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Play Episode Listen Later Oct 28, 2024 42:44

Keith highlights the unprecedented surge in immigration and its impact on housing demand. The conversation also covers state income tax policies, noting that nine states have no income tax, and the impact of international tax laws on US citizens abroad. Immigrants now make up more than 14% of the US population, the highest proportion since 1910. The US is facing a significant housing shortage, with an estimated 4.5 million housing units needed. Housing shortages are expected to continue, with homelessness rates rising by 12% year over year. Learn about the challenges of being a US citizen living abroad and the potential for double taxation. Resources: Connect with Tom's team at WealthAbility for a free consultation on permanently reducing taxes. Show Notes: GetRichEducation.com/525 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 welcome to GRE I'm your host. Keith Weinhold, both an immigrant surge and a big wave of US born residents is tightening housing demand near unprecedented levels. Then we're joined by show regular Tom terrific again, but it's not Tom Brady on how to legally avoid paying state income tax and the fact that if you're from the US, if you move out, you must still pay tax on your worldwide income, plus more tax strategies that you can benefit from today on Get Rich Education. Speaker 1 0:34 since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show, guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit getricheducation.com Corey Coates 1:20 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:36 Welcome to GRE from Athens Georgia to Athens, Greece and across 488 nations worldwide. I'm your host. Keith Weinhold, get rich education. Founder, Forbes real estate council member, best selling. Author, long time real estate investor and holder of a humble bachelor's degree in geography from a college in Pennsylvania that nobody's ever heard of. It's that time of year where you now have Halloween decorations in your front yard competing hard for space with political campaign signs. What's your HOA gonna do now? Welcome in this slack shot operation right here is the get rich education podcast. I think you know that by now it's episode 525 Brace yourself, immigration has absolutely exploded. I've got the latest numbers on that, and there's a chart recently published in The Wall Street Journal that shows it all legal and illegal. We're a real estate platform, so the question I'm asking is, Where in the heck are we going to house all of these people? In addition to soaring immigration, we'll look at our own domestic US born surging population that are forming households now, and that part might have flown under your radar. This is an urgent issue. All of this isn't just coming. It is already here, this explosion of housing demand, it will indelibly shape both broader society and real estate's supply demand component for decades, it is really approaching the unprecedented we look at net immigration to the US since 2000 it's really these past four years where the numbers have shot up like a rocket through 2020 immigration averaged around 1.2 million people per year, but since 2021 it has more than doubled to around two and a half million net immigrants per year. But the number of illegals arriving among them has gone up as much as 10x starting in 2021 and the overall figures they keep rising. Last year, there were over 3 million immigrants, about three times the total number that we averaged in the first 20 years of this century. So a 3x total net inflow, legal and illegal. And these figures in the Wall Street Journal chart, they are sourced by the CBO. Now you might think that the immigrants that did not enter legally could eventually get deported, but some of them that are already living and working here, gained something called Temporary Protected Status that keeps them here. Well, our central question remains, Where in the heck are we going to house all of these immigrants in a nation of almost three 40 million people? Do you have any idea what our foreign born population is up to now, okay, so not the descendants of those people, just the foreign born population here now, out of the 340 million total US population, any guess? Venture a guess. Last year, the US foreign born population reached 47.8 million. And that figure 47 point 8 million, that is five times more than in 19 75x Do you even realize that's almost double the population of the entire continent of Australia, now crammed into the states. That's how many immigrants, 47.8 million is. It's also the same as the population of all of Spain. That's another way of saying it all in the US today. And by the way, that is my geography degree at work, right there. Hey, the geography muscle is one that I just don't get to flex enough. Immigrants now make up more than 14% of the population. That is one in seven Americans. And that proportion, right there is the most since 1910, per Pew Research. Well, where are the immigrants from? Alright? Before I get into that, if we go back about 60 years, immigrant growth accelerated after Congress made changes to US immigration laws in 1965 that was a key year before 1965 the law favored immigrants from Northern and Western Europe, and it mostly barred immigration from Asia, all right, Well, so here in modern times, where are immigrants from? Mexico is the top country in 2022, 10.6, million immigrants living in the US were born there. That is almost a quarter of all immigrants. And then the next largest origin groups in order are those from India, China, the Philippines, and then El Salvador. All right, so there are a lot of new immigrants here, like a demographic shock wave that's going to drive the demand for housing. But there's way more to this housing crunch story. Combine this nascent immigration influx along with America's own high birth rate years. And this is something that you might not be aware of, though, what I just talked about that might have been somewhat informative to you. You probably had some idea that immigration is higher now, because it's been in the news cycle for a few years here, but something that you probably don't know. And yes, fertility rates are down today, but there was a boom of US born residents from the years 1990 to 2010 and then you might say, well, so what 1990 to 2010 that was in the past? But no, actually, it is just the beginning, because when it comes to housing, it has less to do with the birth year. Currently, what you have to do is add perhaps 25 or 35 years to that birth year, because that's the age of when that person tends to start their own household. And the average age of today's first time homebuyer is 35 to 36 years old. Well, the US is peak birth year occurred in 2007 then adds 35 or so to it. And that means that, on average, they will buy their first home in the early 2040s and a lot of them were going to start renting in the 2020s and 2030s So suffice to say, a lot more Americans will need homes. Well, what else will those high birth years from 1990 to 2010 mean now and into the future? Realize that over 13,000 Americans are turning 35 every single day, both now and years in to the future, record highs. Yes, every single day, just another demographic figure that's on the rise, and there are deaths to account for as well. But the population aging into home ownership is projected to exceed the population aging out like with deaths for a long time, this will pump housing demand. The US has about 144 million housing units today, and we are going to need more housing of all types. Well, between all the fresh immigration I discussed and this US born surge, you've indubitably got the recipe for a ridiculous amount of demographic driven housing demand. And you know, maybe over the past few years, at times, you or some of your friends or family, they've wondered why housing prices have risen fast, why rents have risen fast, and why? Even a tripling of mortgage rates couldn't stop it. It could only slow it down. It's because of this demand that is just coming, and it's going to keep on coming from both the US born demographic surge and an immigrant surge. And here's the thing, as we know this is all amidst a still lackluster US housing supply today, so greater demand, yet still a meager supply. Zillow estimates that we're still four and a half million housing units short, and the housing deficit is growing, although other outlets have estimates that, you know, they really are all over the place. These estimates as to how great the shortage is, 3 million is probably closer to a good amalgamation of how severe the housing shortage is, all right. Well, how do we reduce the housing deficit? We need to start more construction, but it had its recent peak in 2022 and it's fallen since then, in single family homes, because builders faced higher interest rates then and new apartment building starts, they have fallen too. And two years ago we had a lot of apartment building starts, actually. And as you drive through major cities today, you might still see cranes in the air. You still see a lot of active apartment building construction, actually, but more of those projects began two years ago. They began to freeze as interest rates rose, and now they've just got to complete what they've already begun. It can be two years from an apartment construction start to a completion. So as some of these complete, there will be some absorption time there on apartments. But the starts are way down on apartments. This year, we should have at least double the number of apartment starts being started than what we have now. So this sets us up for more future shortages, regulation and zoning. We know that that slows down building for most any housing type, single family, homes, apartments, condos, whatever it is. And nimbyism is a condition that's especially pervasive in the construction of new apartment buildings. Neighbors don't perceive new single family homes as a threat in their neighborhood like they do apartments, whether that's warranted or not. That's how people feel. That's the sentiment. That's the type of neighbor that shows up at a public meeting and speaks out against new apartment buildings. So to summarize what you've learned so far, it's really the confluence of four housing factors coming together here, two of them for higher demand and two for lower supply. The two for higher demand are more immigrants and a surge of US born people from 1990 to 2010 that are just starting to get old enough to need their own place. That's the higher demand side. And then the two factors on the paltry supply side are both a lack of current supply and not enough building for the future. Either it is an increasingly dire situation, and it can even be in your face. Actually. How is it in your face? Well, it's one reason that you see more homeless people on the street in your nearest city, although you might see more US born homeless than you do immigrant homeless. HUD tells us that the homelessness rate has jumped 12% year over year. That's the fastest homelessness increase rate they've ever reported. I talked to you about that before, and I'm waiting for HUD to release their new number in December. They released that annually. You know, amidst this demand, supply imbalance, in fact, anymore, let's look at it this way. Let's flip the script. Consider what could possibly stop insatiable US housing demand from exceeding supply for decades. And when you do, when you think about what could stop that, it starts to get absurd a sudden, new construction technology that pumps out homes like a popcorn machine, climate change that roasts us into human popcorn, not the good kind, and AI or VR, so advanced that We're all going to live inside some sort of force field. How about an even worse pandemic, or even a world war that would have to kill at least 10s of millions of people, or something like that, or aliens or asteroids destroying Earth? Or how about a depression level economic contraction. But see all these scenarios that would derail the housing demand trend. They range from the pretty unlikely to the downright ludicrous. Starts to sound like a Sci-fi flick, and amidst a lot of those afflictions, your life's biggest concern wouldn't be your real estate investment portfolio. It would be primordial human survival. Now, before I summarize your big takeaway here, let me tell you immigration, it has near term downsides, like a lack of housing and a demand for public assistance. And yes, I know a huge pack of new immigrants can appear sort of like a Walmart at first glance, huge, chaotic and full of people that seem like they've given up on life. But that is certainly not always the case. A lot of immigrants are ambitious long term new young people drive an economy. Immigrants have long been a backbone of innovation. A lot of our tech giants were started by immigrants or their children, and also a lot of immigrants find those construction jobs that can help us build our way out of the housing shortage crisis, but that is going to take a long time. The bottom line here is that if you're looking for your own home, waiting probably won't help. As an investor, own more properties now, own lots of rental housing, you're going to have something that everybody needs. Housing demand is expected to exceed supply well into the future. Both this US born surge of people and the immigrants, what they do is they tend to be renters for years before they become buyers, if they ever become buyers, from here today, it's a realistic scenario to expect then soaring real estate prices, higher rents and lofty occupancy rates for years. Well, Tom terrific is back in the house, and we are talking taxes. Brady's in the gun bulletin to his left. He's got the hoo man on the right wing with Dobson to the right Collie and Tomkins left. Brady throws it to the end zone for kenbrell Tompkins. Leaping. Kenbrell Tompkins, Brady's back. That's your quarterback. Show ponies, where's the beat? All right, that's enough. Scott zolak, Bob Sochi on the call there 95 the sports hub in Boston. No Tom. Brady is not the Tom terrific that we often have here. Brady simply doesn't know enough about taxes. We've got the tax expert with us, the extraordinary Tom. We're right. What about that spirited play call at the end there? Did he say unicorns show ponies? Where's the beef? I don't really get all that. So getting back to real estate and taxes here, look, here's the thing, when you see what your government spends money on, and you're disgusted by some of these spending programs, doesn't that give you a supreme motivation to want to reduce your taxes? Well, we're going to talk about state income taxes where they're high where they're low. There are currently nine income tax free states. Are more states looking to drop their income tax to zero and join them? Or is it going the other direction, where they're looking to raise them if you live in one state and invest in another. We'll get into how that looks too. Canadian listeners, sorry, we don't plan to have provincial income tax discussion today. Now, I seem to have become here no more for my real estate investing voice than anything else. Last month, I was in Pennsylvania for a while, and I ran into one of my high school teachers. He was the art teacher, but he also taught a class called journalism in publications. That was an elective class, and I took that class as a high school student. I think I was a senior then, well, our job was to lay out the yearbook, writing, positioning and centering this text here in that image over there. Well, I told my old journalism and publications teacher that he's been a substantial influence on me because, as you know, I write our Don't quit your Daydream letter to you about every week. And I just love doing that, I've always thought of myself as more of a writer than a talker, and I myself really enjoy writing and laying out the body and images of our newsletter and sending it to you about weekly on crucial information that you must know About, real estate investing, economics and wealth mindset. It's got a dash of humor, and every single letter can be read in less than five minutes, often less than three minutes. I would love to have you as one of our 1000s of weekly readers, and it is free. You can get it simply by texting GRE to 6866. come along and join us for real estate investing information and fun. Just take a moment and do it right now while it's on your mind. Text, GRE to 6686 lots more. Straight ahead. I'm Keith Weinhold. You're listening to get Rich education. Hey, you can get your mortgage loans at the same place where I get mine, at Ridge lending group NMLS, 42056, they provided our listeners with more loans than any provider in the entire nation because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage, you can start your pre qualification and chat with President Caeli Ridge personally. Start Now while it's on your mind at Ridgelendinggroup.com, that's ridgelendinggroup.com. Your bank is getting rich off of you. The national average bank account pays less than 1% on your savings. If your money isn't making 4% you're losing your hard earned cash to inflation. Let the liquidity fund help you put your money to work. With minimum risk, your cash generates up to an 8% return with compound interest, year in and year out. Instead of earning less than 1% sitting in your bank account, the minimum investment is just 25k you keep getting paid until you decide you want your money back. Their decade plus track record proves they've always paid their investors 100% in full and on time. And I would know, because I'm an investor too. Earn 8% hundreds of others are. Text FAMILY to 66866, learn more about Freedom Family Investments, liquidity fund on your journey to financial freedom through passive income. Text FAMILY to 66866. Chris Martenson 21:42 this is peak prosperity's Chris Martinson. Listen to get rich education with Keith Weinhold, and don't quit your Daydream. Keith Weinhold 21:58 This week's guest is, to me, the world's foremost tax pro. He is an international authority on how you can permanently reduce your taxes, and he really makes taxes easy, fun and understandable, like no one else that I've ever met does. He runs a terrific educational platform too. It's called wealth ability. Welcome back to get rich education. Tom, we're right. Tom Wheelwright 22:21 Thanks, Keith, always good to be here. Keith Weinhold 22:23 Yeah, it's so good to have you back, because taxes are such a dynamic topic. And one place where I wonder if it's going to be dynamic, Tom, is we have a number of states that don't have any state income tax, which is something that people have to pay on top of their federal income tax. Federal alone can be up to 37% some of the states with the fastest population growth, like Tennessee, Florida and Texas, don't have any state income tax. So what I'm wondering, Tom is, are more states considering abolishing the income tax like those states have done. Tom Wheelwright 22:59 We've actually seen a lot of states in the last couple of years reduced their income tax rates. So Arizona, where I live, is one of them. We went from over a potential tax rate of like eight and a half percent potential to an actual tax rate of 5% there was actually a proposal passed that would have increased it down to a tax rate of two and a half percent. Our former governor, Doug Ducey, his goal was to abolish the income tax in Arizona, and we did get down to two and a half percent. There are a number of states, typically in the middle of the country. You don't see any states on the coasts doing this, outside of Florida, that are reducing their tax rates. So you do see states doing that. You see other states that are increasing their tax rates. Recently, I was reading about Bill Belichick, and he said, Massachusetts is always hard getting the top earners, the top free agents, into New England. Because he says, This is taxachusetts, because they have a surtax on millionaires. Well, of course, all football players are millionaires. That is an issue. People are leaving states like California, Massachusetts, New York, New Jersey, and they're moving to low tax states such as Arizona, Texas, Florida and, you know, the whole southern belt. Keith Weinhold 24:15 with Belichick having Tom Brady. It didn't matter if he couldn't bring in the best players, because Tom Brady made stars out of nobodies. It seems like he could complete a pass to any no name wide receiver or tight end for two decades there in New England. But can you tell us more about maybe interesting dynamics with state income tax? For example, I know that California has punitively high state income taxes, and then you have other states that have tax rate tables and some that have flat taxes, like, I think Pennsylvania has about a 3% flat income tax. Colorados is 4.4 so can you tell us more? Tom Wheelwright 24:51 Yeah, there are, you know, the federal income tax has graduated rates. We go, actually, from a zero rate to currently a 37% rate, which is not really 37% rate. It's really 41% because there's a 4% add on tax that pretty much you're gonna pay. So it's really over 40% California has a graduated tax rate, but it goes up to 13% Minnesota has a high income tax. New York has a high income tax. So Massachusetts, we're seeing high income taxes. The states that provide have big governments and provide lots of services have high tax rates. That's why we see it on the coasts. Interesting enough. Minnesota. Minnesota is the liberal state in the middle of the country, and so they have liberal states tend to have very high tax rates, and conservative states tend to have very low tax rates. Keith Weinhold 25:45 Now we have a lot of real estate investors here that have learned that the best deals are outside their home state. So that investor might be domiciled in a Minnesota, but investing in, say, Arkansas, tell us about how the state income tax affects them. Tom Wheelwright 25:59 So it's kind of like being a US citizen, right? You live in the US. You're taxed on your worldwide income. You live in Minnesota. You're taxed on your worldwide income in Minnesota. So by virtue of where your residency is, you are taxed on all of your income. Now you'll get a credit, typically, for taxes paid to another state. Well, let's say that your tax rate in your state is 10% and then you invest in a state with a tax rate of 3% well you're going to get tax credit of 3% so you're still going to pay 7% in your state, plus 3% that state. You're still going to pay your 10% it's just going to be some of that's going to go to another state. Some of it's going to go to your state. But in total, your tax rate is likely to be wherever you live. That's youroverall state tax rate. I'll give you another example. Let's say that you invest in Texas, you live in in Minnesota, you're going to pay Minnesota tax rates on your income, you get no credit because you have no tax in Texas. What's worse is, though, you have property tax in Texas, but you don't get a credit in Minnesota for your property tax paid in Texas. So you have much higher property taxes in Texas than you do in most states. Right? Because every state has to raise revenue, right? In Texas has decided to it largely on sales tax and property tax. So that means that you don't get that offset. Property taxes are pretty serious in Texas. If you're an investor in Texas, you know that property taxes are pretty serious, but you don't get any kind of benefit in Minnesota, but you still pick up the income in Minnesota. Keith Weinhold 27:38 In some Texas jurisdictions, property taxes can be 3% annually based on the property's value, pretty punitive. There in Texas, Texas is a good example. That's where we have often high property tax rates, but zero state income tax. So with these other states that have zero state income tax, are they subsidizing that with property taxes or sales taxes, or in what other way are they making up that? Tom Wheelwright 28:03 Of course, for example, we were talking earlier about Tennessee. Tennessee doesn't have a personal income tax, but if you have your real estate owned through a limited liability company, you do have a 6% tax on the income of the LLC. So even though it's a pass through entity for Tennessee purposes, it's taxed. They have all sorts of mechanisms to raise revenue. All states need revenue. Now, some states raise less revenue per capita than other states. Those are the states that people tend to move to. But don't forget those other taxes. I mean, sales taxes. Sales taxes can be very high, right? And you pay sales taxes typically don't pay them on food or prescription drugs, but you typically pay them on pretty much everything else, and including leasing a car, they're going to get their money. It's just how they get their money. Keith Weinhold 28:50 Well, we've been talking about ways that you could potentially legally escape taxation, depending on what state that you live in. So in a domestic sense, and Tom we pull back and we think about that in an international sense. A lot of Americans don't seem to realize that if they're, I guess, born and raised and get citizenship in the United States when they become an adult and get older and they go abroad, they have to continue to pay US taxes if they move to Norway or Dubai. Can you tell us about that? Tom Wheelwright 29:21 Yeah, so US citizens are taxed on worldwide income as long as they're a US citizen. Here's what's really interesting in the US let's say you give up your US citizenship, you're still subject to taxes on your worldwide income for 10 years. Wow, after you give up your citizenship so you no one get any of the benefits of being a citizen. You've given that up, and you still have taxes for 10 years. Earlier this year, we did an episode, and we talked a little bit about this unrealized capital gains tax, right? People don't think, well, I'll just leave. Doesn't work that way. You're still going to have the capital gains tax for at least 10 years, and the only way to get rid of it is to give up your citizenship and wait 10 years. It's a pretty restrictive law, because most countries only tax if you live there, if you're a citizen of France, but you move to Belgium, you're taxed in Belgium, you're not taxed in France. Not true with us. Keith Weinhold 30:19 Yeah, that's remarkable. I didn't know about that 10 year thing. Even if you renounce your citizenship, those taxes will follow you for 10 years regardless of where else in the world you live. Um, I'm just maybe this is a little bit of devil's advocate. I mean, this sounds preposterous when we first think about how Americans are taxed abroad for the rest of their life, but maybe thinking of it philosophically, if it does make sense in any way, which is really hard for me to say, but maybe it's because, okay, well, you were born and raised in the United States, where we have this very mature infrastructure and stable currency and good educational system, so you got to be a beneficiary of that. So when you're 30, you can't move away and never give us any tax money to support that. Again, what are your thoughts with that? Tom Wheelwright 31:02 different countries have different tax systems? What I will say is, just like the state discussion, you do get a credit for taxes paid to another country. So if you have income taxes, let's say you're living in Portugal and you pay Portuguese income taxes, you're not going to pay taxes twice. You're going to pay the higher of the two rates, either the Portuguese tax rate or the US tax rate, but you should not be paying tax twice. Now, if you're going to do that, you need a really good team of tax professionals. You need a good US tax professional, and you need a good tax professional where you live, and those two tax professionals need to talk to each other on a regular basis, because otherwise you can end up paying double tax, and that is the worst of all worlds. You do not want to end up paying double tax. So make sure that just know that if you're going to invest in another country, or you're going to live in another country, you need double the tax advice. Keith Weinhold 31:05 I am just going to speculate that there are an awful lot of people that don't consider taxes before they move, whether that's domestic or international, not that that should be the top consideration, but a lot of people probably aren't even thinking about it. Tom Wheelwright 32:13 A lot of people aren't. That's true. Now, are there ways to reduce your taxes internationally, particularly if you're in business? Yes, there are ways that you can reduce your taxes. So know that there is still tax planning available. But I hear about people saying, I'm going to invest in the Dominican Republican, or I'm going to invest in Dubai, or I'm going to invest somewhere else. Just know that you've got now two sets of laws that you're working with you're working with US laws, and you're working with that country's laws. And so make sure that you've got good advisory on both sides. When we're talking about moving for tax considerations, we should cover Puerto Rico. Tell us about the advantageous tax laws for Puerto Rico, and if they're going to sunset, they're there for the foreseeable future. So Puerto Rico, depending on how you earn your income, you can potentially reduce your income tax rate from the current 37% rate in the US to 4% yeah, that's basically an agreement with Puerto Rico. Puerto Rico is still the US, but it's got special laws that it's almost like a treaty, right? Even though it's a territory of the US. And what happens is, is that if you set it up properly, you got to live there, by the way, you can't just pretend. You got to live there six months in a day out of the year, over six months a year. And if you do, then you get a 4% tax rate on the income you earn while you're in Puerto Rico. If you earn income while you're in the mainland, you're going to pay tax on the mainland, but the income you earn in Puerto Rico, you're going to pay 4% tax. And there are certain types of income that that works for certain types of income, it doesn't just make sure that this is one where you need a Puerto Rican tax advisor as well as your US tax advisor. Capital Gains also have they have a potential tax rate of zero. So there are obviously details you have to follow again, make sure, before you get into that, know that there are huge tax benefits for living in Puerto Rico. No question. You know, it's the Puerto Rican discount. What can I say? We say in Arizona that California has a beach tax and we have a desert discount. The same was true in Puerto Rico. Puerto Rico has a Puerto Rican discount. That's what it is. Keith Weinhold 34:24 Yeah, you're going to be getting on a plane a lot in order to go anywhere. I know an awful lot of entrepreneurs that have relocated to Puerto Rico. You do too. Tom, you the listener, probably do as well. It's really important to have the right team before you make such considerations. And before we're done today, Tom and I will talk about how you can connect with him and learn more. But Tom, since we last had you here, you updated your terrific book, which I have on my bookshelf called Tax Free Wealth. Tell us about the updates and changes you made to the book. Tom Wheelwright 34:56 We do a new edition of tax free wealth every time there's a major change in the tax law. So the second edition was the 2017 tax law, because that was a major change. Since 2017 though we've had six major changes to the tax law, we had a bunch of major tax law changes during COVID And so what we did was we actually took the 2017 and all the new ones, werolled them all into a new edition. By far. This is the best edition of tax free wealth by a long shot. I mean, I think tax free wealth, you know, got good bones to it. It's a good book. Got almost 4005 star reviews on Amazon. This is the one I like the best, by far. Keith Weinhold 35:18 Tax Free wealth, I read the original edition, and it's not like watching motorcycles jump off ramps, but for a tax book, it's actually really a good read there. He really brings life and some good examples to how you can permanently reduce your taxes. Tom, you and your terrific firm wealth ability have been helping people do that for years. If you the listener, want to Tom's team and Tom's referral network to help you permanently reduce your taxes. We have a resource for you atget rich education.com/taxwe can actually set up a free consultation to confirm if indeed they can help you in your situation. And Tom, why don't you talk to us some more about the importance of having the right tax pro on your team, and how they're not actually an expense, but really they're an incentive to you, because the fastest way to get an ROI is actually by reducing your taxes, because it can be done almost instantly. Tom Wheelwright 35:36 Yeah, for sure. And what's important is that you have a relationship with a tax advisor that does give you tax advice. That's why it's called a tax advisor. They actually give you tax advice, and they willing to give it to you. And they're not waffling. They're not saying, Well, I don't know, or they're not backing off. They're saying, Well, look, if you do this, this is what you get. You have to choose whether you want to make those changes to your situation, but they're going to give you, you know, what changes you can make to your facts in order to reduce your taxes. I think the most important thing, though, is that you have a partnership with your CPA, that this is a true relationship. And we've actually changed the way we work with clients. We used to charge for projects. We used to charge for tax returns. What we want is a relationship, so we basically charge a monthly fee for the relationship. So that's a recent change in our model, you're going to see more and more CPAs go to that model, because it is a much more comfortable model for both the CPA and for the client. But what we want to do is we want to emphasize the relationship. We don't want you to feel like every time you pick up the phone, you're going to get charged. We don't want you to feel like, well, all that tax return fee is just killing me. No, it's not a tax return fee, it's a monthly fee. It's an annual fee, billed monthly, is what it is. And that way you have something come up, you don't have to worry about them and get a bill for it. You have even an IRS audit come up. Once you're a client with us for a year. After the first year, we'll then allow you to pay a small monthly fee so that when you get audited, you won't pay us for handling the audit. We call that an audit defense plan. I talk about that in tax free wealth. To me, we've been operating this way. So my firm, which I worked with people like Robert Kiyosaki, we've been operating this way for several years, and it is the best way to work with a tax advisor, because you always have that relationship, and you never have to worry. I'm not going to get this big tax bill, this big fee, like you do for an attorney, right? You don't call your attorney, because you can get a big fee, right? Every minute it's going to be a big fee. This is a great way to work with a tax advisor and make sure that you can be proactive, and they can be proactive. It's really a great way to help build the relationship over time, which is something that you're going to want to have over time again. If you want to learn more and have that free consultation, you can start at get rich education.com/tax. Keith Weinhold 38:56 Tom, it's been valuable as always. Thanks so much for coming back onto the show. Tom Wheelwright 38:59 Thanks, Keith. Keith Weinhold 39:06 Nine states don't have an earned income tax. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. And the way to avoid state income tax is clearly to start by living in one of those states. I don't believe that moving to one just for tax reasons, is a good idea, though, like I was saying earlier, do you agree with how your government is spending your tax dollars? If you don't, then you owe it to yourself to reduce your tax burden, otherwise, you are just helping to fuel reckless spending. And when you lower your tax burden, not only do you stop fueling reckless spending, of course, you increase your own personal return on investment. You know in fact. This paying any more tax than you have to fuel a kleptocracy. I think it's at least worth asking the question then, because this is get rich education, little learning moments, some vocab rehab. Here, you can think of a kleptocracy as being synonymous with a fevocracy. The strict definition of a kleptocracy is a government whose corrupt leaders use political power to expropriate the wealth of the people and land they govern, typically by embezzling or expropriating government funds at the expense of the wider population. All right, well, is that a little too strong for the behavior of our elected leaders or not? I'll let you decide that. But see, most of the 1000s of pages of the US tax code does not outline the taxes that you have to pay. Did you realize that the vast majority of the IRS Code is a guidebook to help you reduce your taxes that are in those tax tables. Well, now my own tax return is hundreds of pages long, and a lot of it outlines how my taxes have been reduced for that tax year. Well, Tom's excellent book called tax free wealth is sort of a digestible way to make the reading more fun than any psycho that would read the entire IRS tax code, but to make it even easier than that, it's really a good opportunity to connect with Tom's team and see exactly how they can help you reduce your tax In your specific situation, and is especially helpful for real estate investors and business owners. You know that I often like to leave you with something actionable. You can book a free consult at getrich education.com/tax that's get richeducation.com/tax. Until next week, I'm your host. Keith Weinhold, don't quit your Daydream. Speaker 2 42:06 Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively. Keith Weinhold 42:34 The preceding program was brought to you by your home for wealth building. Get rich education.com you

