Everyone should EXTEND their Tax Return- Change My Mind | Mark J Kohler LIVE

Okay everyone, tomorrow is April 15, tax day and some of you may be freaking out. I gotta file an extension. Should I file, should I not? What do I need to do? Well, I'm here to help answer these questions today and tell you filing an extension is freaking an awesome strategy. It's a good thing. I also have four important tax strategies with the sub strategy of five more. So what is that, nine or 10? Anyway, I got some awesome tax strategies here to save you some money that you need to consider before you file. Filing an extension is okay. You want to prove me wrong? Throw down. Let's do it. Any CPA attorney enrolled agent out there, you want to tell me that filing an extension is a bad thing? I'm all ears because I'm ready to argue this every day and twice on Sunday. Let's do it. So I'm standing up today, but back's been killing me. I'm ready to rock now. I'm a CPA attorney, author, podcaster, YouTuber, whatever, just loving the American dream. Now let's get some facts on the table this year because April 15 is on a Friday for our reason, we have until April 18th on Monday. So first thing, anybody watching right here, do not stress you can file your extension online or via mail on Monday, April 18 and if you need to make a deposit, you can do that on April 18th as well. So you got the weekend to breathe. I want to give you some strategies and ideas here. They're going to help you out a ton. Number two, I'm going to give some stuff away. I've got my 2022 MJK calendar. I've only got a few left and I want to get rid of these and they're so helpful. I've got tables on tax rates and all these cool little data points on tax tips and numbers, maps on asset protection and all sorts of goodies on your LLCs and corporations. Build your 10 year plan, your strategic plan and every month a mindset message to help you with your business calendar, dates for your company registration at every state level and your anyway gonna give one away every 10 minutes. Corey, 15 minutes. I'm gonna give these bad boys away to any of you watching. Now another thing, please on the chat, I am not messaging anybody making any posts on this chat, trying to get you to buy any sort of cryptocurrency, sell you any cryptocurrency, invest with me, any cryptocurrency, take on any strategy of mine in any way, shape or form, whether real estate or crypto. These are scams they're going to come through on a Facebook post. Watch out. Do not listen to them. Also, if you see anyone else trying to go, oh, I'm making money on Bitcoin or I'm doing something, it's a scam. Just enjoy the presentation today. Have a yellow pad handy. I want to throw down some great things. Now, let's start hitting some of these questions. Nelson, hello from Dallas, Texas. I might be in Dallas tomorrow. Nelson, so nice to hear from you. Nicholas. Olivia. Nicholas, Livia says April 18th by midnight. Yes. April 18th by midnight is the deadline. I don't want you to push it till midnight on the 18th. But that would be the deadline. Steve says. Hey, Mark. You taking new clients? We does a tax law firm helping you get your entity, set up your estate plan, your asset protection plan, privacy plan. Build your trifecta. Do a consult. Make sure you got a checklist for the year. Absolutely. Take in new clients. Sometimes an hour consult is all you need. We're helping clients around the country probably get a consult in the next week and a half, two weeks at most. We can look at your overall plan. Get your LLCs, corporations dialed in, get you on company maintenance, hide your address from the public, whatever you need. Get a consult. Call the law firm. KKOS lawyers.com KKOS lawyers.com Corey will put it down in the description or someone here in the chat. As for the accounting firm doing your taxes this year, we've got a wait list. We're swamped. And that's okay because this is why you might file an extension. I may even give that as tip number one. You want to file an extension to get with the right tax preparer. If you don't have the right one right now, don't rush to go file your taxes on TurboTax this weekend or on Taxlayer. If you're not ready to do it, it's okay. So, before I hit a couple other questions, let me give you the first myth. You actually reduce your chances of an audit by filing an extension. Now, here's what an extension does. Corey, can I get to the whiteboard? I'm just a visual guy. So those watching here, of course, this is a live broadcast, so you're watching here. So if we take this, our little pick here. There we go. So we've got our year laid out in front of us. We're in four quarters, January through March, April right here. April 18th. What's going on here with my pen? My stylist is all jacked up. Let's do that. Okay, Try that Better. There we go. Okay, so here we go. We're right here on April 18th. Now your tax returns typically due as an American citizen by April 15th. Now if you file a Form 4868, there's no cost to file the form. You can do it online with any type of service and you have an automatic six month extension to file your return. And I'm going to put it right here. Yeah, it's going to be about right here, October. And I want to make sure we get this year again. October falls on a weird date. October 15th is a Saturday. So it's going to be October 17th on a Monday. So we have April 18th on a Monday to October 17th on a Monday. So if you file this extension, you buy yourself six months to do a better job on your tax return. And I'm going to give you some tips to consider to save your taxes. There's no cost. Now, why do you reduce your chances of an audit? Because the IRS works on a freaking first come, first serve. By the time I file my tax return in October, they've already assigned all the audits for the year. Hey, anybody want an audit? Go ahead and file. We're assigning them right now. Hey, you're busy. You're not busy. Well, filed audit this tax return, audit that tax return. People, when you file your tax return on time, you're getting in the queue for a possible review or audit under the IRS computer system or a live person. So the longer you take to file, you just by statistics reduce your chances of an audit. And all of the major tax software and research companies out there show this that the later you file, the less chance of an audit and it doesn't cost you. Okay? Now here's the other myth. Well, Mark, I owe taxes, so I've got a file by April 15th. New you can file your 4868 and send in with a deposit. Now with this deposit, you're going to try to estimate how much you think you owe. Now this is not estimated taxes, see right now. And