Tax Strategies For W-2 Earners

Hey everybody, Mark Kohler here. Please do not go anywhere for one moment. Let me tell you what this is about people. It is hard to save on the number one cost in our life taxes. I'm a CPA and attorney, been running a small business myself my since high school and now a senior partner in a law firm and accounting firm. And I love small business and I've been educating on this for years and I've got some tips for you here. For those of you that are just W2 wage owner wage earners, what do you do? How do you save taxes? Where do we unlock tax savings? Well, for the next 30 minutes I want to answer your questions, give you some actionable items you can do to save taxes in 2023 and I know how hard it can be. I feel your pain so I want to jump into it and I want to talk about ways you can immediately start saving taxes. So we're going to go to the whiteboard here. Want to make this really applicable to you and if you have question questions please type them in the chat below. Please give us a like give me five stars if you like this. Get active in the chat. Ignore anybody posting about some stupid bitcoin strategy or thinking it's me posting. I am not focus here. Put your words in chat and I will answer your questions. If you've been looking for real tax advice from your own accountant, maybe heaven forbid, or your tax lawyer if you have one, please post it here and let's get a second opinion. I'm here for you. No one has more books, more podcasts, more videos on YouTube combined than me and I'm here for you. So take advantage of me now for W2 wage earners. That's our topic today. What do you do to save taxes? Well, I've got five or six tips here and I want to start with number one. It is the easiest. I literally just helped a family member today get set up with a new health insurance plan that is HSA qualified, that HSA or health Savings Account. You do not have to have a small business. You do not have to have a rental property. You do not have to be rich, you do not have to be poor. All you have to do is have a high deductible or a HSA qualifying insurance plan. If you have a day job, you just go to your employer when it's enrollment time and go I want an hsa. Now here is what is cool about the hsa. In fact I want to throw down a little chart. I didn't plan on sharing and let's just do some quick financial literacy education on this. And I have very wealthy clients that are shocked by this. So please pay attention to this. Let's say I'm going to. These are my three quadrants. This will shock you. All right, now, let's say you want to put Money into your 401k at work or you're going to put money into a traditional Iraq on your tax return. You're like, I'm going to put money into my individual retirement Account. Well, you get a tax deduction on the way in. And when you invest in stock, mutual funds, bonds, ETFs, you do not pay tax as it grows. In fact, spoiler alert. You can invest in alternative assets. You can invest in notes, real estate, small business. Down the street, we have a podcast, it's down in the chat below the directed IRA podcast, where you can learn to invest your retirement account and what you know best. Screw Wall street and 5% returns. After all those fees, you can do better. Now, do you pay tax when you invest in your IRA or 401k? No. It grows tax deferred. Because someday when you pull it out when you're 59 years old, you're going to pay tax on it. And you young people are like, I don't want to do that. I want to have access to my money. Trust me, when you're freaking 50 years old, you're going to be freaking out. And you wish you would have done this. In fact, I want to tell you a number. If you're, if you've got kids or you're a young person here, this will, this will rock your world. A 15 year old, a lot of parents out there starting a little Roth IRA for their kids at age 15. If you put five grand in their Roth IRA and average a 10% return and you put five grand in every year. And you teach that child, I don't care if you buy rentals or if you have a day job and a 401k, just do five grand a year for the next 40 years. By the time they're age 50, they'll have $4 million. That's right. Tax free, people. It's a game of time. And you want time on your side. So getting that IRA going is great. But you know what? This is the plan that sucks. That's option one. Let me tell you option two. You do a Roth IRA or a Roth 401K. Now, do you get a tax deduction when you put money in a Roth? No, you do not get a Tax deduction. You have to pay tax. Then you put your money in, but that money grows tax free. And when you pull it out, you never pay tax. And this, my friends, is what the rich do. They start building that Roth and they chunk and they move their IRA to a Roth as fast as they can. Now, wouldn't be sweet. I'm going to go to a