Biden's Tax Bill Update | Mark J Kohler | Live Q&A

All right. Welcome everybody to a live broadcast weekly about tax and legal strategies. For you, the small business owner trying to build wealth, save taxes, make it all happen. We're cleaning up the table while we're talking. Thank you, Corey. My name is Mark Kohler. Don't go anywhere until I tell you what this live broadcast is about. I'm going live on my YouTube and Facebook, entrepreneur magazines, Facebook and YouTube, trying to get the word out on an important topic today. And that is what the heck is going on in Washington, D.C. if you've watched the news at all, there's a big reconciliation tax bill, for lack of a better word. I'm giving you the layman's terms here that's going through the House most publicly right now. The Senate is working on their version behind the scenes. And this whole sausage making ugly crazy process that you really don't want to learn about too much is going on to generate a $7 trillion act called the Build Back Better Act. Now, I'm going to call that literally the Build Back Better Act. I don't know if it's going to come out with that name in, you know, entirely in the end. I want to take that off the screen here for a minute. We're going to, I'm going to show you the process here for a moment, but I want to tell you what the tax provisions are in this. Now, this is not a beat up President Biden's session. When Donald Trump became president four and a half years ago, whenever it was five kind of four and a half, he came in and pushed the Tax Cuts and Jobs act through with the Republican controlled Congress. There was good and bad in that. There's good and bad in this bill. And I don't care about the Republican side or the Democrat side in the sense that all of us, hopefully you watching this are small business owner. You're trying to make some money on the side. One in three Americans have a side hustle. One in three Americans own real estate. And we need to think about our investments and how we are protecting ourselves from additional taxes or missing out on strategies and what we can do to make more money and use some new tax incentives. There are some pretty cool tax incentives coming out in President Biden's bill. He is attacking the super rich, the 1 percenters is what he calls them. And so cool. We can talk about that. But I'm going to try to summarize for you what's going on in Congress right now. And I have got a link that I will give you here shortly. That I'm going to ask you to reach out to your senator or your congressman or congresswoman and tell them how you feel. I may say something that you're like, mark, I totally disagree with you. I want to tell my legislator to vote for that. Some of you maybe go, holy crap, Mark, I didn't know this was going on. Who do I call? Right, well, I'm going to give you the link here down below in YouTube or Facebook, probably multiple times. When I tell Corey, my producer, to release it, I want to give you a link where you can find very easily through a website who your representative is in Washington D.C. and I encourage you to send them an email, give them a phone call. They literally, most of them have a kind of a voicemail line where, where you can call up and tell them how you feel. They have staffers that make notes, they do reports and they care most about their constituents. If I call up a senator from Missouri, they're not going to care because I'm not from Missouri. If I call up a representative and the legislator, a congressman or a congresswoman in Arizona, they're not going to care because they want to hear from the local people and their district. So anyway, I'm going to give you that contact info. I want to summarize what's in the bill and then as I normally do every week, I want to just open this up for you. I'm a CPA attorney. I've got Darren here, Darren Charrington, Max Merritt here in the House. They're going to be answering questions online. So if you see a Darren or a Max comment, they're not just spamming you. Those are my guys here trying to help answer questions sometimes. I have Christy or Alison. We have 12 attorneys here. They do a fantastic job on our law firm. We're all tax attorneys helping small business owners. We're not doing reverse mergers and Wall street and IPOs and all these crazy. We just want to make money for those of you doing your small business. So I want to talk about write offs that you might be considering how to structure your business, how to pay your family members. Should I use an S Corp, an llc? I'm doing a vrbo. What should I do? What type of contracts do I need? So from a legal or tax perspective, we're just gonna do some good old Q and A and hopefully get you some helpful information. Now I've got tons of resources here. Now here's my disclaimer. It is so freaking hard to try to explain how Congress and Washington D.C. functions. It's a whole other language, it's a whole other world. And you don't need to know all the details, I don't want to know all the details of how the function works. But there's a few key moments in the process when laws are passed where you have a voice and that voice is who you vote for. And it's your voice on sending an email, making a phone call, sending a letter. Sometimes people go literally down to the office of their senator or their congressman or congresswoman and try to make an appointment or talk to a staffer and tell them how they feel. That's great. I want to tell you what window we're in right now and tell you this is time and we're going to have about a two week to three week window right now where your voice can be heard. So let's talk about this. Okay, so the name of this act right now is Build Back Better Act. And I know some of you hate Trump's cliche Make America Great again. And the Biden administration is trying to like we're going to build back and get better at, I don't know. But anyway, that's okay. Everybody's saying this crap. All right, okay, so here's how this works. I'm going to do this in red as we go along so you can see this real quick. So the first step is the House presents a bill. Now Corey, you're going to zoom in on that a little bit. Okay? So the House has a bill on the table now. Now, it's not a typical bill, it's called a reconciliation or a budget bill where they only need 51% to pass this thing. Now it's a democratically Democratic controlled Congress or I should say, yes, I'm just gonna leave it at that. And in committee, the Democrats control what comes out as they kind of beat up this thing. Now I wanna show you this. The bill right now is 883 pages. That's it. The bill, I'm not kidding you, is a full ream of paper, which is 500 sheets here, plus another 383 sheets, I kind of estimated here. But it's pretty close. And your congressman or congresswoman have to understand this well enough to debate the issues in it. $7 trillion and vote on it. That's why they have lobbyists, that's why they have staff to help get to the bottom of what the freak's in here. So that's the bill that they're debating right now. And they're doing hearings from 8 in the morning till 1 in the morning every day this week. And they're trying to move this through quickly. So it's right now in what's called the Ways and Means Committee. So it goes from a House bill being proposed, then it goes into this committee. And this committee then says, well we want this, we don't want that. Now here's their goal in this whole better act. They want, the Democrats have proposed this. They want to spend $3.5 trillion on subsidies and money for society to make it better and build infrastructure. There's a lot of bridges falling apart, roads falling apart. We need social things, we need energy things, we need all sorts of things. 