Why Every American NEEDs a Trust | Mark J Kohler LIVE | Q&A

welcome everybody to uh this week's live broadcast with yours truly mark kohler cpa attorney entrepreneur real estate investor crypto miner and ranch owner yep i hit it all so after mr robot and yellowstone if i watch a show i got to do it anyway i'm here today to help you with your american dream saving taxes protecting your wealth making more making it happen and i know as an entrepreneur it can be hard it can be difficult trying to bring multi-task be the head cook and bottle washer the maitre d the janitor the one that opens and closes it can be tough but it's also so exciting to control your own destiny and make some more money do something you love all the above right one in three americans now have a side hustle or a side gig close to 40 percent of them working americans now is the estimate that's a small business pit folks you got a rental property that's a business you got a side hustle you're getting a 10.99 that's a small business so we're going to talk about it here today now if you're on instagram youtube facebook any of those platforms please type your question below i'll do my best to get to it we're not going to be able to get to all the questions but my team here and i want to say thank you to all of them being involved i'm going to do my best to get to your questions so i've got over here on a screen i've got facebook and youtube i got instagram flown oh there's vicky i see vicky vicky r watching on instagram gotta give her some love so yeah oh i love seeing everybody's names here because it's uh oh we got some boo yankees and then some go yankees so uh oh let me just say i lived in new york for a couple years i'm not a bandwagon fan all right i i can throw down some uh pie you know what i'm saying cheese slices on the street of new york oh i love a good new york style pizza on the street anyway i lived in new york i can i can claim it being a yankee fan if you live there right all right okay so uh let's do this now the topic today that we wanted to uh present was why every american should have a trust now last week's article i wrote on the blog was about prince purple rain 80s pop music you may know the song little corvette anyway some of you are too young to enjoy prince um he died about five years ago in his estate is a train wreck the biggest probate mess in the history of the state of minnesota no will no trust now i'm going to give you the myths and the misconceptions of why you may go i don't need a trust i don't have money i don't have this i don't have that slow down i'm just going to give you some parameters now this is not an infomercial to sell everybody a trust today i just want you to at least put it on your radar maybe by the end of the year then of next year you get it done yes every year we have special this time of year in our memorial day special we save 20 for our client we give them 20 on their estate plan they can allocate it to where just cash back or put it on another project at the law firm but it's there and we want clients to be thinking about it but this is not going to be a sales pitch next shout out to entrepreneur appreciate the team over there let me go live on entrepreneur.com love ryan shay and everything he's accomplishing for americans with the number one magazine in the world for entrepreneurs and that's entrepreneur i've got darren cherrington here one of our attorneys in the office he's awesome he is just sitting here typing as fast as he can answering questions for many of you and i've got corey and ashlynn here helping with all the social media in the broadcast all right now corey i'm gonna have to did my thing just die here what's going on did i lose my whiteboard am i literally is our battery that dead okay let me know what i gotta do okay cory's gonna hook me up there all right so here's the deal oh we're good what did i touch what did i screw up you have to turn it on it was on all right okay trust now let me just i'm just going to spend 5-10 minutes on this then i'll talk about whatever you guys want i'm here for you okay the type of trust i'm talking about is a revocable living trust certainly not every american needs an irrevocable trust some complex asset protection trust there's the land trust strategy out there fine those are all other topics i'm talking about a revocable living trust rlt a revocable living trust doesn't give you asset protection it doesn't save you taxes it keeps your crap organized and someday you're going to die i hate to break it to you and you may want to leave a mess for your family but you've worked hard to build assets equity in your home maybe a retirement account maybe you got a little life insurance i don't know but anything you've got you get to decide where it goes you can play them you can say i want it to go to this kid no kid i want to go to a charity i want to go my brother my sister my mom my dad some people go well i'm single no kids not married well that's the biggest question market of all where does it go that was prince he died single unmarried no children everybody's coming out of the woodworks fighting over his assets so the trust is the foundation of your trifecta and i want it to own your home i want it to be the beneficiary of your life insurance any investment accounts gold silver crypto rental property and if you have rental property you're going to put that into an llc and the llc will be owned by your trust if you have an ira like a roth or anything like that it'll be the beneficiary would be the trust and then if you have an llc for your side hustle it'll be owned by your trust and if you have an s corporation many of you will graduate to that either an llc taxed as an s or you just go straight to an inc your s corp will be owned by your trust all of your assets would be owned by your revocable living trust okay that's where it fits now let me give you the whys i even told my team i was like i'm just gonna go for it and just make sure i've got um i hit all my bases here uh get it yankees bases huh you know it's the little things little things in a webinar like this okay all right um the first misconception out there is that you have to be rich to need a trust wrong do you have a little life insurance it's going to go to somebody is going to go into your estate do you have a little equity in your home do you have a little money in an ira i don't care if it's 10 grand 100 grand or a million it's going to go somewhere and a trust helps you define where and how so if you do have some young nieces or nephews or children you're like man i don't want them running around like a trust baby with an extra 50 grand or 500 grand burning a hole in their pocket so when you have a trust you can put all sorts of rules on how that money is distributed so you don't have to be rich if you have any assets at all they go into a bucket and you get to say oh they get money when they turn 20. 