Nevertheless, this year my wife and I had decided we ought to try IT again—that conversation with our CPA. The hope was that a planning meeting would actually help us save on some taxes. Maybe it would even benefit our retirement plans and we would accomplish “wealth building,” as some have termed it. (Location 171)
Having a small business or real estate investment of some sort has to be a major consideration if we want to save on taxes. This is the Secret that corporate America completely disregards and marginalizes! (Location 374)
It was interesting to discover that many professionals in medicine, construction, and sales, just to name a few, consistently struggle trying to balance running their business and being skilled in their profession. My brother made me commit to keeping him posted on any further developments with this new CPA. (Location 425)
Those that want to drop in your W-2 and itemized deductions on your tax return and avoid a real planning meeting vs. those that truly want to find a way to save on taxes, enjoy some creativity, and don’t have a problem helping their client create a small-business operation. (Location 571)
However, I want my clients to buy rental property with leverage for cash flow, equity building, and the forced commitment to saving it creates for us. (Location 1291)
As I watched the video, I started to have the eerie feeling I was getting a chance to affect my kids in a powerful way. I also got the feeling that I only had one shot at it and had better not screw it up. (Location 1344)
“First, remember that this is not a sham. We can’t put our kid, grandkids, or any family member on the payroll unless they are actually performing bona fide services. “Second, if your children are over 18, or for other family members, you have to withhold payroll taxes and treat them like any other employee.” This payroll procedure can be a pain, he admitted, and told us we should utilize a service to take those headaches and responsibilities over for us. (Location 1406)
Who wants to match Social Security and Medicare? However, the CPA indicated it was all about running the numbers. Putting them on payroll may be worth it if the family member is in a lower tax bracket or no tax bracket at all. (Location 1410)
In the same breath the CPA also cautioned us, “Don’t pay your kids under age 18 out of your S-Corp or you lose out on the benefit of avoiding payroll taxes on your payments.” (Location 1416)
You may need to set up a family management company as a Sole Proprietorship to hire the children as a service company. (Location 1424)
“However, we can self-insure ourselves for all of the smaller health care items, get tax write-offs for all of it, and never again be subject to the whims of an employer or the government.” (Location 1557)
“About 97 percent of Americans try to write off their health-care expenses as an itemized deduction and phase out. They can’t write off their medical expenses!” (Location 1596)
Our CPA was ecstatic with this news and assured us that Dad had not done anything illegal. In fact, he said, “Your husband was implementing a strategy I have been teaching my clients since I opened my practice ten years ago, but he was on to it much sooner than that. When did he learn about self-directing his retirement plan?” (Location 1808)
With his typical candor and simple explanation, the CPA said, “The strategy is called self-directing your retirement account. Most financial magazines, papers, and talking heads on the major networks completely downplay or discourage it.” (Location 1822)
Essentially, when you self-direct, you transfer your funds (tax free) to a self-directed custodian and by doing so fire your current stockbroker. You’re now free to invest your account as you see fit so long as you follow some prohibited transaction rules to make sure you don’t run afoul of the IRS or Department of Labor. (Location 1826)
Are Liars—The Truth About Protecting Your (Location 2265)