A November 2022 podcast episode by Flip and Danielle Robison (Freedom Real Estate Group) advising listeners to perform year-end tax planning for the 2022 tax year. The hosts emphasize bonus depreciation (noting 2022 is the last year to claim 100% bonus depreciation) as a major way to reduce taxable income when investing in their deals, explain the difference between a tax preparer and a tax strategist, and recommend interviewing multiple tax professionals and prioritizing real-estate expertise. The episode closes with a call-to-action to join their investor club and a standard disclaimer.
Questions this video answers
November 2022
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Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.
Podcast, which is called Freedom through passive Income.
That's right, and welcome to another episode. And this episode is entitled strategize your tax deductions for 2022 before time runs.
We are in November, so this was a timely topic. And actually it's funny because Ariane and Chris just did a podcast the other day that got released, and it was talking about taxes, and I literally wrote them in Slack. And I said, hey, just saw your episode. What's funny, because we have this scheduled to talk about tomorrow because we're in the middle of taxes. We're not doing our taxes right now, but we're thinking about the fact, okay, what happened this year? And we're creating our list to be able to have strategy session with our tax advisor to be able to say, hey, what do we need to do before the end of the year that will help us not remove, well, as much as possible, remove our tax burden. So we wanted to do an episode.
We don't fill out the 1040 EZ anymore.
No. So we wanted to talk to you guys about it because this is something that you should start doing every year as well. We've got friends that they. They bulk buy appliances, like, at the.
End of the year between Christmas and New Year's. That's all they do. They just take big trucks over to.
Best Buy, and they're just trying to get all the tax deductions that they can in order to reduce their tax burden.
Oh, and vehicles, too?
Yes, and vehicles. Yes, yes. And so it depends on your situation as to what that might look like. And that's why we're not going to give you specific advice on this episode. We're just going to talk about the fact that now is the time to be doing it. November through December is to really kind of gather everything that happened in your life over the past year and book an appointment with your tax preparer and tax strategist and talk to them and say, hey, this is what I've done. Do you have any advice on how I can reduce my tax burden for 2022 that I can still do through the end of the year? One of the things that we keep talking about that you can do to reduce your tax burden, and this is for anybody, is bonus depreciation. So bonus depreciation. This is the last year to be able to get 100% of it. So let's just say you invested $100,000 and hist in our investments, you can deduct 30 to 50% of that. That means $30,000 to $50,000 is being applied to limit your tax liability in 2022, so long as you invest this year. This is why we are pushing so hard to get a deal before the end of the year. For those of you who are strategizing right now, they're like, sign me up. I want to reduce my tax liability. I'd rather put $100,000 in here and save myself 30,000 to $50,000 on. I have nothing against paying taxes at all. It's just that I don't want to pay more than I need to. And so that's one of the very, very key things that everybody who's listening to this can take home. Bonus depreciation. Bonus depreciation. And if you're in our investor club, ask us about the deal right now that we're doing, because we just rolled it out and we are phasing it. And so if you're on our waiting list or if you're proactively calling us, we're going to invite you into the deal before we actually send it out to the rest of the investor club. So jump on the phone, find Ben and C. So that's a big, big chunk off of your tax liability. And that's not even the rest of it. Right. You're still going to get more depreciation in 20, 23, 24 on this deal. Right?
Right.
That's just the largest chunk. So I wanted to talk about that and then a difference between a tax strategist and tax preparer. Can you talk about that a little bit? Flip?
We hire both of them.