25 30 35 they can have money for college they could have money to buy their first home they could have money for a wedding start a business you get to put all these rules in here you could say if they're you know still married to that bozo they don't get anything if they have are on drugs they don't get anything until their life's in order i have two pages of ideas where you can jack up your kids or your nieces and nephews lives you'd love it it's called dead hand control you just bring your hand out of the coffin and just mess with their lives it's great they'll need therapy for years it's good for them if you're going to give them money might as well have it come with some strings right put in a little budget for a therapy too do them good all right now that is a trust and i know i sound like i'm crazy or i'm this is joking but it's kind of not if you die with no plan the courts are going to decide who gets your money whatever's left of your ira whatever's left of your crypto whatever's left of your rental whatever is left to your 401k anything a court is going to give it to any of your beneficiaries when they turn 18 or an ex-husband an ex-wife kids brothers sisters mom dads people are gonna fight for it and it's going to be ugly and it's going to cost lawyers and time with the trust none of that it's your bible you write the verses you decide who gets what when where and how we freaking write it down so it can't get challenged or it's going to cost a lot to challenge it you put it in the drawer you're done you're done i've edited my will and trust because they come together i've edited mine once i should say modified or restated i did a one-page amendment once in the last 20 years you're like mark you're a lawyer you're probably fiddled with it all the time no it's on the shelf if something happens take it off the shelf but we've only made one change it was after a family reunion didn't go so well uh my wife's like they ain't raising my kids cut cut all right so we did a little change that was it i'm not kidding that was the only time we've changed our trust so it's good for generally the rest of your life i recommend clients kind of modify it every five years and you control the words the the rules you can change at any time while you're alive and then when you die boom it's irrevocable now if you're married you can give rules to your surviving spouse if you're married with his hers and our children you may say i carved this out for my first set of children then let's carve this out for each other and this for our new kids together i don't know you get to decide so again you do not have to be wealthy to need a trust so what are the benefits you get to decide the rules for anybody charity kids whoever you decide on the rules you want to do that you decide decide the rules you know what that looks ugly let's do this number one you decide the rules okay number two we avoid probate there's no court no court with the trust next i think you protect your money from lawyers and family that wants to fight about it so you protect money from the vultures the vultures all right oh no vultures how do you spell vultures v-u-l-t-e-r-s u-r-e-e what u-r-e-s vultures that's a word you don't write every day okay and then number four what i like about a trust as well is it can be used during your life if you're in an accident if there's something where you're incapacitated you're in the hospital whatever your backup trustee can run your affairs if you're missing gone sick in a coma who knows what so you're gonna be able to have um a trustee back you up and and that's really big um if you're unable to run your own affairs now i'm going to give you number five and then i'm just going to get into q and a for you guys you want to talk about the trust cool if you don't we'll just hang around okay so number five i like to trust for privacy because with your trust i want you to choose a name that's really anonymous my trust is not mark kohler trust whatever's on title for my home beneficiaries of assets and llcs you're not going to know what it is i want it to hide my assets i want it to hide my address hide my things so you want to hide my things and so you want to have a trust to help with identity theft maybe a stalker everybody should have a good stalker but there's a point you know you're kind of done with it you feel special and then you're like i don't want them around anymore you know you get a tro that's called a temporary restraining order and then you move on corey this my producer this good looking guy how many how many stalkers have you had in your life two or three girls 35 wow now i think you're you know joking around with me yeah fudging some numbers there all right so privacy is a big deal and in today's technology circles of everything being on the web privacy is not a bad idea now in my trifecta and here's my trifecta my operations my assets and my trust i love the trifecta the trifecta i my corp everybody knows the name everybody knows the name my llc is to own my rentals you can't find my assets without a lot of work paying lawyers to file lawsuits and dig it up and as long as