Live Open Forum Q&A with Mark J. Kohler | Company Maintenance Program

To a Facebook live, YouTube live today. My name is Mark Kohler. Don't go anywhere yet until I explain what this lives all about. I'm your in house attorney, your in house accountant. Answering your questions about your small business questions, making it happen, trying to live the American dream. Now if you noticed you're going to say real quick, why is this guy got paint all over his hands? Frankly, I didn't have any paint thinner at the office and I ran to one of my rental properties at lunch working with my painting crew. I'm living the dream, guys, just like you. So I've got a little rehab going on downtown here in this main street of America. I'm out in Idaho today with three feet of snow outside. It's crazy. But anyway, so I was working on my rehab today too. So if any of you are real estate investors, you know what I'm saying, you pick up a paintbrush when you have to. So please don't be distracted. So today's topic we're going to talk about company maintenance. How to maintain your LLC or corporation if you set it up on LegalZoom. That's great. You go at it, you go girl. But are you maintaining it? Is it really providing the protection you thought it was supposed to be? Right? This is not just big corporations America. I want you to have that board of directors, board of advisors. And you should be doing your minutes and maintaining your articles and bylaws and all that stuff. It's easy, it's not expensive and it's simple. But if you're not operating your company the way you should and someone falls, someone gets hurt, someone slips and falls, they break a leg, who knows what and they want to sue you. You want to make sure that your entity is there as a barrier. Your operation and your business. So that's the general topic, but I'm also here live. And what's today? It is January 16, 4 o' clock mountain, whatever. So there's. This is not pre recorded. I'm all yours. So if you want to type your comments in down below, just let me know your first name and where you're from and we'll hit your question. Any tax or legal question. It's 2020, it's tax season and some of you may be trying to write off an expense in your small business. I want to give you some feedback. Also I'm going to be giving away a book, a calendar, all sorts of good stuff. Last week's winner was Cody Carver. I don't know where is he from, what state, any More fun. I don't know. Rosie didn't have it here. She gets to choose who the winner is. So we're giving away today's book, the Business Owner's Guide to Financial Freedom. And a calendar, a 2020 calendar, which we're almost sold out of. So I'll give those away. You just have to share this on Instagram, on Facebook, on YouTube. I'm there for you. Okay? So let's hit it. So, and many of you out there may have a small business. Well, you better be if you're watching this and you know that's one of our best tax saving strategies and wealth building strategies. Now if you're going to build your business, let's just build the background. You know me, Mark Kohler, I'm going to divide your life into two sides. This is going to be the ops, this is going to be the assets. So you could really have two businesses. Many of my business business owners are really a two headed dragon. You've got your LLC over here and you're running your rental property. And over here you're running your sole proprietorship or your corporation. And this is your kind of operational business. So this is operations or ordinary income. I'm coming to a major point here. Operations and then holdings. Now here's the point. Whether you're a corporation or an LLC running your business or an LLC for rentals, and it's the same asset protection. And I stand behind this in all my books. We've researched it for 20 years, we know it. I go to court on occasion, I watch Law and Order the night before. But this is the point. If you're going to set up an entity to run your business, you've got to protect it, you got to maintain it. This is a corporate veil and it's the same rules for an LLC as it is the S Corporation. Now a couple other examples, let's say some of you out there, you started your little business, you're mowing lawns, you're selling this, you're running a healthcare fitness gym, you're doing whatever, right? And you're like out there, I've started my business. You're a sole proprietor. If anybody gets hurt, whatever with your little lemonade stand and they sue you, you're personally on the hook, they can come after your home, garnish your wages, get a judgment against you, you may not even be able to bankrupt out of it. So you got exposure. Now we're not talking taxes right now. We're going to do Q and A. I'm here for you. I know questions are flying in, but once you incorporate and you might set up an Inc or an llc, now you have this warm blanket. In most states, we're talking about a filing fee under 100 bucks. But it's not just the articles. I know when you're going to go. You're going to go. You already have questions, Rosalie. Okay, we're going to keep rolling. Okay, thanks, everybody. I'm sorry for the pause there. We got questions on the line as well. Before I answer our first question, let me just tell you some basics. You want to make sure that your setup is done properly. Do you have all the pieces and parts, articles, bylaws, minutes, and a corporate book that includes the same for an llc? As a corporation, do you use the company name and all your agreements? Think about that little rental property you have with your llc. Is the LLC on the lease agreement? If you have a patron agreement, service contract, or anything in your business, I don't want your name on it. I want your LLC on it. Use the company name in all contracts or deeds. We want to use that in a proper way. Next, I want to, gosh, make sure that I'm on. I'm letting the world know that I'm a business. I don't want to do business in my own name. I want to use separate banking. I want to make sure that everybody realizes I'm a corporation. And on all my websites and advertisements and everything, I'm letting the world know I'm a corporation or an llc. That's why you see the comma, LLC or comma Inc. On so much of the material when you're out there doing business, because people are wanting to let you know, I'm not Mark Kohler. I'm Mark Kohler Inc. Or whatever the case may be. Then finally, you need to do your annual minutes, your annual meetings. And guys, some people say, well, I'm an llc. I don't have to do that. No, you do, because you're going to need. You're going to be in court someday and we need to have that protection. But also, it's a great tax write off. You want to keep track of those different meetings and we can talk about it more. Let's go to a question or two. Let's just get everybody involved here. I'm sorry about some of the technical problems. Hopefully we're, we're all figured out. All right, so who's this Super Jay Z? Is that it?

