Who Can and Can’t Be Helped with the New Tax Plan | 351

Who Can and Can’t Be Helped with the New Tax Plan | 351

Tax Hacker Tuesday is back to show you who can and can’t be helped with the new tax plan!

Depending on whether you’re young or old, a W-2 employee or a real estate investor, or have a cash flow portfolio or a side hustle, the tax plan will serve you differently – and for some, it can do amazing things.

Tim Berry shares the qualifications and strategies that could save you thousands in tax dollars. Find out if you’re one of the lucky ones who can benefit from the new tax plan with Epic Real Estate and Tim Berry on Tax Hacker Tuesday!

new tax plan

What You Will Learn About Who Can and Can’t Be Helped With the New Tax Plan:

  • What the new tax plan can do for W-2 workers (with and without a side hustle)
  • How the new tax plan can serve investors on income beyond personal living expenses
  • How Tim Berry helped one investor make $1 million tax-free
  • Your options for withdrawal and investments with tax-free money in retirement accounts
  • How 20- and 30-year-olds can make the most of their time waiting to access retirement account money
  • One strategy you can use to minimize the type of taxes you pay right now while escaping the rat race

Recommended Resources:

  • It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.


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Speaker 1: This is Theriault Media.

Did you know that up to 50% of your lifetime income will be wiped out by taxes? What if you could stop this madness? Isn’t it about time you play on a level playing field with the wealthiest 1%?

Now, you can. Tim Berry, attorney-at-law, shares here each and every week current tactics and strategies that anyone can implement to hack the tax code. Protect your assets and keep what’s rightfully yours. It’s time for Tax Hacker Tuesday.

Matt Theriault: Welcome to The Epic Real Estate Investing Show. It is Tax Hacker Tuesday with my attorney and friend, Mr. Tim Berry. Tim, welcome back to the show.

Tim Berry: Thank you so much, Matt. Thank you so much.

Matt: You bet. On Mondays here at Epic, we show you new and creative ways, as well as time-honored ways, of making money using real estate as your investment vehicle, as your money vehicle. Here on Tuesdays, we show you how to keep it – or Tim shows you how to keep it. He’s much better at that than I am, and that’s why I listen to his advice, and that’s why I’m sharing him with you.

Tim, I’ve had to run a couple of back episodes from your archives for the last couple weeks. You’ve been really busy lately. What have you been up to?

Tim: What am I up to? Talking to your listeners. Whenever you offered the free consultations, man, I didn’t think people were really going to actually going to take us up on that. You’ve got a lot of listeners out there.

Matt: Yeah, we extended that invitation for a free session with you, and we were caught a little bit by surprise and we filled up your calendar for days with these appointments, so much so that we had to call in for some help to sort those appointments out.

If you called in to talk specifically to Tim and you ended up talking to one of his lackeys, one of his team members before Tim, our apologies. It was just the only way and the best way we could figure out how we could get the people the right help. Tim, he’s only one man – a very generous man, but still he’s limited by the same 24 hours in a day we’re all limited by.

Tim, let’s kind of go through… Do we have… I don’t know. I don’t want to categorize people but, maybe it’s just a category of people. I know we have different people in different situations that listen – everybody’s situation is a little unique but we have some general idea of who you’ve been talking to and how you’ve been able to help. And who you haven’t been able to help, maybe?

Tim: Yeah, in general. Let’s do the bad stuff first. The ones who I can’t really help.

Matt: Okay.

Tim: Ones I really can’t help, for the most part, are W-2 employees. If you’re a W-2 employee, you’re just kind of stuck. There’s a couple things we can do and if it’s – you’re a higher net worth W-2 employee, there might be some – gee whiz – stuff we can do. But if you’re making under $150k or so, a year as a W-2 employee, not much we can really do. I’d love to say we can waive a magic wand and cut your taxes… probably can’t.

Max your 401k contribution. That’s a neat thing to do, but you know that’s just regular information everybody knows.

So a W-2 employee making less than $150k is going to be tough to help. I’d love to say we could but, not going to happen.

Matt: When you say W-2 employee, you’re talking about someone whose income comes exclusively from a W-2 job.

Tim: Yeah, great clarification. If all your income is from working for the man, we’re not going to be able to do much if you’re making less than $150k.

Matt: Got it. Okay.

Tim: Next person – and these are the ones that are kind of fun to work with. They got the W-2 income, they’re working for the man, but also, at the same time, they have self-employment income from doing flips on the real estate. Those people – we can start to work some wonders. Those are great candidates for tax planning.