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Tax Free Wealth - Tom Wheelwright

Mailbox Money Show

Play Episode Listen Later Oct 21, 2024 36:48

Get my new book: https://bronsonequity.com/fireyourself Download my new special report - How to Use Inflation to Your Advantage - www.bronsonequity.com/inflation Welcome to our latest episode! Today, we're thrilled to feature Tom Wheelwright, a CPA and CEO of WealthAbility. Tom is an international authority on tax and best-selling author of Tax-Free Wealth and The Win-Win Wealth Strategy. With over 40 years of experience, Tom specializes in helping entrepreneurs and investors build wealth through strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki, Tom travels the world teaching how taxes can be leveraged as a tool for financial growth. His expertise has been featured in The Wall Street Journal, Forbes, Investor's Business Daily, and more. In this episode, Tom dives into why tax strategy is essential to wealth building, how to partner with the government for tax advantages, and what to expect in the upcoming election's impact on taxes. He also shares actionable advice on navigating tax laws, making smarter investment choices, and planning for potential tax changes in 2025. Tune in now to learn how you can build wealth and reduce your tax bill with practical strategies from one of the leading experts in the field! TIMESTAMPS 00:43 - Guest intro: Tom Wheelwright 02:43 - Tax strategy as a wealth-building tool 08:29 - How tax incentives drive government policy and benefit investors 10:09 - The impact of upcoming elections on tax laws 17:22 - How to prepare for major tax legislation in 2025 20:38 - Strategies for leveraging tax incentives in real estate and agriculture 25:51 - How to use tax strategy and consistency to minimize risk 31:09 - How to adapt your tax strategy to upcoming changes 34:08 - Connecting with Tom Wheelwright and WealthAbility Connect with the Guest: Website: https://www.wealthability.com/tom/ Linkedin: https://www.linkedin.com/in/tomwheelwright/ #TaxStrategy #RealEstateInvesting #FinancialFreedom

The WealthAbility Revolution with Tom Wheelwright

From Zero to Millions: Accounting Edition

Play Episode Listen Later Sep 4, 2024 24:19

Tom Wheelwright joins us today! Tom is a visionary in the world of tax strategy and wealth creation. His journey from early career to founding his own firm will show you what's possible and inspire you to take action. He shares information about the evolution of tax strategy and the inception of WealthAbility, his groundbreaking network that helps individuals and businesses navigate the complexities of tax planning.Tom's expertise isn't just confined to his practice; he's also a prolific author. We dive into his impressive books, each a treasure trove of insights on building wealth and mastering the tax game. As we discuss the challenges and changes in the CPA industry, Tom sheds light on the innovative WealthAbility franchise model, which is revolutionizing the way CPAs operate and grow their practices.Looking ahead, Tom offers his predictions on the future of the CPA profession, emphasizing the crucial role of technology in shaping the industry. His forward-thinking perspective is a must-listen for anyone interested in accounting and wealth management. Join us as we explore these topics and more, gaining valuable knowledge from one of the industry's leading figures!What you'll hear in this episode:[1:00] Introduction of Tom Wheelwright[1:40] Tom's early career and founding of his firm[2:40] The evolution of tax strategy and WealthAbility[3:50] Rundown of books that were written by Tom Wheelwright[5:45] Challenges and changes in the CPA industry[13:25] The WealthAbility franchise model[19:10] Future of the CPA profession and technologyConnect with Tom https://www.linkedin.com/in/tomwheelwrightConnect with Kelly https://www.linkedin.com/in/kellyrohrs/Connect with Bilal https://www.linkedin.com/in/bmehanna/

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Tom Wheelwright How to Turn Government Incentives into Win-Win Investments

The Business Credit and Financing Show

Play Episode Listen Later Aug 28, 2024 29:54 Transcription Available

Tom Wheelwright is a renowned CPA and a tax and wealth expert who has dedicated his career to helping individuals and businesses achieve financial independence. As the founder of WealthAbility®, TFW Advisors, PLA Software, and the Wheelwright Manahan Family Office, Tom has built a network of businesses focused on providing education, tax preparation, and tools that empower people to break free from financial reliance on employers, Wall Street, and the government. He is also the trusted CPA for Robert Kiyosaki, the author of Rich Dad Poor Dad, and an international speaker who has shared his insights with over 100,000 entrepreneurs and investors across six continents. Tom is the bestselling author of Tax-Free Wealth and The Win-Win Wealth Strategy, books that have transformed the way people think about taxes and wealth building. His approach centers on using the tax code strategically to create and preserve wealth, making the complex world of taxes both understandable and advantageous. In addition to his writing, Tom hosts "The WealthAbility® Show," a popular podcast where he shares his expert insights on tax and wealth strategies, solidifying his reputation as a leading voice in the financial world. During the show we discuss: What Motivated Tom Wheelwright to Write The Win-Win Wealth Strategy How Tom Wheelwright Defines a "Win-Win" Investment, And Why It is Crucial for Both Investors and Society The Most Overlooked Government Incentives That Investors Should Be Aware Of How Investors Can Navigate The Complexities Of Regulations Associated With Tax Incentives The Key Factors That Determines Whether An Investment Will Be Eligible For Government Incentives How the Timing Of An Investment Influences Its Eligibility For Tax Incentives The Most Common Misconceptions About Tax Incentives What Investors Should Consider When Deciding Between Different Types Of Incentive-Eligible Investments The Risks Of Relying On Government Incentives, And How They Can Be Mitigated The Red Flags Investors Should Watch For When Evaluating Incentive-Based Investment Opportunities The StepsInvestors Should Take To Identify And Utilize Government Incentives Available To Them The Role Financial Advisors Play In Helping Clients Navigate Incentive-Based Investments How To Stay Updated On Tax Law Changes That Could Affect Your Strategies How Business Owners Can Leverage Tax Incentives To Scale Their Companies While Contributing To Economic Growth Show Resource/s: https://tfwadvisors.us https://tomwheelwright.com/ https://tomwheelwright.com/#podcast https://tomwheelwright.com/#books

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Tom Wheelright's Guide To Tax Planning in the 2024 Election Year: What Investors Need to Know

Wealth Strategy Secrets of the Ultra Wealthy Podcast

Play Episode Listen Later Aug 28, 2024 46:31

In this episode of the Wealth Strategy Secrets of the Ultra Wealthy Podcast, I had the pleasure of sitting down with Tom Wheelwright, a true authority in the realm of wealth and tax strategy. Tom is a CPA, the Founder and CEO of WealthAbility based in Tempe, Arizona, and the best-selling author of *Tax-Free Wealth*. With a unique talent for making taxes fun, easy, and understandable, Tom has carved out a niche as one of the leading wealth and tax experts globally. Tom's approach is both practical and strategic, offering listeners actionable steps they can implement to optimize their tax situation and accelerate their wealth-building journey. Throughout our conversation, Tom shared invaluable insights on how entrepreneurs and investors can build wealth by strategically and permanently reducing their tax liabilities. His work has been featured in prominent media outlets such as The Wall Street Journal, Washington Post, Forbes, FOX & Friends, and NPR, to name just a few. As a Rich Dad Advisor to Robert Kiyosaki, author of *Rich Dad Poor Dad*, Tom brings a wealth of knowledge and experience, frequently speaking at conferences worldwide on these critical topics. Whether you're an entrepreneur looking to maximize your financial potential or an investor aiming to protect and grow your assets, this episode is packed with essential information that can help you achieve your financial goals. Tune in to learn from one of the best in the business. In this episode, we talked about: Strategies for achieving long-term wealth through effective tax planning Preparing for potential tax law changes and how to stay ahead Ensuring your wealth is protected and grows through smart tax planning Practical methods for permanently lowering your tax liabilities Click here to learn more: https://pantheoninvest.com/episode134/

835: Tom Wheelwright: The 7 Investments The Government Will Pay You To Make

Cashflow Ninja

Play Episode Listen Later Jun 17, 2024 39:11

My guest in this episode is Tom Wheelwright. Tom is a CPA, CEO of WealthAbility (Tempe, Arizona) and Best-Selling Author of Tax-Free Wealth. Wheelwright is a leading wealth and tax expert, global speaker, and Entrepreneur Magazine Contributor. Tom is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki (Rich Dad Poor Dad), Tom frequently speaks at conferences worldwide to entrepreneurs on these topics. His work has been featured in The Wall Street Journal, Washington Post, Forbes, Accounting Today, Investor's Business Daily, FOX & Friends, ABC News Radio, NPR, Marketplace and many more media. Robert Kiyosaki, bestselling author of Rich Dad Poor Dad, calls Tom “a team player that anyone who wants to be rich needs to add to his team.” In Robert Kiyosaki's book, The Real Book of Real Estate, Tom, himself, authored Chapters 1 and 21 of this book. Tom also contributed to Robert Kiyosaki's Rich Dad Success Stories, Who Took My Money, Unfair Advantage, Why the Rich Are Getting Richer and More Important Than Money: an Entrepreneur's Team. Tom has written many articles for publication in major professional journals and online resources and has spoken to thousands throughout the U.S., Canada, Europe and Australia. Tom has also used his superior relationship and team building skills to advise the Canadian market in the art of investing in the U.S., by contributing to Philip McKernan's South of 49 and Fire Sale. For more than 30 years, Tom has devised innovative tax, business and wealth strategies for sophisticated investors and business owners in the manufacturing, real estate and high tech fields. His passion is teaching these innovative strategies to the thousands who come to hear him speak. He has participated as a key note speaker and panelist in multiple roundtables, and led ground-breaking tax discussions challenging the status quo in terms of tax strategies. Interview Links: Tom Wheelwright website: https://tomwheelwright.com/. Wealthability: https://www.wealthability.com/. Subscribe To Our Weekly Newsletter: The Wealth Dojo: https://subscribe.wealthdojo.ai/ Download all the Niches Trilogy Books: The 21 Best Cashflow Niches Digital: ⁠⁠https://www.cashflowninjaprograms.com/the-21-best-cashflow-niches-book⁠⁠ Audio: ⁠https://podcasters.spotify.com/pod/show/21-best-cashflow-niches⁠ The 21 Most Unique Cashflow Niches Digital: ⁠⁠https://www.cashflowninjaprograms.com/the-21-most-unique-cashflow-niches⁠⁠ Audio: ⁠https://podcasters.spotify.com/pod/show/21-most-unique-niches⁠ The 21 Best Cash Growth Niches Digital: ⁠https://www.cashflowninjaprograms.com/the-21-best-cash-growth-niches⁠⁠ Audio: ⁠https://podcasters.spotify.com/pod/show/21-cash-growth-niches Listen To Cashflow Ninja Podcasts: Cashflow Ninja ⁠https://podcasters.spotify.com/pod/show/cashflowninja⁠ Cashflow Investing Secrets ⁠https://podcasters.spotify.com/pod/show/cashflowinvestingsecrets⁠ Cashflow Ninja Banking ⁠https://podcasters.spotify.com/pod/show/cashflow-ninja-banking⁠ Connect With Us: Website: http://cashflowninja.com Podcast: http://resetinvestingsecrets.com Podcast: http://cashflowinvestingsecrets.com Podcast: http://cashflowninjabanking.com Substack: https://mclaubscher.substack.com/ Amazon Audible: https://a.co/d/1xfM1Vx Amazon Audible: https://a.co/d/aGzudX0 Facebook: https://www.facebook.com/cashflowninja/ Twitter: https://twitter.com/mclaubscher Instagram: https://www.instagram.com/thecashflowninja/ TikTok: https://www.tiktok.com/@cashflowninja Linkedin: https://www.linkedin.com/in/mclaubscher/ Gab: https://gab.com/cashflowninja Youtube: http://www.youtube.com/c/Cashflowninja Rumble: https://rumble.com/c/c-329875 --- Send in a voice message: https://podcasters.spotify.com/pod/show/cashflowninja/message

Tax-Free Wealth and Strategies Used By The Rich | Tom Wheelwright

The FI Show

Play Episode Listen Later Jun 12, 2024

How much money you make is certainly an important factor for early retirement. However, it's not the most important factor. The amount you keep is truly what matters. This is largely driven by how much you spend and how much you give to the government. Giving to the government is a reference to your tax bill and that's where Tom Wheelwright comes in. Tom runs WealthAbility where he helps business owners permanently lower their tax bill. Many people are giving away thousands of dollars that are rightfully theirs if they fully utilize the tax code. If you found this episode helpful, please share it with a friend! Links from The Episode WealthAbility Book: Win-Win Wealth Strategy Book: Tax-Free Wealth YouTube Interview https://youtu.be/EEdwspnvQDo Join the Community We'd love to hear your comments and questions about this week's episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Grab the Ultimate FI Spreadsheet Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please subscribe and leave a rating/review! >> You can do that by clicking here

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Taxing Unrealized Gains And Other Criminally Insane Proposals - E865 - CFC

Cash Flow Connections - Real Estate Podcast

Play Episode Listen Later May 30, 2024 31:42

The elections have everyone's attention these days, and for a good reason… Both sides are proposing some big tax changes that could really shake things up for us investors. Now, not 100% of what's being proposed is going to be implemented… But we need to be prepared in terms of what happens on either side of things. That's why I'm so excited to have Tom Wheelwright back on the show. He's a tax and wealth expert who understands this complicated stuff inside and out… And today, he's shared his perspective on… …what's currently being proposed, how it's going to impact the real estate investors, and how to be prepared for it. Tom Wheelwright is the founder and CEO of WealthAbility, the first CPA-based franchise with a proprietary strategic tax planning process for entrepreneurs. He is also the author of “Tax-Free Wealth” and a Rich Dad Advisor to Robert Kiyosaki. He explains how one of the most problematic pieces of Biden's proposals is the idea of… “taxing unrealized gains” Which means, you'll be taxed on the paper gains of your non-liquid assets like real estate investment or business valuation… And other assets like retirement accounts or home value…before liquidation. I KNOW… It doesn't make sense. In fact, it's actually destructive for the economy as this could potentially lead owners to liquidate part of their holdings to pay these taxes…disincentivizing long-term investment. But that's just one piece. There are many other insane parts of the proposals that will impact your returns, like… - Eliminating 1031 exchanges or severely limiting their use - Doubling the capital gains tax rates - Taxing all business income of small businesses instead of just taxing profits Now… We obviously can't control what happens. But if you'd like to be prepared for the worst scenario, Tom shares some really good insights to save and grow your wealth. You don't wanna miss out on it. Take Control, Hunter Thompson Resources mentioned in the episode: Tom Wheelwright Link to previous episode with Tom Website Book Podcast Interested in investing with Asym Capital? Check out our webinar. Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors. Tired of scrambling for capital? Check out our new FREE webinar - How to Ensure You Never Scramble for Capital Again (The 3 Capital-Raising Secrets). Click Here to register. CFC Podcast Facebook Group

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Mastering the Art of Taxes: How to Turn Tax Laws into Opportunities for Wealth with Tom Wheelwright // EP 113

