Tax Strategies You Need To Know This Summer - Live Q&A

Come, everybody, to a live broadcast here on the American Dream, Main Street. Business owners, please pay attention. If you're a tax advisor, a CPA enrolled agent, an attorney. If you're a business owner, a real estate investor, I've got some summer tax strategies that, you know, it's a little cliche to say, but are gonna blow your mind to my best. If I don't make you money in this little, you know, live broadcast, then I've blown it. So please have a pad of paper handy. Take this seriously, pay attention, and if you enjoy this, share it. I've got so much to share with you. I've got 1, 2, 3, 4. I'm gonna go 5. I've got 5 strategies that relate to your summer plans, not maybe all of your summer plans. Some of you I know I'm gonna grab one of you. I'm gonna grab all of you with at least one of these strategies. That's what we're gonna do. So now I'm a cpa, an attorney, a senior partner in a law firm, accounting firm. I'm educating and training business owners and tax advisors around the country on tax strategies, helping them get certified to be a better just for their clients or even for yourselves. I've got a. An offer here in a moment. That free demo just to kind of see what I'm doing in certifying folks to save money. I just. Saving money can sometimes be easier than making money. So let's dive into it. Let's have a good time. And we're going to be. We're going to be going to the whiteboard. I'm going to be doing live Q and A. Now. Please ignore YouTube, Facebook, ignore any of those stupid bots that are trying to sell crypto or some sort of scam. I am not going to be posting. Do not listen to anybody that says, oh, I just saved money and some crazy strategy. Just focus here. Ask a question if you'd like. If I don't get to it, repost the question. My team's going to be helping me out. I've got Patrick in Idaho, Tristan here in Phoenix. I'm live, ready to rock your world. So we're going to have a good time. Now here's my five strategies. I'm going to at least lay them out so you know what to expect here, and then I'll unpack them, we'll do some Q and A, and I'm going to save you some freaking money. So it's going to be a lot of fun. All right, so here's the five. And I'm going to go with the ones that I think are going to affect. I'm going to go with the ones that are most broad and then might be the most specific. Okay, number one, I think all of you are going to have a barbecue this summer. I'm just saying, okay, These are tax strategies. Trust me, you're going to love this. And you CPAs out there, hey, I'm legit. I'm like licensed in three, five states. I don't know, four or five states and a CPA member. I worked at the big four, the tax court. I'm legit. And I've got strategies here that you can share with your clients as well. You're going to love this. Number two, I think most of you might have a little family reunion and we're going to talk about that. How is that a freaking write off? You know, it's going to be good. Number three, I think some of you might go camping in an rv. Number four, I think some of you might have kids or nieces, nephews or grandkids. And number five, I think some of you might drink some lemonade this summer. Now, each one of these, I will promise you right now our attack strategy. That you may say, that's dumb. Whatever. No, it's not. It's a take, a creative take, and I'm going to rock your world. All right, so let's go back over here to this camera, Tristan. All right, so here's the deal. Number one, barbecue people. It is an IRS rule, regulation, statute, case law supported that you can write off a dining experience, talking business with an employee, a customer, client, a vendor or a potential partner, or I'm going to say a networking type lunch where you might be doing business with someone. That is a write off. That includes picking up steaks and some deli meat and some different salads at the grocery store and having a barbecue. Here's the point. When you have a barbecue, make sure it has kind of a business twist to it, a business purpose. And that's okay. You're not committing tax fraud. You're not doing anything wrong. I'd love you to have a barbecue every week where you have a networking business type barbecue. Use it to build your business, build your relationships with your clients, your customers, your employees and your family should be employees in your business, which we're going to come to a little later here. But I'd like to see your family serving on the board of directors, the board of advisors, and we're going to talk about kids or Nieces, nephews or grandchildren that might be off school track and they are helping you in your business. But here's the point. When you have a barbecue, talk business. Talk about the real estate you're investing in. Talk about your product, your services. Talk about your five year plan. Talk about your plan for the rest of the year. Get advice. Teach a concept. You know what, people love to learn. They really do. And if you're. You know what, I'm going to be a little blunt. If you're hanging out with people that don't want to talk about money and don't want to talk about building wealth or the American dream, you might need to change your friends a little bit. There is such an incredible opportunity to talk business with others here. Let's go back over here. I was talking with. Who was it? I think it was Buck Wise, incredible marketer. And we were talking about how our personality as business owners is one where I'm going to attract other people that want to talk about business. And that's okay. That's a good thing. You're going to elevate your own conversation and elevate your business by breaking bread and dining with other people that share your vision. So I challenge all of you to have some freaking barbecues this summer where you talk business. Now, it's a 50% deduction. That includes the drinks, the beer, the wine, the barbecue, the meat, the whole nine yards. Keep good records. Let your business entity pay for the barbecue. Now