407: Awesome Year-End Tax Tips | What You Must Know.

I like your life to be simple and efficient. And year end is the best time to close stuff down, set up or

dissolve any entities by January 1st. Why don't I just call you January 1st?

Because then you're paying another year of fees.

You don't want to have a partial year tax return next year. You don't want to be a sole proprietor for proprietor for four weeks of three weeks of January. Get it set up so it's ready to go. Start paying your kids to pay for their own things. Don't you pay taxes and give them money to pay for their things or pay for their stuff? Just change. Change the way you're doing and it can put thousands of dollars of savings on your bottom line. Welcome, everybody, to this week's episode of the Main Street Business podcast. And as the resident nerd of your two hosts, Mark Kohler, I am so excited about the tax strategies.

Yeah, baby. We're both tax lawyers, but Mark gets resident nerd because he also happens to be a cpa.

Yeah, I'm gonna.

So, yes, you're listening to a podcast by two tax lawyers. Your choice, all the options out there. But guys, you will save money.

Yes, this podcast. Some of you may have done a little search that you're looking for Year end tax tips, Year in tax strategies. You have found the podcast that's going to rock your world for the rest of your life or at least for the near future. And so we have 15 different tax strategies. I teach these in my annual year end workshop that is being held literally this weekend. So if you're catching this podcast, hopefully upon receiving release today, you'll have chance to register for that. I'll give you the place to register for that later. But we're of these 15. Matt and I are going to choose our two or three favorites and what these are practical and save you thousands. So.

All right, can I go number one?

Want to get into it?

To get into.

Okay, man. Okay. We're going to have fun. It's going to be. See, I just like saving money. Yeah, just saving money is fun.

It is.

It is fun.

And what. What I want to hit is setting up new entities or closing out your entities. And as your lawyer, I like your life to be simple and efficient. And year end is the best time to close stuff down, clear out the crap.

Okay, this is AKA get your crap together before year end. This is number two of the 15. So you're going at number two.

Okay, I like number two.

Okay. Okay, I'm gonna go to.

I gotta choose.

Okay. I've got my slide here. Set up or dissolve any entities by January 1st. Why don't I just call you January 1st?

Because then you're paying another year of fees. Let's say you're in the great state of California where you're paying 800 bucks a year. Oh, January 1st rolls around, you're due for another 800 bucks for 20, 23. Most states have an annual fee even. Not California. Also, if it's a corporation s corporation C corp, or it's a partnership, you got a company tax return also, that's going to bleed into another year. So if you have an old entity that you're not using anymore, or one that was the piece of garbage, you know, it was crap when you set it up. You didn't know what you're doing. You're not using it. Let's close it out. Dissolve it, get rid of it.

Yep.

And maybe you need something new on the dissolved thing.

Let me add to that. You see, a lot of you are thinking, not a lot of you. Some of you may be thinking, well, I've got an entity. It's already been automatically dissolved. You know, it's probably dead or it's probably this. It's probably, hey, you don't know. Go to the website and take active steps to dissolve it. You never know when this thing could come back and haunt you from the IRS going, what about this entity? Oh, I thought it just died. Well, you thought wrong. So our paralegals can help you actively dissolve something rather than just thinking it's dissolved.

Yeah. And our law firm, KQS Lawyers, we're doing a lot of dissolute dissolutions at year end. Now, one question a lot of people have though, is, is, well, Matt, what happens if I get sued in this entity? It owned a rental property before that I sold or was a business. I shut down. What most states say essentially is if the liability occurred when the LLC was active and in good standing, you still get the liability protection. Even if, let's say, something happened in 2021 and you shut it down in 2022, you get a lawsuit. In 2023, if the lawsuit was about something in 2021, you still get the entity protection. Even though now in 2023, when you're dealing with a lawsuit, the entity no longer exists. And so you still will get that liability protection. Now, some people like to hold it open for a few years. Let's say, like, like our real estate developer clients, something like that, they like to hold them open for a few years. Wait to make sure any lawsuits may pass and then close them out.

You ready for the life lesson on this tip?

