How to hire someone GREAT to do your taxes.

Someone that will not only do a nice job on filing your taxes, but will find you all the LOOPHOLES.

***Thread***
Ask people similar to you who they use and if they are happy with the service.

If that doesn't work, google "[your city] + CPA.

While it's not necessary to have a local accountant you can meet with in person, it has it's benefits.

Visit some websites and get a feel.
Pick a few that you think you want to work with and call them.

Here's a script,

"I am in the business of [your operations], making about [your expected revenue] this year, and am looking for someone to help me with my books and taxes. Are you taking new clients?"
They are always taking new clients - they love to work.

Then ask them any questions YOU need to get comfortable with THEM.

Remember, they work for you.
They will charge an hourly or monthly rate for bookkeeping.

They will charge an hourly or per return rate for tax returns.

.Get rates from all the CPAs that you talk to in order to compare.

Here comes the twist...
CPAs, especially smaller offices, are often cheaper than heavily marketed tax shops like @HRBlock...

BUT! CPAs are much better at doing taxes (saving you money, accuracy, etc) than places like @HRBlock.

Thus, the price and quality makes CPAs a huge value.
The more sophisticated you get, the more likely you will need a larger CPA office or tax attorney (pros and cons of both), but by then you will be able to afford either. Don't worry about that for now if you are early in your profit journey.
If this thread helped you, please like or RT it so we can build a stronger tax-saving community, which will benefit us all.

If you want 60 other tax-saving THREADS of similar quality, all in a single 121-page document, grab a copy of my guide below before the price goes up!

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Patrick the Tax Advisor 🔥

Patrick the Tax Advisor 🔥 Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @AskForTaxAdvice

20 Jan
Want to know the biggest loophole in the US Tax Code?

This might be it.

If you think you make too much income to contribute to a ROTH IRA, you might be right.

It just doesn’t matter...

There’s another way to get that tax-free goodness.

***Thread***
2) A ROTH Conversion

Some people all it a "backdoor ROTH," but let’s not! It sounds wrong and a ROTH conversion is soooo NOT WRONG.

There is no income limit on converting a traditional IRA to a ROTH IRA.
3) There is no income limit to contributing to an a traditional IRA (just a limit on getting a deduction for it).

If you want a ROTH IRA, tax free growth, and no tax on withdrawals at 59.5; but you make too much money, here are three easy steps:
Read 11 tweets
20 Jan
Get PAID to go on VACATION using the tax code!!!

Two transactions at the same time: one generates a tax DEDUCTION and one generates TAX-FREE INCOME.

This might be my second favorite thread I’ve ever written!

Let’s bounce this ***THREAD**** to all of our friends via like/RT!!
1) First, the DEDUCTION:

Vacations might have airfare, lodging, and food costs in the $1,000s or more.

In general, vacations are NOT deductible.

BUT!!!

When I'm on vacation, I like to be on vacation, but I know how most of us on MoneyTwit are...
2) You are going to spend a couple hours per day working, even while away.

At the resort bar or the pool, you are going to be naturally networking and making connections. Talking shop with others.

You might even be there looking at property to buy and rent out.
Read 11 tweets
19 Jan
Do you NEED an S Corp?!

You might!

Have you ever wondered what an S Corp actually does for you?

***Thread***
2) First, Self-Employment Tax (“SE Tax”)

If you are self employed - entity or not - and have no other sources of income, you will be taxed 15.3% of your profits to $137,700 of profit and 2.9% profits after $137,700.

It approximates payroll tax.
3) For example, let's say your business profits $150k, either as a sole proprietor or single member LLC.

In this example your SE Tax would be approx. $21,425.

Here’s how having a S Corp could save you tax...
Read 10 tweets
19 Jan
When do I NEED to form and LLC for my business or side hustle?

***Thread***
1) Upfront, you have to ask this question from multiple perspectives.

There is an answer for legal purposes.

There is an answer for tax purposes.

There may be an answer for commercial purposes.

I'm going to address the tax aspect directly.
2) From a tax perspective, if you are the only owner (called a "Member" in an LLC), the IRS does not see the LLC as separate and distinct from you. It is "disregarded" from you for tax so it doesn't matter.

(You can elect to regard it, but that's another topic.)
Read 13 tweets
19 Jan
How Lawrence King pays ZERO income tax.

You’ve seen him tweet about it.

Have you ever wondered how he does it?

…or maybe if you could, too?

***Thread***

@lawrencekingyo
First Hurdle – Citizenship Country

Your country of citizenship may tax you on worldwide income, income earned in country, or a both.

Lawrence is a UK citizen, a Uruguay resident, and a “nonresident” for UK tax.

The UK only taxes income earned in the UK for nonresidents.
First Hurdle – Citizenship Country

As long as @lawrencekingyo stays out of the UK for all but 46 days a year, he should keep his UK tax nonresident status and not owe any income tax on any income he earns outside of the UK (presumably all of his income).

Hurdle cleared!
Read 15 tweets
19 Jan
FACT: You LOSE at least 1/3 of your income to TAX! ...and if you are making a lot of money, it's over 1/2!!!

Think what you could do with that money, even just some of it?

If you could just take 10% back, what would that mean to your life?
If invested properly, could you retire 10 years earlier and enjoy more of the good life? What would you do if you could stop working 10 years earlier?

What would your vacations look like if you had 10% more of your income?
That's like going from a hotel inland to staying in the biggest house on the beach!

Maybe you would put it all in dividend stocks or real estate and enjoy the financial security of knowing you had regular dividends and rents coming in.
Read 19 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!