3.5 trillion. Well, the government is bound to make this thing balance. So they can't just spend 3.5 trillion without showing they can make it up in revenue. So they're going to go out and increase taxes on the rich for the most part. Anybody making more than 400 grand a year and big capital gains and all sorts of international things. I mean this thing's packed. Half of it's packed on how we're going to raise money, the other half is how we're going to spend it. That's what the bill looks like. So they've got to come up with 3.5 trillion and then it balances and then they can vote on it. So if they take something out and say, oh, we're not going to raise money this way, then that means they have to cut some sort of benefit. And the Democrats are like, we want to spend 3.5 trillion. So show us how to make up for the difference if you don't want this tax increase or something. Now let me point this out. Very, very important. Not all the changes in this just affect the wealthy. There's two or three things in here that I've got to tell all of you that affect my mom, that affect my sister in law, that affect a schoolteacher and a fireman. And there are tax strategies being. What would you say? They're disappearing, they're being cut, they're being eliminated. That's the word I wanted. Thank you for your help, Darren. You're welcome. Unbelievable. Okay, you need another rock star here. I've got a rock star. I'm going to share his rock star here with the camera. We didn't have Darren on the camera today. You know he's, you look great. I didn't do my hair. Yeah, you didn't do, you didn't do his hair. So we're not doing that. Okay, now, so there's tax strategies being eliminated that I know many of you feel very, very important to you, that are important to you. And you don't have to be rich to lose out on this. We're going to talk about those now, just in summ, once we get it out of committee, the House votes on it. They only need 51% and this bad boy is done. So the House votes on it. Now, meanwhile. Now sometimes bills go from here straight to the Senate. The Senate's working on their own version and they're going to pass their version. And then the Senate Finance, Senate Finance Committee is what's beating this one up. And then the Senate votes on it and they've got to get 51%. And two or three Democrat senators could change the game in a big way because they got to these senators, kind of everybody's like, come on, sign on. They're like, I don't like this. I'm a more moderate Democrat or a conservative Democrat and there's some things in here I don't like for small business. So these two bills that get voted on have to then be combined and cleaned up into this kind of another reconciliation process is what it's called. And then if it looks good, President Biden signs it the end. All of these laws are generally going into effect January 1, 2022. They kind of say December 31, 2021. And then so they're in effect at 12:01am on January 1, 2022. Okay, so let me just get rid of some of the rumors that this, this is a messy process and this is going to take the next two to three, four. They want to be done with this thing by Thanksgiving and so or sooner. So we got to keep on watching. Okay, look at this. People are cheering out some of their favorite senators and oh, man, if the Senate changes any one of the good comments here. And Michael, by the way, I even called Chris Cuyler of the KKOS lawyers, which is Kyler, Kohler, Oschmuller and Sorensen. Chris Kuiler is our head lobbyist and he amazing. And I called him right before this broadcast and said, dude, tell me how this works again, because I don't, I don't lobby and it's messy. So someone asked the question, if the Senate changes anything, must it be run back through the House then to the President? Generally, yes. See, you have to have House approval and Senate approval before the president can sign it. This messy part is the reconciliation. And sometimes it's really clean, sometimes there's filibusters. Not in this situation you just 51% and we're there. So the House will be, will have another say if the Senate jacks us up and they're going to try to figure out where they're at. Okay. Now I know some of you that are poli sci majors are really disturbed with my level of knowledge on this. Please don't send me hate mail. I'm more worried about what comes out of this sausage making machine than the process of how they made the sausage. I want to make sure what we, we get what we want. Like a really nice smoked bratwurst you can eat on the barbecue. That's what I'm looking for. Right. Okay. So let me tell you, probably the biggest issues that were rumors and this is what President Biden ran on is he said, I want to get rid of stepped up basis so that when someone dies, their real estate is not raised to fair market value and no one pays any tax. Not in the bill. President Biden didn't get his wish. There are 1031 ones. They're still alive and well. The 1031 exchange for real estate investors, they didn't touch it. It's all clean. Not there. The state tax level of being able to write off your state taxes up to $10,000 stays the same. They're not changing the standard deduction. They're not changing. Dining is 100% write off still for this year and next year we're all good. Still writing off auto. We're still playing with depreciation. So any of your questions on how to write off my truck or how to write off my trip or food, let's talk about it. But none of that's changing where they're going after this. And the big one is they're going to increase capital gains rates to 25%. Now some of you may say, well, I'm, I, when does that hit? Well, if you make more than 400 grand, then you've got to pay 25% in capital gains and you'll go, oh, that's sweet. I only make 50 to 100 grand a year. Or my spouse and I, we both work, we make maybe 150, 200 grand a year. We're just scraping by, living in an expensive area or something. And you go, I'm never going to pay capital gains of 25%. Do you own some crypto? Are you going to sell cryptocurrency this year for a million dollars? Do you want to pay 25% to the feds for that? Then you got your state amount. That's where my videos on charitable ranger trusts are. We're so swamped trying to help people protect taxation