[00:00:00] Speaker A: You're listening to the Preferred Way, a retirement podcast brought to you by Preferred Trust Company, the preferred custodian for all alternative investments.
[00:00:09] Speaker B: Welcome back to the Preferred Way.
Well, unfortunately it's tax season, so guess what? We have to talk about last minute tax strategies, all the things that we need to prepare for before we get to 1231, 2025, and we kiss it goodbye. So today I have Larry joining me today yet again. We keep bringing him back.
He's brought the Big Mac this time, people.
So, Larry, welcome so much.
Thank you for joining us. Hey, it's your analogy. I'm just feeling it for a minute. You're laughing about it. I mean, come on, wait till they hear about the Big Mac. See how that all comes to fruition. But in all actuality, here we are again talking about taxes. We're nearing the end of the year and I really, really curious. You know, when clients come to you, it's usually last minute. You know damn well it is. And they're freaking out about all. They realize at this point, oh my gosh, I'm going to owe hundreds of thousands of dollars in taxes potentially. What can I do at the end of the game to make sure that I'm reducing the, my taxes as much as I possibly can before the end of the year? Is there some sort of pep talk, presentation analogy? What do you do to prepare your clients for that end of year?
[00:01:40] Speaker C: Hey, Carrie, I appreciate you having me back.
So, yeah, it's an ongoing thing and really answer your questions. All the above. So there's a pep talk. There's, there's some consoling. There's. Yeah, like where you've been all this time. Like all my clients have, have our email, they have my number. So it's like, okay, like this isn't a surprise at this point. So, so try not to make people feel bad. But it's like we're just not going to go out and buy, buy G wagons and stuff like that. So, because I tell people, like when it comes to like, hey, I'm trying to save on taxes, there's really five things to really try and keep in mind, like understanding that the tax code is made for investors and business owners. So there's a lot of our clients, so they're already in a strong position from that standpoint.
But whatever tax strategy that, like I said, I'm presenting to them, I want them to understand it's, it's not just the money is going to cost. It potentially could cost time as well. So just understanding that, like hey, this is going to have a personal impact to you, not just from your pocket, but also just how you like just life in general. So we're kind of leading. Number three, don't let the tax tail wag the dog.
[00:02:53] Speaker B: Yeah.
[00:02:54] Speaker C: Because yes, you saved all these taxes by doing this, but then life sucks. And then so it's like, well, was it really worth it at that point? So you really have to understand that and, and which is wise, like, to be reaching out to your tax advisor, like, all year round as frequently as. As he or she allows at that point. Want.
[00:03:14] Speaker B: Yeah.
[00:03:14] Speaker C: A lot of my clients to reach out as much as they, as much as they want. And not just having meetings, just to meet, but like, it's actually like, let's talk about something that's coming up. Like, not something just passed. It could be too late.
And then if you don't have the right, a tax advisor to kind of help you through this, just understand that just because they're a CPA or they are enrolled agent or, or they may call themselves a tax advisor, they may not be equipped to do what you need for your type of business. Because this is all, sometimes it's all niche. It depends on the strategy that they're going with. And they may not know everything. I don't know everything, but I don't sit here and try to pretend. But you try to find the right advisor for you so that, like, hey, they're, they're, they're asking the right questions for you. Then they're also are applying the right strategies that fit into your life and your business and your investment. So that's it. That's all. I'll try to make sure I kind of COVID those five things on the ongoing base with my clients so that they're kind of like, more prepared and not having to go through this, this hassle every December.
[00:04:12] Speaker B: Yeah.
[00:04:14] Speaker B: Let's say I am maybe a newer client to you. Let's say I'm not taking it all the way to the end.
[00:04:21] Speaker B: What kind of presentation would you give to me to say, here are the things we need to make sure we're preparing for. Here are the timelines in which we should prepare for. Here's some, you know, quick strategies that you could use to prepare throughout the year so that we're not at this mad dash scramble right at the end. Now, I know most of them are scrambling at the end, but I'm sure you've probably laid some groundwork for those, you know, those folks that tend to scramble at the end to say let's not let this happen next year.
[00:04:52] Speaker C: Yeah.