Yes. Life lesson.

Some of you might have, you know, a relationship with someone and you think it's over, but they don't think it's over. You know, and that's. That's a dangerous thing because you're making assumptions. And, you know, that ex, male or female might be thinking, it's the holidays. I'm expecting a little love, a little card, a little something. And yeah, you know, you're. You're. This is going to come back to haunt you. Cut it off. Just be. Let me get it over with.

Let me just.

Like any.

Any movie or TV show you've watched about the CIA or the FBI when they talk about tying off loose ends.

These guys are changing my life in other ways, too. That's right. Take control of this. Okay?

Tie off those loose ends in your life, whether they're legal entities or people. All right? Yeah.

All right. Now, setting up new things. The reason why I don't want you to call our law firm or whoever you're working with January 1st is if you call us January 2nd and you get an appointment, you're like, I need a new entity. Hell, it could be the third week into January before you actually have an ein and you're off to the races. You're like, I can do it online. No, those online companies aren't any faster than we are. You're going to still have delays in processing paperwork with the state and the IRS. So get it done now. So it's effective January 1st. So if you're setting up something new, I'd love that. You went to this tip because you don't want to have a partial year tax return next year. You don't want to be a sole proprietor for four weeks of or three weeks of January. Get it set up so it's ready to go out of the gate. Green light.

Yeah. Be ready. And some of you might need to change the type of entity you have. We'll get to that later. That's probably one of the strategies, maybe doing an S selection for you that are LLCs. That should have been that. But it's just a great time to look at your tax and legal structure, make changes to your entity by closing stuff out at year end and making the change. If you're thinking about a new thing, maybe you had an old Nevada C corp you knew was a piece of garbage that you want to get a new entity for 2023. Like, these are the perfect Time when we like to shut that crap down and set up the new stuff to set you free and the right entity that can save you taxes.

You ready for the life lesson?

Okay.

There's a life lesson here, too. Okay, you ready?

And you guys thought this was a tax podcast.

Don't wait till January to reach out to that new relationship. They're going to think, oh, this is part of their workout regimen. They signed a new gym membership. It's the new them. It's not. It's not authentic, because they know it's just January. Reach out during the holidays. Everybody's feeling the need for relationships, the need for validation and love. If you're. There's. You're interested in someone, reach out, say, hey, let's go grab a drink during the holidays and just like to reconnect and start 20, 23 off right. Ooh, more authentic. You know, I don't get that one. You didn't get that one. Okay, whatever.

I don't get that one.

We're trying. We're trying. Okay, so now I got to choose one of my tips. Okay. I'm going with number six, which is a classic Mark Kohler.

Oh, this is a good one.

I love this one.

I learned this one from Mark Kohler.

Yep.

Do it every year.

Every year. Number six is paying kids. Number seven is paying your spouse. That's a whole other topic. But number six, before year end, I'm just going to say, if you want to launder money, you actually have to launder it. You just can't say, I laundered.

Yeah.

Meaning if I want to pay my kids, you can't in January, February, go, yeah, I paid my kids. Really? Where's the paper trail? Well, they're under age 18. They're over age 18. I paid them out of my personal account. Did you pay them out of the business account? Are we processing a W2? Are we processing a 1099? Are we doing.

What's the plan?

You can't just wish it. So in January, you've got to actually do it.

Yeah. And remember those kids in your small business, don't worry about withholding FICA and all that stuff. There's exceptions for that. You want to be careful how you do it. We have separate podcasts just on this, on how to pay your kids. So go back and find paying your kids. We've got several podcasts that go into the details about how about how to do it. But just conceptually, I want to say this. Your kids, we want them involved in your business. That you should be teaching them. Teach them how to work. Let them know what you're doing. You got a rental property. Are they going to mow the lawn? Are they visiting it and helping fix it up? I mean, I mowed lawns that my dad's rental property when I was a kid.

And I loved that.

It was a great experience. My kids come in, they would clean the office and, like, give them jobs. All right?

