$80 Billion For The IRS? - Inflation Reduction Act | Will It Cost You? - LIVE Q&A

Well, I'm going to give you some kick ass sexy tips. Taps. I don't know what that meant. And I'm here with my amazing co host of our podcast, the Main Street Business Podcast, Matt Sorenson. Welcome, Matt.

Thanks. So excited to be here talking about taxes and a new bill. Oh my gosh.

Yeah.

Wow, this is great.

It's crazy. So if many of you didn't know and you need to watch this, we'll get right to some key points in the first five minutes, then you can go on. I've got a ton of giveaways if you can stick with us. We're also doing open forum. Any questions you have on tax and legal topics related to this crappy bill or anything else, we're here for you.

Tell us what you think.

Yeah, tell me what you think. So we're going to make you some money today. If you have a side gig, a small business, you're doing Turo, driving Uber, selling crap on ebay. You're an influencer, you're an affiliate marketer, realtor, dentist, whatever. We're here to make you money today, saving you taxes. We're going to tell you about this bill. Give us a quick rundown of this bill if you haven't heard about it, people.

Yeah, I mean where, when it started, this is. Yeah, yeah, this is past the Senate. All right, so we're still in the sausage making process right now. It goes to the House tomorrow. So you are literally on the cutting edge of this with us today. And of course we had the tie breaking vote of the Vice President having to vote to cast to pass this in the Senate. Now it's expected to pass in the House. Now this has been coined Inflation Reduction Act. I don't mean to have a spoiler alert here, but there ain't much to talk about. Inflation reduction in this bill, not what it's about.

Yeah, let's name it something that has nothing to do with that. Sounds great and yada. Yeah. Okay, so Senate passed it. We're expecting the House to sign it essentially with not a lot of modifications. Tomorrow when I say the House sign it, the House pass it, then Mr. Joe Biden will sign it. Post haste, whatever, and we're off to the races. Now two things I've got to do a little administrative note here and then I want to make a point about bills in general first. If any of you see on the Facebook feed here some bozo trying to use my face to tell you to talk to them about Bitcoin or I got the best deal on bitcoin or I got some, you know, scam thing. I am not commenting on the chat. So if you see my face with some comment or you see someone else's face talking about I got the best deal on bitcoin. Check this out. Do not click on it. It is a bot. It is a scam. Stay away. We are looking at our comments that are legit. We want to know questions you might have about your small business and making money, protecting it, saving it. So just a little admin note now on these bills, I want to just say this. Where the government giveth, the government taketh away. Every bill has to like reconcile and say, you brought in this.

Giveth is hard. Yeah, the giveth is really hard to find here. I see a lot of the taketh away, but we, we really dug deep to find some giveth in here for you. And there's some. It just ain't much.

Yeah, they're going to spend about 500 billion and they're going to try to raise 500 billion. They want these balanced bills. So, like, oh, you want to spend that much? Tell us how you're going to make that much. So we'll tell you where they're going to make money and where they're going to try to give away money. You may be like, where's my check in the mail. Trust me, it ain't coming. But we're. We're going to do it. Okay, so let's just dive into this then. We're going to do Q and A. I want to be able to scroll through those. We got James in the studio and Caitlin and Diane want to say thanks to them helping with the behind the scenes. And I can scroll up and down when the time's right here. There we go. Look at that. So when we will get into these questions, you people are posting. We appreciate that. Matt, why don't you go first? Okay, let's do this. Yeah. The bill is going to tax corporations and it's going to raise money through auditing, you and me. That's how they're going to make money. Then they're going to spend it in a few ways. And there might be some golden nuggets of strategies here. So we're going to try to give you maybe three or four. I don't know if that. There's not much here. It's mostly for big government spending crappy things. So, Matt, you go first. What do you got exactly? Give us a good tip.

Yeah, this is a lot of taketh. There's some giveth here, there's this. A lot of taketh. Now the nice thing for us, I'll say, I don't love bills that just take. Right. And they're just taxing more. But this is mo. This is on large corporations. There's not taxes on small business. There's not taxes on individuals. They are really targeting businesses that have a billion dollars of profit or more. They're implementing a 15 minimum tax. Now, I know that's not awesome news, but at least it's not taking from most of us, okay? Like, build back better than what we had last year. That was gonna hit a lot of our pocketbooks.

Okay.

This is really aimed at really big billion dollar companies in terms of the

tax, which, the bad news, though, which I may add, there are people's comments, and we see it too, where they're like, that's not helping inflation. You mean Walmart's going to pay more in tax and not pass it along to us at the register? Trickle down, folks. Trickle down.

Yeah, yeah. There's nothing here to help reduce inflation. That's a, that's a, that's not even debatable. No one's even trying to claim that anymore. They've given up. Even those people that put the damn name on it. Now here's what's scary though. This is where you need to be concerned for small business owners, entrepreneurs, us hardworking Americans out there trying to live the American dream. There's billions, 80 of them, going towards the IRS to enforce taxes. They're coming, Matt. The IRS is getting resources they've always wanted.

Yep. We've got some little tips here on energy tax credits and vehicles and blah, blah, blah. There's a few little cool things in here maybe to help some of you.

Some of you could benefit from these. Some. There's some. There's something here.

Yeah, and we'll get to that. But the biggest takeaway is if you ever watch Scooby Doo back in the 80s, you know, as a kid on Saturday mornings and little Scooby would be like, but there's a 80 billions. They are doubling the size of the IRS. How do you think the IRS sold this to the Senate? They go, hey, you give us 80 billion, we're going to bring in 160, we'll bring in 200 billion. You give us some money, we're going to go audit some folks. That's how they got this. They are doubling the size of the irs. That's where this is going to affect you. And I'm going to give you before we get off here, 10 ways to avoid an IRS audit. I'm going to give away some books, I'm going to give away some cool stuff here, but we're going to do 10 tips on how to avoid an audit. Because they're coming. They really are. Yep.

Yeah. Your likelihood of being audited now has just gone up exponentially than what it has been in the past. I hate to say it. Tax lawyers are probably drooling over this. You know, the ones that like to do those audits. We don't. That's just no good. Even when you win an audit, you've still lost the game. So. So we'll go over those things, make sure you're ready in that, in that instance of what happens to you. But I did just want to say though, for small business, self employed people, those of you with the rental property, I mean, I was even looking through this for myself. I'm like looking through this bill for myself. I'm like, what's in here for me? Nope, nope, nope, nope, nope, nope. It's just, it's a lot of stuff in there, but is for government, it's for weird energy producers, it's for nonprofits, it's not for individuals. There's some stuff here we'll hit on electric vehicles, maybe some solar on your home, maybe you small business owners. By the way, there's one cool one I was excited about, the commercial clean vehicle credit.

