Don’t Risk It All by Being Too Clever with Your Taxes
Audio Transcription
In this segment of the Thrivetime Show business coach Clay Clark will be going over why you should not get too clever with your accountant and taxes because it will ultimately lead you down a path you do not want to be on.
Audio Link: https://www.dropbox.com/s/pmlg7vk0afuou2g/Podcast%20-%20Part%204%20-%202.6.18.mp3?dl=0
- Don’t Try To Be Too Clever With Your Money by Expatriating Your Taxes.
- Your Accountant Should Make Intelligent Tax Decisions.
- Big Big Takeaways from today’s show and podcast download:
- Hire a pro-active accountant and meet with that person quarterly
NOTABLE QUOTABLE – “Whoever spares the rod hates their children, but the one who loves their children is careful to discipline them.” Proverbs 13-24
- Hire a pro-active accountant and meet with that person quarterly
t was how do I save taxes as a business owner if you’re just now tuning in or maybe you missed, the earlier podcasts or segments I want to recap the rules step, one higher, a proactive accountant and bookkeeper step to schedule a regular recurring meeting with the accountant, bookkeeper I recommend hood cps.Com. He is a friend many of our clients use him they’re all happy. There’s one who’s, not happyso of all the clients. I know that use them. Yep, there’s one! That’s not happy! Why they’re not happy how many of them are happy? Why am I talk to paul hood works with thousands of clients, and he is a proactive account. We make every brookline happy, no but again hire a proactive account to schedule a regular reoccurring meeting with the accountant. So that way you actually stay proactive. You might consider your account to mine to suggest maybe deferring income if you’re making a lot of money right now. He might recommend that you pay yourself more next year less this year. I’m not saying paul would recommend that I’m saying some people do in towards the end of the year. If you’re facing a big tax bill, I see people kick the can down the road so to speak and not get paid until january when they could get paid in december I would not advise that move, and that’s one thing that people do the next, that you could start a retirement plan. I would recommend big bang. I would recommend bing, bang I would recommend bang bang that you would start a retirement plan. Who is he talking toyou everyone, everyone we all would save at least three to 5% of our gross income that way you’ll have a bad day and not a bad life. If you save money, you set aside a money, you’ll not be thrown off and get a super emotional. Whean bad things happen. The next thing I recommend that you would actually talk to your account at your proactive account and your paul hood cpa accountant I’d, recommend that you would talk to him about. Maybe looking at converting your existing business from an llc from llc a limited liability corporation into an s corp I’m, not saying that you should I’m just saying that you would want to talk to your accountant to see whether they would advise you giving your specific unique needs to hire your kids i. Can’t think of any reason at all why you wouldn’t hire your kids and one thing about having my kids work in the office and during our business conferences is I am able to to demand a certain work ethic and I can tell you what my kids are they perfect? No, but you know what I would rather be the one who yells at them and tell them that the bathrooms weren’t clean properly, then their first boss, so I can be intense with them and I can set the standard at a young age, and the irs gives you certain benefits for hiring your kids to do office tasks around your office as long as you don’t pay them more than a certain amount. I believe that numbers like $6,500, but you have to talk to paul hood cpa-is about that. The final two moves we recommend, if you would use, is don’t try to minimize your taxes that you will pay by being super clever don’t. Try to minimize the tax that you will pay by trying to be super clever, because when you get audited by the irs, it is like hell fire raining down upon your life.
They can freeze your account, so they can take money out of your account but clay. What I’m going to do it so they can garnish wages and income. So what I’m doing here’s the thing cuz I’m putting in a box I’m not attacking telling you I’m, not attacking everyone out there who has decide who has decided to renounce their citizenship and to get a citizenship in latvia I’m. Only attacking one person in particular I’m, an expat i, want you to understand this I talk to somebody about eight nine years ago shop and he says: hey man, the system that you’ve been teaching me to grow my business. They have been going great I mean seriously. My growth has been huge this year, it’s been huge and I said. I am excited. This is triciaso I’m excited about your girl. This is exciting. He says here’s the deal I want you to know, and this guy this guy’s at 2728 he’s bringing $100,000 and check to see what he says he says. I want you to know. I found the attack strategy that very few people are aware of its massive and I said:can you can you go ahead to tell he says what I have done is I have denounce my citizenship, so I’m, no longer us, citizen and i, said okay, so you’re you’re getting protection from the us military, the benefit of the roads, the benefit of our infrastructure you’re, not a citizen. He was exactly and I said: okay tried to like not be horrible person to ask for advice. He just bragging to me about what he did and he says I have actually become a citizen of latvia and I said you mean a real that know. Yet that’s what you mean the country, that’s by the baltic sea, that’s located between lithuania and estonia, the landscape, that’s marked by beaches as well as swelling forests. You mean you, my friend i know this. Thank you, my friend i, just don’t like people who are wanted to avoid all taxation. Typically, they they expatriate their money to costa, rica or tilapia, and so I’m saying so. Learn more about our business conferences on our conference page.