Quit paying taxes at your bracket and giving money to your kids. If you simply process it properly through the right paperwork and channels and bank accounts. And it's not a lot of work. It's just changing the way you do it. Start paying your kids to pay for their own things. Don't you pay taxes and give them money to pay for their things or pay for their stuff. Just change the way you're doing it, and it can put thousands of dollars of savings on your bottom line. Any of you with a side hustle, you've got an S corp, you've got a rental property. It works in all those str. So lot to learn there. In my workshop this weekend, we have a whole section just from paying kids. It's in my book. It's gonna. We got podcasts on it. There's plenty of info. If you go to your accountant and they go, oh, yeah, but you gotta do this and do that and, oh, that's. They're too young. Or this, you have the wrong account. All right? Take ownership of this, do a little bit of research, and you might find out you've got an accountant with a stick up their butt. So are we gonna cut that out? You're gonna cut that out of the podcast, aren't you? We're gonna leave that in. Thank you.

I mean, because that happens, you know. Accountants, I know, they're the. They got more sticks than anybody, really.

They do.

And I don't know where they're putting

them, but I know your accountant, your accountant in high school was not under the bleachers getting high. They were up in the band playing the flute. You know, get rid of them. You know, get someone that's a risk taker.

Like a trombone player, maybe the guy playing the French horn. Like that guy.

You want the drummer? Where? He's up in the band playing the drummer.

That's the guy you want? Yeah. Then you a little nerdy, but kind of like, you know, yeah, he ran

below the bleachers and was like, what's going on down here? I'm in. That's the guy you want prepping your taxi. Okay.

All right, all right. By the way, did you hear Kanye West? Apparently the IRS is like seizing his accounts right now for not paying taxes. Poor guy. He just, he might have had the guy playing French horn, smoking weed underneath the bleachers.

Don't say that. Don't say that. Now you're blowing my plan.

You want to find the right balance because this guy's just like. Is a legit tax strategy when you do it right. And that's what we're talking about. You got to do it right. There's some more detail to it. But just last thing I'll say on it is, you're taking expense your kids picking up his income, but they're going to be under their standard deduction for what you're going to pay them. You got to learn the rules on that. So they're not going to pay income tax. It's an awesome thing.

Yeah. And the kids over age 18, make sure you pay them properly through your business. And then at Christmas, I know many of you, I'm going to be out Christmas shopping tonight. You're searching for presents. You know what your kids want, and they're stocking right here at 10.99. Yeah, it's a, it's a special gift. They love it, they play with it forever and it comes back to help them out. And on April 15th. Yeah, it's a great experience.

Yeah. No, actually, life lesson.

Yeah.

This gift comes a little late because the 1099 comes after December 31st.

But, and all kidding aside, here's the life lesson. Teach your kids about money. Have your board meeting, talk about life, talk about money. Get your kids involvement. Many of you grew up around the table not talking about money. Say, I'm paying you kids because you're helping me in the business. You're doing social media, you're cleaning the office, you're cleaning the rental, you're mowing lawns, whatever it is, teach your kids about your American dream. Help them live theirs. They can still have a day job. I love it. But one in three Americans now have a side hustle. Ask your kids, what's your side hustle for next year? Let's talk about it.

Love it.

Boom. Okay.

All right, I'm ready. Of course I'm going to talk about the retirement account topic and 401ks.

Son of a.

But I want to talk about two groups here, all right? I want to talk about those of you that have a 401k corporate America company and those of you who are self employed that maybe have your own solo 401k, maybe you need to get one. Okay, this is both categories.

Oh, I already want to say something. I'm loving this. So this is number eight, implement. Or we could even say utilize your 401k plan. Have a 401k strategy.

Because this is year end. Now remember, IRAs you get until April 15th. Don't worry about IRAs yet. If you want to do IRA stuff for 2022, you got until April 15th. But 401k stuff, you got to act now. So those you with day job, corporate America, small business, you don't own it, whatever. Max out your 401k, you got to start doing that now.

Okay, I gotta, I gotta comment there.

Okay.

I think there's two ways for it. For those of you in corporate America that have a 401k, yeah. You got two options. Matching out or max out. Okay. Matching out or max out. And I think that's an important distinction.