I'll put this in red and you know, hopefully. Everybody pay attention. This is so important because this actually saves you money when you're organized this way. You're going to make estimated deposits on April 15, July 15, October 15 and January 15. You're going to make deposits of what you think you owe for 20, 22. Let me just erase this mess up here, okay? Now by the way, everybody, thank you for your comments and questions down there. I'm going to hit as many Questions as I can here in just a moment. But here you're making deposits which are estimates for what you think you're going to owe in 2022. Okay, that's not your, your 4868. Your 4868 is your extension for your tax return for 2021. So that's what we're really trying to deal with here is 2021, your. Your income tax that you still may owe. So you're going to send in a deposit. Now, I've got an article, it's on my blog, and Corey's going to put it down there in the chat, and it's titled how much should I send in with my April 18th extension? There it is. How Much should I Send in with my April 18th extension? And I've got five different options of how to calculate this. And you can just. And I'm going to summarize these here a little later here in a moment of how much. You can decide how much you need to send in. You may not need to send in anything at all. Now, some of you go, well, there's a penalty. Let me tell you what the penalty is. It's a half of 1%,05% per month you don't pay. So you know what that is? That's 6% per annum. Are you paying more on a credit card with that? I mean, that's not bad. That's the penalty plus 6% interest per annum. So you get a penalty of basically 6% per annum, but it's only, it's only charged per month. So if you take an extra two months to pay your taxes, you still file an extension, but you didn't pay at all and you still owe. And so come, you know, what would that be? June, you send it off, you're going to pay 1% in penalties. So if you owed $1,000, you would have $10 penalty, not the end of the world, plus 6% on the penalty. So you'd have 6% on $10. And that's what you would owe for not paying on April 15, $1,000. See, it's not the end of the world. No one's going to jail. It's cool. Now why do I want you to file a freaking extension? So you can get your crap together, so you can go comb through your receipts, comb through your tax returns. And especially for all of you out there doing cryptocurrency, you're probably freaking out this weekend. How am I going to figure out my capital gains and my trades and all this and I need to download tax bit. And I've got to get my software set up and my accountant's waiting for all this. Take a breath. Send in a deposit of what you think you might owe. Five grand, ten grand, two grand, one grand. I don't know. We'll come to some options there. Send in a little money, file your extension, come to the crypto tax summit, babe. Next month. I'm sorry. Yeah, next month. This is going to be May 19th and 20th. Keep thinking. We're in May already. Okay. May 19th and 20th. Come to the summit. Learn some strategies about crypto taxation, then file your tax return. Later this year. We're doing a real estate tax summit. I've got my annual workshops I'm going to be doing around the country. Building your business, the best tax strategies you could file a. File an extension and do a little education on some additional write offs. Then go file your tax return. And if you think you're going to owe, send in a little deposit. If you send in too much, you get a refund. Or if you send in too much, you can apply it to your estimated payments so you don't have to make as big an estimated payment later in the year because you can take your overpayment on your extension. Now. That was deep. That's a really cool strategy. We may come back to it. But here's my point. Everybody hear me out. And Corey, I need some winners. I'm going to give away two calendars. I waited too long. But here's my point. There's no fee to pay the IRS to file an extension. Number two, you reduce your chances of an audit by filing extension. Number three, you can do it yourself. It's online. Freaking easy. Form 4868. And number four, you can dig up more write offs, do a better job with your tax return instead of. And save more in taxes. What's the freaking problem? Someone want to argue with me on that? I'm open to it. All right, so a couple comments over there, Mark. I want to consult with one of your tax lawyers. They can look at my tax return, give me some tips for the new year. You may be only out 4 or $500. You may build a trifecta. We have a trifecta review. 1200 bucks. We go through your overall plan, your tax returns, very affordable. And we want to save you 10 times whatever you pay us if you want to make a consult or set up a consult with one of our lawyers. 888-801-0010. That's kkoslawyers.com Now I want to call out the scam artists that are out here on the chat trying to get people to do some cryptocurrency. And they're also using my face on a post. Damn you. They're scams. Watch out for this. This is not us. It is not me. Ignore it and pay attention to the presentation. All right, Corey, who are my winners? First one is Jocelyn. Jocelyn Montabla. Montabla. Montablo. Jocelyn Montablo. Okay, so you're gonna. Any of you winners, I'm gonna say it now. You're gonna email Corey arcjkoler.com He's my producer here in the studio today@markjcohler.com. give him your name. Corey's written it down. He'll verify it's you and he will send out a calendar. And do we have a male winner? You got to go male, female, male, female. I know Cory's trying to flirt with some of you here, but we got to go with the guy here. Nicholas O. Levas. Nicholas Olivas. Send an email to Corey arcjcohler.com you'll get a calendar out in the mail. It's on me and people. If you want to buy a calendar, get to markjkohler.com I think they're 25 bucks. It's got all the tax tips and strategies and deadlines for the year. A motivational message every month. It's awesome. Build your 10 year plan. You're gonna love it. Oh, and Jocelyn's already a client. Thank you, Jocelyn. All right. Okay, now I'm gonna go through. I have another article that's right there on my blog right now@markjkohler.com. it's the number one article right now on the blog and it's titled last minute Tax Strategies before filing. Pretty straightforward. So I'm going to give you these different strategies and go through those. But let me do a few questions real quick. Okay? I feel bad for some of you that your names are being hacked. Someone says, wow, who knew something like this was happening? Oh, my gosh. Bitcoin or whatever. Do not click on those. They're scams. All