The Real Estate Tax Strategy NO One Is Talking About

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Welcome everybody to another conversation about building wealth and building our American dream. I want to help you today save taxes, build wealth, passive cash flow. There are so many pieces today coming together. I can't tell you how excited I am. Now, my name is Mark Kohler. I'm a CPA attorney, best selling authority. I'm a Main street business owner myself. I own rental property and I love the real estate tax strategy. But there's a strategy no one is talking about. And I'm telling you, all of you, that's a little strong. But a lot of you could be taking advantage of this strategy. Now in a nutshell, it is called the self rental dash for grouping election. Now here's I want to explain this to you because many of you are going to be able to take advantage of this. Some of you could work towards it, but here's what it is and I'm going to go to the whiteboard here. I want to be answering your questions no matter what platform you're on. Yeah, let me back up any platform you're on today. We'll go off the rails here in a minute and we'll talk about anything you want to on your tax and wealth building strategies. But we're going to focus here on the dashboard first. I want to explain this to you because again, it's something you could be working towards and then we'll freaking go wherever you guys want. I love again, my Main street clients, my Main street tax professionals and I know in chat many of my Main street tax pros that are part of our tax professional network are there helping answer questions as well because we're a community. So if you're a business owner and looking for a tax pro, I got a whole army of them in our Main street tax pro program. I got an event coming up here in June, the 360 event. It's our tax and legal 360 we hold every six months and it'll be in Anaheim the first week of June. I'll give you more information about that as well. All right, so here's the deal. Who's your best renter? Like if you wanted to rent to someone, okay, everybody pay attention. If you wanted to rent to someone, someone that you know would always pay their freaking rent that you know, you could find them and you could go after them with a baseball bat if you had to to collect rent, guess who that best tenant is? It's you. You are always your first best tenant. And what blows my mind and what I've been helping clients do for over 25 years is convert from paying someone else rent to paying themselves rent. And it unlocks tax strategies like you wouldn't believe. So I'm going to diagram it here in a minute. But the point is, if you're paying rent to anybody, maybe it's a storage unit, a warehouse, a commercial space, a restaurant. You're a dentist, a doctor, you're an engineer, you're a landscaper and you've got a storage unit. You're throwing your trailer in at night with your lawnmowers in it, whatever. If you're paying anyone rent, our goal is to own that real estate, the person you're paying rent to and rent it from to yourself because you are your best renter. Now when you do that, you don't have to be a real estate professional. You don't need the short term rental loophole. You, all those influencers, influencers out there talking about real estate tax strategies that are awesome, don't care. Because when you do the Dash 4 election as a business owner and you own the own real, the same real estate you're renting to yourself, you unlock all of it. Cost, segregation, depreciation, 100% loss write offs. You don't have to qualify as a real estate professional. This is big. So let me explain it in detail here and then I want you guys asking your questions. You call me out. Bring it. I'm here live. Some people are like mark, can't really be live. Nope, I am. Bring it. We're gonna, I'm gonna go to the studio here. Any questions you have, they're going to ask it of me. I want to be here for you to help you again in your wealth building tax saving strategies. All right, so let's go to our trifecta. As many of you know, this is what I teach every day with business owners and investors around the country. I want you to put your assets on the right. I want you to put your operations on the left. So let's, I'm just going to go with a realtor. Everybody knows a realtor in their circle of friends. So let's say your realtor friend started out as an LLC and then they converted to an S corporation. This is an easy election to do saves on self employment tax. And your trust, your revocable living trust is the owner. I don't care if you're married or single, doesn't matter. Young or old, your trust owns your S corporation. So let's put 100% there. This is where your income is as a realtor. As a broker. And you know what? Just to have fun, I want you all to be able to relate to this. Maybe you're a contractor, you're a handyman, you're doing fix and flips. Any of that. Okay? And you have your S corporation, which could be an llc, taxed as an S corp. All right? Then over here you have your rental property and, oh, it's a cute little single family home. Oh, that's adorable. And I want to write off all the depreciation, but, oh, I'm not a real estate professional, so I can't do that. So all my losses go into a carry forward bucket. I carry it