red. Wouldn't it be sweet, by the way? Good here. All right. If I want a tax deduction on the front, I want tax free growth and I want a tax free out. Mark. I want all three boxes. I wish I could get this box. I wish I could get this box. How do I get all three boxes? I want tax free all the way along, people. That is the hsa. That is the health Savings Account. You can pull money out tomorrow whether you're age 25 or age 55. I can get a tax deduction no matter, matter what income level. I can get a tax deduction no matter how old I am up until age 65. At age 65, you're on Medicare. But this HSA is an incredible strategy for all of you that have a day job. Think about it. It's crazy. So that's number one. The next strategy I want to talk about is the Roth and that Roth chunking. You want to chunk as much as you can at Roth, and you can do this now under new legislation just passed this last year in Congress. You can chunk at your 401k at your day job. You can put a little bit in Roth, your employer can match, you can convert to Roth all inside your 401k, people. As fast as you can get to Roth, the better. This is where Peter Thiel, owner of PayPal and Facebook, got the crap beat out of him last year because he has $6 billion in a Roth IRA. Well, he started like the rest of us 15 years ago with like maybe a 10 grand or 50 grand in a Roth IRA. But he invested in Facebook and PayPal with his Roth, and he's shown us the power of investing in what you know best. And it's killing. All right, so that's number two. Now number three, another issue that a lot of parents are dealing with, and they're W2 wage earners. Now, these are W2 wage earners that do not have a rental property. They do not have a side hustle. We're going to come to that. But if you're just like, Mark, I just put my head down and I'm a W2 wage earner. And that's Fine. That's great you went to school, you work for the corporate America, and that's fun. But do you have kids? Are you planning for college? Savings? And I love a combo of the 529 with the Coverdell and the Roth. You've got to bring all three of those together if you're a parent, and that's a tricky process. Now, on my website, markjcohler.com I have my 30 Ultimate Tax Guide. Check it out. It's free. And I have a section on this where I talk about the, the play between 529 coverdell and roth. It's a big deal. Now, the next one I want to teach here is called the Match and Out. Match and Out. Now, what that means for all of you out there that are a W2 wager again, without a rental or a small business. We're going to come to that at the work when they say, oh, we match your, the 401k for you, we do 3% or 4% or whatever they do. You want to do the match, double your money, then get out and do your individual Roth. Then if you have enough money, go back and play. Now, here's why I want to do this. I'm going to get really specific. What I've been teaching for years is the trifecta. We want to bring our clients together, whether they're worth 100,000 or 100 million. We use the same structure. Down here is your revocable living Trust or your 1040. We split your life in half. And what we're going to do over here is this is Your day job, W2, and with your day job, you're going to fund the 401k. That's a good move. And you want to get the match, whatever that company is going to do. So if they're going to match your contribution to your 401k, $4,000. All right, so you put in, out of your paycheck, $4,000. What the company does is double that. That's the match. So now you're at eight grand. You got 100% return on your money. Pretty good. Now 401ks are buried with terrible fees, and your choices and options to invest are very limited at best. You're getting ETFs. If you kill it, you make 8 to 10%, right? Well, I want to take my four grand, put it in, and then I'm going to get out. That's the Match and Out. And then I'm going to fund my health savings account this year. You can do close to 7,500 if you're married or head of household, 3,750 if you're single. Then I want to do my Roth. And you can do a Roth at any income level, any age. Don't let anybody tell you, well, I make too much money, I can't do a Roth. We do a backdoor Roth. It's okay. Google it. Mark Kohler backdoor Roth. So I can go do the HSA and the Roth. Then if I still have money left over, then I can circle back and do the 401k. Now the reason you want to do this is you get your 100% return on the match. But over here. But then again, you're investing in this bucket. That's very limited. It's just whatever your company allows you to invest in. But in an hsa, I can self direct it. I can do transactional loans, financing private lending. I can invest in a business down the street. I can invest in real estate. Same with my Roth. I can invest my Roth in all sorts of different ways. Is called self directing. And you get