A tax break for landlords that can save 5, even 6 figures in taxes?
Real estate professional status.
Here's a short guide to REPS:
(takes less than 2 min to read)
1 - Why should you care?
Most rentals produce tax losses thanks to depreciation.
But those losses are "passive" and cannot offset active income.
Instead, the losses are suspended and carried forward.
REPS allows RE investors to use the losses to offset active income.
Jul 4 • 5 tweets • 1 min read
Making over $200,000?
Here are 4 ways investing in real estate can reduce your taxes:
1 - Depreciation
Landlords claim depreciation expense to offset the rental income they received.
Rentals generally produce positive cash flow but, after accounting for depreciation, show a loss for tax purposes.
At scale, this can significantly reduce effective tax rates.
Jun 23 • 8 tweets • 2 min read
11 ideas I wish everyone knew about taxes:
(These will save you time and money)
1 - Never say “no” to a bonus for fear of higher taxes. Tax rates are progressive… only dollars earned over the brackets threshold will be taxed at a higher rate.
2 - If you can contribute to an HSA, max it out each year. The contributions are tax deductible.
Jun 6 • 12 tweets • 2 min read
You cut back on lattes to save money.
I focus on reducing my taxes.
The average American pays $524,625 in income taxes over their life (but they don’t have to).
Here are my favorite tax reduction strategies:
1 - Contribute to an HSA
A Health Savings Account is available for people on High Deductible Health Plans.
You can contribute $4,150 annually ($8,300 if married).
Your contributions grow tax-free and you can withdraw funds for qualified medical expenses tax-free.
May 25 • 7 tweets • 2 min read
Wealthy investors know defer taxes into eternity.
Recently, they’ve been using a tool called Qualified Opportunity Funds to defer gain from the sale of:
→ Stock
→ Real estate
→ Businesses
You can use a QOF too.
You just need to know how they work 👇
The 2017 Tax Cuts and Jobs Act established the Qualified Opportunity Zone (QOZ) program.
QOZs are economically distressed areas designated by the state.
And there are BIG tax benefits for investing in them.
May 21 • 11 tweets • 3 min read
Best tax deal in the U.S.A.?
Owning a small business.
Whether it’s a side hustle or multi-million dollar enterprise, business owners can reap tax benefits.
Here’s how:
1 - Business Expenses
When you own a business, you can deduct expenses that are “ordinary” and “necessary” to run your business.
This doesn’t mean you can deduct haircuts and clothing.
But you can deduct your home office.
Or computers, cell phone, internet, and car expenses.
Feb 9, 2023 • 13 tweets • 3 min read
Why you should get rid of timesheets...
And how it will make clients happier & increase profitability 👇
Before we get started, I re-committed to my newsletter which provides weekly growth and management tips to accounting firm owners and leaders.
Leadership lessons I wish I knew when I started my business 6 years ago:
1. Not everyone will grow with you. Recognizing this early will help prevent the Peter Principle at your company.
2. Words matter. But what you tolerate matters more.
3. Mediocre performers kill teams and damage a company’s reputation.
4. When an employee demonstrates a pattern of failure, there’s likely a lot more going on below the surface that you are unaware of.
Jul 20, 2022 • 19 tweets • 4 min read
We charge $4,500 - $9,000 for our tax planning services.
Here's how run our $1.4MM service line 👇
In this thread, I'm going to walk you through the backstory, & our process for sales, hiring, training, & delivery.
It has taken many years to get the process right but now it's a science that can work in any niche.
And our clients love it (pic: NPS scores from last 6 months)
Jul 10, 2022 • 11 tweets • 2 min read
Downsides of a subscription model for accountants
(from someone who made ~$2MM running one)
That no one seems to be talking about 👇
I ran a monthly subscription model for 2.5 years (2016-2018) before I pulled the plug.
This thread details the issues I ran into from pricing to execution.
If you like it, retweet the first tweet and share!
Jul 9, 2022 • 12 tweets • 4 min read
How to build a unicorn firm that
- pays new hires w/ 0 exp $80k salaries
- allows them to work 30 hrs a week remotely
- and become a client-advisor quickly
👇
Here's what we'll cover in this thread:
- Why increasing wages, industry-wide, is important
- Building a results-only culture
- Advisory-first service model
- Create clear career paths
- Offshore the compliance
- Running a remote team
Let's go!
Apr 19, 2022 • 16 tweets • 3 min read
Tax Season Reflections:
1. Putting the right people in the right seats makes a world of a difference. We have two rockstar tax managers & a VP of Ops who absolutely crushed it this year. They planned our entire ~$2.4MM tax busy season and it was the smoothest it has ever been.
2. We lost three of our 8 new hires during busy season. All gave no notice. Strange and disappointing and gave no feedback. 100% remote environment doesn't work for everyone and we need to ease new hires into our results-based workflow better in the future.
Mar 24, 2022 • 9 tweets • 2 min read
How to know you suck at selling:
1. Sales calls last more than 30 minutes 2. You give advice on the sales call 3. You end the call without a “no thanks” or a firm commitment to purchase
Here’s how to get better:
1/x
When I started my firm, my sales calls would last 1-1.5 hours. I wanted so badly to impress the prospect so I’d answer all of their tax/accounting questions.
It wasn’t until my wife asked me why I was giving all of that advice for free that I realized I sucked at sales.
2/x
Apr 8, 2021 • 23 tweets • 4 min read
How buying short-term rentals can save you big 💲💲💲 in taxes.
A thread.
1/22
Owning rental real estate provides tax benefits. Rentals can have positive cash flow while also reporting a "tax loss" to the IRS thanks to depreciation.
Before 1986, investors used tax losses from their rentals to offset their W2 & business income.