[00:04:52] Speaker B: What would something like that look like? What would you present to them?
[00:04:56] Speaker C: I mean, it's not the sexiest thing to bring up, but just getting your books in order, like having your financials in order go a long way of just kind of knowing like where we are. Like if, okay, if an estimated tax payment is needed from a quarterly perspective, or if you got enough payroll that's being ran and then we can. Or, or you may just have a lot of expenses you wasn't aware of and it may not be any need to be spending any much money because a lot of people still think that taxes are based on your gross income. Like no. Based on net in this country. So like just make sure you keep that in mind. But you don't know that unless you have to have your financials in order and you'll know how much money you have to spend on it because you don't want to just be taking on debt just for a tax strategy. So, so it's. Is that after this the, the boring things in life that no one really talks about, just bookkeeping. Does your bookkeeper have to be your CPA? No, you just need like whether you're just using QuickBooks or whatever, waves or wherever, software that's out there, that's, that can manually do it. It's just putting, putting a process and get together of how to keep up with that on an ongoing basis. So you know what your bottom line is.
[00:06:09] Speaker B: Yeah, constantly knowing what your bottom line is, not just the last month of the year people.
And if you're utilizing software, obviously you could probably pull reporting out of that, but it, it probably goes beyond reporting. Like you have to have, you know, supporting documentation, not just numbers plugged into a system. Am I correct?
[00:06:31] Speaker C: Yeah. So you have to remember that the burden of proof.
I get the question a lot of like how the IRS knows. Like they don't have to know. Like if they, if they happen to pull your card and send you a notice and they doing the field audit. Like the burden of proof is on you that hey, you have to dispense on your, on your books. Where is the supporting documentation, whether it's a receipt, whether it's an invoice, or if you're claiming real estate professional status, like where's your time log, how you tracking that and the details associated with that. You have to provide that to them if they're ads for stuff like that. So it's leveraging technology where it's like you're not keeping Flimsy documents around, take a picture of it, scan it in, save it in a draft somewhere, and you're just basically set. Like we have a sharefile portal that clients can upload all their documents to. Do we look at every document? No, we don't really need to because it's based on reasonableness, but it gives them another platform to save their stuff so that the IRS has any questions, they already know where it is, not having to look for it.
[00:07:41] Speaker B: It's interesting you say the reasonableness.
That is what you're looking at, right? So you're looking at numbers.
Are you considering whether the client has backup or doesn't have backup as a tax preparer? Or is that burden of proof solely on the individual and not the CPA as well? Talk me through how that process works, because I know there are some instances where you can like buy insurance for, for the tax preparer, those sorts of things. How does all of that, how does all that work? I've always wondered.
[00:08:16] Speaker C: Yeah, so it's, there's always a CYA type of, type of approach with it.
So it's like, hey, well, we're looking at the top five expenses or whatever at that point. Okay, like, do we got support. Enough support for these? Or the client just kind of just have a whole bunch of meals? Like, hey, you know, do you have like, at some point, do you got receipts for all these and not just your credit card? Like, do you have all that in place? Because we have to monitor all that. Because like, yes, because we are in question. Because if, if it becomes a trend, what people don't realize with, with tax preparers is like, hey, they may target one particular client, but then depending on the, if it means that we are negligent with our, with our due diligence of reviewing the tax return, they can then start to kind of look at other clients in similar situations. So it's pertinent on the tax preparer, the CPA or whoever at that point, who's, who's like, say, who's putting attachment together to have some, some, some comfort that the client has support in place enough to, to, to support it if it is audited.
[00:09:24] Speaker B: Yeah. Have you ever had clients just say, oh, just trust me, Larry, just, I have all that. You know, it's not a problem. I, you know, if they need it, I'll get it, but I'm only going to upload the stuff that, that you need in order to prepare my taxes. Is that a red flag for you or are CPAs able to, to. To Process tax returns based on that limited information.
[00:09:47] Speaker C: Well, we have clients say that, but it's like, well, we still need to give the financials. We're kind is going based off the financials at that point.