to invest in what you know best. Wall street is not going to tell you that. Title of my book, Business Owner's Guide to Financial Freedom. What Wall street isn't telling you. So I want to take that money and go invest it in what I know. So that's why I call it the match and out. Get the match, go invest in what you know best. Then come back if you want. That's cool. Match A. No. All right, number five. Now we're going to do Q and A. I'll talk about any tax strategy known to man. I'm going to give you as best I can. Number five is life insurance. Life insurance technically is a great way to build tax deferred or tax free wealth. You can borrow against the cash value of your life insurance policy. Call it Iul vul whole life. There's different machinations depending on your health, your age and what you're trying to accomplish. Life insurance inherently is not bad. What the problem is is life insurance agents sell it to every freaking buddy that can walk and chew gum. And people that shouldn't get life insurance are oftentimes sold life insurance. So I want to make sure you're out of debt, you own your home, you've got a mortgage pay down strategy that's reasonable. You are funding your 401 at work with the matching strategy, you're funding your health savings account if possible and you're funding your Roth ira. Then after all that, you want to put some money in some life insurance. That sounds great. Make sure you got the fortitude and the wherewithal to keep on the plan. Because unless you do a single premium, whole life policy that you can just sit back and let it do its thing, you've got to be willing to commit to the premiums of that life insurance policy for at least seven to 10 years. And any honest insurance agent is going to tell you that. And you don't want it to mec out. That's called a modified endowment contract. You want to make sure you're involved in the policy for a number of years to let that cash value grow. And if you can't keep up those premiums, it crashes. So you want to have a very realistic conversation with yourself and an insurance agent that knows your capabilities. Now if you can keep that insurance going and the premium's down and you can let it grow and marinate, those policies can be amazing. Seven or ten years from now, I'm still yet to beat someone that's made it the 10 years. Be careful. It's a strategy that works and I'm not opposed to it in the right circumstance. So that's another strategy. If you don't have a small business or rental property, guess where we're going here. Now the next strategy is a lot of personal tax credits. You might do some sort of solar tax credit, alternative energy, low income or a energy tax credit. At Home Depot you put in some solar panels. Good luck getting the electric vehicle credit now because it phases out if you make too much money. But there are tax credits for individuals that are very limited. I've written some articles on that. It is mentioned in my 30 ultimate tax guide. But it's going to move the needle just a little. So you might get frustrated there. Finally, and I hope you can see it down here, number seven are IDCs, intangible drilling cost tax credits. They're a strategy of investing in oil, exploratory oil and gas where you can get big tax credits up front, cash flow and then an exit on the way out. They're called IDCs. Do some research on it on Google. They're legit. You just. They're exploratory, they can be a little higher risk, but hence why you get a kick ass benefit they can work for. Again, the W2 wage earner. Now everybody. And I'm going to do Q and A all you want here, Patrick. Start posting some questions, people. If you want to build wealth, if you want to save taxes, I beg of you, start buying a Little rental property where grandma lives, your kids live, your brother or sister. I have a friend that's vice president of a Fortune 500 company and he's bought rental properties in the towns where his kids are going to college. His kids rent, live in the home and rent the other rooms. He gets massive depreciation deductions. He's building wealth with real estate and is already ROI is 10, 15 or 20%. Now, if his income's a little too high, which it is, because he's an executive of a Fortune 500 company, those write offs and those losses on that rental property are going to carry forward until he decides to sell the rental. He might even do a 1031 exchange, carry those losses further. I don't know. But don't think you have to be a real estate professional to still benefit from investment in real estate. See, people, it's not about, do I get the loss write offs? Oh, I don't get them. I'm not going to do it. Oh, but your ROI is still 15%. You're getting mortgage pay down, you're getting appreciation, you're getting cash flow. And the short term rental strategy is incredible. And you don't even have