of cryptocurrency by putting in some charitable trusts and creating cash flow and tax write offs. You'd love it. If you want to research that, just go to YouTube and type Kohler CRT or Kohler Charitable Trust and I've got some great videos on how those work and you can get started learning about them. But they're going to increase capital gains and you may not think it affects you, but if you're going to sell your business, sell a big piece of real estate or sell your cryptocurrency, you could get hit by these bigger taxes. They're going to increase the individual tax rate to 39.6. They're going to tax people that make more than $5 million with another 3%. They're going to reduce the estate tax exemption, cut it in half. They're going to get more money out of people when they die. These are ways they're going to make money. Now here's the big one that I want. This is a climax of the show and then we'll just do Q and A the rest of the time. Congress and this bill sponsored by the Democrats, which is fine. There's good things in here and bad things in here and I'll list some of some good things here in a moment. They're tacking a three letter word IRAs. They're pissed about IRAs. They don't want wealthy people to have million dollars IRAs. And when Peter Thiel, one of the owners of Facebook and PayPal started his little investment in a little known company called Facebook, he did it in his Roth ira. It's now worth billions of dollars. Now that may make some of you really sick and mad and blah and that's fine. But the government said no more of that. You can't invest your Roth IRA in an llc. You can't be buy real estate with your LLC and an IRA and be the manager of the llc. You can't self direct. They want to take away the process. Now if you want to cap the amount someone can have in a Roth IRA that's in the bill. They want to cap it at $10 million per person. And you know one of our I have a video how to have a million dollar Roth. I want all of you to have a million dollar Roth IRA or more before you retire. I've got a little table in my video on YouTube on how much you need to save every week to do it. It'll blow your mind. It's like Dave Ramsey on steroids. Let's go check it out. But here's the point. Do we need more than $10 million in a Roth IRA? Maybe not. I mean I'm not, I'm not advocating for the super uber rich. So if you want to cap, how much can be in a Roth IRA? If you're married, that'd be 20 mil. Fine. But don't take away the process. And so if you want to invest in Main street, you want to invest in real estate, in a small business, in a startup, on an online business and use your Roth or traditional IRA or your HSA or your Coverdale or your college IRA for your kids and you want to self direct that money and invest it not in Wall street no more. It's in the bill. So here's my first. Now we can talk. I'll do more Q and A on this topic, but I've got books here on this right here, the self directed IRA handbook. If you want to go to YouTube and just type Kohler self Direct, you're going to see all my little videos on how you can take your IRA and buy a rental property down the street and make more money than your freaking hedge fund. And Wall street, they want to take that away. That hurts. I don't care if you're a Republican or Democrat. So if you don't like that, if you want to have more control of your Roth or ira, the link is down in the description. It's down in the description. So just when you, when this is over, copy and paste that somewhere right now. Because sometimes when we close the live, those, those feeds end, right? Or whatever. I don't know, maybe it'll be up in the description. It'll stay in the description. Okay, but get down in the description. Pull that link, find out who your congressman or congresswoman is in the House. Then find out who your senator is in the Senate because you want to hit both of these people and you're only going to have, you're going to have two senators and you're going to have one congressman or congresswoman. So you're going to want to send out your email and go, don't take away my self directed ira. Now here's the provisions you want to put in your little email. Let me write this down for Everybody here. There's two in this 800 page, you know, the 800 page thing, it's only one page and there's two provisions you want to get rid of. You're going to say Please don't, please don't get rid of my IRA and remove. I'm going to write this this way. Oh my gosh, I touched this thing the wrong way and now I'm all jacked up. Okay, okay, I'm going to hit new. Okay, you're going to say, leave my IRA alone, please. And the more you can put in there, like, I'm really relying on my IRA for my future. I'm paying off my home, I'm paying off debt. I'm building a small business. My little Roth IRA is my safety net after Social Security. Say that in your email. Leave my IRA alone. Please remove. Sections and there's two sections and then you're done. I'm going to put the numbers in here right now. So it's section, that's the symbol for section 138312 and section 138314. You want to say please remove those sections. Leave my IRA alone. Let me invest it the way I want to. I'm just got emotional saying that. That's weird. I'm a freaking nut. But people, there's some good stuff in this bill. Now let me say what's good in there and then we'll do Q and A. Here's a few things that some of you may be like, well, what are they spending my money on? What the freak's going on? You know, where's all this money going? And so I want to look at my preview here. Where's my previews? Oh, shoot. Did I lose it? Oh, there it is. Okay, when you say where are they going to spend $3.5 trillion? I forgot my glasses today, so forgive me. Okay, there's first, there's infrastructure. Back in the 1920s through the 1940s, we built a lot of roads and bridges and we were trying to stimulate the economy by giving people jobs. Right after the Depression in World War II and World War I, that infrastructure is falling apart. So there's proposals addressing issues including new markets tax credit permanency, expansion of the rehabilitation and low income housing tax credits. Those ways to save money, folks. And new neighborhood homes credit and infrastructure financing. Our country needs billions of dollars in infrastructure right now and it creates jobs. That's cool. Good, good. Okay. Green energy Proposal to extend and modify the credits for renewable electrical production, including renewable fuels. Extend incentives for individuals in buying fuel efficient and green energy appliances in your home. Incentives for electric and alternative fuel vehicles. So little insider trading here. Tesla stock might go up in value if this passes. That's not insider trading. It's right here. I'm not going to jail. Okay? And then the third main area they're spending this $3.5 trillion is proposals to extend and expand the refundable child credit, modify the child and dependent care credit, the earned income tax credit, and