Okay, let's give our cool. I hate listening to podcasts and seeing videos where they don't get to the meat of it as fast as possible. So we're gonna do it. Let me give, let's. I'll give a quick tip. Matt will give a quick tip of maybe something that you might purchase find helpful. Then we'll go into our 10 Ways to Avoid an audit and then we're just going to answer questions for you guys. So let's nail it. The first one I have is what they're calling, well, what is called. It's already been around for years is the investment tax credit. This is for solar energy. They've increased the percentage that you can get a tax credit for. I'll tell you how it works in a moment. It's been around for years and it was going to end in the the end of 22 or the end of 23. It's now extended through the end of 2024. So we've got this. It's. They just extended it and increased the percentage a little bit. What it means if you spend ten grand on A solar type of it has to be your home in the United States. The right type of solar. You can read all the rules. Maybe we'll do a podcast on that someday. But if you get a solar setup on your roof, brand new, you have to buy it either when you buy the home or put it on later. You can't buy it used and get it or buy a home that's already got one. So you install this. It's original. You can get 30%. So you spend 10 grand. You get a $3,000 tax credit against any taxes you owe on your tax return. And if you already made a deposit or had it withheld from your paycheck, you'll get a refund. It's not a refundable tax credit. It just goes against any tax you owe already deposited and paid, so they'll give it back to you. So don't think it's a refund, per se. It's just your taxes that you owe. So you get a 30% tax credit. Now, my cool tip with this. That's fine. You want to go put solar in your house? Knock yourself out. Here's what I think is the cool takeaway, is that if you have a home office, that's at least 20% of your home, which might include your garage, little storage shed for supplies, equipment. I don't know what type of business you have, but if you have at least a 20% allocation of the space of your home to a home office, one or more home offices, then that solar package, the 10 grand that you just put on your roof, 20% of it goes towards the home office piece of your house, and you can depreciate it with bonus depreciation, all in one pop that portion. So you get a $3,000 refundable tax or $3,000 tax credit, as I just explained, with a $10,000 solar project. And then you would. You'd take 20% of that, and then you get 30% of that, then you could depreciate the rest, and we could do the math. But the point is, it's a pretty cool tax deduction on your small business if you have a home office. If you don't have a home office, you just get the Trax credit and you're done. So I thought that was kind of neat for those that have a small business, not much. Again, we told you this isn't great, but it's okay.

So, yeah, let me hit one of the big ones that's got a lot in the. In the news, which is the clean Vehicle credit, the EV credit. This is one a lot of people have used in the past to go buy an electric vehicle. And there's been some limitations on it in the past because like Tesla people, you buy a Tesla, you don't get the EV credit because they only got to do 200,000 a year. They max out. No one ever would get it. And so some of these smaller manufacturers or large manufacturers that came in doing EVs like Ford and GM and Hyundai and Nissan, they weren't selling enough. So those are pretty much only people that are getting the EV credit. Now what they've done is they've removed the limit on the number of cars manufactured, which is nice because now it doesn't matter. You know, you don't have to worry. Did the model I'm buying, did this manufacturer exceed already on the amount of credits that people could get when buying this car? It's total nightmare. Totally dumb idea. So that rule is actually gone now again, where the government giveth, they taketh away. Here's what they did. Here's what screwed up. They basically put a high income cap on it now and said, nah, we're gonna remove this. But if you're high income, you ain't getting the EV credit. By the way, high income is 150 grand a year or more for single, 300,000 or more if you're married. No easy credit at all.

Who do you think's buying Teslas? Their price totally went up this year due to supply chain. Who the hell knows? But I mean like, seriously, they take, they're like, okay, we'll take the cap off and everybody can get this. But if you make too much money, you don't get it.

Who the hell?

Yeah, whatever.

So now there's a high income cap on the EV credit. Now if you're below these limits, you're both 300,000 joint, 150,000 single. This is good. Okay, you've got this EV credit. It's a lot more available to you now. And there's another little giveth here now, used vehicles. If you buy a used ev, there's a new credit for that which previously wasn't there. We can get up to a $4,000 credit. The new purchase is 7,500 max credit that you could get. But now there is a credit for used. But now they've like, they ratchet the income down again to say, oh, only for 75 grand or less. Single, 150 or more married. So they're trying to throttle this to really not benefit. High income People, they're trying to, you know, this is, this is the Democrats bill. You would expect something like this. I have to say it. I don't want to be partisan, but that's reality. So that's where we're sitting right now. Now there's a back door, though, Mark. I got a back door for business owners.

Well, okay.

I don't know if you want to go there.

No, that's okay. I'm going to just let what you said fly. I don't even want to comment. So you, you run.

I should say we got a loophole. Let's make say that I, I think

loopholes a little more appropriate. We'll stay away from the back door strategy today. Okay, so there's another loophole. Now. I actually, Matt shared this loophole before we started. It's a good one. So.

And we're going to be looking into this one further when we see what happens tomorrow with the House bill. But there's something called the commercial clean vehicle credit that also has a max of 7,500 bucks tax credit as long as the car is less than £14,000. If you got more than £14,000, we're talking like a semi. This is like the Tesla semis that are coming out. You could go over the 7,500 bucks, by the way. But for all of the rest of us, less than £14,000, 7,500 maximum credit you can get. Now the cool thing about this one is has to be a commercial vehicle. Right. This is not personal use. But if you're a contractor, realtor, Uber driver, you use the car, you use a commercial vehicle. There's no income restriction here. There's no income restriction. 300,000 married, 150,000 single. So we could be using this as a commercial purpose vehicle that getting electric, getting the credit and kind of just like this is a little loophole strategy for those business owners. That's why we're always like, start a small business. A lot of these tax strategies come into play when you have a small business. This would be classic example.

Yeah. And you know, here's the. Where we don't know yet. Let's say you're a Realtor and you have a car or an SUV and you go out and you, and see this credit is if you go buy one, probably not going to qualify with a lease.

Correct.

And typically it's not going to qualify if it's used. But again, they're trying to relax those rules. So there's a few details. And let's say it's only 80% business use. Do you get 80% of the tax credit or does it have to be 100% business use right now? The bill is not clear on that. A lot of times regulations come out later. And tell us one other side note on all this. Remember how we're trying to get some help with inflation right now? All, everything we're talking about takes enough. Takes effect 11 23. This isn't even stuff you get to do now. This is stuff for next year. What the hell.

The EV credits do apply through 2022, by the way. They're, they're making them retroactive, it looks like. I don't know how the heck they

do that, but maybe they're trying to come back. Yeah. Okay, I'm going to give out. I guess one last strategy here that all of you should know about. When you go to Home Depot or Lowe's and you're going to buy a water heater or you know, something a little more efficient in the house, there's sometimes a little label right there that says this qualifies for the non business energy property credit and usually it's a 10% tax credit. So if you bought a thousand dollar water heater, you'd get $100 tax credit on your tax return. Well, they've increased it to 30%. That's cool. And they said it used to be a $1,200 lifetime credit. So once you used up your $1,200, you don't get to buy anything cool anymore. Now it's $1,200 annually. So you can get up to $1,200 in tax credits every year on 30% of the purchases that you make in energy efficient crap like water heaters, heat pumps, air conditioners. The list is fairly long, but you

can't spoiler well, high income limitations. Right.