let's go to the whiteboard. For many of you, you've seen my trifecta, which is the business structure I like to see clients use. That's their revocable living trust. We split their life in half. Over here they might have an LLC with a couple rental properties. And over here, they might have an S Corp or a little llc and they're doing a side hustle. All right, we'll come back to this a little later, but here's the thing. Let your business checkbook pay for the barbecue and make sure you just have in your calendar what the business purpose was. Did you pitch a product or service? Did you have a planning meeting, a board meeting? What was it? Now, in our trifecta, your trust owns the LLC or owns the S Corp or, or the other llc. And we're going to build this foundation for asset protection and tax planning, wealth building. That's a whole. Yeah, I'm here every freaking week, people. You got to eat this stuff up. You're going to love it. Get over to YouTube and check out my Channel. But this is. The point is, always don't pay for your barbecue out of your personal checkbook. Do not do that. Let your business pay for the food. Whether you're headed to the grocery store or Costco or whatever, pick up the meat through the business, that's going to be a tax deduction. And all you have to do is put in your calendar what the business purpose was if you ever get audited. I've never had it. In 25 years, I've never had a client audited for dining. Now you're. I don't want to. If your business only made two grand last year, I'm not going to write five grand off in dining. But. So we're going to find a good balance. But the point is, as long as you have in your records what the business purpose was for the dining, you're done. We're good. All right. No more whiteboard. All right, now, number two. What was my number two strategy? Family reunion. Ah. People, you're not going to a family reunion. You're going to a board meeting. I'd love all my clients to have an LLC with a board of advisors or corporation with a board of directors. You don't have to file anything with the state or the IRS to do this. Now, you want to have the internal paperwork so if you're ever in a lawsuit, it actually makes your LLC or corporation stronger. If you're ever in an audit, it makes your audit more. Your tax return more audit proof to show that you are having regular board meetings. So what I want you to do is at your next family reunion, you're going to say, hey, Grandma, mom and dad, brother, sister, niece or nephew, grandchild, kid, whatever. Get around the table. I want to tell you about the business. I want you to talk. I want to. I need your advice. Don't get up and lecture. Be a jerk. Get up and say, hey, we're trying to expand and level up the business. We got a few ideas I'd really like your guys take. Now, whether you take their advice or not, what you're doing is you're teaching the American dream. You're teaching business. How many of you grew up not talking about money at the kitchen table? Not talking about business? This is your chance to change the dialogue, change the history, the future of your family by talking about business. It's okay. It's okay. You know what? On an emotional note, I'll tell you this. You go to your mom and dad and say, hey, I'm kind of expanding my business. I'd like Your advice, your parents are going to fall off the chair and just go, oh my gosh, you really want my advice? People are. Our family has been through a lot. You can reach up, you know, to these family members that have lived longer than you and ask them for advice and get it and they will love it. Now, what that means is that your family reunion is now a tax write off because you're able to write off the airfare, Airbnb, hotel, Uber, rental car, the list goes on. Not dining, dining, separate. The food you spend at the family union is going to be a deduction limited by 50%. But the, but the travel is 100% write off. Now, I can't write off 10 days in Yellowstone, but I can write off two or three days because you're going to have some business meetings and talk strategy and take good notes of who attended and what you covered. Now, all of your travel to get there, maybe one or two nights of costs and the travel to get back is a write off legitimately. People, this is, this is legit. I'll sign your tax return all day long. We help clients around the country with this. Travel is a wonderful write off. That, my friends, is number two. Now save up your questions. Down below, you type the questions you might have. I'm going to hit them. And also, if you'd like, a demo of just my certification program of I helping business owners and tax advisors, enrolled agents, accountants, CPAs. I have a certification and I'll stand behind. It is the best in the country. 70 plus topics, 12 modules, 800 quiz questions. It may seem daunting, but it's not. It's diving in and learning all these different strategies that are going to help you save money. If my certification doesn't save you more in taxes than it's cost, let alone helping you advisors make more money in your practice. Because us business owners out there are starving for a good tax advisor. Then I failed. I am guaranteeing that my program will save you taxes more than the cost of the program itself. It's not that expensive. Check it out. The demo is free below. You can click on it. Okay, now let's move to our strategy number three, the rv. I love the RV as a write off because it's not an rv. It is a business office. It is a moving business vehicle. And when you go out with your rv, yes, if you're going to the lake or the national park and it's all personal, it's not a write off. But I want you to use that RV to attend conferences, attend Expos. You're going to sell product or services. You're going to use the RV to park at the rental property you might be working at. I'd like you to use the RV to go do business. Let me share a quick example. I had these clients, they were just great. They did a. Some of you may have heard the story before, I love it is they, they would