You now are one of latvia’s 1957000 people know how many city of latvia I’m be able to see. You should practice what I said. I said to you now or a citizen of a lot, because yeah and so I didn’t have to pay any taxes. This year, cuz I have the lowest tax rate. Now, there’s another guy in our life who told me recently and this guy was on roids, and he told me that he’s putting all this money in costa, rica and soap all sat down with the costa rica guy. He didn’t sit down a lot in the past and when somebody has been taking all of their money and shipping it to costa rica for the last, 5 years to defer any taxes. What kind of advice do you think thatgive somebody that point when he says so you mean you haven’t paid taxes for a decade and all of your money has been expatriate to costa rica. You clever, clever man, stop doing that and then take the next steps in the next bit of advice would be from paul, potentially bring it back. I, don’t know, i, don’t know what paul, who told the guy, but if I was your account, this is what I would say so you’re telling me you’ve taken all your money to a latvia and costa rica. You prefer to not pay any taxes out you’re, not even a citizen or country, more you’re, screwed I mean i, don’t know if I do need to leave here’s the deal. Lowe’s has a discount right now on a high powered nail gun and you might want to get one of those, because screwing takes too long on screwing I screw through your skull, the death. It would take too long for the death to occur with being screwed to the head. Put a nail guns quicker because my friend you’re going to get nailed by the yours. Don’t don’t be that guy that whole job you’ve met people. Are you met people like this to try to play that move? Yes, and so you know, there are some tick tips and tricks that guys, like paul, can do that they know. Are legal and the normal people don’t know about bryant, but don’t live your life in that gray area? Yes, gray area is a dangerous own risk reward right, like yeah, there’s a reward that you see right now, but that crap is risky and when the irs, when the full weight of them comes down to, like you were saying earlier to audit your entire business right guess what doesn’t happen? Want more info about the business conferences that everyone is talking about? Call us!
What doesn’t have your normal everyday business does stop. So now you have all these responsibilities that you have to do to comply with the irs on top of running your business and managing employees and making sure your clients are happy. So it is just a mountain of extra work that you do not need. It is not worth it if you do not want to ruin your life, do not piss off your wife and definitely do not denounce your citizenship and move to latvia or costa rica. An expatriate your money just just hire a proactive account to help you minimize your taxes, but pay your fair share, and how do you find that proactive accounting to go to hood cpas. Com know if you want to learn how to start and grow your business to make more money or they might take for ever going to make more buy your tickets to are february and february 16th and 17th thrivetime show business conferences I can go thrive. Time should I come and buy your tickets to our business conferences february 6th and 17th workshop there only 11 tickets left broadcasting for the center of the universe and the thrive15. Com world headquarters of time show all right. Walk back to the conversation is about time show on your desk of the year sit here to help you get into a great position financially, and one of the questions that we had emailed from a thriving many survivors was how to save taxes as a business owner summer recap:the rules quickly, the michigan over on previous editions of the podcast, as well as the radio show, and you can click on the podcast, and you can hear them. I suggest hood cpa, full disclosure. He is a sponsor of the show. He is also a friend he’s, also been a client and many of our clients work with paul hood, you don’t like them. Other cpas I’d recommend would be such as hood cpa, step, 2, step 3 talk to your account and potentially, if it’s the last month of the year, about deferring income, thus putting you just making sure that your new income isn’t taxed at the highest rate. I. Don’t recommend doing that. Only list that, because many accountants will tell you to do that, I’d recommend you can pay when you get paid and you pay taxes would be happy to do it because the irs will come and get you stuff to her and all my february income to march. That’s a nice I can move to 5% of your gross income automatically. You will retire a millionaire if you do this, put three to 5% all gross income into a into a savings plan of some kind of mutual fund life insurance plan. I, don’t care if it’s a money market account just set aside some money because you’re going to need money. Can you have a bad bad things going to happen in emergencies going to happen? If you want to have a bad day and not a bad life, the next move, cedar converting from an llc to an s corp. Consider that’s consider switching from an llc to an s corp should do that on your own know why? Why should i? Do it because you could potentially, given certain circumstances, benefit and pay less taxes as a result of doing so? But you need to meet with a certified public accountant to make that kind of decision.