to be a real estate professional. But what I'm trying to get at is folks putting your head down and hoping that your 401k at work and your corporation or company is going to take care of you. Maybe Social Security a little bit on top. That's more risky than starting a small business. What I hear is sometimes that people go, yeah, it's too risky to start a small business. It's too risky not to start a small business. Are you kidding me? So I beg of you, if you 50% of adult working Americans now have a side hustle, and I beg of you, if you don't have another source of income, start doing some consulting on upwork. A rental property is a small business. Let's start taking write offs for travel, dining, home office equipment, supplies, travel. Did I say travel? Auto, all the different expenses that are great for small business owners. Let's freaking hit them. Let's do it. All right, well, I'm going to hit some questions now. I'm all yours. Excited to be here with you. All right, we've got Sun Goddess, a regular viewer here. So how do you get your company to match? Oh, that's a great question. Well, any of you that have a day job at our law firm and accounting firm and our trust company with our employees who we value so much and encouraged to have a side Hustle. We also have a 401k program. After one year, they are vested and they get what's part of what's called a safe harbor program. A safe harbor, 401k is where the company matches around 3 or 4% of their salary. So if they have $100,000 salary, we're going to match up to 3 or 4 or $5,000 of what you put in. If you put in 4 grand, we do 4 grand. If you put in 8 grand, we put in 4 grand. See, we match up to 3 or 4% of your salary. If you put in the money, go to your employer and go, hey, do you have a 401k? Yes. Do you have a matching program or a safe harbor? And if they go, yes, say, I want to enroll. Oh, well, you've got to be here six months or a year or one month or three months. I don't know. So, sun goddess, go meet with your employer. See if they offer a 401k and how you can participate. The camera's looking good. Well, thank you. I'm trying to look a little more. I had a little fire in the fireplace here. Trying to create a romantic glow for you. Appreciate that. All right, dad and Eli Gameplay. How do I report taxes for my minor child that started his own lawn business? Ooh, I love it. Dad and Eli Gameplay, how do I report taxes for my minor child that started his own lawn business? Well, let's put it on the board. Right? Let's do it. So, everybody, as parents, I want you to build your own trifecta. That's what I do. So let's say dad has a revocable living trust. We'll go, mom and dad. Or dad. Or mom, whatever. You may have a day job. That's cool. A day for a day. W2 with a group 401k. All right, now, what I would hope, and this is a good trifecta, is that you would also have your own LLC with a side hustle. And with this side hustle, you might convert it to an S corp when the time is right. We charge a couple hundred bucks to convert to S corp. And I'm going to explain an issue on this in just a moment, and then I'm hoping you're funding your Roth IRAs or even your health savings account. Meanwhile, you're looking for that cute little rental property that might be down the street or across the country where grandma lives, and you're going to have an llc. And this LLC is going to be set up in the state, maybe It's Tennessee. If you have Tennessee rentals, you have a Tennessee llc. Get a lot of those. Tennessee Christmas, the trust. The LLC is owned by the trust. Your trust owns your own home. This is how the trifecta starts to build. If you have a minor child that has their own landscaping business. I was fun. I had on my podcast a kid that was selling eggs down in Kentucky. It was great little business and the biggest, it was funny. Tony Bass, he's a consultant in landscaping. A little shout out to Tony Bass if you own a landscaping business. Freaking. Just Google Tony Bass. Amazing. He's helping landscaping businesses build six digit revenue and seven digit revenue landscaping businesses, bringing in holiday lighting, snow removal and landscaping. Incredible. Well, his son came on my podcast and talked about his egg business, selling eggs with his chickens. And we did a SWOT analysis, his strengths, weaknesses and he said his biggest threat to his business were foxes eating his chickens. I thought it was so funny and he was just like, yeah, Mark, I got these foxes eating my chickens and it's killing my egg business. I got to build, build bigger fences and better fences. Those foxes find a way to get in and eat my chickens. And. And I was like, oh my gosh, you're adorable. So anyway, this kid, and if you have a child that's under age 18, they're going to have their own LLC and their revenue is going to come in here and