do these Santa Clauses. They make Santa Clauses and sell them in these little Christmas shops on consignment. And during Christmas you might go into these, you know, exclusive Christmas dedicated only type shops and they'd sell these Santa Clauses that could be 1 foot high or 3ft high. And they've, they've got, you know, they're real velvet and gold this and little fur that and they're little, it's. They're just cute, right? And people will buy them and put them inside their house, by the, in the house or outside the. And by the fireplace, whatever. Well, my clients, they would go around in the spring and the summer with their RV and pick up supplies. They pick up all the supplies to build these little Santas back to their workshop in the summer. Now it was funny where they'd go pick up supplies. A lot of their grandkids lived, kind of odd. And then they come back in the summer, build these little Santa Clauses and then in the fall they'd drive back around going to the places they love to go in their RV and drop off the Santa Clauses, do some final touches, put out the supplies at these consignment shops and walk away. They make probably 30 to 40 grand a year just selling Santa Clauses and they wrote off the rv, their travel and dining the entire time. It was a business trip. So people, when you're out there buying an rv, think of how can I integrate this into my real estate business, my small business. Can I park it at my business location where I'm doing business on, on site? I don't know. Think about it. I have clients that are doing RV inspections and RV repairs and they drive around with their RV to do their business. It's a wonderful strategy. Little shout out to Stephen Koop down in Athens, Texas. So folks, this is the RV is a real write off and it's personal property. You can bonus depreciate 80% of it this year. Now for those of you that are full time RVers on the road full time in your, that's your house. I cannot write off your RV when it's your primary residence. But any of you out there in a sticks and bricks you got a house with an RV parked on the side of the house. Let's figure out how to write that off. That's strategy number three. All right? Number four is the kids. The nieces, nephews, the grandkids. Oh, my gosh. They're around for the summer, and they are driving you crazy. The first week was nice. Oh, so nice to have you around. The rest of the time you're like, don't you have something to do? Get the hell out of here. Drop them off at, you know, the city pool or the library. Having flashbacks. What my mom did with my brother and sister and I. Now, here's the deal. If your kids are home for the summer, find a job for them to do in the business. I've had clients that literally buy, fix, and flip property. They buy into spring in the summer, the whole family works on it. They sell it in the fall, and they fund the kids retirement accounts and college savings accounts with the sale of the property. Sometimes this one family was just classic. They'd even just break even. And you'd be maybe say, why are you buying a property to fix up and just break even? Because they're teaching their kids how to work. Grandparents that have a farm and a house and a small business, and they're like, I'm going to build a business just to teach my kids how to work. It was the mayor of Cedar City. I loved him. Cedar City, Utah. A little shout out to. To Mayor Merrill. His last name is Merrill. Can't believe I just remembered that. I remember talking to him Sunday after church sometime. We were out in the hallway talking, and he said he was complaining. Actually, I want to be accurate here. I was actually walking by and he was talking to a friend, and he was complaining about his landscaping business. So the mayor of the small town had this landscaping business he kind of did on the side, and it was kind of cool. And he was complaining about it, and I was like, I stopped. And I was like, what the heck? I thought you kind of liked your business. He's like, the only reason I do this landscaping business is because I have three teenage sons. As soon as I get them off to college, I'm out. He's like, I'm done. And I was like, what? He was kind of like, what are you talking about? And this was when I was early on as a tax advisor, CPA attorney, and he was like, mark, I started this business to teach my kids how to work, not to make money. Now, I think he enjoyed making some money out of too. But the point Was the business can be an incubator to teach your family, your nieces, your nephews, your grandkids about business. Now here's the tax strategy. That's great. When you pay your kids, your kids under age 18 in one of these LLC side hustle. Sole proprietorships in my book. Tax and legal playbook right here. I'll hold it up for those watching online here. Tax and Legal playbook. You can get it on Amazon Tax. Five star ratings in the hundreds. It's awesome. Please check it out. I've got a whole chapter on paying family member. Do you pay your spouse? Do you pay the kids, the grandkids, how do you do it? But here's the general and I'll answer questions here in a minute. We've just got a short live here. Not trying to hide the ball. When you pay your kids, you're not paying taxes. And then giving your kids money, you're putting the kids on the payroll. And with your own kids, you don't have to use a W2 or a 1099. UCPAs out there maybe cringed. No, you do not have to issue a W2 or 1099 to your own kids when you pay them out of a sole proprietorship single member llc. I'll stand behind it all day long circularly. You want the research? I got it on my white paper. IRS doesn't care. There's no penalty, there's no withholding on one of your own children with FICA because they're your kids. So here's the point. I 1099 kids 18 and older and I just call other expenses paying my kids in my business. So if they're helping out with janitorial office duties, marketing, maybe this summer they're out just helping with the rental property, picking up garbage, mowing lawns. That's a tax write off. Quit