12: 7 Tax Strategies For Real Estate Investors | Tyler McBroom
About Tyler: Tyler is a second-generation CPA who grew up hearing his dad talk tax strategies with his clients. Putting that experience to good use Tyler is now one of the top CPAs specializing in working with small business owners, real estate businesses and real estate investors. He went to Pepperdine University and earned his MBA from Chapman University. What you will learn: What is the baseline foundational thinking that small business owners or real estate investors should be thinking about when tax time comes around? (2:50) Tyler’s seven step tax strategy: Step 1: (8:30) Form a corporation to help eliminate self-employment tax. Step 2: (14:12) Rent your home to your corporation for your board meetings. Step 3: (20:23) Get your books on autopilot. Step 4: (26:15) Tax plan proactively. Step 5: (30:15) Hire your kids to work for you (if they are under 18). Step 6: (33:09) Make your kids college expenses tax deductible. Step 7: (35:36) Use a multi-entity fiscal year end program to defer taxes. What tool or resource does Tyler recommend for getting the books of a business on autopilot. (23:10) How often should you meet with your CPA to get ahead of your yearly taxes? (27:35) For the new investor starting their business tomorrow what are the few crucial steps they absolutely must take? (43:12) What questions should you be asking your CPA to make sure he is knowledgeable of all the possible deductions that are out there. (44:00) What are some of the biggest mistakes new investors make when first starting out? (46:05) How are gains taxed when flipping houses? (47:23) Quotes: At the front this conversation (taxes) isn’t exciting but when it comes to tax time and they have to cut a check for $20,000 less than they thought to Uncle Sam they get excited. If you are going into flips and have some rental properties a lot of your liability can be covered by getting a simple umbrella policy. Anyone going into business for themselves should be some form of entity (and not a sole proprietor). You minimalize your chances of being audited by 3X by forming an S Corp (instead of being a sole proprietor). A deduction isn’t anything without a receipt if you get audited. Resources: Help spread this uplifting content by leaving a review on iTunes: http://bit.ly/MMiTunesReview Stay in touch with Matty A: Website: https://mattaitchison.com Facebook: https://www.facebook.com/mattyaitchison Instagram: https://www.instagram.com/mattyaitchison YouTube: https://www.youtube.com/channel/UCinIteUWBIk-ycgg5i7q99w/featured Guest Resources: Website: http://measuredresultscpa.com Facebook: https://www.facebook.com/MeasuredCPA Instagram: @tylermcbroom YouTube: https://www.youtube.com/user/tylermcbroom