Podcasts about internal revenue

  • 39PODCASTS
  • 49EPISODES
  • 35mAVG DURATION
  • 1MONTHLY NEW EPISODE
  • Sep 19, 2022LATEST

POPULARITY

20152016201720182019202020212022


Best podcasts about internal revenue

Latest podcast episodes about internal revenue

The Retirement Wisdom Podcast
The Keys to a Happy Retirement – Carol Colburn

The Retirement Wisdom Podcast

Play Episode Listen Later Sep 19, 2022 28:35


Comments, Suggestions on Topics or Questions You'd Like Me to Address on the Podcast? Leave a Voice Message Here ______________________ Who doesn't want to retire happy? There's no magic formula. You have to determine what the key ingredients are for you. But there are clues that can help you discern what will lead to happiness and satisfaction in your retirement life. And one thing often leads to another. For Carol Colburn, a big one has been travel, and that's led to new pursuits in writing and photography. She shares her insights on a longer list of the keys to a happy retirement. Listen in. It just might unlock your ability to retire happy in your own way. Carol joins us from Arizona. _______________________ Bio  Carolina Esguerra Colborn had a distinguished career in Philippine business before migrating to the US in 2004. She was former President/CEO of BayanTrade, e-procurement hub of the Philippines; Managing Director of SAP Philippines; Deputy Commissioner of the Bureau of Internal Revenue; General Manager of MegaLink, the ATM transaction switch of banks, and Vice-President of the Development Academy of the Philippines, the government consulting arm. She also worked for Andersen Consulting, IBM and NCR. Twice a recipient of the Most Powerful Women in IT Award, she represented the private sector in the National Information Technology Council. Carolina settled in Seattle, Washington where her eldest daughter lived. While babysitting a grandson, she also taught as adjunct professor in business at Seattle Central Community College, Central Washington University, and Renton Technical College. She even volunteered at SCORE, the Service Corps of Retired Executives, as a small business counselor and lecturer on marketing. In 2007, she met Bill Colborn and married him a year later. Soon he sold his business, and they embarked on a five-year cruise of North America in an RV. She not only soaked up great American sights in forty-nine American states, nine Canadian provinces, and six Mexican states, but also became deeply immersed in American culture and history. Within the cozy confines of a 350-sq. ft. motorhome, life lessons came as fast as scenes changed. In 2015 this epic journey was chronicled in her travel book Carolina: Cruising to an American Dream. This year she released a handy booklet, Cruising in an RV. the basics you need to know, for those looking to start RVing. This will soon be followed by her second travel book, Cruising Past Seventy. It's Not Only about Outer Journeys. It's Also about Inner Ones. She continues to maintain a travel blog, Cruising Past 70, several posts of which also have been republished elsewhere. She also writes bimonthly for travelawaits.com, an online travel magazine. Bill and Carolina now use Phoenix, Arizona as a base for their travels within and outside the US. From there, she has traveled to thirty-eight countries. She holds a BS in Mathematics, MBA, and DPA abd from the University of the Philippines. _________________________ For More on Carol Colburn Cruising Past Seventy: It's Not Only about Outer Journeys. It's Also about Inner Ones Expert Contributor Articles on TravelAwaits.com Blog  Website _________________________ Podcast Episodes You May Like Retire Happy – Dr. Catherine Sanderson The Power of Fun – Catherine Price With the Freedom to Retire, Where Will You Plant Your New Tree? – Don Ezra Cooking Up a Storm in Retirement – Chef Dennis Littley __________________________ How to Win Your Own Retirement Game  Thank you for making Win the Retirement Game a #1 Amazon Bestseller (in a few categories). Amazon    Barnes & Noble    Bookshop.org Here's what readers are saying: "A wonderful guide for the soon to be or recently retired..." "Definitely the best book I've read on the non-financial aspects of retirement." "The storytelling format makes it fun to read,

VPM Daily Newscast
08/22/22 - PolitiFact Virginia: Good "Mostly False" on IRS claim

VPM Daily Newscast

Play Episode Listen Later Aug 22, 2022 5:58


Democrats' newly enacted Inflation Reduction Act includes about $80 billion dollars for the Internal Revenue service. Some Republicans are criticizing the new money as a tool for the Biden administration to target small businesses and the middle class. PolitiFact Virginia Editor Warren Fiske spoke with VPM News Legal Reporter Whittney Evans about how one Virginia Congressman is adopting that theory.

The Chris Plante Show
8-11 Hour 1 - The IRS - Internal Revenue Shooters

The Chris Plante Show

Play Episode Listen Later Aug 11, 2022 37:52


In hour 1, Chris talks about the IRS looking for people who are willing to shoot and kill people, and also the hours are weird.  Also Obama called for a Civilian force as strong as the military, is that where we're headed? For more coverage on the issues that matter to you download the WMAL app, visit WMAL.com or tune in live on WMAL-FM 105.9 from 9:00am-12:00pm Monday-Friday.To join the conversation, check us out on twitter @WMAL and @ChrisPlanteShowSee omnystudio.com/listener for privacy information.

Law School
Taxation in the US: United States Tax Court

Law School

Play Episode Listen Later May 20, 2022 17:49


The United States Tax Court (in case citations, T.C.) is a federal trial court of record established by Congress under Article I of the U.S. Constitution, section 8 of which provides (in part) that the Congress has the power to "constitute Tribunals inferior to the supreme Court". The Tax Court specializes in adjudicating disputes over federal income tax, generally prior to the time at which formal tax assessments are made by the Internal Revenue Service. Though taxpayers may choose to litigate tax matters in a variety of legal settings, outside of bankruptcy, the Tax Court is the only forum in which taxpayers may do so without having first paid the disputed tax in full. Parties who contest the imposition of a tax may also bring an action in any United States District Court, or in the United States Court of Federal Claims; however these venues require that the tax be paid first, and that the party then file a lawsuit to recover the contested amount paid (the "full payment rule" of Flora v United States). The main emblem of the tax court represents a fasces. History. The first incarnation of the Tax Court was the "U.S. Board of Tax Appeals", established by Congress in the Revenue Act of 1924 (also known as the Mellon tax bill) in order to address the increasing complexity of tax-related litigation. Those serving on the Board were simply designated as "members." The members of the Board were empowered to select, on a biennial basis, one of their members as "chairman." In July 1924, Coolidge announced the appointment of the first twelve appointees, of which seven members were appointed from private life and the other five from the Bureau of Internal Revenue. Additional members were appointed in the fall, and the Board when fully constituted originally had 16 members, with Charles D. Hamel serving as the first Chairman. The Board was initially established as an "independent agency in the executive branch of the government." It was housed in the Internal Revenue Service Building in the Federal Triangle. The first session of the Board of Tax Appeals spanned July 16, 1924 to May 31, 1925. In 1929, the United States Supreme Court indicated that the Board of Tax Appeals was not a "court," but was instead "an executive or administrative board, upon the decision of which the parties are given an opportunity to base a petition for review to the courts after the administrative inquiry of the Board has been had and decided." In 1942, Congress passed the Revenue Act of 1942, renaming the Board as the "Tax Court of the United States". With this change, the Members became Judges and the Chairman became the Presiding Judge. By 1956, overcrowding and the desire to separate judicial and executive powers led to initial attempts to relocate the court. In 1962, Secretary of the Treasury Douglas Dillon appealed to the U.S. General Services Administration (GSA) to incorporate funds for the design of a new building in its upcoming budget. The GSA allocated $450,000, and commissioned renowned architect Victor A Lundy, who produced a design that was approved in 1966. However, funding constraints brought on by the Vietnam War delayed the start of construction until 1972. The Tax Court was again renamed to its current formal designation in the Tax Reform Act of 1969, changing it from an historically administrative court to a full judicial court. The completed United States Tax Court Building was dedicated on November 22, 1974, the fiftieth anniversary of the Revenue Act that created the court. --- Send in a voice message: https://anchor.fm/law-school/message Support this podcast: https://anchor.fm/law-school/support

SGT Report's The Propaganda Antidote
THE INTERNAL REVENUE SCAM!! - JAMES TRACY & STEPHEN SOCHA

SGT Report's The Propaganda Antidote

Play Episode Listen Later Apr 23, 2022 74:52 Very Popular


Are you required BY LAW to pay income taxes to an out-of-control federal government that prints cash out of thin air and then gives it away to special interest groups that seek to destroy you and your family? Researchers James Tracy and Stephen Socha join me to discuss your RIGHTS as sovereign men and women. You can WATCH this episode here: https://www.bitchute.com/video/d6cTDkT1UJee/

Supreme Court Opinions
Boechler v. Commissioner of Internal Revenue

Supreme Court Opinions

Play Episode Listen Later Apr 22, 2022 17:14


The IRS notified Boechler, a North Dakota law firm, of a discrepancy in its tax filings. When Boechler did not respond, the IRS assessed an “intentional disregard” penalty and notified Boechler of its intent to levy Boechler's property to satisfy the penalty, 26 U.S.C. 6330(a), 6721(a)(2), (e)(2)(A). The IRS's Independent Office of Appeals sustained the proposed levy. Under section 6330(d)(1), Boechler had 30 days to petition the Tax Court for review. Boechler filed its petition one day late. The Tax Court dismissed the petition. The Eighth Circuit affirmed, finding the 30-day filing deadline jurisdictional. The Supreme Court reversed. Section 6330(d)(1)'s 30-day time limit to file a petition for review of a collection due process determination is a non-jurisdictional deadline subject to equitable tolling. Whether Boechler is entitled to equitable tolling should be determined on remand. Jurisdictional requirements cannot be waived or forfeited, must be raised by courts “sua sponte,” and do not allow for equitable exceptions. A procedural requirement is jurisdictional only if Congress “clearly states” that it is. Section 6330(d)(1) provides that a “person may, within 30 days of a determination under this section, petition the Tax Court for review of such determination (and the Tax Court shall have jurisdiction with respect to such matter).” The text does not clearly mandate the jurisdictional reading; multiple plausible, non-jurisdictional interpretations exist. Non-jurisdictional limitations periods are presumptively subject to equitable tolling and nothing rebuts the presumption here. *Credit: Justia US Supreme Court: available here: https://supreme.justia.com/cases/federal/us/596/20-1472/#tab-opinion-4571692 --- Support this podcast: https://anchor.fm/scotus-opinions/support

Law School
Taxation in the US: Internal Revenue Service (Part Two)

Law School

Play Episode Listen Later Mar 4, 2022 12:16


History of the IRS name. As early as the year 1918, the Bureau of Internal Revenue began using the name "Internal Revenue Service" on at least one tax form. In 1953, the name change to the "Internal Revenue Service" was formalized in Treasury Decision 6038. Current organization. The 1980s saw a reorganization of the IRS. A bipartisan commission was created with several mandates, among them to increase customer service and improve collections. Congress later enacted the Internal Revenue Service Restructuring and Reform Act of 1998. Because of that Act, the IRS now functions under four major operating divisions: Large Business and International (LB&I), Small Business/Self-Employed (SB/SE), Wage and Investment (W&I), and Tax Exempt & Government Entities (TE/GE). Effective October 1, 2010, the name of the Large and Mid-Size Business division was changed to the Large Business & International (LB&I) division. While there is some evidence that customer service has improved, lost tax revenues in 2001 were over $323 billion. The IRS is headquartered in Washington, D.C., and does most of its computer programming in Maryland. It currently operates five submission processing centers which process returns sent by mail and returns filed electronically via E-file. Different types of returns are processed at the various centers with some centers processing individual returns and others processing business returns. Originally, there were ten submission processing centers across the country. In the early 2000s, the IRS closed five centers: Andover, MA; Holtsville, NY; Philadelphia, PA; Atlanta, GA; and Memphis, TN. This currently leaves five centers processing returns: Austin, TX; Covington, KY; Fresno, CA; Kansas City, MO; and Ogden, UT. In October 2016 the IRS announced that three more centers will close over a six-year period: Covington, KY in 2019; Fresno, CA in 2021; and Austin, TX in 2024. This will leave Kansas City, MO and Ogden, UT as the final two submission processing centers after 2024. The IRS also operates three computer centers around the country (in Detroit, Michigan; Martinsburg, West Virginia; and Memphis, Tennessee). Deputy Commissioners. The Commissioner of Internal Revenue is assisted by two deputy commissioners. The Deputy Commissioner for Operations Support reports directly to the Commissioner and oversees the IRS's integrated support functions, facilitating economy of scale efficiencies and better business practices. The Deputy Commissioner for Operations Support provides executive leadership for customer service, processing, tax law enforcement and financial management operations and is responsible for overseeing IRS operations and providing executive leadership on policies, programs and activities. The Deputy assists and acts on behalf of the IRS Commissioner in directing, coordinating and controlling the policies, programs and activities of the IRS; in establishing tax administration policy, and developing strategic issues and objectives for IRS strategic management. The Deputy Commissioner for Services and Enforcement reports directly to the Commissioner and oversees the four primary operating divisions responsible for the major customer segments and other taxpayer-facing functions. The Deputy Commissioner for Services and Enforcement serves as the IRS Commissioner's essential assistant acting on behalf of the commissioner in establishing and enforcing tax administration policy and upholding IRS's mission to provide America's taxpayers top-quality service by helping them understand and meet their tax responsibilities. --- Send in a voice message: https://anchor.fm/law-school/message Support this podcast: https://anchor.fm/law-school/support

Inside BS with Dave Lorenzo
The IRS Seizes Your Bank Account and Takes Your Passport. What Do You Do? | Steve Klitzner | #18

Inside BS with Dave Lorenzo

Play Episode Listen Later Mar 2, 2022 58:33


The IRS Seizes Your Bank Account and Takes Your Passport. What Do You Do? | Steve Klitzner | #18You open your mailbox and that's when you see it. An envelope with a return address that starts with three letters: IRS. What did you do? Did you forget to pay something? Did your CPA make a big mistake? Are you the target of an audit? The United States Government has infinite resources to come after you and take everything. They can seize your bank account, shut down your business and make your life hell. Steve Klitzner is the person people call when this happens to them. He represents people who have been the focus of the IRS's wrath. On today's Inside BS Show, Dave Lorenzo interviews Steve and uncovers what you can do when the IRS is knocking on your door. Chapters00:00 Introduction to Solving IRS Problems01:45 What is the Most Common Scenario People with IRS Problems Face?02:41 The IRS Makes Deals, In Fact, That's Their Job, Right?04:00 Steve Kiltzner Has a Relationship with the IRS and He Tells a Story About How that Has Helped Clients04:45 There is Always a Financial Analysis in an IRS Case. What Happens if You Can Pay?06:00 What Happens to People Who Fell Behind on Their Taxes But DO NOT Have Money?06:50 How Much Information Does the IRS Have? How Much Do They Know?07:55 The Case of the Contractor Who Said Too Much to the IRS…09:00 The Reason You Should NEVER Talk to the IRS Without Representation09:15 When Do People Go to Jail for Not Paying Taxes?11:38 Why Licensed Professionals Should Be Highly Concerned About Unpaid Taxes12:47 Why Attorneys Sometimes “forget” to Pay Taxes14:39 Why April 15 is Not the day to PAY Your Taxes and When You Should Pay15:30 Here is the Step-by-Step Timeline for IRS Tax Issues16:35 What an IRS Transcript is and Why it is Important18:27 The IRS Can Take Your Passport! Who Does This Happen To?26:22 What Are the Most Common Red Flags that Trigger an Audit?29:30 Who is a Qualified Tax Professional?30:24 Who to Use for Your Taxes if You Are a Business Owner?33:00 What Is an Innocent Spouse and What Happens When Someone Gets Divorced?35:30 Can IRS Debt Be Discharged in Bankruptcy?38:05 Who is the Person Who Doesn't Pay Their Taxes? It's Not Who You Think.41:45 The Three Things Steve Does for His Clients45:00 What Steve Does as a Member of the IRS Advisory Council46:15 Why You Should Never Use a Non-Attorney Service that Advertises Tax Relief48:00 The Advantages for Using an Attorney to Work with the IRS52:53 Steve Works with Clients All Over the Country53:20 What is the Threshold for Steve to Take on a Case?Steve KlitznerIRS Problem Resolution Attorney(305) 682-1118https://floridataxsolvers.com/steve@floridaTaxSolvers.comAbout Steve KlitznerSteven N. Klitzner is a Miami attorney who practices exclusively in the area of IRS Problem Resolution. Steve is admitted to the United States Supreme Court, United States Tax Court, United States Court of Appeals for the Eleventh Circuit, and the United States District Court for the Southern District of Florida.In 2021, Steve was appointed to a three-year term with the Internal Revenue Service Advisory Council (IRSAC).  The IRSAC presents an annual report of recommendations to the Commissioner of Internal Revenue.  He is a charter member of the American Society of Tax Problem Solvers, a member of its Continuing Professional Education Committee, and a recipient of the organization's Top Practitioner Award.  He is a member of the Advisory Board and a Consulting Member of the Tax Freedom Institute, an association of tax professionals in defense of taxpayer rights.Steve frequently lectures around the country, speaking to enrolled agents, attorneys, and certified public accountants in the areas of collections, audits, and appeals.