I've been looking for that. I haven't seen a specific income limitation on that, have you?

Yeah, there's some phase outs for it on medium to high income. So the benefit goes down based on your income level. I don't have the exact schedule here though.

Okay. Oh, well, okay. I want to get. We've got lots of questions flowing in. I want to get to those. Let's just quickly, if you'll folks will allow me, I want to do 10 ways to avoid an audit. I cannot emphasize I love that Matt brought this up initially too. The biggest takeaway of this bill is they're doubling the size of the irs. I thought. What was the name of this bill I wanted to call it Environmental Boost and IRS Funding Act. Yeah, it's really what it is. Yes.

Clean Energy and IRS Funding Act. I mean, that's what's happening here.

Yeah.

And corporate tax hike, which is fine. The big billing, corporations pay a little tax. I mean, I'm not crying about it, but that's not inflation reduction.

Yeah. Homeland Security gets some money. DOJ gets some money. There's a laundry list of federal agencies that get money in this. The one that I thought was funny, Matt, I gotta say this. The gao, as I was. Some of you are like, you really read the bill? I read a lot of it. I'm. It's insane. But the GAO oversight, that's the Government Accounting Office Accountability office, they get 25 million just to make sure the money is distributed properly. 25 million. You know what I can do with 25 million? I mean. Okay. All right, so let's go through these 10 tips. All right, people, paper and pen. And my team, if we could put this in the description, that'd be awesome. So if you want to kind of just shorthand these, I'm just going to read them off. Matt, do you want to make a comment on. Do you want me to stop halfway through? Comment on.

Yeah, I'm throwing some out. You want to give. Give two or three and all. I'm going to throw some in, too. Maybe you'll hit them. Maybe.

Okay. No number. Well, okay, I'm. You know what I'm going to do? I'm going to list them off. We'll put them in the description. And then, Matt, if there's something that I didn't say you want to add to feel free, I may come up with something, too. Number one. Number one way you can get audited is not filing your tax returns on time. Now, you can extend. Extending is great. You actually reduce your chance of an audit. But if all of you don't file your taxes on October 15, coming up in what's eight weeks, whatever it is about your chances of an audit go through the roof. Make sure you file. Even if you can't pay, you don't file. Not good. This is like you go out on a date, you give that sexy new relationship. You're, you know, they. Your chair, phone numbers, and you don't call them, you ghost them, what's going to happen? You know, they're going to. They're going to be like, assume the worst. This is when you get your car keyed, you know, and this is not good. So the irs, they just don't want to Be in the dark. Don't ghost me. You ghost the irs. They're going to audit you. So file your tax return even if you owe. Number two, be aware of your industry averages and common expenses. For example, if you're a realtor, you're going to have high mileage. If you're a doctor, you're going to have high rent. If you're a realtor, you're going to have low rent. If you're a doctor, you're going to have low mileage. Your industry has averages and the IRS knows that. Their computer system takes your, your industry code and compares you against another million realtors and says, why are you writing off so much rent? That's weird. Realtors don't have a big office. No brokers do, but not the realtor themselves. Number three, attach additional statement statements and comments anytime you can put more information in your tax return, the better. Because if you leave them hanging and there's questions, you're going to get audited. Number four, avoid schedule C. Avoid schedule C, as in Charlie, we hate schedule C. It's highly, highly audited by setting up an S Corporation or an LLC. Two Member LLC where you file a 1065 or an 1120s. If you're an S corp, your chances of an audit go down by 1500%. So by setting up a corp, I have clients that have a rental property and they'll set up an LLC with husband, wife is 5050 owners just so they could not worry about an audit. You put on a schedule C or schedule E. Big time audit. Number five, issue your 1099. If you're paying subs and you want to take a write off, you better give them a 1099. So anybody that shows up at your business and goes, hey, pay me under the table. Bull crap. You can pay taxes like me too. Give them an effing 1099 or don't hire them because you got to issue 1099. Their iris is hitting hard on those people trying to play under the table. I mean, I should go nuts on my, should I go nuts on my, on my farmer's market. I went to a farmer's market the other day in California and I was, it was so cute. This little, you know, town square and little farmer's market. We're walking around getting stuff. It was so cute. And I was like, oh, I want some of this jelly or I want some of this bread or whatever. And half of them, I'd walk up and they'd go, I go, hey, you take Apple pay right they're like, no, we're cash only. Oh, really? And then of course, the condescending, rude Martin goes, you've never heard of Apple Pay? It's kind of cool, you know, you got a phone. I see your Apple phone. I can pay you with Apple Pay right now. And some are like, I don't do that. Why don't you take Apple Pay? Well, our owner doesn't know. Your owner is a criminal because you don't want to pay taxes, so you want to get paid under the table. So screw you. I'm going to the next booth. I go to the next booth. Do you take Apple Pay? No. Okay, well, screw you. You're a criminal. And I go to the next. Oh, you take Apple Pay. I want to buy your stuff. I don't care what it is. Even if it's beeswax, I'm buying it. So, I mean, I just. These under the table. I'm sorry, I get so mad.

You know, the under the table, let me just say too, is if you're paying people under the table, you are not able to expense it.

Yeah, yeah.

You want to know what happens in an audit when you've paid people under the table and you say, well, I wrote this off. They're going to be okay. Who'd you pay? Yeah, I didn't want to tell them. They're like, oh, crap. I didn't, I didn't report that. I just paid them under the table so they didn't have to claim it as income. Well, you know what the other side of that is? You don't get a claim as an expense.

It's crazy. So, all right, avoid round numbers. This is common. I was working with a client this last week putting together financials on and if you're going to write off 1200 in auto mileage. $1200? No, we're going to write off 1100 $28. I don't know. Come up with some non round numbers, people. Round numbers garner attention at the irs.

Mark, is that number six?

Well, that would be number. Yes, number six. Number seven is file your payroll reports and do withholding. If you have employees. You get behind on doing withholdings on employees and sending in their money, you're going to jail. It is not good. So make sure that you're. It's not just an audit. Number eight, do not inflate the home office deduction. Take the home office deduction. But don't get too greedy, people. It's not that big of a write off. It's a great little Write off, but don't overdo it on the home office. It stands out on a tax return. Number nine, avoid taking excessive dining and travel. I mean, some of you may have like, 8, 10 grand in dining and travel, but you only brought in 15 grand. Let's tone that down. You brought in 150 grand, and you got 8 to 9 grand in travel and dining. Let's. Let's do it. Just don't look at the balance between you and your income. And then finally, number 10, do not stick your head in the sand. If you get a notice from the irs, you'd be shocked how many people show up and go, yeah, I've been getting notices from the irs, and here's the stack of them. I go, have you called anybody? Have you gotten some info, or. No, I'm just. I just was afraid to call. And it's true. You get nervous. I get it. But get involved with an agent, I mean, with an accountant that can help you or one of our tax lawyers, and start getting help. There's my 10 tips. Okay, what do you got? I love that.

