Join us as Tim Berry takes Tax Hacker Tuesday to the next level. Learn everything you need to know about the new tax deadline even Trump himself didn’t tell you about. Then listen closely to find out where you can access the five loopholes in Trump’s tax plan AND get a free coaching call with Tim Berry.
Get a better grip on the ideal tax strategy for your business with Tax Hacker Tuesday!
What You Will Learn About The New Tax Deadline Even Trump Himself Didn’t Tell You About:
Tax preparation and asset protection know-how with Tim Berry
Five loopholes in Trump’s tax plan and how to access them
Something that no one is talking about with the new tax plan
An important deadline in March that you shouldn’t miss
What the media isn’t telling you about the March deadline
What may be at risk if you miss the new tax deadline
Broad categories to consider when structuring your business
The best corporate tax status for each type of real estate business
Why you should consult your tax professional for advice on your business
How to access a FREE COACHING CALL with Tim Berry
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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: Hi, welcome. It’s another episode of Tax Hacker Tuesday. Right here at the end of January 2018 year, as well, underway. We just got back from Epic Intensive and, oh, hello, Tim.
Tim Berry: Hey, Matt. How are you doing, sir?
Matt: Good. I just turned on record and started going and like, wait a minute, there’s somebody else here with me.
Super. So it was great seeing you at the Intensive and I don’t know how you do it, dude. I don’t know how you take three to four hours of tax planning asset protection conversation and keep the room so captivated.
Tim: I’m not sure if I do keep them captivated. I think it’s just you brought all that coffee around to everybody right beforehand.
Matt: No. I mean, I would love to think it was my doing with the coffee idea, but after the fact, I wanted to ask people my routine question, “What’d you like best? What was your favorite part?” So many people said, Tim Berry was their favorite. They had to go to the bathroom and they didn’t want to get up and leave. Now you know.
Tim: Matt, that was my mother.
Matt: Oh, that was your mother. “That’s my boy on stage.”
Tim: “He’s so sweet, isn’t he?”
Matt: “Yeah, go Tim, go.” Right. Cool. So, last time we were here we gave away the free book that you wrote. Small, short, little book, “The 5 Tax Loopholes to Trump’s New Tax Plan That the Media Isn’t Telling You About.” There’s something else that nobody’s talking about and particular the media or really anybody else. I didn’t realize this myself when you and I were chatting over the weekend. I said, “You know what? We need to get on it and share this information.” That’s about an important deadline that’s coming up in March that if you miss this it could cost you, right?
Tim: Oh, yeah. Big time. I mean, here’s the thing. Under the new Trump tax code, things have gotten really confusing. A lot of people were saying, “Oh, gosh. You want to be a partnership now, so you get this 20% reduction.” Then other people were saying, “Oh, no, no, no. You should be an S corporation so you get the 20% reduction and you get some other savings.” Then there’s another group of people who are saying, “Oh, no, no, no, no. You should be a C corporation because the 21% tax bracket.”
What no one is saying, and especially the media – what they’re not telling us is there’s a deadline coming up. You’ve got by March 15th of this year to decide what is the best for you. Is it that partnership taxation? Is it sole proprietorship? Is it S corporation or is C Corporation? There’s a deadline that’s going affect a lot of people. It’s going to cost them a lot of money if they don’t make that right decision.
Matt: Right. Can you give me some ideas, I mean, as to what is really at risk by choosing the wrong thing? If you choose the wrong thing, do you got to ride it out for the year? Can you backtrack at all? It’s just in stone for 2018, indefinitely or is that something you can change every year? How does that work?
Tim: The answer to that question’s kind of like the answers to most tax stuff is, gosh, it just kind of depends. An example. If you don’t make the election to be taxed as a corporation, you got to ride that out for the rest of the year. But if you make the election to be taxed as an S corporation, there’s all sorts of neat ways that you can blow up the S corp election and just be taxed as a C corporation.
For the most part, you’re kind of stuck with it. Because even if you blow up the S election, that may not be the right thing to do, too. Let’s just try to keep it simple, Matt, and say if you don’t make the right election, you’re stuck with it and you got to ride it out for the rest of the year and you got to overpay your taxes.
Matt: That. That’s good enough for me. I imagine my next question, and I like to keep everything simple, but in the world of real estate, in the world of taxes and legal stuff, there’s rarely a one-size-fits-all simple answer to anything. But I’m going to give it a shot anyway just for the sake of the audience.
What category should people be in to choose which entity, or is that just a big fat, “it depends,” too?