they're going to file their own 1040 tax return and we're going to take write offs. And the beauty is if you're paying them out of your business, you don't withhold FICA and you're actually not going to pay their llc. You're going to pay the child themselves. And it's a great strategy for the kids to start building up their Roth IRA for college. And we want to make sure that their business is being reported on a schedule c inside their 1040. I would recommend you get a consult with one of my tax advisors. Any of you that need a tax advisor and you're like, holy crap, Mark, I love the way you're talking. Go to mark J. Kohler. MarkJ. Kohler.com we're going to make sure it's down there in the chat and go to my tax advisor network and you can find a tax advisor that speaks Mark Kohler. Now if you're an enrolled agent, a CPA or an advisor yourself and you want to learn the best kick ass strategies in the country, please get to markjkler.com I've got a certification program with over 70 plus topics, 12 modules, 800 quiz questions. And I certified you as a tax advisor under my malpractice insurance. As a licensed CPA and attorney. There's no one in the country doing the advisory program that I have. And at the end of this month I have a three day workshop all of you business owners and advisors can attend virtual or in person. 27, 28 and 29 in Salt Lake City is the tax and legal 360. Tax and legal 360. 45 sessions, 36 topics, 20 speakers. The best cutting edge tax strategies in the country. Be there now. Bring your son, bring your daughter. If they have a small business, I want them building their own little small business. Meanwhile, you're paying them out of your business. They're building wealth for the future. They're building their own college savings account and you're rocking and rolling people. It is legit. The American dream is real and we need to teach our kids about it. All right, next question. Oh I love it. All these great questions. I'm going to go faster. El Bjorn Smartenhow says, do I have to do my taxes? I have a W2 job with an LLC that has two owners. Do I have to do my taxes? LB1, I have a W2 job with an LLC that has two owners. Boy, that's a big question. What I think you might be asking is do you have to do your own taxes? No. You can get a tax advisor from my network, but I want you to captain your ship. Know what your strategies are. Are you writing off cell phone, dining, Travel, Home Office, RVs, trucks, equipment, supplies, Home Depot, Office Max, Apple Store, Best Buy. I want you writing off everything you can. And if you have an LLC with two owners, damn straight you're doing a tax return. It's called a partnership. Is it an LLC with rentals and an operational llc? Please get a console, I beg of you. I had, I met with someone today that's doing firewood, a firewood and construction business. They came by the house today. I asked him how you structured, are you an S corporation? He goes, no, I'm an llc. My accountant told me my S corp would not make sense. I said, you making more than 50 grand a year? He goes, yeah. I said your accountant is costing you money. And I don't care if I piss off every accountant out there. If you have a client making more than $50,000 net, I don't care if you're in California, Delaware, New Jersey, Miami or Alaska, you can save on self employment tax with reasonable comp I have done it over and over again in my career. I've never had a client audited for taking too little reasonable comp. I have the Kohler payroll matrix. And I get pissed about this. I'm excited. And any of you watching here. If you're a small business owner, engineer, contract realtor, plumber, electrician, framer, landscaper, hair salon owner, you need to be an S Corp. If you're making more than 50 grand a year. Damn it. So get there and El Buen. I don't know what you're talking about. When you say, do I have to do my taxes? I think you're saying, do my taxes by myself. No, get an advisor. And there are so many opportunities out there to save. Dizzy says if I am. This is Dizzy here. If I am. Oh my gosh, the chat is kind of blowing up here. I gotta move slowly here. If I'm doing flips, that's a real estate professional over here doing flips. Wouldn't it be better to be a C corp instead of an S Corp? Dizzy, did you just say that? Oh my gosh. Dizzy says if I'm doing flips, that's Rehabs, Think Chip and Joanna Magnolia. If I'm doing flips, is it better to do a C Corp instead of an S corp to avoid self employment tax? No, Dizzy, no. No. And I've written a book on this. Please do not do it. Any dipshit out there that is telling you to do a C corp is wrong. Let me show you how it works. I'll put my money where my mouth is, we'll cut this up and create a YouTube short. Someone says, maybe I should be a C corp. Let's do the math. Here's a C corp. You know what I'm going to do? 3. Here's an LLC, here's a C corp, and here's an S Corp. All right? And you're fixing and flipping properties. Let's say you bring in 150. Well, if you're fixing and flipping, your gross margin is going to be huge. Let's say your profit is around 100 grand. 