forward. But what if. What if you have a building or even a part of a commercial building, and that's called a commercial condo. And this building, instead of paying rent to someone else, your business as a realtor or broker or contractor, whatever, you pay rent to this building that you own in your LLC. So you own 100% of an LLC. And I don't care about the mortgage. We're going to transfer title from the building to the llc. There's no due on sale clause. Not a problem. We've done thousands and thousands of these. So you're going to pay rent to a building owned by an LLC that's owned by you see the trifecta? And we're creating asset protection down the middle. You know, I've trademarked this. This is so freaking awesome. This helps clients all over the country every day. All right? So you're going to pay rent over here to this building owner, which is you, and then we're going to give use back to your S corporation. This could be a dentist with a building, it could be a restaurant with a building. It doesn't matter. We always want the real estate over on this side and the business over on this side. Okay? Pretty cool, right? Very straightforward. Anybody can do this. It doesn't have to be a million dollar business. All right? Now when you pull off this business deal, we're going to do what's called the Dash 4 election. And when you do this, you're saying all of this is one economic unit. It's all under the same umbrella. Look at my trifecta. It turns into an umbrella. And you are the owner of all this. So when you make this election and it's just as a document with the IRS, it's under Revenue Ruling 2010-13. This is legit. When you make this election, now you can do a cost segregation analysis. It's called cost seg. And you can take all this depreciation and why I titled today's broadcast about a strategy no one's talking about is they don't. No one's talking about this. All this depreciation is now deductible as an ordinary expense on your 1040 tax return. All of this goes down and we make a smoothie. We blend this all together so we're getting all these losses from depreciation against all the gains. And it all comes together here in your 1040. This is a powerful strategy. Donald Trump just a month ago said in the new tax plan that Congress is working on right now, the Senate and the House is they want to backdate 100% bonus depreciation to January of 2025. So if you're a business owner and you own your own building by the end of the year, you're going to be able to take all this depreciation in one fell swoop. I was just on the IRS website just a minute ago just like looking at some of the cool little rules on this and the strategies and one of them was an example. I just love this. It was an example of a dentist that bought a building. Okay, I'm going to even say this. A doctor owns a medical practice as an S corp and a building llc. You can take off the waiver. And a doctor owns a medical practice S corporation and building LLC rented to his practice. The rental and the practice can likely be grouped as an independent business and that has common ownership under the dash for the example continues. The doctor buys a $500,000 building with 20% down. So he's into it 100 grand, gets a mortgage with the bank, drops it into the LLC and then the doctor rents the building back to his practice, does a cost Segregation Analysis, takes 400,000 of depreciation that would have been over 39 years and accelerates $150,000 in depreciation in the first year boom. And uses that as a deduction against his ordinary income. People, this saves thousands and thousands of dollars in taxes. This stimulates the economy. This is why Congress is passing legislation for this is because business owners then go out and buy new real estate to lease back to their business. Because they're expanding, they're growing, they're scaling and they create passive income from the rent that they get a deduction to pay to themselves and then the depreciation and the mortgage interest of the bank wipes out the income. So you get tax free cash flow. You get a huge depreciation deduction and you scale your business People are not talking about this enough. It's the Dash 4 self rental strategy. We've been talking about it in our Tax Pro membership for years. People, this is legit. So that's it? I mean, it's not rocket science. I just gave you on a silver platter. One of the tax strategies. We work with all of our clients on around the country and every freaking day, and we bring it together with the trifecta. An llc, an S corporation in their family trust. Please do not run out to a freaking website and go set up a Wyoming llc. Because you think that's going to do this? It will not. You have to set up the LLC in the state where your freaking rental is. You have to have your S corporation in the state where you're freaking doing business. And that example. Freaking is a technical term. Okay, there you go. Hopefully you're having some fun here. I want tax planning to be exciting, energetic, dramatic. I'm a dramatic guy, but I love building wealth. I love the American dream. All right, well, I'm going to start. I'm going to go to my studio producer here. We got Jack and Ty here in the studio. We've got some questions coming in, I hope here. Uh, Jack, what's our first question?