you're not a bad person and the government's not after you it's gonna be hard for people to find your assets because my llc's and trusts don't have my name on it but out here marc j kohler inc great get a hold of me buy stuff you know say hello use our services use our company because you want to brand your operations but you don't want to brand um you're holding companies all right first question let's get into it i got it right the youtube yeah okay that's where i was going i got you all right corey says first question he wants answered because maybe corey is going to work on it this weekend corey wants to know can you draft your own trust yes you could uh recommend it yeah maybe not um let's break this down and i think this will help in an estate plan so a state plan there's really two core pieces and then there's a bunch of little documents that go with it the will and the trust now we did a podcast a week ago go over to mainstreetbusiness.mainstreetbusiness.com or just type in main street business on the platform you use for your podcast stitcher itunes whatever it is we did a whole podcast helping you write your own will that's called a holographic will you write your own will and you sign it you have to write it in your handwriting and sign it in about 25 states i was surprised actually half the states they'll recognize it you don't need witnesses you don't need it notarized a holographic will you're good to go and we we list all the states that that's okay in the majority of the other states the other 20 to 25 states you need two witnesses and notarizing it's not a bad idea but two witnesses that see you sign it and you wrote it in your own handwriting you can't print it out you gotta hand write it that's a will you want a will to go with your trust they tie to each other and it says hey here's who i am if i die put everything in my trust and then your trust is this massive book of all these documents that help look at this little trust this is cool so this is my trust and it's going to be oh 30 plus pages that's a lot of stuff now so you can hand write a will in fact on the podcast we literally go from start to finish we write out a will and you can do it but with the trust you're going to download something uh you're going to have to understand all the provisions and tailor it to your needs can you do it yes just be careful now if you shop around out there this month we're 1200 bucks we do a will trust powers of attorney for health care this is all the other pieces you should look for out there power of attorney for finances pull the plug if i'm a vegetable pull the plug if you can't find someone to pull the plug and you're a vegetable usually an ex-husband or an ex-wife they're good for this they'll just come right in boom you know and then you're done you know you're up in heaven you're happy camper i know you've got to keep this light i probably am offending someone but no one wants to talk about death so forgive me as i keep this going here but a pull the plug document actually you don't actually designate someone to pull the plug you tell it and this is a real document you say hey if i'm a vegetable don't keep me live on machines turn it off and you usually ask for two doctors to verify that you are a vegetable and that's called a living will in some states like california it's called a health care directive so living will or health care directive so um we're also going to do a memorandum of personal property like where's the piano the guns the wedding rings go what else is in there darren we got pio hit for health finances living will memo oh funeral and burial instructions i want them to just you know cremate me and drop me off the back of the boat like in titanic she just drops the big emerald you know you know you drop me off the back all right funeral and burial all sorts of good stuff anyway you can do your own trust just be careful all right do i have another question all right am i good am i good okay i'm going let's jump over to uh another youtube and then i'm gonna come to instagram ashlyn how do i find the questions in instagram i just see all the people that are here i know there's comments and questions and then it just disappears okay someone says you're gonna post this on youtube do we post it on youtube yes we keep it on youtube the live go to my play list of live broadcasts right yes okay just go to go to mark j kohler live videos mark j kohler live videos and youtube you can watch them all right also oh if any of you said i'm just going to have the kohler team do my estate plan it's normally 1500 bucks it's 1200 during this month around memorial day that's the last i'm going to say about it if you want to get over to the um website kkoslawyers.com and when you get over to kqslawyers.com you can just hit the estate planning special button fill out the info get it started you'll have an appointment with an attorney done any state in the country now we also have a memorial day special at mark j kohler.com i'm just getting the word from the team here um 30 off just over memorial day weekend on all the videos all my books all the goodies the eight steps workbook everything 30 off use the promo code usa that's the promo um and i'm constantly shooting new videos for three hours before i came went live i've been working on a one hour video on how to handle cryptocurrency taxation i'm already into this thing five hours of drafting it so if that'll be in my taxes legal library next week and once you're into my library i've been running it for 10 years you never pay again lifetime access okay laura on facebook i'm just going to start hitting some questions here laura martin says how does an s corp deduct home office well it's a little tricky home office is a little different in an s corp versus a sole proprietorship now if you watch the movie the accountant with ben affleck and he got the part i mean normally i would have had the part i i was in it ready to go and they said you know what mark ben affleck has a little more experience so i you