Hustle Inspires Hustle

Play Episode Listen Later Feb 6, 2024 43:53

In this podcast episode, Alex Quin hosts Tom Wheelwright, a renowned entrepreneur, CPA, and author of "Tax Free Wealth," on the "Hustle Inspires Hustle" podcast. Alex begins by emphasizing the podcast's focus on entrepreneurship and self-development, highlighting the valuable insights listeners can gain from top entrepreneurs and business leaders. Tom shares his journey from growing up in a Mormon family to becoming a missionary in France, which he credits as the start of his entrepreneurial spirit. He recounts his career progression, including his time at Ernst & Young, running his own CPA firm, and his collaboration with Robert Kiyosaki of "Rich Dad Poor Dad" fame.Tom discusses the importance of understanding and leveraging tax laws to one's advantage, debunking the myth that the wealthy evade taxes through illegal means. Instead, he explains that the tax system offers legal avenues to reduce tax liabilities. He emphasizes the need for entrepreneurs to change their mindset about taxes, seeing them as opportunities rather than burdens. Tom also stresses the importance of proper financial management, including hiring competent professionals like CPAs and bookkeepers.Addressing a community question, Tom clarifies misconceptions about investing in real estate within qualified retirement plans, advising against it due to better tax benefits outside these plans. Finally, Tom expresses his desire to be remembered as a great dad and grandfather and professionally as someone who simplifies complex topics. He directs listeners to his social media platforms and his company WealthAbility for further tax-related advice and services.Wisdom NuggetsHarness the Power of Knowledge: Understanding and leveraging tax laws can significantly enhance financial success. This emphasizes the importance of education and awareness in financial planning, particularly for entrepreneurs seeking to maximize their wealth and minimize tax liabilities.Value Professional Expertise: Hiring competent professionals like CPAs and bookkeepers is crucial in managing finances effectively. This underlines the importance of seeking expert advice and assistance in areas outside one's core competencies, ensuring better decision-making and financial management.Shift Your Perspective: Viewing taxes as opportunities rather than burdens can open doors to significant financial benefits. This mindset shift is key for entrepreneurs and individuals alike, encouraging them to explore legal avenues within the tax system to reduce liabilities and increase wealth.Cultivate Trust and Verification: Relying on financial advisors requires a balance of trust and verification. This approach stresses the importance of confidence in one's financial partners while also advocating for personal due diligence and understanding, ensuring that financial strategies align with personal and business goals.Power Quotes"I'm a book nerd, and every time I read a book that brings me immense value, I run to interview the authors." - Alex Quin"Changing your mindset about taxes is the first step to handling them effectively." - "If you do things for yourself, you may get some tax benefit, but doing things for other people gets you a lot more tax benefits.""Being a great dad and grandfather is my life's most important goal." - Tom Wheelwright "Taxes are either going to make you rich or make you poor." - - Tom Wheelwright"Every dollar you bring in is either taxable or not, every dollar you spend is either deductible or not." - Tom Wheelwright"The biggest expense for entrepreneurs is taxes." - Speaker Tom Wheelwright, underscoring the importance of tax planning for business owners. - Tom WheelwrightResources MentionedHustle Inspires HustleTax Free WealthPolo's Day at the Park The Digital Marketing Dictionary WealthAbilityMeet Our Guesthttps://www.instagram.com/tom-wheelwright/See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

486: Should We Eliminate the Property Tax? Featuring Tom Wheelwright

The Ultimate Advisor Podcast

Play Episode Listen Later Jan 29, 2024 40:03

California is strengthening protections for tenants. I discuss. It's already a disadvantageous state for real estate investors. My Property Manager had my tenant's $1,550 rent payment stolen from his drop box last year. He expects me to take the loss. I won't. Who is liable for the payment - the thief, bank, tenant, manager, or the investor (me)? Tom Wheelwright, CEO of WealthAbility, joins me. We discuss the role of property tax in funding essential services. The conversation touches on the regressive nature of property tax, alternatives to it, and the importance of understanding tax strategies. US taxes of all types keep ratcheting higher over time. But they're still lower than most world nations. The episode also considers the impact of elections on tax policies, emphasizing the need for informed voting regarding taxation. You need a tax professional that knows how to find you all the deductions for real estate investors here: GetRichEducation.com/Tax Timestamps: Landlord-Tenant Relationships (00:00:00) Discussion on landlord-tenant relationships, stolen rent payment, and potential elimination of property tax. New Renter Protections in California (00:02:30) Overview of new laws in California regarding upfront deposit amounts, eviction protections, and banning of crime-free housing policies. Options for Homeowners in California (00:03:50) Details about new housing laws in California, including more options for accessory dwelling units and their impact on the housing crisis. Stolen Rent Payment Dilemma (00:05:53) Narrative about a stolen rent payment, liability concerns, and the property manager's proposed resolution. Feasibility of Eliminating Property Tax (00:13:45) Discussion on the possibility of abolishing property tax and its funding of schools, fire departments, and police services. Property Tax Funding (00:18:37) Insights into the funding of property tax and its allocation to schools, fire departments, and police services. Property Tax and Its Impact (00:19:37) Discussion on the challenges and implications of property tax as a wealth tax and its regressive nature. National Property Tax Rates (00:20:40) Exploration of the national average property tax rate and its impact on property value and inflation. Proposition 13 in California (00:21:34) Analysis of the impact and benefits of Proposition 13 in California, which limits property tax increases for homeowners staying in the same home. Alternatives to Property Tax (00:23:27) Exploration of alternative taxation methods, such as transaction tax and the potential elimination of property tax in favor of a transaction tax. Primary Residence Capital Gains Tax Exemption (00:25:16) Insights into the primary residence capital gains tax exemption and its impact on homeowners, including the need for inflation adjustments. Future Taxation Trends (00:27:24) Discussion on the potential for heavier taxation and comparisons with taxation policies in other countries. Potential New Tax Types (00:29:16) Exploration of the possibility of new tax types, including the concept of a poll tax and its implications. Value Added Tax and Tax Reduction Strategies (00:31:17) Insights into the potential implementation of a value-added tax in the United States and strategies for tax reduction through understanding the tax code. Selecting the Right Tax Advisor (00:33:00) Advice on choosing a qualified CPA and the importance of having a knowledgeable tax advisor for effective tax planning. Election Year and Taxation Policies (00:34:54) Analysis of the potential impact of the upcoming election on taxation policies and the importance of considering tax implications when voting. Property Tax and School Funding (end) Perspective on property tax funding for schools and the broader community impact, addressing objections to paying property tax. Property Tax (00:37:07) Discussion on the controversial nature of property tax and its impact on property ownership. Tax Strategy and Deductions (00:38:13) Importance of finding the right tax professional for real estate investors to maximize deductions and benefits. Disclaimer (00:39:25) Legal disclaimer regarding the information provided in the podcast and the need to consult appropriate professionals for personalized advice. Resources mentioned: Show Page: GetRichEducation.com/486 Get matched with the right tax pro: www.GetRichEducation.com/Tax Tom's book, “Tax-Free Wealth”: https://www.amazon.com/Tax-Free-Wealth-Massive-Permanently-Lowering/dp/1612681204 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Complete episode transcript: Keith Weinhold (00:00:00) - Welcome to GRE. I'm your host, Keith Weinhold. California and new renter protections. My own property manager had my tenants rent payments stolen from his drop box, and he wants me to take the loss. Then Tom Wheelwright joins me for a discussion about can we abolish the property tax today on get rich education? If you like the Get Rich Education podcast, you're going to love our Don't Quit Your Daydream newsletter. No, I here I write every word of the letter myself. It wires your mind for wealth. It helps you make money in your sleep and updates you on vital real estate investing trends. It's free. Sign up and Get Rich Education. Com slash letter. It's real content that makes a real difference in your life, spiced with a dash of humor. Rather than living below your means, learn how to grow your means right now. You can also easily get the letter by texting GRE to 66866. Text GRE to 66866. Speaker 2 (00:01:06) - You're listening to the show that has created more financial freedom than nearly any show in the world. Speaker 2 (00:01:13) - This is get rich education. Keith Weinhold (00:01:22) - Welcome to GRE! From Montpelier, France, to Montpelier, Vermont, and across 188 nations worldwide. And Keith Weinhold, in your listening to get rich education across the United States, it's fortunate for us that states with landlord friendly policies also tend to be those states where the numbers make sense to. And for landlord tenant relationships, it's the state and local policies that often trump the national ones. Now, of course, in residential real estate or any real estate for that matter. I mean, you can make money in all 50 states, of course, but there's a reason that we generally avoid certain places, and that includes California. One difficulty in California has long been the process of getting a prompt eviction. It can be hard to do that even if you have just cause, where it can take months and months, or even longer than a year to get an eviction. Let's listen in to this minute and a half clip on how tenants rights are being strengthened in California. Just a little more. Speaker 3 (00:02:30) - Well, every month, renters in California spend a hefty portion of their paychecks on housing. And as we kick off, 2024, seven is on your side with the new laws. Renters should know to save some money and also protect themselves against eviction. Before you lock in an apartment, you usually need your first month plus a security deposit in advance. Well, now the amount you have to pay up front could potentially drop by thousands of dollars. Speaker 4 (00:02:54) - Landlords can now charge just one month of security deposit up front, and previously they could charge two months if the unit was unfurnished or even up to three months of the unit was furnished. Speaker 3 (00:03:05) - Renters are also getting new eviction protections. Soon, it will be harder for landlords to evict a tenant under the no fault, just cause policy. Currently, a tenant can be evicted if the landlord or landlord's family is going to move in, but starting April 1st, the landlord or their family will have to move in within 90 days and live there for at least a year. Speaker 3 (00:03:24) - Local governments are also now banned from crime free housing policies. Cities and counties can't mandate penalties or evictions against people who have been charged, convicted or had police called on them. The ban also applies to the family members of tenants. Now, renters are not the only ones benefiting from the new housing laws. Homeowners will now have more options when it comes to so-called granny flats or accessory dwelling units. Speaker 4 (00:03:50) - Now they can separate and either build or sell an Adu and accessory dwelling unit and sell that separately as a condo. Lawmakers think that that's something that's going to help the state's housing crisis. Speaker 3 (00:04:02) - And with housing prices sky high, this could give many would be homebuyers the opportunity they need to afford a starter home. Keith Weinhold (00:04:09) - Yeah. So there it is in California this year. Lower upfront deposit amounts for tenants and more protection from evictions. California landlords, they can now charge just one month of security deposit upfront. That's the most they can charge. Previously, they could charge two months if the unit was unfurnished and up to three months security deposit if the unit was furnished. Keith Weinhold (00:04:36) - Now, on the flip side, you've got to give California credit for helping homeowners, existing homeowners. They will now have more options when it comes to so-called ADUs accessory dwelling units, which some people call granny flats, because now they can separate and either build or sell in Adu. They could sell that separately as a condo, and that might help California's affordable housing crisis and the housing shortage crisis that could give more California homebuyers the opportunity that they need to afford a starter home. So that is better for first time homebuyers in California. And whether you live there or not, this matters. California has the same population as all of Canada in between 11 and 12% of all US residents are indeed Californians. Let me tell you about a completely weird situation that I have with one of my property managers. Now, I own rental properties in different states around the US, and each of those local markets has their own manager, and you might have this situation as well. Or perhaps that's what you would soon like to do to have this situation of having properties in multiple markets. Keith Weinhold (00:05:53) - Well, about 12 months ago now, I got a message from a property manager that manages a bunch of single family homes for me in this one particular area, and he let me know that I was not going to be seeing a rent payment for one of my tenants. And that's because the tenant paid the rent, but they paid it with a paper money order that was left in the manager's overnight drop box and the mail from that box. Was broken into by a thief and stolen. And then apparently the thief converted the money order at the bank by in this house. Unbelievable. By waiting out the name of the money order recipient, which I guess would have been the manager. And then the thief wrote in his own name on the Wite-out. Now there were three tenants that had their payments stolen from my property manager like this. So mine was one of the three from my tenant. And the thief also broke into two other real estate offices around the same time. So the thief broke into three offices total, apparently. Keith Weinhold (00:07:01) - Now, the question that we're leading up to here is, I tell you more about this. Who is liable for this missing payment? And really, there are five parties here where you could give an answer. Is it the thief, the manager, the tenant, the bank or me? The investor who is liable for that stolen payment? Who should make good on it? Who will make good on it? Now, the amount that we're talking about is a stolen rent of $1,550. Okay. This is a rental single family home that I have. So I've been out this $1,550 for about a year now. And by the way, the tenant that had the rent payment stolen a full year ago, they still live there in their rent is now 1750, but it was 1550 them. Now I'm only making a thing of this a full year later and starting to ask my manager to make me whole now. And that's just because I've got a lot going on in life and $1,550. That's just not enough to make that big of a deal over. Keith Weinhold (00:08:03) - But when life took a pause and I got to thinking about this some more, the principle of it is really bothersome. Wouldn't it bother you? I mean, if I let others like my manager get away with something like this, then I could get walked all over in other ways. Now, when I requested that the manager paid me because it was their drop box that it was stolen from, really, the only answer that they want to give me is that they can't pay because they don't have insurance to cover that type of loss. Well, I don't either. Now, should the bank be the liable party here for processing a payment where the pay to name was whited out, and then the criminal wrote over it with his name? And by the way, the criminal used his real name. And that's also part of how he got caught, which is unbelievable. And they also, though they do know who the criminal is because they have video surveillance of him at the bank depositing the money orders. I mean, how should he have been able to catch them? But the process of trying to get the criminal to remedy this or the bank to remedy this, those approaches have not worked. Keith Weinhold (00:09:14) - And I think that the manager wants me to take the loss and pay because he doesn't want to take the loss. And you know, something? Admittedly, between the tenant, the manager and I, I'm probably the one that could most afford the loss, but that does not make it right now. At last, check the property manager who keeps refusing to pay up. They propose something ridiculous that I want to share with you in a moment. You're not going to believe it. Well, as you know, you have a written management agreement when you enter in an agreement to have your manager manage your property for you and that management agreement that's between you, the investor and your manager, just those two parties. And as we know, one job that your manager does for you is that they collect the rent for you. So I figured what I would go do is look at my management agreement, and I'm going to go cite that line where it says that the manager collects the money for the property owner. Keith Weinhold (00:10:16) - But would you believe it? Nowhere in our agreement does it state that the manager collects the payment for the owner. So here's one lesson. The next time you're signing a new management agreement, see that that line is in there. I think it's just kind of easy to assume that it is. But, you know, those agreements, they're typically written by the property management company. So they might write it in ways that protect them. But here's the thing. The manager still doesn't want to pay $1,550 and was stolen from the drop box. They had proposed something that seems wild to me when I said I'm not going to let go. They told me that their plan is to ask the tenant to pay by adding an extra 150 or $200 to their monthly rent payment until the deficit is paid up. So that would be what, something like eight months of payments. Now, I doubt that the tenant would agree to something like that. If the manager is accepting rent in a drop box, it seems like it's the manager's responsibility to make sure that it's secured. Keith Weinhold (00:11:20) - So to me, of the five parties involved here, it should be either the criminal, the bank for processing the payment that way, or the manager that should be held liable. One of those three parties, not the property owner and not the tenant. So you've got to believe that I consider firing this property manager and using someone else. And by the way, whenever you have to do that, if you ever do have to do that, and I've had to do it before, you can ask the provider that sold you the property for new property management recommendations, or you can find some new property managers by checking online forums with other clients that have actually used property managers. If you replace your manager. What that does is that your manager, they're going to lose more than just that 8 to 10% monthly management fee. They'd also lose future leasing fees. They lose any arrangements that they have with service providers to service your property, like plumbers and electricians. When it comes time for you to sell your properties that your manager manages for you, that manager might also lose the ability to collect referral fees at that, manager has the real estate license so you can make firing your manager hurt them more than you might think. Keith Weinhold (00:12:40) - Now, I don't like hurting anyone in business. That's why I'm trying to find a constructive way to resolve this. But the manager has had a long time to make this right with me. They're probably just hoping I would forget about the whole thing. The property manager does not want to take the loss, and I will not either. I'll keep you updated on how this weird situation concludes here, but yeah. Hey, I'm an investor just like you. I want to dig in and get involved sometimes and see if something like a stolen rent payment happened with a stock that you own. I mean, you might take the loss there and you wouldn't even know that it happened. So I like real estate investing trends agency with a manager. I don't have the day to day involvement responsibility, but yet I can see a lot of what's going on with the monthly statements that they send me. Or if I have a concern, I know who I can directly contact to remedy something. And if you're a new real estate investor, please be mindful that this situation with my manager and the stolen rent payment is not typical at all. Keith Weinhold (00:13:45) - In 20 years of doing this, I have never had a situation like this. In a few minutes here, we're going to discuss how feasible it is that America could eliminate the property tax altogether. And our guests. He's also going to tell us why he's been seeing more people like you paying tax on the gain from the sale of your primary residence. Hey, would you like to see me at breaking down real estate investing concepts on a whiteboard? Yes, a magic marker in hand with a whiteboard and an easel. Well, you can watch me do that from the comfort of your home. Over on our YouTube channel, we recently launched our explained series, and I begin it by breaking down basics and just showing you an actual net worth and actual cash flow statement, and then figuring out how you can take those and learn exactly when you can quit your job and retire. It's easier to do the numbers over there than it is here on an audio format, and later I'll whiteboard some more advanced concepts for you soon, like explaining an inverted yield curve. Keith Weinhold (00:15:00) - Watch me on the whiteboard in our explained series. It is free on YouTube right now and our channel is pretty easy to find because it's called get Rich education. Eliminating the property tax. Next I'm Keith White hold. You're listening to get rich education. 