Epic Real Estate Investing - The New Tax Deadline Even Trump Himself Didn't Tell You About | 339

Episode Date: January 30, 2018

Tim Berry takes Tax Hacker Tuesday to the next level. Learn about the new tax deadline even Trump himself didn’t tell you about. Then access the five loopholes in Trump’s tax plan and get a free coaching call with Tim Berry to get a better grip on the ideal tax strategy for your business. ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? • E.ducation • P.roperties • I.ncome • C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Did you know that up to 50% of your lifetime income will be wiped out by taxes? What if you could stop this madness? Isn't it about time you play on a level playing field with the wealthiest 1%? Now you can. Tim Berry, attorney at law, shares here each and every week current tactics and strategies that anyone can implement to hack the tax code. Protect your assets and keep what's rightfully yours.

It's time. for Tax Hacker Tuesday. All right, welcome. It's another episode of Tax Hacker Tuesday right here at the end of January, the 2018 year as well underway. We just got back from the Epic Intensive. Oh, hello, Tim. Hey, Matt. How are you doing, sir?

Good. I just turned on record and started going. And wait a minute, there's somebody else here with me. Super. So it's great seeing you at the intensive. And I don't know how you do it, dude. I don't know how you take three to four hours of tax planning asset protection conversation and keep the room so captivated.

I'm not sure if I do keep them captivated. I think it's just you brought all that coffee around to everybody right beforehand. No, I mean, I would love to think it was my doing with the coffee idea. But after the fact, people, I want to ask people my routine questions, what did you like best? What was your favorite part? And so many people said Tim Berry was their favorite. it. And they had to go to the bathroom and they didn't want to get up and leave. So now you know.

Matt, that was my mother. Oh, that was your mother. That's my boy on stage. He's so sweet, isn't he? Yeah, go, Tim, go. Right. Cool. So we talked, we gave away, last time we were here, we gave away the free book that you wrote, small, short little book, the five tax loopholes to Trump's new tax plan, that the media is. isn't telling you about. There's something else that nobody's talking about, particularly the media or media or really anybody else. And I didn't realize this myself when you and I were chatting over the weekend.

I said, you know what? We need to get on it and share this information. And that's about an important deadline that's coming up in March. That if you miss this, it could cost you, right? Oh, yeah, big time. I mean, and here's the thing. under the new Trump tax code, things have got really confusing. A lot of people are saying, oh, gosh, you want to be a partnership now, so you get this 20%

reduction. And then other people are saying, oh, no, no, no, no, no, you should be an S corporation, so you get the 20% reduction and you get some other savings. And then there's another group of people who are saying, oh, no, no, no, no, you should be a C corporation because of the 21% tax bracket. And what no one is saying, and especially the media, what they're not telling us, is there's a deadline coming up. you've got by March 15th of this year to decide what is the best for you.

Is it that partnership taxation? Is it sole proprietorship? Is it S corporation or is it C corporation? So there's a deadline that's going to affect a lot of people and it's going to cost them a lot of money if they don't make that right decision. Right. So can you give me some ideas? I mean, as to what is really at risk by choosing the wrong thing. If you choose the wrong thing, do you got to write it out for the year?

Can you backtrack it all? Or is it just in stone for 2018 indefinitely? Or is that something you can change every year? How does that work? You know, Matt, the answer to that question is kind of like the answers to most tax stuff is, gosh, it just kind of depends. An example, if you don't make the election to be taxed as a corporation, you've got to write that out for the rest of the year. But if you make the election to be taxed as an S corporation, there's all sorts of neat ways that you can blow up the S-corporation and just be taxed as a C corporation. So for the most part, you're kind of stuck with it because even if you blow up the S election, that may not be the right thing to do too.

So let's just try to keep it simple, Matt, and say if you don't make the right election, you're stuck with it and you've got to write it out for the rest of the year and you've got to overpay your taxes. Got it. That's good enough for me. So I imagine my next question, and I like to keep everything simple, but in the world of real estate, the world of taxes and legal stuff, there's rarely a one-size-fits-all simple answer to anything. But I'm going to give it a shot anyway, just for the sake of the audience. Sure. What category should people be in to choose which entity, or is that just a big fat? It depends, too. You know, it depends, but if we were to do broad categories, broad categories would be if you're doing buy-in holds, you probably want to be inside of a partnership slash LLC type of

structure. If you're doing a lot of lending, surprisingly enough, you probably want to be inside the partnership LLC category, but there's some twists you want to do, which people should, we should probably talk about next show because it gets complicated. If you're doing flipping real estate, you probably want to S corporation unless your income is over, let's say, 77,000 and you're married, then you probably want to go to a C corporation. So those would be roughly the broad categories. And if you're doing investments of whatever you're doing and your household incomes over 150, you probably want to have that C corporation. So that's some broad categories, but like you said earlier, it just really depends upon everybody's situation to get all the nuances.