The next move higher your kids. Why does every business owner has tasks that need to be done? That aren’t super difficult. It would make more sense to be more efficient to have somebody who’s, lower-skilled and lower paid doing that work. Also, your kids get to learn work ethic from you as their parent. Also, the irs gives you tax advantages to doing so. The next move:don’t try to minimize and minimize your taxes or to be too clever by expatriate in your money to latvia or costa rica. Don’t try to be two step. 7 is don’t try to be too clever with your money. What expatriating your taxes? That’s! What I want to make sure we’re communicating. Do not try to be too clever with your money by expatriating your taxes, I say that because I see so many people do that I see so many entrepreneurs do it. So do not do that in the final move. I recommend for all the listeners is make sure that your accountant, you have an accountant, it’s good to help. You make intelligent tax decisions such as they can help. You determine whether you have carry over losses. They can help. You determine whether you have operating losses home office deductions that maybe you’re missing. They can help. You look for charitable contributions that you’re already making that you might not be riding off. They can help you look at the vehicles you purchased to see. If they can be written off, they can help you figure out whether you qualify for any of the current tax deductions that you’re missing out on that’s what you want to have an accountant, because they can help you figure out. All of the deductions that you might be missing out can I get a huge thing. Is that a lot of people you don’t understand? Maybe some of the deductions you’re missing out on it, so you might be missing out on right now, four or five obvious deductions that accounted could help. You help me determine that you wouldn’t know because you’re not in the account so jump in my adequately communicated, you think I’m communicating with a passion the importance of having a professional accountant help you look over your personal finances. The main take away is that if you do not heed this advice, if you do not take this morning, you’re going to end up having a bad string of days right like your this will happen.
The irs has one job right. There goal is to round up people that are not paying their taxes and figure out how to legally make them pay their taxes and, like we talked about in the last segment, that is not a fun situation to be in when the tollway to the irs is saying we’re coming after you cuz, we think you’ve been messing around being screwy with your taxes. That’s a big deal:haskell mc, hammer, o d dmx stops for the celebrity steve currington that have found themselves in tax, a hot water and into it. We having some back problems. Dmx the rapper july 13th 2017 was arrested on federal tax rate charges of july 17th. Okay. They said that he owed 1.7 million in taxes and engage in a multi-year scheme to cancel millions of dollars. Can I from the internal revenue service can I quote dmx real quick, hear the song x going to get him. I took irs going to get him chris tucker chris tucker got hit with a tax lien in 14 wells. We got pam, anderson old, baywatch babe. What about the isley, brothers, christie brinkley, apparently over proactive conservative tax, planner stephen baldwin anthony, come on what’s up? What’s your last name:christina ricci, o’sheridan, ozzy, osbourne, 7 billion, will kim I’m going to give a bonus tip out there to the drivers, because I’m passionate about these two things and we did talk about hiring your children as a potential tax move. So chapped I’m going to give my I’m going to recap with my the big to move to take away when everyone to get from these for podcasts and from the show today, what higher a proactive account hire a proactive account and it will help you and meet with that person, quarterly chiropractic accountant and meet with that person quickly. Okay, that’s what you do! That’s that’s a bit and then just don’t get too clever with your tax strategies just have an account with them:quarterly pay. What you owe and here’s my second take away:i want to give to the tribe nation. This is my second take away number to passion, whoever spares the rod hates their children, but the one who loves her children is careful to discipline. This is from proverbs proverbs 13:24. What does that have to do with this work as a father? If I don’t discipline, my kids they’re going to grow up to be idiots, so as a father I have to discipline, my kids do I want to know, do I like grounding them know, do I like spanking them know your likes. Calling them know do I like yelling at them know. Do I like to know do I like those talks. No, but you have to do it until I see these parents out there to see if I go to the walmart at 71st and lewis. That’s where I see this or if you go to that walmart and you see parents having an interactive debate with a 14 year old, a seven-year-old a five-year-old about whether they are going to come in the store or not or whether they should put on their shoes or what are they to do this or that you can’t get to a point where your kids are now teenagers are there in and out of control, because you did a poor job to discipline them as young kids.
I haven’t the same thing with your business. Your accountant needs to make sure that you have financial rigor, reagor and discipline, because if you do not have discipline in your businesses and in your finances, you are going to have massive problems because you start gaining mass of wealth and then you start to start have massive, a compound attacks that you owe interest on the taxes tonight at taxes from the previous year and now you’re in a really bad spot. Steve, if you haven’t, felt really bad like teresa and giuseppe verdi switch, they were from the real housewives of new jersey indicted on 39 counts of federal fraud in 13, and they both got jail time. It’s going to be tricky with one months, and it’s like he’s literally in jail like three and a half years and not paying some money in taxes right b, I c e a joke. You’re listening to the show here, cuz he’s going to give you a tip here:joe i, don’t want you do is when you go, take a shower and that public shower don’t drop that self. What do drop the soap? Don’t pick it up when you want to rip off part of your mattress, one of the springs and you’re going to want to make a device called to ship. These are just tipped in it. Are they, as you need to quickly befriend one half of the prison need to find what group you go with and if they give you a makeshift ant to it, go ahead and accept it. It’s right on your face! Cuz! You don’t want to get into a fight in the cafeteria. If you meet a guy with it with like four or five teardrop tattoos, you should meet him and be your friend. So here’s the deal if you’re in prison, don’t drop the soap in prison by paying your taxes. What was the show with the boom, sign up for our business conferences now.