right, who was the first winner? Was it me? Sorry, Marco. It was not. It was Jocelyn. Okay, next. Corey, can you give me a question here? Paul Junk says, sorry, I got moved around there. Okay, Amal K. Says, can you please talk about the charitable remainder trust? Amal, I've got two to three videos on YouTube right now on the charitable reindeer trust. It's at least a 15 minute conversation to do it justice. Please watch those. After this presentation, we do a $200 consultation with my personal law clerk to see if you're a good fit to answer your initial questions about the crt. If you move forward, you work with me, Mark Kohler, to get your charitable trust done for your real estate or your crypto asset protection. No sale on the, no tax on the sale of the asset and a stream of income the rest of your life. Watch the videos on the CRT. Just go, just YouTube CRT Kohler, whatever. Watch those videos and then set up a half hour call with Max. He's at my office again, 888-801-0010. And then if you, if you guys decide it's a good fit, we apply that towards the cost of doing a crt. We're off to the races. You're all me. Okay. Okay. I'm going to take some hard questions here. Oh, here's an easy one. Jocelyn says file 4868, extension for 1040s. That's correct. All the business extensions have already passed. Ian says, Corey, can you move the screen a little bit to my left? I appreciate what this guy's these guys do, but they wouldn't have a job if we had competent regulators and a fair system for us all. Okay, Ian, I want to take that on. I don't mind saying that. So I'm going to rephrase what Ian's saying. He appreciates Mark, but you know what? If our government was more organized and whatever and it had a fair system, we wouldn't need tax lawyers. Ian, I disagree. Of course I do. Right. But let me tell you why our government motivates people to do things through tax incentives. Put in handicap access in your building, receive a tax credit, go invest in solar energy, get a tax credit, buy an electric vehicle, get a tax credit. If you make too little income, get a tax credit. If you own a small business, you get a write off for this. Oh, you own a small business. We're going to give you 100% write off on dining to help restaurants in town because of COVID Steve Forbes once argued for a flat tax. Let's just tax everybody 5%. It's a postcard. Everybody sent in 5%. Well, you know what ends up happening is people that are at a lower income level end up paying a larger portion of their income in taxes than the wealthy. So a progressive system is going to tax more wealthy people without a flat tax. And I, some would argue that if you make more money, maybe you can pay a little bit more to help out those that can't make enough money. Now, that's a very contentious argument. But, Ian, that's one of the principles out there, and a progressive tax system. And when we motivate the country to do things with tax incentives, there's got to be someone there to explain it, to give you. And you want to call it, I'll call it a loophole, a strategy, whatever you want to freaking call it. My job is to help you pay the least amount in taxes to put away more money and protect it. That's my job. Now, you may think, well, the government should do a better job of making it easy and simple. We don't want it easy and simple because we want to motivate our country to do things through tax incentives, which opens up the door to strategies to put away more money to build wealth. So, Ian, embrace it. It's a good thing, not a bad thing. Okay, I'm going to jump over. Corey. You got to go a little slower. But if I'm starting to read, are you going down or up? Stop whatever you're doing. Okay, what if already filed my return before I realized I had some taxable crypto events and didn't include them? Oh, John, I love you. John Godfrey, an old friend. John says, now, everybody, this is very common. What if I already filed my tax return before I realized I had some taxable crypto events and I didn't put them in my tax return? Everybody, if that happens, you want to immediately file what's called a 1040X. A 1040X is an amended return, and this is a way to get good with the irs. Say, you know what? I screwed up. I didn't file my tax return correctly. I want to be honest. It's. We're on a honest based system here in the United States. So you Go file your 1040 X and you check the box. Yes, I had crypto transactions and here's how much I owe. Now, if you've already filed your return, you don't need to file an extension. They already have your return. You can amend your return up to three years. Up to three years, you can amend it now. Hold it, everybody. I don't want John to wait three years to amend his return because if he owes, the failure to pay penalty, remember, is a half a percent per month up to 25%, and then it caps at 25%, plus interest on the penalties. So if John ended up owing taxes, you want to amend this right away. So, John, come to the crypto tax summit. Learn some strategies. Amend your return, file it, pay the tax if you owe. Now, even if you. Everybody, if you already filed your return, you're like, well, I didn't owe any taxes, but I had crypto transactions and I didn't check the box. Amend your return, check the box and send it in. You do not want to lie on your tax return. People go to jail if they file their tax return and commit perjury by not checking the crypto box, which is first page. All right, Ryan says, tell me how to pay $735 in federal taxes. Or better yet, none. Ryan, I want you to pay 200 grand in taxes because that means you may be made a million dollars. People, the more money you make, you're going to pay some damn taxes. I pay taxes. Mark Kohler pays taxes because I want to make money. It's okay to pay taxes. Ryan, your question should be, Mark, teach me how to pay the least amount in taxes and help me make the most fricking money I can. That's the question, Ryan, everybody, that's what a good tax advisor should do for you. Help you make as much money as you can. And as an attorney, I want to lock it down and asset protected and then pay the least amount of tax. It's okay to pay tax. You're going to pay some tax. I want to pay tax. That means I'm making fricking money. All right? Override says if I take out a defied loan for fiat currency, is that taxable? No. If any of you out there, let's use a real estate, piece of real estate could be your home or a rental, and let's use some bitcoin. So if you take out a second mortgage on your home and you take out a hundred grand and you go invest it, because I don't want you to go play around the world on a world cruise or whatever, you're going to