And like I said, we can't force them to upload stuff to the portal. I guess we could if I wanted to, but it' if you say you have it and part of the, of our engagement letter is that you are responsible providing documentation at this point and there, there may be certain items where we'll still ask for it. Like, okay, they didn't upload it. They couldn't find it. But like, hey, like, no, like I really want to feel more comfortable. You just whatever you got $250,000 in supplies. Okay. Like, I need, I need, I need something. Prove that to me.
[00:10:30] Speaker C: Before we, before we move forward there so and so. I mean sometimes it's like I won't say a red flag, a yellow flag, because it just could be they just don't feel like uploading all those documents, which I understand.
[00:10:41] Speaker B: And that's okay. Yeah, that's okay.
[00:10:44] Speaker C: But do you at least have it? Like, do you feel comfortable if the proverbial hits the fan, we, we're good to go. Because you don't want to be having to dig for that stuff later.
[00:10:56] Speaker C: Because if you, if you take too long and it looks suspicious, it's best to kind of have it in a good, like in a couple of days of receiving a notice or receiving the IRS notice of certain documentation that they're looking for.
[00:11:08] Speaker B: Yeah, absolutely. Totally makes sense. All right. Really what I'm hearing is preparation, preparation, preparation, preparation.
[00:11:17] Speaker B: And you know, really just staying on top of it. Whether it's weekly, monthly, you know, find a cadence of time frame that works for you and stick with it.
Because chances are the more you stick that out, the more you'll be able to actually create some sort of tax savings. Potentially.
When you're trying, when you wait till the very end, these procrastination right when you wait to the very end, you forget about all the things that happened, you know, 10 months ago, nine months ago, eight months ago, it becomes kind of a just like poof, it's gone. But really some of those things could be huge tax saving advantages.
So preparation, documentation, details. Sounds like those are the three things that you need in order to really move through the process of preparing taxes. Am I understanding that correctly? Like, get your shit together, people.
[00:12:12] Speaker C: Yeah, Yeah, I thought 13. So I wasn't sure about cussing, but here we go.
[00:12:19] Speaker B: It's okay, like, we're down for that here. We're real people. I mean, get it together is basically, you know, and when you do have it together, then, you know, employing a professional to help you file your taxes is where you're really seeing the true benefit. Because if you're not prepared, I mean, what. You're not a miracle worker, Larry. Right. You can have the documentation to illustrate, improve and justify some of these tax savings measures that you could potentially deploy.
[00:12:51] Speaker C: Right. So more and more importantly, people realize, like, that goes into your business financing. If, like, if you're trying to get financing for your business and if you're trying to build a business that you want to exit and sell.
So having that stuff in order makes those things a lot easier to process through where, like, you just kind of create more time, you create some skepticism of your business if you only provide that to a potential lender or a potential buyer.
[00:13:17] Speaker B: Services and processes, what are they? How does this, how does this business operate?
Because without those manuals in place, your, your business is virtually worth nothing.
The intellectual property, right. They're not buying you, they're buying a business. In some cases, they're buying you too. But in most cases, the goal is to buy a functioning operating business with policies and procedures in place.
Fair enough.
[00:13:40] Speaker C: Yep.
[00:13:40] Speaker B: Okay. All right. Talk to me about some of these tax saving measures that we should all be looking into towards the end of the year and really throughout the year. But I think the vast majority of us are looking at, at the end of the year as we're kind of, you know, looking down a barrel of a gun going, oh, crap, we owe $100,000.
[00:14:02] Speaker B: What are these tax saving measures? What should we be looking for? Is there three, five? Is there like a cardinal rule that you have out there? Are there very specific criteria that, you know, you kind of go over with each of your clients?
[00:14:15] Speaker C: I would take the approach of, of slashing of taxes. The term slashing is key because I break it down the sense of machetes and steak knives.
Most likely you're going to have three to five machetes to take some huge slashes to your taxes, and then you're going to have basically 20 plus state knives. And. But you're, you're, you're compiling them up to have a cumulative overall effect of reducing your tax liability.
Like one being is like, do you have the proper entity structure in place depending on the type of business, especially if you're running an active business making ordinary income? All right, if you're, if you're netting over $50,000 a year. Are you S Corp. Why haven't you switched to an S Corp yet?