Super jsi. Okay, asks Mark, can a sole proprietor claim their vehicle, aim their taxes? If Used as their work vehicle.

Yes. Okay, so let's go there. Super JZ says okay, let's go back to our example. They're operating as a sole proprietorship and they have a vehicle in their business. Could be a truck, a car, whatever. Point number one for all of you. The auto deduction is so important as a business owner. So important. Your auto deduction does not depend on who owns it. You don't have to have the business own the car, truck. In fact, you might have husband truck, car, wife's car, truck, teenagers, car, truck. And you've got multiple vehicles that are being used in the business. They are all a write off. So whether or not you're a sole proprietor, a corporation or an llc, and I don't care who owns it, you're going to get that write off. Now there's two ways to do your auto. And by the way, I'm just going to say this right now. Back on YouTube two weeks ago, Nick. Right. Two weeks ago I got a YouTube video and a blog article for 2020 on how to write off your auto. Go watch it. Subscribe to my videos. Every time I shoot a new video, you get a ping. But you're going to go either mileage or you're going to go actual. In this year in my. Oh, I didn't bring my handy dandy copy of my calendar. 58 and a half, 57 and a half. We went down a half a cent. So I think we're at 50. One of our accountants out there will make the note. We're either 57 and a half cents or 58 this year. I can't remember right off the top of my head. But there's your mileage deduction. You could go actual and write off depreciation, fuel, repairs and maintenance of your car. So super jzt, you're going to write off your vehicle. I do not care if you're a sole proprietor. And we want to choose either mileage or actual and, and make sure you're taking a deduction in your small business. Go watch my video on this or my blog. Call our counselor lawyers to hook you up if you need any extra help.

Richard, Richard Stewart II on YouTube asks, In a series LLC, does using one Employer Identification Number have any effect on FDIC insurance?

