If you can qualify as a real estate professional and you are paying taxes, than one of two things is wrong:
- You don’t own enough real estate, or
- You don’t have the right CPA.
There is a very specific list of things you have to do to qualify as a real estate professional status. I’m going to go over it in a blog in a few days.
If you or your spouse can qualify, and you file as married filing jointly on your tax return, you can take an unlimited amount of real estate passive loss against your other income.
You can use depreciation to manipulate the timing of expenses, so it’s possible to create passive losses in the right amount at the right time.
And that’s how we get to the point that where you can never pay taxes.
You need to:
- Be a real estate professional,
- Buy real estate that will furnish depreciation,
- Use proven depreciation strategies, including the cost segregation study,
- Keep good records to prove your status
- Properly report the status on your tax return.
That’s it! Want to know more? Contact Richard at 888-592-4769 to set up a consultation or join me on the twice monthly coaching calls.
That was the real estate tax strategy. There are dozens of business tax strategies and one that means you never pay tax.
Just like the real estate professional tax strategy, this one may not work for you. If it doesn’t, hang on, there is likely to be something I talk about later that will work for you.
How can you pay no tax on your business?
Move yourself and your business offshore. Or you could move just your business offshore and not bring any income back.
That’s the topic of my 10/21/15 coaching class – how to legally move a business offshore.
Of course, the best is if you can also move yourself offshore because you can then make about $250,000 (if you’re married) and not pay tax.
Otherwise, the way to do it is to move all or part of your business offshore. You have to follow the 3 Cs.
- Customers & fulfillment. Your customers/fulfillment have to be outside the US. Otherwise, you may have US nexus and even if your business is offshore, you have US tax obligations.
- Your company needs to be a foreign corporation, or taxed like one. Otherwise, the income is going to flow right to you just like a US LLC. That means you pay US tax.
- If you bring cash back to the US from your foreign company, you will pay US tax on it.
Is this for you? If so, get hold of me and we can work through a strategy that will save you on taxes and protect your assets.
Other strategies that you can put in place before year end:
Business Structure Upstreaming/Sidestreaming
Find Your Hidden Deductions
Pension Plan Investing
High/Low Tax Year Averaging
Change the Character of Income
Change the Timing of Income
You have just a narrow little window of opportunity to control your 2015 taxes. You can’t plan your 2015 taxes in 2016.
Give us a call if you’re ready to put a fast track plan in place. Our number is 888-592-4769.