you're going to convert to an s corp when you're making more money we have a paralegal set up for 450 bucks done uh you could also try to go online and do it but remember you got to get all the pieces and parts it's not just filing one piece of paper you got to get the operating agreement minutes a corporate book tax id number because membership certificates get everything involved if you go to legalzoom you're still going to spend around 450 bucks because you're going to check all the boxes you're supposed to so if you need help give us a call if you want an hour with an attorney we charge 800 bucks so you can go to the state you could go to an online service you could go to us just make sure you get all the pieces and parts but i'd start with an llc and when you start to make 30 to 40 000 or more net so you're bringing home three grand a month you're going to convert to an s corp right away all right you got one darin yeah from facebook uh this is from the massachusetts flipper i have an online store it's set up as an s corp i'm starting a junk removal company can i set up an llc and use the s corp to funnel the money through yes so we have massachusetts flipper said they have an online business and they have an s corp now if they're called massachusetts flipper unless they're part dolphin um i have a feeling they're flipping real estate little uh chip and joanna down in waco texas type thing so they're doing probably a couple things in the s corp flipping properties and what was the other business uh jump removal no the one before that oh uh online store online store okay so they have an online store and they're flipping property can you do that in one s corp yes i love it do you know in my life i have one s corp you may be like mark you're a lawyer an accountant you can have as many s corpses you want i only want one so i have my one s corp and she says i'm gonna a male or female sorry massachusetts flipper says they're going to start doing junk removal and they were going to set up an llc for it now you don't have to set up an llc for that you could set up a dba and run the income through your s corp but let's assume massachusetts flipper has a partner so i want their s corp to be the part owner of this llc and you're right all the income should funnel through your s corp where you do one w-2 and 1-k-1 in my life i have one escort mark j kohler inc and literally it's out there see my corporation is a brand and i want you to know where it's at i'm not hiding from anyone it owns a laptop or a phone sue me there's nothing there's nothing in the corp but if you want to know where my real estate is good luck you're not going to find it i've got llc's i've got camouflage i've got all sorts of strategies to protect my real estate over here with privacy and anonymous names and all sorts of good things for massachusetts flipper what i do is whenever i set up a new partnership for ordinary income my s-corp's the owner my s-corp's the owner my s corp's the owner so you can run dbas urls different llc's all of this can flow through one s corp do your salary do your k1 you're good to go okay should we do 60 seconds or less like two or three of those okay my marketing director alison boyce says i have to do 60 seconds gone in 60 seconds oh we're gonna give away a book we have another book winner do you have a male book winner or you're just giving it to all the ladies because you're being chauvinistic okay miguel ocho miguel ochoa miguel ucha sounds so romantic okay sounds like antonio banderas which i've been mistaken for at times when i'm really really tan okay miguel wins a book well your cpa isn't telling you miguel you can get over too corey email mark corey mark j kohler.com give him your info he'll mail you out a book congratulations you're a winner you're a winner in life and a winner of a book all right gone in 60 seconds says i have to answer these questions in 60 seconds are we ready with the timer corey and go go this is from buy no hold guru can i use depreciation from a rental in a state a to off-center rental income from state b and the answer is yes you're going to use two different options first you can be a real estate professional election and you could have two different llc's with a rental in each one in state a or state b you could have one llc register both state a and b and both rentals in the same llc and it's all going to flow down into your 1040. so as these rentals generate income and loss loss and income doesn't matter it all nets on what's called a schedule e so it's going to net on the schedule e that's going to go on to your 1040. five four three two one there you go there's your answer people rental property rocks boom all right um this is a real easy one so i'm i'm okay i'm ready for the six next 60 seconders this is from dr jonathan regular listener nice to see you jonathan um he says can my dad convert his taxable mutual fund into a roth he's retired with social security income and the answer is absolutely yes now we love roth conversions you actually have till the end of the the year to do this now let's talk deadlines you have until april 15th to contribute to your roth for last year but if you want to convert to roth money you need to do that by the end of the year december 31st so let's say dad has a roth and then over here he has a regular account and it just has some mutual funds in it so he's going to turn those to cash by selling the mutual funds if there's any gain he's going to have to pay it then he's going to convert it to roth and move at the money and the over to the roth that's a roth conversion live the dream boom did it okay here's a little question i'm not going to do this on the 60 seconds melody mayor maddie says do you practice as an attorney yes i do i'm a tax attorney i don't go to court and do divorces i don't do bankruptcy i don't fight in civil court like john travolta or matt damon i am a lover not a fighter win win win irs lose i'm in the board room not the courtroom so we have six seven attorneys in our office plus my partner um we help clients around the country set up entities do estate plans contracts agreements maintain your entity asset protection we are a law firm legit give us a call let me help thanks melody okay another 60 second question this is fonzie's chauffeur driven i'm a big happy days fan so that's good okay give me the go corey fonzie says can my s corp open up a brokerage account and invest r in the market invest in the market i think is what he's saying now let's look at our diagram right here if i have my s corp here and i'm doing business and that's what s corps are for so i'm doing business i'm making money i'm spending expenses that are deductible and i'm i've got my net income i'm doing my w-2 i'm doing my k-1 and then fonzi says well i've got some extra money in here i'm just going to go open a brokerage account and start investing you can do that but i don't like that i want a wall of asset protection and i want to take this money that you're netting and not do a brokerage let's take this net income and come over here and invest it where i can asset protect it i don't want it in the same business where you might get sued i want to take this money and put it in a broth put it in a 401k put it in an llc and go invest it but i want to protect it so if you did a consult with one of my tax lawyers we're going to talk about asset protection i want your s corp to just have the bare minimum and then peel out the money and go over here there you go fonzie in 60 seconds or less what to do with your brokerage account okay um let's do one last 60 second question then darren i'm coming your