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How the tax benefit of doing this can offset capital gains and your W-2 jobs income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 66866. Oh, and this isn't a solicitation. If you want to invest where I do, just go ahead and text family to six, 686, six. Speaker 5 (00:17:02) - This is author Christine Tait. Listen to get Rich education with Keith Reinhold and don't quit your Daydream. Keith Weinhold (00:17:19) - A renowned tax and wealth expert is back on the show with us today. He's also a CPA, and he's the CEO of a terrific tax firm called Wealth Ability. He's the best selling author of the Mega-popular book Tax Free Wealth, which you may very well want to check out again, because he just updated that book with a third edition. I have the original tax free wealth on my bookshelf. Keith Weinhold (00:17:40) - Welcome back to Dr. Tom Wheelwright. Thanks, Keith. Always good to be on your show. Tom, we have a lot of real estate investors listening. Why don't we talk about property tax? It applies to one whether they own income, property or whether they own a primary residence. Tom, I thought about the discussion that we were going to have today. I was thinking about it yesterday. And you know what happened? I looked out my window and the garbage had just been picked up from the curb, and this was shortly after my driveway was plowed of snow. Okay, now, if an alien came down from another planet and we described that there's a property tax in the United States, so we'll probably believe, oh, all right. Well, they're going to like, pick up your trash and like, plow your driveway for you and everything for that property tax you pay. It's like, oh no. Well those are separate services that I pay. So really what I'm getting at is maybe more philosophically in big picture, should there be a property tax? That's a big question. Keith Weinhold (00:18:37) - Yeah. But let's do talk about what property tax funds. So property tax funds schools. It's the primary funding mechanism of schools. If you talk to an old timer they still call it school tax sometimes. Yeah it funds schools. It funds fire departments. It funds the police. So those are the three big services that have funds. This is why, by the way, Keith, when there was that group in Seattle that took over that section of the city and the government refused to send to kick those people out. I don't know if you remember this a couple of years ago. And I'm going, wait a minute, why are we paying property taxes? Because the police force and the fire department were being paid by property taxes on the buildings that had been taken over by this renegade group. Wow. And so I have a commercial property. I pay a huge property tax on that commercial property doesn't house children, so I don't send children to school, but I still pay tax for education. Why? Because I need educated employees, so I'm happy to do that. Keith Weinhold (00:19:37) - I pay for fire protection. I pay it for police protection. I think what the money is used for generally is fine. I don't have an issue with that. The challenge I have with the property tax is twofold. One is it is a true wealth tax. If your property goes up in value, you pay more tax and it's a tax on inflation, because if you're a property goes up in value because of inflation, you pay more tax. And then second of all, you're out to sell your property. But it's also a regressive tax. So people who have no more income, they're on fixed income, they're Social Security. They have a pension plan whatever that their property goes up because of inflation, not because it's a better property and they're paying more tax even though their incomes not going up. That's my biggest challenge with property tax. That's really a good point. I had never thought about it that way before. The property tax can be a regressive tax. Therefore you pay a higher rate with a lower income, which is what a regressive tax means. Keith Weinhold (00:20:40) - I know that some jurisdictions try to help senior citizens out with that. Maybe you both say like the first 100 K of assessed property value is exempt. But yeah, on basis you're right about that. With it being a regressive tax. Tom, I kind of look around the landscape. We deal with a lot of markets and properties and providers nationwide here at gray, and I seem to see a national effect of property tax rate of about 1%, something like that's pretty common 1% of value on a 500 K property. You're going to pay about $5,000 in property tax. Of course, that varies substantially. New Jersey is a really high one. So the states in the Deep South are really low ones. But what are your thoughts about that 1% average national effect? Think about that tax rate. Let's say you bought that property for $50,000. You bought the property for $50,000 based on your income. You bought it for $50,000. Now, because of inflation, it's $500,000. Now it's really a 10% of what you bought it for. Keith Weinhold (00:21:34) - So it's not really 1% anymore. It's 1% of the price value. It's not 1% of what you paid for it. This is where California with prop 13 they apt their property tax. Right. If you didn't move into a new property. I loved that proposition. Frankly, I love prop 13 because what I said was, look, if you're staying the same home, your property tax isn't going to go up. Because you get no more value out of it than you did when you bought it. So why are you getting more tax even though you're not getting more value? That makes no sense. I'm not a big fan. You know, like Texas has a they rely heavily on property. Remember we have three types of taxes. We have an income tax. We have a transaction tax which the biggest one is sales tax. But it's also excise taxes. And then we have property tax. And property tax and estate tax are the only two wealth taxes we have. And property tax is a true wealth tax. Keith Weinhold (00:22:29) - Why is it allowed. Why can we have a property tax in our hometown. But we can't have a federal property tax because Constitution doesn't allow a federal property tax. But our state constitution probably does allow a state property tax. And so robbery taxes are really interesting. I talk about in tax free wealth. Tax wealth has a chapter on property sales and property tax. It's my least favorite tax because again A it's regressive and B it's a tax on something I've never realized. The only benefit I have is that I live in it. But that benefit's not gone up even though the property tax goes up. You brought up so many interesting things there. Sure, that proposition in California is what kept people staying in their homes for a very long time. But we think about property tax and should there even be one? As we ponder that big question, what do other nations do? Because a lot of times I know you look at foreign nations tax policies. Most localities. A lot of them have a local property tax. Keith Weinhold (00:23:27) - I don't think it's uncommon. What's interesting to me is that Missouri is looking at getting rid of their property tax and putting in a transaction tax instead. So in other words, you don't pay a tax for owning the property. You only pay a tax when you sell it. Well, that actually makes more sense. You know, in previous episode we talked about more versus United States. We talked about that whole idea of a wealth tax and realized gain. And some states do this already. California does this, Hawaii does this, Pennsylvania does this where you have a tax when you sell the property, an excise tax when you sell the property, or a transfer tax, if you will? That makes some sense because you did get the money. You actually have the ability to pay the tax. It's not coming out of your earnings. It came out of the sale of the property. So it's a tax on the sale. Frankly, if I had to choose, I would probably choose the transaction tax. Keith Weinhold (00:24:23) - I mean, I would choose to have very little tax. I think we need fire. We need police. Those two things we absolutely need we need roads. We should have taxes to pay for those school. I'm a fan of school choice. And should we have property tax pay for those? Or is that something that we ought to pay for some other way? I don't know, there is argument that, again, that should be maybe you ought to pay that out of sales tax or a transaction tax. Yeah. I think I'm feeling your vibe on that one time that a transfer tax of real estate is somewhat more palatable than this ongoing property tax that you have to pay, because the transfer tax probably is realizing a gain there. Along with that, even though we probably don't like that piled on top of ongoing property tax, for sure. We think about property taxes, something that applies to every homeowner, whether they own income, property or not, is the pretty well known primary residence capital gains tax exemption for quite a while. Keith Weinhold (00:25:16) - That's been 250 K if you're single and 500 K if you're married. Can you tell us more about that and where the direction of that's going? And is that adjusting with inflation or what are your thoughts. Yeah, it's not adjusting for inflation unfortunately. It's interesting. Some things adjust for inflation. Some things don't. Tax brackets adjust the exclusion for your primary residence doesn't. And your deduction for miles driven for charity doesn't adjust for inflation. But your deduction for miles driven for work does adjust for inflation. So it's very interesting to see what does Congress say. We're going to adjust for for inflation. What they don't. That came into effect under Bill Clinton prior to his presidency. You had to actually put your new house, had to be worth more than your old house is very much like a 1031 exchange where as long as you bought a new house that was equal to or greater in price than the sales price of your old house, you paid no tax but the minute you went down. So when, for example, you're retiring and you decide, well, I don't need all this house, my kids are gone, I'm going to go move into a condo on the golf course, or I just don't need that much space. Keith Weinhold (00:26:25) - Then you had to pay tax. What happened in the Clinton era was we actually got this exclusion, which is as long as you live in the house for two years, two out of the last five years, you get 100% exclusion on the gain, up to 250, like you said, 250 single, 500 joint. I would love to see them index that. I think it needs to be indexed. Frankly, they need to adjust it retroactively because too many people got caught in this last run up where for the first time ever, I saw a lot of people paying tax on the gain from the sale of their house. Yeah, that's something that you hope that you don't have to do. We'll see if and when they do adjust that for inflation. I'm not always talked about property tax bill. Why don't we open it up somewhat more and talk more about what we discussed the last time you were here on the show with us? Well, I think we already learned then whether Americans, just over time, over the long term, are more likely taxed or more heavily taxed. Keith Weinhold (00:27:24) - It seems like they're always piling on more and more taxes. What are your thoughts with where we're going on lighter taxation or heavier taxation? I said, well, we rarely get taxed less. We're actually taxed less than just about any other country. Just to be clear, we pay a lower share of our income in taxes than just about any other country. But of course, we have much, many fewer benefits. We don't have national health care. We have Social Security, but it's a small amount, right. In France, remember, they had these big protests, right? Because the French president raised the retirement age from 62 to 64. Why were so many people protesting that? Well, it's because in France the salaries aren't enough to keep up. And so they're relying on that. They can't save up and say, I'm going to retire earlier because I've saved up money. There's not enough income for them to save. So they're relying on the government to save for them. That was a hard thing for them. Keith Weinhold (00:28:18) - We have a hard time understanding that in the US because our tax rates are so much lower. France, for example, I was. Reading. That's the other day. 50% of GDP goes to taxes in France. In the US it's about 26% of GDP. So we're almost half of what percentage of our GDP goes to taxes. So they're the highest. What's happening is you're seeing Germany. There's this going up Korea. Theirs has gone up, Japan theirs has gone up. And the US, they expect ours to be up. It's 28% of GDP within a few years. So it's all relative, right. The problem is, is that the taxes are more and more as a proportion of our gross domestic product. If you think the government should stay out of our lives, then you're on the wrong end of that stick, because that means that the government's getting more and more involved, and more and more money is being spent by the government instead of the private sector. Well, Tom, you've been here on the show with us a lot of times. Keith Weinhold (00:29:16) - We've talked about how your rental income gets taxed. We've talked about capital gains tax and property tax and sales tax and income tax, one tax type we haven't talked about. When we think about whether things just get worse as the government piles on more taxes, is there any threat in your mind of a tax for those that don't know what that is? That's basically a head tax. That's a tax that's imposed on you just for existing. Is that a possibility? Zionist capitation tax and not a decapitation tax. It might feel like one. Yeah. It's, uh, commonly called the poll tax write poll. As in poll. You go to the polls that the number of people that is actually allowed, the government could impose that that is allowed under a constitution, a poll tax. Great Britain has a poll tax. So it's not unheard of. I haven't heard a lot of people talk about. The problem is, is that a poll tax is a tax on voters. And we know politicians don't want to put a tax on voters. Keith Weinhold (00:30:16) - Right. So where's the incentive to vote? They're more likely to put a tax on corporations who don't vote. I'll tell you the favourite tax. The favourite tax is to put a tax on out-of-towners. Somebody who's coming into your place like a travel tax. One of the key policy points of any tax unit is you want to export your tax to people who don't vote for you. So you're always trying to put the tax on somebody who doesn't can't vote for you. Because if you put on people who do vote for you, you will soon lose your job. Interesting point. That's why you see taxes on Ubers and taxis and hotels, resort taxes. You see those kind of tax skills are basically export tax, right? They're taxing people who don't live and vote in your state or in your location. A poll tax would be a tax on people who do live in your state or location. I have a hard time seeing that one coming down the line. More likely is you really wanted us to be more competitive with the rest of the world. Keith Weinhold (00:31:17) - We'd have a value added tax in the United States, we do not have one. And if you wanted to make us more competitive with the rest of the world, if you really want to raise funds or you want to pay off the deficit, or you want to get rid of an income tax, the best way to do it would be a value added tax. Well, maybe you, the listener, just have a shred of a little something to be thankful for. There are tax types you've heard of that we don't actually have yet. There actually are some remaining. It seems like they'll all get used up. Europe has a. Europe uniformly has a 20% value added tax that just goes to increases the price of your meals at a restaurant, increases the price of every product you buy. That's a value added tax. That's a national sales tax that is common in the rest of the world. We're the only major developed country that doesn't have one. Well, at least in Europe, they're not asking that. Keith Weinhold (00:32:06) - When you get your restaurant meal bill that you add a tip onto the tax about, like what's happening a lot of times here. And I think a lot of people aren't even aware of that. That's another absurdity. Yeah. Another absurdity of being a consumer in the United States today. Tom, you're really an expert in helping people understand that there are so many parts of the tax code out there for reducing one's taxes. The tax code, mostly most of the pages are about tax reduction. There are just a few pages about the tax tables. And then basically the rest of the tax code says you have to pay the tax in those tables if you don't do these other things. So tell us more about how one and everyday people can learn and get informed by being matched up with the right professional, so they can learn about all those exceptions to paying those taxes in the tables. I appreciate your promotion of tax free wealth because that's the starting point. You really do need to understand the concepts, and the concepts are all in tax free wealth. Keith Weinhold (00:33:00) - Okay, so really inexpensive way for you to get an education. Once you've got the education though, you do need a team around you. And what I think the most important person, well outside of your bookkeeper, who I actually think is the most important person of that team, I think your number two person is your CPA. And I'm going to be very specific. There are a lot of people who hold themselves out as tax advisors, and I would not touch them with a ten foot pole. Whether it's I don't want a financial planner giving me tax advice, nor do I want a CPA, give me financial advice. Let's have a specialist do the specialist work. I don't want an enrolled agent. And the reason I don't want enrolled agent. If I'm really simple, that's great. But remember enrolled agent, they have very little education. They took a test. An IRS test that takes a couple of hours. That's all they did. If you're a business owner, you're a serious investor. You need a CPA and you need a CPA who cares more about you than they do about protecting themselves from the IRS. Keith Weinhold (00:33:59) - This is one of my big complaints about some of my fellow CPAs is they seem to be so concerned about an audit. And my question is, if you're so concerned about an audit, does that mean you're afraid of the IRS? And if your CPA is afraid of the IRS, it's probably time to get a new CPA. That's right. Well, please, I tell you, we have a resource on our website where you can connect with Tom's team and get messed up with the right advisor. That is it. Get rich education complex. But like Tom said, a good thing to do is read his book, Tax Free Wealth first. That way you'll be able to ask the right questions so you can get the right answers from the right professional that you can be messed up with. Tom, do you have any last thoughts? Here is we're still relatively new in a year here when it comes to taxation, and one taking their plans forward through the year. Let's remember that we have an election coming up this year. Keith Weinhold (00:34:54) - And one of the biggest issues in this election is going to be taxation. There's certain politicians that would like to take the 2017 tax reductions and extend them. There are others that would like to eliminate them and actually raise taxes. A couple of years ago, we had a proposal called Build Back Better. Great. Started as a $6 trillion proposal and ended up being $2 trillion and change the name to, quote unquote, the Inflation Reduction Act, or as I like to call it, the Inflation Enhancement Act. But that's going to be back. So you may love one party. You may hate the other party. Just know that when you go to vote, think about you are voting for a tax increase or a tax decrease depending on who you vote for. Look at their policies. Look at what they propose. Look at what they've been talking about. Don't believe for a second that they're gonna all of a sudden say, well, we're not going to raise taxes, when in fact they're looking at you and they're going, is that my money in your pocket? It is a presidential election year. Keith Weinhold (00:35:59) - The good news is you now have a way for your voice to be heard this year in taxes are part of that, Tom. We're right. It's a great having you back on the show. Thanks, Keith. Sometimes I hear people that pay property tax but yet don't have any children themselves. They say that, well, since property tax often funds schools that they're opposed to paying it. Well, let's look at it this way. I'm a person that doesn't have any kids yet. And even if I never do have kids, well, when I was a kid myself, I attended public school. So therefore I was the beneficiary of adults paying property tax to fund the school that I went to. So therefore, when you think of it in those terms, it's more palatable for a, I suppose, non father like me to pay it forward, pass it along and pay school tax for others. So though there may be other objections to paying property taxes, not having children, that's often not such a valid reason when you think about it that way. Keith Weinhold (00:37:07) - Now, I think that the Liberty First Society's Christian Hall, she has an interesting take on property tax. Here's what she said. And I quote, property tax should end when you complete the sale or purchase, just like you do when you buy groceries or a bicycle. It's theft of ownership to keep paying property taxes, especially when government has the authority to take your property. When you don't pay your taxes for three years. That's not property tax, that's rent, and you're a tenant in your own home. Property tax makes government the owner of your property, not you. End quote. And again, that is from the Liberty First Society's Chris Ian Hall, thought provoking, if nothing else. Now, when it comes to finding the right professional to get real estate investors, all of our generous and legitimate deductions that we enjoy, I mean, it is one of the five ways real estate pays. After all, you do need to find the right pro so that they can find all the deductions for you. Keith Weinhold (00:38:13) - And this is just the time of year to get that right. For more than ten years now, I have had the world's number one tax firm do my wealth strategy, my tax strategy and my tax preparation. I even use my bookkeeper through them. They understand what real estate investors need. They make sure that I don't miss out on optimizing benefits and deductions for mortgage interest and tax depreciation and property tax and cost segregation, which accelerates my deductions. And they make sure I get infinite capital gains tax deferrals and bonus depreciation and so much more. All the good things that real estate investors get when you work with an investor centric tax professional. In this way, you can also legally write off many of your expenses for property management and maintenance and utilities and even your travel. So you can do that by connecting with Tom's team by visiting get rich education.com/tax. That is this week's actionable resource. Until next week I'm your host Keith White. Hold don't quit your day dream. Speaker 6 (00:39:25) - Nothing on this show should be considered specific, personal or professional advice. Speaker 6 (00:39:29) - Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get Rich education LLC exclusively. Speaker 7 (00:39:53) - The preceding program was brought to you by your home for wealth building. Get rich education.com.

