Epic Real Estate Investing - Who Can and Can't Be Helped with the New Tax Plan | 351

Episode Date: February 27, 2018

Tax Hacker Tuesday is back to show you who can and can't be helped with the new tax plan! Depending on your income strategies, the tax plan will serve you differently - and for some, it can do amazing things. Tim Berry shares the qualifications and strategies that could save you thousands in tax dollars. Find out if you're one of the lucky ones who can benefit from the new tax plan with Epic Real Estate and Tim Berry on Tax Hacker Tuesday! 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. Welcome to the Epic Real Estate Investing Show. It is Tax Hacker Tuesday with my attorney and friend, Mr. Tim Berry. Tim. Welcome back to the show. Thank you so much, Matt. Thank you so much. You bet.

So on Mondays here at Epic, we show you new and creative ways as well as time-honored ways of making money using real estate as your investment vehicle, as your money vehicle. And then here on Tuesdays, we show you how to keep it. or Tim shows you how to keep it. He's much better at that than I am, and that's why I listed his advice, and that's why I'm sharing him with you. So, Tim, I've had to run a couple of back episodes from your archives for the last couple weeks. You've been really busy lately. What have you been up to?

What am I up to? Talking to your listeners, I mean, whenever you offered the free consultations, man, I didn't think people were actually going to take us up on that, man. You've got a lot of listeners out there. Yeah, yeah. you know, we extended that invitation for a free session with you. And we were caught a little bit by surprise. And we filled up your calendar for days with these appointments. And so much so that we had to call in for some help to sort those appointments out. So if you called in to talk specifically to Tim and you ended up talking to one of his lackeys, one of his team members before Tim,

our apologies, it was just the only way and the best way we could figure out, you know, who and how we could get the people the right help. You know, Tim, he's only one man, a very generous man, but still he's limited by the same 24 hours in a day. We're all limited by. So, Tim, let's kind of go through, like, do we have, I don't know, I don't want to categorize people, but maybe it's just a category of people,

because I know we have different people in different situations that listen. Everybody's situation is a little unique, but we have some general idea of who you've been talking to and how you've been able to help and who you haven't been able to help, maybe. Yeah, in general, let's do the bad stuff first, the ones who I can't really help. Okay. So once I really can't help, and for the most part, are W-2 employees.

If you're a W-2 employee, they're just kind of stuck. I mean, there's a couple of things we can do, and if you're a higher net worth, W-2 employee, there might be some G-WIS stuff we can do. but if you're making under 150 or so a year as a W2 employee, not much we can really do. I'd love to say we can waive a magic wand and cut your taxes. Probably can't. You know, max your 401K contributions.

That's a neat thing to do, but, you know, that's just regular information everybody knows. So W2 employee making less than 150, it's going to be tough to help. I'd love to say we could, but not going to happen. When you say W2 employee, you're talking about someone who's income is, comes exclusively from a W-2 job?

Yeah, great clarification. If all your income is from working for the man, we're not going to be able to do much if you're making less than 150. Got it. Okay. Next person. Next person, and these are the ones who are kind of fun to work with,

is they got the W-2 income. They're working for their man, but also at the same time, they have self-employment income from doing flips on the real estate. Those people, we can start to work some wonders. Those are great candidates for tax planning, where we can start saying, okay, here's your situation, here's what you're doing now, here's what you need to do in the future, and this is

how we're going to save you tons of money. All right. So it's a W-2 employee one category that's got a side hustle going on, and likely if they're listening to this show, it's probably real estate is their side hustle. Yeah, exactly. And I love that phrase, side hustle. Okay. And then we have, I guess, a third category who are full-time real estate investors. What do they fit in? Well, full-time real estate investors, we can work magic with. I mean, the ageal phrase is, you're going to have to pay taxes on what you need for your personal living expenses for the mortgage, the car, the kids' tuition. And actually, kids' tuition, we might be able to make that disappear. But anything over and above that you're reinvesting and you're earning over what you need for your personal living,

we can probably make that tax deferred. Some cases even tax-free. So those are people that we can really work some magic with. Got it. And someone had actually asked me, I think they saw through our scheme here. Why is Tim doing this all for free? Well, if they would see the video right now,

you'd see a little halo up top. Yes. I throw a golden view to it. That's how I view you, Tim. We have to realize that they are, there are skeptics and cynics out there. So let's just be straight. This is how Tim finds new clients by offering value up front to demonstrate how he can help.