Tim: It depends, but if you’re going to do broad categories, broad categories would be if you’re doing buy and holds, you probably want to be inside of a partnership/LLC type of structure. If you’re doing a lot of lending, surprisingly enough, you probably want to be inside the partnership LLC category, but there’s some twists you want to do, which we should probably talk about next show because it get complicated.
If you’re doing flipping real estate, you probably want an S corporation unless your income is over, let’s say, $77,000 and you’re married. Then you probably want to go to a C corporation. Those would be roughly the broad categories.
If you’re doing investments of whatever you’re doing and your household income’s over $150,000, you probably want to have that C corporation. That’s some broad categories. Like you said earlier, it just really depends upon everybody’s situation to get all the nuances.
Matt: Right. I actually don’t know this, I’m just speaking of the people that I do know, and the number of people that I have talked to through this show, a lot of people do a combination of all of those things.
Tim: Oh, yeah. Some people do do that, yeah.
Matt: I imagine that would come into play with what their decision is as well.
Tim: Yeah. Very much so.
Matt: Something you just said about an LLC. A big portion of what you talked about at the Epic Intensive. Gosh, you had an hour conversation on why an LLC is going to kill you. Right?
Tim: Well, for asset protection, yeah. Everybody thinks that, oh, LLC is … All they have to do is set up an LLC and it cures cancer, the common cold and all that other stuff. What most people don’t tell you is that LLCs don’t really have all that much asset protection. They can be taken away in case of a bankruptcy, a lawsuit and all that other stuff.
LLCs aren’t the end all that everybody thinks they are. You really got to look at the situation and figure out what’s best for you.
Matt: Perfect. Perfect. Okay. Yeah. What’s best for you was you gave probably, I don’t know, countless examples of if this then that, if this then that, so there’s a lot to take into account. So it’s an individual basis.
I would look at a stop to this conversation right at the beginning when you said it depends.
Tim: Could have saved everybody a lot of time, huh?
Matt: Yes. So one thing that you did at the Epic Intensive is you gave everybody the eBook like we did everybody here on the show, but you also gave them the opportunity to have this free coaching call, consulting call, strategy session, planning session with you, which was very gracious. It was kind of one of the terms of our agreement if you were going to come on the show you had to be a giving guy. You had to be in alignment with the mood here. You certainly exhibited that and I wasn’t expecting all that though. With all the people that were at the Intensive, they were very grateful. I was like, “Can we say that to the podcast audience, too?” You said, “Yes.” Right?
Tim: More than happy to. More than happy to. Because, Matt, you got to realize, whenever you’re as boring as I am, nobody wants to talk to you, so if I actually have people that want to talk to me on the phone, my goodness gracious. That’s just amazing.
Matt: Yeah. That’s your reward, right?
Matt: Then your mom sits across there. “Look at Tim go. He’s grown up to be such a professional.”
Tim: She answers the phone, she goes, “Would you like to talk to a sweet young boy?”
Matt: Right. That’s funny. We’ll always be boys in the eyes of our parent, won’t we?
Tim: Oh, yeah. Very much so. Very much so.
Matt: Totally cool. If you like to take Tim up on this and he can’t do this forever. He is only one man. This is a timely conversation. This deadline is approaching. You need to declare how this is going to work of you and what your business structure should be before March 15th you said, right?
Matt: Perfect. Go to TaxHacker.com. You won’t see a place to schedule this call, but just opt-in for the eBook. You’ll get the 5 Loopholes of Trump’s Tax Plan That the Media’s Not Telling You About and that Tim told you about. We’ll continue to tell you about and reveal that on the show.
Just go through that process and once you’re on the download page, I think it is for the eBook, there will be a little link to Tim’s schedule. You can book yourself in right there and make it a convenient time for you and boom, you’re done. You’ve got on the calendar. You’ve got one thing scratched off your to-do list and you’re prepared to tackle 2018 without overpaying taxes. That cover it?
Tim: You covered it. You covered it fantastically.
Matt: All right, Tim. Well, enjoy the rest of your day. It’s Sunday right now. We’re doing this because it’s that important. We just kind of broke away from our family and what we were doing on the weekend right after the Intensive because we don’t want anyone to be misled – or left out, is the word I’m really looking for.
Tim: And/or overpay their taxes.
Matt: And overpay their taxes. Yeah, who was it in the audience that kept on talking about the retirement plan? Oh, you never have to pay taxes again. Right?
Tim: Yep, yep, yep. That was the great catchphrase he kept on using.
Matt: Exactly. Anita, if you’re listening, hello, and it was great seeing you.
Anyway, Tim. It was great seeing you. I’ll let you go. I’m going back to my Sunday and we’ll talk next week or another episode of Tax Hacker Tuesday.
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.