create tax credits to support child care providers. All great things. You know, whether you're on Republican or Democrat, there's people that need help. Sometimes it gets abused, taken advantage of. Sometimes people don't need it. They could work harder. But there's a lot of people that do need this. That's okay. And they're going to tax the people that make a lot, a lot of money, more to pay for it. But in the aftermath, in the net, they're throwing out there, some of the strategies you and I like are getting sucked into it. So we want to tell them, no, leave that out. Leave me alone. Let me invest my ira. So make sure you get to your legislator or your senator and say, please remove the sections 1-383-12 and 1-383-14. There you go. There's my summary. Is that. Okay, guys, I'm looking at my studio audience here. Somebody asked a question. Does this affect, this change, affect current IRAs or the just new IRAs? Okay. The question was, does this affect future IRAs or current IRAs? I just got a ting of emotion again. Under this bill. If you have an IRA right now, and I know there's thousands of you watching this show right now that have an IRA that created an LLC and you own real estate or it doesn't meet the boundaries of what they say you can invest in, you have two years to shut it down. That's it. It's gone. Your Roth IRA as you know it, if it's invested in alternative investments, not Wall street, gone within two years. Now, if you have a $10 million IRA or more, God bless you, you've got to distribute it and get rid of all that money out of your IRA immediately. This is ugly. So this is going to hurt your current ira, llc, not just future ones. Now, the backdoor ira, something I teach all the time. Oh, my gosh. You got to get over to YouTube and type backdoor IRA. Don't just type, nevermind. But anyway, just Kohler backdoor IRA. Make sure you use those words in their entirety. I'm not liable for what you might see. So get over there and watch some videos on the backdoor ira. And they want to get rid of that. Now, I'm not going to attack that issue. We're trying to Just save the IRA llc. But you're getting rid of them. There's no grandfather clause. They're gone within two years. Okay, Any additional comments? Max for one case as well. It will. Okay. This will also affect the self directed 401ks. Now you're sure about that on the LLC piece of it? I'm not positive on that here. Can you start reading 883 pages and tell me. Okay, we'll work on that one. Okay, guys, we're right in the middle of all this. Okay. Crypto IRAs too. Someone just said, does this affect my crypto IRA? No. Maybe it could. Now, here's why. Let's say you have a Roth ira and if you want to set up a Roth ira. I was working on my Roth IRA at Coinbase today, but. And I've got one at Gemini. I was working with a representative at Kraken today. I'm in crypto. I'm loving it. So lots of fun. If you have a Roth IRA and you buy crypto right now through an exchange that allows for Roth ira. If some of you haven't opened one up tonight, you can go to directed ira.com, you can open up a Roth IRA tonight online, get your money transferred over tomorrow, you're buying crypto by the weekend. And there's an app on my phone, the Gemini app for my Roth ira. How cool is that? Okay, now this new law would not change the rule on crypto Roth unless you made more than $10 million. And I know there we've had clients that have walked in the door with more than $10 million in the Roth. It's capped at 10 mil. So that's one way it could affect it. Now, let's say I want to. What I've done, Mark Kohler took my Roth ira. I created a company and bought a mine. And I have three video cards and a CPU and my motherboard and I'm mining in my Roth ira. Can't do that anymore. I can't Roth. I can't mine a Roth ira. Mine crypto inside my Roth ira. Can't do it. Let's say you have a Roth, your spouse has an ira, your kid has a Coverdell, and your mom has an hsa. And you want to take your Roth, your ira, your HSA and Coverdell form an LLC and go buy crypto. Cannot do it because there's an LLC in the mix. Each account could go buy crypto, but you can't combine the accounts into an LLC. And we set up two or three LLCs. A day around the country just doing this. So Darren, me, Max, Corey, Jack, we could form an LLC with all of our little Roth IRAs and go buy crypto today with this new law, come January 1st, shut it down. So you can still invest in crypto. One off in your Roth as long as you don't exceed 10 million. But mining and combining ain't happening. So. Great question, Wake dog. Was that Wake dog that asked that? Because he said, FYI, all taxes are theft. Geez, man. Wake dog, serious. Look at that. Okay, all right. Now, if some of you are already like, hey, this Kohler guy ain't too bad, you know, he's making some sense. I kind of like learning about taxes with this guy. Please subscribe. Get over my YouTube channel. I go live every Thursday. I produce. How many videos are we kicking out this week, Corey? Holy crap. Probably four or five videos on strategies for saving taxes, building wealth. And get over to Facebook, give me a like and subscribe, whatever you do, blah, blah, blah. And hey, whenever I'm posting tips and strategies, I've got some workshops this fall. I'm going to Dallas in two weeks, Chicago next month, Orange County, Honolulu. Tax write off. Come on over, baby. It's the week before Thanksgiving. Take a tax write. I do it for you. I mean, I really don't want to go to Hawaii. I, you know, I. But I sacrifice for you. I have a workshop over there just so you can get the tax write off. So come check that out. Okay. All right, well, I'm just answering questions here, Corey. Is there one that you liked or should I. Let's just do a fun one. Can I do Terry at the top there? Can I do Terry? I want to just get off this stupid bill for a minute. It's killed me this week. My wife's like, why are we not having a life this week? I said, because the House Ways and Means Committee is working around the clock. So it's jacked up my life, and it's been such an honor. I've been on the phone call with senators, congressmen. It's like I'm living West Wing. It's pretty freaking awesome. All right, Terry Yee says, can I get an auto write off if I buy a car on December 30 and get the full deduction? Terry is it depends. And better yet, you could even do it on December 31st. Boom. Okay, now here's how the auto strategy works. Now if we go to our trifecta. This is the Mark Kohler Kohler law firm. We love the trifecta If I've got operational business over here, I'll call ops and I've got my assets over here. I've got my IRAs, my 401k. Then I've got my personal LLC with rentals or investments or crypto. Whatever I'm doing, I have my personal home and everything is flowing down into my trust. See this? This is my asset side. So retirement accounts tax free or tax deferred. LLC is with rentals. Our Airbnb is VRBOs, apartment buildings. Whatever, your own personal home, all of it is owned by your