Wow, Richard, tough question. Okay, so first Richard brings up a series llc. So let's say this is the only place we really use series LLCs. Everybody watch this. This is important. Some people go out there and set up an LLC and put their three or four or Five rental properties in one llc. That's cool, but you got all your eggs in one basket. Now, there's about 15 states that will let you set up what's called a series llc. So I can have one parent LLC and a bunch of baby llc. And think of these as subs. Now, what we normally get is one tax ID number for the llc. And when you go down to the bank, sometimes the bank freaks out and they see that you have different subs and they want separate tax ID numbers. We can do that. I want to try and avoid it because it makes it simpler on you when you're doing your banking and your tax reporting. But we're going to have one LLC with one ein. Now, everybody out there, the only time I use these series LLCs is when you have multiple rental properties. And you're going to be in a state that allows for this. Texas was the most recent one that it goes for it. Texas, Oklahoma, Utah, oh, Wyoming, Illinois. And again, you can go look at our list in the back of the book here of all the states that do series. But here's the point, Richard. You're asking about FDIC insurance that protects the amount of dollars in your bank from a bank failure. Now, I'm assuming you're asking about FDIC insurance for your bank, not fica, F, I, C A Taxes. Are we okay, Nick? Right. He said FDIC insurance, Richard. You should never have more than 250 grand in the bank at these, at this institution anyway, a rental property business, FDIC Insurance protects your first 250 grand from a bank failure. It's federally guaranteed. Even with our bank crisis that happened in 2007, there was, there wasn't even any concerns there. So, Richard, I'm a little apprehensive as to why you're worried about FDIC insurance, especially in A Series LLC and why you would have more than 250 grand in the bank. So let's talk. I would set up at least 30 minutes with one of my tax lawyers and let's talk about what you're trying to protect and why an FDIC insurance should not be at the top of the list. It's probably number 10. So let's go into that more in depth. Okay. Who we got?

Daniela Camacho. She asks.

Hi.

If my rental properties are new and the loans are high, should we still consider an LLC or. Wait.

Daniela, I love it. Great question telling me know some of the states these people are coming in from too. It's kind of fun hearing where people are from. I can Also relate the answer to your particular jurisdiction. If I can. Carmela, right? Is that what it. Carmela, Daniela. What's her last name? See, I was close. I confirmed combined first and last name. Daniella. She's got some rental properties. Let's Say Daniella has three rentals. Let's say she bought them for 100 grand a piece. And then she says, I've got a mortgage against each one of these. Maybe she did seller financing. She said she's got big mortgages. Right. Which is cool. I want mortgages on your rental properties. So let's say she's got 90 grand mortgages and she's got 10 grand in equity, and they're cash flowing. That's great. So Daniella says, well, Mark, there's not a lot of equity here. Now, this is important. Everybody listen up. There's not a lot of equity here. So I do I really need an llc. I'll just own these rental properties in my own name. All right, guys, why are we doing an llc? Is it to protect them from one another? Maybe, but not in this example. Why am I doing an llc? It's because if one of those tenants has a big old party and someone walks out the front door and the railing breaks, or someone gets drunk and falls in a swimming pool and dies or whatever, any of these tenants could have a myriad of legal problems, right? And they sue you. They can come right after you if you're not an llc. So you may say there's not a lot of equity in these rentals. I don't care about the equity in the rentals I protect. I care about Daniella's home and anybody getting a judgment against her. So the reason why we do the LLC is to protect Daniella's assets from the renters, not to protect the rentals from another one. Another. That's another strategy. So, anyway, think about that. All right, what do we got?

Danielle was from Utah.

Oh, okay. Utah. Right.

Troy Castor asks if I'm showing a loss of my personal taxes from my sole proprietor, my sole prop, and my S corp. Can I convert that same amount from my IRA to my Roth and not pay taxes?

Yes. So I'm going to repeat that. So Troy has a sole proprietor, and he has an S corp, and in his example, he's got a loss in both. Now, I'm not excited to have a loss in both of your businesses, but he's got a loss here, he's got a loss here. And I'm presuming he's got maybe some day job Income over here. So maybe his wife or him or whatever, they have a W2 income, and they're going to be making some money here. So if they're making money and he's got a loss, this loss on their 1040 is going to. They're going to net out. So the losses and the gains net out, and we bring it together. So that's point number one. Whenever you have losses in your operational business, they're going to offset the gains from your day job. Or if you have a gain here and a loss here, it's all netted together, drops under your 1040. Now, what's interesting is Troy, right, says, I've got an IRA over here, and I want to convert it to a Roth ira. I love that in the long run, a Roth pays off. So if I convert an IRA to a Roth, I have to pay the tax on the amount that I converted. At whatever rate of tax I'm at in my 1040, there's no penalty. I've just got to pay the tax. So what Troy is doing is very common with my clients, is if they have a loss in their business over here and say they're 10,000 in losses and they're going to pay taxes on 10,000 of conversion, the loss here will offset the gain here, and Troy will pay zero tax. Now, here's the deception. Don't think that this is $10,000 in taxes I'm going to save. If I convert this, I'm going to have gain and loss, and I want to net those. If I have 10,000 in loss but 50,000 in gain, I'm still going to pay tax on 40,000, whatever bracket I'm in. So if I. In a 20% bracket, my tax might be eight grand. See, this is not tax savings. This is loss against gains. So you want to net those, Troy, but you're on the right track. You can do it. And. And I love it. All right, how's our technical stuff going? I'm freaking out here. Do we have. We're all good. We got YouTube rolling. Okay, we got a question. What do you got, Rosalie?