paying taxes and giving your kids money this summer, put them on the payroll, take a tax write off and they don't even pay taxes on earned income on the first approximately $12,000. Seriously, they don't. And now they may pay state income tax depending on the standard deduction in your state. Talk about the federal standard deduction here. You don't have to withhold FICA at all. Now my kids 18 and older get a 1099. They got to file a schedule C, which is a small business, and now they get write offs. Now I could go on and on on that strategy, but strategy number four is when your kids are home for the summer, put them on the payroll. All right, just in this role. Okay, over here to our other camera, a lemonade stand. Number five strategy is a lemonade stand. Now, what the lemonade stand is all about is having a side hustle. I was. I talked to my son right before I came into the studio, Dylan, and I said, is it okay if I share your story about your summer business for those two years? And he's like, sure, that sounds good. What he did during the 4th of July parade is he would. He and his buddy bought almost like 200 sunglasses for like 5 bucks, 5 bucks a piece on some website in China or something. And then they went around with a tray, kind of like a. You'd see in old 50s movies, like a cigarette girl walking around the casino, and there's a little tray hanging from their neck, and they have all these sunglasses here. And they went around the 4th of July parade on the streets all morning, and then during the parade until about lunch. And they would sell these sunglasses for 20 bucks a pop because everybody's at the parade and they need sunglasses. They were the Johnny on the spot. And they would sell out every time. And they did it for like two or three years in a row. And it was so fun to watch this people. The number five strategy here is you may have as a little side hustle, you want to give a shot. I've had clients that have done corn dogs up at the Alaska State Fair. You know who you are. I won't call your name. I've had clients that do little things at the farmer's market in the summertime on Saturdays, the Fourth of July parade, selling through a lemonade stand and all the things that you could do on this street corner. And it's super fun when you involve, again, the family and the kids and the nieces and nephew, the neighborhood kids. Some of you may not have children. That's okay. That's cool. Pass out a legacy to your own friends and neighbors and community. You can have a really good time just getting that side hustle vision and sharing it with others. And it's a tax strategy, because here's why. Some of you may just say, get your kids out doing babysitting more in the summer. I had a client. Let's go back over here on the screen. I had a client last year that was wanting to fund the Roth IRA of their daughter. I think they were over in New Jersey, and they said, how much can I put my daughter's Roth IRA this year? And I was like, five grand or so this year or so ago. Five grand. And he goes, well, I Didn't pay my daughter five grand out of my business. And I said, well, was she babysitting at all this year? She was like 15 years old. What 15 year old girl is not babysitting? He goes, oh my gosh, she was killing it. She was babysitting all over the neighborhood and she probably made ten grand babysitting all year long. I go, really? She can fund a Roth ira? So you can fund a Roth with earned income. And you say, well, didn't she pay taxes on that? It doesn't matter. She may have write offs. She doesn't even owe taxes on her first 10 to 12 grand, her standard deduction. So this was a great opportunity for you to pay your kids. Take a tax write off. They can claim the income if they need to at the state level or federal level, oftentimes not paying any tax at all or they're in a lower tax bracket and now they can fund a Roth IRA. @directra.com we do not require seeing a W2 or a 1099. We don't even require the 1040. We actually believe our clients when they check the box. Yes, I have earned income over the contribution amount. That's how it's supposed to work. If you get audited, it's on you, not us. So we would love you to get on the directed ira.com app or the website and set up a new Roth account right now. Make sure your kids are earning money this summer and you're paying your kids in this side hustle. Maybe some of you are starting a side hustle just to fund a Roth or fund a 401k. It's so exciting. So number five is to start that summer small business. Share the American dream with someone, make some extra money and fund your retirement account or theirs, or both. Friends. Those are my five strategies and I'm going to summarize it here again right off that barbecue, talking with business with your friends, family network marketing group, or whoever you're working with. At the next family reunion, you're having a board meeting and you're going to write off the travel to and from your family reunion. The rv a great business vehicle to integrate into your business or real estate investing. Number four, paying your kids, nieces, nephews or grandkids to help you in your business this summer. And number five, starting that little side hustle that might be unique to the summer activities. Outside a baseball game, outside the Farmer's Market, the 4th of July parade, the county fair. Make some extra money with a side hustle and take the Profits from that and fund a retirement account, build wealth. Now think if you did that for five to six years in a row, what you'd have sitting there in millions, literally just 10 years from now. It's crazy. All right, well, those are my five strategies. I love the summertime. Maybe I should like, Kid Rock has a sweet summertime song. Maybe we should be playing that anyway. All right, so I'm going to run to some questions here. I don't know if it's Patrick here. You're going to handle those questions, or is it Tristan? I got to make sure my earpiece is rolling here. Let's go to our first question that we might have here before us.