Yeah. Because I always go the opposite. Let me say this, let me say it.

Okay? You're first bite at the apple. Okay? Go ahead, the debater across the table.

This is my strategy.

Okay, all right, all right.

I know it's on your list, but I'm claiming it.

Okay, all right.

I like max out first.

Why?

Because I want to get as much money in my retirement account as possible. Now, if you're like, Matt, I can't do the max. Okay, maybe you at least contribute up to the max to make sure you're getting the full match from your company. You got to look into what your company's willing to pay and figure out where that full match comes. And then if you want to do more, then go somewhere else, back to a Roth ira. There's other strategies and ways to get money in. If you are self employed, if maybe a side hustle, maybe you can do a solo K on top of it. But I'm just saying a lot of people are in the situation where they don't have a side hustle. They can't do a solo 401k. And they're like, I want to max out my retirement account. I want the match, but I want to get as much money in the retirement account as possible.

Okay? Now all of you listeners, watch how I'm going to turn Sorensen around here real quick. Okay? Now here's why I like the matching out. Because you double your money. So if your company's going to match up to three grand, two grand, five grand, whatever the percentage is, and you figure it out, all you have to do is one Call to hr. Yeah. They're going to look at your percentage of your payroll.

What's my one call to HR and 20 transfers. And reading a piece of paper that finally someone sends you that tells you how this works.

Okay, so the matching out. All of you know that if I, you probably already have that number, that if I put it up to three grand by employer is going to match it. You just doubled your money. Okay, now why say matching out? Because your employers. Employers Buffet. Of what you can choose to put that money is going to be very limited. They're going to say, yeah, match, come on, we'll match it. Put in your three grand will match it. And then on day two, you're like, well, what are my choices? Oh, some crappy ETFs or mutual funds. That's okay because you doubled your money.

That's the dog food of buffets, by the way.

That is. It is. So. But why I like the match now is you've doubled your money, even if the options on day two aren't great. Then you go back and you take a breath and go, I'd like to self direct. I'd like to max out my Roth. I'd like to set up a solo 401k in my side hustle. Remember, one in three Americans have a side hustle, which means they can have a solo 401k too. We have a special right now at KKOS when you set up a solo 401k or the Roth now you open up the world of self directing. I would rather have that conversation before I go back and max out. So matching out. Sit back, have a little huddle and go, hmm, maybe I'd like to self direct in some alternative investments and use my Roth and use a solo. Oh, I don't. Okay, now I'll go back and Max.

Yeah?

Did I get you?

I love that. And it was in congruence with what I said.

You said max first.

Yeah, because then I say. But I say if you have the ability to do a solo 401k, then you match it out, then go match and go do your solo 401k, whatever.

But I can live with that.

That's the thing with the solo K, not everyone can do it. The solo K. Let me say if you are self employed, I don't care if this is your main hustle or your side hustle.

You.

You're self employed with no employees. Hands down, the retirement account you should be using is a solo 401k. You could put over 60 grand a year into it your spouse can be included on it. If they're involved in your business and working there too. Together you could be putting over 100 grand a year in. It's fricking awesome on how it works. It's not a complicated structure like some of these pension plans and DB plans you may have heard about to put a lot of money in. And you can also self direct it, invest in the stuff, you know. Of course, we got our directed IRA podcast with lots of content on how to do that. But think about the solo K. Any of you self employed, no employees?

Okay. All right. Okay. I like the order and we're good. Okay. Now I get to go back and choose one of mine. Okay, we're on time. We're both going to get maybe one more. Okay, I'm going to go with another retirement thing. I'm going to go with number 12, which is Roth conversion. Okay. So folks, the old rule was you can say, oh, I've got some IRA money over here. You look at your bracket, you're like, I've got some stock losses, I've got some off. So many of you could maybe harvest some stock losses. You're like, I'm not buying that stock again. I'm going to sell it. I don't have a wash sale issue. I'm not going to turn around and buy that stock again. So harvest some of those losses and what do you do with those losses? Offset maybe some Roth conversion. Take some of your traditional IRA money and convert it to Roth. We call it chunking. You don't have to do all of it, just do a piece, do a little bit, stay in your bracket, pay the what you're going to pay in tax, get it to a Roth position, you'll never pay tax again on it. You can rip off the band aid, but you have until December 31st. If you don't convert to Roth by December 31st, that chunk is gone. For this year of any sort of conversion, you used to have until April 15th to say, I'll undo it, but no more. It's by a drop dead date. 1231. Do you like it?