100 grand. So you're bringing in who knows what we're going to do the same amount. You're going to bring in the same revenue. You're going to have the same expenses. That's how it works. You can write off the same damn expenses in an llc, A C Corp or an S Corp. Travel, dining, auto, computers, electronics, equipment. You're going to write off all the same crap, okay? And you net 100 you net 100, net 100. Apples, apples, apples. It's the same damn write offs. I'll stand behind this until the day I die. Same freaking write offs. I don't know who dip shit is done. Oh well, you can push income with a different fiscal year into another year. Yeah, good luck with that. I hope you're around when you have built in gains in a C corp. And you got to unravel it for your client. Gosh darn it. Okay, 100 grand. 100 grand. 100 grand if I have an LLC. This was the contractor firewood guy I was talking to. Today you're going to pay self employment tax of 15.3%. That's going to be 15 grand. Then you're going to pay state and you're going to pay federal. It sucks. Doesn't work. Not good. Stupid. What can I say? Then if you do a C corp. Oh, now I've got to pay 21% corporate tax. Corporate tax and 21 grand. Then I got to pay state and I got to pay federal. So I'm paying corporate tax. Well Mark, if I take a bigger salary, then I don't have to pay corporate tax. Yeah, if you take a salary, what are you paying? Fica. The F word. The same damn thing as self employment tax. So what do you do? You do an S corp. And I'll just be conservative. I'll be conservative. I'll take this 100 grand and I'll do 50 grand in W2 and 50 grand in K1. Now you know what happens here. No corporate tax. So none of this shit. Sorry. And no self employment tax. I get 50 grand clean to the bottom. Now over here on my W2, I pay FICA. And so instead of paying 15 grand, 15.3 on 100, I paid 15.3 on 50. So I just cut this in half. I'll go to blue now. So I just saved $7,500 by being an S corp. You want to be a C corp? Well Mark, I'll take more salary. Oh, now you're paying fico? Well, I don't want to pay corporate tax. Okay, I'll pay more corporate tax. And then C Corps are a disaster. Now if you can keep your C Corp under 20 grand, maybe, maybe zero it out, maybe. But my successful clients lose every effing time with a C corp. I'll debate that with you all day long, people. All day long. All day long. Be careful. Do not get sucked into a C corp. All right. Igami says, what are your suggestions for starting a small Business in your field of expertise. When an employer has a non compete egami, gotta be careful if you're going to start a small business with a non compete. Maybe start that business under your wife's name or your husband's name. Start it under your brother's name, help him out. I don't know. But you got to work within the law of the rule. No one's going to jail. But if you want to violate that non compete, you might get sued. So be careful with that. Buy a rental property, do some real estate, get outside the box. If you've got to honor that non compete, honor the non compete. Don't you want. You don't want to have an ethical issue, cheating your employer and competing under the table. Danimal says I made approximately 200 grand in W2 income. My accountant said I could not contribute to a Roth due to income limits. Oh my gosh. Can you please elaborate on how this contribution is made possible in the future? Danimal, I am so glad you asked everybody out there if your accountant says that you cannot contribute to a Roth because you made too much money. You have an incompetent, uneducated CPA or enrolled agent. They have got to get educated. And if I'm pissing you off, one of you CPAs enrolled agents, please get to my website marcjkoler.com Sign up for my certification program and I will guarantee you better clients, a higher rate per hour. And I will teach you how to contribute to a Roth when you make more than the contribution limit. So here's how it works, Danimal. I don't hide the ball. This is called the backdoor Roth IRA people. So here's the house. And what you want to do is you want to go play in the Roth party. You're like, Mark, I want tax free growth, I want tax free withdrawals. I want to be in the party. And if you go into the front door, and I've got the numbers right here, this is the Mark J. Kohler calendar with the tax sheet here of what you can do. If I want to go in the front door in 2023, if I'm single and I make more than 153 grand, I can't go in the front door. If I make more than 228 grand, I can't go into the party. And so some accountant