All right. This is from Joe Joza on YouTube. He would like to know if you can have your child as a member of the board of advisors. And if you travel overseas for the board advisors meeting, is it still a write off?

Generally, yes. Because whether you travel to Duluth, you know, Minnesota, or you go to Paris, France, if you're having a legitimate board meeting with your spouse and or children that are legitimately on the board of your LLC or S Corp, in our law office, we do company maintenance for 150 bucks a year and do your minutes and your paperwork. Please get to kkos lawyers.com please, Patrick or Tristram, make sure that's down in the description. You can go to the law firm and say, please, someone clean up my LLC or S corp and put my kids on the board of directors. We have paralegals that do that every day. So you got to make sure that your kids are really on the board. You're having a legitimate meeting and you're traveling somewhere to have that meeting. And I'm okay with that. Now, can you write off 10 days in this foreign country? No. You can write off one freaking day because that's the day of your meeting. Now, if you can couple it with some training, a workshop, a conference looking at rental property that you actually make an offer on or already own, maybe you're meeting with some other vendors or customers or clients, now we can start writing off more days, but in concept, there is no problem with that. And I will add this. If your business is driving Uber and you only made 20 grand last year and you want to write off 10 grand going to Puerto Rico with your kids, I'm not probably going to get excited about that. You make 200 grand in your small business in doing landscaping, and you're going to do a board of directors meeting down in Cabo for three days. Yeah. I'm all ears. So it's got to be, it's got to make sense. It's got to be relative to the amount of money you're making in your business and what you're trying to do. And it's got to be well documented. But yes, the answer is yes. Just do it right. If any of you want to consult with one of my tax lawyers, get to kkos lawyers. We'll put together a trifecta for you, a diagram and spreadsheet and checklist of all the things you can be doing better. Meet with your accountant. And some of you are like, I just need to level up. And you tax accountants and advisors and enrolled agents, CPAs watching here, check out the certification program I'm doing. I will guarantee you're going to make more money, increase your billing rate, have better clients and build that advisory practice. In fact, I even have a tax advisor boot camp in the next couple weeks. Just schedule a free demo, check it out and my sales team will tell you all about it. There's no pressure to just get a demo of the certification. All right. Okay, I'm looking here at questions on line two. What do you got? What's next?