know but i posed i mean i was legit i was ready to go because i'm a i'm a real accountant so but i thought ben affleck did a great job a little shout out okay now in the movie the accountant in the first scene ben affleck goes through the first scene ben affleck goes through and talks about the home office deduction with that little farm couple so if we do our trifecta everybody if you're a small business owner you got to do home office so let me just tell you how to do it there's three places three places if you have a side hustle you might have a little sole proprietorship drive an uber that's a side hustle you got to have a home office or you might have an llc if you do home office it's going to be on a little schedule on your schedule c on your 1040. you're going to do a little work paper at the end there's a simple and a standard method i've got articles on my website under my blog just type in home office i've got youtube videos on this on youtube just type home office kohler you'll see my videos on how to do it this is option one just it's easy nothing special if you have an llc and you have rental property going to take a home office deduction over here and it's going to be on a schedule e it's going to be on a schedule e so schedule c over here schedule e over here okay now laura says what happens if i have an s corp how do i do home office you're going to take a lease expense a rent expense the s corp is reimbursing you for the use of your home office remember in an s corp you're an employee you're getting a w-2 so if you're a w-2 employee the corp is gonna reimburse you for the use of your home and they're gonna we're gonna put it on your s corp your 1120s as a rent expense or a lease expense now it's tax-free to you as an individual and it's a write-off for your s-corp now some of you accountants out there are going whoa mark if i'm going to rent your home to the s corp then you got to claim rental income only if you're doing a fair market value lease or a fair market value rent we're not we're only going to calculate the reimbursed actual costs for the home office so it's tax free to you and a write-off for the s corp now it might be two or three hundred bucks a month times twelve two three four grand that's it but we're going to do the work paper the worksheet see there's a worksheet when you do home office we're going to do the same worksheet we're going to do the same worksheet figure out what the reimbursement amount is and then we're just going to run it through the s corp i can even do a journal entry at the end of the year so lara get with your accountant i've got articles on how to write off home office on s-corps and videos on youtube check it out everybody should be taking home office all of you even if you have a gosh darn part-time job job driving uber you have a home office you do the books you got a laptop we're taking home office boom okay corey you want me to start at the top on these okay now darren cherrington's out there what our attorney extraordinaire here in the office typing quite answers to questions as fast as he can um all right are you going back to the top or am i just doing lawrence am i doing lawrence okay on youtube lawrence says just need to know exactly how to buy my car at the end of the year and write it off car weighs 602 sorry 6002 pounds okay now i just told you all you need to have a home office write-off whether you're a side hustle whether you're an s corp or whether you're an llc i want all of you to have the home office lawrence everybody everybody out there you should have an auto deduction period if you have a small business in all these situations you would 10.99 rental or a literal business that you're cranking on every day you need an auto deduction now lawrence says well mark how do i buy it to do this now let me say this first lawrence everybody out there if you're going to do the auto deduction you've got two main methods mileage or actual now actual is where you actually you get to actually depreciate the truck the car the suv write off fuel repairs and maintenance now when you do actual you're either going to fall under the car or the six thousand pound and greater met rule so there's see what i mean you're gonna start off with auto then you're gonna decide on mileage or actual and you've got your calendar i don't have my calendar with me darren what is it this year it's 56 and a half can you look it up real quick 2021 auto mileage for business i'm gonna guess it's 56 so it's 56 cents now that's option one but some of you might say i'm gonna do actual with depreciation plus fuel repairs maintenance and all that okay well this is freaking awesome if you have a six thousand pound car or grader and lauren says i got a six thousand and two pound vehicle if you don't know what it is you can google it or look inside the the driver's door and look at gvw gross vehicle weight that'll tell you if it's over six thousand pounds okay now the write-offs for a bigger vehicle are freaking amazing now again cory help me out darren maybe you can do this too my article in january of this year on auto deductions goes through all the rules and i'm going to ask these guys to cut and paste it down into the messages there please go look at it i go through seven ways to write off your vehicle and go through all the rules okay now lawrence didn't ask what the write-off is numerically he asked how do i buy the vehicle to get the write-off that's different now here you're going to love this answer okay you ready this is a technical answer i don't care i don't care how you freaking buy it and the irs doesn't either they don't care all they care about is did you use it for freaking business if you're going to buy a gallon of milk or go to a movie tonight you ain't writing it off for business if you go visit a customer tomorrow you go to office max you go to home depot you go to staples you go take a customer to lunch you take an employee to lunch you go meet your business partner you go check on your rental those are all business