Danimal has said, oh, you cannot contribute to a Roth if you make more than 153 grand or 2,128. I'm sorry, Danimal, you can't Play in the Roth party. Well, the backdoor Roth has been around for freaking years. I've blogged on it, talked about it on my podcast tell. I've taught workshops around the country. I verify this stand behind it all day long. You got to go in the back door. I want to go in the back door. So what you do is you make. You don't go in the front. You can't you make a non deductible contribution to a traditional IRA because if you make too much money, you don't get a deduction for an ira. So you would never, ever, ever make a non deductible contribution to an IRA because you're like, I don't get a deduction. Why put it in the ira? Well, the reason why you do it. And this year you can do 6,500 if you're under age 50 or 7,500 if you're 50 or older. And you say, mark, I'm going to put in a non deductible contribution. And on day two, okay, this is step one. On day two, you convert or chunk convert this IRA to Roth and you don't pay any tax. There's no tax when you convert to Roth. You know why there's no tax? Because you didn't get a deduction when you put the money in the first place. So you put the money in a non deductible ira, you convert to Roth on day two and you're in the back door. There is no income limit to converting to a Roth. Warren Buffett can convert to a Roth. Mitt Romney can convert to a Roth. I can convert to a Roth. Anybody at any income level can convert from an IRA to a Roth. So you do a non deductible convert to Roth with no tax and you have a Roth ira. It's called the backdoor Roth is existed. If your account doesn't know about this, Google Mark Kohler backdoor Roth and you're going to see podcasts and videos and blog articles on how to do this. It works all day long. So Danimal, I am so sad that you had an accountant say that to you. Og Jenkins, can the employer by insurance policy as bonuses and the employer get a deduction? No, not really. There are some term insurance tax deductions up to a certain amount of term. That's terrible. These are called usually key man life insurance policies. Companies want to do those to help attract employees. But getting a tax deduction for life insurance is very, very difficult, if impossible. The reason why is because Dan Jenkins here oj Jenkins because life insurance is tax free when you receive it. So the IRS doesn't like to give a tax deduction for life insurance when it comes out tax free. So really meet with one of my tax lawyers in my office, go to kqslawyers.com meet with one of my tax lawyers and say I'm trying to create some key man policies. What are the write offs? How can I write this off? We're also covering life insurance in my workshop in Salt Lake on later this month the Tax and Legal360 Randy Lupke, the CO author of my book who's a Licensed Life Insurance Agent Series 6 Series everything RIA he will be there talking about life insurance. He can help you with that. OJ Please come to the workshop. So affordable. Or sign up for the virtual ADP5G HSA crypto. You keep crypto with Gemini? Yes. Is there a better way to keep your crypto with you? Does SEC cases affect the HSA crypto assets? Assets? No. The SEC has no negative impact on their new rulings. Have no negative impact on crypto being held by a health savings account. So if we go to your One of the strategies everybody is if you want to do oh by the way, I need to say this. If you want to do a backdoor Roth IRA or an HSA crypto, get to directed ira.com directed iraq. You can set up a self directed Roth, a backdoor Roth self directed crypto Roth self directed kid Roth. You can do it all. Okay, so if you're going to go over here and do a Roth IRA and you want to buy cryptocurrency, you have two options. At directed ira we have the simple go for it easy Gemini Roth ira. So you just use whatever's on the Gemini platform. We have a relationship with them. They're a really well managed, safe custodian. We love them. We've had a great relationship with Gemini. We know Voyager was a train wreck, rvx. I mean all that was a mess. But Gemini is wonderful. If you don't trust Gemini and you want to be in a Metamask wallet or a ALT Asset wallet, which I understand, you take your Roth, you form an LLC in your LLC goes to metamask or crypto.com and do your transactions and drop it into wallets. I like that. I think Metamask is a great way to go for those that want to be a little safer. You don't trust exchanges, but you have to set up a single member llc. Now we have this structure. We do IT all day long. You work with an attorney. We set up your self directed ira, llc, your Roth funds it, you're off to the races. You know what's funny? I just set one up for myself today. Another one. I'm taking my LLC and I'm doing Turo. So my LLC is buying Turo cars and