Law School
Taxation in the US: Internal Revenue Service (Part One)

Law School

Play Episode Listen Later Feb 25, 2022 14:35


The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law. It is part of the Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the Affordable Care Act. The IRS originates from the Commissioner of Internal Revenue, a federal office created in 1862 to assess the nation's first income tax to fund the American Civil War. The temporary measure provided over a fifth of the Union's war expenses before being allowed to expire a decade later. In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified authorizing Congress to impose a tax on income, and the Bureau of Internal Revenue was established. In 1953, the agency was renamed the Internal Revenue Service, and in subsequent decades underwent numerous reforms and reorganizations, most significantly in the 1990s. Since its establishment, the IRS has been responsible for collecting most of the revenue needed to fund the federal government, albeit while facing periodic controversy and opposition over its methods, constitutionality, and the principle of taxation generally. In recent years the agency has struggled with budget cuts and reduced morale. As of 2018, it saw a 15 percent reduction in its workforce, including a decline of more than 25 percent of its enforcement staff. Nevertheless, during the 2017 fiscal year, the agency processed more than 245 million tax returns. History. American Civil War (1861–65). In July 1862, during the American Civil War, President Abraham Lincoln and Congress passed the Revenue Act of 1862, creating the office of Commissioner of Internal Revenue and enacting a temporary income tax to pay war expenses. The Revenue Act of 1862 was passed as an emergency and temporary war-time tax. It copied a relatively new British system of income taxation, instead of trade and property taxation. The first income tax was passed in 1862: The initial rate was 3% on income over $800, which exempted most wage-earners. In 1862 the rate was 3% on income between $600 and $10,000, and 5% on income over $10,000. By the end of the war, 10% of Union households had paid some form of income tax, and the Union raised 21% of its war revenue through income taxes. --- Send in a voice message: https://anchor.fm/law-school/message Support this podcast: https://anchor.fm/law-school/support

Law School
Taxation in the US: Income tax (Part 4)

Law School

Play Episode Listen Later Jan 28, 2022 8:33


History. Constitutional. Article 1, Section 8, Clause 1 of the United States Constitution (the "Taxing and Spending Clause"), specifies Congress's power to impose "Taxes, Duties, Imposts and Excises", but Article 1, Section 8 requires that, "Duties, Imposts and Excises shall be uniform throughout the United States." The Constitution specifically stated Congress' method of imposing direct taxes, by requiring Congress to distribute direct taxes in proportion to each state's population "determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons". It has been argued that head taxes and property taxes (slaves could be taxed as either or both) were likely to be abused, and that they bore no relation to the activities in which the federal government had a legitimate interest. The fourth clause of section 9 therefore specifies that, "No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken." Taxation was also the subject of Federalist No. 33 penned secretly by the Federalist Alexander Hamilton under the pseudonym Publius. In it, he asserts that the wording of the "Necessary and Proper" clause should serve as guidelines for the legislation of laws regarding taxation. The legislative branch is to be the judge, but any abuse of those powers of judging can be overturned by the people, whether as states or as a larger group. The courts have generally held that direct taxes are limited to taxes on people (variously called "capitation", "poll tax" or "head tax") and property. All other taxes are commonly referred to as "indirect taxes," because they tax an event, rather than a person or property per se. What seemed to be a straightforward limitation on the power of the legislature based on the subject of the tax proved inexact and unclear when applied to an income tax, which can be arguably viewed either as a direct or an indirect tax. Early federal income taxes. The first income tax suggested in the United States was during the War of 1812. The idea for the tax was based on the British Tax Act of 1798. The British tax law applied progressive rates to income. The British tax rates ranged from 0.833% on income starting at £60 to 10% on income above £200. The tax proposal was developed in 1814. Because the treaty of Ghent was signed in 1815, ending hostilities and the need for additional revenue, the tax was never imposed in the United States. In order to help pay for its war effort in the American Civil War, Congress imposed the first federal income tax in U.S. history through passage of the Revenue Act of 1861. The act created a flat tax of three percent on incomes above $800 ($23,000 in current dollar terms). This taxation of income reflected the increasing amount of wealth held in stocks and bonds rather than property, which the federal government had taxed in the past. The Revenue Act of 1862 established the first national inheritance tax and added a progressive taxation structure to the federal income tax, implementing a tax of five percent on incomes above $10,000. Congress later further raised taxes, and by the end of the war, the income tax constituted about one-fifth of the revenue of the federal government. To collect these taxes, Congress created the Office of the Commissioner of Internal Revenue within the Treasury Department. The federal income tax would remain in effect until its repeal in 1872. --- Send in a voice message: https://anchor.fm/law-school/message Support this podcast: https://anchor.fm/law-school/support

Supreme Court of the United States
Boechler, P.C. v. Commissioner of Internal Revenue, No. 20-1472 [Arg: 1.12.2022]

Supreme Court of the United States

Play Episode Listen Later Jan 21, 2022 67:11


QUESTION PRESENTED:Whether the 30-day time limit to file a petition for review in the Tax Court of a notice of determination from the commissioner of internal revenue in 26 U.S.C. § 6330(d)(1) is a jurisdictional requirement or a claim-processing rule subject to equitable tolling.Date                 Proceedings and Orders (key to color coding)Apr 16 2021 | Petition for a writ of certiorari filed. (Response due May 21, 2021)May 12 2021 | Motion to extend the time to file a response from May 21, 2021 to June 21, 2021, submitted to The Clerk.May 13 2021 | Motion to extend the time to file a response is granted and the time is extended to and including June 21, 2021.May 18 2021 | Brief amicus curiae of The Center for Taxpayer Rights filed.May 21 2021 | Brief amici curiae of Federal Tax Clinic at Charles Widger School of Law et al. filed.Jun 11 2021 | Motion to extend the time to file a response from June 21, 2021 to July 22, 2021, submitted to The Clerk.Jun 14 2021 | Motion to extend the time to file a response is granted and the time is further extended to and including July 22, 2021.Jul 22 2021 | Brief of respondent Commissioner of Internal Revenue in opposition filed.Aug 10 2021 | Reply of petitioner Boechler, P.C. filed. (Distributed)Aug 11 2021 | DISTRIBUTED for Conference of 9/27/2021.Sep 30 2021 | Petition GRANTED.Nov 15 2021 | Joint appendix filed. (Statement of costs filed)Nov 15 2021 | Brief of petitioner Boechler, P.C. filed.Nov 17 2021 | ARGUMENT SET FOR Wednesday, January 12, 2022.Nov 17 2021 | Record requested from the U.S.C.A. 8th Circuit.Nov 22 2021 | Brief amici curiae of National Taxpayers Union Foundation, et al., filed.Nov 22 2021 | Brief amici curiae of Federal Tax Clinics, Legal Aid Groups, and Tax Professors filed.Nov 22 2021 | Brief amici curiae of The Center for Taxpayer Rights, et al. filed.Nov 22 2021 | Amicus brief of A. Lavar Taylor not accepted for filing. (Corrected version submitted - December 01, 2021).Nov 22 2021 | Brief amicus curiae of A. Lavar Taylor filed.Dec 14 2021 | CIRCULATEDDec 15 2021 | Brief of respondent Commissioner of Internal Revenue filed. (Distributed)Dec 30 2021 | Reply of petitioner Boechler, P.C. filed. (Distributed)Jan 10 2022 | Letter from Solicitor General regarding statistics in brief on the merits filed. (Distributed)Jan 11 2022 | Record received from the U.S.C.A. 8th Circuit. 1 - BoxJan 12 2022 | Argued. For petitioner: Melissa Arbus Sherry, Washington, D. C. For respondent: Jonathan C. Bond, Assistant to the Solicitor General, Department of Justice, Washington, D. C.★ Support this podcast on Patreon ★

Supreme Court of the United States
Boechler v. Commissioner of Internal Revenue (20-1472)

Supreme Court of the United States

Play Episode Listen Later Jan 13, 2022 67:11


January 12, 2022 Hosted on Acast. See acast.com/privacy for more information.

U.S. Supreme Court Oral Arguments
Boechler, P.C. v. Commissioner of Internal Revenue

U.S. Supreme Court Oral Arguments

Play Episode Listen Later Jan 12, 2022 67:12


A case in which the Court will decide whether the 30-day time limit to file a petition for review in the Tax Court of a notice of determination from the commissioner of internal revenue in 26 U.S.C. § 6330(d)(1) is a jurisdictional requirement or a claim-processing rule subject to equitable tolling.

Oral Arguments for the Supreme Court of the United States
Boechler, P.C. v. Commissioner of Internal Revenue

Oral Arguments for the Supreme Court of the United States

Play Episode Listen Later Jan 12, 2022 57:42


Boechler, P.C. v. Commissioner of Internal Revenue

Tales from the 10th
How the Tenth Circuit Got Ruth Bader Ginsburg Her “Good Job” (Part 2)

Tales from the 10th

Play Episode Play 30 sec Highlight Listen Later Nov 22, 2021 14:45 Transcription Available


In Part 2 of this special two-part episode, hear the late Justice Ruth Bader Ginsburg tell the incredible story of how she came to challenge a discriminatory provision of the Tax Code in the Tenth Circuit case of Moritz v.  Commissioner of Internal Revenue.  Read more about Moritz and RBG's now famous 2010 "fireside chat" in Volume IX, Issue 1 (2019) of the Tenth Circuit Historical Society's newsletter: http://www.10thcircuithistory.org/newsletters

Taxgirl
66: How to Avoid Tax Penalties and Seek the Best Tax Advice

Taxgirl

Play Episode Listen Later Oct 12, 2021 37:55


In September, there were still about 17.6M tax returns awaiting processing. Not to mention, the IRS anticipates receiving over 4M more returns in October. The delay has resulted in a lot of frustrated taxpayers, especially those grappling with error notices and being charged penalties and interest for alleged mistakes. Those penalties add up. For the fiscal year 2020, the IRS assessed nearly 31.4B in civil penalties. But are those penalties fair? Are there claims or defenses that can get taxpayers out of those penalties? There's a lot that can go wrong while filing a tax return because the tax code is so huge and increasingly complicated. How can taxpayers seek accessible tax advice, and even defend tax penalty notices if necessary? On today's episode of the Taxgirl podcast, Kelly is joined by Andrew Gradman to chat about the general scope of tax penalties and what taxpayers can do about them, both proactively and retroactively. Andrew is a tax lawyer in Los Angeles specialising in transactional matters. He's the principal at the Law Office of Andrew L. Gradman. He received his BA from Stanford University, his JD from Columbia University, and his Tax LLM and Business Certificate from NYU. He is admitted to the bar in California and Nevada.  Listen to Kelly and Andrew talk about tax penalties: One of the tax penalties that taxpayers are likely most familiar with is IRC 6662, which is an accuracy related penalty. Andrew explains what the details mean and why it exists in the first place. He says, “Penalties are the heart of the tax law.” There's no intent required to be faced with a tax penalty like IRC 6662, which are sometimes referred to as “strict liability penalties.” Why is that rule in place, and how can taxpayers stay on top of these standards? It all comes down to reasonable cause and good faith. Whereas the big problems are negligence and disregard of rules and regulations.  How does negligence apply to taxes? What counts as negligent tax behavior? What are some examples of tax negligence? Andrew explains in plain English that in general, negligence is “a failure to make a reasonable attempt to meet the Internal Revenue laws.” It can also include failure to keep adequate books and records.  If a taxpayer receives a notice for a tax penalty, what can be done about it? If an individual feels the notice isn't “fair,” what options are available to them? Many penalties can be defeated by “reasonable cause” and “good faith,” though there are still some strict liability penalties that are more difficult to combat.  Since the FAQ section of the IRS website is notoriously not to be taken as a binding authority, how can taxpayers reasonably inform and arm themselves against tax penalties?  How can taxpayers prove reasonable cause and good faith in defense of tax penalties? What resources are available during the process? What does “substantial authority” mean in tax law? When there is a mistake when filing, who's responsible? Is it the individual, is it the preparer? What happens next? Andrew says it depends on contracts, courtesy, and (unfortunately sometimes) malpractice.  Sometimes clients don't know that relevant and important information is, in fact, relevant and important when it comes to their tax return, which can lead to an error or penalty down the road. Plus, bad tax advice has never been more abundant than it is now in the age of TikTok and viral media. What is Andrew's advice for finding good and accessible tax advice? When people have access to a tax professional, how candid can they be? What information is necessary to disclose, including bad information or advice they may have heard?  It can feel overwhelming to receive a tax penalty notice. Staying informed and having tax professionals in your corner will give you the tools and empowerment to take a breath and solve the problem.  More about Kelly: Kelly is the creator and host of the Taxgirl...

The Connected Experience
The Connected Experience - Internal Revenue f/ Bryce The Third

The Connected Experience

Play Episode Listen Later Sep 20, 2021 59:12


This Episode of The Connected Experience Podcast is sponsored all new game Animal Instincts: The Urban Jungle Puzzle, now available for DOWNLOAD NOW in the google play store and the apple app store via https://linktr.ee/AITUJ also follow @animalinstinctsanimated on IG Internal Revenue f/ Bryce The Third Join host AJ and SJ of The Connected Experience (@tcepod) as they have a conversation with Inkster Michigan Native Bryce The Third (@brycethethird). We speak about growing up in Inkster MI, becoming a teenage father, battling a drug addiction early in life and more. Press play, sit back and #getconnected Contact us at pr@tcohh.orgFollow us on https://www.instagram.com/tcepodhttps://www.twitter.com/tcepodListen to “The Podcast Album” by The Connected Experience now via Tidal https://tidal.com/browse/album/84652887

Fitness Fame & Fortune
Taxes! America's Most Yoked CPA With Valuable Info For Your Fitness Business - Ron Noreman #51

Fitness Fame & Fortune

Play Episode Listen Later Aug 9, 2021 78:02


TAXES!!! Who likes paying taxes? I'll give you a hint: NO ONE! And talking about it is probably the most boring topic on earth. BUT...... The topic is unavoidable in business, no matter how small your business is Did you know that you can write off part of your rent if you work from home? Did you know that you can write off a portion of your landscaper's bill? Do you know how much of your car is a write off? Do you know the problems you can cause yourself if you don't plan for your taxes and put some money away as it comes in? Do you know what can land you in jail? There is probably more you don't know about your tax planning than you do know. The biggest thing is, no matter how small your business, you must do certain things to make your tax issues easier and less costly. Do you know what they are? Probably not. So, set aside sets and reps and who's going to win the Olympia for an hour and learn something extremely important! Ron Noreman is one of the nation's top CPA's. In fact, he's one of just 200 CPA's in America certified to practice in federal tax court. As a tax litigator, Ron wields incredible power. He has an unparalleled reputation for success in favorably resolving “high dollar” and “problematic” Internal Revenue and other taxing jurisdiction examinations, audits and assessments. He's also an accomplished bodybuilder and he knows the supplement biz. Any of you out there slinging away on your own - personal trainer, influencers, online coaches, competitors, supplement company owners, etc., would do yourself a tremendous favor if you have Ron take a look at your last return. You'll most likely save money. You can contact Ron at: Ron Noreman Kamler, Lewis & Noreman LLP, One Linden Place, Suite 200 Great Neck, New York 11021 516-829-0900 #Taxes, #SaveMoney, #Bodybuilding, #RonNoreman, #Rich Gaspari, #FitnessFame&Fortune, #John Romano, #GaspariNutrition, #DragonSlayerMedia,

KRCU's Let's Talk Business
Let's Talk Business: Bipartisan Infrastructure Deal Reached

KRCU's Let's Talk Business

Play Episode Listen Later Jun 27, 2021 1:45


In case you missed it, there was a little sign of hope last week out of Washington D.C. for future progress. For many years, both citizens and elected representatives have agreed it is increasingly necessary to address this country's infrastructure. But for those same many years, there has been no significant progress on what that really means and how to get it done. Last Thursday, President Biden and a group of Senators agreed to a roughly one trillion-dollar framework to address transportation, water, and broadband infrastructure. The President said these investments are critical to compete with global rivals like China. One of the major stumbling blocks stifling prior attempts is determining how to pay for such an investment. In this agreement, the cost will be covered by repurposing existing federal funds, public-private partnerships, sales from strategic petroleum reserves, wireless-spectrum auction sales, and revenue collected from enhanced enforcement at the Internal Revenue

Oral Arguments for the Court of Appeals for the Second Circuit
Kirik v. Commissioner of Internal Revenue

Oral Arguments for the Court of Appeals for the Second Circuit

Play Episode Listen Later May 26, 2021 23:21


Kirik v. Commissioner of Internal Revenue

Criminality
Mike Sorrentino and the Internal Revenue "Situation"

Criminality

Play Episode Listen Later Feb 12, 2021 47:44


Melissa invites us to travel back to a simpler time and place. 2009. The Jersey Shore. We fondly remember all that this MTV reality show gave us, but we also learn that Mike Sorrentino encountered the all too often quandary; “Mo Money, Mo Problems.” From failed businesses to tax evasion, Mike found himself in quite a situation. Rebekah is up next episode and offers these three clues as to what her story is about: Bling, Paris, and Social Media. Any guesses? Let us know on social media! We are @criminalityshow on IG/FB + Twitter You can say hi and tell us what you’re watching: criminalityshow@gmail.com Enjoy the show? Please rate/review then share with a friend because loving REALITY isn’t a CRIME! https://podfollow.com/criminality Episode Sources:   BROBIBLE: https://brobible.com/culture/article/mike-the-situation-sentenced-prison/ THE GUARDIAN: https://www.theguardian.com/media/2011/aug/17/jersey-shore-situation-abercrombie-fitch INSIDER: https://www.insider.com/jersey-shore-things-you-didnt-know-2018-6 WEB ARCHIVE: https://web.archive.org/web/20100816124221/http://today.msnbc.msn.com/id/38646435/ns/today-entertainment https://web.archive.org/web/20100905011446/http://www.torontolife.com/daily/daily-dish/bottoms/2010/08/31/can-this-new-protein-infused-vodka-help-with-bodybuilding-ask-the-situation/ https://web.archive.org/web/20100816124221/http://today.msnbc.msn.com/id/38646435/ns/today-entertainment PEOPLE: https://people.com/parents/mike-the-situation-sorrentino-pregnant-wife-lauren-pesce-reveal-sex-of-baby/ https://people.com/tv/mike-situation-sorrentino-jersey-shore-star-talks-rehab-18-months-sober-painkiller-addiction-family-boot-camp/ HOLLYWOOD REPORTER https://www.hollywoodreporter.com/news/jersey-shores-situation-earn-5-26940 ABC NEWS https://abcnews.go.com/Entertainment/jersey-shore-side-show-money-making-schemes-galore/story?id=11438790&page=1 https://abcnews.go.com/Entertainment/mike-situation-sorrentino-expected-plead-guilty-tax-evasion/story?id=52411242 FOX NEWS: https://www.foxnews.com/entertainment/jersey-shores-mike-the-situation-sorrentino-opens-up-about-his-relationship-with-family NJ.COM https://www.nj.com/entertainment/2010/06/the_situation_releases_rap_tun.html US MAGAZINE: https://www.usmagazine.com/celebrity-news/news/mike-the-situation-sorrentino-is-engaged-to-lauren-pesce/ https://www.usmagazine.com/celebrities/the-situation/ CNN: https://www.cnn.com/2014/06/17/showbiz/mike-situation-sorrentino-arrest/index.html BUZZFEED NEWS: https://www.buzzfeednews.com/article/tasneemnashrulla/unpleasant-situation HOLLYWOOD REPORTER: https://www.hollywoodreporter.com/thr-esq/jersey-shore-star-loses-fitchuation-57975https://ew.com/article/2014/03/31/sorrentinos-the-situation-reality-series/  NZ HERALD: https://www.nzherald.co.nz/entertainment/a-quick-word-mike-sorrentino/RBRQJSXUIUF37MH3UCCNGBUK2A/         Learn more about your ad choices. Visit megaphone.fm/adchoices

Business Drive
Nigerian Government Urged To Improve Internal Revenue Mobilisation

Business Drive

Play Episode Listen Later Jan 12, 2021 1:15


A former Central Bank of Nigeria Deputy Governor, Prof. Kingsley Moghalu, on Monday called on the federal government to maximise the benefits of Nigeria being a $400 billion Gross Domestic Product economy by broadening its internal revenue generation efforts rather than relying on public borrowings to finance its budget deficits.