purpose miles now we're talking writing off your auto lawrence everybody the irs doesn't care if the business is on title they don't care if the business owns the vehicle they only care how you're using it and guess what i know some of you are going to ask well what happens if i wrap it with my logo and i paint on it you know real estate r us or you know buy my subway sandwiches down here at the deli that doesn't matter if you wrap it with advertising it does not change the fact you went to a movie or went and bought a gallon of milk it's how you use the car that matters so i put it in blue here you can own the vehicle in the llc or not you can own the vehicle in your s corp or not you can own the vehicle in your llc for your rental or not you can own it down here as a person or not it doesn't matter for tax purposes i just want you to track what you do with your car or truck or whatever moped motorcycle rv van you know whatever i don't care it's how you use it oh lawrence do do you mean asset protection now we have a whole other different rule see if you say well mark the irs doesn't care how i own my vehicle i'm going to write it off what happens about a in a lawsuit do you know i had a phone call today with i'm just gonna i'm not even gonna say what part of the country is in i know he listens to the show and is here all the time so i'm gonna give him a shout out rusty you know we talked about this this morning on a phone call rusty's been one of my clients for almost 10 years rusty's like called me up mark how do i own my vehicle for asset protection ooh now it's a whole other rule because if you own your car and you're out there on business does that give you protection no because you own it personally and if you're stupid and texting and driving or drunk driving i'm going to sue your a right well i'm not a litigator so i'm not going to see you i'm a lover not a fighter but some lawyer is going to sue you because you own it personally that was a good one hi ashley i saw you smile see once in a while i get my team to laugh it's really hard work so i'm hoping some of you are laughing because if i get her to laugh i said something right all right but if it's for asset protection guess which entity i want to own your car not the did you smile too corey is that what i'm hearing geez okay llc i do not want your llc that owns your rental to own your car i want your s corp to own it because your s corp doesn't have anything in it sue me i don't want you to sue me but my s corp is a shell my s corp is a shell and as long as you're not drunk driving i got a barrier for asset protection deep right we could talk about auto this whole time all right okay i'm jumping over to facebook michael why can't a carrier be enough for a good retirement i think he needs a career oh career okay michael if you're saying why can't a career be enough for good retirement well michael and everybody out there and i and i don't want to talk down to michael but what happens if covet hits and you lose your job is your employer dumping a ton of money into your 401k is social security and a little 401k enough why not buy a rental property every year do a little investing on your own take a side hustle and build more retirement i just meet a lot of people that are in their 50s and 60s and they're scared to death they don't have enough retirement with a career so think about a side hustle you know i was talking to one of my employees yesterday and i told her do not quit your job but i said why don't you start a little side hustle and do this and i gave her a killer business idea i said you can do it in the evenings and the weekends you enjoy it you're gonna make more money at it and you still keep your day job and she's like oh my gosh i love it i may have her come back on the show and talk about it okay facebook we got lariata lariata swift can one create it if you were already so i think she means trust can you already can you create a trust if you were already a victim basically everything you said and had identify identity theft okay so lariata i like your question larry had is saying mark i already got jacked up with my um an identity theft situation and it's too late i'm not going to set up a trust now well mariata there's there's always tomorrow you're going to get out of this hole you're going to get rid of that crappy person that took advantage of your identity and maybe stole something of yours don't let it happen again right burn me once burn what is that rule burn me once something twice shame on me shame on you i don't know oh oh yeah burn me once shame on you fool me twice shame on me so whatever whatever you're mumbling over okay so lariata don't let it happen again if you do maybe it's shame on you you've got to take precautions so that it never happens again do you know why it's true some of the mo the clients that are the most concerned about asset protection is because they've gotten burned before so lariata don't give up okay kevin on facebook how do you deal with negativity in business uh you fire him kevin just get rid of him look at i've been dealing with cory in his pissy attitude all day and i've about had it i've not had it corey i don't need any more negativity okay that's it i'm gonna throw my rock star at him okay um kevin i will say this all of you out there i like kevin's question okay where could you have negativity first you could have it with your employees if you've got an employee that's bringing down the morale of the others or yourself i'm not kidding maybe you start creating a path to get rid of them um number two maybe the negativity is coming from your family surprise surprise right this is where and this is true being an entrepreneur is not easy on a family um you've got to communicate with your loved ones your partner your kids your parents whoever you live with communicate with them about your passion why you're doing this business the more you talk about it the more it's going to help the negativity you hope right you can't sometimes get rid of family