And then he's going to put the ball in your court to where you get to decide which direction you want to take. Sometimes it's a good fit. Sometimes it's not. But either way, Tim is committed to seeing that you're better off after the call than you were before. All right. So let's just be totally fair and upfront there. And so we just kind of wanted to describe.

describe who Tim can help and who he can't. Okay, so I don't know, tell me a fun story of someone that you helped and did wonders for this week. Kind of give someone an idea of what that might have looked like. Gosh, my mind's cut on unfund stories right now. I've got clients right now who have been in bad situations and now we're being able to protect him going forward. So I'm just trying to think. That sounds fun.

Let's do an unfund story then that turned half. Happy. Boy, well, one unfun story that's going to turn very happy is individual. And this is a story I see so many times. Real estate developer. Well, here's a fun story. Let me switch gears real fast to a super fun story. Okay.

Real estate developer doesn't need income, doing some deals. And what we're going to be able to do is we're probably going to be able to put his next development inside of a Roth 401K. and he's expecting to make a million bucks on this whole thing. So now, if in fact it pays off to be a million bucks, he's going to have a million bucks completely, totally tax-free, and it's not just so much completely, totally tax-free, but it's completely and totally shielded from creditors, too.

So that's a super neat, gee whiz, knock it out of the ballpark situation. Other situation I was going to tell you about, and this I really want to put out there, because it happens way too many times. individual. He's in his late 60s 70s. He knocked it out of the ballpark earlier in life, filled up millions, and then in the 2006 through 2007, eight fiasco, has lost it, has been on the run ever since. And we're going to be able to clean up his past transgressions and just wipe all that stuff out and move forward for the guy. And I mentioned this because there's so many people,

they say, oh, I don't want to talk about asset protection. I don't want to worry about this, this, this. If this guy just would have done some basic steps back in not, gosh, 2003, 2004, he still have millions to his name. He didn't. And now he's underwater, but we're at least going to be able to wipe out that stuff and allow him to move forward. Sweet.

So something that just came up to mind, you know, when you talk about, there's a lot of conversation going on and around, And this seems to be an integral tool that you use as far as tax strategy and tax planning for people is some form of a retirement account. I think, I don't know, I guess when I hear the word retirement account, I think of like, okay, I'm going to do it in there fine and dandy, but I got to wait until I get my profits out, get my money out, right? And to me, that doesn't sound all that exciting. Is that really what it is or there, how could someone say this real estate developer, for example, he makes a million bucks? Does he have to wait until he actually gets to enjoy that million bucks?

Or are there other things he can do with it? Like, what are his options there once it's inside of that retirement account? Well, once it's inside the retirement, first off, yes, he's going to have to wait to enjoy his million bucks. He's going to have to wait until he's over 59.5. This guy is 50-something. So it's no big deal for him. But let's say that you plow a lot of money inside the retirement plan, and you're using that

for investments anyway. You can still invest that money inside the retirement plan. You're not stuck with stocks, bonds, mutual funds. You can buy real estate. You can do hard money loans. You can do lease options. You can do tax lien certificates. The whole world is still available on your investments. But let's go to a double bonus round. Double bonus round is let's say that you're gosh, 23, 24 years old or 34, 35 years old. And you've got to wait the 20 years to gain access to that money. You don't want to wait until 59 a half. No big deal. Do the deals in your parents' name. Do the deals in your uncle's retirement plan name, whoever. Now, as long as we do the proper steps and now the deals are being done in your parents' retirement plan, they're going to get to 509 and a half before you are.

