A little while ago, I posted an interview with my personal CPA and friend Warren Taryle for gold members of my Land for Pennies program to listen to. Now that tax day is here, it's a good time to evaluate how we are doing and whether or not we are taking advantage of all of the tools we have available to us.
In a summary of the interview that I sent out later, I wrote down my takeaway:
Warren started by making it clear that not all accountants think the same and that not all of them understand the strategies that can be used when investing in real estate. He also mentioned that all tax firms can help you out with tax preparation, but not all can help you to develop a tax strategy.
Warren talked about several points (which he calls “Wealth Factors”) that should be taken into account when forming any tax strategy:
- Using the proper legal entities
- Taking advantage of deductions
- Tax-advantaged investing.
I was also interested when Warren said that while the principles of making and managing money haven’t changed much over the past one hundred years, the specific methods used to do so have. So if something hasn’t been working for us recently,
instead of doing the same thing even more, why not sit back and examine the specific methods we are using to see if there is a better way?
Now is the time to see if we should set up a self-directed IRA, a trust, or an LLC to protect ourselves. Now is the time to develop a strategy that will help us pay what we owe, but not a penny more than we have to.
So use that pain you felt as you signed that check to the IRS and let it motivate you to make changes for 2015.
To your success…
Visit the website www.jackscpa.com, where you can get a free report from Warren about the tax aspects of flipping real estate.