pull out that mortgage. There is no tax on that loan. Now, if you go invest it and make money, you're going to pay tax on the money you make. But you'd never pay tax on the $100,000. You're going to just pay it back. Now on Bitcoin, if you take out a loan, a defi loan or whatever against your crypto, a loan is no tax. Now, if you want to take out the loan and go make money, you'll pay tax on the money you make. But you can borrow against that boy, Corey. Okay, I bought a C corp. How do dividend payments to pay the note affect personal taxes? I don't know what that means, Scott. I'm sorry. I'm going to move on to some other questions. Corey, can you scroll slowly till I tell you to stop? Ilana says, can you file a 1040x for past returns? Yes. For up to three years. So if I had a call with a client last night that needs to file an amendment for up to three years because her accountant made a mistake on their tax return, so they're going to file an amendment and get a refund. That's all good. Okay, can you generate how it pass through on any. Okay, Tony says can you go down. Corey, just keep scrolling. By Tony says, can you generate yield on your crypto in an LLC and have it pass through the entity? Yes. Now, everybody, let's do our trifecta. Okay, you knew I couldn't get through a podcast or a presentation or live without a trifecta. So here's your trifecta. Here's your revocable living trust in your 1040 tax return. Remember, all your money flows downhill into your 1040 or your trust, we split your life in half. We put operations over here. Now, your W2 is going to be outside the box. If you have a day job, that's cool. But you've got your assets over here. And the question was, if I generate a yield on my crypto. Okay, so that means someone's staking. Now, I've given done YouTube videos on staking. Make sure you type Kohler staking crypto. I've got some tax tips on that. We're going to go over it for an hour and a half at Crypto Tax Summit in Miami next month. But what Tony's talking about is yield on crypto through staking. Now, everybody out there, if Tony puts that Yield through an LLC, does he save taxes? No, LLCs do not save taxes. So why might Tony do this? So if Tony has an LLC and he wants to put crypto in it and create do some staking, that's great. The LLC is for asset protection. So if he's driving down the road, texting and driving, and gets in an accident, it might be hard for someone to get it as million dollars in crypto. That's why we do consults on asset protection. But in this situation, there's no tax savings. Running staking through an entity like an LLC is not going to save you taxes. Now, if you're doing running the nodes and you are the staker and running the whole operation, you're going to run it through an S corporation and that will save you some taxes. But those are the people that are doing all of the staking, directing it themselves. Abdale says thank you for your videos. Thank you. I appreciate you. Okay now. Oh, what was that coaching question down there, Corey? Okay, all right. Kimberly says and everybody I like this. This is a great question. Now I okay, don't go anywhere. I'm going to give away two calendars after Kimberly's. Kimberly has questions and I'm going to give you my Is it five? I think I've got five here. Five different tax strategies that you need to comb through your notes for last year. If you extend, let's make sure we nail it. Okay. So Kimberly says I'm starting a coaching business. Do I begin with an LLC or S corp? Well Kimberly, I love it. I'm a firm believer in the coaching strategy, especially on life coaching. Just love it. So I wish you the best in your projects. So anybody out there starting a coaching business think the first thing is is that investing. Is she buying a rental? Is she investing her stocks, bonds or mutual funds in stock bonds, mutual funds or crypto? Nope. She's doing an operational business. So in our trifecta we're going to be on the operation side. Now if she goes out and just starts as a sole proprietor and she makes 50 grand net, so maybe she brings in 70 grand. She has 20 grand in write offs and she nets 50 grand. Okay, she's going to pay self employment tax of 15.3% on that. That's 7,500 bucks and self employment tax. Then Kimberly is going to pay federal and state. Wow, not good. Now I'm glad she's out there running her own small business. She's making money. That's great. And we're going to write off as much as we can. Maybe over here I'll put it in the color red. Maybe we can drum up even more write offs than 20 grand. If she's watching my podcast and getting my vids and books, we're going to write off a lot more. But what we're worried about is this self employment tax. So the strategy is everybody is that she's going to go straight over to an S corp and do what's called the W2K1 split and I call it sometimes the salary dividend split. I've got videos on this. I have what's called the Kohler payroll matrix and I teach you how to take the right amount of payroll to stay out of hot water with the irs. And save self employment tax. And it's a legitimate strategy. Don't let your accountant talk you out of it. I forget how to client this last week. Their accountant had been filing them as a schedule C for years. Thousands of dollars in lost savings. Now, Kimberly, if you're not making 50 grand yet, what I would recommend you do is be an LLC and then start your business, see how it goes, make some money, and then convert to an S corp when the time is right. Now you may say, well, Mark, I won't do an llc. I'll just set up an S corp when the time's right. The problem is, when you finally figure out the time's right, you've already made the money. The beauty with an LLC is I can backdate an LLC into an S corp up to a year. You accountants out there, do not worry about the 90, the 75 day rule. There's ways around it with the proper rev ruling. We've been doing it for years. So you can backdate to the beginning of this current year and you'd be fine. Okay, I want to give away some calendars. Corey, who's our winners? Mike Strong. Mike Strong wins a calendar. And if you're a winner, make sure you email coreyarkjkohler.com and who's our other winner? Corey? Ileana Ramos. Ileana Ramos. Congratulations. Marc J. Kohler calendar. I've been doing it for three years now. It's more lightweight and easier to use than the Dave Ramsey calendar. It's got all the tax tips and strategies and deadlines you need. And I love Dave Ramsey too, but my calendar is pretty awesome. All right, now what are my five tips? Okay, everybody, you're going to extend your tax return. You're going to reduce your chances of an audit. It's not