They're going to be able to gain access to that money if they're not already there right now. a great way to be able to put the transactions in their retirement plan. And I'm going to throw out a little, I don't know, self-serving statement for you, man. And this is the stuff that you guys teach how to do this neat real estate stuff. And now by learning and listening this, you don't need gobs of money to do this. You can use other people's money. And so now if you can do no money or low money down transactions, using other people's money inside the retirement plan, you can build these things up relatively fast. And now once again, even if you're at a young age, no big deal, do the deals in mom and dad's retirement plan and gain access to the money that much faster.

Got it. Okay, I like that. I like that. That's one option. And when you said kind of like this is what I teach, this is what, you know, this is what we do here. I like retirement plans. I like, I like getting your money into a tax free or tax deferred environment and allowing it to grow there. But I'm not so much, I've always been a little bit of an advocate of that being not your primary strategy, meaning let's get your income to a place where you can enjoy life now while you're still 34, 35 years old, just to go with your example. And then taking the excess and putting it in there into your retirement account. So are there some tax strategies that someone could do outside of a retirement account?

Oh, gosh. That's an open question. There's just so many tax strategies. Right. Okay. So let's just kind of, you know, if you were going to go with that and that was the goal, let's get our passive income up to a point where, you know, we can get all of our basic life necessities met for now so we don't have to work.

And that's the ultimate goal of cash flow of escaping the rat race. I don't know. What's one strategy where we can kind of minimize the type of taxes we do end up paying right now? you said some words cash flow and income and this might be a little bit too out there for this podcast but there's a neat way how you can rip off the cash flow of rental properties so the rental income you can just strip that right off and you could sell that to others so to speak or to put it a different way people could just buy those cash flow those rental cash flows and that's because literally you could construct an income portfolio, a cash flow portfolio,

giving you 10, 15%, and you would never have to pay a diamond taxes on that if you did that correctly. And the cool thing is now if you just buy those cash flows, you're not paying for the principal for the house. All you're doing is buying the projected income. And it's just a neat little tax strategy to do that, because once again, you can get gobs of income, probably twice as much as you would buying rental properties, just buying these cash flows, and the money's going to be effectively tax-free. So if somebody's looking for cash flow for income, that's a really neat way how we can make rental income tax-free for them. That's a simple one. And you might be saying, well, gosh, anybody can make rental income tax-free. We can probably get higher rates of return

doing certain things. And I'm not trying to play hide the ball by saying doing certain things. It just gets really complicated, really fast. But there's just all sorts of ways to construct cash flows and get that money out tax free. I like it. I threw you a curveball and you knocked it out of the park. That's awesome. That's awesome. All right. So Tim has a book that he written. It's totally free. No catch. If you'd like a copy, you can go to taxhacker.com. You can grab it. It's how to take advantage of five loopholes and Trump's new tax plan, the mainstream media, isn't sharing with you and could cost you a small or a large fortune. We hear at the Epic Real Estate and Tax Hacker Tuesday,

we're on top of the Trump plan before anyone was talking about it. Now you're hearing about it everywhere. But we're deep into it. We started talking about it on day one, January 1st, and so Tim put that book together and give you some ideas there. And then after you've done that, you'll have the opportunity to schedule some time with Tim. We haven't taken that away.

We just kind of changed the procedure a little bit to make sure that you actually get the best help that you can get. And so either he or one of his team members will get on the phone with you for a short five to 10 minute call to assess your situation. And if there's a good fit, they'll go ahead and they'll guide you through the next step and schedule a tax action plan with Tim personally. And if there's not a good fit, what they'll do is they'll share some alternative resources to where a better fit for you can be made. Either way, Tim and his team are committed that you are better off after that call than you were before. So that's just Tim. Tim in his halo.

So that's what he does. All right, Tim. Thanks again, bud. Have a good week. And I'll see you next Tuesday for another episode of Tax Hacker Tuesday. Thank you, man. Take care. You bet.

Take care. 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.