Zalma on Insurance
Explaining the Tax Consequences of Bad Faith Punitive Damages

Zalma on Insurance

Play Episode Listen Later Dec 11, 2020 18:07


Modern Tax Law Makes Punitive Damages Only For The Benefit Of The Lawyers https://zalma.com/blog In Gary L. Greenberg and Irene Greenberg v. Commissioner of Internal Revenue, No. 25420-07. (U.S.T.C. 01/24/2011) the United States Tax Court dealt with a recipient of insurance bad faith punitive damages who tried to avoid tax on the award. As a result, the recipient of the award of punitive damages for the bad faith conduct of their insurer, resulted in a major tax consequence and not the windfall the plaintiffs thought they received. Because the Greenbergs could not convince the Tax Court of their position the Court not only slapped the Greenbergs down in affirming a tax deficiency of over $1 million, but further sanctioned them with an accuracy-related penalty, because the taxpayers had neither substantial authority, nor reasonable cause underlying their posture on the damage award. The Tax Court noted that the definition of gross income broadly encompasses any addition to a taxpayer's wealth. Therefore, absent an exception by another statutory provision, damage awards from a lawsuit must be included in gross income. In general, exclusions from income are narrowly construed by the tax court. The Greenbergs argued that the punitive damages they received in their insurance bad faith case may be excluded from income under section 104(a) (3) primarily because punitive damages could not have been awarded without the insurance policy. The Tax Court discounted the “but for” argument, and found it was discredited by the Supreme Court's analysis of section 104(a)(2) in O'Gilvie v. United States, 519 U.S. 79 (1996). In that case the Supreme Court considered an earlier version of section 104(a)(2) that excluded from income “the amount of any damages received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal injuries or sickness”. The Court reasoned that both the statute and the intention of Congress to exclude only those damages that compensate for personal injuries or sickness indicated that the exclusion does not include punitive damages. --- Support this podcast: https://anchor.fm/barry-zalma/support