I like it.

Anything you want to add to that? No, no.

I mean, I think the, the Roth conversion is about saving taxes in the future. So you might be like, ah, that's a tax. It's going to cost me money tax wise. Yeah. But in the long haul, in 10 years from now, when you look at that Roth account that you converted, you're gonna be like, that was a genius move. The account's Bigger. It's grown over time and now that money is growing and is going to come out totally tax free. So.

And it's a year end tip because you have to do it by year end even though it might not save right now. Yeah, it's going to save you.

And one other one I like to do with people doing a Roth conversion. If you're like, man, I got 200 grand, let's say I want to convert from traditional to Roth, but I don't want all 200 grand in 2022.

Okay.

One easy way to do it is let's do 100 grand now. Let's do 100 grand on December 1st. We can get the whole thing converted. You're not having to worry about breaking it up over multiple years and months and months and months. We're just doing it right now. We're in a 30 day window. The whole thing's Roth, but we're straddling it over the tax year here between December and January. So we're hitting 2022 and 2023.

Okay. I love it. All right. Okay, Matt here, let's go back to our list. All right. Okay. Which one you want?

I want to talk about doing an S election.

So a retroactive selection.

Yes, retroactive number three. That can count in 2022.

Give us the, the case study of when. What this. Before we talk about what it is. What, what's an example?

Let me give you the easiest example. Let's say you're a business owner with an llc. You started an llc. You've been, you got side hustle or main hustle, I don't care what it is. You made some money this year. You're like, gosh, I made like 50 grand this year after expenses. And you're thinking, what type of entity structure should I, should I maybe have done an S election? Well, remember, as an LLC, you're paying self employment tax on all 50 grand

for many people don't even know what to ask. Yeah. They're thinking, oh, I did the right thing.

I did an LLC.

I made 50 grand. This is great. Little did you know. Yeah.

That LLC is not saving you taxes. Just so you know, you're going to get taxes if you didn't even have an llc. It's the same thing. It's just flowing on to schedule C on your personal tax return. The S selection though, is the entity of choice for every frickin small business owner. Mark has one, I've got one. All the cool kids have one. You should have one too. And your LLC can turn into an S corporation for tax purposes by what's called an S election. Now, this works for this year. There's a retroactive rule. There's a rev proc on it. Our office does this all the time with clients that'll let it count for the year 2022. So you can get that going. Do the S election. It'll still work for this year 2022. You're going to need to start doing some payroll and get on the ball though. All right? This is a key factor in doing the S selection late in the year is you got to get your crap together now. But it could be a great tax strategy and then you're the right tax structure moving forward. You're an llc. Taxes and S Corp, which is what every small business owner. Excuse me, I get emotional on this. You know, every small business owner making 40 grand or more net income, you've got to have an S corporation. It saves you on self employment tax. You basically get to pick do I want the tax structure where I pay less tax or more tax? And if you're picking anything else besides the S corp, you've chose the more tax structure.