going to cost you. You're going to send in a deposit if you think you owe the irs. Oh, we need to go back and talk about how much to send in. But what are the five strategies that I want you to think about when you go back to look at your notes for last year? Well, just like Ileana, there are. Kimberly. Sorry, Kimberly. She's starting her coaching business. Any of you that had a side hustle, Estimates are now that 45% of Americans have a side hustle or a side gig. They're making a 1099 on the side. So what? And you got to report that. Everybody. Here's how a 1040 works. You've got your, your 1040. You've got. If you have a small business, it comes in on a schedule C. If you have a rental property, it comes in on a schedule E. If you have crypto, it comes in on a schedule D. Is that interesting? If you have interest or dividends, it comes in on a schedule B. If you have a farm, it comes in on a schedule F. So any of you out there that had a 1099 last year in 2021, what I want you to do, and I'm going to put it in red, I want you to go out and dig up every expense you can. I want you to go through every credit card, every checkbook, every receipt you can find, PayPal, Venmo, anything, Apple Pay, anywhere you may have paid for a business expense. You don't have to have an llc, you don't have to have a corporation. You don't have to pay for out of the business account. I don't care if you paid for it with coins. Gold crypto. If you paid for a business expense, it is a write off on your tax return. And we're going to put it here on your schedule C. You're going to put in your 1099 and you're good. Now, some of you and I had a business owner today and it pissed me off, say, well, if you pay me in cash, I'll give you a discount. Why is he doing that now? Maybe it's, well, I don't want to pay 3%. Credit cards. Nope. It's because they want to try to cheat the irs. We live in a country that's got a lot of great benefits. It's not perfect, but even if you don't get a 1099, it is your duty to claim the income. If you don't, that's tax fraud. And someday you're gonna have to go through the pearly gates and someone's gonna ask you, did you cheat on your taxes? And if you go, yeah, then you're going to hell. So just a little tax tip there. Okay, so what are my five tips? And this is in the article, my first article right now on my blog@markjkohler.com I'm gonna write them down and then we can answer questions on them. If you want. Travel. Oh my gosh. Every trip you took last year better had a business purpose. Dining, 100% write off when you're traveling, even by yourself. And if you're local and you're out talking business with a customer, a vendor, a partner, a employee, a contact, we're going to write off all your dining locally 100% with someone or traveling by yourself. 100% travel is a hundred percent write off when you're traveling for business. Number three, home office. Do not let your accountant tell you that home office is a high risk item. It is not. We have been helping clients write off their home office expense for years and years. I've never had a client audited yet on the home office. Don't take advantage of it, just be honest on it and it's a great write off. Oh, I love this one. Electronics, tools, supplies and equipment. This is all those goodies that you might buy at Best Buy, Apple Store, Staples. Every time you buy anything electronic, phone cords, earbuds, any books, printed material, speakers, all this crap around here, it's right off cameras, microphones, all of you should be posting on YouTube and Facebook. All of you should need a camera, a microphone, electronics, supplies, all of that is 100% write off in your business. And number five, auto. I love the auto deduction and at bare minimum, all of you should be doing mileage or actual. And actual is where you get to write off gas, repairs, maintenance, tires, oil changes and a part of the car mileage. You just get to take that write off. Now last year for 2021 it was 56 cents. So in 2021 it was 56 cents. So I want you to dig up miles on this car, that car, the truck, the rv, the motorcycle. If you drove a vehicle at your house for business, it's a write off. You say, well, my son owns that car or my spouse owns the truck, or my business is not on title. It doesn't matter. The IRS does not care. I do not care. Just give me a good record of all of your mileage on all the vehicles and what you used. You know that they were used for business. Freaking write off 56 cents a mile, 10,000 miles, that's $5,600 write off for last year. That means you could go earn $5,600 and pay 0 tax. See, that's how it works. I want you to come up with as many write offs as you can. And it let's just say you came up with $1,000 of write offs a month. Phone, cell phones, computers, laptop, Internet, mileage, home office, some supplies here and there, a little bit of dining. $1,000 a month times 12. Yep, that's $12,000. You now have carte blanche to go out and earn $12,000, take a $12,000 write off and, and pay zero tax. That's why small business freaking rocks. So there's my five tips and I want you to extend your tax return so you can comb through all of your records and maximize these write offs. All right, let's do some questions. Bought and sold Bitcoin at a loss. So so must I report. Yes. Any of you that did a transaction with cryptocurrency last year, even if you had a gain or a loss, you want to report it. And if you had a loss, you want to grab that so you can use it again in the future. Iceman says solar. And by the way, I love Top Gun. Top Gun. There's a little shout out there to Iceman. Sold my custom build home at a big loss. Can I recoup any of it? The answer is yes. The question is going to be how can I recoup any, any of that as a write off? Because it's going to depend. And this is where we would do a consult with you, Iceman is we'd want to say are you in the business of flipping real estate? Is this a passive activity or an active activity? How much time did you spend? What was your basis? How much money and time did you put into it? So we need to calculate what the actual loss was and then based on your personal situation is going to tell us if we can write it off all in one year or over time or or against other types of income. Most likely it's going to be 100% write off in the year you incurred it. That's what I would hope. So I spent get a consult. This is why again, extend your return. Take six months to get a consult. You can get with any of our tax attorneys within two to three weeks and have them help you out. Figure this out. Okay, next question. I'll go to Ryan. He says what about an inherited house refi to pay out