All right, this is from Stephanie Okada McCabe, also on YouTube. Okay. She wants to know, do all family members need to be on the board of directors to hold a holiday party, barbecue or meal write off. And if they do it in a destination and all of the family is on the board of directors, does the business cover their travel and meals as well?

Yes, yes and yes. Now let's unpack that a little bit. Very similar to the first question. You want your kids. Now I'm talking at least teenagers or older that can actually contribute to a board meeting. I'm not talking about 7 year olds, but a 12 year old and older can serve on the board. And you're going to pay for their travel and their dining and you're going to have a board meeting traveling around the country assuming that your business is making enough meeting money to justify this. I have no problem with that. Now you're going to want the law firm to be documenting your minutes. We give you a 25 point checklist of things to talk about in your board meeting. You can even pay to have one of the lawyers zoom in to your board meeting. We're here for you and we're affordable. We're Main street tax lawyers. We want to help Main street business owners and keep it affordable. Don't be trying to hack it out with someone that says they're a lawyer or I'm a document preparer. That's just someone committing the unauthorized practice of law. And you can get a real lawyer that's affordable. So do it right. And yeah, the answer is you can do it. All right, Patrick, what's next?

All right, this is from Brenda Smith. It's a little off topic, but I feel like it's a good question for you to answer. Answer? I asked my CPA why he didn't include my paid estimated taxes and the bonus depreciation on the return he prepped. He said the IRS will add it in the estimated taxes. He said the bonus depreciation was entered into business. Miles, am I wrong to believe the CPA is or do I need a new one?

All right, so at the very beginning you said their cpa. Did you say auto deduction? Am I. There may have been a skip there.

What you're trying to say, it says he didn't include my paid estimated taxes and the bonus depreciation on the return he prepped.

Wow. Okay, so it sounds like this is good. Everybody, here's what's going on. A taxpayer looks at their tax return and says, why are my estimated tax payments not in here? I made the estimated tax payments and the accountant made a mistake. So what the client did is called up and go, what the hell? Where are my estimated tax payments? And their answer was, oh, it's okay, the IRS will add them in. Now, it is true that if they're in the computer system, the IRS should pick it up. But people, how many times have the IRS jacked up your tax return? Are you really going to rely on the IRS to make sure it's accurate? I thought you were paying your CPA to fricking do it right. Bonus depreciation. The IRS doesn't give you bonus depreciation. You have to freaking write it down on the tax return and claim it and do it properly in the right method. That's bs. The IRS isn't just going to add bonus depreciation. So my dear follower that's watching today, you need to get a second opinion. Now, I've got a tax advisor network of tax advisors. I've trained around the country, certified by me that speak Mark Kohler language. You can go to markjkohler.com and just go to the top and look at the network. Just click on it. We've got 30 plus advisors. I'm going to have 100 by the end of the year. Any of you that are interested in that, I'll feed your clients I don't take any of your money. That's you and your client's relationship. I just want to make sure you're trained. So if any of you are looking for a tax advisor to double check your tax return with someone that kind of gave you some weird advice like we just heard, go to marchacoler.com, click on the network and do one of them. Find someone that fits your style. They don't have to live down the street, people. Well, do you have an accountant in Cleveland? I don't know. Who cares? I want an accountant that thinks smart and is communicative and is going to talk with you on Zoom or on email and kick ass. I don't care if they're in Miami or in Alaska or down in San Diego. The point is, get an accountant that knows what the hell they're doing. That's what matters. Sorry, I get excited here. All right, Patrick, who's our next question?