And that's, that's key there because you're not just hit with your income taxes, you're also hit with.
[00:15:09] Speaker C: FICA taxes as well, your self employment taxes. So the aspect of that additional 15.3% not just hitting, hitting your bottom line could be huge because that's how people go from being taxed on 40% of their income to being taxed over 50% of the income with just that there. So just is it the time to rush? Get that 2553 form filed so you can get the S Corp election in place, get a last minute payroll ran if possible so that hey you now, you're now able to save thousands of dollars on just FICA taxes.
[00:15:47] Speaker C: For just doing that. I said but depending on the state you are, you may have.
[00:15:52] Speaker C: Corporation fees associated by running a S Corp or corporation in your state.
Are you going to run your own payroll or someone else going to run your payroll if you're paying for another tax return? So it's just knowing the different fees and costs and that's why I mentioned $50,000 net earlier because roughly at that point that's where the tax savings can out can start outweigh the, the, the cost associated with it. But also so like it's just being mindful that especially if you're a W2 employee as well and running a sad business where it may not make sense because your employer priority took up a quite a bit of your, the Social Security portion of the FICA taxes. So it's just taking a holistic view of everything in place. Okay, am I really saving by making this election or I'm just creating more hassle just to break even or end up upside down because I'm paying more in compliance costs than actual taxes.
[00:16:48] Speaker B: Okay, entity structure number one. Is there cost savings machete options available to you? Is that fair? That's not a steak knife, right?
[00:16:57] Speaker C: That's a machete.
That's a machete.
[00:17:00] Speaker C: Tens of thousand dollars we're talking about in the machete range at that point.
[00:17:05] Speaker B: And to be clear, you can change the election of your business.
[00:17:11] Speaker B: Right down to the last minute of the year.
[00:17:15] Speaker C: So typically, so this is 2025. The due date of making the election from LLC to S Corp or C Corp to s Corp is March 15th of the same year 2025.
However they, they do allow some, some, some grace period within the, within the calendar year. You just have to make sure you already have the LLC set up already. Like if you're. Because if you're just now trying to open up the LLC and then try to escort election in December. You, you, you wasn't.
[00:17:48] Speaker B: Yeah.
[00:17:49] Speaker C: You cannot claim that you've been operating as LLC all year. So you only get the tax benefit for just the month of December now over the whole year. So it's good to know like hey, do you already have the LLC set up for asset protection purposes? Cause LLC did not help you save on taxes. It's just one step to potentially, if you're running a business making ordinary income.
[00:18:10] Speaker B: Okay, perfect. All right, slash number one. Machete number one. What's machete number two?
[00:18:15] Speaker C: Machete number two.
We're back with 100% bonus depreciation. So I know everyone's been clicking heels since July 4th of this year and now it's kind of taking a step back. Like hey, if you did acquire a rental property, whether long term or short term, then that does depend on real estate, professional status and all that. But do you now have the opportunity to get a cost segregation study done for that property?
Get that depreciation accelerated more into to 2025 and offset your other income with those losses.
So you have, you have that as a benefit, a huge benefit as well because we're seeing people 20, 30, 40% of their purchase price going towards.
[00:19:03] Speaker C: 5 and 7 year property, 15 year property that qualify for bonus. That creates huge, huge deductions at that point as well. This is where you get into the section 179 with your vehicles or any type of, or also any equipment that you bins. Equipment as well. So like even if you're buying with debt, you're able to claim more of a larger deduction or more or claim the whole purchase price of the deduction even though you May only spent 5 or 10% down payment on whatever business asset. So bonus appreciation being back at 100%, huge, huge opportunities for people who are, who did buy equipment or property during the year or may have some few dollars to be to spend on equipment these last 30 days. Like I said, if you're a position to buy rental property in December, like good, good for you.
It's just whether or not you can get it rented out at that point.
[00:20:00] Speaker B: Yeah. Yep. Okay. Cost segregation.
[00:20:04] Speaker B: My takeaway, does it work? Unless you have a renter.
[00:20:10] Speaker C: You have, you have to be placed in service. So like hey, is it. Do you have proof that is on the market ready to go.