Okay, Mark, before we get started, this is a first time ever. Only one person wants free advice from an attorney. Can you believe it? Only one person.

One person wants free advice. Only one. I can't believe this. I'm a thousand dollars an hour and you got me. So grab me. That sounds crazy, but whatever. Super busy right now. So I'm like, I'm a thousand. I cannot breathe right now. So please throw down your questions on your small business, on real estate investing, cost segregation, real estate, professional dash for whatever. Bring it. I am here for you. So type your questions in there and please bring it. So what do we have?

Yep, here's our first question Kelly asks. I bought a condo in Boston in 2022 for my son while he was in school. He has two roommates who pay rent. He contributes what he can. Can I take advantage of this tax break?

I'd love it. Okay, so we have a condo in Boston. And first name on her.

Kelly.

Kelly. Okay. Sorry, Kelly. Okay, so Kelly has a revocable living trust, I'm sure. Kelly, I hope. And here, down Here is your 1040 tax return. Her son is living in a condo with some roommates. And so I'm going to divide this place up into three or four pieces. So. So you have tenants who are your son's Friends. Okay? And you're going to drop this condo into an LLC because you want to be protected if these guys are having a party. And then your trust owns the llc. So this is a wonderful strategy because instead of your son paying rent to someone else or to this college or whatever, he's going to pay rent to you. And then these other little guys or friends of his are going to pay rent to you. And guess who the manager of your LLC is going to be? Your son. Now this is a beautiful strategy because you're going to drop this on a schedule E on your tax return and you're going to take write offs. What kind of write offs? Travel to freaking Boston anytime you go travel for your son to, to come home and report on the business because he works for you. And now you're going to 1099 him for managing the business. So now you get a tax write off to pay your son who's going to use that money to pay tuition. So now you're getting a tax write off where you weren't before. You're going to write off office supplies. Oh, and the big one, depreciation, mortgage, interest, all these goodies. Now I get it. If you are not a real estate professional and Kelly, you may not be, I don't know, but I doubt it. It's just not a common issue that everybody's a real estate professional. So what are we going to do? Any losses? If you have losses in this business, we're going to carry them forward and they go in a bucket. And someday you're going to sell this condo and when you sell it, you get to dump out all these losses. Some people go, yeah, Mark, I'm not a real estate professional, so I can't write this off. So I'm not going to do it. It doesn't work. I'm like, no, you'll get to write off all these losses, Kelly. Keep track of them. Your son's going to college, you've got this condo, you've got these tenants. You're going to have losses more than you're going to have income, depreciation, mortgage, interest, all those goodies. So just take the write offs, put them on the tax return, carry them forward, and then someday when you sell, you'll be able to harvest them. Now, this is not a Dash 4 election because you don't have a business renting the condo. You have kids renting the condo. So this is a long term rental. That's okay. It's great. And your son's not paying rent to someone Else, he's paying rent to you, you're paying down the mortgage, you're building wealth, you're creating cash flow. I love it. It's a good thing. So, Kelly, hopefully that answers your questions. You're doing the right thing. Get that in an llc, maximize all the write offs. Have a board of directors or board of advisors for your llc. And continue to soak up my education because I know it's going to save you thousands and thousands of dollars. If your accountant does not get this, if your accountant is not talking like this, you've got the wrong accountant. Get over to marcjcohar.com to my TaxPro network and find another account that can help you. I don't make any money when you hire that accountant. I train those accountants. They pay me. But you can hire them, negotiate. Find a perfect accountant that can serve you. I would love that. All right, next question. Jack.

Okay, we got a really great one here from Sandra. She asks. My husband and I married in December, still live in our own house. Houses. Can we put his house in an llc? And he rents his house from the llc. We plan to keep his house as long term rental eventually.