revocable living trust, whether you're married or single. Very super affordable. We're 1500 bucks any state in the country. Get it together, we build you a diagram, get you out the door. You freaking love it. All right, pen drop. Okay, now operations side is typically where we write off our vehicle. So Terry says can I buy it on December 30 then write it off? Hey Corey, you know that you, you know the blog article January in mid January? Every year in January I do a blog article on auto deduction and give you seven rules of thumb on when to write off a car or truck or when to use mileage, when to lease. How does an electric vehicle play into it? Should I buy cash or borrow? I have a sweet blog article. Corey is going to put it down here in the description in the chat here in just a moment. So there's a lot to this. I've done entire podcasts and shows just on auto. So Terry, let me just say quickly whether you have an LLC for your side hustle or you have an S corp where you're a little more larger business making 40 or 50 grand a year, that's when we switch over to this. So here's kind of your full time business. This is where I'm going to put your auto. So forgive me for my poor artwork, but this is where we're going to put your auto now based on. So Terry, I'm going to say yes and I'm going to say no. Based on the value of the car and assuming you use it at least 50% or more for business, we could write off 100% of that truck or SUV if it weighs more than 6,000 pounds. If it's a car, what can I do this year? I've got it right here in my handy dandy Mark Kohler tax strategy calendar. It's going to go on sale here in about a couple months for next year is sold out in five weeks. I'm going to print more this coming year, with bonus depreciation for 2021, we're looking at about 18,300. I didn't write down the exact number. It's 18,100 in 2020. So I'm just gonna say 18 grand. So, Terry, you could write off up to 18,000 in the first year. So if you bought a car for 30 grand and it was 50% business use, that means it's 15,000 of it is business. I could write off 15 grand on December 31st. Girl, guy, Terry, T, E, R, R, Y. I don't know if that's male or female, so I'll say that's right. Dude or dudes. You got it. So, yes, I can buy a vehicle on December 31, and if it meets the criteria and the dollar value is correct, you could write off the whole darn thing. Okay. Boy, we've got some Biden comments out there, some Trump comments. Now, by the way, I wanted to say this before you send me hate mail. I'm not trying to beat up Joe Biden. I'm going to be a little blunt. I think his handlers and his staff and the administration is more involved in this than he is, and that's fine. But there was things Donald Trump had in his bills. They weren't all great. And there's some decent things in Biden's bill here, but there's this IRA stuff. Devastating. Okay, let's see another question here. Was Michelle there or off topic? Are we doing another off topic? Okay, okay, one other off topic. This is from Matt Snellbacher says, what's a small business that only needs about 10 to 20 grand to get started? I love these videos and need to get to figure out how to get in on this. Oh, my gosh. Boom. Matt, you just got me so stoked. Well, first of all, we did a podcast this last year. 10 businesses to start under $1,000 or something like that. Let me just give you a couple ideas, guys. Right. Right before we started, next door in our little Mean street studio here is a hair salon. These ladies are hilarious. I go over there and, you know, they're all. I was. I went over there to get a haircut today. No lie. And in there, one of the ladies is bawling in the chair because she broke up with her boyfriend. This other lady is, you know, over there talking about her crazy husband. I mean, that's how salons work. Anyway, these ladies are great. I'm meeting with one of them, the owner, the majority owner, about buying into her business for a Small percentage. Maybe just a few thousand dollars to do some increased marketing and some facelift of the hair salon. Am I going to invest in her hair salon? Nope. I'm going to let my IRA invest in her hair salon. Sweet, right? I might get a better return than a mutual fund investing in hair salon down the street so I don't have to have 5, 10. Now, that's not my business. Now, Matt, I know you're looking for a side hustle, so let's go there. I had a text last night from one of my college students that I love. Started an auto detailing business. Mobile auto detailing. He was in with a pressure washer, a few supplies in his truck. He was in business for under a grand. He's charging 100, $150 per vehicle. He's knocking out two a day, making 300 bucks a day on his own schedule. Doing vehicles in this little small town. Many of these service businesses, Matt, you don't need a lot of money. I could do website design. I could do social media marketing for businesses. I could do landscaping. What are we on the cusp of right now? Holiday lighting. Holiday lighting. Huge. Oh, are you doing that? That's your business? Sorry, no holiday lighting in Rexburg, Idaho. That's Cory's domain. Hey, I need a bid. Jen wants. My wife wants some holiday lighting for Halloween. Okay. Can you do permanent lighting, too? Can we talk? All right. Okay. All right. Landscaping, auto detailing. Okay, help me out, guys. Give me businesses. I had. What was the other one I talked about last night with someone? Oh, wallpapering. Wallpapering is a great business. Plus you can sell YouTube videos and product on your site and do wallpapering. You're going to triple your revenue per hour. Come on, what else we got? Ooh, Amazon reseller. Big business. Affiliate marketing. Yeah, you can be an MJK affiliate. Sell all my shiz. You'd love it. You can be an affiliate marketer for all sorts of businesses. Come on, Max, give me one. Some of you window washing. I like it. Some of you have a great skill set as a business consultant from your life experience. Maybe it's architectural engineering, contracting a fix and flip in real estate as a business. Owning a rental property as a business. Buying and selling cars. By the way, I'm selling the F150, Jack, so I'll give you another idea. So Molly doesn't want it, so we're good. So Jack here, we went up into Canada last year and bought an F150. How much we buy it for in US dollars? Six grand. This is before COVID shut down the border. Jack ran up there, bought this sweet F150 for 6k. We did some engine work and did some repairs which we weren't anticipating. Kind of sucked. So we're into this thing 10k right now. What do you think we're going to get? 17. We're going to get 17 grand for an F150 that we bought, fixed up, resold. I have a client down in Florida that's buying Jeeps stock Jeeps that are brand new. And then he's tricking them out with the lighting, the lifts, the tires, the stereo and reselling them for twice the materials that he spent to put into them. And he doesn't even do the work himself. He has professionals