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Episode 244 - Inside Tax Strategies with Tom Wheelwright

Play Episode Listen Later Jan 10, 2024 32:43

Welcome back to the Ultimate Advisor Podcast! Join Brittany Anderson in this insightful episode as she engages in a conversation with Tom Wheelwright, a seasoned tax expert, CEO of WealthAbility, bestselling author, podcast host, Rich Dad Advisor and the CPA to Robert Kiyosaki . Tom has been instrumental in assisting numerous entrepreneurs and investors in legally minimizing their tax liabilities. Discover Tom's valuable insights into strategic approaches that advisors can employ to empower their high-net-worth clients in accumulating more wealth within the framework of the tax code. Delve into the future landscape of the tax advisory profession, including the transformative impact of emerging technologies like AI. Gain actionable tips that financial advisors can apply to enhance client value and expand your practices effectively.

ceo ai strategy cpa delve robert kiyosaki tax strategies tom wheelwright rich dad advisors wealthability

482: Will You Pay This Gigantic Proposed Tax?

Multifamily Legacy Podcast

Play Episode Listen Later Jan 1, 2024 38:43

After discussing the direction of rents, learn about an ominous new tax that's proposed. SCOTUS and Congress are considering a tax on unrealized gains. For example, if your gold or furniture appreciates from $5K to $8K, would you have to pay a tax on the $3K gain, even if you keep owning the gold or furniture? Tom Wheelwright from WealthAbility joins us to discuss this. Though this is considered a “wealth tax”, the middle class would have to pay it. The tax case being heard is called “Moore vs. United States”. We expect it to be decided this year. Tom & I discuss how few people understand marginal income tax rates' progressivity. The last dollar that you earn is taxed at your highest rate. The first dollar that you earn is taxed at your lowest rate. Timestamps: Factors Driving Rent Growth (00:02:45) Inflation, lack of inventory, expired rent freezes, shifting workforce, demand for single-family homes, high employment, barriers to homeownership. Promising Development in Multifamily Construction (00:05:33) Multifamily construction reaching a 15-year high, new supply likely to slow down apartment rent growth, inclusionary housing requirements for new construction. Current Rent Trends (00:08:04) Single-family rents up 5%, apartment rent growth at 3%, highest rent price growth in the northeastern quadrant of the US. Supreme Court Case: Moore v. United States (00:11:47) Overview of the case, implications of taxing unrealized gains, arguments for and against the taxation of unrealized income, potential impact on everyday investors and citizens. Challenges of a Wealth Tax (00:18:07) Discussion on the problematic nature of a wealth tax, potential impact on individuals and assets, comparison to estate tax, and potential implications of a wealth tax on various assets. The tax on unrealized gains (00:22:43) Discussion on the potential impact of a proposed wealth tax on unrealized gains and the complexities of taxing assets while they are still held. The regressive nature of wealth taxation (00:24:38) Exploration of the regressive nature of wealth taxation and the challenges in implementing and managing taxes on wealth. Tax laws and equal protection (00:27:19) Insights into how tax laws apply equally to everyone and how billionaires benefit from better advisors to minimize tax payments. Tax rate misconceptions (00:30:15) Clarification of misconceptions about tax rates, including the progressive nature of tax tables and the impact of earning more income. Tax strategies and investment decisions (00:32:17) Exploration of tax benefits related to investment strategies, including the impact of deductions and the suitability of IRAs for different investment types. Updates on tax laws and book release (00:34:57) Announcement of the third edition of the book "Tax-Free Wealth" and the incorporation of major tax law changes into the updated edition. Wealthy's tax contributions and future episode preview (00:36:03) Discussion on the tax contributions of the wealthy and a preview of a future episode topic on the feasibility of abolishing property tax. Conclusion and show updates (00:37:13) Closing remarks on upcoming content, including the landmark episode 500, and a call to subscribe to the show for valuable insights. Resources mentioned: Show Notes: GetRichEducation.com/482 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Complete episode transcript: Keith Weinhold (00:00:01) - Welcome to GRE. I'm your host, Keith Weinhold, and it's a new year. We talk about what drives the growth of rents. Then a gigantic new tax is being proposed that could fundamentally change virtually every current investment you own and future investment you make today on Get Rich education. When you want the best real estate and finance info. The modern internet experience limits your free articles access, and it's replete with paywalls. And you've got pop ups and push notifications and cookies. Disclaimers are. At no other time in history has it been more vital to place nice, clean, free content into your hands that actually adds no hype value to your life? See, this is the golden age of quality newsletters, and I write every word of hours myself. It's got a dash of humor and it's to the point to get the letter. It couldn't be more simple. Text GRE to 66866. And when you start the free newsletter, you'll also get my one hour fast real estate course completely free. It's called the Don't Quit Your Day dream letter and it wires your mind for wealth. Keith Weinhold (00:01:18) - Make sure you read it. Text grey to 66866. Text GRE to 66866. Speaker 2 (00:01:30) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold (00:01:46) - What could go from Beckley, West Virginia, to Boise, Idaho, and across 188 nations worldwide. You're listening. To get rich education, I'm your host, Keith Weinhold. What about this new proposed wealth tax? Should there be one? How big is it? As you're gonna find out, you would probably even have to pay this huge new proposed tax. If you're in the middle class. That's all. If it gets legislated, that's coming up shortly. But first, last week I told you about the future direction of home prices. As I revealed our 2024 National Home Price Appreciation Forecast this week, let's talk about the direction of rents in America, higher prices for everything that could make tenants feel tapped out. Although we have now had a few months of wage growth picking up before we get into the rent trend, this is get rich education. Keith Weinhold (00:02:45) - So focusing on the education part as we often do, what are the factors that drive rent anyway? What drives rent growth and how did rent get to feel so expensive for a lot of people? Well, the fast growth of rent costs since 2020 that derives really from a number of factors, including inflation and also including a lack of inventory. There is a shortage of vacant rental properties in general and of affordable ones in particular. You've also got those expired rent freezes and expired discounts. I mean, landlords are making up for pandemic era rent freezes and steep discounts in urban areas. And by doing that, what they've done now is hiked up prices on new units and on lease renewals. Another factor that drives rent growth is what's happening with the workforce. And we've had a shifting workforce. As the pandemic increased, the popularity of remote work, you had deep pocketed renters that sought out larger homes, often single family homes, in areas that had previously been pretty low cost. So this migration then it increased the rents in suburban and outlying areas more than it lowered them in urban ones. Keith Weinhold (00:04:06) - And see that trend overall that yielded a net increase in rents. And then another factor is that you have more demand for people to live alone. Prospective renters are increasingly looking for studio in one bedroom apartments, driving up demand for available housing, and that drives demand for space and therefore rent growth, because living alone, that means that rather than two people demanding to live in one unit, two people demand two places to live. And of course, high employment like we've had. That's another factor that drives rent growth over time. And the last factor that I'll share with you as a rent growth driver are barriers to homeownership. Yeah. Prospective homeowners, they remain renters for longer because they face high demand and low inventory on those existing homes. Like I've talked about before, higher mortgage rates. And you had those supply chain disruptions that really began a few years ago. Most of those are alleviated now, but that made it more expensive and more difficult to construct new homes. And then as mortgage rates rose starting back in early 2021, housing prices, they cooled off faster than rents, and rents are finally rising at a slower pace now then they did in the past two plus years. Keith Weinhold (00:05:33) - And so those are the factors that drive rent growth. Now. Back in 2022, a promising development began, promising for those that are looking to pay less for housing in the future anyway. From their perspective, and that is the fact that multifamily construction reached a 15 year high nationwide, and that new supply is what's likely to slow down apartment rent growth. And since many cities require really this inclusionary housing, that means that a portion of new housing needs to be affordable. Well, therefore, new construction also means new affordable housing. Again, that's predominantly on the apartment side. But see, many families, they want a single family home. They want that privacy. They want that separation. They want to live in something that feels like their own, but they can't afford a single family home to buy. So they rent one. And, you know, I thought Zillow recently pointed it out really well when they said that single family rentals are the new. Their homes. They appeal to those that are priced out of buying. Keith Weinhold (00:06:49) - And now you can see this reflected in rent growth. So now that we talked about some of the longer term drivers of growth, let's talk more about the current period of time. We don't have Q4 numbers in yet, but through Q3 we can see that the growth of single family rents is 5%. All right. That sounds healthy. And it is. And that's per John Burns research and Consulting. But that 5% increase is down from two years ago when it had its recent peak of between 9 and 10%. So again, right there, we're just talking about the annual growth rate in single family rents. It's about 5% through the latest quarter that we have stats for now. Compare that 5% to apartment rent growth, which is about 3% today. Even in an economic slowdown, rents rarely fall. And by the way, if rents ever do fall, I call it falling rents. Or perhaps I use the phrase declining reds for some reason. If price is contracting anything, some economists and analysts and others, they refer to this as negative growth. Keith Weinhold (00:08:04) - I don't tend to use the term negative growth. That's confusing. I just call it a decline. Okay. Negative growth. That makes you wonder if someone means slowing growth rates or do they mean an outright decline. So negative growth is an oxymoron like jumbo shrimp or black light or friendly fire, or telling someone to act natural, or perhaps a working vacation? Okay, that's what negative growth means to me anyway. Now rents, whether it's single family rentals or apartments, when you blend those together regionally, you're seeing the highest rent price growth in the northeastern quadrant of the United States, which oddly contains a good chunk of the Midwest. So you just look at the northeastern quadrant of the United States. So leaders in red growth we're talking about here Providence, Rhode Island, Hartford, Connecticut, Cincinnati, Columbus, Saint Louis, Milwaukee and Chicago, they are all on that list. The highest rent growth blended together, single family rentals and apartments. By the way, two months ago I was in Hartford, Connecticut for the first time in a while. Keith Weinhold (00:09:18) - Nice skyline there. Yeah, Hartford. You have an impressively urban feel for a city that's not among America's largest. Now. You're seeing slight rent price declines this past year in a lot of their really big, swaggering, broad shouldered gateway cities New York City, San Diego, San Francisco, San Jose, and also in Raleigh, North Carolina. I'm not sure what's going on in Raleigh, North Carolina, with their sluggish rent growth, but here, as testimony to the fact that rents don't often fall far, all of those bigger cities that I just mentioned, these big losers, they're only down between one half of 1% and 1% for year over year rents. So to review nationally in the last year, single family rents are up 5% and apartment rent growth is up 3%. But both have slowed from a couple years ago. Can the federal government tax your unrealized gains, also known as a wealth tax? We're going to talk about what that means. But how far could this go? If your home appreciates a 30 K in a year, but you want to keep living in it, might you have to pay tax on that gain even though you don't sell it, you just want to keep living there. Keith Weinhold (00:10:41) - Could that even apply to you? If you own furniture that goes up in value, but you kind of like dining at that nice mahogany table of yours, could you get taxed on that every year? If the value of that goes up? And then you would have to ask the question, where are you supposed to get the money from in order to pay the tax? Might you have to sell that asset in order to pay the tax on it? So let's discuss a wealth tax that is tax on your unrealized gains. A renowned tax and wealth expert is back on the show with us today. He's also a CPA and the CEO of a terrific tax firm called Wealth Ability. He's the best selling author of the Mega-popular book Tax Free Wealth, which I have on my bookshelf. And a third edition is about to come out. He's going to tell us more about that. Hey, welcome back to Dr. Tom Wheelwright. Thanks, Keith. Always good to be with you. It's good to be with you, too. Keith Weinhold (00:11:47) - And I think it's going to be especially informative and maybe disturbing this time, Tom, because really, it's been called the quadrillion dollar question. This is where Supreme Court justices decide whether the federal government can tax certain unrealized gains. And what this means is that these are assets that you own, but yet you haven't sold yet. So, Tom, tell us about this Supreme Court case hearing it known as more Maori versus the United States. Yeah. So this is a couple that invested in a company in India. They owned, I think, 12 or 13% of the company. And when the 2017 Tax Act was passed, what we commonly think of as the Trump Tax Act, one of the provisions was that in order to go to a taxation where you couldn't just put off bringing back the money all the time, they said, well, look, we're going to have a one time tax, we're going to have a tax on repatriated earnings. Some of you have heard that term repatriated earnings as if they came back. Keith Weinhold (00:12:56) - Okay. So whether or not they came back as if they came back. And if you're a shareholder of 10% or more, then you have to pay that tax in certain situations. And so the laws actually had to pay the tax. This was the tax on the income of their corporation. So the corporation could have its own tax. But this is actually a tax on the shareholder. So that's actually where this is interesting because is similarly frankly we have taxes on partners and partnerships. Right. If you're a partner in a partnership you're taxed on that income. Whether or not you get the money in a corporation, typically you're not taxed on the income unless you get the money. That's a dividend. If you don't get the money, the corporation's taxed, but you aren't taxed. This was a situation where it's a corporation, but the shareholders were taxed. The Moores are arguing, well, this is equivalent to a wealth tax. And it's actually why I think the Supreme Court took this up, because it's not a case that you would normally think the Supreme Court would agree to hear. Keith Weinhold (00:13:57) - Well, I think where this concerns people is, could this open up things so that the everyday person and the everyday investor could have to pay these unrealized gains on assets that they own, that have not sold? I mean, even their primary residence, if that appreciates from 500 K to 550 K, are they going to owe tax on that 50 K even if they plan to continue to stay there and hold on to it because they want to live their. That's what certain members of Congress would like. Liz Warren would absolutely like that to happen. Bernie Sanders absolutely like that to happen. I actually think that's why the Supreme Court took up the case, is because I don't think the Supreme Court believes that that should happen. I think it's going to come out. They're going to narrow what a wealth tax can and can't be, because I think they need to because they need to say, look. So we've had oral arguments already. So we expect a decision out sometime this year. But basically the arguments by the IRS were we do this all the time. Keith Weinhold (00:14:56) - We have taxes, unrealized income. We have mark to market on stock trading. So that's a tax on unrealized income. We have a tax on partnerships. That's a tax on realized by undistributed income. The reality is this tax the Moores are are arguing against is a tax on realized but undistributed income. I think that's where the Supreme Court would come down. I'm actually willing to make a prediction on this because I think the Supreme Court say, well, this isn't a wealth tax, and a wealth tax would be prohibited under the Constitution because that would have to be based on population. A property tax, for example, is a wealth tax. Then the US that's reserved to the locales. We can't do a federal tax. We couldn't have a federal property tax. And that's, I think, what the Supreme Court is going to say. You can't have a federal property tax that's prohibited by the Constitution. You now have local property taxes because the locals can do whatever they want. But unless you have it apportion among the states based on population, you'd literally have to have a poll tax, which is a tax per person, as opposed to a tax on the value of what a person owns. Keith Weinhold (00:16:07) - That's the difference. So there's a lot of complications. That's a direct tax versus indirect tax, all that kind of stuff. I think the important thing is to understand that there are realized, but undistributed income, that's like a partnership, right? You can be a partner in a partnership. The partnership really uses the income. They get the money, but they don't distribute it. As a partner, you're taxed on your share of that income. It has been realized you just haven't gotten it yet. This is, by the way, very similar to the Moore situation. That money, that income was earned that just hasn't been distributed yet. And the question is the fact that they haven't distributed, does that mean they can't tax it? The odd thing is, is I think the Moores are going to lose the case. Moores will lose the battle and win the war. This is a small amount of money, right. So this is obviously the Moore is not trying to save money. There's way more money being spent on legal counsel than the tax. Keith Weinhold (00:17:03) - So the Moores aren't doing this. This is people behind saying this is a good test case. We need to put a stop to the wealth tax conversation of Liz Warren and Bernie Sanders and Wade. And this is a case to do that. That's really what kind of the background is. That's all the background of this court case is what's really going on and what's really going on is the Ninth Circuit made it sound like any taxes find. And the Supreme Court said, well, we're going to take this up because I think a majority thinks we don't think any tax is fine because clearly under the Constitution, not any taxes. Fine. We're going to help define that. And so I think we're going to get some better clarity on what kind of taxes Congress can enact. Ultimately, I think the Morse will lose their case. Yes, the more clarity is good. I mean, the Supreme Court knows that this is a contentious issue, and I sure want any discussion to get shut down. It might lead to everyday investors and citizens paying tax unrealized gains. Keith Weinhold (00:18:07) - I mean, with that example that I gave you of, say, a couple that owns a 500 K home and they want to keep living in it, but it just happened to go up to 550 K. I mean, where would they get the tax to pay on that. Well yeah. Well that's another problem. You can talk to any fixed income retiree and they'd have the same complaint about property tax. Sure. Yeah I don't know where this could go. I mean, what if you own rare furniture in your home? Okay. This furniture is worth more at the end of the year than it is at the beginning of the year. But yet you didn't sell it. You just continue to use your furniture. I mean, could that get taxed? It's a terrible slippery slope. And, you know, they talk about, well, don't give me I'm billionaires. I'm going okay. But let's face it, the income tax was only supposed to be on billionaires, okay. The equivalent of billionaires. Keith Weinhold (00:18:51) - You had to make a lot of money to be subject to income tax in 1913. Yeah okay. So we know it's going to come down. It always does the tax law. You know politicians never like to give up any tax money. They always are trying to apply to more and more people more and more income. So it is problematic. You know, the idea of a wealth tax is very problematic. You know, several European countries have tried it and they've all failed. France tried it. And people like Gerard Depardieu, um, the actor, he just left France, you know, people leave now, what Bernie Sanders wants to do, this is fascinating. He wants to put an exit tax. So if you do leave, you still have to pay the tax. You actually have to pay a tax to leave. So basically what Trump is, he wants the Berlin Wall, but he wants an economic Berlin Wall. Right. That's what he wants. He wants an economic wall. He's going to complain about the wall bordering Mexico, but he's going to put an economic wall around everybody and not allow you to leave. Keith Weinhold (00:19:50) - It'd be like somebody, California, putting a wall literal wall up and saying, you can't leave California, right. That's kind of the idea that. And if you do leave California now, California, in fact, they talked about it in 2023. And actually, interestingly, the governor defeated it. They talked about imposing an exit tax. So if you leave California, you have to pay a tax for leaving. And fortunately he defeated that. He crushed that. I mean, not sure why he did that, but he did understand the states have more power to tax than the federal government does. Federal government is limited in its taxing power, and it's really limited by the 16th amendment that allowed a pure income tax. The question and this is the argument that Sanders and Warren are making, is that it is income. And the reality is we do have billionaires who pay no tax. And the reason they pay no tax is because their stocks, which are public, go up in value. They're not required to sell them. Keith Weinhold (00:20:51) - They can borrow against them and they never pay tax. So the argument is, well, wait a minute, that's not fair. That's a decent argument. Honestly. The challenge is yeah, if you could really say we're going to limit it to billionaires and we're going to limit it to publicly traded stock, you're fine. Not a big deal. But it never gets limited. And that's the problem. It never ever gets limited. Once the camel gets its nose under the tent it just right going on taxation all over the tent piling on and not get pulled away. They don't remove layers of taxation. It seems once the president is sent somewhere, it just seems like it continues to spread. Tom, if I could just give one last example on this. If this ever goes to where unrealized gains get taxed and how absurd this all is, just say you. Oh, gold and gold goes from $2000 to $5000. You don't sell it, you just keep holding on to it. And then you'd have to find the income to go ahead and pay the tax. Keith Weinhold (00:21:48) - Well, you'd have to sell gold. And that's actually what they want. They actually want you to have to sell the gold. Oh, they would want gold to be sold to sell the gold. I want you to sell the stock. So the goal behind the wealth tax is to force you to sell these assets and pay the tax. Okay. Now we have a wealth tax. It's called an estate tax. That is a wealth tax. And there are businesses. There are families who have to sell their family home. They have to sell their family business. They have to sell their family farm because of the estate tax. And so this is another argument that the proponents of wealth tax are making is, wait a minute, we have a wealth tax already. It's called an estate tax. If we can have an estate tax, why can't we have a tax currently? Why do we have to wait until somebody dies to impose that tax? It's an interesting argument. I'm not a policy guy. I'm not one to make policy. Keith Weinhold (00:22:43) - I want to explain policy. It is a question. If I can have a tax on wealth when you die, why can't I have a tax on wealth while you're alive? Sure. And I thought through the scenario as well. If the river is a tax on unrealized gains, whether that's your house going up in value or furniture or gold after you would pay this unrealized tax, then in the end, when you do want to sell it, what if you sold it for less than you thought it was worth? And then how the heck do you go back and adjust that for the tax that you are now in it? And it actually gets worse than that. Keith. Let's say we have a boom market this year and next year we have a recession. Are we going to get the money back? Exactly. And that's the hardest part because the answer is clearly, no, we're not. I mean, because think of it right now, we have a provision in the law that taxes capital gains. Keith Weinhold (00:23:35) - There's an argument capital gains should never be taxed because especially at least if there are a capital gain because of inflation, they should never be taxed. If you actually went up in value, yes, they should be taxed. But if they're just inflated in value, why are you paying a tax on something that's not worth anymore than it was five years ago that got the same value? It's just got a different price. But we have a capital gains tax. But think about this. Let's say you have a year and you sell stocks and you have this big game. And the next year you have a loss because you sell stocks because everything went down well. You don't get to use those losses to offset your income. You have to carry those losses forward forever until you have gains again, you don't get go backwards with those losses and recapture the gains that you paid, you know, last year. So we already have this problem built into the system. And now all you'd be doing is exacerbating it. The other problem with, by the way, is that it's very regressive in that you're talking about people taxing their wealth. Keith Weinhold (00:24:38) - Now, you can put limits, right, which is what you would have to do. And you say, well, look, your personal residence, we're not going to tax, you know, we're only going to tax the excess, which is, by the way, what income tax originally was. It was only excess investment income. You were never taxed on wages. When the 16th amendment was passed there was no tax on wages. We didn't get a tax on wages until 1944. You go, well, we'll exempt all these today. What about tomorrow? And that's always the issue. I'll tell you, the taxes just keep piling and piling on. We're going to talk more about taxation with Tom. We're right when we come back you're listening to University Kitchen. I'm your host Keith Reinhold. I render this a specific expert with income property you need. Ridge lending Group Nmls 42056. In gray history, from beginners to veterans, they provided our listeners with more mortgages than anyone. It's where I get my own loans for single family rentals up to four Plex's. Keith Weinhold (00:25:39) - Start your pre-qualification and chat with President Charlie Ridge. Personally, though, even customized plan tailored to you for growing your portfolio. Start at Ridge Lending group.com. Ridge lending group.com. You know, I'll just tell you, for the most passive part of my real estate investing, personally, I put my own dollars with Freedom Family Investments because their funds pay me a stream of regular cash flow in returns are better than a bank savings account up to 12%. Their minimums are as low as 25 K. You don't even need to be accredited for some of them. It's all backed by real estate and that kind of love. How the tax benefit of doing this can offset capital gains and your W-2 jobs income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 66866. Oh, and this isn't a solicitation. If you want to invest where I do, just go ahead and text family to six, 686, six. Tom Wheelwright (00:27:02) - Anybody? It's Robert Elms or the Real Estate Guys radio program. So glad you found Keith Reinhold and get rich education. Don't quit your day dream. Keith Weinhold (00:27:19) - Welcome back to cash. We're talking with Tom Wheelwright, the author of the Mega-popular book Tax Free Wealth. He runs the terrific tax firm called Wealth Ability. Tom, you often like to talk about how really, in a lot of cases, tax laws can apply to everyone, but do business operate really under the same tax laws as a middle class or us in the middle class? Really take a page out of what billionaires are doing. How can we best do that? So we have a wonderful aspect of the Constitution, a clause called the Equal Protection Clause. And what it says is taxes have to be applied equally to everybody in the same situation. So what we're billionaires are different is they have better advisers. That's where they're different. So their advisors know all the rules of the tax law. They pay them hundreds of thousands, millions of dollars a year to make sure that they're paying the least amount of tax possible. Keith Weinhold (00:28:14) - Presumably, all they're doing is following the law. Those same laws apply to you and me. So that's why, for example, somebody who owns a single family home that they rent out to an unrelated person is entitled to the same tax benefits as somebody who owns a 200 unit apartment complex or somebody who owns Trump Tower, as an example. Okay. You get the same tax benefits in the same situation. The challenge that, you know, the average person has is not enough access to those advisers and a misunderstanding of how the tax law works, because this whole idea will the billionaires get different tax than the average person is just false. That's just a falsehood that is propagated by a certain part of the public in a certain part of the administration that wants to add another tax to billionaires. The reality is we all get the same tax. The difference is, is that if you're a billionaire, let's say you made $1 billion a year and you paid $400 million in tax. You still have $600 million left over, which is more than 99.999999% of people have in a lifetime. Keith Weinhold (00:29:25) - So it doesn't really hurt you. It doesn't change your lifestyle. Whereas if you put a 40% tax on somebody who makes $200,000 a year, now they're going from 200 to 120, and that has a major impact. And you're really just explain one reason why in the United States, we have tax tables set up that are what we would call progressive, where the more you make, the more you pay. But yeah, you're right, Tom. There are just there's such a knowledge gap out there. I have something happen to me. I bet it still happens to you a lot. Or I will talk to people and they say something like, well, I don't want to earn too much money this year. I'll go from the 24% tax bracket to the 30% tax bracket, and they act like all of their income is then going to be taxed at 30%. So they don't want to earn too much. So I'll tell you a funny story. Yeah. So I used to teach a class every month we'd have anywhere from 30 to 100 people in the class. Keith Weinhold (00:30:15) - And I'd always do an example and I'd say, okay, let's say that you earn X amount of dollars and you get a $5,000 bonus. What's the cost of that $5,000 bonus from a tax standpoint? And I would say a good 40% of the class would come up with about $8,000. Was the cost of the $5,000 bonus, because just like you say, well, that puts me in a new bracket there for all my income is being taxed in the new bracket. No, it is progressive, meaning the last dollar you earn is taxed at the highest rate, but the first dollar you earn is taxed at the lowest rate. And that's important distinction because we're never taxed on more than right now. It's actually 40% because we have net investment income tax. So you're never taxed on more than 40% of your income by the federal government. You just can't be. So you can make whether you make a, you know, $1 million a year, $1 billion a year, $10 billion a year, your maximum tax rate is 40%. Keith Weinhold (00:31:14) - That's an epiphany to some people to learn that tax rates are progressive, like you just explained with that $5,000 bonus example, why don't you tell us about another tactic or another example like that? We have a lot of savvy listeners. A lot of Marty realize that marginal example. Can you give us another one about how there's something relatively simple that can really elevate one's and lower their tax rate? Yeah. Let's go to the flip side of that. If the last dollar you earn is taxed at your highest rate, the first dollar you deduct is deducted at your highest rate. Great point. This is why, by the way, and if you read my book, The Windmill Strategy, I talk about this in chapter eight. I used to say for a long time that you never got a permanent tax benefit from putting your money in an IRA for one K and I ran the numbers and win win. And I was wrong. That's not true. And the reason is because let's say you put in $10,000 a year for 30 years, that deduction that you get for that $10,000 you put into your IRA for one K, you get a deduction at the highest tax bracket. Keith Weinhold (00:32:17) - When you start pulling the money out, you're going to pull it out and you get all the tax brackets. So you put the money in, you get a deduction of the highest, you pull the money out, you get basically the combination of the different tax brackets. So you are actually better off. So for example, if somebody says I want all I investment to go on in the stock market, I would say you need A41K. That is the answer because self-directed would be best. Absolutely. Because you get a deduction now at your highest tax rate bracket. But down the road you're going to pull it out. Basically, even if you have the same income you can pull out a lower rate. Now that only applies if you're going to put the money in the stock market. If you're going to put the money into real estate for one, K is a terrible idea because real estate is a tax shelter and you lose all the tax benefits of a tax shelter. If you put it in an IRA, you actually take a tax shelter and make it a tax expense by putting it into an IRA for one K. Keith Weinhold (00:33:14) - So there are certain things you would never do in an IRA. A reformed K real estate is one of those. Energy is one of those businesses. One agriculture. You'd never do those in an IRA or for one K, it's a terrible idea. But if you want to invest in the stock market, the bond market, things like that, IRAs make all the sense in the world. So really, that's why people ask me, well, should I do it for one K I'm going. I have no idea. What's your investment strategy? What's your wealth strategy? Where are you putting your money? People all the time. I have some imitators and they'll ask this question, well, how do you make your money? We can reduce your taxes. I'm going. That's the first question you have to ask. But I'm more interested in what are you going to do with your money? Because what you're going to do with your money has a much bigger impact on how we set things up from a tax side, how much money you're going to make, what kind of investments you're going to do, all that is impact by what you can do with your money. Keith Weinhold (00:34:06) - That question about, you know, how do I make my money is a simple question that, frankly, I can do that kind of a tax strategy on stage in ten minutes. Well stated. That is a good point. Well, Tom, this has been great. You mentioned your latest book, the Win win. Well, strategy, but in one of your very well-known books, Tax Free Wealth, you've got another edition coming out. Tell us about that. Yeah, we have the third edition. So for the second edition we did that. When the Trump Tax Law 2017 was enacted, we needed to put in fact, we did a kind of in a rush. So we just added in things. Since 2017, we've had six major tax law changes, six major tax law changes during Covid. And so what we felt we want to do is let's roll it all in to a third edition will take the Trump tax law. Changes will roll those in. We'll take all the new tax law. Keith Weinhold (00:34:57) - Changes will roll those in. So now tax free wealth is up to date. I think it's a better book. When I went through it of course I spent hours and hours and hours going through it. This is the best version of tax free wealth we've ever released. There are so many critical updates there. Again, the name of his book is Tax Free Wealth. I recommend checking that out. Tom. We're right. It's been informative. As always. Thanks so much for coming back out to the show. Thanks, Keith. Yeah. Sharp insights from Tom. As always, you can keep following along with the more versus United States case this year. Now, sometimes the wealthy, they will point something out that you've got to consider. It's got to give you a little pause. And that is actually should the wealthy get a tax rebate yet not get taxed more heavily because in the US see the top 1% pay about 42% of federal income taxes, and you might say, okay, well, that's the top 1%. Keith Weinhold (00:36:03) - Why don't we bring in some of the middle class and revisit this? Well, the top 25% pay nearly 90% of the taxes. And that's all from a recent year per the Tax Foundation. Should the wealthy then get a tax rebate? Because you could say that they pay more than their fair share. Whatever fair share really means. Well, that is a valid question. Ask at the least. Well, today is the first time that we've had the marvelous, successful author, Tom. We're right on the show here in more than a year and a half. That's just a little unusual because he is the most recurrent guest here in history. And so therefore, for some more catch up coming down the road, Tom is going to return here to discuss a big question that I have for him. And in that future episode, Tom and I are going to discuss, should there even be such thing as a property tax, does it make more sense to say, abolish the property tax and then the government can get their revenue from somewhere else, as well as where that proposal might not be feasible? That should be super interesting. Keith Weinhold (00:37:13) - Asking the question should there even be a property tax? In the meantime, check out Tom's third edition of his book Tax Free Wealth. It is a good read as far as tax reading goes. You're listening to episode 482 of the get Rich educational podcast. We have got a big year in store with plenty of original, groundbreaking content planned, including a memorable landmark episode 500 Coming Up, which will release on May 6th of this year. If you haven't already, I encourage you to subscribe to or follow the show here on your favorite podcasting device, or tell a friend about the show. I think they'll find it really valuable. Until next week, I'm your host, Keith Reinhold. Don't quit your day dream. Speaker 4 (00:38:05) - Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get Rich education LLC exclusively. Speaker 5 (00:38:33) - The preceding program was brought to you by your home for wealth building. Get rich education.com.