Okay, so let's put this in a trifecta. I love it. Husband and wife just got married and they have two homes. Two primaries. Well, one is a question mark. Husband and wife have decided now that they're newly married, they are going to move into this one. So this now becomes their primary residence. So the question is, what do we do with this other one? I got some. I may have a better idea for you. This guy that you married probably has furniture. I like that. Let me tell you why. Because if this has furniture, I don't want to turn it into a furnished long term rental if possible. I'll tell you, it's one of the best tax loopholes. I want to turn this into a short term rental. An str. Consider, just think about it. Option one, put this into Airbnb. If it could work, you've already got it furnished, so tighten it up, clean it up, throw it on Airbnb for one year. You could put it on Airbnb. Now, I want you to go watch some of my other videos on the short term rental loophole. Because what you could do is write off a lot of depreciation under this loophole in the first year and then you can convert it to a long term rental. It only has to be a short term rental for one year. Then you can convert it to the long term rental. That would be option two. So first of all, I love what you're doing. And I would go to a rental property, keep it start, put it in an llc. Don't call the bank and tell them, hey, we're going to put this in an llc. Just freaking transfer to an llc. You will never have the due on sale clause. Set up the LLC in the state where your rental property is and then I would consider the short term rental first and then go to the long term rental. And the short term rental loophole could work for you. You also would get greater cash flow with a short term rental because you're going to make more rent with a short term rental if you're in an area where that works. Now if it doesn't, definitely go with the long term rental. Make sure it at least breaks even. Cash flow pays for the mortgage and I call it piti. Principal and interest of the mortgage, property taxes and insurance. If this breaks even on cash flow, you're paying down the mortgage, you're creating cash flow and you're building equity, you're building wealth. So do it. Go for it. I have no problem with it. We see clients do this every freaking day. So God bless you. Move forward with that. Keep your primary residence for your marriage. Turn his property into a rental. Love it. Next question, Jack.

Okay, beat chew up donated 10 bucks. So thank you. And he says, what should I come prepared with when I try and start my revocable living trust online with your firm? Love your content, love it.

So at KQS Lawyers, we have 11 lawyers that are available for appointments every day. About three to four, maybe five appointments per day with our lawyers. They may be out a week at most. We've got a regular relationship with clients all over the country. So no matter where you live, whether you're in Alaska or Florida or Vermont or down in California, 50 states, we help you with your estate planning. So we love to build your revocable living trust. Question was here, what should I bring to that meeting? I would just love you to come to the meeting, present with a pad of paper ready to go. I actually a senior partner with Matt Sorenson, my partner, we have made the policy that we don't want you to fill out a big questionnaire before the appointment. Now some of you may go. What, you don't want us to fill out a bunch of paperwork? I want my lawyer, a real lawyer, on the phone call with you on the zoom call to ask you about your life. What are you doing? What assets do you have? Married, single, kids, business day job, debt retirement accounts, life Insurance, what do you have? We want to get to know you. So my attorneys are going to ask those questions, draw it out of you, and then we're going to build an estate plan based on your situation. Our fees are going to range from maybe two grand to four, maybe five grand at the most. And we're going to build that estate plan. We're going to have multiple phone calls with you. We're going to help you get it funded, and your estate plan is going to be the base of that trifecta. So please come. 50% of Americans don't even have a will or a trust. We want to build that with you. It'll last, gosh, 20, 30 years. My first estate plan lasts 20 years. I'm in the middle now of drafting a new estate plan. I'm excited. I, gosh, I'm transparent. I love hopefully maybe being related in here with you. I just got married three months ago. I'm so excited. My wife Patty and I are building a new trust together. And that's very common. Any of you out there that are in a second marriage, you're going to build a new trust, an estate plan together. And Patty and I are planning on that trust lasting the rest of our life. We might amend it here and there. Now, if you're single, build a new trust for yourself. And then if you get married, you can either merge the two trusts together or build a new trust. But you, you really don't have to do this all the time by any means. You should reevaluate your trust every five to 10 years and just update it. Very common. So don't get sucked into some freaking law firm trying to sell you a new estate plan for 5 or 10 or $15,000. You do not need that. And you set it up in the state where you live right now. So just come to the conversation. Ready to go. My lawyers, you'll love them. We've got 11 different lawyers that will get on a zoom call with you and help you out. Kkos lawyers dot com. I'm sure it's down there in the description, Jack. Next question.