do the upgrades. Any other businesses? Come on, come on. Side hustles, folks. A little catering business. Ooh, that's what it was. I was talking to a client the other day doing catering. Big business right there. Who was it? I said if you could just get someone to return their phone call and be nice, you know. Anyway, there's so much out there, Matt. You don't have to have a lot of money to start a small service business. You can punch all that money down into a solo 401k. You can save for the future. Get out of debt, people. I love small business. Start with a copy of my book, Tax and Legal Playbook. Hey, I'm going to give away some books today too. Alright? Did you know that? Okay. All right. So Corey, I want to give away. Oh, I pushed my screen around here too. I want to give away four books. So a Tax and Legal Playbook. What your CPA isn't telling you. The self directed IRA handbook. Hopefully this law come four weeks from freaking now. And the Business owner Guide to Financial Freedom. I'm going to do two males, two females. And at the end of the broadcast here must be present to win. Cory's going to choose our winners. He's got a little random program that picks them. Okay, where are we going? Oh, look at that. Veronica. Good, good. Go back to Veronica. Veronica. Yes. Getting your real estate license is under $500. Now, being a realtor is tough work, you know. And by the way, my phone call right before we started and the hair salon ladies left, they were in here checking out the studio. My daughter called who's a realtor in Orange County, California. If you're looking for a realtor in Orange County. She's awesome. She'll give you 110% energy and service. She's great. That's Sidney. So being a realtor, great little thing. Quentin says, can I write off the auto if it's used on Turo? Oh, hell, yeah. Turo, which is. Gosh, how could we relate to cars? It's like Airbnb. No, it's Airbnb for cars. Jeez. Yeah, Uber for cars. Is Uber for cars. Okay, all right. Nice try. No, I love Korea. Okay. Did you plan that? Okay, now, so, Quentin, if you haven't heard about Turo and where was I this last week? Oh, I was in Juneau, Alaska. Little Alaska trip this last week, have some guy time. And one of the people we talked to said, we just use Turo. And I was like, what? And I didn't know they had Turo and Juneau. And so you can take your car and put it in a rental pool like Airbnb, and if it's not being used, you use your freaking car. But you can say when it's available, and someone else can rent it, like your home in an Airbnb scenario. So, Quentin, what we would do is find out the percentage of business use. So we take the days of rental use, and, boy, there's some strategies that are pretty cool here, because people do this with RVs. There's an argument under tax law that if I make it available for rent, 365, 24. Seven, if it's available for rent at any moment, it's 100% business. You can depreciate the whole thing. Then you get to use it when it's not being used for business. Now, that's a kind of a tax law that's been exploited, used, and abused. But there's some great nuances to that. So if you've got a car or an RV and a program, a rental program, darn right we're writing that off. Okay, let's go to Michelle. She says, what are your thoughts on the Biden administration proposing that the IRS now monitor your bank accounts for deposits or withdrawals, transfers of $600 or more? Michelle, there are so many crazy. Sorry, I don't want to say crazy. There are so many different proposals out there, some with valid reasons, some with not that. And I haven't heard of this one. I mean, I'm all into laundering money, so I would not be into that. So I don't need the IRS looking at my bank account. I mean, I have a little boat dock down in the Ozarks. It's pretty cool. You ought to check it out. You can come up with your boat, gas it up. It's great deal. And now here's the thing. In the Biden proposal, they are allocating over a billion. No, it was like 50 billion. What was it? It's. I've got it. Oh. It's on my notes at home to give the IRS to audit. More people are rich. It literally says that here's money to go audit more people, but you can't audit regular people. Almost $50 billion. Now, whether or not they're going to monitor your bank accounts, I think there's some privacy issues there, but whatever. Okay. Nathan says, mark, can I come to you after Moses happens with AMC and gme, or can I reach out to a prepper? Okay, so Nathan's asking about his stock trades and some crypto, which would relate to this, too. And he says, can I reach out to you after I have these big gains in my retirement in my stock or crypto? The bet. The sooner you plan with a tax lawyer, the better. Because if you sell it before you come to me, I don't have any strategies. We're done. You already sold it. You already ripped the band aid off. So I want to look at what you're doing and what the plan is and the timing of it so we can help with the tax strategy. So if any of you are holding a highly appreciated asset, whether it's real estate, crypto, stock, an ipo, make sure that you're talking to your tax advisor well before you sell it. Because once you sell it, game over. Someone said mark for president. Mark for president of the local golf community club. You know, maybe. You guys are so kind. Ooh. Okay, Jared's got a good one here. Jared Hamp. He says, can you ride off a boat for a recreational rental business? Hell, yeah. I started a paddleboard water toy rental business in Wyoming. Love it. Except Wyoming's freezing. By the way, two nights ago, I was in Jackson Hole. Love it. And want to expand to the motor toys as well. Jared, I started a business like this about 20 years ago with some partners. It was really fun. We bought in some four wheelers and some side by sides and jet ski and a few things like that. So, Jared, you're right on all of this equipment you're buying for a recreational equipment rental business. Get an llc, make sure you have good waivers, good contracts, good deposits and money receipt and payment procedures. Check in, check out damages, good insurance coverage. But it's a great business. And the cool part is, Jared, you've got to go out and test those pieces of equipment to make sure they're working all the time you want to make sure they're fully functional, you know, before you rent them. I mean, that would only be normal. So. Tammy from Virginia says, since we're watching your video, are we all going to get audited now? No. Now, you know, here's an important point. Oh, and I want to answer questions about Justin, Justin Young here. Okay? Now everybody, that was a fair question mark. If I'm watching you, is, are these high risk strategies you're talking about, Am I going to get audited? No, I'm sure that was in jest. But people, you are the captain of your own ship. You sign your tax return. If your accountant is too conservative, if they're not bringing you ideas, if your only ideas are screwing around on TurboTax and