I love it. I love it. On this note of the S election, some of you were like, what the hell did they just say? That was so confusing. I'm an llc. I've got this side hustle. Some of you could have driven uber and made 40, 50 grand this year. And you're like, well, that's how you do it. There's nothing else to do. No, there's something you can do and you're going to have a rude awakening come April. So if I can just beg of you, please pay for a consult for just an hour with one of our tax lawyers and say I heard on the podcast I might need an S election. If you don't believe me that that could save you, go to my YouTube channel or go to YouTube and just type Kohler LLC to S Corp. LLC conversion, Kohler. I've got multiple videos out there. I explain it on a whiteboard so you can get a little bit more understanding of why this is so powerful. Every dentist, landscaper, electrician, realtor, contractor, developer, a cpa, attorney, dentist, chiropractor. We're all S Corps, Uber drivers, Turo side hustle, consultant, ebay, seller, affiliate program. We're all S Corps. Once you're making 40 grand or more and you say, well, some of you accountants out there might be freaking out going, oh, that's way too aggressive. No, it's not. I Go to every reasonable comp CE in the country. Every year I write on this, I talk about it. I've got prior IRS agents as partners. We've been doing this for 20 years. I have never, ever, ever had a client in 20 plus years audited under a reasonable comp argument. Ever. Now, we are going to find the right amount of payroll. We're not going to be too aggressive, but there's savings clients leave on the table every freaking year. And way too many accountants are too conservative with the stick. You're not going to finish my sentence?

I mean, I don't know, where are the sticks now? Where and where are they putting it?

Up there. You know what? It's up there. Okay. All right, so I like your retroactive SL people. Look into it. If you're an LLC and not an S Corp made more than 40 grand.

And you know, if I don't want to sound political here, but even Joe Biden did this tax strategy and had an escort and saved doing the exact same thing every other small business owner can do.

Absolutely. It's my turn, right? It is your turn. We got. We both might get one more in. So I'm going to see people. This is why I need you to look at my workshop this weekend. It's online. It's a virtual broadcast. 400 bucks. Simple, cheap, easy. It'll be recorded. You can watch it for the rest of the month. You could buy it on even Saturday if you're. And you can watch the recording of Friday. We're not going to have time to get into the health savings account. Maybe buying a truck or a car before your end, shifting income or expenses, establishing payroll levels, paying your spouse, which

isn't this the last year for the 100% and all the bonus for buying an auto. So this is the last year. If you were in the market and you're wanting all the bonus depreciation and additional write offs. It's going to, it's going to go away in 2023. This is from, you know, when Covid and they were trying to juice the economy, they threw in some if, if

my $400 virtual broadcast doesn't save you 10 times and then that I've, I've screwed up. So, I mean, literally, you're going to love the workbook. 65 pages. Okay, so, but real quick, on this podcast, let me just say I'm going to go with. I got to go with the board meeting. I love the board meeting. Number five year end tax tip. Everybody listening today. Everybody can do this. You don't have to be rich, you don't have to be big small business. You can have a side hustle, hold your own board of directors meeting. Your own board of advisors meeting. When we set up an LLC for a client at our law firm, we always ask, can we have a board of advisors? Is there two to three, five people in your life that you turn to for advice? Some of you are like, well, LegalZoom didn't ask that. That's right, because it's an online entity. Set up these doc preparer type companies that are not real lawyers. And you're not meeting with a lawyer. You get what you pay for. At our firm, we make sure that you have a board. We're very affordable. We make sense for so many small business owners. You have a board, you can have a meeting at around the holidays, right off travel to bring in family for that board meeting. Your own travel to go somewhere. Could be in another country, it could be in the U.S. i can't write off 10 days in Italy, but we can write off a day or two somewhere. Having your board meeting, talking about your future for 2023, getting the kids involved again, putting family on payroll, talking about your plans. We have a company maintenance program where we give you 25 questions to cover in your board meeting. So we have so much more on that. We call it the company maintenance program that have your board meeting before you're in. Write off your dining and travel. Dining's 100% this year, still goes back down to 50 next year. So dang it, that's number five. Number five of the 15.