[00:20:19] Speaker C: But you may not have gotten anybody in that only is going to work for your your long term and your midterm rentals.
And which is why that's important because if you're not able to claim real estate professional status or, or in other terms you spend more than half your work time in a real property trade or business, you're not able to use those losses anyway. But if you do, or if you marry and your spouse does.
[00:20:44] Speaker C: Or you have other passive income to offset whether you've been like in the fund or syndication that's paying out or just cashed out per se and send out capital gains now you can use that to help offset your other passive, your other passive income now.
But it doesn't work for short term rentals because you have to prove that the average stay is seven days or less.
The IRS automatically assume is a rental property is going to be passive and long term. So only you can prove is that you have at least two stays. So it doesn't work, it doesn't work with the short term but long term you can, but you want to make sure you have the right, the right income to offset or you or your spouse can qualify as a real estate professional.
[00:21:29] Speaker B: Perfect. All right, that's machete number two. You have another machete or are we down to the steak knives? We're still macheting.
[00:21:37] Speaker C: I mean well, I'm not say family involved but you feel like your medical deductions can really play a, play a huge role.
But they have state knives and machetes.
[00:21:50] Speaker C: Associated with it there where it's like hey, you have health insurance premium payments and we kind of potential fear that going up next year significantly. So that can be a huge benefit as a above deduction line item as well health reimbursement arrangements that you may have with your business as well to get that document and set up so that basically like so you're basically paying yourself back for, for any medical cost that your, that your business is paying for there. And then so you got your, your high deductible HSAs whether you have it through your employer or you can get one set up. I know, I mean there may be some people still will open up open enroll period at the time of December. You may still be able to get into, get into one of those. But yeah, so those are your kind of your options there. We talking about kind of medical expenses as well as like you're running like a larger business.
Yeah group term life insurance stuff like that where it's like hey, like you're especially aspect of like kind of keep employees and, and all that so you can keep High, high quality talent as well. If you're offering.
[00:23:04] Speaker C: To your team and.
[00:23:06] Speaker B: You are seeing that there are more and more employers out there that are starting to come back to offering more benefits than they were previously. And I think a lot of that is just because of the turn that we're kind of seeing a little bit on the remote employee where the benefit was you didn't have to come to work, you know, and you could work from home. And the reality was is they started cutting on the health care benefits and the benefits they were providing remote employees.
And now that you're, when you bring them back to the office, it's, it's ironic where now all of a sudden the employee's like, well wait, I need health insurance again. It's like, you're right, because now you're, you know, you're working with other human beings, you're sicker frequently, you know, you're needing to use your health care. And so it's kind of pushing up to, you know, employers having to go back to offering some of the, or paying for some of the costs of the health care.
And so it is kind of interesting. It's definitely increasing the cost to, to businesses to retain and obtain the quality employees that you're talking about. So I can see how that could be. That could be a machete for sure. Yeah.
[00:24:14] Speaker C: Yeah, for sure.
[00:24:15] Speaker B: Especially we all know that those costs aren't cheap.
[00:24:19] Speaker C: Not at all.
[00:24:21] Speaker B: Yeah.
[00:24:22] Speaker C: Then I said a final machete. People you could look into is retirement accounts.
Now I know your IRAs at the 7008 if you're over 50, those are your kind of like your steak knife. But really the big piece is like, hey, if you are like solo 401k, if you're just a solopreneur or you're running a business by yourself, that aspect of being able to get up to $69,000 and, and deductions is a huge play.
And the aspect of you're making $23,000 of it as an employee, these you haven't made any contributions, you got 30 days to do. So also being able to reassess what the tax term may look like and then make your employer contribution in 2026.
So that's what the other $69,000 can come from there to kind of add into, add into that bucket. So solo 401ks is a rather, rather huge, huge benefit if you obviously don't have any other full time employees. If you have part time you could, but if you do, then you're looking to more of a SEP simplified.
[00:25:31] Speaker C: Employee pension plan.
So you have that as an option, but still the aspect of getting like 25 of whatever W2 ways that you're paying yourself, you can, or 20 if you're, if you're self employed. Once again, another huge benefit of there.
