Posted by Philip on September 10, 2003 at 22:05:45:
No, Doc, these are excellent suggestions. I hadn’t ever thought that way. I certainly hadn’t thought about sending my documentation away to be done…that could save way more than it cost!
Philip
Do taxes get better? - Posted by Philip
Posted by Philip on September 10, 2003 at 16:39:42:
Do taxes lower as a total percentage of “costs” as the years roll by?
I sure hope so.
If I have a working person’s income will I be taxed at 30%?
I would think with deductions and all it would be a little less this first year…you know…the “unrealized income” from the mobiles seeming to shoot me up a bracket.
I have talked to a CPA once and am getting ready to schedule a second appt. to really get serious about what he needs from my piling…I mean, filing system.
Philip
Re: Do taxes get better? - Posted by Steve-WA
Posted by Steve-WA on September 10, 2003 at 17:35:32:
Philip, I recommend that you invest a few hundred into John Hyre’s course and Quickbooks. Although I know you said it in jest, your “piling” system will make you want to stab yourself in the eye when you DO finally put it all in order. Generally, accountants will be able to work with QB files.
And plan on the taxes. When you make a profit, put 20% of everything away. I didn’t, and now I am having to squat out cash for LAST years bill.
Fact is, you make money, you pay the bill. Now if your profit can be converted to deductions, you are ahead. Rich Dad Poor Dad talks about the difference in buying stuff with before-tax dollars versus after-tax dollars. Charlie France talks about how they try to figure out how to deduct EVERY dime they spend. I haven’t run across a book or course yet on creative deductions, but I haven’t really looked for one. One thing for sure; it would be a good one. There are dozens of articles out there that give tips on what you could be or should be deducting as business expense - I dunno, try H&R Block’s website, or google “business tax deductions” for a free start.
Re: Do taxes get better? - Posted by Philip
Posted by Philip on September 10, 2003 at 19:37:15:
Ok. Quickbooks unless my accountant tells me he can’t for some odd reason, and John Hyre’s course. Does his course tell you things other than the cash method and the cash value of notes vs. face value? Are accountants prone to listen to anything at all? I dont’ know mine very well, just spoke 1 time.
I will get organized. I know I can’t stay the way I am. I am not usually this busy. I know I am forgetting some deductions.
As far as putting back profit I do that, which may be the only thing I have done right.
Thanks a bunch,
Philip
Re: Do taxes get better? - Posted by Dave
Posted by Dave on September 10, 2003 at 17:52:41:
not promoting john reed any, but he has a pretty good tax book. Dave
I’m no expert but I’ve survived some… - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 10, 2003 at 21:53:34:
… pretty taxing situations.
I’ll make 5 suggestiions that others probably won’t.
- Do things backwards. Most people save up all of their reciepts and go to their tax preparer quarterly or annually and say “do my taxes for me”. Its pretty late for them to save you much money after the fact. What I think you should do is go to your tax person at the BEGINING of each quarter or year and say, “show me how to plan my projected income to minimize the tax bite, for the coming year”. Its more profitable than closing the barn door after the horse has already excaped (with your hay).
2.Design your own bookkeeping system to include taxes as a business expense. This way you are always looking at after tax profits when you are using your books as a management tool. After tax profits are what you are after anyway, not pre-tax profits. I have no idea why the world does its bookkeeping the way it does. That benefits noone more than the IRS.
This suggestion, and the one above it, will help you keep your eyes focused on the AMT for instance. It also should help you in your quest for less earned income and more capital gains. It should lead you to constantly look for ways to transmute income from the former to the later. There are lots and lots of ways to do that with proper planning. It will help keep your eye on Roth IRAs and section 121 applications for tax free income from the sale of your personal residence etc.
-
Search hard and wide for a REAL tax expert, one who is already rich himself.
I had a great one once, in San Diego. He is a REAL expert, and is now also a REAL billionaire (Charles Considine). Needless to say he doesn’t need to do my taxes anymore. There is a guy that hangs around with Jack Miller from time to time who is pretty sharp (John Groom). You might try to find him and see if he still does taxes. Even if he doesn’t do tax returns I bet he teaches a lot or real advanced tax saving ideas. As a general rule I think it is fair to say that if your tax advisor doesn’t practically insist that you plan your tax year in advance, he leaves something to be desired. I think great tax consultants are like good advertising. They don’t cost anything really because they make or save you more than their cost. DON’T hire just any schmoe to do your taxes. -
My 4th tip is most important of all. Become your own tax expert. Probably NOTHING you do in life will put more dollars in you pocket per hour than the time you spend learning to become a tax expert. This is right up there in importance with developing negotiation skills. If you want to be the best tax person try to learn from the best teachers you can find nationwide.
You don’t have to become an expert overnight. Learn a little each year. Go to the tax speakers’ seminars who are connected to the real estate seminars. -
Remember that Federal taxes are the same ANYWHERE IN THE NATION. With modern day connunications there is no reason why your tax person can’t live 3,000 miles away. With telephone, e-mail and Fed Ex to deliver documents why in the world would you even consider some local hole-in-the-wall tax preparer who drives a beatup fliver, when for less money (after their after tax savings) you can hire the best experts in the nation?
Philip I don’t suppose that I have answered the question that you asked but I hope I have answered some questions that you might have wanted answered but didn’t think to ask.
Time to climb down off my soapbox and say good night all.
Regards, doc
Re: Very, very astute advise/ NT - Posted by Greg Meade
Posted by Greg Meade on September 11, 2003 at 06:37:27:
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to add to what Doc said… - Posted by Joe C. (AR)
Posted by Joe C. (AR) on September 11, 2003 at 24:52:24:
One of the best things I ever did was to take an H&R Block tax preparer’s course. They used to give them in the fall to train some tax preparers for the spring rush. I think I paid $45.00 total , for a one night a week for six weeks course. Some of it is pretty basic stuff but it teaches you to look at everything as a tax preparer would. I never did work for them, but I’ve done my own since then with TurboTax. Between the two, I feel I save hundreds if not thousands of $ each year.
Joe C. (AR)