Okay, I'm gonna hit number seven. This might be my final one. Pay your spouse. Now, we're not talking about mail order brides and buying a spouse. We're talking about paying your spouse. Now, I want to say a couple things about this because it's all. This is a common misconception. First, we generally don't like to have your spouse paid out of your business. Don't worry about it. And some people are like, well, but what about if I want to get them on Social Security? It doesn't really help for that. Don't worry about it. There's something called the spousal benefit. If your spouse doesn't work, they're going to get Social Security anyways, so don't worry about it. Now when we do like to pay the spouse is when you want to add retirement account contributions form, particularly solo 401s. So in order for your spouse to make 401k contributions, which you could do in your own solo 401k. You must be working in the business. So they're going to need payroll. This is a year end thing. You got to be on because your W2s are due as January 15th. So you got to be getting it done right now, adding them on for payroll in the fourth quarter. So consider paying your spouse if you want them to make retirement plan contributions. And these are always one of the big ones, retirement plan contributions, where again, think of the Solo 401k if you have it or if you want to set it up. Now, we are still doing them in the law firm. We're setting them up still for 20, 22. You can get it set up. You can be doing 60 grand in contributions for yourself and for your spouse if you added them to payroll. Now, I'll say IRA contributions, by the way. You don't need to add them to payroll for that. Yeah, they can do a spousal contribution. There's a rule for that where even if they don't have income, they can use the working spouse's income if they don't have any other earned income. So there's some rules around that with IRAs, but for the 401k and the solo K strategy, got to get them on payroll.

Okay, which brings us to the second reason why you would pay your spouse, which may be for writing off medical expenses. There's a strategy of backdooring in your medical expenses to be completely deductible under what's called a health reimbursement arrangement or a 105 plan. So if you are married, it's very simple and cost effective to add a sole proprietorship to the mix, which you might be using to pay the kids. Anyway, part of the study we encourage you to do if you have kids under age 18, listen to those podcasts, watch the videos, get a consultation. Hopefully many of you are like, I need a consult to go over five or six of these. That's right, do that where the links down below. Call the law firm. You can meet with one of our tax lawyers and go, I just need a trifecta. We have a full trifecta, comprehensive consultation. You'll spend over 1,000 on that, but tax deductible and get a plan for the whole year and go through five or six strategies. But anyway, the health reimbursement arrangement's a good one too.

Yeah. What I'll see on tax planning is some of these strategies may not work for you, but it's going over our list of 25 plus strategies. But you might pull eight of those 25. And they work in your situation. And so a lot of times when you're thinking of tax planning or you hear stuff, yeah, that doesn't work for me. There's ones that are going to work for you. You've got to find the ones that work in your specific situation. Your income, do you have business ownership? Do you have rental properties? Do you have family, do you have kids you can pay or retirement contributions you can make for spouse or kids, all these things. But once you get that plan for yourself, and I like what Mark said about doing a comprehensive tax and business consult with one of our tax lawyers or whatever professional you can get that friggin knows what they're doing. That plan you do every year. And you just got to worry about picking up a new strategy when things are changing. But that is tax savings every year. But if you don't get on the ball and you're disorganized about it and you're trying to do this on April 15th or October 15th when you're doing your taxes, it ain't going to happen. Your tax preferences aren't going to help you. This is the best time to do it. You can actually take action now. It can save you in 2022. And you have a plan you can do every year that'll save you taxes every year.

Man, I wanted to say something in that and you just brought it around. I can rock my world just feeling it, you know, you had me. Hello. Really? Did I just. Renee Zagwiller. She's adorable. Yeah, she really is. Yeah, everybody loves Renee.

Yeah.

Okay.

Was I Tom Cruise then in that scenario? I was. You were Renee and I was.

I guess I was Renee because you had me at hello. So. Okay. That's not a bad thing. Tom's. Tom's. He's amazing. Yeah. Gosh. I did want to say more, but we'll leave it at that.

I think you don't want to follow that, huh?

No, I'm here. We're going to add something to it.

Sinatra just came and sang and they like passed you the mic. You're like, have a good night, everybody.

Yeah, drop the mic. Okay. We did start with Matt's. Matt got number one and we got three minutes left. Okay. Okay, so I get to choose the last one.

Hot take.

