Best way to save on taxes now??

Question

Bill Hampton · Answer

@AmberLandry, I am a tax advisor in the Atlanta area. Inbox me so I can help.

Amy Webber · Answer

Talk to your tax professional about Section 179 depreciation deductions.  You have to spend money to save money.  May be a strategy for you, may not.

Linda Weygant · Answer

Exactly - in addition, you're going to have to lay everything out on the table for the professionals you ask.  Actual numbers from this year, tax returns from prior years, strategies you're currently employing, etc.  You'll need to bring all your income, not just your business income.  Laying out an effective tax strategy involves a lot of work at this level, so just be prepared for this to not be quick and easy.

I'd start by first having a meeting with your current adviser and ask them to explain their current advice.  "Paying yourself a bonus" sounds suspiciously like you're working within a C-Corporation and that may be your first issue right there due to all the inherent issues involved in a C-Corporation with double taxation, etc.

Daniel Hyman · Answer

@Amber Landry Good advice from @Ryan Detig. Accurate tax advice from tax strategists can only be given if we know your entire picture. You have to choose between trusting your current CPA or consulting with other CPA's. Whoever you go with, just make sure that they are familiar with the intricacies of real estate tax strategies and compliance.

Rob Lawrence · Answer

I just read "Tax Free Wealth" by Tom Wheelwright.  I think you should read this book.  Educate yourself so you can understand how to avoid taxes through proper tax planning.  I can't afford a tax advisor yet, so this is my main go to.

Ryan Detig · Answer

@Amber Landry  I am not sure what "high income" is but I personally would probably listen to the advice of the professional.  If you don't trust them, then set up a meeting with 2 other CPAs, pay them for an hour of their time, and see what they think.  I hear a lot of people that are concerned ( AKA complain) about a high tax bill and my response is usually "talk to a professional (or two) to maximize your tax savings as much as is allowed by law.  After you do that don't worry about it because if you still pay a lot in taxes it means you are making a lot of money so be grateful".  I usually get dirty looks after that :).  I think it is all perspective.  @Amanda Han has a great company out of Anaheim CA that specializes in tax planning/strategy for real estate investors.  It will run you around 4K for a full analysis and recommendation but if "high income" is really high income that 4k could be well worth it.  Her company can be found a Keystonecpa.com