so either you've got to talk through it and sell them on why you're doing this involve a minute maybe all of a sudden when they realize why you're so passionate about your business they'll get on board maybe the negativity will end usually if someone's negative they're trying to send a message find out what that message is try to help process it see if you can resolve the concerns if family is not supporting you and your business and your passion maybe you need to distance yourself from that person it could be a marriage it could be a a relationship that's toxic you don't get rid of them but you distance yourself third you might have a customer that's negative right you got a customer that's a pain in the butt finish the project and get rid of them right don't end a relationship where you're the problem child in the relationship by fulfilling your part of the contract and then saying i'm not going to do this again negativity with a vendor you have a vendor that you hate working with and for some reason it's the only place you can buy your product or your services start shopping around start building a service inside your business to take care of that vendor relationship do some planning to slowly move that vendor out of your circle of contacts so i don't know maybe some of that helped it's true being being in business is hard enough than having people be negative around you right all right i'm gonna go over to instagram here steven says what are your thoughts on buying a rental property outside of the u.s like belize or costa rica hey steven i'm all about it but i think you need to take me down there and check it out um i would never buy anything without having your attorney personally confirm that that belize beach house is a good deal so stephen give me a call let's go and let's check it out all right all joking aside um i don't think there's i don't there's not a problem buying internationally in and of itself the problem is is it a good deal in costa rica or belize now it may sound sexy that you're going to be able to take a tax write-off to go check on your property wherever it may be i've had clients buy properties all over the world and i go that's fine i don't care where it's at per se tell me about the deal is it cash flowing what's the market like well it's going to make a ton of money in the future whoa whoa i want to buy properties that are cash flowing now not hoping they're going to make money 20 years from now now some of you are in a different financial position where you can speculate on property and go buy something in belize and let it sit there for 10 years some of you you have no business buying property and believes you got your personal finances or a train wreck you've got personal debt you've got negativity in your relationships your business is not making as much money as you want i don't know if going out and buying an international property is a good idea at this time so look at the deal first does it make sense number two look at your overall circle of business affairs and your investments is this the right time to go make an investment somewhere where it's going to take money to get there and you're going to maybe have a language barrier you're going to need professionals there now with all that said what have i told my clients for years buy rental properties where you go steven if i'm going to idaho i'm going to go buy rental properties in idaho which i did and then i ultimately moved here it's been a good move if you're going to puerto rico on a regular basis maybe you should buy rentals in puerto rico just take your tax right off to go to puerto rico if you're going there all the time see if there's a good deal there but analyze the property make sure it's somewhere you're regularly going make sure it fits into your overall portfolio you are going to need some legal structures that are particular to that country now we have a tax attorney in our office for international investors people that are investing in the us and clients that are investing outside of the country christy parker she's a salt of the earth woman love christy i'm gonna put her name here christy parker call the office make an appointment with christy if you're buying property offshore get a consult for an hour say christy what should i worry about is this a good time for me is there a good deal what should i worry about no if we haven't bought property for clients in dubai we're going to tell you but we can also walk you through some checklists and some basic things to look at so christy parker is at nine 435-586-9300 six six make sure you get over there and um get an appointment um corey can you see that number that keeps popping up you know who it is would you call them and let them know that um i am in the middle of a broadcast and uh check that out okay um let's see kevin asked another question kevin bless your heart it's one question per show uh wilmer jose toro what's the difference between a business trust and a family trust one is a waste of time one is one everybody needs um so here let me give you a number here and uh here corey take this right here and um let me be honest about that i am not a fan of business trust did we record something for that cory the business trust the are they legit or not is that on youtube you said we got a lot of views on that right yeah yeah so what was the title of that are are business trusts a scam um wilmer i am not a fan everybody out there business trusts matt sorenson and i are not fans of those and we've been around for 20 years freak if they make us if if they worked believe me we'd be selling them i mean to be blunt um we're not a fan of let's break down the differences a little bit um but i really recommend you check out that video on that podcast you've got um business trusts business trusts are sold by people that are trying to either save taxes avoid doing an llc or trying to create some weird asset protection structure typically the people that are selling business trusts are not there the next year to do your