Jose, he's from California. He's asking question on Entrepreneur. Any advice? Making sure the 1099 employees don't flag as a W2. Like, what's happening to Uber?

Is it SR5? That's the new law, right? Is it SR5? Okay. Oh, Jose in California. Okay, what's the question again? How's it affecting him as an Uber driver? Any advice?

So making sure.

All right, so here's what's going on. People in California is being the most aggressive in tax collecting as they normally do. And Jose brings up a whole topic that's a radio show and I want to answer it simply. So say you've got a business and you're rehabbing property. All of you know Chip and Joanna. If you watched any home repair makeover show, you know Chip and Joanna and they're down in Waco, Texas and they're rehabbing properties. So they buy a property, they make it better, put a lot of money into it and then resell it and make a profit. Alright, so there's our business example. We've got to have a business here as an example. Now let's say Chip and Joanna go out there and they hire someone to do the landscaping. If they're a subcontractor, they're going to get a 1099, they're going to have a subcontractor agreement and they're going to get a W9 from that subcontractor who's a landscaper. Now let's say Chip and Joanna have someone they use every week. They tell them what to do, they go pick up coffee, they get donuts and they do whatever the work Chip and Joanna need. Are they really a subcontractor? No, they're a W2, they're an employee. And what California has done is come out with a new law. I think it's SR5, I'm sorry, they are going to have, they have a three part ABC test and if you don't meet this test, they're going to make you consider all these workers an employee. Now the unique thing about this question, what was her first name again? Jose. Jose says, how do I make sure I'm not considered an employee but I'm considered a 1099? Jose, that's not for you to decide. That's for the person paying you to decide. If someone gives you a 1099, great, you're now a subcontractor. You can write off your cell phone, your travel, your auto, home, office, computers, network. Right? All that's good. So if someone chooses to 1099 you, then you're going to take those write offs. If they say nope, Jose, you're a W2 and they give you a W2. You don't get any write offs. It also costs the employer more and the state of California makes more money. That's why this is going on. Now it's not all bad because if you have someone that's an employee, but you really treat them like a sub and pay them as a subcontractor, but they act like an employee and they get hurt on the job. You're personally liable. You do want workers comp in this situation. So this whole question of when someone is an employee and a subcontract employee and a subcontractor. I got a YouTube video on this. We got a new article coming out next week for all you Californians to give you some more direction. It's a big deal. So I hope to give you more direction. But Jose, if you're the recipient of the 1099, cool. If you're the one issuing the 1099, you got to have your crap together. So business owners, no matter where you're at in the country, you need to make sure you treat employees like employees and issue a W2 and have workers comp. And you treat subcontractors like subcontractors and give them a 1099 and get a W9. There's very little gray area. Be careful. So study up some of my info on that. Okay, David.

David Hetherington, who's by the way from Arizona, he asks, I started a new LLC January 1, 2020. Can I depreciate a vehicle I already owned in 2020 using for the business?

Okay David, this is a good question. So here we are in 2020 and David started a business in the first of 2020 is what I'm hearing, right? He started his business in 2020?

Yeah, January 1st.