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EP261: Invest in a Top-Tier Tax Adviser for Entrepreneurs - Tom Wheelwright, CPA

Play Episode Listen Later Dec 26, 2023 33:42

In this episode packed with Tom Wheelwright's expertise, we'll delve into the power of a child's upbringing, the profound essence of work, and entrepreneurial tax advisers. Uncover these insights that shape lasting financial and tax knowledge to fortify your path toward success when you tune in! Topics on Today's Episode Parents' role in developing their children's skills The importance of one's upbringing and core values What makes work valuable to an individual Advantages of having entrepreneurial tax advisers Affordable ways to maximize your tax benefits Resources/Links mentioned Rich Dad Poor Dad by Robert T. Kiyosaki | Kindle and Paperback The Worst Generation by Richard Rathmann | Kindle and Paperback Tax-Free Wealth by Tom Wheelwright | Kindle and Paperback Who Not How by Dan Sullivan and Benjamin Hardy | Kindle, Paperback, and Hardcover About Tom Wheelwright, CPA Tom is a CPA, founder, CEO of WealthAbility and best-selling author of Tax-Free Wealth. Wheelwright is a leading wealth and tax expert, global speaker, and entrepreneur. He is best known for making taxes fun, easy, and understandable, and he specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. Connect with Tom Website: Wealthability Podcast: The WealthAbility Show with Tom Wheelwright, CPA | Apple Podcasts and Spotify LinkedIn: Tom Wheelwright X: @tom_wheelwright Want to invest alongside the Kahuna Investments team? Save your spot in our upcoming webinar, where we discuss how you can join our Private Investor Club and get access to our deal rooms exclusively. Now's your chance to start apartment investing, so visit kahunainvestments.com/webinar to register! Take the first step towards financial success by learning more about Kahuna Investments, and if your investment goals align with our formulas and approaches – book a short 15-minute Virtual Coffee call with us at kahunainvestments.com/coffee today! Are you ready to experience the cash flow life? Just text “BOOK” to (480) 500-1127 to get a FREE copy of Corey's book, Copy Your Way to Success, and learn how apartment investing can change your life today! Don't forget to download my Free Workshop Quick Start Video Series, and if you like what you have heard, please leave a review on iTunes.

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Pay $0 in Taxes...Legally? | Tom Wheelwright

How To Sell More

Play Episode Listen Later Dec 5, 2023 27:24

Join us for this episode of ‘How To Sell More' and discover how smart tax strategies can do more for your business than just saving you money. Tom Wheelwright, a wizard with numbers, teaches us that taxes aren't just about what you owe. They can be a map to riches if you know how to read them. Learn why spending on the right tax advisor is like putting money into your business's future. Find out how to build wealth and reduce taxes at the same time by choosing smart investments. Understand how to make taxes a secret weapon in your business's arsenal. Meet Tom Wheelwright: a tax genius and advisor to the stars of business and finance. As the CEO of WealthAbility and a bestselling author, Tom turns the maze of tax laws into clear paths toward wealth. He's not just about numbers; he's about changing lives with better tax strategies.

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Cost Segregations/R&D Credits

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Play Episode Listen Later Nov 29, 2023 36:28

WealthAbility for CPAs #111 – Has your firm discussed the potential benefits of cost segregations with your clients in their wealth strategies? With proper planning, accelerated deprecation strategies can be extraordinarily powerful tools when it comes to building their portfolio. In this episode, Kim Lochridge joins Tom to discuss the finer details of what goes into cost segregations and how you can help your clients take advantage. Learn more about your ad choices. Visit megaphone.fm/adchoices

Eliminate Negativity for Good

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Play Episode Listen Later Nov 16, 2023 31:08

WealthAbility for CPAs #110 – How do we get rid of toxicity in the office? What changes must be made to establish a more productive and positive practice? In this episode, Anthony Iannarino joins Tom in discovering how to eliminate negativity, propel towards happiness and productivity, and how it leads to living our best lives. Learn more about your ad choices. Visit megaphone.fm/adchoices

Ep. 406 Tom Wheelwright, Founder & CEO of WealthAbility

Real Leaders Podcast

Play Episode Listen Later Nov 8, 2023 23:31

Tom Wheelwright is the founder & CEO of WealthAbility, a revolutionary platform of educational tools and global network of CPAs trusted by hundreds of thousands of entrepreneurs and investors to reduce taxes and create wealth. Tom is also the best-selling author of Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes. -- If you haven't yet had the chance, make sure to register for our 2024 Real Leaders Impact Awards. Our Impact Award winners gain access to a values aligned community, credibility through Real Leaders, and access to our network of Impact capital sources. Apply now to claim your discounted application: ⁠https://eunbi5zgbx7.typeform.com/to/XNdfGsS2#app_first_name=xxxxx&company_name=xxxxx&work_email=xxxxx&campaign_name=xxxxx&channel=LN&owner=Z⁠ Also, check out Outsource Access for all of your Virtual Staffing Needs. At an affordable rate you can outsource the work you need to get done at an extremely affordable rate. You can find more info about them here using this link. https://outsourceaccess.com/

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Moore Case Analysis

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Play Episode Listen Later Nov 2, 2023 32:26

WealthAbility for CPAs #109 – Moore v United States may have major ramifications on CPAs and their clients. What do we already know and what can we expect as this case continues? In this episode, Garrett Watson provides a deep analysis on Moore v United States so we can navigate accordingly with our clients and to prepare everyone for the outcome ahead. Learn more about your ad choices. Visit megaphone.fm/adchoices

Connect With Clients

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Play Episode Listen Later Oct 19, 2023 36:28

WealthAbility for CPAs #108 – Taxes are often anxiety inducing for our clients. But what if we could alleviate that stress by practicing positive communication? Are you so task-driven that you're forgetting to build a necessary financial relationship? In this episode, Julien C. Mirivel and Alex Lyon join Tom in exploring the key fundamentals of positive communication, how you can be a better leader using them, and how building deeper relationships catapults us to a better practice. Learn more about your ad choices. Visit megaphone.fm/adchoices

Tax Reduction Strategies and Finding the Right Advisor with Tom Wheelwright

Financial Quarterback Josh Jalinski

Play Episode Listen Later Oct 16, 2023 55:30

On today's show, Josh Jalinski is joined by Tom Wheelwright, tax expert and CEO of WealthAbility, for a detailed and practical exploration of tax strategy and financial privacy in the evolving economic landscape. Kicking off with a critical look at AI in the CPA space, the discussion progresses to evaluate the merits and drawbacks of using advanced technologies in accounting and tax planning. The duo dives into the implications and concerns stemming from the Corporate Transparency Act, providing insights into how it impacts trusts, beneficial owner disclosures, and overall financial privacy. The conversation then shifts towards strategic wealth-building, touching on the savvy use of assets, agricultural investments, and charitable deductions, with Tom providing actionable advice and real-life examples of maximizing wealth while minimizing tax liabilities. Can't get enough of the Financial Quarterback? Click 'Subscribe' to ensure you never miss a play. New episodes touchdown right here! And if you're loving the playbook, drop us a 5-star rating and leave a review. Your feedback drives the game!

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Oil & Gas: The Dirty Details – Tom Wheelwright & Mike Mauceli - The WealthAbility Show

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Play Episode Listen Later Jul 10, 2023 35:16

Love it or hate it, our government continues to encourage oil and gas investments. Have you wondered what types of benefits are available for these investments? Why does our government continue to incentivize this sector? Learn more about your ad choices. Visit megaphone.fm/adchoices

Outsmarting AI – Tom Wheelwright w/ Mike Goldsby– WealthAbility for CPAs #100

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Play Episode Listen Later Jun 28, 2023 28:20

WealthAbility for CPAs #100 – AI is here, and it's already having a significant impact on life as we know it. Instead of fearing our dwindling relevance, perhaps we can leverage the power of AI in our business. Learn more about your ad choices. Visit megaphone.fm/adchoices

Fed Up With the IRS – Tom Wheelwright & Mark Calabria - The WealthAbility Show

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Play Episode Listen Later Jun 23, 2023 32:25

Have you found yourself even just a little nervous about the economy? Are you prepared to pay the price for investors who can't? Biden has increased the budget for the IRS and has plans that may push investors and businesses out of the U.S. entirely. Learn more about your ad choices. Visit megaphone.fm/adchoices

Ferrari Formula [8/7 Series BONUS!] – Tom Wheelwright & Brad Sumrok - The WealthAbility Show

Play Episode Listen Later Jun 2, 2023 42:11

What if you could get the government to buy you a Ferrari? How do you build a plan that leverages incentives from the government? Learn more about your ad choices. Visit megaphone.fm/adchoices

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Retirement [7/7 Series Pt. 2] – Tom Wheelwright & David Macchia - The WealthAbility Show

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Play Episode Listen Later May 26, 2023 37:24

How do we make our retirement savings last throughout our lifetime and through inflation? What should women specifically plan for? Learn more about your ad choices. Visit megaphone.fm/adchoices

Retirement [7/7 Series Pt. 1] – Tom Wheelwright & Andy Tanner - The WealthAbility Show

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Play Episode Listen Later May 18, 2023 64:25

Are you thoroughly prepared for your retirement? Have you decided which plan is best for your dreams ahead? Learn more about your ad choices. Visit megaphone.fm/adchoices

Insurance [6/7 Series] – Tom Wheelwright & Kim Butler - The WealthAbility Show

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Play Episode Listen Later May 12, 2023 47:14

Have you considered the benefits of investing in life insurance? Or how the different functions can uniquely alleviate stress for our loved ones? Learn more about your ad choices. Visit megaphone.fm/adchoices

