Mark Kohler breaks down a three-part framework for cutting taxes through real estate and business structures: setting up a revocable living trust, maximizing retirement accounts on W-2 income, and converting side hustles into S-corporations to claim write-offs and reinvest cash flow into income-producing assets.
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I want to talk about the never pay tax and where real estate can work. Let's look at our trifecta. So let's start with the foundation, which is your revocable living trust. This could be your 1040 tax return. And this is you and you're down here and you're going to go make money. Now during the day you're going to be doing operations. You might have a W2 day job. They might be funding your 401k. You're doing some matching, that's great. You may be married, single, doesn't matter. And maybe you have a side hustle. This is your LLC. 50 million Americans have a side hustle. They're making some extra money. And again, we have millions of Americans that also have a full hustle. They have an S corporation, they've converted their LLC to an S corp and they have a business where they make legit middle income American money. They're going to take a small wage and a K1. So this is what we call the trifecta. We want to bring it all together. Over here is the asset side and we're going to take the money we make in our small business, take the money from our side hustle, take the money from our day job and we want to deploy it over here into assets that make us money. That's how the wealthy get more and more rich or create cash flow. So all of a sudden, efforts to keep our costs down, take as many tax write offs as we can, want to take this money and deploy it over here. So that is the strategy.