I love that. Where you left off on. Don't stick your head in the sand if you get audited. Let me hit a few tips if you do get audited that are actually helpful to know, even if you're not audited, to know what the heck you're doing. And just think of this perspective of the IRS and how this process works. When you get audited, the first thing you got to keep in mind is, what is the IRS audit? What are they going to be looking at? Documents. Okay, Paperwork. All right? Your explanations of everything and stories of this and that, well, this happened. And, you know, they don't care. They don't believe you. They want to see paperwork. Now, there's two types of paperwork out there.

Paperwork.

You create your books and financials and the paperwork that backs it up. Bank statements, receipts, all that type of stuff. You need to have both. Now, some people can dig up all their receipts and their bank statements and everything and go make some financials that make sense. So when someone's at the irs, think like, okay, this is starting to make sense. I'm tracking this person. Actually look like they were doing this.

Right?

Right. But we run into clients so much that they can't get either one of those sides. Right. Or they get only one of the two of them.

Right.

You've got to get both sides of that. Right. Your actual financials, whether you're using QuickBooks or whatever you're using. I don't care if it's a spreadsheet. Whatever it is, it is accurate, it's correct, it balances out. It makes sense. Someone else could look at it. Your friend that's not even accountant could look at it and be like, okay, you made some money, here's some income. Or there's expenses for this and that. You know, these people, the IRS are not rocket sciences, rocket scientists. They're not even that. That sharp on tax stuff, but they do have a brain that they can look at this thing. Well, you know, you'd be surprised how much crap people send over the irs, and you're just like, I think they're going to go away. No, no, no, no. What happens is this is like, let's go back to the date example, Mark Cave. When you get audit and you send stuff over the irs, it's like, first date. The first stuff you send over, it's first impressions. If you work at the IRS and you see a bunch of crap come over that doesn't make any sense, what do you think? You work at the irs. You're thinking, this person's a tax. Tax fraud. Tax fraud. This is total garbage. It's really not. You're not doing any tax fraud. What's really just happened is you don't know. You just were sloppy and so you've just made yourself look like you're a mess, okay? Like you're trying to hide something almost. And always remember, the IRS is going to think the worst of you. So what? The first stuff you send over, you've got to be on the ball on that. We've seen clients over the years get audited and they come to us later. I remember the one client, they kind of just like sent over this garbage to the irs. And what happened next? Someone with a badge and a gun from the IRS showed up to this client's business who later come and retained us because, like, oh, crap, I got to really handle this audit now, you know? So be careful. Be on the ball when this comes. Make a good first impression on your documents and records. And then the last thing I just say on this is, be ahead of them. Be ahead of the irs. Do not miss deadlines in terms of them requesting information and documents. You start getting on their shiz list, so to speak. Be ahead of the game, be on time, be responsive. Get their stuff. Now. You're trying to. You're trying to look like the good guy. You're trying to get them on your side, okay? Don't be a pain in their ass.

Yeah, okay. I'M going to throw this out, people. You see, I'm multitasking here on computers and my paper here, trying to make sure we've got. And I've got questions here, Matt. I'm going to throw out a couple questions also. So many comments of people saying good stuff. Love your videos, the trickle down effect, everything here. Just thanks everybody for just being here. We really want to give back and make sure all of you walk away with a tangible benefit or tip today. And one of those is be prepared for an IRS audit. Be careful and those 10 tips will be in the description. I've got an article on my blog as well. Matt. One of the questions, this is a good one by the way. I cannot find my glasses. I haven't had glasses all week, folks. So if you see me squinting here, I'm just hoping one of them turns up. I've lost two of them. Okay, what sectors are they giving tax breaks to if any?

What I would think is really just clean energy. That is the only way you're gonna actually get money back. Just think of clean energy type stuff. Everything else is like you're paying more in or you might have a more chance of an audit. So maybe some energy efficiency stuff at your home, maybe some solar like we talked about. Maybe an electrical vehicle credit again, depends on your income. Depends on if you're a business owner. You can call it commercial. There's no specific industry like of small business owners. They're gonna see big incentives on this. Now maybe you are a solar company, you sell solar. Pretty cool for you. Okay, you got some, got a few more, you know, arrows in your quiver, so to speak from this bill that's been extended too because I think a lot of those solar companies were seeing the solar credit to expire in a year or two and they were a little freaked out. So that's an industry, I guess that was helped that has some small businesses in it.

Yeah. If you're in the environmental, if you're in the environment at all producing solar, wind or some sort of energy or producing products that are environmentally friendly or blah blah, blah, you're going to probably find something in here. Okay, I'm going to answer this question and bring one back to you. Matt. This is fights flights with Shane. Either flights or fights again. You know, it'd be nice if I could see. I'm ready. I'm already getting screwed by taxes. Okay, big takeaway for everybody here. If you feel like you're getting screwed by taxes, that's a thought or a feeling. I don't want you to have. I want you to have a thought or feeling of I'm in control. I've got power and control over my tax result. I want to be making money, saving money and have a plan that gives you a feeling inside of a lot more security and empowers you to do better, to make more, to take better actions in your life and get better results. So if you have a thought that I'm getting screwed in taxes, let's change that. So do a little more study, do a little more research. I'm going to throw this out. We have a comprehensive tax consult at our firm. You meet with the tax lawyer, we build a trifecta. We go through your last two years tax returns. Look at all the things you should have been doing. Every time I do that with a client, I find thousands if not tens of thousands of dollars and they're like, well, you guys are expensive. Yeah, we're 1200 bucks to do a couple hours or more going through and building a comprehensive strategy for you for your taxes. But then you feel empowered and you go out and do more and you really take the mindset of taking control of your life. And so I don't want you to feel that way. Listen to our podcast, Main Street Business Podcast. I'm going to give away some books here, my tax and legal playbook. Good stuff. Do some reading and you're going to feel more empowered. Okay, Matt, question from Shiny here. Are they going to tax your IRA now?

No. Thank goodness there's none of that BS in this bill. Like was in build back better. So don't worry. IRAs are fine.

We're good.

In fact, there's some other legislation coming down, Secure Act 2.0 that already passed in the House and now is going the other way to the Senate. That's actually got some great stuff in there for IRAs. We'll hit that one later. But nothing bad here for your your IRA accounts. And you know, I'd love that question. Yeah, and I do love the answer too because you know, always terrified when the House or Senate passes a new bill. I'm like, okay, what are they screwing up for our IRA accounts?