Art of Dental Finance
Everything Dentists Need to Know About Financial Planning

Art of Dental Finance

Play Episode Listen Later Nov 25, 2020 67:35


Dentists, like other professionals, should develop a solid financial plan to build wealth and prepare for retirement. Planning for financial independence while building their dental practice is an issue that concerns dentists at all stages of their career, whether they’re just starting out, growing to multiple locations, or preparing to sell their practice in preparation for retirement. Developing a financial plan with the guidance of a team of professional advisors helps them meet their unique current and future goals and will continue to evolve throughout the various life stages.  In this episode of The Art of Dental Finance and Management podcast, Art meets with Ryan Weigel, CPA, CFP and Zachary Schnitzler, CEPA, CLCS of Eide Bailly Financial Services about the financial planning process for dentists. Ryan and Zachary emphasize why financial plans are so important, major pitfalls to avoid (typically not having any financial plan), as well as what steps dentists can take to ensure success. They also discuss some of the essential elements of a solid financial plan: Budgeting Debt reduction Student loans Retirement savings Insurance coverage Children’s education Estate planning Reach out to Art if you have any questions regarding dental finance and management for your dental practice. More information about the Eide Bailly dental team can be found at www.eidebailly.com/dentist.   [CALL OUT BOX – We Can Help Button] Let us help you build a solid financial.   [cta: www.eidebailly.com/financialfuture]     The Transcript   Art Wiederman, CPA And hello everyone, and welcome to another episode of The Art of Dental Finance and Management with Art Wiederman, CPA. I am your host, Art Wiederman. It's a pleasure for me to be joining you today and sharing some information. I am a dental division director at the CPA firm of Eide Bailly. Our CPA firm represents about 800 dentists and today's topic is, goes to the core of what this podcast series is about. It's called The Art of Dental Finance and Management.   And today we're going to be talking about a financial plan. I've done podcasts on the 10 Biggest Financial Mistakes Dentists Make, and I've talked about retirement planning. But today I have two really great experts from our firm, Ryan Weigel and Zach Schnitzler. And Zach and Ryan are going to go ahead and talk about financial planning. They're part of our financial planning group.   We're going to talk about why do you need a financial plan? What is a financial plan and what are the biggest mistakes we see dentists making. Because they're working with dentists and other professionals all over the place and they have a really neat retirement planning module. And I'm going to talk about insurance. So we're going to get to that in a couple of minutes.   I do have some information for you that I want to share with you first about our partners. And then about something that happened yesterday that came out from Treasury. We're recording today, which is November the 19th, which is Thursday. So I'll talk about that in a second. A couple of rulings and procedures that came out from IRS that is, unfortunately, folks not going to make anybody happy. But we'll talk about that in a second.   I would really like for you guys to take a look at our partner, Decisions in Dentistry www.DecisionsinDentistry.com. Great, great, great clinical content, continuing education courses. They have been a wonderful partner of ours in working with us on the podcast and sharing great information for dentists on clinical dentistry.   Also our Academy of Dental CPAs, which is www.ADCPA.org. 24 CPA firms across the U.S. that represent over 10,000 dentists. We are, at Eide Bailly, one of the members of that group. And I've got some great information for you, too.   We are putting together here in Southern California a one year long series on the business side of dentistry, six local dental societies in Southern California, and I have no problem mentioning them by name - the Harvard Dental Society, the Orange County Dental Society, both the Los Angeles and the West Los Angeles Dental Societies, the San Gabriel Valley Dental Society and the San Fernando Valley Dental Society. I am putting together, through Eide Bailly, a wonderful, wonderful year-long series which is going to begin, put on your calendar, because I'm inviting all of my podcast guests, because the great thing about doing stuff virtually is anybody can join. You don't have to get on an airplane or book a hotel room and these are free. These are not going to cost anything and the information is going to be fantastic.   So the first one is going to be on December the 9th, which will be from 6:00 to 8:00 p.m. and it's going to be on year-end tax planning and the research and development income tax credit for dentists. So if you would like to register, the page is either up or will be up very shortly. You can register for the webinar and if you register, they'll send you the link. You go to www.EideBailly.com/dentalseries.   And in fact, as part of this dental series, one of the series, which is going to be every month in 2021, we're going to start with December and then it'll start in January and February. And every month after that. One of the series is going to be these two gentlemen that you're going to hear today is going to talk about in much more depth than we can do on a podcast. We're going to be talking about financial planning and we're actually going to do a case study or two on the webinar with the software, which is really, really cool. So www.EideBailly.com/dentalseries.   And also if you're interested in the R&D tax credit www.eidebailly.com/dentalrd. Put in your information and our team will give you a call. So I want to talk before I get to Zach and Ryan. I want to talk about what came out yesterday and what came out yesterday. We knew it was coming. And in fact, our previous podcast with Mel Schwarz. Mel emailed me two days after we recorded and he said, Art do we need to rerecord because this is coming down the pike.   So I've been talking to you guys about the PPP loans and whether the expenses that you pay are deductible. Remember, your PPP loan is not taxable when you have it forgiven. So back in April, I think it was actually April, late April, early May, Treasury came out with Notice 2020-32 that said the expenses are not deductible, but they didn't give us any details. So I have taken the position on this podcast that if you have a forgivable loan, that and it's not forgiven by the end of the year and you're a cash basis taxpayer. I've been a CPA for a long time. 36 years. And the law says if you don't have a forgivable event, then those expenses are deductible.   Until yesterday. Revenue 2020-27 came up with two situations. Number one, it basically said that if you apply for forgiveness in 2020 but no decision has been made on your forgiveness. But you meet all the rules, you check all the boxes that you're going to get full forgiveness. Or you wait until 2021 and you meet all the rules. They basically say, and these are the words in the ruling that if you have a quote, reasonable expectation of reimbursement and I will read from the ruling, quote, if it's reasonably expected to occur rather than being unforeseeable, such a deduction is inappropriate.   Bottom line is, folks, if you meet all the rules and you're going to get forgiveness, then your expenses are not deductible for 2020. So if you got 100,000 dollar PPP loan, you better add 100,000 dollars to your taxable income for 2020, which is going to bring a lot of my doctors to not only where they were in 2019, but even higher. Very, very important doctors that you go to your CPA between the next six weeks, between now and the end of the year and figure out where you're at.   There is a revenue procedure, 2020-51, which is a safe harbor, which basically says that if you reasonably expect forgiveness and you're submitting for forgiveness, but all or partial forgiveness is denied. In other words, you don't get forgiveness, or if for some reason you choose not to file for forgiveness. I don't know any dentist in America that is not going to file for forgiveness. But if you just say I don't meet the rules, I fired everybody. I didn't bring them back, then no problem. Then you can deduct the expenses in the year that you are denied forgiveness. It doesn't tell me if you have no intention of submitting for forgiveness at all in 2020 can I deduct the expenses, it doesn't address that.   I did have a long conversation with Megan Mortimer yesterday from the ADA. I will tell you that the ADA, along with the American Restaurant Association, the American Institute of Certified Public Accountants, the AMA organizations that represent dogs and giraffes and puppies and everything, they're all going to Congress and they're all basically pushing real hard. And folks, without getting into details at the moment, it's all political.   We may not see anything about this until January, February. So you may be looking at extending your tax returns to see what the government's going to do. We think they're going to make a law that says these expenses are deductible. It would hurt small businesses if they didn't. But we'll see what happens.   Alright. Well with that joyful news, folks? Let's get to our program today. My good friends, Ryan Weigel and Zachary Schnitzler from Eide Bailly are going to join us here in a second. Let me tell you a little bit about them. Ryan is a financial adviser. He is located in Aberdeen, South Dakota. He works with his clients on financial planning, including cash flow analysis, education, planning, insurance and risk analysis, retirement planning and asset allocation. And that's Ryan.   And Zach is in Fargo, North Dakota. Go North Dakota State Bison, by the way, I told him that earlier. Zach's an insurance specialist involved in insurance planning, employee retention solutions, planning for purchase and sales of businesses, succession and estate planning. So, Zach and Ryan, welcome to the Art of Dental Finance and Management.   Ryan Weigel, CPA, CFP Thanks Art. It's our pleasure to be here.   Art Wiederman, CPA Hey, nice to talk to you guys. Appreciate you taking the time today. So you guys are avid golfers, I hear. So I won't talk about the fact that I went out and played yesterday here in Orange County, because right now you're just playing like ice golf or indoor golf. How's that work?   Ryan Weigel, CPA, CFP I'll let Zach go on that he's a he's a better golfer than I am.   Zachary Schnitzler, CEPA, CLCS It kind of depends on the day. But up here in Fargo, we definitely started our indoor simulator league, and it's not even Thanksgiving time yet. So it's too bad.   Art Wiederman, CPA We'd love to have to get you out here to play some golf anyway. So. Hey, guys, why don't you. Again, we're talking today about financial planning, folks. We you know, I went through all the Certified Financial Planner courses, you know, a long time ago. And it takes, you know, a couple of years to do that. So in an hour podcast, we're not going to be able to go through every single detail. What my objective today is to make a call to action.   If you haven't done a financial plan, if you haven't figure out where you're going, we want you to take action after what we talk about today. You know, there's seven areas of financial planning. There's cash flow management, there's taxes, there's insurance, investments, retirement planning, estate planning and college planning. We're going to touch on them today. But we want you to take action. Basically sit down and figure out where you're at so that, you know, if you don't have a road map and you don't know where you're going, it's kind of hard to get there. So with that said, let's start. Ryan, tell us a little bit about your journey.   Ryan Weigel, CPA, CFP Yeah, so I'm a CPA, much like you are, and I'm also a CFP, as you alluded to. So my journey started with Eide Bailly, I think 12 years ago. I started on the tax side. I did tax work tax compliance work, and that led into a lot of planning. Just as you alluded to earlier. The dentists better be, the doctors you're working with, meet with their CPAs here between now and the end of the year, because there's a lot of the year-end planning needs to get done.   That brought on a lot of things that I enjoy doing, which was financial planning instead of just tax compliance planning. It was now financial planning, which also alluded to investments and insurance and so on. And so my career path changed about halfway through my tenure with Eide Bailly and it moved over to our financial services division. So my main role is financial planning for clients. And again, like I said, it involves a lot of pieces, investments, tax insurance and so on and so forth.   Art Wiederman, CPA OK, and Zach, other than you going to PGA school or whatever it is, what are you doing? What's your story?   Zachary Schnitzler, CEPA, CLCS Yeah. So as you mentioned, I'm an insurance specialist specifically in the financial planning realm. So we're talking life insurance, disability insurance, long term care insurance type work. I've been in it my whole career almost ten years. Everybody grows up wanting to be an insurance person. I know that. But no, I have some great mentors right away to jump into the business. And before Eide Bailly, I was primarily a consultant with financial advisors as the insurance side is a very unique animal in itself and it requires specialized attention. So happy to be at Eide Bailly. And it's a great place to help our clients on a consultative type approach versus a sales type approach.   Art Wiederman, CPA Yeah, we don't sell. I've never sold. I mean, I'm a registered investment advisor. But guys, if I recommend a stock or a mutual fund, you should probably short it. That's kind of the way I feel about the whole thing. So, hey, Zach, we have to do the required reading of the disclosure. So why don't you get that out of the way and then we'll get another topic.   Zachary Schnitzler, CEPA, CLCS We do. It'll be as fast as possible, I promise. Here we go. Financial Advisors offer Investment Advisor Services for Eide Bailly Advisors, LLC, a registered investment advisor, securities for Three United Planners Financial Services member of FINRA SIPC. Eide Bailly Financial Services LLC is the holding company for Eide Bailly Advisors LLC and Eide Bailly agents. Wholly owned and operated under Eide Bailly LLP, insurance products are offered or issued under Eide Bailly Agency, LLC. Eide Bailly Advisors LLC employees can also be licensed as insurance agents producers of Eide Bailly Agency, LLC. Eide Bailly Financial Services and its subsidiaries are not affiliated with United Planners. Not all products and services are available in all states. The views expressed are those of the author of the date noted are subject to change based on market and other various conditions are not a solicitation to purchase or sell any security and may not reflect the views of United Planners Financial Services. Keep in mind that current and historical facts may not be indicative of future results. Third party material is meant to provide general information and is not to be construed as specific investment tax or legal advice. Individual needs vary and require consideration of your unique objectives and financial situation.   Art Wiederman, CPA Okay, promise me you're not going to do that again.    Zachary Schnitzler, CEPA, CLCS Promise. We're done with that.   Art Wiederman, CPA So which stocks should I buy? Nah, I'm just kidding. Let's just blow up everything we just did.   Zachary Schnitzler, CEPA, CLCS Yeah. Right.   Art Wiederman, CPA So there you go. Okay, so let's start out with the basic question. Why does a dentist need a financial plan?   Ryan Weigel, CPA, CFP Well, you alluded to this earlier, Art. A roadmap, right? So I always try to tell clients is as we sit down with you and we try and gather your information, you've got many roads to go and we're trying to determine which road makes the most sense. And just because it makes sense today doesn't mean in two years it's going to still mean the same road. But what it does is it allows us to have a form of a road map to help answer a lot of questions. And those questions are, again, tax, investment, insurance, business succession, estate. So the whole goal is, hey, I've got this plan in place to answer questions. And it's not a product specific thing. It is a service specific.   Art Wiederman, CPA Right, so what we want to do is, is, you know, again, my experience in this, guys, is that, you know, the people that do this right they're looking at what the goals and the objectives are. And at some point down the road, everybody's got to get compensated for what they do. And at some point down the road, a product usually is involved, whether it's an investment product or an insurance product or something. But that's not where we start, right? That's not even close to it.   Ryan Weigel, CPA, CFP No. You start with the financial plan first and foremost, and that's going to give you. The numbers don't lie in a plan is what I usually tell my clients. Because if it says you need life insurance, you probably need life insurance. I don't care who you talk to about that. There's probably a need of life insurance. Right. But the plan gives you the numbers and the numbers don't lie. And you kind of work through that scenario.   You know, the one thing I'll just say real quick, Art, is there's really four main steps that I use. I think most individuals that use this, but the first step to plan is we sit down and you listen. OK, what are the goals and circumstances? What is your profession? OK, you're a dentist. OK, what's the goal? How long do you want to work? Right. Then we kind of gather a lot of information from you. We might analyze that data and put together some creative plan. But as soon as tomorrow hits, my creative plan is done because your checking account just changed or PPP loan that you just talked about is now no longer a deductible expense. And that just changed the financial plan because now I have to pay more taxes. Right.   So there's this constant circle of what happens where we're constantly looking at everything. And that's why I always tell clients, hey, we're not doing a financial plan because the financial plan is the date stamp we're done. We're doing financial planning. Financial planning is this thorough thing that keeps going and it's constantly evolving. Right?   Art Wiederman, CPA So when you meet with your clients, you do the initial plan and I want you to get a little more into exactly what you're doing. How often should a dentist meet with his or her financial planner after we do the initial plan?   Ryan Weigel, CPA, CFP So the initial plan is going to be, you're probably meeting six times from start to finish over a series of, it could probably be anywhere from, you could probably get it done as quick is four to six weeks or four to six months depending on how busy you are, how busy the planner is. But then going forward, there is no rhyme or reason, it's as needed.  I would say at a minimum, twice a year. I want to look in the spring how are my investments doing, how was my plan, what are my goals that have changed? And I better be looking at the end of the year too. You know, what are my tax implications? What do I need to do? Is there some retirement plan changes I need to make, have I updated my will, have I looked at my insurance lately? So at a minimum twice a year. But it could be 12 times. I mean, depending on each client, there's no specific rhyme or reason to it.   Art Wiederman, CPA Now you guys said there's four steps. How many of, you talked about the listening part. That's the first step, right?   Ryan Weigel, CPA, CFP Yeah. Yep.   Art Wiederman, CPA Where do we go from there?   Ryan Weigel, CPA, CFP Yes. Cause we're in the gather step. And in the gather is where we really sit down and we're trying to do not only the hard skills, the hard numbers, but the soft skills. So what is your actual net worth, their balance sheet look like. Then we're going to gather information. What insurance do you have? What investments you have? But that is a lot of the soft stuff. What is your goal? Is your spouse working? Does she have the ability to work? What do you want to do? Do you want to climb Mt. Everest in five years? Because that might change the impact or do you want to sell your practice for a ton of money at age 40. Or do you want to be a dentist, not care. Right.   So you got to gather the soft skills as well. Then we got to sit down. The third step is we need to analyze the data. We got to figure out what do you have. Right. And then our job from there is to create this because the fourth step would be to create this plan and create this fluid plan that keeps evolving. And then so right after we get done with the fourth step, which is great, you go right back into listening again.   Art Wiederman, CPA Yeah, and we see I want to talk about the mistakes, because we want to make people make sure that they don't get mistakes, they don't make mistakes. So what are the biggest mistakes you see working with your dental clients on financial planning?   Ryan Weigel, CPA, CFP The first one is that and then take this with a grain of salt for anyone who's listening, but they don't have a plan, right? That's the biggest one. And it's not that they don't want to Art. It's typically because they're busy running their practice. Right. There's only so much time in the day. They might have kids and might have employees and they got practice and everything's going on and on. And so this thing just gets kicked to the side, which is a reasonable thing to think about. But at the same time, it's so important that you have to do it. So that's absolutely first and foremost, the biggest issue I see is that we don't have one. They bought some insurance because they were told it was a good idea, but they don't know if it's a good idea because they don't have the time.   Art Wiederman, CPA So let's talk about insurance for a minute, because this is, we're just going to go all over the place here with this. Then we'll hit everything. You know, I have some opinions about insurance, but we have life insurance and we have disability insurance and long-term care. Really, those are those are the main food groups. Let's talk about life insurance.   So when you guys look at a client, how do you determine, let's just briefly get into how much do they need and what type of insurance do you recommend?   Zachary Schnitzler, CEPA, CLCS Well, let's kind of start at step one. I mean, what we are finding is in this industry, many folks are severely underinsured. And you know, that might even be with hypothetically one million dollars of death benefit, for example. It sure seems like a big number. You know, we use the word million in it. But when you calculate, let's say, income replacement for a 35 year old dentist. You know, how many years of income does that, we'll call it, you know, that person and that machine have for the rest of their career if something were to happen? And I'm not saying like a 35 year old needs to insure 30 years of income by any means. But all of a sudden, you know, using that example of, say, a million dollars doesn't go very far.   Art Wiederman, CPA No.   Zachary Schnitzler, CEPA, CLCS So that's piece number one is it does seem like the majority of people, dentists included, are many times vastly under insured and don't understand, you know, how many years of income they should maybe be thinking about replacing if the worst case scenario happened.   Art Wiederman, CPA And a lot of this Zach is that really depends on, you know, if I have a husband and wife and one of them is the dentist and the other one is not working, I'm going to need a lot more than if both of my doctors, both of my husband and wife, both of the people who are husband and wife, sorry about that, are both earning two or three or 400,000 dollars a year.   You know, I have an interesting thing that I want to get your take on this is, in my mind and I'm overly simplifying it. I like for a dentist, I need enough life insurance, because remember, isn't life we get life insurance is to two purposes. Number one is income replacement. And number two is estate needs, which at the moment, unless you get an estate of about 24 million dollars, husband and wife, if you do your planning right, is not an issue. Right?   Zachary Schnitzler, CEPA, CLCS Right.   Art Wiederman, CPA OK, so basically, I'm looking for enough money to pay off the mortgage, put a fund away for the kids for college, and then to have enough of a pot of money to keep potentially a non-working survivor's spouse able to live reasonably.   Zachary Schnitzler, CEPA, CLCS Right.   Art Wiederman, CPA Does that seem reasonable to you?   Zachary Schnitzler, CEPA, CLCS Oh, absolutely. And the big thing is Art. I'll ask you a question. I mean, if somebody, dentists or anybody else hypothetically say, passes away and their income was 300,000, could a non-working spouse go find a new job that pays 300,000 dollars a year?   Art Wiederman, CPA Highly unlikely.   Zachary Schnitzler, CEPA, CLCS Very highly unlikely.   Art Wiederman, CPA Unless they are also a dentist or another type of profession. Yeah.   Ryan Weigel, CPA, CFP Hey there's something I want to hit on that really quick, guys. One of the things I see is let's just go back to your same example. We've got a dentist practitioner and a non-working spouse. I always see this. The dentist practitioner has insurance, the spouse has none. And I ask well why? Because they don't make any money. But then I'll ask them this. Well, what is the non-working spouse do? Well, they take the kids to school and they make sure the house is taken care of. And they do all these things so that I can maintain my business and I can be the breadwinner. Right.   There's actually a need over there because if the non-working spouse parishes, if something happens to them, you either got to hire a nanny or you can't be as productive in your business, right? So you don't have to go and get oodles of money and millions of dollars. That's not the point. But there is actually a need for both people. And you see that quite a bit, actually.   Art Wiederman, CPA And obviously, buying life insurance is cheaper when you're younger than if you're older.   Zachary Schnitzler, CEPA, CLCS Very much so. It's crazy how it follows almost the perfect exponential curve.    Art Wiederman, CPA So the bottom line is we need enough money to cover a surviving spouse and the family if they if, God forbid, the dentist passes away. And then again, because we could spend hours on this. Are you term insurance? You have permanent insurance, maybe a little comment on what people should be looking at just in a high overview.   Zachary Schnitzler, CEPA, CLCS Yeah. So first and foremost, you know, the younger dentists term insurance is super simple, very inexpensive. You can get high limits for low premium. I definitely recommend that all have at least some of that. Permanent insurance, it's a podcast of its own I think. It offers lots of different advantages, like potential for tax free income. But it is absolutely not for everybody. And that is a case by case basis. So permanent insurance will have some cash value that comes with it, although a much higher premium.   One thing Art I do want to quickly mention is we're talking about having enough. What is enough? Right, how many? What's the multiplier of income some are there are some agents out there that I know that are literally trying to get as much as possible from the insurance company. Myself, I am in the ballpark of close to seven times income plus debt.   Art Wiederman, CPA Yeah, that's about right. I was going to say, you know, seven to ten, but yeah. So for example, doctors, you know, if you're making 300,000 dollars a year, that's 2.1 million dollars. Is that enough to pay off your mortgage, put the kids through college and have a pot of money available for your surviving spouse so that he or she does not have to work and can be focusing on the family? I don't know. You got to run the numbers, right guys?   Zachary Schnitzler, CEPA, CLCS There's no question it's a case by case basis. The good news is I hate to say that there's good news during the COVID-19 pandemic because nothing seems like good news. Right. A lot of a lot of doctors and dentists are scared almost of applying for these limits because it comes with a very, very challenging underwriting experience. Might have to give blood. Your might have to order medical records. Well, due to the pandemic, companies have increased what's called accelerated underwriting, where people can get up to five million dollars of life insurance immediately with an online health portal. So it doesn't, you know, somebody you don't know doesn't necessarily have to come to your house and put a needle in your arm to see if you can get these high limits.   Art Wiederman, CPA OK, and I talking about disability insurance, what I tell people is as much as you can qualify for, you have comments on disability.   Zachary Schnitzler, CEPA, CLCS Yeah, no question. I agree with you there. And it's usually close to 60 percent of income is about what these insurance companies will offer. However, in most cases, disability and insurance would pay out tax free. So we don't necessarily need a super high, you know, close to 100 percent by any means.   Art Wiederman, CPA What do you think about long term care insurance?   Zachary Schnitzler, CEPA, CLCS Well, for the, maybe the dentist on the second half of their career, it's a major issue in our world today of the cost of long-term care, whether it be nursing home, assisted living etc. You know, now we're talking after work life, right? We're planning for after it.   It's something that needs to be looked into. I mean, when I'm saying that it's a problem, it's costing just to get care upwards of 10,000 dollars or more per month. And it's going back to why we're doing this today, financial planning or planning for all aspects of life, short term and long term. It's all about asset protection. We're not necessarily, you know, don't need to talk to clients about, well, you want to go to a nursing home or do you want to do this? It's about protecting your assets. A six year stay at over 120,000 dollars in 2020 money, you know, not even counting inflation. It'd be 700,000 plus. And that's an issue.   Art Wiederman, CPA And how about this guys, not only for the doctor, but what about the doctor who's mother or father or both have not done a good job of saving and they need to go into a nursing home and you, the doctor, are the only child who has assets. Who's going to be paying for that? Do you see that happen?   Zachary Schnitzler, CEPA, CLCS Correct. Oh, absolutely. There's no doubt. One other thing to mention. Art you're a CPA. Ryan, you are as well. Long term care, buying long term care insurance can come with some fairly unique tax advantages as well.   Art Wiederman, CPA We're not going to get into that today because that will be a 12 hour podcast.   Zachary Schnitzler, CEPA, CLCS Like I said. Yeah, that's time for another podcast. These topics could all have their own at some point.   Art Wiederman, CPA Absolutely. So talk about student loan debt. And that is a big deal. In the United States, the average student loan debt is and again, this is all over the country, is somewhere between 250 and 300,000 dollars is what it costs to go to the average United States dental school. In California, we have, I tell this story occasionally at my lectures, and I probably told it on the on the podcast, is that I had two doctors come up to me. I was speaking at the University of Southern California Dental School, oh, gosh, about five years ago. And these two young men come up to me and say, Mr. Art Wiederman, thank you so much for your lecture. We both did four years of dental school here at USC, plus a general practice residency. We are 550,000 dollars each in debt. What do you suggest?   And my answer to them was, guys, if you go walk around the corner to Hoover Street, there's a 7-Eleven, they sell lottery tickets. Other than that, I got nothing for you. How do you approach student loan debt?   Ryan Weigel, CPA, CFP Well, that's one way of spin that.   Art Wiederman, CPA It works really well, I mean, yeah, it's not very good, but it is a way to do it.   Ryan Weigel, CPA, CFP So earlier when I discussed the gather meeting, which is our our second meeting with clients and their soft skills. This is some of the stuff that comes up. It's hey you're going to have to live like a college student for a few more years. I know you're making a bunch of money and I know it's great you want to you want to move on from that. You don't have the luxury to do that, unfortunately, because if we don't take care of the student loan debt soon, we don't have a game plan in place or plan in place for this stuff just keeps going. And the downfall is it's not like it's cheap interest.   The average loan, I think it's still like seven and a quarter. So you think about oh I can go get a house or a car right now in today's environment, two, three, three and a half percent. No, you're still at seven or seven and a quarter is the average and sometimes higher than that. So the only way to take care of student loan debt is to pay for it. That's first and foremost. The only way to pay for it is to have some detailed plan. And the easiest thing I've found for new grads for sure, is you have to just live like you're still in school. We just have to take care of it.   And, you know, we use a software, we've branded Eide Bailly Wealth One the meat and potatoes behind it is eMoney is the software we use. We can show what that means inside of a plan. And so once you can start to pictorially show that it kind of helps them understand. Yeah, I got to get this taken care of because if I don't get this taken care of that, then I can't get my retirement plan started. And if I can't get my retirement plan started, then I got to make a decision down the road of whether I need to buy long term care insurance or if I self-funded because I saved enough money along the way. Right. So it just keeps it rolling.   Art Wiederman, CPA Yeah. So this is why it's a, this financial planning thing is not a one time deal. It's on going because you're going to start your life out in your 20s. Doctors, most dental students, most folks graduate dental school somewhere between the ages of 25 and 30, give or take. You start later, you do it later. And at that point you might be single living with three guys or three ladies in an apartment somewhere and starting your life off as a dentist. And then the next thing you know, you get married, the next thing you know you have kids and next thing you know, you buy a house and you buy a practice. I have, I sell dental practices, guys. I have two 30 old dentists about four years ago, I sold the practice to. They had 800,000 dollars of student loan debt. They bought a practice from me for about one million, 250 thousand dollars. So they were two million dollars in debt at the age of 30 and they didn't even own a home, in Southern California.   Now, that's scary. So, again, in different parts of the country, it's going to be different. A home in Iowa is going to be different than a home in Southern California and the same thing with a practice. Let's get into, let's talk a little bit about estate planning, because, I mean, my experience, guys, is that you're looking at 60 percent of the people that I deal with do not have wills or trusts. I don't know what the, maybe your numbers are similar, but just some basics about why it's important and what people should be thinking about.   Ryan Weigel, CPA, CFP The numbers that you mentioned, 60 percent is spot on, I mean, 60 percent of the people don't. And it goes back to the thing I said earlier is that you get busy in your practice. It's just another one of those things that you're going to get to someday. The simplest thing to start with, just get a wil. Go to a respected attorney, ask your older peers if you're a multi doc practice who they use, go get some wills established, that's just first and foremost.   But then as you're a more seasoned practitioner and you're getting more towards a later time in life, you've got to start doing estate planning. Estate planning, you mentioned earlier Art, unless you have 22 million dollars, you don't have an estate tax issue. But it doesn't mean that you can't do estate planning and estate planning is simply sitting down and trying to understand how do I want to divide everything up upon my demise. Right. And how do I want it to escape probate? How do I want it to go efficiently and certain pieces like that. So. Depends on the life cycle you're in. First and foremost, but a will has to be done. You just got to get it done. And then probably the next thing is, once we get a little bit further on it, what is my estate plan regardless of my asset size? Zach, anything you would add to that?    Zachary Schnitzler, CEPA, CLCS Yeah, for sure. Well, I think a lot of people do think about estate planning is it's you know, a tax mitigation thing. And it's not at all. There is an estate tax. And about a year or so ago, we had a campaign called Estate Planning for the other 99 percent. Right. But it needs to happen. There are things that people need to do. And it comes down to if it's not on paper, it's not a plan. My, I work for, like you said Art, in my bio, on succession planning and whatnot and estate planning. I think we did a we did a study and said about 70 percent of people said they had an estate plan or a transition plan. And then what was funny is the next piece was 50 percent said it was in their mind, OK, if they have a plan here. But ultimately, it's not a plan if it's not on paper.   Art Wiederman, CPA Yeah, that's like that's like my 330 yard drive similar to Dustin Johnson. That's in my mind. I just can't get it to my driver. That's my problem.    Zachary Schnitzler, CEPA, CLCS There's no, it's a great analogy for sure. And as the only thing I can mirror as Ryan said is business owners and in this case dentists who own their practice, they're very good obviously at what they do. However, you know, they need help with things that like this that they aren't thinking about every day.   Art Wiederman, CPA So I'm going to take a break here, guys, and just share with everybody you. Yeah. Like I say, what I'm hoping this is going to do, ladies and gentlemen, is to be a call to arms to get some planning done. If you're working with an Academy of Dental CPAs member, if you're a client of them, you're in very good hands. They can handle that for you. If you're not, if you're not working with someone, if you haven't done any planning at all, I'm going have these guys give their contact information out and it'll also be in the show notes.   But what I want you to do is whether it's with your CPA, your financial planner, if you've got a great financial planner that you're working with, that's great. Let them do the plan. Call them up, call them up as soon as you hear this podcast and say, hey, Joe, hey, Susie, whatever their name is. You know, I've been thinking about it and I really want to get a plan on paper. And can you do that for me? And if you need some help, these guys can help you. So guys, give out your contact information if somebody wants to give you a call or email you.   Zachary Schnitzler, CEPA, CLCS Yeah, my direct number once again, my name is Zachary Schnitzler, direct number is 701.239.8567. And if you remember, Art talking about my last name, it's a doozy. So I think we'll just say check the show notes for my email. It is ZSchnitzler@EideBailly.com. It's a tough one to spell. I'd say if it were a batting average, it'd be somewhere around each year I was batting average in the three hundreds of people who get it right.    Ryan Weigel, CPA, CFP Yeah, mine. You can contact my office at 605.225.8783. My email is rweigel@EideBailly.com.   Art Wiederman, CPA Well I appreciate it. And guys again, folks, I don't care who you do your financial planning with. If you got somebody good, like I say, go to them, call them. This is what I want you to do. My podcast is about a call to action to all of you to make your lives better and make your family's lives better. It's really important. If you don't have somebody you're working with or somebody you trust, you know, these guys definitely can help you, though, they're at the top of the class.   Ryan Weigel, CPA, CFP Hey, Art, I just want to say one thing real quick. If there's two things you take from this, if you don't have life insurance, I don't care who you go to, just go get some life insurance number one. Number two go get a will taken care of and then loop back. Right. Because if you die and you don't have those things, good luck. So let's take care of those. And then if you need to go do the financial plan. I would suggest doing a financial plan first and foremost. But hey, if you want to call the action, those are two things that can really help people quickly.   Art Wiederman, CPA Alright, well, I want to jump in to two or three more things that we'll have time for. Retirement plans. I mean, we've talked about SEPs and Simple IRAs and Profit-Sharing plans, Defined Benefit Plans. I mean, we don't have time to get into all of that here. But I want to go over. This is interesting. We were talking about this before we went on live here, is how much money do you need to save by the age of 65 to save one million dollars? So guys, you kind of jotted that out. So if you start at different ages, walk through starting at 25, and then 35, how much do you need to save on an annual basis say starting at 25.   Ryan Weigel, CPA, CFP So if you're, so again, to get to the illusion of a million dollars. Right. This is assuming a 10 percent rate of return. If you're 25 years old.   Art Wiederman, CPA 10 percent?   Ryan Weigel, CPA, CFP Yeah. 10 percent return. So if you think of historical equities, 10 percent. If you want to go into 60 40 it's going to be much less than that. But this is a chart that we've used.  A 25 year old, 2000 dollars a year. That's it. 2000 bucks a year for 40 years. A 35 year old is 6000 dollars a year. 300 percent of the original balance. A 45 year old, you got to jump up to 16,000 dollars a year. 55 year old, you need 60,000 dollars a year. And then lastly, obviously, if you're 65, you'll need a million bucks that one year.   Art Wiederman, CPA And would it be right if someone wanted to be more conservative and say I'm only going to earn five percent those numbers are double, right?   Ryan Weigel, CPA, CFP Absolutely. Yeah. And just so you're aware, I wouldn't go out recommending that, hey, you should have a financial plan assuming 10 percent, because good luck, especially later on in life now. And when we do talk about hurdle rates and we do financial plans for people, what is my hurdle rate that I need to get at prior to retirement? What's my hurdle rate in the future? A lot of times we're using six to seven pre-retirement and four to five post-retirement. So these numbers I. Double this for sure, absolutely.   Art Wiederman, CPA Yeah, and again, most people who are 25 years old don't get the opportunity to start saving money. When you're, doctors, you're 25. You might be in your sophomore or junior year of dental school and you're on the student poverty plan. So, again, the sooner you can get in, the sooner you get into your own practice, the sooner you have the ability. And obviously for small business owners, including dentists guys, a qualified retirement plan is absolutely the best way to go, isn't it?   Ryan Weigel, CPA, CFP Absolutely. I'm going to get, typically, when you get a tax deduction up front, to get tax deferred growth, obviously you'll have to pick up the tax later on. But there's a lot of statistics out there. On average, it seems to be that if you have a taxable account, versus a tax deferred account, your rate of return can be upwards of 10 percent per year simply because of the tax savings over the long period of time. So absolutely.   Art Wiederman, CPA Well, and again, remember, folks, that, you know, 20 to 40 percent of the doctors who retire, they don't retire because they've saved enough money and they're ready to retire. They retire because they have a physical ailment. They have back, neck, shoulders. That's why ergonomics is so important in dentistry to make sure, exercise and stretching and yoga and all these things I talk to dentists all the time about this. But I have doctors getting to 55, 60, 65 and we probably get five to 10 calls a year from our clients. Art, I just I'm starting to feel something in my hands. I'm starting to feel something in my neck. I'm afraid I'm going to make a mistake. I need to retire, not because they want to, but because they have to. And if you don't do this planning, it's just so, so important to do this.   Okay, guys, let's talk about. Because of the disclaimer you gave earlier, what were there like 20 different names? But anyway, that's OK, we have to do that for legal purposes. Let's just talk on a 35,000 foot level. I mean, today the stock market is. Alright, let's see. So we have a new vaccine now. The Dow goes up a thousand points. The president tweets something, the Dow goes down 600 points. The commissioner of Internal Revenue says this. It goes I mean, it's there's no rhyme or reason lately for what's going on. So from a high level, what are you telling doctors as far as their investment philosophy? What a plan? How do you look at this?   Ryan Weigel, CPA, CFP The first philosophy is you have to have a philosophy. Right? So that can be, I mean, that could be anything. And there's a whole bunch of different philosophies out there. Some are active, some are passive, some are factor it can be whatever you want. But you better have a philosophy, better stick to it, because just as you alluded to, the markets go up, down, sideways. But that's probably the first thing.   The next area that I always see is they don't have what I like to consider broad diversification, they don't have any diversification simply because everything is owned within my practice, which somewhat makes sense. I've got a practice that is worth money. I've got a building is worth money. I make my money from my practice. And this is, this isn't just dentists. This is any small business owner or practitioner out there. So you gotta try to start thinking about how do we shift money elsewhere out of that to alleviate that risk and increase my diversification.   Art Wiederman, CPA And diversifications, I mean, ever since I've been younger, that's what you hear is you hear it's you know, you don't put all your eggs in one basket, you diversify and you don't watch and flip out if the stock market drops. And that's another thing that kills me. Everybody says, oh, the market was down a thousand points, no 30 stocks were down a thousand points, not one of their 10,000 different types of mutual funds and stocks you can buy. And you've got the New York Stock Exchange, you've got the Nasdaq, you've got the American Stock Exchange. You've got I don't know how many different exchanges there are.   So what they talk about on the news is the Dow Jones Industrial Average, which are large cap stocks, the 30 biggest stocks. That's not the market. So what do you tell your doctors as far as you know? I mean, we get into you know, we got into 2008 and we got into I mean, talk about March, the pandemic hit. What happened to the markets? And what were you telling your clients?   Ryan Weigel, CPA, CFP Well, first thing we were doing was we're calling them, scheduling a meeting with them and looking at their financial plan. If let's just hypothetically say someone has a million dollars all invested in the market and it went down 37 percent or 40 percent. So they have 600,000 now in their account and they say, what the heck is going on here? My next question is, when do we need this money? If you're a 45 year old doc and you don't plan to retire until you're 55 or 60, you still got a long term time horizon. Right?   And even if I'm going to retire at 55 or 60, I still hope to hell you're going to live a little bit further than that. So that means I still have an even further, longer time horizon. So it gets back to this plan. And what is my goal? My goal is to invest to grow. Well then do I really care what the short term happens? If the long term is that my projection is the markets can be higher in 10 years, but I care what happens in the next month. I'm going to care. But I don't want that to blur my vision of the long term, because if I don't think it's going to be higher in 10 years, why do I have any money in it right now?   So, I mean, it gets back to just having the conversation, it also gets back to, you know, plan, I'm a big believer in a form of budget. A lot of docs that we talk to get and most people get lifestyle. More money I make, the more I spend. Right. So you don't have to have a detailed budget, I don't really care if you're spending all your money on whatever it is. But just how much do you spend. Everyone spends money on different stuff. How much do I spend? Do I have some cash on hand to be able to alleviate any issues that might come up AKA March and April or my practice might have been shut down for a little bit of time. And if that's the case so I don't know if I'm as worried about my retirement accounts again. Right. So that's what I tell my clients. Knock on wood. So far, so good.   Art Wiederman, CPA Well, a couple of rules of thumb that I've used on this podcast and my lectures in my entire life. 65/25/10 rule folks. You live on 65 percent of what you make. You're going to pay about 25 percent of your income in taxes. And what do you do with the other 10 percent? We save it. I always talk about that. Unfortunately, I get some of my clients who live on the 90/25/minus 15 rule. We talked about this yesterday, guys, they spend 90 percent of what they make. They scrimp and they go into debt for paying their taxes and they're always behind. And the IRS is not a bank you want to use. And then the other minus 15 percent is credit card debt. I mean, talk about credit card debt and the work that you guys do.   Ryan Weigel, CPA, CFP Oh, yeah, obviously, you can't out earn bad spending habits, but if you make 100,000 dollars, and you're spending 110. Good luck. You're never going get out of debt.   Well, what we typically do with credit card debt as we sit down and we might look at refis. So do I have access elsewhere to refi. Do I have a house that I could refi? I don't want to take a loan that I could pay off in three years and now extrapolate it out to 15 years. All that does is create more of an issue for most people. But do I have access to anything that can burden the amount of interest and make it lower? That's typically where we're looking. Otherwise we're getting pretty detailed within my budgeting because that all comes back to budgeting, Art.   Art Wiederman, CPA Alright, as long as I can get all the sports networks on my cable deal and I'll pay for that, as long as you let me have that, I'll let you cut back everything else.   Ryan Weigel, CPA, CFP Well, I don't know. Hulu keeps going up.   Art Wiederman, CPA OK, I want to get to a couple more things, guys. Let's talk about saving for college. Again, I've got two boys that are 26 and 31. I am so proud of both of them of course. I talk about them on the podcast, you know, and I personally saved the money myself. I didn't set up these specialized 529 plans or anything. They didn't have them back when I was getting started 30, you know, 30 years ago. But I saved them and one went to art college in San Francisco. And that's not cheap. And that was Nathan. And Forrest went to Chapman University. He went to San Jose State the first year. I was thrilled to death. I was like 12,000 dollars a year out the door, including housing and everything.   Then he transferred to Chapman University, which is one of the best universities in the world. And then I just started crying. It was real sad. And but talk about how do you recommend doctors save for college? Are you looking at 529 plans? Are you looking at municipal bonds or are you looking at just winging it? You're probably not looking at winging it, but what are you talking, what should doctors be looking at as far as saving for college?   Ryan Weigel, CPA, CFP Yeah, there's two main pieces I'm looking at. A 529 and UTMA account. Or it doesn't have to UTMA (Uniform Transfer to Minor Act) it could just be a general savings account. The reason I use those two accounts is the 529 account is going to grow tax deferred and it's going to come out tax free to the extent that I have qualified expenses. And the IRS has been pretty good lately and they've expanded those qualified expenses. Um, the downfall is if I don't, let's say my kid doesn't go to school. Let's say you start saving this thing from when they're a year old. You're very fortunate and you put a big chunk away when they when they're born. Right. You have very good practice. You throw a bunch in. And it grows for 18 years. Now you got 100,000 dollars in there and the kid doesn't go to school.   Well, now, I going to take that out, not only subject to taxation, but a 10 percent penalty. I maybe could have put it in just a other account for them. I could have put it in a UTMA account or some other form of account that is not going to have a very high tax issue because there's some kiddy tax issues and we don't want to get into that. But I can get, there's some lower limits that I can get them money income tax free. And so it's a combination of those two accounts. That's really all I look at for clients. You know, you can do ESAs, you can do some of these other ones.   But 529 account, especially early on. Later on, if they're already sixteen years old. Well, you're not going to get a whole lot of growth when you're 16, your kid's going to school at 18. No matter what you're investing in, it's too risky to put it in stock market when they're 16 and all of a sudden your 100,000 goes to 50 and that's when you need to use it, not worth it. Right. Well, it kind of depends on the time frame of the kids, but those are the two accounts that I typically always recommend.   Art Wiederman, CPA And let's just clarify UTMA ask for a Uniform Transfer to Minors Act Account, which is an account, ladies and gentlemen, that allows you as the parent, I think it's up to age 25 now. Is it 25?   Ryan Weigel, CPA, CFP I think it's still 18 or it's dependent upon the state that you're in.   Art Wiederman, CPA It allows you as the parent to put money into an account in your child's name, but you can maintain control of it. And so and then the 529 plan is a, you know, virtually every state has one. In California where I'm at it's called Scholar Share. The money is managed by TIAA CREF, which manages the teacher's retirement. But every state's got one of them. And you put the money in. And most states it's not tax deductible. And some of them for state taxes, you get a write off, federaly it's not tax deductible and the money grows tax free forever. As long as when you pull the money out, you use it for its intended purposes, which is to send the kids to college.   Well, guys, this time flies by. Unfortunately, we're getting towards the end. So last thing I want to ask is there's several things that we've talked about. What do you see in your very successful dentists as far as their financial planning and their financial plans?   Ryan Weigel, CPA, CFP Well, first off, they've got a plan, that's first and foremost right, that they've got a plan. The second thing is probably what I alluded to just a little bit ago about the markets. They think long term, they don't think short term. That the planning that we do or anybody, any successful financial planner doesn't have to be us, it can be anyone. They do a good enough job. They're thinking long term. They're trying to have you focused on the future. Right.   The other piece is they know their numbers. Now, I always tell practitioners, I don't need to know how to do a root canal, but I need to know why you're recommending a root canal to me. So I just need to trust you that you're telling me the right thing. I need to understand why we're recommending it and why we're doing it. I need to know a little bit about it, but I don't need to know how to do the actual procedure. That's why I've got you. That's why I hired you.   But they ask the questions. They know the plan. They know their numbers. And probably the last thing is they use a group of professionals. They're using an attorney to help them. They're using a CPA. They're using a form of an advisor, you name it. They're helping. They're using people that help them. So those are probably the things I would say probably the most successful practitioners do. Zach, anything you would add to that?   Zachary Schnitzler, CEPA, CLCS Yeah. And specifically on the last bullet point, I call it the round table, OK? And successful professionals are going to have an expert in each field. And I also think it's important that all of these experts are also working together. It's not just individual to the specific dentist, it's they are on your roundtable and they are working together for your financial future.   Art Wiederman, CPA So doctors, I want you to use this analogy. I've been teaching for 36 years about the fact that your patients need to trust you and you need to care about them. Well, let's think about the same analogy of you working with a financial planner or a CPA or an estate attorney or an architect or someone who's going to paint your house. I mean, maybe that's not a good analogy. But the point is, is that, you know, we all have a good meter that we can monitor people with.   Again, if you're working with somebody who, you know, and you trust with your money, you work way too hard to just not look at your investment statements and not meet with somebody. So you've got to trust the person that you work with. So think about, all the things, doctors, that you do in your practice to elicit trust from your patients and then transfer that, the professional that you're going to work with, who's going to monitor, make and monitor your financial plan and help you get to the finish line. And that's what you really, really need to be doing.   Again, this is a call to action. You know, these guys are good. I've seen their financial planning program. It's really good. There's lots of really good financial planners out there. We want to give you information on the things that you need to be talking about, the things you need to be thinking about.   So we've come to just about the end of our time, guys. So one more time, give out your contact information and then we'll wrap it up. A lot of really, really good tips. We got to pretty much all the food groups today, I think. So, Ryan, how do they get a hold of you?   Ryan Weigel, CPA, CFP Ryan Weigel, 605.225.8783 or my email is rweigel@EideBailly.com.   Art Wiederman, CPA OK, and Zach?   Zachary Schnitzler, CEPA, CLCS Yeah, Zach Schnitzler, Insurance Specialist 701.239.8567 Just for the heck of it, I'll spell out the email at zschnitzler@EideBailly.com.   Art Wiederman, CPA Well Zach, if it makes you feel any better, the state of New York spelled my name wrong on my birth certificate. They spelled Wei instead of ie. So, you know, I don't bug anybody about their names.   But guys, hey listen, thanks for taking the time, giving this really, really good information. Ladies and gentlemen, please take action. Go get your planning done. Do it for yourself. Do it for your family. Again, I don't care who you do it with. If you got a good person you're working with it. If you've got an ADCPA firm your working with. You know, if you do great. If you got them and you trust them, work with them. If you don't, you know, give these guys a call, they can they can answer your questions. You guys will do a complimentary, you know, call up front to talk about the doctor's needs and stuff like that, right?   Ryan Weigel, CPA, CFP Absolutely. Correct.   Art Wiederman, CPA Sounds good. Well, and again, ladies and gentlemen, thank you for listening to our podcast. We're now over 100 episodes. I think this is number 102. And it is an honor and a privilege to present this information to you.   I do want to again remind you to register for our webinar series, www.EideBailly.com/dentalseries. And again, we're starting December 9th with tax planning and research and development credit. We're going to have several of the best dental management consultants in the company in the country coming on. I've got Jennifer Chevalier from Fortune Management. Gary Takacs, who you don't have to tell anybody who Gary is. I've got Kiera Dent. I've got Rachel Wall, who's one of the best dental hygiene consultants in the country.   We've got several of our folks from Eide Bailly talking about, these guys are going to be back. We're going to be talking about retirement plans, student loan debt. So it's going to be a killer series. I've been wanting to do this forever. And the fact that these dental societies have given me the opportunity to do that, it's an honor and a privilege. So make sure you register for that.   Go to our partner, Decisions in Dentistry magazine www.DecisionsinDentistry.com. They have a great website with great content. Their magazine is fantastic. There are up to date on all the COVID-19 protocols and consulting on what you should be doing in your dental offices on virtually every clinical topic. Their advisory board is a who's who of dentistry, not only in this country, but in the United States. What did I just say, not only this country, but in the United States, I'll be alright. Not only in this country, but in the whole world, actually.   And if you're not working with a dental specific CPA, you know, Eide Bailly is here.  My office is in Southern California. My number is 657.279.3243. My email is awiederman@EideBailly.com.  Give us a call. Again, if you're looking for a dental specific CPA anywhere in the United States, it's www.ADCPA.org.   Okay guys, stick around when we sign off, but thank you so much for your time and your great expertise, Zach Schnitzler and Ryan Weigel, really appreciate it, from Eide Bailly. I hope we gave you some great information today on financial planning.   And again, ladies and gentlemen, we're eight months into the COVID-19 pandemic, and I'm going to give you my same five word saying that I've been using since the beginning. Failure is not an option. Go out, manage your practice, manage your team, take world class care of your patients. And we're all going to get through this. You watch the news, you see Pfizer and what was it, Pfizer and Moderna. And I believe they're the two companies. They're getting pretty darn close to having a vaccine. And it sounds really promising. And, you know, life's about hope.   So we're all going to get through this. 2021 is going to be a better year for everybody. So with that, folks, thank you again. Please tell your friends about our podcast. And this is Art Wiederman for The Art of Dental Finance and Management with Art Wiederman, CPA signing off. Thanks for listening and we'll see you next time. Bye bye.     Show Notes and Resources:   Eide Bailly’s Dental Practice Solid Financial Future for Dentists Decisions in Dentistry magazine ADCPA Planning for Financial Independence While Building Your Dental Practice Reducing Your Dependency on Insurance in Your Dental Practice (Webinar Recording)   Guest Info:   Ryan Weigel, CPA, CFP Financial Advisor rweigel@eidebailly.com   Zachary Schnitzler, CEPA, CLCS Insurance Specialist zschnitzler@eidebailly.com   Eide Bailly Financial Services   [photos on website]  