Googling for a half hour the night before you do your taxes. That's not tax planning. Every client that pays me money, I want to save them. 10, 50, 100 times that. And somebody go, well, your law firm is $1,000 to set up this S Corporation for my business. Yeah. And I'm going to save you five times that the first year. That's what a good tax advisor does. And I have, I'm licensed in six states, seven states now, I don't know, we've got. I'm a member of the AICPA. I carry $2 million in malpractice insurance. I want to be a CPA for the next 20 years, 30, I don't know how long. And the point is, you getting audited is not good for me. And you know what? Any person's tax return we sign if you get audited, and we were wrong, we pay for all the penalties and interest and the cost to defend you if we were wrong. Now sometimes your number just comes up. Not our fault. But if we screw it up, and I have a strategy that I'm talking about here, and it's wrong, I pay the bill. That's what your CPA should be doing anyway. So you let. By the way, at our workshop we're doing in Dallas in two weeks and then our summit, we're doing an IRA summit in Phoenix next month. We have over 100 attorneys coming, same number of CPAs. We have regulators from different state agencies come to our workshop. I have IRS agents come to my workshop. It's a little nerve wracking. There is once this woman from the cid, which is a criminal investigation division. That's where they have that cool Velcro patch on the back, you know, and then. And she's packing heat. I had an IRS agent in my class packing heat. And talk about intimidation. You know, it's like being at the football game, trying to go to pee in the, you know, some big guys behind. I don't know. That's a guy thing. But anyway, the point is, I was like, what are you doing here in my class? And she's like, we don't learn this stuff at the irs. I love it. I'm a small business owner on the side. That's your IRS agents. One in three Americans have a side hustle with COVID Some estimates are up to 45% have a side hustle to make ends meet. Those are IRS agents, too. All right. Okay, we're going back to. Where do I want to go? Justin. Where's he at? Oh, there it is. There is. Oh, keep going up. Justin Young. And then he. He did something there. Oh, there it is. Okay, okay. Justin Young says already Charitable Remainder trust trusted. Oh, okay. So Justin already set up a crt. My crypto and forex gains. Lol. Justin, my hat's off to you. There you go. Good job. For those that don't know what a CRT is, it's an ability to take your highly appreciated assets, contribute them to this charitable trust where you determine when you die, where the money goes. But until then, you can build it, grow it, and you get income from it, asset protected for the rest of your life. And you can continue to buy crypto, put additional crypto into it. It's called a nimcrut, a net Income Charitable Remainder Unit Trust. And we charge five grand to set these up. And if I don't save you 500 grand in taxes, we did something wrong. So talk about a rate of return there, baby. Okay, where we going Next in our Dr. Kramer. Cute pick. Love it. Abolish taxation. Wow. How can we start lobbying to abolish taxation now? I want to talk to Dr. Kramer here now. One big push that was about 10 years ago was Steve Forbes wrote a number of articles and was on the trail saying we need a flat tax. This tax code is too complex. Guys, I'm not just trying to protect my job here. Helping people save taxes. Taxes do some good things. We just don't want to pay too much in taxes and have too much of the government in our lives with our tax money is kind of how I feel now, but am I opposed to taxes altogether? No. Taxes pay for national defense. They pay for roads. They pay for teachers. They pay for education. They pay for health care subsidies. They pay for a thousand things. Taxes aren't all Bad. The problem is we need to get engaged on how we can limit our taxes and use our gains more wisely to build a better financial freedom in our life. I mean, just, it's so don't, don't get too hard on taxes. All right, how many more questions? One, two more. Two more questions and then Corey is going to give away four books. You ready, Corey? Start getting your names. Okay, Laura, S says if a freelancer created an S corporation, can they only run future income through it or can they include money earned prior within the same year? If their 1099 shows the S corporation is the recipient, no LLC. Sad face. Now Laura knows I'd like the LLC backdated S election. So she knows I was going to go there and put a little sad face. Okay, here, let me show everybody here what Laura's talking about in our. Here's our master plan. So this is our trifecta. We want this S corporation to kick out income to us where we get what's called a 199A deduction. No FICA. We don't want the F word. What? The FICA. We don't want any of that. So 199A, no FICA and all of the pass through income flows down into our 1040. That's why s corporations are awesome. You do have to take a little bit of a W2 and I have a table and write articles upon articles on how much that W2 needs to be. And we stand behind our advice on that. And then your W2 can also fund your own little 401k. So if you're a freelancer, the S corp is a great way to go. So Laura, you're right on. Now the break even point is when you're netting around 40 grand in some states like California, New York, we have some other issues because the franchise taxes and the New York City tax does not recognize S corporations. So we got some things to play with there in certain jurisdictions. But 99% of the time around the country we want to be an S corp. Okay, now here's the problem with Laura. I mean, Laura, you're wonderful. You don't have any problems. Here's the problem with Laura's S Corp. Okay, we are sitting. Okay, so we have four quarters here. This is January through March, March through April, May, June, July, and then July, August, September, October, and then we turn the corner and we're back around in January. These are our four quarters. Now as a small business owner, you start to learn about Q1, Q2, Q3, Q4, because you've got to send in tax reports four times during the year at the end of each quarter. That's how it works. So when you're a small business owner, even if you're just an llc, we have to start estimating how much tax we're going to send in. You might use a form 1040es to send in these little payments. Now, if you're an S corp, I get rid of the 1040es because we're doing a W2, and I replace it with a 941. So you're going to do these 941 reports every four months. I mean, every three months, four times during the year. So it's really in April. I'll put that here. April, July, October, and then in January. Okay, now hang with me, everybody. Let's see, where are we? We're about right here. So we're sitting right on the cusp of October. And so here's the problem Laura's facing. And this could be a for a lot of you. She's