Yeah, I don't know that one. Yeah, I now here's another. I totally agree. There's nothing taxing IRAs. People keep investing and saving. Christian says, does a minor take over an UTMA account? And there's often called UGMA accounts Uniform Gift to Minors Act. So you forgot a G in there, Christian. U G tma. If they are not over the Age of majority in the state they live. How can a backup custodian be listed if not Christian? I'll be honest. The UGMA accounts, I'm not a fan. I don't think they do you any favors. The kids, when they hit 18, they take the money and can burn it, which they will do. If I was 18 years old and got 10 grand, what do you think I'm going to do with it? You think, oh, my kid. They're so responsible. No, they're not. No, they're not. They're going to blow it. What the hell. So let's talk about ways to help your kids save by using Roth IRAs, having penalties involved if they pull money. Setting up trust accounts, setting up covered L IRAs, 529s even, which I'm not a fan of either. But they're better than the Ugmas. So, Christian, really study up on what you can do to get rid of that ugma. Put it in a different format. Now, that's my take. I know bankers out there are mad me just saying that. But of course, I hate big banks, so they can suck it all right now. Okay, I'm going to go down here, Matt, someone says this, and I'd like you to comment on this. This is a concerning one. I'm withdrawing 50% of my 401k. What's that make you think about when you hear someone just say that I'm withdrawing? When would that even be okay? I mean, that's. Maybe they're 59 and a half, maybe they're not. What do you think?

Yeah, I mean, my first question is, why now? There's some obviously good reasons that you may do that. You could have a significant financial emergency, something unexpected, loss of job, you're just trying to pay the bills, medical thing that happened, you know, who knows? We don't know what's going on in your life. But remember, with a 401k, you can always loan the money out, too. You can take half the balance not to exceed 50k of your 401k at any time when that allows you to get it back in. And it's also not taxable as a distribution. So if you take that out as a distribution right now, you're going to pay tax. We'd rather you do a loan to yourself from your 401k which is not taxable as a distribution. And you got to pay it back over five years. And if you don't pay it back over five years, you get taxes of distribution. You at least Bought yourself some time to get some money out of your 401k to cover whatever financial hardship or issue you might have going on right now. So I try to stop, drop and roll, avoid the distribution. Look at doing the 401k loan. Almost every 401k plan out there, big company, small company, allows for a loan where you can loan money from your 401k to yourself.

And. And I think the person, now that I look at it go, I'm taking 50% out of my 401k. They're probably doing that. You were. They're probably borrowing from their 401k. Okay, they might be doing that. Which is 50% of your 401k or 50 grand, whichever is less.

Yep.

And so they. Now that you said that, the loan thing. But people, whenever you're pulling money out of your 401k, it better be life or death. We have so many clients that come to us and their 50s, 60s, 70s, they're scared to death and they wish they would have never messed around with their 401k and really bit the bullet and been tough on themselves back earlier, years earlier than pulling money. Be very careful with that, people. Okay. This is from Will Linemar for Hire. He says, I have a small business in Missouri. I've been through three different CPAs, all legit firms. Been trying to get my taxes done for three years. Do you guys work with people out of state? I'm going to answer that in reverse. Yes, we help clients from out of state. We are already at capacity for 20, 21 taxes. Deadlines in five weeks for businesses, nine weeks for personals. But stay in touch with our accounting firm. I'm also building a network of accountants and CPAs and enroll agents and EAs around the country this fall to help people that are looking for CPAs that understand our strategies and are using them. So stay in touch. Keep following us, please. But listen to what he said. I don't want to pick on this caller too harshly, but said, I've been through three different CPAs trying to get my taxes done for three years. People, if you give me all the crap I need, we'll have your taxes done in three weeks. Theoretically, I mean, we're busy. We got a pipeline of work to do. But sometimes you can go to a CPA firm and they'll have it done in three days. So for you to say, I've gone through three CPAs, been doing this for three years, and my taxes still aren't done, I say this kindly, but you might need to look in the mirror a little bit, because are you producing what they need? Do you have your crap together? Because that doesn't make sense. I mean, you give me enough money in your crap, we'll have your taxes done as soon as you need them. So something's going on there. And you may need to be careful about blaming the CPA firms and you may not like what they're doing, but that's not usual. So I'm sorry, just want to throw that out. Okay, Matt, this is from Robert. Can I lease my vehicle to my company to have my company pay the loan payment? How does that work on my taxes?

Robert? Yes, this is Robert. Oh, Robert, stop, stop. Don't do that. Thank you, everybody who's like, well, I want to lease something to myself or from myself to my business. Do you know what happens when you lease in most states? You pay sales tax. Why would you do something for yourself to pay sales tax? And also, why do you even need to do that? If you want to expense and write off the vehicle, it doesn't need to be owned by your business. There's no reason to get it over there. So don't. Definitely do not do the leasing thing. We've ran into people who have done that. They get on the Internet, they got some hairbrained idea that someone gave them, and then they have some state tax agency chasing them down because they then reported that they leased it. Oh, great. And now they're like, well, we want some sales tax on that. So don't get into that trap. Also, just realize you don't need to. You can still write it off. You write it off anyways. Whether you're doing mileage or you're doing. You're doing actual expenses, you're still going to write off that auto.

Yeah, totally. And Robert, there's. What I would recommend is please get to my website, markj.kohler.com hit on the blog and search. Just type in the search word auto. Every year I produce an auto article in January that gives you, I think, seven or eight ways to write off your vehicle, and none of them are you leasing it back to yourself. There's great ways to do it. You don't need to worry about it. Ivan says, can we talk about the increase in the energy credit? Well, Ivan, I want to say this to everybody here. There are 30 provisions in here on energy credits. Big corporate corporations, producers of energy credits, individuals buying stuff at Home Depot. So. And they're all getting either extended or changed a little bit. I don't. I think it Would take a half a day seminar to really vet every one of those credits. So, Ivan, you zoom in on what you're looking to do. If you're zooming in to look at buying an electric vehicle, buying a new water heater, putting solar on your house, getting a business electric vehicle, zoom in on that strategy and study it. Because we could be here all day trying to explain all of them and you'd want to shoot yourself.

So, yeah, and the rules are all different on every one of these. Like, you know, a heat pump, well, what's the maximum amount? What's the income restrictions? Does it phase down versus solar? The rules are all different on this. How do you calculate it? Is what's the income restrictions on it? Does it need to be new or not? Then you get over the vehicle credits and it's, is it personal or business? Oh, my gosh, it's all over the place now. I like how you said mark, zoom in on what you're already going to do. This stuff should be like, what maybe pushes you over the edge to do something. All these credits that are in here for energy stuff, this should not be stuff that creates ideas for you to then go do something because you still got to spend the money to do it. All right? This is. Then they're not giving you all the money back if you go do something. They're a percent of what you're buying. And so, so once you. If you know the things you might already be doing anyways, now we want to look at those specific things to determine, is there a credit on it? Can I get a credit on it? Maybe that's what pushes you over the edge. Or if you're going to do it anyways, it's going to give you a credit. You just got to be tracking it and know that you actually get it. So that's how I approach it.