[00:25:52] Speaker B: It kind of layers it though, right? I mean, it kind of layers it because one thing I think that is kind of a myth and maybe you can demystify this a little bit.
Let's say you are a W2 employee and you are contributing the max to your 401k plan. But let's say you're also a business owner and you're kind of playing, you know, double duty here and there's a lot of us out there that are.
[00:26:17] Speaker B: Are you able to contribute to your 401k plan, your SEP IRA and make a contribution to your Roth IRA?
[00:26:27] Speaker C: Yes. So the difference is that the employee portion, so that's the key there was like, hey, it doesn't matter how many different jobs or other businesses you're running, you can only be an employee once and everyone's capped at the 23,000 at that point. So Dan's like, hey, well you may. And we deal with a lot of High W2 employees, quarter million up. So like they already kind of maxed out that part, but they're running this other business. Okay, well now we're only talking about the employer contribution to it as well. And depending upon the net income of the business or the W2 that they're paying themselves, we're now just also trying to figure in. Okay, well, let's just do some backdoor Roth conversions. Since we already kind of maxed out what we can from a deduction standpoint, we might just go ahead and start putting stuff that, that not that non deductible traditional and then rolling that into your, into your Roth.
[00:27:34] Speaker B: Yeah, absolutely. So lots of strategies. I mean really it's. Again, it kind of goes back to knowing your, knowing your client and kind of figuring out all the, the avenues that they're charting down in order to figure out where, where the machetes and the, the steak knives are to, to come out.
[00:27:51] Speaker C: Okay, yeah, the end goal is to move everything in the Roth at some particular point, whether it's 401ks or IRAs or even HSAs.
But okay, where can I get the deduction now and then in a year where I may not have as much income or I may have more losses? That'll be, you start, convert some of those funds over the Roth and start having that Future planning as well, currently.
[00:28:18] Speaker B: All right.
You got another one for me?
[00:28:20] Speaker C: Yeah. And then define benefit plans of another one. That's kind of a lot of people don't know about because it's. The contributions vary so much because it depends on your age, your income, the type of benefit target. So there's not really like a set amount. But like I said, we've seen people been able to put six figures into a db, a DB plan, and, and get a deduction from the standpoint there. So like I said, if you're really running a high successful business because they are costly to set up, whereas like that, there's a huge option to kind of put, put money towards the future with a plan like that.
[00:28:59] Speaker B: Absolutely, absolutely. Totally makes sense.
All right.
Got anything else? You got like a butter knife in there for us or something?
[00:29:09] Speaker C: I mean, you're, I mean your, your butter knives, your steak knives, I mean, you're really talking about like, obviously people getting to like, hey, do I prepaid for 20, 26 expenses now, once again, it all starts with what the financials say. Like, do you have the cash flow to come in and start prepaying stuff now?
Kind of. So, like it could be helpful. And okay, when you don't have deductions next year, but then you kind of hold a new cycle of paying for these new expenses at the end of the year, you have people that's deferring income until the next year, where they may defer a sale of an asset until the next year, so they can't any more additional income.
[00:29:50] Speaker B: Timing is everything.
[00:29:51] Speaker C: Right, Right.
[00:29:51] Speaker B: Plan accordingly.
[00:29:53] Speaker C: Yeah, and getting the family involved. So the aspect of.
[00:30:00] Speaker C: Family members on, on your board per se, and having that document. So like, hey, Christmas is coming up, we're gonna have a board meeting. And not saying you're serving Christmas dinner, your board meeting, but it's all about how it's documented. Like, do you have the minutes in place and are you documenting all that? And is everyone kind of signed off to what. What's going on here and have they been a board member all year from that standpoint there? So that's the opportunity there to kind of get family members involved.
We talked about your like, spouses being potential real estate professional if the main spouses is working and running a business. Okay, cool. There's opportunity to leverage the depreciation that we talked earlier. But do you have spouse involved if you have kids? All right, put, put those little buggers to work now. Like, what have they been doing all this time? And have they started getting Them more involved the business where it's like instead of paying them an allowance, you're paying them for, for services. And then if they're below the, the feral stand deduction and whatever state you're in, standard deduction, then you're not having to withhold FICA taxes. I mean you don't have to pay them a W2 or W2. You're not 1099 them, but. And then they're not required to file taxes at this point. So it becomes an income shift from you to a lower income bracket for your kids where you, you were paying the money anyway. You buy anyway let them buy their own stuff.