tax returns they're expensive and you better have a darn good reason for doing them so i'm gonna say expensive there's usually a pitch involved that sounds sometimes too good to be true right a revocable living trust every time dick and harry has one for a reason they make sense they're affordable they avoid probate they're well recognized across the country they're well supported they have a specific purpose that makes sense there's a lot of promises with business trust that are kind of off base and sometimes wacky i know i'm pissing people off and some of you are like mark i got a business trust their next best thing have you never heard of the delaware business trust yes do i sell them no could i sure but i'm not a believer sorry i've written books about this stuff so sorry okay i'm gonna go over to instagram let me see if there's another question here um sold by a says you skipped over my instagram questions should i submit again yes if i skipped over him it's because i didn't see him let me see if i can go back and find it um okay um do you see it ashlynn i can't all right i'm still if you see that i don't ask your answer your question it's because yeah it went by too quick you got it all right okay i'm gonna jump over to youtube peter if you depreciate a vehicle completely should you sell or gift the vehicle to minimize tax is to minimize the taxes all right everybody if you depreciate your car truck and you go the actual method remember over here we went through our our uh tax strategy of where's our auto there it is okay mileage or actual if you depreciate the heck out of your car what do you do you you're going gonna sell it you're gonna give it to yourself you're gonna be taxed on the difference between the fair market value and zero because you depreciated it down to zero so that's called depreciation recapture um peter there's no way around it there's no way around it now some of you may go well mark if you've got to do depreciation recapture why do you write off the truck bonus depreciate the heck out of it why do you depreciate the whole thing if i've got to do depreciation recapture when i get rid of it because it's an interest-free loan from the irs everybody think about this take a breath this is deep you ready if i buy a truck for 20 grand and i write the whole thing off with depreciation and sit on it for three years and then it's worth eight grand three years from now and i get rid of it i've gotta pay the tax on eight grand because i sold it i gifted it well you're like mark why didn't i just do mileage rather than do that because you got a tax write-off of 20 grand on day one would you rather have a tax deduction for 20 grand today or spread it out over five years take it all the day save taxes today pay less tax today even if you've got to give back some of those taxes later it's an interest-free loan from the irs i know it may sound crazy but if you run the financial model every time you win because you're getting use of the money now even though you may give it back later all right uh marisa on youtube says how do you prove the irs that you're using the vehicle for business marissa great question it's called a mileage log now there's apps out there that you can just download and you're just like oh traveling for business oh going here going to lunch with so-and-so now marissa i'm not that anal either i don't have a little yellow pad in my truck and every time i drive around i go oh i went to lunch with darren so i'm going to write that off or oh i traveled here for business you sh you kind of should you should be able to recreate one if you're a realtor let's use an example here if you're a realtor everywhere you're going you're working on real estate you're meeting customers clients you're checking on property i almost use the inverse i'd say i went to the lake this weekend or i used it for personal to go to the movies or grocery store so usually what i do is kind of take 20 percent and call it personal because i know 80 of its business and if you had to produce a log marissa you could do it rarely does the irs audit on this now that doesn't mean you get aggressive and you cheat but sit down and do a log for a week and go yeah man i'm 90 business all right keep that log and you could duplicate that if you needed to um in 20 years of practice i have never now i know someone out there is going to go well i had to do it but i'm just saying in 20 years doing thousands of tax returns with my team we maybe had one or two times had to produce a log the client was able to go and reproduce a log that was legitimate to show that they had business mileage the irs is not into chasing down pennies they want to go after someone that's being overly aggressive so marissa do the best you can all right do i have the question and corey i need some new ones and okay resubmit your question if we miss it i couldn't find yours um i team is that kind of what it was eileen maybe it was in the stories and you have to kind of add it we're doing the best we can okay i'm going to do a couple more questions and then we'll go from there rand theon on facebook says how to buy a new home with personal and llc first time home buying this fall okay now everybody if you're buying your own personal home you're gonna close in your name okay you're gonna close in your name and it's your personal residence and then i'm going to deed it over to your trust easy i'm going to create privacy is the bank going to care no are you going to have a due on sale clause no close on the loan tell the bank whatever the freak they want to hear deed it to your trust it's your own personal residence okay now ran is probably talking about a rental what do you do you go out you make an offer in your own name you deal with the bank and you close you get the loan based on no lie you don't tell them oh it's really my home no don't lie if it's not owner occupy don't call it owner occupy but go to the bank and get your loan then on day two you deed it to your llc then on the lease agreement the llc