Love it, folks. Again, if anybody is talking about bitcoin and how happy they are and oh, I'm so good now that I have bitcoin, it's a scam. Do not click on it. It's bull crap. Sick of these bots. On Facebook, someone says, should. Should small businesses worry about audits? Yes. Individuals should worry about getting audited. Yes, Big business should worry about getting audits. This bill, the big. I'm getting more and more emphatic about this, Matt. This bill was about increasing the size of the irs and they thought, let's make it look sexy and give the environment and all the different environmental credits and love and let's tax corporations More. I mean, that's really the kind of the trifecta of this. And so people.

Sounds about right. Sounds right. I don't want to take the other side of that argument.

Oh, my gosh. Chicken Charlie says are they targeting certain groups like they did a couple years ago? Not sure what you mean by a couple years ago. They're always targeting groups in these bills. They're always trying to help certain industries or certain sectors and, you know, go after this level of income earners or go after this and help them in this way or whatever. And by the way, you're going to see in the news, oh, we're making Medicare prescription drugs more affordable or whatever. It is so small in this bill, they had to throw in something medical just to get it, make it good for pr. Matt, I've got a question for you here. Okay.

Yeah.

Oh, my gosh. Having the hardest time here with my mouse trying to move this thing around. Okay, I'm going to scroll down a little further. Okay. Can you get to it and just say this is all bs? I'm trying, Amanda. I think we're pretty. But that's why I need you to, like, get, you know, whatever, you know, study up on your audit proofing of your tax return. Elle Marshall said it was. What is the pass through entity tax? Okay. In this bill, all they're doing is extending the pass through entity loss limitation. There's no pass through entity tax. S Corps are still safe. LLCs are still safe. You're golden. Go out and kick butt. I'm kicking butt with my S Corp. Love it. But when businesses have huge losses, the IRS is saying, whoa, whoa, whoa, whoa. You can't just wipe out all your income with a huge loss in one year. You gotta spread it over time. And so they increased the limits a little bit and extended it. And Donald Trump administration is the one that passed that just kind of put some limits. Yes. I know that freaks out some of you that Donald Trump passed a bill that was harder on high income, but they did. It was a very. The Tax Cuts and Jobs act gave and took away as well. And so I'm not trying to beat up Democrats, I'm not trying to beat up Republicans here. And all of you, chill. You're going to see crappy bills from Republicans and problems too, as well as Democrats. We're all in this together. We're small business owners, we're investors. We got to deal with it.

So we're all in this crap together.

Yeah. What? Okay, Jeffrey says, Matt, what would you say about. Should I be worried about retro audits. How much should we be concerned about that?

That's a great question. I would say yes, agree. Here's what happens with the IRS. The IRS has a three year audit cycle. Okay. We're in 2022 past April 15th, born 2022. Since the IRS is a three year audit cycle, that means they can be auditing 2020 returns. Sorry, 2021 returns.

Again.

If you filed April 15th, 2020 and 2019, what does that mean the IRS is auditing and opening new audits on right now, 2019. They don't audit the current year that we're in or even the most recent year. They're typically auditing the prior years. Now, sometimes they jump ahead on if they get something weird on your return that gets flagged. But otherwise you're usually kind of at the tail end of that audit window when you're, when you're, you know, you kind of lose the audit lottery, so to speak, and your ticket gets pulled. So I would say, yes, I would kind of still have a concern for even your 2021 return if you haven't done it yet. And some of your prior returns that are already in love it. Cause the IRS think of it from like, you know, I hate to say it, but the returns are like inventory to the IRS. If they let those 19 returns go and don't audit them, they can't come audit them. So if they get all these resources, they're not going to bump up and start auditing 2021. They're going to go to the back of the line and work forward to get to claim audits. You know what I mean?

What do you think?

If I have expiration date, it's like the expiration date on your yogurt when you're in your fridge. You don't, you don't eat the yogurt that's got the expiration date a month out. You eat the one that's going to go bad in like two days.

Yes, yes.

Right.

By the way, what do you think's going on over the irs? They're over there going, look at all those tax returns. We want to audit. Cause the computer system said, rip, rip, rip. You know, Avery, you've got a tax return we want to audit, but they can't. They don't have enough resources. So they're going over to Congress going, give us some more money. Give us some more money and we'll make you money. That's music to their ears. That's why we got this bill. Flights with Shane Says stop trading crypto will help avoid getting an audit. No, it won't. Trading crypto or not trading crypto doesn't get you audited. Not reporting your crypto properly gets you audited. So make sure you're using. We. We love tax bit. That's who was sponsored our last two tax events. They have a great software, even for the. Oh, my gosh. The wallets that are out there that help me out. The.

You mean like the hardware wallets? Yeah, even hardware exchange wallets.

Yeah, off the exchange. All of that. The get to tax bit and defi.

Whatever you want.

Defi? Yeah. So just because you're trading crypto doesn't mean you're going to get more audited. Okay, this is a good one from me. Hey, Mark, Love your shows. Question. Both my wife and I have incomes, but I live for five months in another state. Can I not file taxes as joint? You can, but I'm not seeing why you would want to. You're still going to file joint. You're going to file a tax return in both states, but your income is only going to get taxed in the state. Well, it'll get split up because you said five months in one state, and then you've got seven months in another state. So you're going to. Filing separate. Doesn't stop you. Sorry. If you file joint, you can still allocate your income where it's supposed to be taxed.

Between states.

Between states. Now, if you want to have your accountant run it as married filing separate and married filing joint and see if it has any impact, I'd probably put ten bucks down on it right now. Not gonna matter. It's not gonna matter. Just make sure they know where your income was and all that. E.L. marshall. It allows shareholders and partners to reduce federal taxable income through paying state tax, thereby eliminating the SALT cap limitation. Avery, not sure what you're commenting on. I didn't see anything in this bill that has anything to do with the salt cap state and local tax deal.

Yeah, that's still 10K. That was something I know the House Democrats were wanting big time, at least some of them. But there's been quite a bit of news that. That did not get in. That was definitely excluded. Any increase to the deduction on salt. I don't know about the shareholder thing. I haven't seen that.

Yeah, good to see Mom's many habits. Thanks for the shout out. M249. They're getting ready to weaponize the IRS. They're just giving them bazooka they're just issuing more guns. Yeah, pretty much.

I'm an S corp. We're the targets. We're the bullseyes. Yeah.

Twill line, the man for hire says, I'm an S corp and I do have extensions filed. Still waiting on 2021 taxes to get completed. Makes sense. I haven't done my 21 tax S corp at either, folks. I know the feeling. Matt, what do you get for credit for driving a BMW 6? You just, you just feel good? I don't know.