siblings? Will this be taxed as capital gains? Well, I'm going to say generally no. Now this is pretty cool everybody. So I like Ryan's question if you and some of you might face this someday. So let's, this is good. Ryan inherited a house. So let's say grandma or parent dies. And I'm sorry, I don't mean to be cold hearted, but we're all going to die someday, I hate to tell you. So if you. In my business we deal with it all the time. So someone dies. Now Ryan inherited a house or did he inherit a house? I can already see in Ryan's question that he had three siblings. So here's Ryan and let's say that the house was worth $400,000. Okay? Now parent dies, there's four siblings. So we know it's not grandma because he said there's four siblings. So a parent dies, four siblings. And assuming that most estate plans are going to divide it up equally, so each kid is entitled to two up. Sorry, I was going to say 25 grand. It's a hundred thousand dollars. So let's put that in here. So we've got $100,000 each. Now, when someone dies, the family gets stepped up basis. So anybody that inherits it, it's stepped up, meaning that's now what you. It's like that's what you paid for it. So if you sold it tomorrow for 400 grand, you would pay zero tax because that's your basis, whatever you inherited it at. Well, what Ryan says is, well, I did a refi to pay out my siblings. Now why in the freak would he pay out his siblings? Well, think about it. Ryan got the house. The siblings want cash. Ryan's like, I don't have any cash, but I want the house. So he takes the house, refis it, rips out 300 grand, and goes and gives his three siblings each 100 grand times three. Ryan now owns the house. Was it fair? Yeah. The three other kids got 100 grand each. Ryan got the house. He has $100,000 of equity in it and a mortgage for 300 grand. But he's happy. He's got the house. And he's like, I can fix this up a little bit. I can make it worth more. All right. The other siblings are like, knock yourself out. I don't want to deal with it. The beauty is this. The kids do not pay any tax. Ryan does not pay any tax. The only time Ryan's going to pay tax is if he sells this house for 500 grand. Oh, now he has a $100,000 gain. And he's going to pay tax on that gain because remember, 400,000 is his basis. That's what he inherited it at. And then as it goes up in value, he'll pay the tax on the difference anyway. All right. Ray says, guys, I'm having so much fun. I love doing this. This is great. I love you. Giveaways. Two giveaways. Corey, who's our winners? Scott Edwards. Scott Edwards. Just pick a cute face. Corey, you got to choose. You got to choose a girl. Trisha Krisha K R I S H A MO GLEE M O G I Krisha Mogi if you were a winner, email Corey@markjkohler.com Coreykj Kohler.com and you're a winner. Corey, we ought to type those names for the winners in that little section there that you have. In fact, you may want to start just typing some of those. That might be nice since you. Oh, you are somewhere in the description. Oh, I'm saying where the Crypto Tax Summit was at. That'd be cool. See the, see those winners? I don't know. Okay, Ray says let's do a few more questions and a couple more giveaways. By the way, I've got five or six workshops the rest of the year. I've got my eight steps to start and grow your business. We're going to do that in Chicago. We're going to do our a two day business workshop down in Orange County. We got the Crypto Tax Summit, the Real estate tax Summit. Please subscribe to the newsletter@markjkohler.com and I'll make sure you get notes, notices every time we make new announcements about these workshops. At the Crypto Tax Summit, the VIP is almost sold out in less than a week. I think there's only five or six spots left. You get to go on a little cruise. That's a crypto yacht cruise cruise around Miami on the first night of the event and have dinner with Matt and I. And only 12 people get that little VIP experience. Then we have a premium experience with breakfast and a welcome reception, food, drinks and mingling, networking. And Matt and I there and our other speakers associating with you. Plus premium seating, better swag. It's all good. You, you guys check it out@CryptoTaxummit.com okay, daycare business. Are we able to capture upkeep expenses, Hair, clothing, et cetera? I have 15,000 in profit and I need to cut it down. Okay, and what's that first name? Steven. Is that his name? Corey. I've got, I can't see it. Ray. Ray says everybody, I have a daycare business. Are we able to recapture or to capture upkeep businesses? I, I think he's talking about upkeep on his own body, hair, clothing, whatever. No, you can't write off your freaking haircuts or your clothing unless you're considered a model or entertainer. But everybody, here's the thing I would do with Ray. I can see right now in this image of Ray's profile that I think he has children. If I'm counting correctly, that's four kids. He needs to come up with write offs for $15,000. What I hope, what I hope Ray has done is that he paid his children for helping in the business last year. Even and then he used that money to pay for soccer and school lunch and school clothes and all the little things that the kids needed. But the kids helped out in the business. The kids don't pay any tax on that. They weren't chores or it wasn't allowance. The kids actually worked in the business. So Ray gets a write off for that. I we may be able to chew up the 15,000 just paying the kids to help in the business. Did Ray capture home office to its best ability? Did he write off all of his auto expenses? Did he have travel expenses last year? Computers, electronics? Are all the kids on the board of directors? Are we paying for all of the family cell phones of the family members that are helping with the business? I can go on and on. I love to talk about tax strategies and I'd love to see Ray raise P and L, profit and loss and try to dig up as many write offs as we could. So that's what we're shooting for when we're reviewing a tax return. We want to see where your prior account screwed up or if you're doing your own return where you maybe could have found some ways to improve. So. But everybody, you can't write off your own hair and clothing unless you are an entertainer. As much as I feel I'm an Entertainer here on YouTube, I don't get to write this off. And this is all I got to work with here. It's not much, I know, but I got to work with it. Alana says home office write off only if you're a homeowner. What if you rent? I am so glad, Liana, you asked this everybody. You can write off the home office, even if you're just renting. That's okay. So let's say you've got