Right. And there's very, actually, I mean, I actually don't know this. I'm just speaking of the people that I do know. Sure. And the number of people that I've talked to through this show, a lot of people do a combination of all of those things. Oh, yeah. Right.

Some people do do that, yeah. And I imagine that would come into play what their decision is as well. Yeah, very much so. And then something you just said about an LLC, you know, a big portion of what you talked about at the epic intensive, gosh, you had an hour conversation on why, you know, an LLC is going to kill you, right? Well, for asset protection, yeah, everybody thinks that, you know, oh, LLC's, all they have to do is set up an LLC and it cures cancer, the common cold, and all that other stuff. And what most people don't tell you is that LLCs don't really have all that much asset protection. and they can be taken away in case of a bankruptcy, a lawsuit, and all that other stuff. So LLCs aren't the end all that everybody thinks they are.

You really got to look at the situation and figure out what's best for you. Perfect, perfect. Okay. Yeah. And what's best for you was, you know, you gave probably, I don't know, countless examples of if this, then that, if this, then that. So there's a lot to take account. And so it's an individual basis.

And I would be going to stop this conversation right at the beginning when you said, it depends. You could have saved everybody a lot of time, huh? Yes. So one thing that you did at the Epic Intensive is you gave everybody the ebook, like we've given everybody here on the show, but you also gave them the opportunity to have this free coaching call, consulting call, strategy session, planning session with you,

which was very gracious. And that was kind of one of the terms of our agreement. If you were going to come on the show, you had to be a giving guy. You had to be in alignment with the mood here. And you certainly exhibited that. And I wasn't expecting all that, though. But with all the people that were at the intensive, they were very grateful.

And I was like, can we say that to the podcast audience too? And you said, yes, right? Sure, more than happy to, more than happy to. Because, Matt, you got to realize whenever you're as born as I am, nobody wants to talk to you. So if I actually have people want to talk to me on the phone, my goodness, gracious, that's just amazing. Yeah, that's your reward, right?

And then your mom sits across the other room. Look at Tim go. He's gone. up to be such a professional. What happens? She answers the phone. She goes, would you like to talk to a sweet young boy? Right. Oh, it's funny. We'll always be boys in the eyes of our parents, won't we? Oh, yeah, very much so. Totally cool. So if you'd like to take Tim up on this, and he can't do this forever. He is only one man. And, but this is a timely conversation. This deadline is approaching. You need to to declare how this is going to work for you and what your business structure should be before

March 15th, you said, right? Yes. Perfect. So go to taxhacker.com. You won't see a place to schedule this call, but just opt in for the ebook. And you'll get the five loopholes of Trump's tax plan that the media is not telling you about. And Tim told you about and it will continue to tell you about and reveal that on the show. But just go through that process.

And once you have the, you're on the download page, I think, is for the e-book, there'll be a little link to Tim's schedule. And you can book yourself in right there and make it a convenient time for you. And boom, you're done. And now you've got on the calendar, you've got one thing scratched off your to do list and you're prepared to tackle 2018 without overpaying taxes. Did I cover it? You covered it. You covered it fantastically. All right, Tim, well, enjoy the rest of your day. It's Sunday right now. And so we're doing this because it's that important, we just kind of broke away from our family and what we were doing on the weekend right after the intensive. And as, you know, we don't want anyone to be misled or left out, I guess is the word I'm really looking for.

And or overpay their taxes. And overpay their taxes. Yeah, there was there was a, who was it in the audience that kept on talking about the retirement plan? Oh, and you never have to pay taxes again. Right? Yep, yep. That was the great catchphrase you kept on using. Exactly.

Anita, if you're listening, hello, and it was great seeing you. Anyway, Tim, I'll let you go. I'm going back to my Sunday, and we'll talk next week for another episode of Tax Hacker Tuesday. That's it for today, as we dream of a tax system that works just for you. But until then, you have Tim Berry. See you next Tuesday for another episode of Tax Hacker Tuesday. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.