We can start saying, “Okay, here’s your situation. Here’s what you’re doing now, here’s what you need to do in the future and this is how we’re going to save you tons of money.”

Matt: So it’s a W-2 employee one category that’s got a side hustle going on, and likely, if they’re listening to this show, it’s probably real estate as their side hustle.

Tim: Yeah, exactly. And I love that phrase: side hustle.

Matt: Okay, and then we have I guess a third category, who are full-time real estate investors. Where do they fit in?

Tim: Full-time real estate investors we can work magic with. The age-old phrase is, you’re going to have to pay taxes on what you need for your personal living expenses for the mortgage, the car, the kid’s tuition… and actually, the kid’s tuition, we might be able to make that disappear… but anything over and above that, you’re reinvesting and you’re earning over what you need for your personal living? We can probably make that tax deferred – some cases, even tax-free. Those are people that we can really work some magic with.

Matt: Got it. Someone actually asked me – I think they saw through our scheme here… “Why is Tim doing this all for free?”

Tim: If they could see the video right now, you’d see a little halo up top – a nice little golden hue to it.

Matt: That’s how I view you, Tim. We have to realize that there are skeptics and cynics out there. Let’s just be straight. This is how Tim finds new clients, by offering value up front to demonstrate how he can help, and then he’s going to put the ball in your court to where you get to decide which direction you want to take.

Sometimes it’s a good fit, sometimes it’s not, but either way, Tim is committed to seeing that you’re better off after the call than you were before.

Let’s just be totally fair and up front.

We just wanted to describe who Tim can help and who he can’t.

I don’t know… tell me a fun story of someone that you helped and did wonders for this week. Kind of give someone an idea of what that might have looked like.

Tim: Gosh, my mind’s caught on un-fun stories right now. I’ve got clients right now who have been in bad situations, and now we’re being able to protect them going forward, so I’m just trying to think of a fun story.

One un-fun story that’s going to turn very happy is, an individual… and this is a story I see so many times… real estate developer…

Well, here’s a fun story. Let me switch gears real fast to a super fun story. Real estate developer, doesn’t need income, doing some deals, and what we’re going to be able to do, we’re probably going to be able to put his next development inside of a Roth 401k and he’s expecting to make a million bucks on this whole thing.

Now if, in fact, it pays off to be a million bucks, he’s going to have a million bucks completely, totally tax-free. It’s not just so much completely, totally tax-free, but it’s completely and totally shielded from creditors too.

That’s a super neat – gee whiz – knock it out of the ballpark situation.

Another situation I was going to tell you about – this, I really want to put out there because it happens way too many times. Individual, he’s in his late 60s/70s. He knocked it out of the ballpark earlier in life, built up millions, and then in the 2006-2007-2008 fiasco has lost it, has been on the run ever since, and we’re going to be able to clean up his past transgressions and just wipe all that stuff out and move forward for the guy.

I mention this because there’s so many people. They say, “Oh, I don’t want to talk about asset protection. I don’t want to worry about this, this, this.” If this guy just would have done some basic steps back in 2003-2004, he’d still have millions to his name. He didn’t, and now he’s underwater, but we’re at least going to be able to wipe up that stuff and allow him to move forward.

Matt: Sweet. Something that just came to mind, when you talk about… there’s a lot of conversation going on… it seems to be an integral tool that you use as far as tax strategy and tax planning for people, is some form of retirement account. I think, I don’t know… I guess when I hear the word “retirement account” I think of, “Okay, I’m going to do it and they’re fine and dandy, but I gotta wait until I get my profits out, get my money out.”

To me, that doesn’t sound all that exciting. Is that really what it is? How could – this real estate developer, for example – he makes a million bucks. Does he have to wait until he actually gets to enjoy that million bucks, or are there other things he can do with it? What are his options there? Once it’s inside of they retirement account?

Tim: Once it’s inside the retirement account – first off, yes. He’s going to have to wait to enjoy his million bucks. He’s going to have to wait until he’s over 59 1/2. This guy is 50-something so it’s no big deal for him.

Let’s say that you pile a lot of money inside the retirement plan, and you’re using that for investments anyway. You can still invest that money inside the retirement plan. You’re not stuck with stocks, bonds, mutual funds. You can buy real estate, you can do hard money loans, you can do lease options, you can do tax lien certificates. The whole world is still available on your investments.

Let’s go to a double bonus round. Double bonus round is, let’s say that you’re, gosh, 23-24 years old, or 34-35 years old. You’ve got to wait the 20 years to gain access to that money. You don’t want to wait until 59 1/2. No big deal. Do the deals in your parents name. Do the deals in your uncle’s retirement plan name, whoever.