Yes. Fortunately for us, our main tax guy is a little bit of both. But that's not always the case. Right. Sometimes people prepare. They just want to receive the information, and they're going to actually do your tax returns for you. A tax strategist is many times the person that goes, okay, here's all the things that you're doing. I'm an expert in real estate. I understand all the ways that you can save money. So I'm going to tell you how to do that. I'm going to tell you what to do in the next two months in order to reduce your tax burden. And so you might want to start talking to your CPA or whoever does your taxes and ask them, hey, is this something that you can do? Can we do a strategy call? Is this your area of expertise? How well do you know real estate? All of Those questions are important to see if your person is the right person or if you need to find somebody who can help you with tax strategy. So here's my advice. We're not going to give you a big list of questions to ask your tax person, whoever they may be. If it's you, you're probably not the tax strategist. So if you do your own taxes, you still want to go and start interviewing people. You're going to. Obviously, if you're doing deals with us, you're going to want to make sure that they understand real estate. But here's what I want you to ask them. I want you to ask them or hey, I'm interviewing multiple tax professionals right now. What would you advise that I ask them to make sure I'm hiring the best person for my needs? Obviously, I know I need to be asking about real estate, because you probably ask them what this is going to do is going to put them on the spot. Right. Because they want to win your business. And now you're telling them, I'm interviewing other people. What would you ask? So they're going to start telling you things that you hope are going to be very either shine a bright light on them that goes, oh, man, they are way smart. This is definitely the person that I want. You're going to take that information, you are going to ask other people, because when you ask that same question to somebody else, they may say something that the first person did not say. And you're going to go, oh, I didn't even think about that. Can you explain that to me? And they're going to happily explain it to you so they can show up every other tax professional that you're talking to. So I think that is the wisest, sneaky little trick at the back end of a phone call that you can do in order to understand what they really do know. And then set yourself up for the next call and do the exact same thing and compare everybody that you're talking to. And Flip and I talk about, about the fact that we talk to a.
Minimum of at least three.
Yeah. For everything that we do, three contractor bids. Three. What's that line? One, you have no choice. Two is just a dilemma, and three actually gives you a true choice. So we always do things in threes. And even when our team comes against a challenge, we ask them to come up with three possible solutions to give us to start the brainstorm session. Maybe one of those solutions actually is the best one, or maybe it just starts us all to open up our brain and talk about more things. So that's my best $0.02 on how to find somebody. If you don't already have somebody that you're working with that you can do this. But taxes are the single biggest expense that we all spend in our lifetime. The effort you put in to understanding taxes and saving and limiting your tax burden will make you wealthier than anything else that you can do. Right. So that's why this is so important. We're going to be rolling out some things in 2023 that's going to really dive into this stuff and help you guys learn a lot of what we've learned over the past few years about things that we're doing to reduce our tax burden, and we're going to convey that to you. For now, you still have two months left of 2022. Jump on the phone and find somebody to talk to so you can learn just a little bit. And maybe in the next two months you can do something. Certainly talk to us and we can help you with that. Bonus depreciation. That's a good chunk of money.
Yep. Yep. We are not CPAs or lawyers.
That's true.
That's always our disclaimer. But we hire them.
Yes.
Yeah. Yeah. You know, and it's funny how many. How often CPAs are very similar to lawyers. And you can put 10 of them in a room and ask each one who they think is the best one in the room. And they're all gonna say that themselves.
Yeah.
And they all think they're all smarter than the other person. So that's why the interviewing them, asking what questions, you're putting. Like you said, you're putting the spotlight on them. You're telling them to show off because they want to. That's in their DNA. And they want to peacock and show you all this stuff. Because I tell you, I swear, we've heard a few times when One of our CPAs says, well, they shouldn't have done that. And here's why. You know, they just love saying that.
Yeah, they do.
The previous guy you had hired, he didn't do it right. You know, and so it's. It's very important to do that. And it's great. But, yeah. Anyway, I like how you asked me to tell you the difference between the preparer and the strategist. And then you tell, oh, I'm sorry. I just said we hire them both. But no, no, I was just kidding. Anyway, we hope you enjoyed this episode. Make sure you're going over to our website, freedomcapitalinvestments.com to join the investor club. Make sure you're heading over there. Make sure you're talking to Ben or CJ to get the information about everything we've got going on here at the end of the we're not buying appliances and or cars. Ooh, that sounds like a good idea.
Oh my gosh.
For our tax strategy, but it has now entered my brain. But anyway, make sure you're talking to them so that way you can join the investor club and get all that information. But we like to end all of our episodes with Invest Smart, Live Happy. Bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit and loss.