All right, the next one is from Stephanie Holm from YouTube. Can I rent my house out every five days to the same person and write it off as a text write off from a W2.

Okay, so Stephanie wants to rent out her home every week, every five days for one day to someone and take a write off. Sure, Stephanie, but you also have to claim the income. And so first of all, let's think about this, everybody. Do I like a client making money running a room in their house? Renting a basement apartment, running a loft duplex? Sure, that's great, Stephanie. Make some money renting your house. I'd like you to have some extra revenue now. You got to claim the income and you get a write off. So now we got to talk about depreciating a part of your house. We got to look at square footage. What are you renting? How many days out of the year? What's that use? What are we going to write off? Part of the utilities, part of the hoa, part of the mortgage interest? Or are you renting yourself and then you're subletting? Yeah, you can do all this, but just remember, you're claiming the income and taking the tax write offs. I will say this. Most of the time, people, when you're. I'll say this. Whenever you're renting a part of your home, most of the time what's happening is you're just making more cash flow, which is great. You're usually not going to have more write offs than income in that type of situation. And you got to be careful when you go to sell your home because you've got to recapture depreciation. And now you can 1031 part of your house into a new property and also take the 121 which is your cell phone exemption. Now it's a little technical what I said, but you tax advisors out there, you know what I'm talking about. You can do a 121 and a 1031 on the same property and we teach that. I just did a real estate tax summit. We're helping clients do that. I've got a three day workshop in Salt Lake the end of July. 45 class, 45 sessions, 23 different classes. Come check it out. This will be down in the info below. But so I know what we're talking about here. And Stephanie, just be careful. You can do that, but you've got to make sure you're claiming the income and taking the right write offs. And it's great to make money. I'm just not saying it's going to probably be the best from a tax savings result. But money making is more. And everybody here's an important point. Making money is more important than saving taxes. Now saving taxes is extremely important. But some people are like, well, well, I don't want to make the money because I'll pay taxes. No, make the freaking money. I don't care if we pay 30% on it. You just made 70% take home. So let's get the best write offs we can. But let's not stop making money just because I got to pay taxes on it. So let's just realize that Jing and Yang, making money, saving money, they go hand in hand. All right, next question, Patrick.

All right, the next one's from Bruce Sayed. California standard deduction is 5202. If I pay my 15 year old daughter up to that amount, does she have to file a state tax return?

Well, if you pay her up to that amount, the answer is no. I actually think it's a little higher. Do you have one of my calendars around here handy? All right, I've got, I think, but anyway, yes, whatever the standard deduction is in your state, folks. So let's say the standard deduction in Your state is 6 grand, meaning you don't pay taxes on the first $6,000 because you have a standard earned income deduction. But the Federal might be 11 grand. Okay, let's just say it's adjusted for inflation changes every year. So let's say you pay one of your kids 10 grand out of your business. They're under age 18. You don't have to withhold any FICA, FUTA, SUDA. No workers comp. You're good. Take other expense. No. W2. No. 1099. It's clean. Doing it for years. Not a problem. IRS knows it. It's a family business, family member deduction. It's normal. Well, you pay them 10. Do they need to file a federal return? No. And, oh, the state standard deduction is 6,000. So now they have to file a state tax return and pay state tax on $4,000. Now, is that a bad thing? No. Your kids in a lower freaking bracket than you. If you want to pay them 10 grand, take them 10 grand. You're like, well, I can't pay them more than six or they pay taxes. Yeah. Guess what? Your tax rate's a lot more than theirs. Oh, yeah, you're right. I'm going to pay them 10 grand, put it in their college savings account and fund a Roth IRA and do this and do that. Great. They're in a lower bracket than you. It's not the end of the world. So I don't tell people you can only pay kids up to the standard deduction, state or Fed. It's just that if you pay them more than that, they gotta file a return. And that's not a bad thing either. So you're okay. All right, Patrick, what do you got?