Alright, so that means you're making money in 2020 and your business in 2019 did not exist. And now that's important, David. And by the way, you need to watch my video on startup costs. Now listen everybody. David said he started his business January 1st. Really? Is that when you made your first dollar? Oh, I didn't make any money yet. Well then you didn't start a business. You may have created an entity. Okay, let me give you an example, everybody. Some of you there are regular followers of me, have heard this before. You're going to open a lemonade stand. You go out there, you buy the cup of solemn. You buy lemonade, you buy cups, you buy ice. You build your sign. You may have even set up an llc. Best lemonade stand in America. Are you in business yet? No, you are not in business. You're in startup mode. Well, Mark, I set up an llc. Great. Doesn't mean you're in business. It just means you set up an entity. The IRS does not consider you in business until what happens?

Team?

You make money, You've got to have a Sale. I got to sell one cup of lemonade. If I don't sell any lemonade, David's not in business. Well, Mark, I want to write off my car. I started a business. No, you set up an llc. So first, David, I'm going to assume for a moment that you made money on January 1st and you've got a business, not just an entity. And David's question is, I had a car that I bought in 2019, but I want to write it off in 2020. An actual expense. Okay, David, is that the best move for you? I don't know. See, again, I'm going to ask a second layer of questions. How many miles you're going to put on? How much did the car cost you? What type of business do you have? And I'm going to go through the whole issue of actual versus mileage. Actual may be the worst decision David could make. Now, I'm going to assume Dave has already figured this out. He's already talked to his accountant, he's already read my book, watched my videos, and he's like, mark, I should be actual. Okay, see, I've got to assume these really in business, assume that actual is the right method. Now, his question is, can I write off my car that I bought in 2019 as an actual expense? Maybe what I have to do is sell the car to your business to recalculate the. To recalculate the actual expense and to show that the business purchased it in 2020. Tom Bradford at the Tax Institute. I love him. He's written an article on how to do this. I'm trying to get something put together for my clients as soon as possible to show them how to do this and when it's possible. If you have a lien or a loan against your auto, it may be more difficult. We got to figure this out. So, David, the jury's out. I have a sneaky suspicion, and I'm not trying to be rude to David. Maybe his business really hasn't started yet. And number two, that actual may not be the best method. It may be mileage. So, people, you got to get through these steps before you just assume that that's the right answer. So, David, maybe give us a call, study up some of my material, and let's see where we go. Okay. Rosalie, who we got?

I have Igo on your Facebook. If I have a four plex in Los Angeles, it's under an LLC. Do I need to 1099, my handyman, he did a lot of work than usual last year. I think we pay him like 6,000. What should we do?

Okay, so here we are. Back to this example. Iko has an LLC in California. It's actually in Los Angeles. And he has a fourplex. So let's turn this into a fourplex. All right, so I've got this cool little fourplex. One, two, three, four doors, four renters. I could went out and hired a handyman. I'm going to put HF handyman. And the question is, is the handyman a 1099 or an employee? Well, this is where you go to those tests. IRS has 10 questions you can ask. California just came out with a new law, the ABC test. And we have to go through and ask ICO. Did they really look like a 1099 sub or did they really look like an employee? Let me give you some of the examples. Does the handyman work for other apartment buildings? Is he registered as an entity, an LLC or corporation? Does he carry his own insurance? Does he have his own tools? Does he show up whenever he wants to and just carries out tasks that you assign him? If he answered yes to most of those questions, he's going to be a subcontractor and you better freaking Get a W9 and issue a 1099. I co. But if you go, well, he works 20 hours a week, he uses my tools, he doesn't work for anyone else, and he does whatever I tell him in the time period I have him work. Hmm. I go, that sounds like an employee. He gets hurt on the job, you're screwed. If you fire him, he can go claim unemployment. And you haven't paid any unemployment. You want to talk about penalties and problems with the state of California. So I go, you better figure out what the freak your handyman is doing and get on board and make it legit. W9 and 1099 or W2, get a W4 and get workers comp going. All right, King.

King Cobina on YouTube asks, Big fan. Mark, can you explain charging order, protection, SG sin and what to do in states that don't have the protection? I'm in New York.