Okay, Mike and Ike, I hope you're still here because this is a big one. My brother and I are partnering together in an LLC that files as an S corp with no employees. We are forming an architecture firm. What type of retirement account has the best business write offs?

All right, ask Mike and Ike if they're still here. Mike, Ike. I am. This is such a good question and I'm going to start with this. Stop. No. Whatever your the structure you have is not good. I'm sorry. Their question was what retirement account should we set up with no employees? That's the easy question. The hard question is how in the hell did you end up with an S corp with partners? Not a good fit. I do not like this, everybody, and this is a chapter in my book. Mike and Ike, what I want you to do, here's your trifecta. I want you to set up an LLC and each of you have your own S Corp. That's the way to do it. I have one S Corp in my life. My law firm is an llc. But I'm here. My partner is over here. So Mike, I want you here. Ike, I want you over here. You're each going to have your own S Corp. Now, I can take extra tax write offs for things you might be doing and other write offs for the partnership. If you're in this structure already, please consider restructuring. It does not have to be expensive. But you do not. And I repeat, and I stand behind this. I've got articles and videos on it. I do not want this to be an S Corp. No, no, no, no. I want this to be an LLC. 1065, that each of you have your own 1120s. This will save you taxes in the thousands. When you share an S Corp, it limits my planning opportunities. It is not good.

Okay, Mark, we've got some great news from the chat. Mike and Ike is still here and he has not made the S election yet.

Woo. Oh my gosh. This is the best news yet. Okay, so leave that LLC alone. This is such good news. Mike or Ike, I'm not sure if both of you here, Okay, I want you to leave this as an llc. This is a really good deal. So leave this as an llc. And guys, what this is like is this is the law firm, this is the dental practice, this is the brokerage, this is the medical practice or whatever. And then the yes corps. That's the realtor, that's the doc, that's the dentist, that's. And as influencers out there, I want you guys to be your own S Corp and then partner up on deals. That's how it works. This is so good. Now to answer your real question, if you really have no other employees, which I love, this is good. You're going to do a solo 401k. Solo 401k. And what happens is you can each have your own S Corp, but participate in one solo 401k, because the solo 401k would be adopted by the LLC in each s corp can participate. This is really powerful. Now, another option is you could each do your own solo, and that's not a bad idea either. I would meet with one of my lawyers and figure out the best way to do it based on what your goals are. But the point is, you are not going to do a safe harbor 401k. You do not have to do that because you're both stakeholders, you're both equity owners. So we're going to do either two solos or you're going to do one solo, and then you can go off and form LLCs, buy real estate, do crypto, whatever the hell you want. I love it. And then each of you are going to have your own Roth ira. You're each going to be able to have your own health savings account. There's so much you can do. So make sure you get a plan with one of the lawyers and they get on our tax network. Each of you will have your own trust. So Ike will have his own revocable living trust. Mike will have his own revocable living trust. They'll each will have their own solo, or they can share in a solo. So lots of options. You guys are good. Just, I'm so glad you did not make that S election at the LLC level. Make the S elections on your individual S corps. And this is a chapter in my book, the Tax and legal playbook. Almost 1,000 five star ratings. It's on Amazon. Get over there, guys. And all of you listening. Thank you so much for watching. I'm not done yet. I'm going to take more questions, but please, if you're not a subscriber, if you have not hit the bell icon, please do so. Give me a five star rating. Whatever, follow. There is no one in America and I. I'm trying to be the goat. In fact, I am the freaking goat. There is no one out there with my credentials as a CPA and lawyer with more podcasts, more YouTube videos, or more books on Amazon. No one. Guys, if you're going to get the straight answer, you are going to get it here with me, Mark Kohler. And every week I go live on YouTube and TikTok and Instagram and whatever the hell, wherever you're watching, that's where I'm live. Please follow, subscribe, and I'm going to give you a straight answer and help you with your American dream. All right, let's do a couple more questions and see where we go, Jack.