All right, let's jump over here. I have one comment and then one last question from Dividend. Dave says, I'm a real estate investor. And this is correct. He was talking about you letting everybody know that you invest. He says, let everybody know you invest. They may become future partners. Wink, wink, and then.

Sounds good. Keep investing in real estate. Love it.

From dad and Eli Gameplay. He would like to know, can a minor have a dba, I. E. Yard mowing business?

Yeah, absolutely. A kid can go out and do. Look at this. Think of it this way. Did Miley Cyrus make money from Disney on a W2 when she was working on the Disney Channel? Yes. Did she also sell product? Yes. She was making $300 million a year at age 16. By age 18, she had made a billion dollars in product sales gross. Can she do that? She's not 18 yet. Can a kid under age 18 make money? Can they open a DBA called Hannah Montana and make money? Yeah. They can open an LLC with parents and others. And when you start talking legal documents, it gets a little trickier. But your kids can have a dba. They can have a teen checking account. I love Wells Fargo, Chase, B of A. They all have teen Checking accounts. Help your kids start a small business. Help them start a sole proprietorship. Now they're going to pay self employment tax on earned income that they make from others. They may want an S corporation. A kid under age 18 can have an S corporation. That's for saving on self employment tax. Another. Another chapter in my book. Shameless plug. So the tax playbook. But with your kids, when you pay them out of your business, they don't have to pay self employment tax and you don't have to withhold fica. It's when you. When they go out and work for third parties. But yes, a kid can have a dba. Absolutely. Love it. I want kids to start small businesses.

Yeah, I have one more.

It's okay.

Joe Majoza again. I thought this was a good way to wrap it up. He says, I'm a CPA turned real estate agent or real estate investor rather. And my CPA license is expired. I'm full time real estate investor now. Can I sign up for your program? I don't want to reinstate my license.

Oh yes. People, let me say this in summary. And this is not an infomercial. I'm here every week. I'm trying to answer questions and help all of you better. The live the merry dream. But let me just say this. You business owners out there, it can be hard to find a good accountant. You've got to know your stuff. You're the captain of your ship. I have a certification program where we meet every week, we talk about taxes and building wealth. It's not that hard. And it's fun to save money and make money. Successful business owners understand their tax return. They love knowing where the numbers are going. And I make it easy. So if you check that out. A certification program where I want to save you in taxes more than you pay for in the first year. Holy crap. Check it out. Now if some of you are an accountant, an ex cpa, an ex enrolled agent, you want to be doing more business consulting. Maybe you as a prior CPA want to pick up a few clients. Why don't get certified in tax strategies where you can charge three or four hundred dollars an hour and help others save money. You don't have to reopen your entire practice. Love it. Check it out. So in summary, if some of you want to get more knowledge in the tax strategy realm, please check out the link below. It's a demo to a calendar. You can just schedule a call and see how it goes. Just learn some more. The more you learn, the more powerful you are saving money is making money anyway. Well, enjoy your summer. Realize that everything you do this summer, I'm going to be trying to find a tax write off to do it. Mileage, auto, RVs, dining, cell phones, drones, computers, GoPros, Trips, Ubers, Airbnbs. Guys, it doesn't end. Everything you do should be about building wealth and making money in your side hustle. Then it becomes a write off. It's that easy. Keep good records, do your paperwork, make it legit. Don't try to DIY this and freaking estate website and jack it up. Give the law firm a call. Do it right. And I want to save you in taxes 10 times. Whatever the hell you pay us, I'll stand behind it. I'm not going anywhere. Go out and Google. I'm legit. All the info's there. I'm not going. No one has more YouTube videos, more podcast listens, more books and blog articles on this topic than me. Please check it out. Start drinking the Kool Aid. I'll take care of you. See you next week.