going, well, Mark, I made a bunch of money this year, and they're going to give me a 1099 at the end of the year. But I wasn't an S corp during this period. I was just a sole proprietor. And Laura, technically. And the answer is, because I don't want you to get audited. And if an IRS agent is watching, I don't want to tell you something that's not true during this period up until the point where you pull the trigger and you become an S corporation. So this is our smiley face. This is where we want to be this whole period. This first three quarters of the year, you're SOL And I'm not talking statute of limitations. So you're going to pay out the no's fica. Now, Laura says, well, I can go to this person that's going to give me the 1099, and they'll write the 1099 to the S corp as if it was all gear. You can do that. That's called cheating on your taxes. And if you get caught, it's not good. If we know that's what you're doing, we can't sign your tax return. But it doesn't mean all is lost. Now, you know, Laura, you've probably watched some of my videos. We want to set up this S corporation immediately so that you're saving as much as you can in fourth quarter, and then you turn the corner into 2022. Lean and mean, ready to go machine. Boom. So I Hate to tell you, Laura, it's not the answer you wanted, but get your S Corp going right away in the first three quarters of the year, you're shot again. If some of you are finding this helpful, please subscribe over on my YouTube channel. I've got so many killer videos on these topics and on Facebook as well. Okay, are we said two questions. Damn it. Okay, should I do Jared Butler or should I do. I already did. Michelle. Ooh, aesthetics Michelle. Oh, my gosh, I got to say this. Michelle Rukian. I'm sorry if I butchered that. Michelle says aesthetics or esthetician is a good business. Guess what, Michelle? My one daughter, Sydney, is a realtor. Who. My other daughter, Molly, is going to esthetician school right now. She asked me to come in today to get my back waxed. Not something you want your daughter to see. So I tried to save her the emotional trauma of that. I said, find something else. So she found some bum off the street to practice on. But anyway, so. But she's going to esthetician school, and I can't wait to open her spa. I'm like, hurry and graduate, because we're going to open a spa, you know, and I want to have her run this sucker. It's going to be awesome. So that's going to be a great small business. Love real estate. So many great comments here. All of you are making great, helpful comments to each other. Okay, so private nurse for plastic surgery clients. Cece, that was an audit I just helped a client with two weeks ago. In California, a private nurse goes into different surgery centers and works for plastic surgeons on call, and the surgeons were giving her 1099. One of my surgeons got audited by the state, and they said, nope, you're supposed to w2her. I'm taking it to appeal all the way up to top of California. So, Cece, if you want to follow that, I'm going to be doing a podcast just on that. No. Eminem. Irving. Eminem. Irving. Mark, did you actually read the whole bill? Hell, no, I didn't read it. I'm just reading summaries. Look at this bad boy. Okay, for those that came in late, 883 pages. I'm not going to read this thing. But what I do, though, is I get summaries and pieces that relate to me that I care about. For you, I do the heavy lifting. For you, I take one for the team. So if you can't sleep tonight and you want to kill your about five printer cartridges and two reams of paper, go Print out the sucker now. But I will say, remember, this is only the House version. The Senate version is going to come out. Then they're going to reconcile. There's going to be more debates. But if you don't like something, you see the link is down below. Comment to your congressman or congresswoman. Comment to your senator. And please, I'm going to put it back up here. And we're going to give away books. Tell them to get rid of these sections. Please tell them. Save my ira. Just put that in the. In the subject line of your email. Save my ira. Okay, books. Okay, Corey. Business Owner's Guide to Financial Freedom. Who's our winner? Alex Smith on YouTube. You know him? Oh, yeah, that's Alex Smith, the Hall of Fame quarterback. He's watching today. Alex, we love you. Yes, he is. He's in my book. He'll be a Hall of Famer. Where's my shirt? Give me my shirt. Okay. Give it here. Right here. What? It's right down below you, Darren. On the right there. Okay. I just. Since we have Alex Smith watching the show today, I, you know, the guy said, mark, you got to be more professional today. But I almost wore my University of Utah shirt today on the show. There we go. Go Utes. Go ute's. Yes. They lost to BYU last week. It was demoralizing. Okay, the self directed IRA Handbook, who we giving it to today? Andre Smith. Andre Smith. Okay, now is that. That's not Andre. Andrea, as a woman. This is our two male winners, Andre and Alex. You thought Alex was a girl. You weren't even thinking of Alex Smith, were you? Everybody thinks about him. Freaking Prescott and the Dallas Cowboys. No one's watching. All right. Okay, next winner, the Tax and Legal Playbook. Danny Torres, Danny Torgerson. And see, that could be a female, too. Yeah, these names are hard nowadays. Danny. Yeah, Adronomist names. We're being saved. Danny, winner of the Tax and Legal Playbook. Now, any of you that are winners, you just email Corey. C O R E Y. I better write it down here for everybody and say I'm a winner. Now, if you want to tell Corey you're a winner, you can do that. But it's coreyarkjkohler.com. yeah, don't encourage that. If you're single, Corey is available. He's very good looking. Do you want to come on screen? Come tell everybody. Okay. Okay. What Your CPA isn't telling you. Michelle. Recording. You could do reco. I screwed up her name. Michelle, because I cannot pronounce your last name. You have the winner of what your CPA isn't telling you. Congratulations. Now you're going to know what your CPA isn't telling you because you were wondering. Well, I answered the question right here. Boom. Well, everybody, thanks for watching this week. I'll be back here Thursday. Don't forget to subscribe. Give me some five stars. You get my books on Amazon and at markjkohler.com where you can email Corey markjkohler.com you can sign up for my workshop in Dallas, Chicago, Orange County, Honolulu, Phoenix. The link is down below. And we are, we're only allowing, I think we have a one day in Dallas that's 25 people. I think it sold out today, didn't it? But we have 100 people limit on each location and a couple of them are almost sold out. Sold out. So if you want to come to a location, we will be doing a virtual broadcast in December. We'll talk more about that later. But if coming out in person is fun, I provide lunch. It's a one day or a two day. You get to choose. You'll have a lot of fun. Thanks everybody. See you next week.