Awesome. Okay, Ida, jumping back to real estate questions, asks, I've owned a single Family home rental since 2019. Can I still cost segregated?

Yeah. So you have a single family home rental. So we're going to call it a long term rental in an llc. Assume that you have that in a trust. All right, rlt and she wants to cost seg. The question isn't can you. The question is should you? So let me answer it this way. I any of you out there with a rental property, short term rental, long term rental, the cost segregation study allows you to accelerate depreciation. It gives you a huge write off with depreciation. Now, the first thing I would tell all of you is if you're considering doing a cost segregation analysis, let's wait to see what happens with the new tax legislation. Congress is hoping to have this out in June. The Trump administration has been begging and pushing Congress to have it done by the summer because we want to have this out before the summer break when all the senators and congressmen go home. But if they don't give us 100 bonus depreciation retroactive or at least effective immediately in 2020, 2025, then why in the hell are we going to go out and do a cost seg? We're going to go do a cost seg because we have huge depreciation we could go capture. So let's wait and see what happens with that legislation. But does that mean we don't go out and buy a rental? No, if you can go buy a rental. And interest rates have not gone down dramatically yet with all this tariff stuff going on and everything Trump's trying to do. Interesting. It's a little pain before we get the long term gain. We want him to do tariffs, everybody. This is good. This is good for him to get all these countries playing fair with us. We are going to see interest rates come down, we are going to see inflation come down, but it's going to be a little ugly. And we're seeing that in the stock market. They're taking. Do you know how much money is being made in the stock market right now? It is sick people because the companies know that this is gonna, our stock market's gonna skyrocket when the tariffs all gel out. So what I'm getting at is if you see a deal in real estate I'm buying right now. Do you know I have two closings going on right now? I'm buying. It is a buyer's market in real estate right now, then we'll take our depreciation later in the year. So let's wait and see what happens with the tax Legislation. So to answer your question, should you do a cost seg? First of all, I've got to make sure you qualify as a real estate professional or you're doing the short term rental loophole, you're not going to be able to do the Dash 4 because that's for business. We talked about that at the beginning. So can you do a cost seg? Yes. Should you? I don't know. Let's wait to see what happens with the legislation and make sure you qualify to take all that depreciation. I would get a consult sometime this summer with one of my tax lawyers. Get your LLC done, get your trust done, do an analysis. It may only cost you a grand, maybe 1500 bucks, but we're going to save you 10 times that with a plan. So be patient. It's not can you do it? It's should you do it? And the answer is you can. We'll wait and see on the should. Next question.

Okay, this is a great question from Guy. I've never actually heard you answer this before. Oh, hi Mark. I've recently been added as a co trustee to a living trust that owns four family properties. Do I have to wait for the properties to be in my name to set all this stuff up?

You? Yeah, yeah. So it sounds like there's a trust where he is a co trustee and you said Jack with four properties or four other beneficiaries or. Four what?

Four properties.

Okay, so revocable living trust owns four properties and he has been set up as a co trustee. Now if you're still here, what's his first name? Did he give that or his hand?

Guy.

His name is Guy. Okay, this is Guy. He's a co trustee. I have a feeling, Guy, that whoever this revocable living trust is set up for, who is the grantor or the current beneficiary? Oh, sorry, I gotta spell this properly. Sorry. I have a feeling that the beneficiary is still alive. Once this person dies. Sorry, I'm being a little blunt here. Once they die, then this is going to turn into a irrevocable trust and it's going to distribute the four properties to the beneficiaries of who you are co trustee for. So Guy, you're going to wait. You're going to wait until this person dies and these four properties are distributed. And then you and your co beneficiaries of who you are the co trustee for are going to go out and set up some LLCs. You might set up four LLCs, you might set up one LLC. It's going to depend on what you as beneficiaries decide to do with these four properties. So there's a lot to happen yet. And while you're the co trustee, you're just waiting until this person passes away. Now, that's my assumption. If you're already the co trustee of a trust where someone's died, then it's no longer a revocable living trust. Did you hear that, Jack? When he said I'm a co trustee of a revocable living trust, that means it's still revocable, which means someone's still alive. So as soon as they die, then you're going to step up and decide what to do with these four properties. And that's when all the action is going to happen. So it's probably what's going on. Another question. Okay, grab something out of the fridge here.