Yeah, I did have one of those. I don't know if that's where that question's coming from. But I do love the 6 series BMW, really? Bigger front end, shorter back end. You know, awesome car. But it's not electric. There might be. I know BMW's got their electric stuff coming out. It's already out. But here's another thing, just so I want to say this. This is just another thing that happened in the EV credits, the luxury quote unquote. EV credits. You ain't getting those anymore because a sedan that's over 55,000 doesn't qualify anymore for a credit. So it's gotta be below. So the BMWs and stuff, the Lexus, all the nice luxury brands that are starting to come out with electric vehicles that actually, you know, don't look like a. A spaceship, you know, they actually look like a cool car. Those you're just not going to get deductions on. The only Tesla model you're going to able to get on this is going to be the Model 3, which is still cool, but that's the only one that would even qualify just on price point. So the BMW is going to be out of the game. You just don't get any tax credit points for that. You get cool points, just no tax credit points.

Vicki says. Where do you find industry average expenses when we do tax returns? Vicki? An accounting firm, we use Lacert, which is one of the better software programs for accountants to use. Pretty robust. When an accountant does a tax return, we can print out reports that compare your industry against the industry averages and ask your accountant to do that for you. But also it's just about thinking smart, you know, like, yeah, I'm a barber shop. What type of expenses are other barbers going to have? Or I'm a landscaper. I'm going to have a lot in fuel, I'm going to have a lot in labor, you know, things like that. So just, just don't have something that looks weird compared to other people in the same industry. Fights With Shane, it's really flights with Shane, so he must be a pilot. Thank you, Shane. Sorry about that.

Could be a UFC fighter, you never know.

Yeah, well, he's a flight. Flight.

Yeah.

I thought it was fights with Shane. He's like, bring it on. But no, it's flights. He's like, I'll take you for a ride. Okay, thank you, guys. You're the best. I have a W2 and a few rentals. Assuming that my spouse manages the rentals, is there a benefit to having an S Corp that owns the, I think rentals? The intent is to convert passive loss to active. Again, is there a low audit probability? Whoa, whoa, whoa. Okay, slow down.

Near.

Do not do what you're doing, please.

Woo.

Okay, first rule, everybody. And you'll get nine out of 10 dentists and CPAs to agree to this. The S Corps should never own a rental property. Not even an Airbnb. The S Corp does not need to, nor should it own a rental property. And it's not about audit, it's about jacking up your tax return. S Corp should not own a rental. That's number one rule. Now, if you. Then he said, I want. The intent is to convert passive loss to active gain. Not good either. I mean, that's like you're going from the best to the worst and you don't want your. Now, if you're a real estate professional and you've got passive losses, that great, but then you pay it over to an S corp. Now you've got ordinary income, you just made the worst type of income, and now you may go, well, Mark, you're not getting what I'm talking about. Well, just on the face of it, everything you're saying, I would not do. So please, any of you out there that kind of get a feel for what we're doing. And by the way, in about five more minutes, 10 minutes, I'm just going to start giving away stuff. We're going to wrap it up. But near. Sorry, near Mayor. Get a consult with one of my tax lawyers, do a comprehensive review for 1000 bucks or less. I mean, if you just want an hour, do an hour. That's cool with our tax lawyers, but we can build a diagram, go through your returns and do it right, and just do it once a year. If I don't. If we don't save you 10 times what you're paying us, we've screwed up, really. We want you coming back again and again and again. So if you give us money, our goal is to have you so happy that you can't wait to give us money again. I'm serious. So near. Please get a consult. If any of you want to get that tax console, I'll have someone put it here in our comments. You just go to kkoslawyers.com kkoslawyers.com or give us a call at our office, which is 1-888-8010. That's 888-8010. I think I got that right. Pull it off the website. Okay. Use Apple iPhone to zoom the screen and read better with glasses, without glasses. Thank you. I will consider that here in a moment. I maybe want to do that. Okay. I'm Matt. I'm going to ask you one more question. Do I have to pay more for my mistress? I don't know. You know, maybe they're. They work for you. You could get 1099. Okay. Oh, my gosh. Marielle, I don't. Mayela, I don't know if I can answer that. Okay, let's just. I'll take a shot at her comment. It's a step towards the goal. We need to do something to show down the deterioration of our planet at the end of millions of circular. Okay, so Mayela, this is a fair point. She's saying, hey, this bill has a bunch of stuff for the environment in it. But you know what? We need to do stuff for the environment. And don't get pissed at this bill if it does that. I'm okay with that. I'm not saying. I'm not saying I don't want to help with some of these energy credits and these ways to help our environment, but I don't. There is so much pork in this going to huge agencies and groups that I don't know really impact the environment per se. And also, I'm not getting motivated to do anything different in my life. So if it's about personal responsibility, help, I'm okay. I'll try to recycle more. But this bill doesn't help me in any way, shape or form be better for the environment. And so maybe more people need to run for Congress that have better ideas to try to get money into people's hands to do more for the environment. I understand that's a political issue. I get it. But let's not call it the Inflation Reduction act when that's complete bullshit. You know, Seriously. Okay, Matt, I'll throw out a. This is another auto question since you nailed it with the last auto question. And then we're just going to give some stuff Away here. I would like to move my personal car, never used for business before, to my S corp. It's less than £6,000. Is there a way to do this without creating a taxable event? Well, you want a taxable event, you want it in the. You want a deduction.

Yeah, I mean a couple things. One is most clients are just going to take mileage on their auto. So I don't care whether it's in your S corp or not, you can just take mileage on it. Okay. What are the miles you're using for the car? It's easiest. It's great bang for your buck. It's a great deduction. Now you can take actual expense and maybe you're trying to get some depreciation on it and bonus depreciation you don't want to do. Miles. And I know there are provisions where you're able to take an existing vehicle and I don't. Is this still good for 2022? Yeah. Mark, still good for 2022?

Yeah. Yeah.

It changes the new couple years.

Yeah. I'll add. Yeah, you can, you can contribute the car to the S Corp if you're going to go actual in 2022. Absolutely.

So. And then maybe you get some bonus depreciation or higher stuff. But I don't know that most clients again are just going to take mileage because if you do that, you're stuck on actual, by the way. Now the whole rest of that car, you're doing actual expense.

Here's a cool tip, Matt, you might like this. We've been doing this over in the accounting firm. Yeah. Matt's privy to all the IRA strategies every day. Knee deep in that. I can hear more of the accounting firm strategies floating around. Let's say the Google user here has a car and wants to put it in their S Corp and their business started last year, you can retroactively contribute it to your S corp last year. In 2021, do bonus depreciation and write off fuel, repairs, maintenance and depreciation last year and do that contribution retroactively. And it's not a taxable event, meaning it's increasing your taxes. You just got a huge write off to do it. Now if you're not using the vehicle 50% or more, you have to use mileage. But if you're using it 50% or more, you've got an old vehicle that's never been in the business and you've never taken mileage. Once you take mileage, you're stuck with mileage. So Google users there, I'VE never used it for business, but now I am. You can go grab this dart right off in 2021 and still do it in 2022 if you want to do it this year. So.

