Are you getting a history lesson or a plan?
To minimize your taxes, you need a plan.
You need concepts and strategies that leave more on your bottom line, without raising “red flags” or straying into “gray areas.” It doesn’t matter how good your current accountant is with a stack of receipts on April 15. If you haven’t planned right, by April 15 it’s just too late.
Ask yourself the following questions:
- Have you organized your business right?
- Do you have the right benefit plans for yourself and your employees?
- Do you have the right retirement plan to prepare for your future.
- Are you taking advantage of all the legitimate deductions, credits, loopholes, and strategies the tax code offers?
If you answered no or are not sure about your answers, you are probably missing out on some substantial tax savings opportunities. Contact me to learn more about your potential savings.
What Would You Do With $15,000?
Ron came to us after he bought a small rental property down the street from his home. He bought the property because he heard it would be a great tax shelter. But he was frustrated because he didn’t see how it was helping him.
After one strategy meeting, we discovered the problem. Due to income limitations in the tax law, Ron couldn’t deduct his rental, and they remained “suspended.” We also found that he had quite a bit of equity built up in his home and rental that was not being used. We developed a plan for Ron to use tax loopholes to his advantage and deduct those real estate losses against his other income. He also repositioned some of the equity in his home to buy more properties, creating even more deductions. In just one year, we created over $50,000 of tax free income to Ron and cut his tax bill by over $15,000!
We partner with business owners and investors throughout the United States.
We have the experience – and more important, the proactive attitude – to give you more than just a history lesson.
2,471% Return on Investment!
Enrique, was a top executive in a growing distribution business. A few years into the business, he was awarded stock options and eventually the company went public. Enrique was an overnight millionaire!
Enrique was a whiz at selling his company’s products. But he didn’t understand numbers. He got overwhelmed and nervous when he heard terms unfamiliar terms and relied on “experts” to make his accounting and financial decisions. That meant using a girl at the local tax franchise to prepare his returns. He had been with her 20 years and assumed she did a good job; she seemed to speak the “tax talk” he’d often heard around the office. And she was affordable – what could anyone else possibly do for him? That’s when a colleague introduced him to Provident.
Although he drew a sharp breath when he learned the price for the tax strategy, he thought of it as an investment and decided to give it a try. He was used to waiting 5 years for a return on investments so he calculated that as long as we saved him at least $700 per year in taxes, in no time, he’d have his money back.
At his first strategy appointment, his Provident Tax Strategist discovered that Enrique’s tax preparer had used the most expensive possible method for exercising his options. That cost him a whopping 44% tax! Luckily, he signed up as a client before he had exercised the bulk of his options. We quickly crafted a plan to stop the bleeding, using the “exercise and hold” strategy to exercise the remaining options when he was not subject to AMT tax. We also created an LLC and sold his primary residence to it to take advantage of the primary residence gain exclusion and turn the property into a rental. With the increased basis in the rental property, he was able to receive a larger deduction for depreciation expense, creating tax-free income from the property. His wife qualified as a real estate professional, which let him deduct valuable real estate losses against his salary. In the first year, he saved over $80,000 in taxes and each year after that he saved approximately $10,000 in tax from our strategy.
Enrique’s Return on His Tax Plan
Enrique’s investment in his tax plan has returned over $124,000 in AFTER TAX cash flow – a return of 2,471%. Now THAT is a good investment!
Are you ready to start saving money in taxes? Call David Auer today at 1-85-LOWER-TAX