Okay. Let's see here.

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Here we go. Robert asks, we are selling our house. That has never been Rented. We are now living in our new home. Well, we owe capital gains. And are there any additional write offs that we can take?

Okay, and who's her name? What's her name?

Robert.

Robert says they are just sold their home. They have bought a new home, right?

Correct.

And he wants to know what their tax bill may be. Ask him a question. We need an answer here. Did you own your home for at least two years? What did you buy it for? What did you sell it for? Okay, so I want to hear that in chat. Did you live in it at least two years, and what did you buy it for and what did you sell it for? Now it sounded like he said he was married, so I went with that.

Yeah, I said we.

So I'm going to go with married. And I want to know, did you live in it at least two years and are there any tax write offs? Blah, blah, blah. And you're now living in your new house. Okay, we're going to wait for his feedback. Do we have another question in the hopper that we can go to? Anything we could go to until we get an answer there? Yep.

Give me a moment here.

Okay.

Okay, this one. This one's a great one. Associated with your most recent video, Luke asks, is it possible to put yourself as the registered agent for your LLC and just use your business address instead of personal?

Okay, so. And what was his name?

Luke.

Luke. Gosh, I got to write this down. As soon as they say it and it is not my memory, I. I always forget to ask, what is the name here? I've been accused of loss of memory because I'm over 50 now, for crying out loud. This is why I drink Rockstar because it gives me great reflexes, great memory recall. Okay, Luke. Luke said, should I be the registered agent of my own llc? Now, this could be the LLC that he has as a rental. This could be the LLC of his side hustle. Right, everybody? Because you're either going to have an LLC for ops or you're going to have an LLC for assets. And Luke's over here, and he says, can I be my own registered agent? Ra. All right, now the question is, can he? Yes. But should he? No, no, no, no, Luke. Because when you are your own registered agent, you have to disclose your street address. You can't use a P.O. box. Now, if you have a business address where you can do that, I might be interested. But your name's still going to be out there. What I would prefer, Luke, is you call my freaking office Main Street Business Services dot com. Main Street Business Services dot com. Can we put that down in the Chat? Main Street Services.com and Mainstreetbusiness.com, whatever. We got all the URLs there. We will be your registered agent so that you have. Here's the big word, privacy. I want you to have privacy. I do not want your name and your address out there. I'd rather do that for you. We will take the hit. Now, buckle up. This is really. It is super expensive. I know this is going to blow your mind. It's 125 bucks. I know, I know. It's highway robbery. 125 bucks. Luke, let us be. Let us put the target on our back. We will put our name and address on your company. Anybody out there call our company? 125 bucks. They've got to go through my freaking law firm to get to you. For 125 bucks, we will be your registered agent. Mark Kohler, our company, will be your registered agent for 125 bucks. Your address will not be out there now. Can you still be the manager? Yes, in some states. I can hide you as a manager, too. Do a consult with one of our lawyers. We will do a privacy consult with you. Now, I can't put you in the witness protection program. That's a little expensive. But we can hide your name and we can definitely hide your address by letting us be a registered agent. So, Luke, you can do it. You can knock yourself out. But so many of my clients, we don't want you to be. Let's get your private personal address out of there. Let us be your registered agent. So, Luke, don't do it. And I think we got the links down there. We can help you out. Okay? Did we hear from our family?

Mark, I know you love giving good news, so here's the news from Robert. Robert, he is married. They lived there for five years. He purchased for 190. Sold for 398.