a house. I'm sorry, you're okay. Let's do the house and let's do the apartment. Okay, so you have an apartment or a house. Let's say the house is 3,000 square feet and you use 300 square feet for the office. That means you can write off 10% of the mortgage interest, not the mortgage payment. Mortgage interest, property taxes, insurance, landscaping, utilities, repairs, all of this is 10%. You get to write that off. Or you can do the simplified method, which is simply $5 a foot times 300ft up to 300ft or $1,500. Easy schmeasy, no extra. Accounting is simple. It's easy. All of my clients at least do the simplified method. Now, if you're in an apartment, same scenario. Let's Say you have a thousand square foot apartment and you've taken 100 square feet and you've made it into your home office. Now, I've got articles on this, I've got videos on this, all sorts of helpful material. You're at 10%. Well, the apartment's even easier. You could just write off 10% of rent and utilities, HOA fees or condo association fees or whatever. So that's how it works. And I want home office to be a big part of all of your write offs. All right, I'm going to take a harder question here, Scott T. For a solo 401k deposit, employee deferrals, profit sharing, or outside employee contributions. Do these have to be deposited before filing the business tax return or before the extension date? Okay, well, Scott, you say something that's a little wrong here, everybody. Scott, don't be upset. Okay, so let's do our trifecta. So here's a revocable living trust. Scott has an operational business. Let's give him an S corp. Well, let's say he has employees. He's going to have to do a group 401k. If you don't have any full time employees that have been with you for at least a year, you can do a solo 401k. Now, what freaked me out about Scott's question? I'm not freaked out, but whatever is, he says, well, for solo 401k deposits, employee deferrals. Okay, so I'm thinking of Scott is the employee. Because in a solo, you can't have other employees. Profit sharing, all right? Or outside employee contribution. Whoa, whoa, whoa, whoa. Outside employee contributions. You can't have outside employee contributions because It's a Solo 401K. So by definition, Scott's question has a trick to it. Maybe he's trying to trick me up. So a solo 401k is for the owner and their spouse. And we don't do profit sharing. We do your deferral, which this year be 19,500 plus 25% of your payroll. Now, this is why whenever I do a quote, I always get nervous and I'm like, I better double check my calendar and let all look at this. For 2022 is, it's 20,500. For 2021, it's 19,500. Well, Scott, depending on his W2, which he should have filed by January 31st, he can put in the 19, 5 up until when he files the tax return with extensions. As long as it was on his W2, the payroll. The match that's what it's really called, the 25% match. That can also be up until when you file with extensions. Now remember, let's go back. Well, we'll do it here. I don't want to scroll all the way back. Your personal tax return is April 15th. So April 15th personal the business returns were due March 15th. You get a six month extension to September 15th. You get a personal extension to October 15th. So Scott, if he has a solo 401k and he's talking employees, that means he's filing an 1120s and that's going to be due by March 15th. There's so much I could talk about here with Scott. But here's another point. If you have employees In a group 401k, those contributions are due by January 31st at the latest or the penalties are enormous. With a solo, you have until when you file. So Scott, some of your questions I would get a lot of get a consultation in the next month before you file. Now I would like this to take this comment. Joanna says Etsy doesn't give you a form. Okay everybody, this is so important. I don't care if you made your money on Etsy, a website at a farmer's market. Someone paid you cash. You got paid on Apple Pay, Venmo, PayPal. If you made money, don't worry about a 1099. If you get audited, the IRS doesn't care if you got a 1099 or not. Did you get paid for making money? If you did, you have to report it and pay taxes. Well, I didn't get a 1099. Does not matter. You still freaking owe. Now Arlington says I have a small business, Etsy Shop and only made like 2,500 last year but never got a 1099. Do I still need to report this right? Yes, you do. You still have to report it, people. Because if you make money, you have to report it. Thanks so much for the comments. If you caught the live and you haven't seen this before, let's go do Louis's question here in a moment. But everybody, I try to be here every week. I think next week I'll be on the road. Oh, next week is our self directed IRA summit. Oh, I need to mention that. Okay, so next week in Costa Mesa, Southern California. Any of you watching that are in Southern California, you've got to come. It's two days. It's a day and a half really. Thursday afternoon and Friday and that's going to be. I want to give you the exact dates. That's April 21st and 22nd next week in Costa Mesa, pretty much right around Irvine. For those who don't know, it's going to be right off the 405. And this is the square D I R A summit. And this is where we talk about self directing your IRA. 401k HSA Roth, the mega backdoor Roth. How I bought cows in my Roth ira. How I do crypto mining in my Roth ira. How we have clients with millions of dollars in their retirement accounts. All of that is next week. I will not be report recording this live next week because I'll be there. Come join me. I think virtual is 300 bucks. 3, 400, 500 bucks to come. Great. Tax write off. Love it. Okay, Louis says I have 250,000 in life insurance. Does my wife and adult kids pay taxes when they receive this money? That's what I think you're asking Louis. He said, in this case, I hear you. So he has $250,000 in life insurance. When my family receives this, do they pay taxes? Nope. No taxes when they receive life insurance. So you're good. All right, I'm going to give away two last calendars and do two more questions and we'll call it a day. Corey, who's my two winners? Terry Kim with a T. T as in Tom. Terry Kim. And who's our other winner? Joe. Joe Veneto. Joe Venuto. Joe Venuto at Both of you, email Corey C O R e y@markjcohler.com if you'd like the calendar. 