Passive Wealth Strategies for Busy Professionals
Active to Passive Investment via Syndication and 1031 Exchange with Michael Brady

Passive Wealth Strategies for Busy Professionals

Play Episode Listen Later Nov 19, 2020 26:51


Our guest for today, Michael Brady, is Real Estate lawyer and is the Executive Vice President of Madison 1031, a national Qualified Intermediary for tax-deferred Exchanges pursuant to Internal Revenue code §1031. With over 25 years of experience representing clients in commercial and residential real estate transactions, as well as a wide variety of business transactions and commercial litigation matters, and has acted as general counsel to a title insurance company. He has also helped clients defer over $1 billion in taxes during the course of his career. [00:01 – 10:20] Opening SegmentI talk briefly about great values that await you in this episodeI introduce the guest, Michael BradyMichael talks about his background and his role as a Real Estate LawyerMichael talks about the issues with the typical Syndication structure [10:21 – 20:44] Syndication and 1031 ExchangeMichael talks about the system of a 1031 ExchangeThe options for 1031 investorsHave the syndicator manage the entire project1031 investors can still be a passive investorRecommendation for setting up a 1031 investmentPrepare and do it earlyShop for prospect properties to buy before sellingConsult your accountant [20:45 – 28:10] Closing SegmentQuick break for our sponsorsWhat is the best investment you've ever made other than your education?PaddleboardRetirement InvestmentWhat is the worst investment you ever made?Investing in XybernautWhat is the most important lesson that you've learned in business and investing?Do business with good peopleConnect with Michael. See the links below. Tweetable Quotes:"It’s critical that somebody who’s looking to sell their property, should start shopping to buy the property either before or immediately upon listing their own property.” - Michael Brady“Talk to your accountant before you start to sell or plan to sell and buy a property.” - Michael Brady“I think it’s invaluable to make sure that people you do business with are good people. You wanna make sure that the people you’re doing the business with, at the end of the day, are going to do the right thing.” - Michael Brady Resources Mentioned:Madison 1031 Connect with Michael on LinkedIn and send him an email at mbrady@madison1031.com  LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or click here to listen to our previous episodes.

Stay Tuned with Preet
CAFE Insider 9/22: The Glorious RBG

Stay Tuned with Preet

Play Episode Listen Later Sep 22, 2020 62:35


In this special episode of the CAFE Insider podcast, Preet and Anne reflect on the life and legacy of Justice Ruth Bader Ginsburg, the ensuing political battle over filling the vacant SCOTUS seat, and more.  The paywall has been taken down on this episode so everyone can understand and appreciate the significance of RBG’s life and the coming confirmation fight. Preet and Anne will continue to cover this story as it develops. To listen to future episodes of the CAFE Insider podcast, and to get access to all exclusive CAFE Insider content, including the newly launched United Security and Cyber Space podcasts, try out the membership free for two weeks: www.cafe.com/insider Sign up to receive the weekly CAFE Brief newsletter, featuring analysis by Elie Honig: www.cafe.com/brief To receive an invitation to the Stay Tuned Live Cocktail Hour with all CAFE hosts, held via Zoom on Thursday, October 1 at 6:30PM ET sign up here: www.cafe.com/preet This podcast is produced by CAFE Studios.  Tamara Sepper – Executive Producer; Adam Waller – Senior Editorial Producer; Matthew Billy – Audio Producer;  Editorial Producers: Jake Kaplan, Sam Ozer-Staton, Noa Azulai, and David Kurlander  REFERENCES & SUPPLEMENTAL MATERIALS:  RUTH BADER GINSBURG Press Release Regarding Justice Ginsburg, U.S. Supreme Court, 9/18/20 “Justice Ruth Bader Ginsburg, Champion Of Gender Equality, Dies At 87,” NPR, 9/18/20 “TRIBUTE: THE LEGACY OF RUTH BADER GINSBURG AND WRP STAFF,” ACLU “The True Story of the Case Ruth Bader Ginsburg Argues in ‘On the Basis of Sex,’” Smithsonian Magazine, 12/24/18 “Ruth Bader Ginsburg, No Fan of Donald Trump, Critiques Latest Term,” NYT, 7/10/16 “Ginsburg Apologizes For ‘Ill-Advised’ Trump Comments,” NPR, 7/14/16 VIDEO: Stephen Colbert Works Out With Ruth Bader Ginsburg, 3/21/18 Case law:  Burwell v. Hobby Lobby Stores, U.S. Supreme Court, opinion & dissent, 6/30/14 Shelby County v. Holder, U.S. Supreme Court, opinion & dissent, 6/25/13 Ledbetter v. Goodyear Tire & Rubber Co., U.S. Supreme Court, opinion & dissent, 5/29/07 United States v. Virginia, U.S. Supreme Court, opinion, 6/26/1996 Frontiero v. Richardson, U.S. Supreme Court, opinion, 5/14/1973 Reed v. Reed, U.S. Supreme Court, opinion, 11/22/1971 Moritz v. Commissioner of Internal Revenue, U.S. Tax Court, opinion, 10/22/1970 SUPREME COURT VACANCY Judiciary Act of 1869 §1 “Get The Facts: What Leader McConnell Actually Said In 2016,” Senate Majority Leader Mitch McConnell, 9/19/20 “4 Reasons to Doubt Mitch McConnell’s Power,” The Atlantic, 9/20/20 “The Future Of The Affordable Care Act In A Supreme Court Without Ginsburg,” NPR, 9/21/20 “Democrats break fundraising records after Ginsburg's death,” The Hill, 9/20/20 “It took conservatives 50 years to get a reliable majority on the Supreme Court. Here are 3 reasons why,” WaPo, 6/29/18 “Trump weighs Barrett, Lagoa for Court seat,” Politico, 9/19/20 Sen. Susan Collins statement, 9/19/20 Sen. Lisa Murkowski statement, 9/20/20 Sen. Lindsey Graham tweets, 9/19/20 VIDEO: Sen. Mitch McConnell speaking to press about SCOTUS seat vacancy, 2/23/16 VIDEO: Sen. Lindsey Graham speaking at Senate Judiciary Committee Hearing, 3/10/16 VIDEO: Sen. Lindsey Graham speaking at The Atlantic Festival, 10/3/18 VIDEO: Vice President Joe Biden speaking about RBG & Court vacancy, 9/20/20  See omnystudio.com/listener for privacy information.