Oh, my gosh. Robert, I have got such good news. Okay, everybody, let's break this down. Robert has a primary residence that he lived in with his wife. So it's husband and wife. Okay? They purchased it for 190 grand. And I have a feeling Robert did a little work on it. You know, I'm going to say Robert, he probably put in, let's say 20 grand. He put in 20 grand in improvements over the last five years, okay? Improvements. So over five years, they did improvements. And so his basis. And any of you out there can do the math. You want to look at your purchase Price. And then add to it any improvements, and he put in 220 grand in improvements. So now his basis is 210 grand. And then he sold it. He and his wife sold it for 390 grand. What? Congratulations. That is awesome. So they sold. That's split sales price. Okay, this is. This is so good. So we got to do our math here. 390 over 210. So that's 190,000. No $180,000 gain. Is that right, Jack? That's gain.

That's correct.

The gain is 180 grand. So his question is, I've got to now pay tax on 180 grand because we have a new home. We went and bought a new home. So, Mark, damn it. I don't want to pay tax on 180 grand. Robert, here's the good news. No tax. There is no tax on that 180 grand. Everybody out there. If you live in your primary residence for at least two years. Years. You do not pay tax if you're married on the first 500 grand. If you're single, you don't pay tax on the first 250 grand. It's called the sale of home exemption. It's IRS code section 121. Go Google the hell out of it. Go on Grok. Go on Chat GPT. Robert, you are golden. You do not even care that you put improvements in here of 20 grand. I don't even care. There are no write offs. You need. You don't even have to put this on your freaking tax return. If you did, it would be on schedule D as a David. But because you bought it for 190, sold it for 390, you do not. That's 200 grand. But you have. You put in 20 grand of improvements. Whatever. So your real gain is 180. That's your attributed gain that you have over basis. But it's exempt up to $500,000. So, Robert, you can go to sleep at night. You don't have to go see a cpa. You don't go. Have to. Don't have to go see an attorney. I got you. No tax. All right, well, everybody, I am loving today. One last question and we'll call it a day. What do we got?

Okay, this is the last question of the day. Is, wow, these strategies have been incredible. How do I learn more about real estate tax strategies?

You're so full of crap, but I love that you asked that question. How do you learn more? You've got several options. First, you can come to my360 event tax and legal360. You can attend virtually or come to the happiest place on earth. Some might say that's Disneyland one mile from our event or some might say it's the happiest event on earth. The tax and legal360June 6th through the 8th, 3 days, 24 hour 24 credits for you CPAs, lawyers and enrolled agents. I think what our general admission tickets like five or six hundred bucks and you can come have a premium event, have lunch, networking. We're having disco party night where you can hang out with the CPAs, attorneys, business owners, little white man overbite. This is going to be super fun network. Find your cool tax and legal professional tax strategies. Legal strategies. If you don't save 10 times your ticket price, come talk to me. I'll work with you because I know you're going to freaking rock. It's going to be awesome. So tax and legal360 you can also go to my YouTube website, my YouTube channel. Our website markjkohler.com if you are a tax or legal professional, if you are an enrolled agent, if you're a CPA and you want to become a real tax advisor. I have a certification program where you can now get clients from my network for free to be a part of our community, get certified, be a part of our trainings every week. Check it out, do a free demo, a free discovery call@markj kohler.com We've got our virtual real estate tax summit coming up in a few weeks. I'm going to be in Austin tomorrow. I'm flying out to Austin for our self directed IRA summit in Austin. Get over to self directed irasummit.com we have our tax pro talks. All of that. There's so much. You can buy my books on Amazon. Holy crap people. I am here for you. Main Street America to save taxes, build wealth. So get to markj.kohler.com and if you come to our event and Rockstar decides to sponsor, they will bring you a recovery rock star. I think I should buy everybody a recovery rock star if you come to the event. Anyway, thanks everybody. I'll be here next week I think for another live tax and legal broadcast on your favorite social platform. My name is Mark Kohler and keep living the American dream.