Alright, King, thank you for your kind words that you're a fan. Okay, here's what King's talking about. I'm gonna have fun with this. I actually had a client, he was an ex NHL hockey player. He had just retired from the league, had a million bucks in the bank, single guy, fast cars, fast women. Called me up, said, mark, Mark, I got a million dollars in the bank. I got some rental properties and I want to protect them. He actually lived in New York. And he's back up, back up, back up. This is good. I want to get accurate with my example. He actually lived in Texas, but his brokerage account was in New York. Now, in New York, there is no charging order protection. In fact, Texas is hard. So I've got to figure out where I'm going to go with this strategy to help my NHL player protect his million dollars. So what a lot of people will do is we're going to take this million dollars, and whether I live in New York or I live in Texas, I'm going to set up an entity in a charging order protection state. You know, hang with me. Well, you're like, mark, I'll just set up an LLC. I'll put $1 million in my LLC, and if anything goes wrong, and let's say my NHL player is over here and he's driving down the road texting. He's got all these ladies in his car and he's distracted and he runs through a crosswalk and kills a family of five. Oh, my gosh. Two million dollar judgment. They're gonna come after this hockey player. They saw him on tv. I want you to pay for running over my kids in a crosswalk. Can they get into his LLC in New York and take away his million dollars? Yes. You're like, well, Mark, I thought the LLC protected the million. No, no, no, no. The LLC protects you from your tenant in your rental property. That's inside liability. The goal of the LLC was not to protect the million. It was to protect you from the operations of the business. Whoa, I thought LLC is protected the assets. They protect your assets from the business, not the assets from the business. And you being an idiot, that's called outside protection, and that's a charging order protection entity. It means if he drove through that crosswalk and killed people, they are going to get a judgment against my player. But they can't get into the LLC and take away the million dollars. All they get is an order from the court charging him saying, you, NHL player, have to give money to the family. Anytime you take money out of this llc, it's called a charging order. Well, do I have to? No. Just when you take money out, is he ever going to take money out? No, he. And it drives a settlement. Hence, my wealthy clients that have lots of rentals and lots of money, we set up a charging order protection entity. And if you live in a state like New York that does not have a charging order protection entity, I'm going to go to one of 13 to 15 states that I like. Wyoming, Utah, Nevada being some of the best, one of the cheapest, easiest to hide you and provide some protection with privacy. Wyoming, give us a call. Let's do a consult, get with your attorney, make sure they know what they're talking about. You can read about this in my books. Watch a video on YouTube. Cope Kohler, I break it down. Great question, King. All right, maybe one or two more questions and I'm going to then do a raffle and we are going to give away this book. I'm going to sign it right now. Let's just get it out there. I'm going to sign this book and then Rosalie tomorrow is going to look at everybody that shared this video. And if you shared the video, you are in the drawing and I'm going to even date it. We're going to say, what's today? 116 20. And I'm going to say live the dream. Anyway, share this video, please let people know what we're talking about. It's so important. And Rosalie will give away this book and we'll go from there. Okay, next question.

Yeah, Jesse from entrepreneur Mark, how can I schedule 30 minutes with a lawyer at your firm to set up an S corp?

Jesse, thank you. I did not plant that question out there. But if anybody this I love entrepreneur. I love my Facebook and YouTube fans, this today's for you. But if you do need an appointment or you need to get your taxes done and want to know how we operate, 435-586-9366. You can also go to our website, www.kkoslawyers.com. check it out. You can fill out a little form on the homepage. My team will call you right away. We can make an appointment and get things rolling. So if you need to set up any, we charge $400 for a paralegal setup, meaning the paralegals just knock it out for you. Or if you want an hour with an attorney tailoring your structure and your plan to you 800 bucks, any state plus filing fee. And if you need a registered agent and all that, but give the team a call, they can answer your questions for you. All right, next question. Emonk3Emanic3 manic not monk. I can't see. I don't have my glasses on. Emanic. I'm sorry about that.

Emanic3 he asked where to find maintenance calendar for S Corp, LLC, etc.