Now, as long as we do the proper steps and now that deals are being done in your parents’ retirement plan, they’re going to get to 59 1/2 before you are. They’re going to be able to gain access to that money if they’re not already there right now, so this is a great way to be able to put the transactions in their retirement plan.

Let me throw out a little self-serving statement for you, Matt. This is the stuff that you guys teach, how to do this neat real estate stuff, and now, by learning and listening to this, you don’t need gobs of money to do this. You can use other people’s money. So now, if you can do no money or low money down transactions using other people’s money inside the retirement plan, you can build these things up relatively fast. Now, once again, even if you’re at a young age, no big deal, do the deals in mom and dad’s retirement plan and gain access to the money that much faster.

Matt: Got it. Okay, I like that, I like that. That’s an option.

When you said, this is what I teach, this is what we do here – I like retirement plans, I like getting your money into a tax-free or tax-deferred environment and allowing it to grow there. I’ve always been an advocate of that being not your primary strategy, meaning, let’s get your income to a place where you can enjoy life now while you’re still 34-35 years old, just to go with your example, and then taking the excess and putting it into your retirement account.

Are there some tax strategies that someone could do outside of a retirement account?

Tim: Oh gosh, that’s an open question. There’s just so many tax strategies.

Matt: Okay, so let’s just kind of… if you were going to go with that and that was the goal… let’s get our passive income up to a point where we can get all of our basic life necessities met for now so we don’t have to work. And that’s the ultimate goal of cash flow, escaping the rat race. What’s one strategy where we can minimize the type of taxes we do end up paying right now?

Tim: You said some words: cash flow and income. This might be a little bit too out there for this podcast but, there’s a neat way how you can rip off the cash flow of rental properties.

The rental income, you can just strip that right off and you can sell that to others, so to speak, or to put it a different way, people could just buy those cash flow, those rental cash flows.

That’s exciting because literally, you could construct an income portfolio, a cash flow portfolio giving you 10-15%, and you would never have to pay a dime in taxes on that if you did that correctly.

The cool thing is, now, if you just buy those cash flows, you’re not paying for the principal for the house. All you’re doing is buying is the projected income, and it’s just a neat little tax strategy to do that because once again, you can get gobs of income, probably twice as much as you would buying rental properties, just buying these cash flows, and the money is going to be effectively tax free.

If somebody is looking for a cash flow for income, that’s a really neat way we can make rental income tax free for them. That’s a simple one.

You might be saying, “Well gosh, anybody can make rental income tax free.” We can probably get higher rates of return doing certain things. I’m not trying to play hide the ball by saying, “Doing certain things.” It just gets really complicated really fast.

There’s just all sorts of ways to construct cash flows and get that money out tax free.

Matt: All right, I threw you a curve ball and you knocked it out of the park.

Tim: Thanks Matt.

Matt: That’s awesome.

Tim has a book that he’s written. It’s totally free. No catch. If you’d like a copy, you can go to taxhacker.com. You can grab it. It’s How to Take Advantage of Five Loopholes and Trump’s New Tax Plan The Mainstream Media Isn’t Sharing With You and Could Cost You a Small (or Large) Fortune.

We here at Epic Real Estate and Tax Hacker Tuesday were on top of the Trump Plan before anyone was talking about it. Now you’re hearing about it everywhere. We’re deep into it. We started talking about it on day one, January 1st, and so Tim put that book together and gave you some ideas there.

After you’ve done that, you’ll have the opportunity to schedule some time with Tim. We haven’t taken that away. We just kind of changed the procedure a little bit to make sure that you actually get the best help that you can get. Either he or one of his team members will get on the phone with you for a short five to ten minute call to assess your situation. If there’s a good fit, they’ll go ahead and guide you through the next step and schedule a tax action plan with Tim personally. If there’s not a good fit, what they’ll do is they’ll share some alternative resources to where a better fit for you can be made.

Either way, Tim and his team are committed that you are better off after that call than you were before. That’s just Tim. Tim and his halo. That’s what he does.

All right, Tim. Thanks again, bud. Have a good week and I’ll see you next Tuesday for another episode of Tax Hacker Tuesday.

Tim: Thank you Matt, take care.

Matt: You bet. Take care.

Speaker 1: That’s it for today, as we dream of a tax system that works just for you. But until then, you have Tim Berry. See you next Tuesday for another episode of Tax Hacker Tuesday.

Matt Theriault

Real estate investor and educator.