is the landlord you pay the mortgage with the llc you collect rent with the llc the llc is the owner of the rental do not worry about a due on sale clause don't go in and ask the bank for permission because they'll freak out the bank can't do anything without getting permission from three people up the chain just deed it to your llc and let the llc collect the rent and pay the mortgage they've already sold your mortgage five times over you know that so let the llc own it as long as you did not change the underlying ownership you still own it 100 you technically haven't violated the terms of the mortgage you never sold it to someone else you never deeded it to someone else you just deeded it to an llc of which you own 100 again in 20 plus years i've had one client that had to deal with a due on sale clause i swear it's because they went and asked the bank permission and then they had to deed it back to their own name as soon as they sold the mortgage they deeded it back to their llc seriously don't worry about it so ran if you're going to go out and buy a rental i've got articles on how to buy your first rental property i've got get your llc in place set up the llc in the state where the rental is if your rental is in arizona then you set up an arizona llc don't set it up in freaking nevada or delaware or florida or texas you set up the llc where your rental is we charge 800 bucks you can meet with one of my attorneys they'll set up the llc for you answer all your questions build a diagram you're off to the races um ooh tiffany young says which book can i buy of yours mark that explains the home office well do i have a tax and legal playbook here oh i do okay all right you know what i'm gonna do this for those of you that stuck around i'm gonna give away three books right now i didn't plan on it but i'm gonna do it i'm gonna give one away to our instagram followers i'm gonna give one away to my facebook followers and one to our youtube followers so corey i want you to choose a winner on youtube and facebook ashlynn you're going to choose a winner on instagram and i'm going to announce those winners right now this is the book to get on all of those little small business tax write-offs tax and legal playbook second edition um you can get it on a discount this weekend by using the promo code usa go to markjaykohler.commarkjaykohler.com and you can get my books or videos all sorts of things 30 off for memorial day weekend use promo code usa but we have some winners i need a winner corey who's my winner on youtube or facebook talk to me we're just gonna give it to tiffany tiffany young oh my gosh we are gonna give it to tiffany young the winner of a book you have to give corey your email so he can reach out to you so tiffany you're gonna email corey at mark j kohler.com corey mark j kohler.com and you're going to say i'm tiffany young i won the book he'll verify you and you're going to say any winners email corey now some of you are going to go hey corey i'm a winner give me a book please don't waste his time email cory and go i won i'm tiffany young okay who's my winner on uh facebook i just gave you facebook oh that was facebook who's on youtube uh youtube let's go with jose guzman jose guzman or guzman i have a trucking company with a c corp should i change it to an s corp probably jose that's a great darn good question i have a whole section in here on the s corp go to my youtube video s corp versus c corp i'll answer your question there call my office we can switch you over it'll save you thousands nine times out of ten but jose you are the winner of my tax and legal playbook email corey mark jaycoler.com man my phone is blowing up it's driving me crazy okay who's my winner on instagram dallas stevens i know dallas stevens i can't believe you chose his name is that dallas stevens from cedar city utah we were in scouting together 15 years ago and taking kids up on the mountains camping and hiking i can't believe it dallas if you're watching good memories love you man he's in manufacturing been a project manager and manager out there in the good old does he respond yet okay dallas stevens is that him dallas i love you man you're awesome thanks for watching bud dallas stevens good friend we lived on the same street even that's a name from the past love it i love you guys i love my job i love the american dream it's hard i know it sucks sometimes but i'll be here every thursday trying to answer some questions please get out there get on my website get some of my books and videos i'm constantly shooting new content long videos explaining every little detail it's in my tax and legal library i got to make a living but i'm here trying to give away as much free content as i can answering questions but um get over to markjaykohler.com lots of specials this weekend and if you don't have your trust if you don't have your estate plan get over to kkos lawyers you get a whole hour with one of my attorneys any state in the country get it done it's only good for a couple more weeks anything else tell them where they can get your books oh my books marching colder dot com mark j kohler.com 30 off this weekend promo code usa and for you three winners dallas jose and tiffany you email corey at mark j kohler.com apparently he's had over 30 stalkers i don't believe him but if you want to stop corey start with his email that's a good place to go okay all right why would i say that corey yeah okay everybody see you next week on thursday rockstar live on there you go my sponsorship is complete

Channel: Mark J Kohler

Views: 224,691

Rating: 4.9400606 out of 5

Keywords: Will and Trust, Trust, Will, Money, Mark J Kohler, Kohlercare, When you die, Asset Protection, Auto Deductions, mark j kohler, mark kohler, wealth building, Why Every American NEEDs a Trust, Mark J Kohler LIVE, Every American, Every American NEEDs a Trust

Id: m43BcHJwSt0

Length: 58min 57sec (3537 seconds)

Published: Thu May 27 2021

Reddit Comments

[u/Coin_Shaver]

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