Phoenix Business Radio
FROM ZERO 2 REVENUE Marvin Galang with JuanTax

Phoenix Business Radio

Play Episode Listen Later Aug 14, 2020


FROM ZERO 2 REVENUE Marvin Galang with JuanTax JuanTax is the Philippine s first BIR-Accredited Tax Solution Provider under the Electronic Tax System Provider Program (eTSP) of the Bureau of Internal Revenue that was launched last December 6, 2018. JuanTax is a digitized Business to Business (B2B) tax platform that enables Accountants and Bookkeepers to automate […] The post FROM ZERO 2 REVENUE Marvin Galang with JuanTax appeared first on Business RadioX ®.

ANC Podcast
ANCalerts - July 2, 2020

ANC Podcast

Play Episode Listen Later Jul 2, 2020 14:20


PH Trade Chief mulls increasing operating capacities in some sectors under GCQRoadworthy traditional jeepneys set to resume operations on July 3Palace: Anti-terror bill up for final reviewABS-CBN: We have been issued tax clearances by Bureau of Internal Revenue for past 5 years 

Disputing Tax
Podcast: Illinois Tool Works Inc. & Subsidiaries v. Commissioner of Internal Revenue

Disputing Tax

Play Episode Listen Later Mar 11, 2020 12:45


Ropes & Gray Podcasts
Podcast: Illinois Tool Works Inc. & Subsidiaries v. Commissioner of Internal Revenue

Ropes & Gray Podcasts

Play Episode Listen Later Mar 11, 2020 12:45


LatinxAmerica's podcast
Eric Sanabria: From Coro Fellow to Internal Revenue Lead

LatinxAmerica's podcast

Play Episode Listen Later Dec 18, 2019 30:53


Eric Sanabria’s journey begins Southern California where he was raised by two immigrant Salvadorian parents.  His interest in policy led him to become a Coro fellow and this opportunity exposed him to the world of VC and tech.  At Google, he has created opportunities for himself and for the company. He shares how his path has allowed him to grow and reflect through a sabbatical he recently took in Mexico.  We also talk about his outlet - specifically his passion for music. His story was captured at LTXFEST19.

Novogradac
September 10, 2019

Novogradac

Play Episode Listen Later Sep 10, 2019


In this week's Tax Credit Tuesday Podcast, Michael J. Novogradac, CPA, talks about a plan by House Democrats to consider a continuing resolution to avoid a government shutdown at the end of this month. After that, he'll discuss Treasury and HUD's housing finance reform plans for Fannie Mae and Freddie Mac. Then, he'll share details about a long-awaited notice from HUD that revises and expands its Rental Assistance Demonstration program, followed by news on the opening of the 2019 new markets tax credit allocation round. He'll also talk about updated opportunity zones frequently asked questions, a request for comment from the Commerce Department on opportunity zones and some analysis on fiscal year 2020 fair market rents. That's followed by some brief news on Cross Refined Coal LLC and USA Refined Coal LLC vs. the Commissioner of Internal Revenue, a recent tax court ruling that may have implications for tax credit incentive investments. And, he'll close with the status of California A.B. 10, a proposal to authorize an additional $500 million in state low-income housing tax credits annually for five years.

The Simple Sophisticate - Intelligent Living Paired with Signature Style
245: 10 Ways Resilence During Good Times Can Elevate Your Everydays

The Simple Sophisticate - Intelligent Living Paired with Signature Style

Play Episode Listen Later Jan 28, 2019 33:30


"Resilence is more than bouncing back from adversity. People who are resilient keep pursuing their goals in the face of challenges. Consequently, learning how to regulate your brain's motivational machinery is a key aspect of resilence." —Rick Hanson, Ph. D, author of Resilient: How to Grown an Unshakable Core of Calm, Strength and Happiness Living well and successfully reaching our fullest potential in part resides in understanding what is and is not in our control. Once we understand what we have control over, for example, and for today's post/episode's purposes, the mind, then we need to be willing to take the time to learn how it functions and how we can use its talents to enhance the overall quality of our lives. Dr. Rick Hanson shares in the introduction of his book Resilience that "the brain is continually remodeling itself as you learn from your experiences. When you repeatedly stimulate a 'circuit' in your brain, you strengthen it." After reading his book, which is organized by the needs we have as human beings - safety, satisfaction and connection - readers discover the skills, and then the tools to build those skills to build our resilience. "True resilience fosters well-being, an underlying sense of happiness, love and peace." And in order to foster the sense of each of them and hardwire them into our being, we need to experience them, seek them out and consciously savor them so as to remember how to live each day consciously as we build a life we love living each day. Hanson asserts and I have to certainly agree, when we practice and improve our resilience in good times or seemingly benign moments in our everyday lives, we "will feel less anxiety and irritation, less disappointment and frustration and less loneliness, hurt and resentment. And when the waves of life come at you, you'll meet them with more peace, contentment and love in the core of your being." So let's start by looking at our everyday lives and discovering how we can strengthen the muscle, the skill, that is resilience. 1.Take care of your own well-being first "Being good to yourself is good for others. When people increase their own well-being, they usually become more patient, cooperative, and caring in their relationships." We can only give our best selves when we care for ourselves well. When our needs are met, we can help others who are in need of generosity, understanding and patience. Read/Listen to episode #242 for 31 Ways to Practice True Self-Care. 2. Notice and savor enjoyable moments Creating the habit of being self-compassionate is a learned skill. And with any skill, it takes conscious effort and repetition to habituate the skill into our default systems. Hanson advises, "Once you're having [an enjoyable] experience, feel it as fully as possible and take a little time —a breath or two or ten — to stay with it. The more often you do this, the more you will tend to hardwire psychological resources for yourself." Once you have strengthened this skill, you will be better able to utilize it during difficult as well as joyous times. ~Learn more about self-compassion and how to cultivate it in episode #122 3. Welcome Enjoyable Moments into Each Day Conscious living is thoughtful living to pay close attention to how our days are constructed. Now this doesn't mean we have to plan every minute of the day and it doesn't mean everything must be nose-to-the-grindstone work or striving for nothing but perfection. What Hanson encourages is to understand and find what is enjoyable about the tasks you both want to do and have to do. Completing a project at work for example, while the entire task may not be enjoyable, ask yourself, what is and focus on that. In so doing, you are more engaged, more attentive and more likely to give your best and have a more positive outcome. On the flipside, for those activities you enjoy, make sure you partake in them regularly and savor the enjoyment you derive from doing so. Each time you focus on the reward, the enjoyable part, the brain releases dopamine, norepinephrine and natural opioids which then prioritizes in your mind what actions it wants to continue to pursue unconsciously. So essentially, you are beginning to hardwire your brain for wanting to do things that you consciously know will add quality to your life whether the enjoyment comes from have-to tasks or want-to tasks. 4. Repeat the superpowers you want to be part of your brain's hardwiring "The more [neurons] fire together, the more they wire together. In essence, you develop psychological resources by having sustained and repeated experiences of them that are turned into durable changes in your brain." Hanson shares that our character strengths, mood, skillful ways, outlook, good habits, etc. are predominantly learned as only one-third are innate in our DNA. The remaining two-thirds are acquired through learning. This is good news, but it also means we have a massive responsibility in recognizing that we are who we either consciously or unconsciously choose to become. As Hanson coins, "who we learn to be". 5. Encourage Beneficial Experiences "See the jewels around you." The brain's negativity bias is programmed to protect us, and so it will bring to the forefront, if we aren't the master of our mind, all the negative in our days. However, when we understand why the brain is doing this, we can counteract it by seeking out, observing, savoring and incorporate more positive little moments into our day. From savoring your breakfast or that cold glass of water, observing the beauty of the day, or the happy step of your pup as you head out for your walk, when we pay attention to the good experiences, we are nurturing our well-being. Why? Because if we are regularly letting the negative take the stage of our attention, there is "wear and tear on your body and mind". 6. Understand the essence of learning What we learn, we become, and since two-thirds of who we become is learned, knowing how to learn is essential, so we can do it well and learn what will improve the quality of our everyday and overall lives. Hanson's acrynom for learning is HEAL (H - Have a beneficial experience; E - Enrich it, A - Absorb it; and finally, L — Link it to replace or soothe painful material). The first three steps are the essence of learning. With that said, we need to live consciously. We need to choose experiences that are beneficial or have the potential to be beneficial. To enrich each of these beneficial experiences, we need to be fully present, taking everything in, slowing down, looking for something we had not seen if we are experiencing something beyond the first time, and then become clear as to why the experience is valuable to you. (a more detailed list regarding how to enrich experiences is hared on page 58 of Hanson's book). Once we have enriched it, we need to savor the experience, or absorb it. To be clear, and Hanson points this out and I think this is vitally important to not misunderstand: Absorbing doesn't mean hanging on, clinging and not letting go. In fact, you are letting it go because you were never holding on to it, just noticing it, being present with the experience and appreciating it. Absorbing has to do with letting yourself feel good, letting yourself bask in the warmth of what has been part of your experience and in your own way, letting it become a part of you. Experiences can stay with us forever. Make sure the experiences that stick are wants that truly jewels. 7. "Let the Flowers Pull the Weeds" I love this analogy, and the neurology behind the concept demonstrates how we can rewire our mind to reframe or eliminate negative thoughts and unhelpful attitudes about life and replace them with beneficial ones. Hanson points out that practicing mindfulness will be a helpful tool to be able to grow flowers whilst bringing as well to your attention the weed you want to replace. Because when you are able to hold two thoughts simultaneously, it is then that the good can begin to replace the negative, as you are able to recognize that good that is true and begin to chip away at was no longer serving you. 8. Be Mindful of The Self-Critic and Strengthen the Inner Nurturer "There are two different attitudes or 'voices' inside us all, one that is nurturing and another that is critical, one that lifts up and one that weighs down. This is perfectly normal. The inner nurturer brings self-compassion and encouragement. The inner critic helps you recognize where you've gone wrong and what you need to do to set things right . . . for most people, the inner critic goes way overboard . . . it's big and powerful, while the inner nurturer is small and ineffective, which wears down mood, self-worth and resilience." The inner critic needs to be kept in check, and this can be hard to do when moments in life, people in our lives become frustrating or hard to work with. We can be excessively harsh on ourselves which is why in such moments, we especially need to have a strong inner nurturer. A simple truth to keep in mind is that overtime those of us who allow our inner critic to run rampant are actually less productive in what we are critical about, and ultimately, that bleeds into our overall quality of life the elevation of living well we are able to reach. 9. Practice "liking" more and "wanting" less "The root of [wanting] means 'lack'. It's natural to like things that are pleasurable, such as a sweet dessert with friends. But issues arise as we move from liking to wanting, from enjoying a meal together to insisting on the last piece of pie." When we let our "auto-wanting" take control, we are pulled from the present, we are infusing our minds with the belief that we are not enough or what we already have is not enough. This is draining physically and potentially financially. Instead, practice appreciating - window shopping, so to speak. Whenever you feel "any sense of pressure, compulsion or 'must-ness'", take a breath, recenter yourself and remind yourself that the advertisers are doing their job, but you can still appreciate the beauty, goodness, awesomeness, etc. without funding their cause. This is where the skill of being content will help tremendously. As was shared last week, in episode #244, contentment can be felt everyday, all day, as contentment is not dependent upon external sources. And when we are able to be content, it becomes easier to 'like' versus 'want'. 10. Healthy Intimacy Begins with Healthy Personal Autonomy "Paradoxically, in order to get the most out of 'we', you need to stay centered in 'me'." Intimacy as it appears in our lives can be cultivated with mere acquaintences as well as a romantic partner of 50 years. As defined in the book, intimacy is "to make familiar or known". And the knowledge of self and security within oneself is the foundation. Because when you are confident that you are able to take care of yourself, you can step forward to be engaged with others, knowing your limits, knowing your boundaries. And if necessary, knowing that if the limits or boundaries are not respected, you can step back and take care of yourself well. With the relationshps you begin to build or relationships you are currently in, assess if you are able to do the following things: fully express your thoughts and feelings ask for what you want trust your judgment if others disagree with you stand up to others If you are unable or were unable in past relationships that no longer are a part of your life, you may recognize you do not have full personal autonomy in that particular relationship. These may be relationships you either now recognize need to be stepped away from as you now can pinpoint why they don't feel right, or, if it is only one of the items on the list, you have a specific focus you can bring up to try to improve the relationship. "Much as autonomy enables intimacy, intimacy supports autonomy. Close and nurturing relationships help a person feel safe and worthy as an individual, which promotes a confident independent. In a positive cycle, autonomy and intimacy feed each other. Together, they make you more resilient." Moving forward, keep these abilities in mind as you should be able to exercise all four in a healthy relationship as too should the other person with you in the relationship, thus embodying the paradox shared in the above quote. We often hear the word "resilence" uttered during times of strife or hardship, but the truth is, as Dr. Rick Hanson points out, strengthening the tool or skill of resilience can elevate the quality of our everyday lives in all of the good moments that we have as well. As is often discussed here on TSLL and on the podcast, our mind is an amazing mechanism, and to understand how it works, have patience with the rewiring process if we are choosing to do so, can yield awesome outcomes for our life, enriching the journey and lead us where we truly want to go. Petit Plaisir —On the Basis of Sex ~Felicity Jones stars as Justice Ruth Bader-Ginsburg and Armie Hammer stars as her husband Marty Ginsburg screenwriter Daniel Stiepleman is Ginsburg's nephew wrote the script which was then approved by Ginsburg's daughter, Jane, a prominent figure in the legal world and in the film as well - she is currently a professor of law at Columbia University Ginsburg was one of just nine women in the Class of 1956 The question posed to the 9 women at their welcome dinner by the dean, played by Sam Waterston was verbatim what was said. When Marty was diagnosised with testicular cancer during his third year of law school, Ruth did collect notes from his friends and typed up his essays as he dictated them—a process that often began near midnight. When he finished around 2 a.m., she would turn to her own coursework. Regarding the case - Moritz v. Commissioner of Internal Revenue - While the legal side of Moritz’s case is accurate, Ruth didn’t fly to Denver to meet with him. It was Marty who made first contact, and he didn’t do so face to face. According to Ginsburg herself, “We met Charles E. Moritz for the first time in the fall of 1971, the night before the argument. He took us to dinner in Denver. He had to hire a babysitter for his mother.” Source for more details regarding the film and history from Slate.com https://youtu.be/28dHbIR_NB4 https://youtu.be/tYH9KJ_T6XM

Disputing Tax
Grecian Magnesite Mining v Commissioner of Internal Revenue

Disputing Tax

Play Episode Listen Later Nov 14, 2018 27:33


Ropes & Gray Podcasts
Grecian Magnesite Mining v Commissioner of Internal Revenue

Ropes & Gray Podcasts

Play Episode Listen Later Nov 14, 2018 27:33


Ropes & Gray Podcasts
Lender Management LLC v. Commissioner of Internal Revenue

Ropes & Gray Podcasts

Play Episode Listen Later Apr 23, 2018 16:17


Disputing Tax
Lender Management LLC v. Commissioner of Internal Revenue

Disputing Tax

Play Episode Listen Later Apr 23, 2018 16:17


Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services
0240: Construction Accounting Secrets For New Contractors

Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services

Play Episode Listen Later Oct 27, 2017 31:19


  This Podcast Is Episode Number 0240 And It Will Be About Construction Accounting Secrets For New Contractors Construction Accounting Basics For Construction Contractors Construction Accounting is not a natural mindset for Construction Contractors. Construction Accounting has own language. Regular Accounting the language is Income Minus Expenses Equals Net Profit. Construction Accounting is Income Minus Cost of Goods Minus Overhead Equals Net Profit. That simple little thing called Cost of Goods Sold is the primary difference between Regular Accounting and Construction Accounting. Understanding that difference and how it relates to Job Costing and Job Profitability can get contractors like you firmly on the road to financial freedom. Then comes Construction Accounting. Income is added up to have Total Income. Cost of Goods Sold included more than the cost of material. Total Income less Total of Cost of Goods Sold equals Gross Profit.   Expenses include a variety of overhead related items. Gross Profit less Total Expenses equals Net Ordinary Income.   Net Ordinary Income Plus Other Income and Less Other Expenses equals Net Income. Financial Reports have a lot of information on them. Your tax accountant will calculate the depreciation. When a contractor purchases a small tool, and it is an expense. What determines whether a tool is an asset or expense is the cost of the tool (not its size of the tool or piece of equipment) Any tool or equipment that costs less than Five Hundred Dollars is considered an expense. The Internal Revenue Service expects that it will last less than one year and not repairable or the cost of purchasing a new tool will be less than the cost to repair it most of the time it is not feasible to repair. These days it is hard to find anyone who can do repairs on small tools. The neighborhood hardware store is usually a True Value Hardware or Ace Hardware. I can only think of a few larger Hardware Store that might send the tool out for repairs. Smaller communities may have repairs as a common option.        As a contractor you may purchase a tiny tool (in size) but huge in price meaning it cost over Five Hundred Dollars.  These type of tools need to be depreciated. Congress approves an accelerated depreciation (Section 179) where most items can be depreciated at a 100% in a single year. This benefits small contractors as the annual threshold is usually higher than they spend on tools and equipment. Each of these larger tools needs to be listed in the Accounting Software (we use QuickBooks Desktop In the Cloud) and we can setup QuickBooks for Contractors in a way that makes it fast and easy for the day to day contractor bookkeeping to get done. Why – Because the Tax Accountant decides on what can group and which tools and equipment need to be itemized individually. The rules differ depending on the item on how much can be depreciated on a single line and which items may have internal caps.   Short Answer - In other words, How many lines and How many pages does it take to get to 100%. If taking all of the depreciation available does not make sense to take it a single year the Tax Accountant may decide to use traditional depreciation rules. Using the thought that if taking 100% of the available depreciation doesn’t help you – don’t waste the depreciation deduction. Spread it out over several years. What is Cost of Goods Sold In Construction Accounting? Contractors often ask us can they buy our Chart of Accounts with Cost of Goods Sold and import them into their QuickBooks Desktop file or their QuickBooks Online file. The answer is yes! Click Here for QuickBooks Desktop Chart of Accounts With Cost of Goods Sold Click Here for QuickBooks Online Chart of Accounts With Cost of Goods Sold Direct Costs are tied to the jobs (field labor, material, and other cost items) Office material (pencils, paper, toner, etc. are overhead) Yes, an Accountant could say these many pencils are used in the field, and that notepad is used in the truck. The answer is the dividing line of what the DIRECT COSTS to the job and those are Cost of goods sold (COGS). Confusion always comes about the material. A Construction Contractor may purchase material and resell it to their customer at cost. Thereby thinking it is a reimbursable expense. (Lose money when doing this).   Remember all invoices to the Customer (Retail, General Contractor, Spec Builder, Developer) is income.  Washington State has a clear explanation. If the words are on the invoice, then the invoice is either taxable or non-taxable based on other factors. Every line item on a customer invoice is All INCOME.   Purchases for the material are Cost Of Goods Sold or are expenses if you are shortcutting your accounting. I have seen financial statements that are backed out because they will reflect reimbursable income as a negative number and thereby show it as a deduction. (Net effect is double dipping on the expense side) The cause is the accounting software like QuickBooks is not properly set up. We fix bad QuickBooks Setup For Construction Contractors.   New Construction Home Building is another area of confusion.   In the mind of many Construction Contractors, a Spec home is any new house that is being built for resale. That is true; it is a New Construction House. The question is on the Construction Accounting side. For the Owner and Developer (who might be the General Contractor running the job) it is a Spec Home. For the General Contractor who is building a New Construction Home for a Developer, it is NOT a Spec Home. Why it might seem the same as both are New Construction Houses. Question to be answered is Who owns the house?  It is a Spec House in the Accounting System for THE OWNER.     If the General Contractor Does Not Own the house then from an accounting side for that specific General Contractor, the house is a Custom Home who has an owner who is Not The General Contractor.   If the General Contractor, Developer who Owns the new House being built then it is a Spec House in the Accounting System. All costs roll up into WIP and covert to COGS when the house is sold not before. Recognize expenses when the house sells. Otherwise, expenses one year; sale the next equals TAXES.    In Washington State, all Construction Contractors working for a Spec Builder need to collect sales tax on all services (labor and material) when billed from the General and Trade Construction Contractors.     In Washington State, all Construction Contractors working on a Custom Home, Residential or Commercial Projects, Large or Small Remodels, Handyman Projects can accept reseller permit from the General Contractor.  Sales Tax is billed and collected from the Owner by the General Contractor.   In Washington State, Contractors need to collect sales tax on all retail project including Labor, Material, Other. Sales tax must be collected on every line item. Customer Discounts can be given for any reason. One quick word about hiring subcontractors. Make sure they are licensed and bonded based on the rules of your state. Review and make sure you are not their only customer. As Construction Contractor, you Do Not Want for any Government Agency (State or Federal) to re-classify them as your employee. Government Agencies share names, and there are Payroll taxes for everyone.   Part of rules, a 1099 Contractor must work for more than one person or company. Get a signed W-9. Internal Revenue wants to have 1099’s issued for everyone who received over six hundred dollars in a single calendar year. If you have employees, Use a payroll service that will electronically file Quarterly and Annual Returns.  Many will also file the 1099’s. Keep your reporting simple and easy. Easier to prove you filed on time. Having an outside Construction Accountant makes meeting the rules as a contractor versus an employee easier. Fast Easy Accounting does the bookkeeping, accounting, payroll and offers business coaching for small, brand new Construction Contractors who are General Contractors, Trade Contractors, and Handyman all across the USA including Alaska and Hawaii. Do the parts that only you can do; leave the rest to us.   You are never too small for us to help and we can help beginning with your first day in business.    Looking forward to being of assistance.   Trick Or Treat – Happy Halloween See you at the Mall – Our Fun Place to watch all the kids from newborns to over xxx (shhh I can’t count that high) filled with the Kids At Heart dressed up in cute, funny costumes. Food Court has the best view. It is one of the few days everyone gets to have fun no matter how old they are the rest of the year.        Enjoy your day.   About The Author: https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person. We Remove Contractor's Unique Paperwork Frustrations We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company! That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast  www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance. You Deserve To Be Wealthy Because You Bring Value To Other People's Lives! I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com Contractor Bookkeeping Done For You! Thinking About Outsourcing Your Contractors Bookkeeping Services? Click On The Link Below: www.FastEasyAccounting.com/hs This guide will help you learn what to look for in outsourced construction accounting. Need Help Now? Call Sharie 206-361-3950 sharie@fasteasyaccounting.com Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast. Enjoy your day.     Sharie About The Author: https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com Our Workflow Removes Your Paperwork Frustrations For Contractors Who Prefer To Do Your Bookkeeping Fast Easy Accounting Do-It-Yourself Construction Accounting Store Is Open Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways: #1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar And QuickBooks Does Not Work The Way They Want It Too! The Answer: #1 Click Here To Buy An Entire QuickBooks Setup For Your Specific Contracting Company #2 Click Here To Buy Just The Chart Of Accounts For Your Specific Contracting Company   Short List Of Construction Contractors We Serve Asphalt ContractorAsphalt Contractor Brand New ContractorBrand New ContractorBrick And Stone ContractorBrick And Stone ContractorCabinet Installation ContractorCabinet Installation ContractorCarpentry ContractorCarpentry ContractorCarpet And Tile ContractorCarpet And Tile ContractorCommercial Tenant Improvement ContractorCommercial Tenant Improvement ContractorConcrete ContractorConcrete ContractorConstruction EmployeesConstruction EmployeesConstruction ManagerConstruction ManagerConstruction Support SpecialistConstruction Support SpecialistCustom Deck ContractorCustom Deck ContractorCustom Home BuilderCustom Home BuilderDemolition ContractorDemolition ContractorDrywall ContractorDrywall ContractorElectrical ContractorElectrical ContractorEmerging ContractorEmerging ContractorExcavation ContractorExcavation ContractorFinish Millwork ContractorFinish Millwork ContractorFlipper House ContractorFlipper House ContractorFlooring ContractorFlooring ContractorFoundation ContractorFoundation ContractorFraming ContractorFraming ContractorGeneral ContractorGeneral ContractorGlass Installation ContractorGlass Installation ContractorGutter ContractorGutter ContractorHandyman ContractorHandyman ContractorHot Tub ContractorHot Tub ContractorHVAC ContractorHVAC ContractorInsulation ContractorInsulation ContractorInterior Designer ContractorInterior Designer ContractorLand Development ContractorLand Development ContractorLandscape ContractorLandscape ContractorLawn And Yard Maintenance ContractorLawn And Yard Maintenance ContractorMasonry ContractorMasonry ContractorMold Remediation ContractorMold Remediation ContractorMoss Removal ContractorMoss Removal ContractorPainting ContractorPainting ContractorPlaster ContractorPlaster ContractorPlaster And Stucco ContractorPlaster And Stucco ContractorPlumbing ContractorPlumbing ContractorPressure Washing ContractorPressure Washing ContractorRemodel ContractorRemodel ContractorRenovation ContractorRenovation ContractorRestoration ContractorRestoration ContractorRoofing ContractorRoofing ContractorSiding ContractorSiding ContractorSpec Home BuilderSpec Home BuilderSpecialty ContractorSpecialty ContractorStone Mason ContractorStone Mason ContractorStucco ContractorStucco ContractorSubcontractorSubcontractorSwimming Pool ContractorSwimming Pool ContractorSwimming Pool And Hot Tub ContractorSwimming Pool And Hot Tub ContractorTile And Carpet ContractorTile And Carpet ContractorTrade ContractorTrade ContractorTree ContractorTree ContractorUnderground ContractorUnderground ContractorUtility ContractorUtility ContractorWaterproofing ContractorWaterproofing ContractorWindow ContractorWindow Contractor Additional QuickBooks Templates, Resources, And Services QuickBooks Set Up TemplatesSolopreneurQuickBooks Chart Of AccountsFree StuffQuickBooks Item Lists TemplatesConsulting We Serve Over 100 Types Of Contractors So If Your Type Of Company Is Not Listed Please Do Not Be Concerned Because If You Are A Contractor There Is A Good Chance We Can Help You! Call Now: 206-361-3950   Additional QuickBooks Templates, Resources, And Services QuickBooks Set Up Templates   Solopreneur QuickBooks Chart Of Accounts     Free Stuff QuickBooks Item Lists Templates     Consulting   We Serve Over 100 Types Of Contractors So If Your Type Of Company Is Not Listed Please Do Not Be Concerned Because If You Are A Contractor There Is A Good Chance We Can Help You! Call Now: 206-361-3950 If you are a blogger, who writes about construction we would like to hear from you. https://www.fasteasyaccounting.com/guestblogger                                                                                                 Contractors_Success_MAP, Contractors_Success_Marketing_Accounting_Production, Contractor_Bookkeeping_Services, QuickBooks_For_Contractors, QuickBooks_For_Contractors,Contractors_Success_Map_Construction_Accounting_Secrets_For_New_Contractors  

Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services
0238: Contractors Reflect On This Year's Results As The Last Quarter Begins

Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services

Play Episode Listen Later Oct 13, 2017 16:56


This Podcast Is Episode Number 0228, And It Will Be About Unique Ways Highly Profitable Contractors Reduce Taxes Contractors Reflect On This Year's Results As The Last Quarter Begins Going into the last Quarter of the year. Time for some basic reflection about taxes. Officers in S-Corps tend to take payroll later in the year. Now is the time if you have not already been taking payroll. Don't wait until it is time to prepare your Construction Company tax return. Next review your Estimated personal Taxes paid to the IRS. How much did you pay in taxes for the current year? Internal Revenue expects that you have paid a percentage Federal Taxes before the end of the year.   Reviewing Federal Withholding for yourself and your employees to avoid surprises when your annual taxes are filed. Contractors who file as a Sole Prop or as an LLC fining as a Sole Prop tend to forget that payroll taxes on their net income is due. I call this “Chef’s Surprise” as it is based on Net Income. Everyone wants the last few jobs to pay before the end of the year. As the Sole Prop or 1099 Contractor, the amount due will be both the employer and employee portions (combined is 15.3% + federal income taxes) Refer to your Tax Accountant about the ability to claim the employer portion as a deduction on your taxes. Time for some basic reflection about your bookkeeping methods How are you keeping track of your income and expenses? Do you use software or on a paper system? Many Contractors use Shoeboxes, Cardboard Boxes and paper bags The issue comes when your Banker, Liability Insurance Company, Worker’s Comp Insurance Company, Bonding Company or State Agency or Internal Revenue want reports. I have seen some manual systems that are quite good. I remember the days pre-computer days where I used an oversized 13 Column Pad. It worked, not a great as the multiple ledgers and from there that first version of Quicken was wonderful. Now using QuickBooks which can be customized is fantastic. Being in Washington State where sales tax is destination based – customization is the key to easy reporting.  Other states have different reporting requirements. Additional reflection is needed when multiple partners are involved Is it an active partner or someone who is behind the scenes (investment versus day-to-day activities)?  Is each partner doing what you expect them to do?  There are additional challenges when multiple partners are not actively engaged.  The net profit is divided based on the percentage of ownership. Many times, partners have different visions for the company. Growth Of The Company (How Big, How Fast) How Much Money To Take Out of Company Reinvestment Of Profits Into The Company Should They Add A Vehicle (new or used) What Tools And Equipment To Purchase Compensation For Employees Compensation For Owners Decisions Happen Every Minute For Working Construction Contractors The most frustrating situation happens when one partner is actively working in the day-to-day activities, and the other partner is a “Manager” and is practicing “Seagull Management” but is never there for the day-to-day activities. It is easy to say I’m working on the business.  Reality is that it may not have the same meaning to all partners.  Working on the business is Planning, Marketing, Doing Active Things in the business.  I have heard many stories where One Partner tells the other partner (while managing from afar) You need to be doing [fill in the blank] The sales are not that high you have plenty of time The paperwork is not that much; it will only take you 10 -15 minutes [a week, a month] to do it Or saying “After The Fact: that decisions you made were not the ones I would have made. It is easy for the person Not Doing The Work - to say, we (Meaning YOU) what should or should not have done [fill in the blank]. This happens a lot when partners are not in the same city. Or to say I can’t because you are better at [fill in the blank]. The last thing you need is for someone else to assign you a task to do. As a Construction Contractor, there is no shortage of “tasks to do” in running your Contracting Business.   These sort of challenges is one of the reasons we recommend being an S-Corp. It is easier to have a business relationship with someone that is something other than a 50-50%. It is by EXCEPTION that multiple partners will be equally invested in the company. (Time, Money and Effort). Usually, the Construction Company is weighted with one partner doing more, spending additional hours in the Construction Side of the Work to bring in the money or save on employee hours. Many times, that same partner is asking their spouse to pitch in and do the bookkeeping without pay because it will benefit them in the long run. Then it becomes two people actively working in the business for the financial benefit of one. If spouses are paid on payroll – they are valued. (It can be the gesture more than the money) As an S-Corp owner’s payroll will better reflect activity in the business. Life Happens! If one of the owners is working fewer hours due to personal reasons; there is compensation that can be more easily given to the other working owners above and beyond the net profit of the company. Easier to facilitate a Loan To Shareholder as needed. When you discuss in the beginning, it Saves “White Noise” and “Hard Feelings.” later. Years ago; I read a book that described how one partner was very upfront in saying. Why should I work so hard when I know you will? I can just sit back and get my share of the profits without doing much of anything! (not an exact quote) It was just a story, but a few times when meeting with Construction Partners that attitude has come through. Not all partnerships have problems. I know of several who have been friends and partners for decades. Partners discussed their roles and how to work together. It is awesome! I am always glad to talk to them and catch up. The Rest Of The Year Will Go By Fast Halloween Is Almost Here It Is Time To Review Your Current Year Construction Accounting How are you currently handling your bookkeeping? If you are comfortable Doing It Yourself and just want a little TLC - we can help.  Additional resources are on FastEasyAccount.com (website) and FastEasyAccountingStore.com (store) We accept all major credit cards and PayPal. Also available PayPal credit offers six months same as cash. We Help A Little Or A Lot Depending On Your Needs. Do you want to explore a QuickBooks file cleanup, or discuss Outsourced Accounting? Offer One Hour Free Consulting. Sometimes Contractors use just to vent about business stuff, and for a variety of reasons, all I can do is be the ear on the end of the phone and offer suggestions. Never am I going to be nasty about your bookkeeping no matter how “icky or artistic” you have been. We are here to help with your assistance we can create a file with good reports that are useful to you. Remember your financials are based on the documents you provide in person, electrically, or by using our document management system. Unfortunately, many tools used on Star Trek are still not available. Year-End Planning Tip: As the economy and your cash flow is improving, do you have all the tools and equipment you want or need? If purchases are made before December 31st, it is a deduction for the current year. Looking forward to being of assistance.  About The Author: https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person. We Remove Contractor's Unique Paperwork Frustrations We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company! That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast  www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance. You Deserve To Be Wealthy Because You Bring Value To Other People's Lives! I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com Contractor Bookkeeping Done For You! Thinking About Outsourcing Your Contractors Bookkeeping Services? Click On The Link Below: www.FastEasyAccounting.com/hs This guide will help you learn what to look for in outsourced construction accounting. Need Help Now? Call Sharie 206-361-3950 sharie@fasteasyaccounting.com Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast. Enjoy your day.     Sharie About The Author: https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com Our Workflow Removes Your Paperwork Frustrations For Contractors Who Prefer To Do Your Bookkeeping Fast Easy Accounting Do-It-Yourself Construction Accounting Store Is Open Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways: #1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar And QuickBooks Does Not Work The Way They Want It Too! The Answer: #1 Click Here To Buy An Entire QuickBooks Setup For Your Specific Contracting Company #2 Click Here To Buy Just The Chart Of Accounts For Your Specific Contracting Company   Short List Of Construction Contractors We Serve Asphalt ContractorAsphalt Contractor Brand New ContractorBrand New ContractorBrick And Stone ContractorBrick And Stone ContractorCabinet Installation ContractorCabinet Installation ContractorCarpentry ContractorCarpentry ContractorCarpet And Tile ContractorCarpet And Tile ContractorCommercial Tenant Improvement ContractorCommercial Tenant Improvement ContractorConcrete ContractorConcrete ContractorConstruction EmployeesConstruction EmployeesConstruction ManagerConstruction ManagerConstruction Support SpecialistConstruction Support SpecialistCustom Deck ContractorCustom Deck ContractorCustom Home BuilderCustom Home BuilderDemolition ContractorDemolition ContractorDrywall ContractorDrywall ContractorElectrical ContractorElectrical ContractorEmerging ContractorEmerging ContractorExcavation ContractorExcavation ContractorFinish Millwork ContractorFinish Millwork ContractorFlipper House ContractorFlipper House ContractorFlooring ContractorFlooring ContractorFoundation ContractorFoundation ContractorFraming ContractorFraming ContractorGeneral ContractorGeneral ContractorGlass Installation ContractorGlass Installation ContractorGutter ContractorGutter ContractorHandyman ContractorHandyman ContractorHot Tub ContractorHot Tub ContractorHVAC ContractorHVAC ContractorInsulation ContractorInsulation ContractorInterior Designer ContractorInterior Designer ContractorLand Development ContractorLand Development ContractorLandscape ContractorLandscape ContractorLawn And Yard Maintenance ContractorLawn And Yard Maintenance ContractorMasonry ContractorMasonry ContractorMold Remediation ContractorMold Remediation ContractorMoss Removal ContractorMoss Removal ContractorPainting ContractorPainting ContractorPlaster ContractorPlaster ContractorPlaster And Stucco ContractorPlaster And Stucco ContractorPlumbing ContractorPlumbing ContractorPressure Washing ContractorPressure Washing ContractorRemodel ContractorRemodel ContractorRenovation ContractorRenovation ContractorRestoration ContractorRestoration ContractorRoofing ContractorRoofing ContractorSiding ContractorSiding ContractorSpec Home BuilderSpec Home BuilderSpecialty ContractorSpecialty ContractorStone Mason ContractorStone Mason ContractorStucco ContractorStucco ContractorSubcontractorSubcontractorSwimming Pool ContractorSwimming Pool ContractorSwimming Pool And Hot Tub ContractorSwimming Pool And Hot Tub ContractorTile And Carpet ContractorTile And Carpet ContractorTrade ContractorTrade ContractorTree ContractorTree ContractorUnderground ContractorUnderground ContractorUtility ContractorUtility ContractorWaterproofing ContractorWaterproofing ContractorWindow ContractorWindow Contractor Additional QuickBooks Templates, Resources, And Services QuickBooks Set Up TemplatesSolopreneurQuickBooks Chart Of AccountsFree StuffQuickBooks Item Lists TemplatesConsulting We Serve Over 100 Types Of Contractors So If Your Type Of Company Is Not Listed Please Do Not Be Concerned Because If You Are A Contractor There Is A Good Chance We Can Help You! Call Now: 206-361-3950   Additional QuickBooks Templates, Resources, And Services QuickBooks Set Up Templates   Solopreneur QuickBooks Chart Of Accounts     Free Stuff QuickBooks Item Lists Templates     Consulting   We Serve Over 100 Types Of Contractors So If Your Type Of Company Is Not Listed Please Do Not Be Concerned Because If You Are A Contractor There Is A Good Chance We Can Help You! Call Now: 206-361-3950 If you are a blogger, who writes about construction we would like to hear from you. https://www.fasteasyaccounting.com/guestblogger                                                                 Contractors_Success_MAP, Contractors_Success_Marketing_Accounting_Production, Contractor_Bookkeeping_Services, QuickBooks_For_Contractors, QuickBooks_For_Contractors,Contractors_Success_Map_Unique_Ways_Highly_Profitable_Contractors_Reduce_Taxes

BankBosun Podcast | Banking Risk Management | Banking Executive Podcast
IRA Alternative Asset Choices: Not Your Parent’s IRA! Kirk Chisholm, Part 2