partnering with a Turo operator and I'm creating Turo revenue in my LLC owned by my Roth. Very doable. Okay, Roy said, let's see what else we got here. I'm going to go quick. Chris says I have a government job. I don't have high deductible health insurance. How can I get an HSA account? Kins a lot of people that have that have served our country admirably and have VA benefits sometimes don't like the va. They'd like to build a health savings account. What you have to do Kris, is enjoy your government insurance if you want to use it or not and go buy an independent health insurance policy. That's HSA qualifying. And now you can have an HSA today. I just quoted it for a single individual in my family. They got an HSA plan. We got it for 337amonth. 337 for an HSA qualifying plan. Get the high deductible. Who cares if you use it, it just unlocks the hsa. Now yes, you have two insurance policies, one with the government and an independent plan, but it unlocks the hsa. But you're not going to get an HSA with a government policy. So you get two and it may be worth the investment. Maybe it's not. I'm just saying once you set up your HSA you get to keep the HSA and you can kill the policy. Now you can't put new money in the HSA every year but you can keep investing it and growing it. That's an idea too. Roy says can I go partner with my own Roth IRA and an LLC to purchase an investment property? Yes. I want to avoid using a non recourse loan for the purchase so I can hopefully buy sooner. Damn straight. Roy. Love it. So what Roy can do everybody. I've done this myself. You can form take your Roth ira. Take your kids Roth. Maybe this is one of your kids. Not Kid, Kid Rock, Kid Roth. Maybe your spouse's Roth and maybe some of your own money and you can form an LLC and be four way partners. That's fine. Go buy a rental property and get a non recourse loan. They're usually going to want about 40% down. So with the loan, it's going to cover 60% of the purchase price and you're going to create cash for the other 40% and you're in a rental property, you're off to the races. We've got lenders that will loan non recourse all day long. Call directed IRA again directed IRA.com and the law firm will work with you on the documents. And you have a relationship between the law firm and the trust company and you're off to the races. Roy. Sam says, last question, we're gonna wrap it up. Sam says, how do you feel about starting a sole prop, then transition to an llc? Sam, I love it. I have no problem with that. Here's the caution though. Now everybody, what are we talking about? Maybe he's driving Uber. Maybe he's doing doordash. Maybe he's teaching music lessons, selling drum sets, starting a little catering business. Start as a sole prop. Test it out, see how it goes. Get a DBA doing business as at the bank. Get your bank account going. But if you're starting a business that has a lot of risk, let's say it's landscaping. I just talked to someone last week. They had one of his employees got their hand stuck in the lawnmower, cut off three fingers. I'm like, oh my gosh. I mean, if you're starting a bungee jumping business for their local county fair this summer, get an llc. An LLC is good for protection. Now once you start making more money, we want to convert that LLC to the S Corporation, which I talked about earlier. So be careful staying sole proprietorship too long. If there's risk or income, we want to get into that LLC and then the S Corp when the time's right. But I have no problem with that. People, if you've enjoyed this hit the subscribe icon. Please follow me. I'm doing great posts. Every day I'm trying to move the needle for my clients. Our workshop at the end of this month, tax and legal, 360. It's affordable. It is not a sales fest. There is no selling from stage in my workshops. Please check it out. If I don't save you in Texas. Save this video. Save this video. Everybody listen my words. If you don't save five times in taxes this year from coming to my workshop, all you come in person. You come in person, you come to that workshop and I don't save you five times in taxes. The cost of your ticket, I'll refund your money. Now I'm going to quit you. I'm going to ask you, would you learn? Would you not learn? What class did you go to? But I am that confident you will save five times, whatever the cost of it. I think our premium ticket, 750 bucks for three days. And that includes lunch every day. People, you owe it to yourselves to start saving on the number one tax in your life. The number one cost in your life, which is taxes. Please get there. Subscribe like comment. Give me five stars. I appreciate it. I'm killing myself here. I'm trying to help all of you live better. Live your American dream. It's legit. I'm grateful to be a part of your lives. Thanks so much. And I'll see you next week.