way for youtube and facebook okay this is uh corey give me the green light ready and go okay this is dmx tech he is an rv inspector i have an llc and a nomadic rv and technician do i claim income in every state i work or just my home state very difficult question um dmz is going to dmx is going to have an llc that will ultimately go into an s corp his llc is going to be set up in probably the state where he or she earns their most of their income so let's say it's arkansas um and so our arkansas is ar i keep doing ak which is alaska so llc is um arkansas and he's going to register there and make money there if he goes over into texas and makes income if it's de minimis and small i may not claim it in texas if he goes over to georgia makes a thousand bucks maybe not but once you start making more money in these other states you need to file non-resident state tax returns in those states get a consult be careful all right we're gonna just start doing some regular questions uh before we give away another book i've got israela menta um and victoria chris allen peanut dog let truth prevail queen of cups we'll see what we can get through daryn what do you got okay from facebook mark woods asks as an employee of a business can my wife write off scrubs and office supplies above what's supplied by her employer what's the first name mark mark from do we know from where duluth minnesota he says his wife works for a doctor it sounds like so we have a w-2 from not their own business a w-2 working for someone else and i have bad news he said she writes off she wants to write off scrubs uniforms clothing that's supposed to be used at the business maybe some medical supplies you cannot write that off it's called an unreimbursed employee expense it used to be on a schedule a under the tax cuts and jobs act they increased your standard deduction and got rid of that as an itemized deduction unless joe biden changes the plan this is going to not be a deductible for at least a couple more years we'll keep you posted this year if the tax law changes on that this is for policemen that buy guns firemen that buy supplies and tools uh people that do construction and buy their own steel-toed boots you used to be able to write that off because it was needed for work now you cannot you get the standard deduction which has been increased okay we're going to go over to peanut dog uh how best to use donor advised funds oh my gosh i can't believe i read this okay how to best use a donor advice once for example what time of year for doing roth conversions is it better to sell in equity or just transfer the equity in whole after the initial tax break can we also chunk donations annually to get a tax write-off peanut the dog let me just say you blended two different issues that are complicated for me you've talked about donors donor advised funds which is a charitable contribution unless you're doing something different and then you say for doing roth ira conversions um is it better to sell in equity or just transfer the equity to the roth i think what peanut's trying to do is say i'm going to donate money to charity at the same time i do a roth conversion and i want the donation to help offset my taxable income on my roth conversion peanut dog i i hope that's what you're asking i apologize it's a very complicated question the way you phrased it don't be upset at me i apologize so is that doable yes are you going to get an exact dollar for dollar benefit of doing a donation to offset your roth conversion maybe it's very difficult to make that work for everybody it depends on your itemizing you're using the standard deduction what's your total agi how much you're giving to charity how much is the roth conversion there's a lot of variables can it be done and yes and what time of year would you do it near the end of the year i'm going to have a better idea of what your taxable income looks like how much do you want to convert to roth how much you're going to give to charity and we're going to try to do some mock tax returns and try to offset those that's what i think you're asking i hope that's correct okay the business this is israel amenta the business is the llc and the business has the s election i realize this is a mess i have an llc partnership best way to restructure should i use a c corp hell no okay so israel menta says um here's the trifecta it's not an llc over here we're talking operations and so instead of having an llc that's owned by the two partners s corp which we talked about a little earlier he says i have an llc that has an s election and it's owned by the two partners i talk about this in my book don't like it this is very dysfunctional we don't want this and israel knows that israel a armenta does not want this structure and i get it so he says how or he says how do i fix this is that so the what the best thing to do first of all is do this at the end of the year we're already almost into march so to try to do a reorganization in the middle of the year even the first quarter of the year could be a pain in the butt so typically what i do is you have two options one you can set up the new llc give this s-corp to one of the partners and set up a new llc and then just 1099 the other partner we could talk about that as an option darren and i talk about clients doing this reorg in the middle of the year and kind of doing some 1099s and kind of fiddling with it the best is come near the end of the year in november or december you call us and say okay i'm ready we're going to take the the llc that's an s corp and we're going to give it to one of the partners so now they're the s corp then we're going to set up a new llc that starts 112 and get set up a new s corp for the other partner that's probably the best way to do it at the end of the year if you're going to make a lot of money this year and you've got to get it done talk to darren set up an appointment and say darren we got to make this work now what are my options but it's fairly technical time to give a book away yes and we gotta end and we gotta end okay who is our winner marco sepan is a winner of the what your cpa isn't telling you book i hope you guys enjoyed this uh marco please email corey mark j kohler.com your information he'll hook you up with the book that was a whirlwind everybody thanks for your patience it's uh i'm passionate about this i love it there's a lot your cpa may not be telling you continue to study please sign up for my newsletter the information is down below pick up my videos of the books on occasion i know it'll save you thousands and thousands of dollars set up a consult when you can our attorneys are out probably a week and a half if you want your tax return done with through us we're going to be extending there's a lot going on this year with covid and we're busy and tax day is six weeks away so don't worry about extending if you extend your tax return you actually reduce your chances of an audit what's more important is finding an accountant that understands you so keep living the dream and i'll see you next thursday live on youtube and facebook at four o'clock mountain times make sure you email corey i just cut the word if i don't get an email from you you're not getting your book

Channel: Mark J Kohler

Views: 46,802

Keywords: mark j kohler, mark kohler, tax, wealth building, asset protection, what your cpa isnt, what your cpa isnt telling you, Live streem, live stream, Give away, Book Giveaway, MJK, Mark J Kohler LIVE, GIVEAWAYS, Free, tax free allowance, free tax app, Tax advice, legal advice, easy tax tips

Id: p1YtwI25ybg

Length: 45min 14sec (2714 seconds)

Published: Thu Feb 25 2021