BankBosun Podcast | Banking Risk Management | Banking Executive Podcast

Play Episode Listen Later Aug 13, 2017 23:45


"Stand your ground. Do not fire unless you are fired upon, but if they mean war, let it begin here." 1775, Battle of Lexington and Concord, Captain Parker Intro: Kelly Coughlin is CEO of BankBosun, a management consulting firm helping bank C Level Officers navigate risk and discover reward. He is the host of the syndicated audio podcast, BankBosun.com. Kelly brings over 25 years of experience with companies like PWC, Lloyds Bank, and Merrill Lynch. On the podcast, Kelly interviews key executives in the banking ecosystem to provide bank C-Suite officers risk management, technology, and investment ideas and solutions to help them navigate risks and discover reward. And now your host, Kelly Coughlin. Kelly Coughlin: This is part-two of my interview with Kirk Chisholm, a wealth manager with innovativewealth.com and the Innovative Advisory Group in Lexington, Massachusetts. Kirk, are you still on the line? Kirk Chisholm: I'm still here, Kelly. Kelly Coughlin: Great. Kirk, let's talk about Lexington. That's a famous town in American early Republic history. Kirk Chisholm: Yes, it is. We are surrounded by our country’s heritage. I'm actually surprised at how few people, where I say where I'm from, who actually point that out. I appreciate you pointing that out. Kelly Coughlin: I love early Republic history and Revolutionary War stuff. I have since I was in fifth grade, I think. Kirk Chisholm: We have a lot of that in Boston, too. It's all over the place. It's really interesting. I think living here, we don’t appreciate the heritage that surrounds us everywhere. I walk around the city and I see it, but I don’t always appreciate it, because we're surrounded by it every day. It's nice, especially times like the 4th of July, when they have the parades in Lexington. It's nice. Nice thing to bring you back to the way things used to be hundreds of years ago. Kelly Coughlin: Well, Kirk, just to get caught up here. In our first interview, we talked about more of the mechanics of IRA custodians and trustees in the alternative space. While it's a topic that I think tends to be a bit of a boring topic, the work that you've done in this space is very impressive. Since our first interview, I've dug into more of what you've put out, and I would highly recommend that people that are interested in this space go in and get your publication, Ultimate Insider’s Guide to Self-Directed IRA Custodians and Administrators. If you're really bored with your life, go get that book, and you'll be an expert on it. It's quite impressive what you've done. In part one, we talked about the “sausage” of these custodians and administrators, and the features and benefits that are required and customer service and a little bit on fees. Today, I thought we'd talk about some alternative investment choices and options that individuals can have in their IRA, and I want to start out with a discussion about holding real estate in an IRA. How does that work, and doesn't that present some problems? Unlike traditional securities, once you buy it, then there's really no ongoing cost to maintain the asset. Real estate is just the opposite of that. You've got physical maintenance costs, insurance. You've got taxes. You've got all these costs related to just holding the asset. If it's a rental property, you've got to collect the rents. If you own this asset in your IRA, do all of the costs to hold the asset and to maintain the asset and the receipts on the asset, do all of those revenues and expenses have to go through the IRA? Or can you carve expenses out and deduct those? That kind of thing. Kirk Chisholm: It's a really interesting topic. Real estate, while it is the most common alternative asset held in IRAs, it is also one of the more complicated ones. I always find this interesting that people want to invest in this complicated structure. This is just without an LLC. This is just straight real estate. The way it works is this. You cannot transact with your IRA. You cannot sell a piece of real estate to your IRA. Your IRA cannot sell a piece of real estate to you. You're a disqualified person as are some other people. There's a list of disqualified people. You cannot transact with yourself. Effectively— Kelly Coughlin: With any asset, not just real estate. Is that correct? Kirk Chisholm: Any asset, yes. Any asset. That's a clear rule in the Internal Revenue code. What's interesting is, you have to consider your IRA like one of the neighbors on your street that you really don’t like. You're not going to loan this guy money. You're not going to work for free on his house, help him out for free. You're not going to let him borrow your lawnmower. There's things that you don’t like the person, you're not going to do these things for them. You have to treat your IRA the same way. You can't loan your IRA money. You can't work on the real estate, because that would be called sweat equity. You're not going to give away your labor for free to some other person. There's many things you cannot do. You have to look at your IRA as completely separate entity, in that if you own a piece of real estate, you're going to have a broken toilet. You're going to have to fix the roof. All of these different things are part of owning rental property. In the case of real estate, you have to hire somebody to do these things. You cannot fix your own toilets, and I know the landlords out there listening to this are going to cringe at the idea of hiring somebody to do something they can do themselves. It's hard, but you cannot do it yourself. If you think you're trying to get around the rules, I can assure you, you won't. The IRS is much smarter than you. Kelly Coughlin: You can't set up an LLC management company to do that on your behalf? Kirk Chisholm: Who’s the owner of the LLC? You? Then, no. Owned by some other third person at arm’s length? Then, maybe. You have to hire somebody else. You can do the hiring. You just can't do the work. You could do administrative functions. You can pay the bills. You can hire people, but you can't do the work yourself. You basically have to find a property manager to do it for you. It's the easier way to do it. Through this process, your IRA has to pay for these fixes. If they have a new roof, you have to make sure you have enough money in your IRA to pay for that roof. Effectively, that's one of the problems with real estate is that you might buy it for $100,000, but you need to have an extra $20,000 or $50,000 sitting around for expenses, for other things, just to make sure that you don’t run out of cash. Or, you have a good line of credit somewhere. Then, when you borrow money, that brings up another level of this, which makes it more complicated. Your IRA, like yourself, potentially can file a tax return. You might think, you own real estate in an IRA. I don’t have to pay taxes. Maybe. If you're buying it just straight out for all cash, then probably not, but if you have a mortgage on it, you may have to pay taxes. Look at it this way. If you buy a property for $200,000 and you put $100,000 into it, because that's all you have in your IRA, and you borrow the other $100,000, your equity is still $100,000. You don’t pay taxes on your equity. You pay taxes on the asset amount that you don’t have. You have $100,000 of assets that is backed by debt, you have to pay taxes on the levered amount. Effectively, 50% of your income is taxable, potentially. Now, that being said, you would have to file a tax return on your IRA, which of course, you also get the deductions of real estate, so you may not have to pay taxes. The levered amount would be treated as if it was an individual. You get the amortization. You get depreciation, the deductions, all of that. You do get all the benefits. You don’t lose those, but potentially, you would have to pay taxes on that. It does bring in a level of complication that many people are not aware of. Real estate is, on many levels, can be complex and in some ways, harder to deal with. If you own an LLC, that can make it easier for the custodian and for you, but it still has to go through the LLC. The process is the same. In some ways, it can be simpler, but in other ways, it can also raise more issue. Real estate is not simple. Other assets are generally simpler. You buy it and then it does what it does, but real estate tends to be a little bit more complicated because of all the moving parts. Kelly Coughlin: In addition to real estate, talk about other investments. What are you seeing out there? What are some of the most interesting choices that you see investors have made over the years that you've put into this business? Kirk Chisholm: We've got a lot of stories. I don’t where to begin, but I'll tell you a few of them. One of my all-time favorite assets to invest in, which actually is one of the earliest assets that I was looking at when I started this journey into self-directed IRAs was tax liens. The reason I love tax liens is because you're effectively getting essentially really high rate of interest. In the state of Florida, you can get 18% interest. You have a superior position to any mortgage or lien on the property. You're almost guaranteed to get paid off the money owed, or you would own the property. I look at it as a great asset that so few people know about, and it's such a great asset. I believe a few years ago, there were six banks that had $200 to $300 million portfolios of tax liens. It was just a phenomenal money maker for some of these firms. Certainly, the institutional demand has driven the rates down a lot, but you can still find good rates in some of these states. That's one of my favorites. Some of the other interesting ones was, I had a client who invested in a payday lending business in the state of Missouri. The state of Mass, I believe, the most you can charge interest without it being usury, I believe, is 20 percent. I think it's 20%, 25%, or something like that. Anything over that is usury. In the state of Missouri, you can charge 30% a month on some of these loans. I don’t think this individual is doing God’s work. He's really, I don’t want to say preying on the people, the underprivileged. Charging 30% a month, getting 360% a year on somebody who, it's basically on payday loans. They need money today, but they don’t get paid until Friday. They're borrowing at that rate. I don’t see that as a great business, but if you take out the moral implications and just look at it from the financial perspective, that's a pretty darn good business. Even if you have losses, you're still getting 100 to 200% returns, which is pretty fantastic. Kelly Coughlin: The only problem is, you've got to pay Tony Soprano, put him on the payroll, to collect for you. Kirk Chisholm: Oh, no. No, no, no. Not in the state of Missouri. On title loans, yes. You have to find a repo guy to repo the car. In payday loans, this is something that blows my mind. If I get a payday loan from you and I don’t pay you, the constable throws me in jail until I can pay. Now, how that is even remotely logical is beyond my comprehension. You're saying if I don’t pay, you're going to put me in jail until I can pay? How’s that going to work? How am I ever going to get out of jail? The process of some of these things is completely absurd, but the reality is, the laws in place support this activity. If you remove the moral implications, effectively it's a pretty strong way to collect. Like you said, Tony Soprano to collect for you, you don’t have to. The state is doing your job for you by putting these people in jail. The point I'm making is, it's an interesting asset class that I'm sure some people will find interesting, but it's one of many. We have another client who invested in a horse, a dressage horse. This I found extremely interesting. I knew nothing about dressage horses before this. My business partner did the due diligence. He became an expert on dressage horses. There are a lot of rules that you have to abide by with IRAs and 401ks, and there are a lot of exceptions to those rules, and there are some exceptions to those exceptions. Kelly Coughlin: Generally speaking, you cannot do the work on the asset. Once it gets funded, you've got to keep an arm’s length or relationship with that asset. Correct? Kirk Chisholm: Yes. I'll close up this little topic with this. Let's say you want to buy a business and you want to run that business and get paid for running that business. You cannot do that in your IRA, but you potentially can do it inside of a 401k. There are ways to do things. You just have to understand what the rules are and follow them. If there's exceptions, you can take advantage of those exceptions. There are ways to do things. Part of what we do in this process is working with our clients to help them facilitate the transaction so that it's not become a prohibited transaction, because we as a registered investment advisor are fiduciary. We're liable if we mess something up. We make sure that things are done absolutely correctly and there's no room for error. There are gray areas, because certain standards haven’t been defined by court cases or what have you, but we're not putting ourselves on the line. We're making sure that whatever we do is okay. When we do these things, we're definitely not playing in the charcoal part of the gray, if you know what I mean. Kelly Coughlin: Is that your sweet spot at Innovative Advisory Group? Helping clients that have these nuanced alternative investments they want to do? Whether it be they want to do something unique in their IRAs or their 401k? Is that your sweet spot? Or is your sweet spot investing in portfolio management, overall wealth management generally speaking? Kirk Chisholm: The way I would characterize it is this. We have a lot of clients who don’t work with alternatives, and that's fine. We're actually agnostic when it comes to asset classes or investments. We have our theories, as most people do. Everybody’s got a theory as to what works best, but in general, I don’t look at it and say, stocks are better than bonds or horses are better than cows or real estate is better than stocks. I don’t really care. I look at each investment individually, and I look at it and say, given the broad scope of what we have to work with, what is the best way to invest? And is this investment itself a good investment? We do a lot of traditional portfolio management, but when it comes to alternatives, there are really two types of clients that come to us. One type comes to us and says, I want to buy a horse in my IRA. Can you help me do this? Which we will. We have a lot of people come to us with very specific investments that they need help with, and that's a big part of what we do. We have another part of business where clients come to us and say, I just want to invest in alternative assets. I don’t like the stock market. It scares me. I don’t want any part of it. Can you please find me something that's alternative that makes sense? For those people, we have built up a network of investment sponsors that we do work with to help fulfill that need in the portfolio. We do have clients that have really interesting stuff. We don’t generally offer that to most of our clients, because it's very niche, and it's not what we do. We have found ways to be able to find, in our opinion, good alternative investments that are really lower risk and do provide consistent returns and things like that. We do have areas that we look at, and we're constantly expanding that. I know one area that we do actually a lot of work with is private mortgages. One of the reasons we like private mortgages is, both my partner and I love real estate. We think it's a great asset class for so many reasons. However, right now, I think real estate is expensive. I know that real estate is very closely tied with inflation. If we ever had deflation, real estate would be negatively impacted in ways that most people haven’t even thought of. I've written about this a few times. It's happening in Japan right now. In general, buying real estate long-term is great if you can find a great deal. When you have private mortgages, you more or less are investing in real estate. You get a yield that is reasonable to you. You know what that yield is. You don’t have to deal with tenants. You don’t have to deal with expenses. You don’t have to deal with all of the headaches that go along with real estate, but you still have a rate of return that's tied to real estate. You're getting your yield, whatever it is, 5, 10, 15%, whatever it might be, although I don’t advise finding a private mortgage for 5%, but some people do. You find, let's say call it 10% for the sake of argument. You get that yield. If they ever don’t pay you, you foreclose on the property. You own the property. If you're okay owning the property, then it's basically for the price that you lend the money. Then, you really have a pretty good investment there. We look at it and say, it's light work for the investors. It's not light work for us. We do a lot of work on it, but we don’t have a lot of the headaches that go along with owning real estate, and you don’t have to own it for 10, 20 years. Most of these private mortgages are one to two years. You have a very short maturity. You have a high rate of return, and if you do it right, you can do it relatively low-risk so that if the market turns sour and things get really bad out there, then these notes mature and you can use your cash to buy real estate or stocks at a discount. In our opinion, one of the better asset classes, given the current rate environment that we find ourselves in, we really like that asset class. There are some others, too, that we like, but that tends to be our most popular one at the moment. Kelly Coughlin: You've done a significant amount of work in this space of the self-directed IRA market. You've seen a lot of the providers out there, and you've seen a lot of different deals, a lot of different alternative assets that have come through your desk. I guess my question to you is, since our audience for this series of podcasts with you is really community and regional banks who I think it's safe to say, are not specialists in alternative asset business. It might be that many of them simply say, no. We're not doing that. Would it be an accurate statement for me to say that your position would be that any financial institution that doesn't specialize in this or that hasn’t adequately and thoroughly resourced this business line should stay out it? Should not get into it at all? Is that an accurate statement? Kirk Chisholm: Yeah. I would definitely agree with that. For the last 40 years with the IRAs have been in existence, some firms have come and gone from this part of the industry. I think that there are some banks on our list. They do this to a moderate degree, and there are some banks that provide custody for administrators and all they're doing is providing custody. They're not really doing anything else. The problem with the custodians, if you're doing that model is, you still have to provide oversight. You still have liability. Even though the administrators are doing all the legwork and the administration, as a bank you still have oversight. The administrators do something wrong, then you're ultimately liable. The bank still has to provide compliance on these accounts, which means, obviously you have to hire a compliance person to deal with this. If you're doing it at scale, then it perspective makes sense. If you're not doing it at scale, then it doesn't, because why are you going to hire $100,000, $125,000 compliance person to do a handful of transactions? Probably not high on your list of things to do. It can make sense in some ways. I think a lot of the administrators have collectively focused on only a handful of custodians that do most of their work. They provide their oversight, but in general I would say, most firms should not do this kind of work unless they're actually going to specialize and decide that they want to do this as a business model. You can't do this with a kind of sort of thing. You really have to put your efforts in. Kelly Coughlin: Okay. Then, the follow up to that would be this. We have a banker that listens to this. Let's say he's a CEO and he says, you know what? We're thinking about getting into this business. We're going to get out of it. Let's see if we can set up a relationship with Kirk and his group. Would you be willing to have a relationship with a community bank, whether it be in your footprint there or the state of Kansas or anywhere else where you would agree to help their customer that has an alternative asset, that needs some help, but you're not going to poach the relationship for the other part of the business? Are you open to that kind of relationship?   Kirk Chisholm: Yeah. It's a great question. We have relationships with many different financial institutions. We as a firm, we will work with other financial institutions, because they don’t know what they're doing with self-directed IRAs. They don’t have the experience. They don’t have the background or the infrastructure. What they'll do is, they'll say, we have a client who wants to invest in this horse. Can you help us? We will work directly with them on that, and manage that asset. We don’t poach the relationship with the client. We just work directly with the advisor. It's the same way we're working with a bank or another financial institution. If they want to come to us for a very specific transaction, we will work with them directly and make sure it's done properly. If a bank wanted to offer these services and do that, we certainly offer consulting services. Kelly Coughlin: Right. Your primary footprint is in Lexington. What county is Lexington in? Kirk Chisholm: Lexington is in Middlesex County, but we actually have clients all over the world. We are not location specific in our firm. We have clients across the country. We have some international clients as well. We're not really location specific. As I'm sure your audience knows, in this environment, it's becoming more and more virtual. We actually have fewer and fewer people who want to come back, stop by the office anyway. Everything is virtual now. Kelly Coughlin: Well, Kirk, I think you're doing some really terrific things. I keep picking on IRA custody as being kind of a boring sausage business, no sizzle, but you're doing some pretty interesting things with it. So, congratulations on that, and I know that you've got a business partner there who does a lot of the due diligence on deals. I looked at his resume. He seems like a pretty capable guy, too. So, congratulations on building a unique and high-value financial advisory wealth management practice. I think it's pretty cool. Kirk, why don’t you give us another plug for how listeners should get ahold of you if they wish? Kirk Chisholm: The easiest way to reach us is at our website. It's innovativewealth.com. On our website, there are a lot of free resources that you can learn more about us, about me, about self-directed IRAs and alternatives. Also, we have a free gift for listeners of this show. If you go to innovativewealth.combankbosun-podcast, you can get a free gift for that. Kelly Coughlin: Thank you for that. I want to put a plug in for this riveting publication. So exciting. A Quick Start Guide to Self-Directed IRAs. Kirk Chisholm: Yeah, thanks, Kelly. I appreciate that. I almost forgot to mention that. We put together a few resources for self-directed IRA investors, or CPAs and attorneys or people who specialize in the self-directed IRA space. Really, anybody who’s interested in this space. We have resources for pretty much all comers. There is a quick start guide to self-directed IRAs for people who are just learning about them and want to know more. It provides a lot of great resources to get you started on your journey. We have the Ultimate Insider’s Guide to Self-Directed IRAs, which effectively includes the Quick Start Guide. It's really comprehensive. If you're looking for a custodian or administrator for your retirement account, you have to pick between one of 47 companies. This resource will help you make that decision in the best way possible. We put together some really in-depth due diligence on each of these companies with over 100 data points in each one. We also have fee calculators for each of these companies, because even though there's a fee schedule, sometimes it's hard to figure out what you're actually going to pay. This fee calculator allows you to estimate what it would cost you to use this custodian based on your investment strategy. This is probably one of our more well sought-after resources. I can't tell you how many times people come to me and say, I'm just really unhappy with the fees I'm paying. I didn't know I was going to pay this much, but if you do all this research up front, you won't have that experience. The last one is really a comprehensive resource for people in the industry. It's really access to all of our research. You can get access through the website. Kelly Coughlin: I appreciate your time, and I wish you luck going forward. Kirk Chisholm: Thanks a lot, Kelly. Appreciate the opportunity to speak here. It was a lot of fun. Kelly Coughlin: Thanks. Cheers. Outro: We want to thank you for listening to the syndicated audio program, BankBosun.com. The audio content is produced and syndicated by Seth Greene, Market Domination, with the help of Kevin Boyle. Video content is produced by the Guildmaster Studio, Keenan, Bobson Boyle. Voice introduction is me, Karim Kronfli. The program is hosted by Kelly Coughlin. If you like this program, please tell us.  If you don’t please tell us how we can improve it. And now some disclaimers, Kelly is licensed with the Minnesota Board of Accountancy as a certified public accountant. The views expressed here are solely those of Kelly Coughlin and his guest in their private capacity and do not in any way represents the views of any other agent, principal, employee, vendor or supplier.