Tax Investments the Government Will Pay You to Make

How to Scale Commercial Real Estate

Play Episode Listen Later May 8, 2023 25:49

Today's guest is Tom Wheelwright Tom is a CPA, CEO of WealthAbility®, Rich Dad Advisor, entrepreneur, international speaker, the bestselling author of Tax-Free Wealth and The Win-Win Wealth Strategy. Join Sam and Tom in today's episode. -------------------------------------------------------------- [0:00] Intro [0:51] The 3 questions [1:57] Scaling CPA firms [5:38] Things to hyperfocus on now [10:08] Cost segregation firms [12:09] Solar opportunities [20:05] Doing well / Making mistakes [24:41] Closing -------------------------------------------------------------- Connect with Tom: Facebook: https://www.facebook.com/4wealthability/ Twitter: https://twitter.com/WealthAbility Instagram: https://www.instagram.com/tom_wheelwright/ Linkedin: https://www.linkedin.com/company/wealthability/ Web: https://wealthability.com/ Connect with Sam: I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns. Facebook: https://www.facebook.com/HowtoscaleCRE/ LinkedIn: https://www.linkedin.com/in/samwilsonhowtoscalecre/ Email me → sam@brickeninvestmentgroup.com SUBSCRIBE and LEAVE A RATING. Listen to How To Scale Commercial Real Estate Investing with Sam Wilson Apple Podcasts: https://podcasts.apple.com/us/podcast/how-to-scale-commercial-real-estate/id1539979234 Spotify: https://open.spotify.com/show/4m0NWYzSvznEIjRBFtCgEL?si=e10d8e039b99475f -------------------------------------------------------------- Want to read the full show notes of the episode? Check it out below: 00:00:00:00 - 00:00:22:07 Tom Wheelwright If you're in a location, if you have commercial property in a location that gets decent sunshine and you're not doing in solar, you're missing out on one of the easiest ways to make money there is right now. I mean, consider you get a 30% tax credit and with 80% bonus depreciation, you get a 65% tax deduction. 00:00:22:23 - 00:00:29:04 Intro Welcome to the How to Scale Commercial Real Estate Show. Whether you are an active or passive investor. We'll teach you how to scale your real estate. Investing business into something big. 00:00:31:16 - 00:00:49:04 Sam Wilson Tom Wheelwright is a tax and wealth expert. He's a CPA CEO of Wealth Ability. He's a rich dad, advisor, an entrepreneur, international speaker, and the bestselling author of Tax Free Wealth and the Win Win Well Strategy. Tom, welcome to the show. 00:00:49:23 - 00:00:51:12 Tom Wheelwright Thanks for having me, Sam. It's great to be with you. 00:00:51:16 - 00:01:01:16 Sam Wilson Absolutely, Tom. The pleasure's mine. There are three questions I ask every guest who comes on the show in 90 seconds or less. Can you tell me, where did you start? Where are you now and how did you get there? 00:01:02:16 - 00:01:34:20 Tom Wheelwright Well, I started as I grew up in Salt Lake City, Utah, so I actually spent two years as a mormon missionary in Paris learning how to get rejected in French, which was kind of my start in entrepreneurship, and then started with Ernst and Young and built run sold CPA firms for the last 30 years. So right now, currently running a network of CPA firms around the U.S. So we have over 60 CPA firms throughout the U.S.. 00:01:35:23 - 00:01:57:06 Sam Wilson Wow. That's that's a lot bigger than what I even understood here. You know, talking to you before you came on the show. So you have I would say then you have a comprehensive understanding of what it means to build and scale businesses among real estate holdings probably as well. So that's that's really, really fascinating. Building and scaling CPA firms. 00:01:57:17 - 00:02:07:11 Sam Wilson What's the need in the industry? I would think inside the United States that, you know, every town has its fair share of CPA firms. How are you finding opportunity in that space right now? 00:02:07:15 - 00:02:38:08 Tom Wheelwright Well, the challenge is, is that CPAs, we have a weird industry. We sell something that people don't want and we give away something they do want. So we sell tax returns, financial statements. Nobody really would do a tax return if you didn't have to. People need them, but they don't want them. And CPAs don't do a very good job of providing tax advice. 00:02:38:16 - 00:02:59:16 Tom Wheelwright They're they'll respond to your questions, but they really do not understand the tax law very well. And they do not do a good job of of really taking a proactive approach to helping their clients reduce their taxes, which there are thousands of ways to do it. And most CPAs, unfortunately, don't do that. So it actually makes it for a pretty blue ocean for us. 00:03:00:03 - 00:03:12:18 Sam Wilson Yeah, I would. I would think so. Speaking of on on the blue ocean, the term blue print comes to mind. It sounds like you guys have figured out a way to move into a city, set up an office. Here's how you do it. What's what is that playbook. 00:03:12:18 - 00:03:38:22 Tom Wheelwright For you, you know? Well, you know, we do we don't set up offices. We've actually we've actually brought in members into our network that are established CPA firms. And what we do is we train them and we provide a system for them. And then we we do some marketing and sales for them. So we're actually we're actually their resource to be a better CPA firm. 00:03:39:07 - 00:04:00:02 Sam Wilson Got it. Got it. And you mentioned there the two things, you know, that I think a lot of times and certainly been mostly my experience is that the tax planning, the tax the CPA side of it is a very reactive business. What do you guys do in order to make it in, make it and make that a proactive, engage with your clients before that tax bill comes due? 00:04:00:09 - 00:04:01:11 Sam Wilson What's that look like? 00:04:02:04 - 00:04:30:20 Tom Wheelwright We do a couple of things actually unique to us. First of all, with every new client, we actually build build out a long term plan of action for the long term strategy. We find out take a very holistic approach. We look at their we look at really four areas of their finances. We look at their wealth. What are they going to do with their money, which some you specialize in? 00:04:30:20 - 00:04:53:22 Tom Wheelwright I know we look at their tax, income tax, but we also look at their asset protection and their estate planning because you want to take a very broad picture if you really want to understand a client. And then we really focus on all the positive incentives in the Internal Revenue Code instead of worrying about the IRS is going to come get us. 00:04:53:22 - 00:05:14:09 Tom Wheelwright So we're looking for those things that the government wants us to do, things that they want us to invest in. Real estate being one of those and which one do they want to invest in? And if they're willing to do what basically partner with the government as an act to partner with the government will show them how to seriously lower their taxes. 00:05:15:03 - 00:05:38:08 Sam Wilson And that's the I like the I like the way you said that the positive incentives that are out there because yeah, I mean, so many of us we want to avoid like, oh, it's, you know, I want to make sure that I don't get hit with that tax or get hit with this tax. But you're kind of turning that on its head and saying, how do we how do we actually work alongside the incentives that are being placed out there to make this a more favorable outcome for us? 00:05:38:08 - 00:05:51:24 Sam Wilson Let's talk about those two or three things maybe that are on the top of your mind that you would say are some of the things that people should be thinking about right now. What's a what's a hyper focus, maybe for you and or your firms? You say, hey, here's advantages that that can be had at the moment. 00:05:52:17 - 00:06:28:13 Tom Wheelwright Well, we do a lot of work with real estate investors. Really. Our primary specialty is entrepreneurs who also invest in real estate and real estate. Of course, that has had huge tax advantages for the last several years with bonus depreciation, right? Where we get to not just take it over 27 half years or 39 years and commercial property, but we actually can take a deduction for things like the contents of the building, the land improvements on the building. 00:06:28:13 - 00:06:54:08 Tom Wheelwright We can take that deduction immediately. So what that means is that for a typical investor, if if there is let's say you got a 75% loan to value, you're probably going to get a deduction equal to the amount of your investment. Right. And that's a big deal. I mean, you can put $100,000 into an investment and get $100,000 deduction. 00:06:54:08 - 00:07:16:23 Tom Wheelwright That's pretty cool. Only in the last few years. So we've been will do that in the U.S. in real estate. It it's gone down this year so we were at 100% prior to this year. And then this year we're 80% about bonus depreciation. But remember, we still get the rest of the depreciation, so forth. But what I find is, is that invest ers and a lot of syndicators do this. 00:07:17:06 - 00:07:40:08 Tom Wheelwright They don't do a cost segregation, which is required technically it's required by law anyway. The IRS doesn't enforce that law, but it is required. And and what they don't do is go hire an engineer with a CPA and go out and actually do a real detailed analysis. And because of that, they end up leaving a lot of money on the table. 00:07:40:13 - 00:07:59:20 Tom Wheelwright As you know, I think the most important thing in real estate is cash. And you got cash to make the next deal. Right. And so you want your cash early. You don't want to be you want to be giving your money to the government to hold on for you. Right? You want to actually be using that money to invest. 00:07:59:20 - 00:08:19:12 Tom Wheelwright Marissa And frankly, they do too. I mean, that's the whole purpose of this incentive is so that the government is saying, look, if you will go out and invest your money and do it the way we tell you to do it, then we will actually provide that cash will help you with that cash flow. You don't have to pay taxes now. 00:08:19:12 - 00:08:51:21 Tom Wheelwright You can pay taxes later, maybe never depending on how serious you are as an investor. But definitely what we want is we know that commercial property, we know that industrial property, we know that agricultural, we know that housing, these are all necessary and important to the economy in the United States, that they're necessary aspects to our economy. And so we want to make sure that we take advantage of those and do the things that the government really saying. 00:08:51:21 - 00:09:12:03 Tom Wheelwright These are not these are loopholes, these aren't mistakes. We're not avoiding taxes. We are doing what the government has said is the law and that's actually one of the things that I'm really high on my mind right now, because we have so many people talking about the rich don't pay tax and they're not paying their fair share, which is they pay all of it. 00:09:12:08 - 00:09:36:22 Tom Wheelwright So that's hard to stomach that they don't pay their fair share because really the rich do pay most of the taxes and that, you know, somehow they're, you know, cheating. Well, I'll tell you what my my experience is. It's not frequently the rich people. I'm sure there are rich people who cheat on their taxes. But honestly, serious investors don't ever need to cheat because there are so many tax incentives. 00:09:37:20 - 00:09:50:22 Tom Wheelwright So I think that cost segregation and just taking advantage of that bonus to break depreciation is number one in my book right now. I just think so many people I'm seeing so many people not do it. 00:09:52:02 - 00:09:57:01 Sam Wilson That's why like, I mean, that seems like the lowest hanging fruit for any of us. 00:09:57:10 - 00:09:58:01 Tom Wheelwright Doesn't it? 00:09:58:05 - 00:10:07:15 Sam Wilson Yeah, even even in residential real estate. Like if you're a residential real estate investor, you can still get a court segregation study done. And in that. 00:10:07:15 - 00:10:07:22 Tom Wheelwright Yep. 00:10:08:00 - 00:10:28:05 Sam Wilson And it's not that expensive. I mean, really. Right. But let's talk about maybe that for a minute because I will say I've had, uh, varied successes with cost segregation reports. They can be wildly different, one firm to the next. 00:10:28:05 - 00:10:28:15 Tom Wheelwright They can. 00:10:28:19 - 00:10:38:16 Sam Wilson Same exact property. How does an investor know when they're dealing with a good cost segregation firm? 00:10:38:16 - 00:11:01:20 Tom Wheelwright Well, I think you can take some good rules of thumb to begin with. So on your bonus depreciation and you know, I think as a rule of thumb, you are your the contents of your building are probably going to be somewhere between 15 to 20% of the value of the building and the land improvements going to be another 5 to 10%. 00:11:01:20 - 00:11:24:22 Tom Wheelwright So you could be anywhere from 20 to 30% in that category if you're down below that, then I would be concerned. If you're up above that, I'd also be concerned. So you got to I see on both ends, of course, because like we like to say is that in in taxes, pigs are cute and hogs get slaughtered. So you have to be you want to be a little careful. 00:11:24:22 - 00:11:41:16 Tom Wheelwright But I really think that the most important thing, of course, you get a good referral, you get either from your CPA or somebody actually preferably your CPA because they actually know the industry and they're probably going to be the best. They're going to probably be the best referral source for you. 00:11:41:24 - 00:12:09:00 Sam Wilson Yeah. Yeah, absolutely. Absolutely. Yeah. That's that's a big thing. And even even an 80% bonus depreciation still, that's really strong. And something that I'm surprised to learn from you that that real estate investors, commercial real estate investors aren't taking advantage of that, that that truly blows my mind because that just seems so easy. Another one maybe that I think you and I talked about off air here is the solar. 00:12:09:03 - 00:12:13:11 Sam Wilson You said that there is good opportunity in solar right now. Please. 00:12:13:11 - 00:12:40:09 Tom Wheelwright Oh, my detail. If you're if you're in a if you're in a location, if you have commercial property in a location that gets decent sunshine and you're not doing in solar, you're missing out on one of the easiest ways to make money there is right now. I mean, consider you get a 30% tax credit and with 80% bonus depreciation and you get a 65% tax deduction. 00:12:40:09 - 00:13:06:14 Tom Wheelwright So you basically get so you get the 30% right off the top. So if you put $100,000 on a small commercial building, you know, okay, there's your example. I just did it on my building. And you did a that's $30,000 off the top of your taxes, right. And then 80% of 85% of the $100,000, which is about 65%. 00:13:06:14 - 00:13:38:24 Tom Wheelwright Okay. But that's just how it works, is 80% of 85% gets bonus depreciation. And then we actually get a haircut as the credit. But that's about 65%. Well, if you're in a 40% tax bracket, that's a pretty big number. That's actually bigger than the credit. So really what's going on is the government is saying, well, we'll pay for about two thirds of your solar and then what you're doing is you're reducing your own costs. 00:13:38:24 - 00:14:13:15 Tom Wheelwright Because here's the key, I think to solar. You need to make sure that you're not selling that power to the grid. You want to make sure that you're using that power. And if you're using that power, you're getting retail prices for it because that's something you're not pain, right? So you're getting retail prices. I know on our on my building, my return on investment is going to be somewhere in the neighborhood of 20 to 22% while on an annual because of that because of the tax benefits. 00:14:13:15 - 00:14:36:07 Sam Wilson Wow. That's I hadn't thought about the bonus depreciation side of that equation because this is something that we're working through right now on several properties and evaluating those and going, okay, so we put solar, you get the 30%. And then but I hadn't I hadn't put that bonus depreciation part back into that equation to see how how much sense that does make. 00:14:36:12 - 00:14:50:04 Sam Wilson One of the other things that I'm learning here is that there's even like I know one of the buildings we were looking at has it has an even other there's other economic bonuses inside of that because there's. 00:14:50:08 - 00:15:12:21 Tom Wheelwright That there are so so for example, first of all, with the solar, sometimes the you local utility will give you credits and they'll give you a rebate. So there's money there. Sometimes you're just your municipality will give you a rebate or your state. Remember, you got state taxes too, and bonus depreciation counts against state taxes as well in most states. 00:15:13:02 - 00:15:52:04 Tom Wheelwright Yeah. So that's an additional amount that you've got. You know, there are other things you can do. Of course the building, whether it's windows or, you know, other things, they're not nearly as impactful on your taxes as the solar. But remember, the batteries count, too, and the batteries are a key component because solar without batteries is marginal. But solar with batteries is really good because now you got you've got that storage so that if without that, you're actually ending up selling a lot of it to the grid because during your high production times, you can't use it. 00:15:52:04 - 00:16:10:05 Tom Wheelwright All right? And you need it when it's when the sun's not out. So you can store that in your battery. I've got a couple of batteries in my house. I've got batteries with my in my commercial property. And the batteries, I will tell you, there is they're as important as the solar panels. 00:16:10:05 - 00:16:29:00 Sam Wilson That's really interesting. Yeah. Because it you know, the direct consumption model works, I guess, to a certain point. But I would only imagine, like you said, that the battery stored in the back end is one of those things that that really makes the whole thing whole thing go round, you know, and there's differences, from what I understand in between some states are net metering. 00:16:29:00 - 00:16:44:14 Sam Wilson I don't think Tennessee is a net metering state. So I think like here I've learned this all here recently as we've been examining these products going, okay, so they're going to sell it just to sell it to us on the grid at $0.12 a kilowatt hour or whatever it is, I don't know. It was close to these numbers. 00:16:44:14 - 00:16:49:10 Sam Wilson And then if it goes back to the grid, they're only giving us $0.05 a kilowatt hour. 00:16:49:10 - 00:17:13:18 Tom Wheelwright Right? Right. So so you want to going back to the grid, you want to be using all of your solar. And if you've got a tenant, then what you want to make sure of is that the tenant's paying you, right? So you actually are set up so that the tenants because it because of the tenant normally pays for the solar for their power, then you're not getting any benefit right from that. 00:17:13:18 - 00:17:21:06 Tom Wheelwright Right. So what you have to do is you actually have to set it up so that you build a tenant for their power and the utility bills. 00:17:21:06 - 00:17:40:17 Sam Wilson You Yeah, well that makes sense. That makes a lot of sense. Do you know, are there this sounds like it's getting more challenging but are there I would imagine there are software programs and things that you can build in that help you calculate that and you're not going out to meters and writing things down, trying to figure out what the tenant actually bills you do. 00:17:40:17 - 00:17:41:13 Sam Wilson You know anything about that? 00:17:42:05 - 00:17:57:24 Tom Wheelwright Well, you would actually. Yeah. You actually do your own effectively your own meter so that you are you are actually taking advantage of and knowing what they're using and you're billing them, you know, whatever the whatever the normal utility rate is. 00:17:58:11 - 00:18:29:16 Sam Wilson Right. No, that's very cool. I like that. And this goes back to the positive incentive things because this is what somebody mentioned here to me recently. They said, look, they figured out that it's cheaper and probably a faster implementation because our our electric grid is so old. I mean, it's so old. They're said it's cheaper for homeowners to put in businesses, to put solar on their roofs and help offset the cost of upgrading the infrastructure and producing more electricity, give it to them and then put some massive incentives on it. 00:18:29:16 - 00:18:39:17 Sam Wilson And maybe that'll help kind of stave off the need for immediate, you know, reworking of the entire electrical grid. I mean, is that does that sound in keeping with what you heard? 00:18:39:17 - 00:19:08:15 Tom Wheelwright I think I think for sure there's that. And I'm, you know, the I mean, the the big problem is, is that if you're looking at from a math standpoint and you're talking about energy usage, solar is not entirely predictable. Right. But with your you know, with your own property, you're much better predicting that. Right? You know what it's going to have you know what your usage is. 00:19:08:15 - 00:19:30:03 Tom Wheelwright So it's really it's almost like like, you know how blockchain is distributed right out to the end. And Bitcoin, that's what makes Bitcoin work. Well, this is really just your distributing out to the end user. And I think when the end user takes care of it, then then the utility just doesn't have nearly as much that they have to produce. 00:19:30:12 - 00:19:48:07 Tom Wheelwright They don't, they, they can now use their, their established energy for, you know, for those special occasions when it's really cold or really hot. You know, so that they can maximize and don't have to build so much. 00:19:48:14 - 00:20:05:03 Sam Wilson Right? Right, right. No, that's really, really cool. Tom learned a lot here today. Let's let's take a look really over the lifetime of your career, I want to ask probably maybe some more, you know, things you've done right, things you've done wrong. You've built a lot of businesses. You've been a lot involved in a ton of real estate. 00:20:05:10 - 00:20:17:00 Sam Wilson You've done a lot of things over the years. So if there was one thing that you feel like you've done really well in your career and maybe one thing you feel like that was a mistake that our listeners could learn from, what would those things be? 00:20:18:00 - 00:21:02:08 Tom Wheelwright Oh, wow. I mean, there's it's so hard to pull from all those different mistakes because I've made so many, you know, I think the one thing that I've done really well is understood. I've learned what I really am good at and what I'm not good at, and I've stuck with doing what I'm good at. I find that the mistakes I make tend to be doing things I'm not good at or thinking, Oh, you know, well, this is tangentially related to so I'll go, you know, I'll go kind of my tone to that and I mean, for example, a good example was I was I got my series seven securities license years ago because I'm going, 00:21:02:08 - 00:21:27:12 Tom Wheelwright well, you know, financial planning tax go right together, right? Yeah. But the thing is, is that I realized pretty quick that that's a whole separate industry. And I don't want to I can't be really good at both tax and financial planning. Can't do it. So I very much find that the old saying a niche will make you rich. 00:21:27:23 - 00:21:54:08 Tom Wheelwright It's been very successful. I, the real estate investors I know who are super successful, they are very niche real estate investors. I met one yesterday literally. I met one yesterday that he specializes in small bay industrial properties, 2000 square foot base. So these are industrial properties. These are like, you know, like these are cabinet makers, people like that. 00:21:54:08 - 00:22:21:01 Tom Wheelwright Right. That's all he does. He's he's worth a fortune. He's made a fortune in that specialized area of investing. And he doesn't go outside of it any. And he stays in his. Yeah. He can expand his market, you know, his location a little bit, but he stays in his in that business. So for example, we build we have software, but it's software for our CPAs to use for the clients we have. 00:22:21:15 - 00:22:41:10 Tom Wheelwright So we have a software business, we have real estate, but the real estate is commercial real estate, the houses in our CPAs and and our business. So we don't stray from what we're really good at. And that's where we've been. That's where I've actually been most successful. And where I've been least successful is probably getting into things that I'm just not good at. 00:22:41:10 - 00:22:54:07 Tom Wheelwright Like I'm not a really good manager, I'm a much better leader than a manager. And so for me to be the manager is really bad idea and people are not going to like it. I'm going to cause problems. 00:22:55:02 - 00:23:12:20 Sam Wilson So I like it. I like it. That sound advice certainly appreciate you taking the time to share those. And that's I mean, yeah, that's that's something that, you know, like all of us can relate to, especially the the one about focus. I mean, just zero in in and stay in there. And that's a challenge. That's a challenge for, I think, all of us. 00:23:12:20 - 00:23:19:06 Sam Wilson And anyway it is. Yeah. I mean, especially as an entrepreneur, we only see opportunity. It's like, oh. 00:23:19:14 - 00:23:42:03 Tom Wheelwright Exactly, exactly. So literally, I'm an event, a mastermind group yesterday with 80 entrepreneurs. Right. And they're all doing different things. They all sound so exciting. They're great. And I, I actually talk to one that is doing something that I've been interested in. Well, he's like light years beyond. I mean, it would take us years and we'd never catch up, right? 00:23:42:05 - 00:24:00:01 Tom Wheelwright And I'm going, so let him do it. Right, right. We're way ahead in our industry. And, you know, we're taking on an industry that, you know, take, you know, taking on something that you're good at, that you really enjoy, that you thrive doing. I think that's what makes life great. 00:24:00:08 - 00:24:17:10 Sam Wilson Yeah, absolutely. Absolutely. And that that that brings you know, that's full circle to the idea of becoming a passive investor. Hey, if you want to you want to participate in that cool business, let me be a capital provider and you go and I'll just watch. I'll get your monthly report and it won't take any bandwidth from it. 00:24:17:10 - 00:24:23:04 Tom Wheelwright So that's I do a lot of that. I now do a lot of passive investing for that reason. 00:24:23:05 - 00:24:41:15 Sam Wilson Right, right. Because you can scale into things that you're interested in experts. Right, without being the expert. So that's very, very cool. Tom I've enjoyed certainly our conversation today. Thank you for taking the time to come on the show and really give us some insight into where we can be taking advantage of the positive incentives that are inside of the tax code. 00:24:41:20 - 00:24:52:04 Sam Wilson Learned a lot from you, learned from your mistakes and the things that you have done certainly really well. Thank you again for coming on. If our listeners want to get in touch with you and learn more about you and or your books, what is the best way to do that? 00:24:53:00 - 00:25:12:22 Tom Wheelwright Really best what I do is just go to our website well stability dot com and we're happy to evaluate your prior your tax return earns take a look at them see if there's something that we can do if if we can raise it if there if we can't we will let you know. We only like happy clients. 00:25:13:05 - 00:25:20:07 Sam Wilson Fantastic wealth ability dot com. We make sure we include that there in the show notes. Thank you again, Tom. Certainly appreciate it. 00:25:20:07 - 00:25:20:16 Tom Wheelwright Thank you. 00:25:21:23 - 00:25:43:08 Sam Wilson Hey, thanks for listening to the How to Scale Commercial Real Estate Podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen. If you can do that for us, that would be a fantastic help to the show. It helps us both attract new listeners as well as rank higher on those directories. 00:25:43:08 - 00:25:46:14 Sam Wilson So appreciate you listening. Thanks so much and hope to catch you on the next episode.

042: How to Achieve Tax-Free Wealth with Tom Wheelwright

Zen and the Art of Real Estate Investing

Play Episode Listen Later May 3, 2023 47:42

When it comes to real estate and taxes, many investors just don't know what they're doing. That lack of education and understanding could cost them a lot of money. There are multiple reasons someone might have yet to learn about how taxes affect their bottom line, and sometimes, it just comes down to them not being ready. But if you are prepared to learn, knowing some simple tax rules as they apply to businesses could save you a lot of money and go a long way toward helping you continue to build wealth. In this episode of Zen and the Art of Real Estate Investing, entrepreneur, bestselling author, Rich Dad advisor, and international tax authority Tom Wheelwright joins Jonathan to talk about how tax knowledge can put your real estate investing career on a new trajectory. His book, Tax-Free Wealth, is a bestseller, and his new book, Win-Win Wealth Strategy, is a Wall Street Journal and USA Today bestseller. Tom explains one of the secrets to building real wealth and why the U.S. government wants you to pay fewer taxes. In this episode, you will hear: Why people don't know what they're doing with taxes and real estate investing You have to be in partnership with your accountant What Tom's WealthAbility System is, and how CPAs can use it to make their work easier Where new real estate investors get it wrong with their asset setups The impact of depreciation and cost segregation How Tom discovered accounting and why he says taxes don't have to be difficult His book, Tax-Free Wealth, what inspired him to write it, and what his new book, Win-Win Wealth Strategy, is about The Declaration of Financial Independence and the freedom wealth can give you Tom's first exposure to real estate investing and when he began investing His partnership with Robert Kiyosaki and how they met Why investing isn't nearly as complicated as people think and his advice for new investors A big mistake that real estate investors, in general, are making Follow and Review: We'd love for you to follow us if you haven't yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. If you enjoyed this episode, we've created a PDF that has all of the key information for you from the episode. Just go to the episode page at http://www.trustgreene.com/podcast/zen/042 to download it. Supporting Resources: Tom Wheelwright's website - tomwheelwright.com LinkedIn - www.linkedin.com/in/tomwheelwright Wealthability - www.wealthability.com The Wealthability Show - podcasts.apple.com/us/podcast/the-wealthability-show-with-tom-wheelwright-cpa The Win-Win Wealth Strategy -winwinwealthstrategy.com Tax-Free Wealth - www.amazon.com/Tax-Free-Wealth-Massive-Permanently-Lowering/dp/1947588052 Who Not How - www.amazon.com/Who-Not-How-Accelerating-Teamwork/dp/1401960588 Rich Dad CASHFLOW Board Game - www.amazon.com/CASHFLOW-Board-Exclusive-Strategy-Delivered/dp/B00M085AMI Website - www.streamlined.properties YouTube - https://www.youtube.com/c/JonathanGreeneRE/videos Instagram - www.instagram.com/trustgreene Instagram - www.instagram.com/streamlinedproperties TikTok - www.tiktok.com/@trustgreene Zillow - www.zillow.com/profile/Streamlined%20Prop%20eXp Bigger Pockets - www.biggerpockets.com/users/TrustGreene Facebook - www.facebook.com/streamlinedproperties/ Email - info@streamlined.properties Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

Ranching & Farming [5/7 Series] – Tom Wheelwright & Kacy Atkinson - The WealthAbility Show

farming atkinson ranching tom wheelwright 7 series wealthability

Play Episode Listen Later Apr 27, 2023 44:07

Have you considered the benefits of investing in agriculture? Could it be something you'd enjoy building for your family, small business, or during your retirement? Learn more about your ad choices. Visit megaphone.fm/adchoices

Renewable Energy Expert [4/7 Series] – Tom Wheelwright & Dan Fiorino - The WealthAbility Show

renewable energy tom wheelwright 7 series fiorino wealthability

Play Episode Listen Later Apr 20, 2023 56:10

Why not make an impactful investment by transitioning to clean energy? How can our investments reshape our finances and the world for our children and grandchildren in the years ahead? Learn more about your ad choices. Visit megaphone.fm/adchoices

Real Estate Tax Investments The Government Will Pay You To Make with Tom Wheelwright (The Real Estate Investing Club #330)

The Real Estate Investing Club

Play Episode Listen Later Apr 17, 2023 37:59

Tom Wheelwright is a CPA, CEO of WealthAbility and Best-Selling Author of Tax-Free Wealth and The Win-Win Wealth Strategy. Wheelwright is a leading wealth and tax expert, global speaker, and Entrepreneur Magazine Contributor. Tom is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki (Rich Dad Poor Dad), Tom frequently speaks at conferences worldwide to entrepreneurs on these topics. His work has been featured in The Wall Street Journal, Washington Post, Forbes, Accounting Today, Investor's Business Daily, FOX & Friends, ABC News Radio, NPR, Marketplace and many more media.. Tom Wheelwright is a real estate investor who has a great story to share and words of wisdom to impart for both beginning and veteran investors alike, so grab your pen and paper, buckle up and enjoy the ride. Want to get in contact with Tom Wheelwright? Reach out at https://tomwheelwright.com/Want to become financially free through commercial real estate? Check out our eBook to learn how to jump start a cash flowing real estate portfolio here https://www.therealestateinvestingclub.com/real-estate-wealth-book Enjoy the show? Subscribe to the channel for all our upcoming real estate investor interviews and episodes. ************************************************************************ GET INVOLVED, CONNECTED & GROW YOUR REAL ESTATE BUSINESS LEARN -- Want to learn the ins and outs of real estate investing? Check out our book at https://www.therealestateinvestingclub.com/real-estate-wealth-book PARTNER -- Want to partner on a deal or connect in person? Email the host Gabe Petersen at gabe@therealestateinvestingclub.com or reach out on LinkedIn at https://www.linkedin.com/in/gabe-petersen/ WATCH -- Want to watch our YouTube channel? Click here: https://bit.ly/theREIshow ************************************************************************  ABOUT THE REAL ESTATE INVESTING CLUB SHOW  Hear from successful real estate investors across every asset class on how they got started investing in real estate and then grew from their first deal to a portfolio of cash-flowing properties. We interview real estate pros from every asset class and learn what strategies they used to create generational wealth for themselves and their families. The REI Club is an interview-based real estate show that will teach you the fastest ways to start and grow your real estate investing career in today's market - from multifamily, to self-storage, to mobile home parks, to mix-use industrial, you'll hear it all! Join us as we delve into our guests career peaks and valleys and the best advice, greatest stories, and favorite tips they learned along the way. Want to create wealth for yourself using the vehicle of real estate? Getting mentorship is the fastest way to success. Get an REI mentor and check out our REI coInterested in becoming a passive investor in one of my projects? My own company, Kaizen Properties, is looking for capital partners for our upcoming deals. We invest in what are known as “recession resistant assets”: self storage, MH & RV parks, and industrial properties. If you are interested, go to the website and click on the “Invest with Us” button at the bottom of the page.Support the show

How to Win the Game of Taxes and Wealth with Tom Wheelwright

Keep What You Earn

Play Episode Listen Later Apr 11, 2023 45:08

I am joined by Tom Wheelwright, CPA, CEO of WealthAbility®, Rich Dad Advisor, entrepreneur, international speaker, and bestselling author. In our discussion, we discuss a variety of topics including the common belief that it's patriotic to pay more in taxes to support the government, the difference between conservative and aggressive tax deductions, and advice for entrepreneurs to find better financial professionals to fit their needs. We also address some common tax myths and offer tips for entrepreneurs who feel they're overpaying in taxes, and discuss the common misconception surrounding the idea that the rich pay no taxes. If you're looking to build your knowledge base or expand your team to improve your tax strategy as a business owner or entrepreneur, this episode is a must-listen. Tom's expertise and insights will help you navigate the complex world of tax advice and make informed decisions to keep more of what you earn. What you'll hear in this episode: [3:24] Tom's origin story and how he became an accountant. [6:45] Tom's passion for educating entrepreneurs and early-stage business owners. [8:45] When someone feels that it is patriotic to pay more in taxes to support the government, what are some ways that Tom challenges this thought? [11:40] The difference between conservative and aggressive tax deductions. [13:40] How can tax professionals better advise their clients to make better decisions? [15:40] How can you tell which professionals will be good advisors? [19:30] Dispelling some common tax myths [22:20] As an entrepreneur that thinks they are overpaying in taxes, what are some tips to begin working towards resolving this? [27:00] Why you should give your accountant a hug after the last three years with all of the tax law changes. [30:30] What is there a common misconception that the rich pay no taxes? [34:45] Is it actually possible to live tax-free? Connect with Tom: wealthability.com The WealthAbility Show WealthAbility for CPAs * Related episodes: 220. How Much Should I Pay Myself as an S Corp Owner? 241. Five Key Financial Building Blocks for Your Business 265. Taxes for Real Estate Investors with Chris Picciurro * Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/ * Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa * Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so * Hire us: https://www.fitnancialsolutions.com/accounting * See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator * Find me on IG @shannonkweinstein * Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ * Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.