I'm going to go with the health savings account. We were just on the hra, which is the HRA for your spouse. I wanted to elaborate on that, but we just don't have time. So I'm going to least throw out the hsa. This is number nine. Oh, and I remember what I was going to say. Let me write this down. Okay, okay, I'll finish with that. My conclusion, number nine, the Health Savings account. You can contribute to your Health Savings account up until April 15th. Anybody that knows Health Savings Account rules are like, why is this a year end tip, Mark, I can contribute to my HSA up until April. What's the deal? Well, if you want an HSA next year, you have to have the right type of insurance in place by January 1st. Well, in 16 days, December 15th is the enrollment deadline for all of you entrepreneurs out there that are buying your own health insurance for next year. Some of you are on an HRA plan where the company reimburses you for choosing your own medical plan. You might be able to go into your company and say I elect to change my plan. Starting January 1st, you may be buying your own plan. The deadline is December 15th for open enrollment. And go engage with a health insurance agent or go online to healthcare.gov or whatever your state platform is. Choose a high deductible plan that allows you to build the most incredible well kept secret in tax planning. And that is the Health Savings Account. It's like a supercharged Roth. You get a tax write off, it grows tax free and comes out tax free. And you don't have to wait till you're 59 and a half. You just are pulling out money tomorrow for any medical expense under IRS Publication 502. And it is a huge list how we can even write off the drug rehab you paid for last month.

Yeah, it was confidential information. HIPAA violation right there.

We need to cut that out.

Yeah, that would be, you know, would

be if you had paid for drug rehab last month, but Matt did not.

You know, I mean any male reproductive drugs you need to take also if you have a prescription for it.

Yep.

The IRS is subsidizing that.

That's right. And it is the best tax free growth you can bank on. Okay, now that was subtle enough. I don't think we have to cut that out. That was very. That was subtle. Okay, okay. For some of you, you may have got that, but you have to really be paying attention to the show. It's the little things.

Yeah, yeah. You gotta, you gotta focus.

Or the big things.

Yeah. Or rewind there, you know. Okay.

So that Health Savings account is a huge strategy. I've got lots of videos on it now. I can't say anything now. It's a really strategy that will improve Your life.

Let's just say it makes everyone satisfying.

Yeah.

Okay.

There we go.

Okay.

Man, we are going down fast. Okay, so with that said, do you want to have a summary point on year end planning?

No, I just, I made my summary point so you know, back on the last one, let me just say. Just do it.

Just do it. Get a consult, talk to an advisor. If you don't have one, you're whoever's your tax advisor in your life. And I'm launching a certified tax advisor program that comes out January 1st. We are pre selling starting tomorrow. My new website comes out live tonight. I am so excited about it. And we want to educate tax advisors around the country so that they have practical resources they can use. This is the type of stuff you should be talking about with your advisor. If you don't have a good advisor, come to the law firm, get your plan and then we'll help you in 2023. We just want to be on your team. I did. Here's my summary point. Matt threw out 25 tips. I threw out 15. Let me just summarize with this. I have an ultimate tax strategy guide on our website. You can download it at the law firm or the accounting firm is 30 Strategies. We've been pulling from our 15 year end strategies which are different. That's going to be part of my workshop this weekend. So we've got a lot of lists. And you know what? Everybody should have a list. List of things to do. And we've got a list. We got a list for you.

This is the focused year end list.

Yes.

Which, this is the stuff that it passes again. April 15th, your counseling back. I can help you for 2023. But what do you want me to do?

Like back in December, you should have done this.

Yeah. Invent a time machine. You get a Delorean and plutonium.

Yeah. I mean I love the flux capacitor. Everybody needs a flex. We are your flux capacitor. We are going back in time right now, saving you. Okay, well, love you. Thanks everybody. Enjoy the holidays. Be safe. Get out there. Buy tax deductible gifts for your family members who are on your payroll. Wow, was that deep. Did you hear that? By tax deductible. Let me give you an idea.

Laptop.

A cell phone or a laptop or an iPad is a business tool in your company for your employees to use in helping you succeed. That's a tax write off. If they open it up on December 25th, so be it. That's okay, Clark.

That's the gift that just keeps on giving.

I wanted to give something for you, Matt. Something real special.

All right, thanks, everyone. We'll be back next week with another amazing episode, the Main Street Business Podcast. Till then,

dig yourself something real nice.