25 bucks. I've had companies buying for all their employees. I've very, very helpful. I've got them all for my kids. Please make sure that you have a calendar with the tax deadlines and tips and strategies that you need to succeed. All right, so Corey, if you could scroll down, I'll take a couple more questions and then we'll see where we go. All right, let's do Campy. How do I calculate my taxes for helium mining? Now I have a helium rig. I've got to get it finally set up. And ABAs we're going to talk about kids too. Campy, how do I calculate my taxes for helium mining? Well, you're going to have an account where you set up your helium miner and you can do a report that tells you how much money you made last year, see how much you got paid. How much did you get paid in coin? And it's based on the value of the coin, the day you received it. If you're like, well, the coin went down in value. Doesn't matter. Well, the coin value went up. Doesn't matter. What were you paid in coin the day you received it? So you're going to go back and look at your annual report for all of your helium payouts. And on those days you got paid, you're going to add all that up in a spreadsheet and there's your income on your helium miner. Then you're going to report it as we're putting it on other income, which is line 8 or 17. I think it's line 8 on schedule 1. On the 1040. It's other income. Make sure you're working with your accountant on that. Okay. Camp. No, it's below cam. Can you go down below cam? Abbas. Okay, this is good. Abbas or Albus. Iapple says, don't child labor laws prevent kids from working? Now, I appreciate that. Obviously you don't have teenagers or you would work the crap out of them. But I have here in my, in my book here, Tax and legal playbook, second edition. After writing on this for 20 years, it's still good law. Whole chapter on paying your family members, including your kids. I'm a licensed cpa, licensed attorney, and I want to be for a long time. It is very common to pay your children for working in the business. Now, point number two, let's just actually, let's just do a couple concept questions. Do you think on the family forum in Oklahoma, the kids are out working the farm as young as age 8, 9, 10 years old? Yeah. Do you think in New York City at the deli, they've got the kids sweeping up the shop at age 8, 9, 10 years old, 12, junior high. Yeah. It's okay to have your kids work in your business. It's the American way. It's been around for hundreds of years. Now. Are there child labor laws? Yes, but child labor laws are primarily to protect me from hiring your kid and not following the rules. Like if my child under age 18 wants to work at McDonald's, they can only work certain hours if they're under 16. It's a whole other rule. Every state has different rules. So when you or your children go out to work for someone else and they're under age 18, their child labor labor laws are going to be all over it. But with you and your own business, you can slave labor your own kids. No, I'm just joking. You still need to file labor laws with your own kids or you could get in trouble from what's called family or protective services. And you don't want to go to jail for being an abusive parent, but you can definitely work your kids. Now I want to give you another good example. I've got some clients right down the street from me in my local area. They own a children's clothing online business. Their kids are legitimate models in the clothing online business that they sell their product. They can pay their kids for being models on the website and take a tax write off for paying their kids. And their kids at age 1 year old can now have a Roth IRA. Totally honest, totally legitimate. I will sign that tax return all day long. I would love to go to the Supreme Court on that. Don't you know Miley Cyrus was making 300 million a year when she was 16 years old. Child labor laws squeeze me. What? Okay. By the time she was 18, she had already made a billion dollars. 300 million a year times three. See what I'm saying? All right. Anyway. Okay, let's just wrap up. Oh, should I do that last one, Mississippi Sheets. And we're going to cover this at the directed IRA summit. Says, do I have to do an institutional account at Gemini or Coinbase with my self directed IRA llc? Yes. Or can I open a regular account in my Roth LLC name instead? That's the same thing, Mississippi Sheets. That kind of throws me off. Everybody, let's break that down. Okay, so Mississippi says I have a self directed IRA llc. Okay, that means an ira, probably a Roth owns an llc. You have to open an institutional account with Coinbase, Voyager, Gemini, whatever then. Or Ms. Says can I open a regular account in my Roth IRA LLC name instead? Oh, maybe what you're saying is a regular account. Well, a regular account are for individuals. Your Roth IRA LLC or your self directed IRA LLC is not an individual. A regular custodial account asks for a Social Security number. Your IRA LLC doesn't have a Social Security number. It would be a prohibited transaction to do that. I see what you're saying now. Your SDIRA LLC is the same thing as a Roth llc. You just kind of chose different words to describe the same thing. You have to do an institutional account. We've got a great relationship over at Kraken, if you don't mind the coins. And the coins you want to or tokens you want to buy are on the Kraken list. We have an institutional account Fast track email, Max, if you want that information, MaxosLawyers.com for those of you that need an institutional account, just put in the subject line, institutional account for my SD IRA llc. And by the way. We'll be sharing all this information at the summit next week in Costa Mesa. All right, Corey. Let's kill the whiteboard, everybody. I'm so proud you're here. This is so important. I am so sick and tired of these massive conferences that charge thousands of dollars to get you hopped up to make money. Those have a place, and those are good. And I want you motivated to make money, and I want you to be thinking outside the box and being excited to be successful. But the other side of the coin is we need to be organized. We need to be paying our taxes, we need to be doing good bookkeeping, we need to have good entity structuring, and we want to save taxes on all that money we're earning. You gotta do both. So for every seminar or podcast or webinar or whatever you go to to get training on how to make money, make sure you're doing a webinar, a podcast, or a workshop, hopefully mine, on how to save money, how to protect it, how to pay less in taxes. Ying and the yang, good and bad, black and white. You want to be in the middle, moderation and all things. All right, everybody, keep living the dream. Get over to markjkohler. Com, pick up the calendar. Sign up for the workshop at Directed IRA Summit, sdirasummit.com or cryptotaxsummit.com. i'll see you in the next month at one of the two conferences soon. See you later.