[00:31:25] Speaker B: And that can add up. You got a Brady bunch going on. I mean, you know that, that can significantly add up. Now the thresholds are usually much smaller obviously.
[00:31:35] Speaker C: Right.
[00:31:36] Speaker B: But I mean you got three, four, five, six kids at $1,500 a pop. It does add up. It definitely adds up to what, what we're talking about here.
[00:31:48] Speaker C: Yeah, to like what type of work can they do. And it's like, man, depends. Age appropriate. And then if you was paying somebody off the street. So, so yeah, like if. Because that's where it comes more of a family discussion where it's like, yeah, you got a one year old daughter, she's not climbing on the roof, nailing down shingles. Like maybe I'm not everyone's household.
[00:32:10] Speaker C: I got no judgment on stuff like that.
[00:32:13] Speaker C: Most likely, most likely it's supposed to be more marketing. But you, you have, you have couples that like, I don't want to just put my, my child out there for marketing reasons. There's no wrong answers. Like that's a, that's, that's an appropriate answer for that family. And so, so just understanding that like you just, you lose stuff, lose out on that type of stuff. But it's for a greater good, not just for a tax deduction.
[00:32:38] Speaker B: Absolutely, absolutely. All right, Makes sense. All right. Is there anything else? Any other last minute? Like machetes, steak knives, butter knives?
[00:32:50] Speaker C: Well, we were in the, we're in the, we're in the, in the, in the holiday season. So, so now like everyone having a little house events, now they know they're turning house events to business events. So now you're talking about the Augusta rule where you can rent your, rent your home to your business for up to 14 days and along the rents are at market rate, the business get a deduction and you personally don't have to pay, you don't have to report that income because you didn't because you below. Below 14 days.
So people are just kind of like having a random events.
I mean we do, we do it once per month and then double it up on, on November and December. But like that's the strategy that we implement from there and we know what the, what the rates are per event spaces nearby. And we got documented from there like what was, what was going on in that event. So it's just like it's something like that is still, still useful.
Especially talking about like four figures per per use.
[00:33:52] Speaker C: If it's the thousand, that's 14,000 is a huge deduction for a lot.
And then after all of that, after all of that, okay, consideration we bought every single thing that we can buy.
Then we can talk about estimated tax payments. Like is it, is it worth now to make an estimated tax payment if it's going to prevent a penalty per se.
And then I said part of that is assessing. Okay, what was your tax liability last year and then what you supposed to be paying this year based off the ups and flows with the business. So just taking all that into account but like the very, very last thing we want to do is, is pay the government.
[00:34:30] Speaker B: Absolutely. No, I, I totally hear you there.
All right.
Well, I think we covered a lot in this segment of last minute tax savings. And the one thing I'm hearing from you, Larry, is every situation is different and unless they have an opportunity to sit down and really talk to you about it, I can't imagine some of the things that, you know that people can do given their specific situation and suggestions that you may have to add even more tax savings to their specific situation. We're just talking machetes and steak knives here. But there could be more.
[00:35:10] Speaker C: Yeah, it personalized to each and every. There's no cookie cutter to any of this.
It's a starting point. Social media doesn't help with that at times.
[00:35:20] Speaker B: Yeah.
[00:35:20] Speaker C: But it's just taking this clay that social media put out there and then how do we mold it to what to this actual person needs.
[00:35:28] Speaker B: All right, Larry, thank you so much for the machetes and steak knives of tax savings. We'll see you next time on the Preferred Way where we're going to start talking about you gosh darn procrastinators out there making our lives harder. But until next time, Larry, we will see you on the Preferred Way. Thank you so much for joining us.
[00:35:47] Speaker C: Thank you.
[00:35:49] Speaker A: Thanks for joining us for another episode where retirement savers meet alternative investments. Can't wait for the next episode. To learn more, visit our
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