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Real Estate Expert [3/7 Series] – Tom Wheelwright & Dr. Tom Burns - The WealthAbility Show

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Play Episode Listen Later Mar 30, 2023 51:23

Have you wanted to invest in Real Estate but are discouraged and don't know where to start? Or are you already well versed in the world of investing and are exploring a deeper understanding in an uncertain economy? Learn more about your ad choices. Visit megaphone.fm/adchoices

EP 162 | Creating Tax Free Wealth with Rich Dad Advisor Tom Wheelwright (Encore)

The Passive Income Attorney Podcast

Play Episode Listen Later Mar 16, 2023 48:22

On this encore episode of the Passive Income Attorney Podcast, Seth is joined by Rich Dad Advisor Tom Wheelwright as they take a deep dive into creating tax free wealth. Don't miss Tom's expert insights into how to make your money work for you by investing into tax-incentivized alternative investments. Tom is a tax and wealth expert, CPA, CEO of WealthAbility, and best-selling author of Tax-Free Wealth. Inside this episode he shows you how you can make Uncle Sam your friend rather than your foe. He also shares his personal story about how he met Robert Kiyosaki and how that one moment changed each of their lives changed forever. Enjoy the episode! “The more wealth you build, the less taxes you pay.” HIGHLIGHTS: Here's a breakdown of what to expect in this episode: The best strategies to start reducing your tax burden The story of how Tom and Robert Kiyosaki met The biggest tax reductions in real estate Tax secrets for passive investors Breakdown of the real estate professional test Why the IRS audit is not something to be feared Red flags that will you get audited How to find a great tax advisor And so much more! ABOUT | TOM WHEELWRIGHT: TOM WHEELWRIGHT - TAX AND WEALTH EXPERT, is a CPA, CEO of WealthAbility®, best-selling author of Tax-Free Wealth (Rich Dad Advisors Series), speaker, entrepreneur, and host of 2 popular podcasts: The WealthAbility™ Show with Tom Wheelwright CPA and The WealthAbility® for CPAs Show. Wheelwright has spoken on stage on every continent to over 100k entrepreneurs, small business owners, and investors. His goal is to help people achieve their financial dreams faster by permanently and legally reducing their taxes. Wheelwright is a contributor to Entrepreneur magazine, and his work has been seen in Forbes, The Wall Street Journal, The Washington Post and on FOX and Friends, Marketplace / NPR, ABC News Radio, and hundreds of media. FIND | TOM WHEELWRIGHT: Website: https://tomwheelwright.com/ WealthAbility® Website: https://wealthability.com/ CONNECT | SETH BRADLEY: Get Started | Download The Freedom Blueprint: http://www.attorneybydesign.com Subscribe and Leave a Rating and Review: Apple: https://podcasts.apple.com/us/podcast/the-passive-income-attorney-podcast/id1543049208 Spotify: https://open.spotify.com/show/5a0Qp9G2x337nZCDWoVgoO?si=MKn01_t8Tfu0JBZCnagrCw Join EPIC | The Esquire Passive Investor Club: https://passiveincomeattorney.com/join-the-passive-income/ Join | The Passive Income Attorneys Facebook Group: https://www.facebook.com/groups/passiveincomeattorneys Follow Us: Website: https://passiveincomeattorney.com/ LinkedIn: https://www.linkedin.com/in/sethpaulbradley/ Facebook: https://www.facebook.com/passiveincomeattorney Instagram: https://www.instagram.com/passiveincomeattorney/

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131. The Top Five Tax Strategies for Entrepreneurs to Use in 2023 to Pay Less Tax

The Root of All Success with The Real Jason Duncan

Play Episode Listen Later Feb 21, 2023 89:22

SPECIAL RELEASE EPISODE: This is a replay of a recent Entrepreneur Masters Series webinar recorded on January 11 with guest expert Jef Cheney, founder of Edwards Ingram CPAs. Jef is a Certified Public Accountant and a Certified Fraud Examiner with over 20 years of extensive experience in tax code navigation for a wide array of business and individual clients. Jef is not your typical accountant, and his continuous study of developing tax regulations make him one of the nation's most sought-after tax consultants and advisors. Are you ready to pay LESS on your 2023 taxes? With over 23 years of extensive experience in tax code navigation, for a wide array of business and individual clients, Jef Cheney is ready to share his TOP 5 STRATEGIES to do so. Jef is not your typical accountant and his continuous study of developing tax regulations make him one of the nation's most sought-after tax consultants and advisors. Jef has worked with Wealthability and other tax strategists to offer unique services highly sought after in the small business space. To date, Jef has saved clients well over $10 million in tax savings. Join us and learn how to save NOW! Contact Jef Cheney at de-taxify.com The Entrepreneur Masters Series ("EMS") with The Real Jason Duncan is a 90-minute live webinar series designed to bring high-value content that is practical and tactical for today's successful entrepreneurs. Twice a month I bring in a top expert in areas related to entrepreneurship, leadership, sales, or financial literacy. It is a masterclass on specific topics related specifically to growing and building entrepreneurial companies. Each episode is conducted live on Zoom. Each episode is also released as a special episode of The Root of All Success podcast, which is an internationally syndicated podcast on the C-Suite Radio Network hosted by me, The Real Jason Duncan. Register for the next EMS for free at therealjasonduncan.com/ems Love the show? Subscribe, rate, review & share! https://therealjasonduncan.com/podcast This episode is sponsored by Dubb. Up your email game and make videos that convert! Get two free weeks and 50% off your first two months with this link: therealjasonduncan.com/dubb Learn more about your ad choices. Visit megaphone.fm/adchoices

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Who imagined that TAXES could be FUN? Tom Wheelwright tells us how.

The Relatable Voice Podcast

Play Episode Listen Later Dec 16, 2022 18:44

Welcome back to another episode of the Relatable Voice podcast! On today's episode, we are headed to sunny Arizona to speak with Tom Wheelwright. Tom is a CPA and the CEO of WealthAbility. He is also a best-selling author and his latest book is called The Win Win Wealth Strategy: 7 investments the government will pay you to make. Find out more at: https://tomwheelwright.com/ Learn more about your ad choices. Visit megaphone.fm/adchoices

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#294: Turning Income Into Assets to Build Wealth with Tom Wheelwright (Rebroadcast)

Healthcare Entrepreneur Academy Podcast

Play Episode Listen Later Nov 29, 2022 43:48

“Employees pay the highest percentage of taxes. Big business and investors pay the least.” – Robert Kiyosaki In today's rebroadcast episode, Jason A. Duprat, Entrepreneur, Healthcare Practitioner, and Host of the Healthcare Entrepreneur Academy podcast, sits down with Tom Wheelwright, CPA, and CEO of "WealthAbility." Tom highlights how your business can be the best tax shelter. We also learn how to save more money while increasing your gross income, as well as tax strategies for long-term tax reduction. Tune in to learn more from Robert Kiyosaki's Tax Advisor himself! 3 KEY POINTS: The government wants and supports business owners for the sake of the economy. One beginner mistake is handling taxes yourself without having a financial partner. Instead of asking if it's deductible, the better question is “How do I make it deductible?” EPISODE HIGHLIGHTS: Tom began his career with Ernst & Young, where he spent seven years. He went on to work for a Fortune 1000 company and has spent 25 years buying and selling CPA firms. Tom was handpicked by Robert Kiyosaki to be one of his Rich Dad advisors. He serves as Robert's tax advisor as well. He's authored two chapters in “The Book of Real Estate” by Robert and contributed to four other books. Most recently, Tom has been touring with Robert providing financial education. Together, they have 50 CPA firms worldwide. Tom left big company accounting because he wanted to work with entrepreneurs. When business owners work from home, they get a tax benefit. However, employees don't so there's massive inequality. You should consider starting a side hustle. It allows you to put extra money in your pocket and offers massive tax savings that can add up. One small business tax strategy is to have a home office. Rather than take a flat deduction, itemize. Also, it's better to claim % of rooms vs % of square footage. If you set up a home office right, not only does it give you a deduction for a portion of the utilities, maintenance, and even the cost of the house, but it even gives you a bigger deduction for your car because it turns your commute into a business expense. Ultimately, you want to evolve into an LLC or S Corp for tax deductions. With an S Corp, only your wages are taxed, not the distribution. An S Corp can cut your taxes in half. Tom cautions against filing as a sole proprietor because it's risky and costly to set up. In addition, 100% of your net income is subject to social security tax. Never plan to be small. Act like a big guy and get big guy benefits! Business owners often overlook the fact that business travel and meals are tax-deductible. Don't intermingle funds. Your business isn't a hobby. You must behave like a real business to reap the best tax benefits and optimize write-offs. Not only is it okay to employ your children, but the government likes you to employ them and they'll give you tax benefits. Children can earn up to $12,000 tax-free, allowing them to save for college more effectively than a 529 Plan. As an entrepreneur, there are three tax planning principles to keep in mind: reduction of taxable income, tax credits, and tax rates. Focus on permanent tax benefits vs postponing paying taxes. Have a team including a tax advisor, attorney, insurance agent, and bookkeeper. TWEETABLE QUOTES: “If you take your money and you put it back into your business, you don't pay any tax.” – Tom Wheelwright “Employing your children is a great way to teach them how to work and the value of money and investing.” – Tom Wheelwright CONNECT WITH JASON DUPRAT LinkedIn | Facebook | Instagram | Youtube Email: support@jasonduprat.com Join our Facebook group: https://jasonduprat.com/group RESOURCES Want to become a Ketamine Therapy provider? Enroll NOW in The Ketamine Academy course: https://ketamineacademy.com/presentation Sign up for one of our free business start-up Masterclasses by heading over to https://jasonduprat.com/freemasterclass Have a healthcare business question? Want to request a podcast topic? Text me at 407-972-0084 and I'll add you to my contacts. Occasionally, I'll share important announcements and answer your questions as well. I'm excited to connect with you! Do you enjoy our podcast? Leave a rating and review: https://lovethepodcast.com/hea Don't want to miss an episode? Subscribe and follow: https://followthepodcast.com/hea RELATED EPISODES: #248: ERIC MILLER: BUILD BUSINESS PROFITS, ENTERPRISE VALUE & ASSETS AS A PRACTICE OWNER #132: TACTICAL TUESDAY: PROTECT ASSETS & LIMIT LIABILITIES WITH AN LLC #232: TACTICAL TUESDAY: TWO FACTORS THAT IMPACT YOUR EARNINGS AS A BUSINESS OWNER: TAX RATES & RETIREMENT PLANNING #HealthcareEntrepreneurAcademy #healthcare #HealthcareBoss #entrepreneur #entrepreneurship #podcast #businessgrowth #teamgrowth #digitalbusiness

157. Tom Wheelwright Interview - Why We Should “Partner With The Government” (Part Two)

Short Term Rental Riches

Play Episode Listen Later Nov 15, 2022 17:01

We have an extra special guest this week that you will not want to miss! He is one of the leading authorities on taxes in the nation when it comes to building your wealth tax free. You may recognize the name, Tom Wheelwright, from his bestselling book Tax-Free Wealth: How to Build Massive Wealth By Permanently Reducing Your Taxes or because he is the CPA for Robert Kiyosaki! (author of Rich Dad Poor Dad). Tom is an excellent teacher; his goal is to help people achieve their financial dreams faster by permanently and legally reducing their taxes. He has been a contributor to Entrepreneur magazine, and his work has been seen in Forbes, The Wall Street Journal, The Washington Post and on FOX, NPR, ABC News Radio and hundreds of other media outlets.This week we will break down some insights from Tom's latest book (I just had the pleasure of reading) The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make. Don't miss this extra special week as we discuss: Why short term rentals can have excellent tax advantages The difference between active and passive income Material Participation vs. being a real estate professional Why the government will discount your investment activities (if you pick the right ones) Why the rich don't pay taxes If you want to hear more from Tom (make sure you listened to part one) but you can also find Tom at www.Wealthability.com or on one of his two popular podcasts: The WealthAbility® Show with Tom Wheelwright CPA and The WealthAbility® for CPAs Show. Are you enjoying the podcast? Please subscribe, leave a rating and a review, and share it! This helps us reach others that may find the info helpful as well. Get a copy of my 12 proven house rules to protect your property from almost every negative situation (highly recommended) You can find all of our links here including our website, recommended resources, upcoming live events, short-term rental playbook, Instagram, and more!

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Timeless Strategies To Thrive During Inflationary Economies with David Benham of the Expert Ownership Podcast

Free From Wall Street

Play Episode Listen Later Nov 9, 2022 34:20

Gain the knowledge to capitalize on the current market in today's special episode with David Benham from the Expert Ownership Podcast. Stay tuned to learn how you can generate wealth while investing with purpose today. Key takeaways to listen for 08:29 Tax benefits of commercial real estate investing 14:01 What factors contribute to a successful investment 17:00 What does it mean to invest with purpose? 19:38 The cost of volatility and how to hedge against it 30:36 Reasons you should join mastermind groups Resources mentioned in this episode 06:44 Four-Minute Mile by Roger Bannister | Paperback and Kindle 10:21 Tax-Free Wealth by Tom Wheelwright | Paperback and Kindle 10:27 Rich Dad Poor Dad by Robert T. Kiyosaki | Paperback and Kindle 10:31 WealthAbility 16:30 Love Life 21:10 Volatility Calculator Do you want to be intentional about giving and making a difference in the lives of others? Go to https://www.investingwithpurpose.org/ to learn more about Integrity Holdings Group's Donor Advised Fund and help empower small communities worldwide today. About David Benham David is a co-founder of Benham Companies, a group of for-profit and non-profit businesses dedicated to creating & providing value in multiple spheres of the marketplace. He is a former professional baseball player, nationally acclaimed entrepreneur, and best-selling author. With his twin, Jason, he has started dozens of businesses, written several books, and launched an online coaching series called Expert Ownership, where they train people to serve God, thrive in business, and live a life of impact. Connect with David Website: Benham Brothers | Expert Ownership Connect with Us Want to learn more about real estate investing? Visit Integrity Holdings Group to sign up for our 7 Day Passive Real Estate Investing Course (it's free)!

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156. Tom Wheelwright Interview - Why We Should “Partner With The Government” (Part One)

Short Term Rental Riches

Play Episode Listen Later Nov 8, 2022 22:07

We have an extra special guest this week that you will not want to miss! He is one of the leading authorities on taxes in the nation when it comes to building your wealth tax free. You may recognize the name, Tom Wheelwright, from his bestselling book Tax-Free Wealth: How to Build Massive Wealth By Permanently Reducing Your Taxes or because he is the CPA for Robert Kiyosaki! (author of Rich Dad Poor Dad). Tom is an excellent teacher; his goal is to help people achieve their financial dreams faster by permanently and legally reducing their taxes. He has been a contributor to Entrepreneur magazine, and his work has been seen in Forbes, The Wall Street Journal, The Washington Post and on FOX, NPR, ABC News Radio and hundreds of other media outlets.This week we will break down some insights from Tom's latest book (I just had the pleasure of reading) The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make. Don't miss this extra special week as we discuss: Why you should be an active partner with the government Why the rich don't pay taxes What you should do if your CPA is skeptical about saving taxes Strategies for saving tax Why the government will discount your investment activities (if you pick the right ones) If you want to hear more from Tom (make sure to catch part two) but you can also find Tom at www.Wealthability.com or on one of his two popular podcasts: The WealthAbility® Show with Tom Wheelwright CPA and The WealthAbility® for CPAs Show. Are you enjoying the podcast? Please subscribe, leave a rating and a review, and share it! This helps us reach others that may find the info helpful as well. Get a copy of my 12 proven house rules to protect your property from almost every negative situation (highly recommended) You can find all of our links here including our website, recommended resources, upcoming live events, short-term rental playbook, Instagram, and more!

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The Time I Bought a CPA Firm and Robert Kiyosaki was a Client with Tom Wheelwright

The Wealth Without Wall Street Podcast

Play Episode Listen Later Sep 8, 2022 40:05

Taxes take away a big chunk of our income. No wonder most people look at it negatively but did you know there are legitimate ways to reduce your tax payments? Today's guest believes that taxation is actually one of the most powerful tools for wealth creation. In this episode, Joey and Russ interview Tom Wheelwright, an entrepreneur, bestselling author, Rich Dad Advisor® & International Authority on Tax. He is the CEO of WealthAbility, a company that offers a clear and simple guide for reducing taxes to start building your massive passive cash flow. Tom's goal in life is “to make taxes fun, easy and understandable.“ Tune in as Tom shares what he learned from his CPA practice and from Robert Kiyosaki himself. Top 3 Things You'll Learn: How to find a great CPA and Tax Advisor Examples of legal tax incentives The importance of keeping good accounting records and proper documentation of all relevant transactions About Our Guest: Tom Wheelwright is an entrepreneur, bestselling author, Rich Dad Advisor® & International Authority on Tax. He is the CEO of WealthAbility, a company that offers a clear and simple guide for reducing taxes to start building your massive passive cash flow. Tom's goal in life is “to make taxes fun, easy and understandable.“ Resources: Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes (Rich Dad Advisors) by Tom Wheelwright, CPA (Chapter 23 is all about How to Find a Great Tax Advisor) - https://www.amazon.com/Tax-Free-Wealth-Permanently-Lowering-Advisors/dp/1937832058 (https://www.amazon.com/Tax-Free-Wealth-Permanently-Lowering-Advisors/dp/1937832058) The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make by Tom Wheelwright, CPA - https://winwinwealthstrategy.com/ (https://winwinwealthstrategy.com/) Connect with Tom Wheelwright: Website - https://wealthability.com/ (https://wealthability.com/) The WealthAbility® Podcast - https://wealthability.com/show/ (https://wealthability.com/show/) Take Advantage of a Free Financial Strategy Call: https://go.wealthwithoutwallstreet.com/free-financial-call (https://go.wealthwithoutwallstreet.com/free-financial-call)

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Give Employees Space to Think Differently with Tom Wheelwright at WealthAbility

Leaders in the Trenches

Play Episode Listen Later Sep 8, 2022 23:15

An effective leader knows it is necessary to give employees space and time to innovate. Give employees space to think, share ideas, and create ways to solve problems. Leadership is about supporting the people around you, empowering them, and allowing them to contribute their knowledge so that the team can become more than the sum of its parts. Today's guest is Tom Wheelwright, founder, and CEO of WealthAbility and Best-Selling Author of Tax-Free Wealth. Inc Magazine ranked his company #3326 on the 2022 Inc 5000 list. WealthAbility is a financial education company equipping entrepreneurs and investors with the information and systems they need to reduce taxes legally. Tom shares how he gives employees space to think, and it helps them develop leaders faster. He also talked about allowing employees to think differently within the workplace to boost creativity and productivity and improve motivation. Discover how getting people to own it helped them to grow. Get the show notes for Give Employees Space to Think Differently with Tom Wheelwright at WealthAbility Click to Tweet: Listening to a fantastic episode on Growth Think Tank featuring #TomWheelwright with your host @GeneHammett https://bit.ly/gttTomWheelwright #GiveEmployeesSpace #GeneHammettPodcast #Inc2021 #GHepisode919 #financialeducationcompany #CPA #taxexpert Give Growth Think Tank a review on iTunes!

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1892: Stop Losing Your Investment Capital to Inflation! Tom Wheelwright, Live Event: Recession Proof Investing Summit

Creating Wealth Real Estate Investing with Jason Hartman

Play Episode Listen Later Sep 7, 2022 52:35

Jason Hartman is on a mission to help you understand that timing the market is a fool's errand! You keep losing your investment capital to inflation by waiting and none of us are getting any younger… Jason Hartman is a guest on Rich Dad Advisor Tom Wheelwright's WealthAbility show and shares some new ideas and historical perspectives on the current state of the market. In these turbulent times, what should people be doing to create or preserve wealth? That's the question on everybody's mind right now. Jason and Tom explore the possibility that we are at a point of real transition after this amazing bull market in real estate over the last 12 years. Key Takeaways: Jason's editorial 0:00 The Creating Wealth Show Episode 1892: Do you feel the power? 2:00 Empowered Investor Pro, the rental market and upcoming guest: economist Eric Basmajian 4:15Jason's mission - how much yield are you going to lose in waiting? 5:00 You keep losing your investment capital to inflation by waiting 8:12 Empowered Investor Inner Circle - join today! 10:00 CoreLogic housing stats - month over month growth rate in for rents 13:45 Live, virtual event in October - Recession Proof Investing Summit - learn more at JasonHartman.com 14:40 Owner's Equivalent Rent Tom interviews Jason 18:02 Jason Hartman is a guest The WealthAbility Show, hosted by Rich Dad Advisor Tom Wheelwright 18:38 New ideas and perspectives on the current state of the market 19:20 We've had an amazing bull market in real estate in the last 12 years 21:10 Crypto has not been an inflation hedge 23:05 Arizona had the highest official inflation rate in the country 25:01 Commodity inflation 28:31 Demand vs supply issues in the housing market 31:18 Investment properties are priced based on the income they produce 32:45 Useless to regret the past 35:36 Rents have skyrocketed over the last two years 36:08 Giant blindspot when it comes to affordability 40:25 Basing RE values on the past vs the future 42:46 Using Tom's Win Win Wealth Strategy in real estate 45:23 Advice from Robert Kiyosaki 47:06 Overall ROI 49:15 Two things that people should do over the next 6 to 12 months Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com

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Tax Planning with Tom Wheelwright

Money Savage

Play Episode Listen Later Aug 18, 2022 22:32

LifeBlood: We talked about tax planning, how to be an active participant versus silent, strategies for reducing income tax liability, and how to get started, with Tom Wheelwright, CPA, Best-selling author, and Founder and CEO of WealthAbility. Listen to learn why you should start thinking of the government as your partner! You can learn more about Tom at WinWinWealthStrategy.com, Facebook, Twitter, YouTube and LinkedIn. Thanks, as always for listening! If you got some value and enjoyed the show, please leave us a review here: https://ratethispodcast.com/lifebloodpodcast You can learn more about us at LifeBlood.Live, Twitter, LinkedIn, Instagram, YouTube and Facebook or you'd like to be a guest on the show, contact us at contact@LifeBlood.Live. Stay up to date by getting our monthly updates. Want to say “Thanks!” You can buy us a cup of coffee https://www.buymeacoffee.com/lifeblood

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410: Are We In A Recession? IRS Audits Increase with Tom Wheelwright