Yeah, and this is new, by the way, from a few couple years back. I don't remember where what bill this came from, but you used to have to buy, you know, so this is where you are able to use an existing vehicle. But remember like we were talking about earlier about preparing for an audit, Let me just say clients take actual expense. What are you tracking now? Your gas receipts, your insurance, your repair costs. You got some homework assignments now to be able to write this stuff off. Mileage. So much easier. Just track your mileage. Was it for business use? Yep. Easy.

Yeah, I like it. You're good, Matt. All right, we're going to give some stuff away and then Matt Sorenson is going to say something so smart and insightful to take us out. So that's your job, man.

All right.

Okay. I need names fast. I want to give out some winners of our books and I'm going to give away some calendars. I've got a backpack here. I'm going to put a couple signed books in this. So let's read off some winners. Now. I'm going to say this right now. If you win, you have to email. Are we doing Diane or James? Diane. Okay. Diane at Mark J. Kohler. Okay, let's put that down in the description. Dianarkjkohler.com you're going to say I was a winner. Give your handle. We're going to cross check those. Diane will know if you're trying to lie or cheat.

D I a N N E I

a N, N E. That's why half my emails never get to you. Two n's, really. D I a n n erkjkohler.com so if we read off your name here, you got to email Diana. Go. This is me. And here's my mailing address. And here's my handle. And she'll verify that you really did win. Okay, so for a copy of Matt Sorensen's book, the self directed IRA Handbook.

So the grand prize at the beginning already, huh?

Okay, I'll give away two of them. I'll do one at the beginning and one at the end. Okay. All right, so winner, let's do Shiny Shiny Man. Shiny man. Shiny man. Shiny, shiny man. Okay, Winner of Matt's book.

Congratulations.

Winner of the tax and legal playbook. You see, I gotta get.

Let's give that to Joshua Gabriel.

Joshua Gabriel. Joshua.

Condolences, Joshua.

Unbelievable. Did Matt just say that? That's it. You know what I'm doing, everybody? I'm signing Matt's book right now. I'm signing Matt's book. Whoever gets it.

Nice.

I just increased the value. Right there. Right there. I just signed Matt's book.

It's going to be worth destruction of property. Right there.

Oh, my word. What? Your CPA isn't telling you who's winning that.

Okay, let's go with Cheetah Jess.

Cheetah Jess. Cheetah Jess. I know they're trying to be gender, you know, a couple guys, couple girls, you know, at least for what can tell with handles. Okay, we're going to give away the business owner's guide to financial freedom.

Ivan Solis.

Ivan Solis. Ivan Salas. Now, what I love is my calendar. Do I have it here with me? I think it's over here in my bag. My calendar. Even though it's freaking August, my calendar has so many tips and deadlines and strategies and numbers in it. And the calendar is afterthought. So I want to give away three calendars. I need three names real quick. Give me three names.

Diane.

Okay.

Hex Shiren.

Hex. Shyran. Hex Shiren gets a calendar. And next, email.

Sierra. S I E R R A Sira.

Camille.

Email.

Email Cyra. Email Cyra.

And then twill Line man for hire.

Quill. Ron. Man for hire.

To a line man for hire.

Flow man.

That's T. Will. That's will.

He will for hire. All right. T will for hire. Am I trying to understand my student studio here? Help. Okay.

It's like a telephone game when you're a kid.

It's a telephone game when you're kid. Okay, now I'm going to give away. There's going to be a surprise book. We're going to send you the Mark J. Kohler backpack. It's just kind of fun. Throw some business books into all your favorite business books. There'll be a surprise book in here and a calendar. So they got book and calendar in the backpack. Who's our winner?

That's going to be Mr. Flight. Let's get his name here. Flights with Shane.

We're gonna give it Flights with Shane.

Oh, flights with Shane.

Wow. Because I screwed up his name so many times. Flight with Shane. You got the backpack with a bonus surprise book.

And Flights with Shane. Flights with Shane with an on time arrival.

Welcome to your destination. Okay. And for our grand prize winner, the Taxon League. Oh, sorry. Can't even get the name right. The self directed IRA handbook. The book in the country on self directing your IRAs and 401ks by the one and only Matt Sorenson. Who's our winner?

James London.

James London. Boom.

Congratulations, James.

Okay, well, there's our winners for today. We're so glad that all of you that won something, you stuck it out during our show here. Hopefully we share something that was powerful and helpful in your personal lives that will save you some money, make you some money. And Matt, what's there? Everybody's takeaway. Powerful statement your were going to give.

Here's my takeaway. Powerful statement. There's a lot of hype in this bill, not a lot of substance. And I. The good news is you're not getting hit. Most of us are business owners, entrepreneurs, like I said, trying to live the American dream. We're not getting hit. What I want except you might get audited. All right, so I love the tips that Mark gave and, and take those to heart. What I'll say with bookkeeping, it is like the last chore any business owner wants to do. I know that it's the last chore I want to do. But you know what it's like that, that exercise or whatever you know is going to make a big difference. If you just get on it, you stay consistent, you're doing it and this will save you money, it'll save you headache, it'll save you stress. You have to do this anyways. So if you're the person that's totally disorganized, throwing it together when your returns do, it's a mess. You know it is. Stay on it. Get it, get a plan going. You know, whether you're doing it weekly, monthly, quarterly, whatever your whatever. You know the businesses, how, the types of transactions you have. Just be on it. Get a plan. Keep the good bookkeeping that'll you'll sleep better at night, you'll have more tax deductions and more savings at the end of the day. And you can also plan better for your business. You know, where you're making money and where you're losing money. If you're more on top of it as it's actually happening instead of looking, you know, you know, you send us September 15th and you're trying to remember what you did In January of 2021, you don't remember.

Totally agree. I'm going to give a practical object lesson to Matt's statement. This goes out to Tom Cruise. Don't fly below the flight deck. Be safe.

The hard deck. The hard deck.

I Thought it was the flight deck.

I don't know.

Is that the hard deck or the flight deck?

I don't know. You totally.

I think whatever. That.

Yeah, it's like the. That's. This was like the aircraft carrier where you don't really touch down. You come right back up.

My father was actually on an aircraft

carrier, so I got to see the F14s break the sound barrier when I was a child.

Can everybody hear you, too? Yes.

Yeah.

Okay. Wow.

Was that the. Is it the hard deck, James? I mean, you must know it's flight deck.

I was right.

The hard deck is like.

What?

They don't. They weren't. I thought it was the hard deck from the movie. You know, movies say a lot of things, but, you know, it could be one of those inside movie things, you know? You know, Jon Hamm is getting mad at Tom Cruise for going below the hard deck.

Yeah, this was for. That was for Tom Cruise and for all of you. Don't go below the flight deck. Take all the write offs you can get. Right on that, right there at the limit. Take advantage of it. Go fast, go hard, make money, save money. Just don't get in trouble. Love you guys. We'll see here in a week or two. Maybe next week on Wednesday. Not sure. We got a company retreat taking all of our team away to learn and study and get better. Our annual retreats next weekend. We're going to be rocking it, trying to help be a better law firm for you guys. Love you. We'll see you soon.