Maintenance calendar. Okay. There's two different things he threw out or Emanix said first when you go back, let's go back to the very beginning and we talk about protecting this corporate veil. And you're going to do your annual minutes whether you're an LLC or a corporation. And you're going to have a board of advisors if you're an LLC and a board of directors if your corporation. We have a company maintenance special once a year, 100 bucks. If you're new to our firm the first year, it's a hundred bucks. We'll do your minutes for your company. You can go to our website kkoslawyers.com and click on the company maintenance special also in our newsletter for the next three weeks. There'll be a link there that's a hundred bucks. We'll give you the questions the first year. Not for free. I'm sorry, you got to pay 100 bucks. And we'll do your minutes for you the first year. Then you can say, you know what, I'm going to do it myself in the future. You might like my team taking this problem off your back so much you just say do it every year. But it's 100 bucks. Now the next thing is calendar. There are different states that have different deadlines to renew. And some of them whether like let's do Michigan or yeah, Michigan, you may have set up your LLC or corporation in Michigan in July last year if you're in Michigan. But guess what, February 1st is your deadline to renew it. And then in my 2020 calendar here you can look at different states and when their deadlines are, Rhode island is March 1, April 1 is Nebraska, Georgia, Iowa, Washington, D.C. new Hampshire and Tennessee. Then in May is Florida. Also May 15th is North Dakota, Texas and New Mexico. So you've got to renew these things. And Texas can be bad with penalties. So now this calendar you can buy on my website. I'm not giving one way today. I work so hard on this. 25 bucks includes shipping. Get over to markjkohler.com we are almost sold out. You can get a calendar. It's got all these awesome little videos and dates and deadlines and numbers in it. I do one a year. You're going to love it. 2020 calendar. Get to markjkler.com alright David, last question. David, don't go anywhere. David might have a great question. What do you got?

Do you recommend Opportunity Zone investing and tax planning? Why?

So okay for those out there, if I've got my little structure here and I got operations and I've got rentals and you've got rental property that you might be selling and buying a new rental you can do use a strategy called Opportunity Opportunity Zones. Instead of selling this property and buying another one of equal or greater value, which is called a 1031, you can sell this property and go buy a new property in an Opportunity Zone. And if you do some repairs, you do some upgrades, you can do a remodel, you can do a variety of things. You can defer the tax for a certain number of years and sometimes even get out of 5 or 10% of the taxes if you hold the property long enough. The whole goal here was to rehabilitate zones that need some help and give an opportunity to investors to save on taxes. Hence Opportunity Zones. Now do I recommend them? Yes, but they're not for everybody. And you also have to be careful with people out there that are overselling them. In an area you may not want to be and in a structure you may not want to be, yeah, there's some tax savings. But here's my point. Don't let the tax tail wag the dog. Don't go out there and make an Opportunity Zone decision just to save taxes. That's a crappy rental. Make sure if you're going to do an Opportunity Zone deal, fly out there, drive out there, go look at it, really kick the tires on the rental property you might buy. Make sure you're comfortable with the property manager. What's the plan now? If it's a good rental deal and it's in an Opportunity Zone, Better yet. But don't just hyper focus on the Opportunity Zone and make a bad decision. Alright. Few things win the book Share this Subscribe I'm going to shoot videos every week and I want you to know when I shoot a video, just get over there and push the bell ding. And then you get a little bell notification when I shoot a new video. We got a newsletter every week that's free. Get down in the content below and you can click on that and I give away a free ebook. 30 page ebook on how to save taxes as an entrepreneur. It's free. If you subscribe for the newsletter and the new 2020 calendar, get over to my website markjkohler.com and the company Maintenance special that I talked about is only for one month. January 15th to February 15th. 100 bucks to get your company minutes done. Whether you're an LLC or Corporation, go to kkoslawyers.com you'll see the banner describing the company maintenance special. You just fill in your information, throw it in PayPal, boom. You get the special. It's normally 150 bucks. So you have $50. Get it done. Thanks, everybody, for watching. I'll be here next week. I love you. I love the American dream. Thanks for watching and please don't give up. It's hard out there. It's hard being an entrepreneur. But the payoff is so rewarding. Keep the day job. Start the business. Do both. See you next week.