Drew Miles
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There’s More to Building Wealth than Clipping Coupons
We talked recently about the wealth formula: Spend less than you earn and save the difference. Initially, you may have to cut back to “find” the money to save. Start there if you must. The next step is to learn how to invest your money powerfully. Recently, I took my stepdaughter to the bank to open her first savings account. We agreed that every week; for so long as she was living under our roof, she would take 50% of her pay check and deposit it into a savings account. Then I explained the power of compound interest to her…
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Preserve Profits – Use 1031 Tax Deferred Exchanges
I always encourage real estate investors to learn more ways to save on business deductions and tax credits. An effective tax strategy for property investments is the IRS Code Section 1031. When an investor sells business or investment property, they generally will have to pay taxes on the profit at the time of sale. There are is way to keep most of your profit.What is a Sec 1031 Tax-Deferred Exchange?IRS Section 1031 allows a tax-deferred exchange by allowing sellers to reinvest the proceeds into a similar property. Gains are tax-deferred but are not tax exempt. The exchange can include like-kind…
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Mr. CPA, Can I Deduct a Pizza?
Recently, I stumbled across a concept that could change your financial life. You can call it a paradigm shift or a new perspective or just a different way to look at things. This single concept can save you tens of thousands of dollars each year. Its so powerful and yet its completely underutilized. Learning this simple technique can dramatically impact your financial picture. I was speaking about tax savings at a seminar and there was a spontaneous outburst of questions. Can I deduct my health insurance? How about my new truck? I’m taking horseback riding lessons. Are they deductible? What…
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Let Uncle Sam Pay for Your Family and Fasinations
Converting Your Ten Largest ExpensesIn the section on corporate entities, I covered many of the tax saving benefits of having your own business. What do you say we apply some of these to your particular situation? What’s underlying the work we’re going to so in this section is a key concept: Much of the potential tax savings comes as result of you converting your personal expenses into deductible business expenses. Many of these expenses are common place. For example: Your phone, fax, cell phone, and automobile. Yet some are not so apparent. Often, when working with a new student, (s)…
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Is the Only Way to Save on Your Taxes to Sleep With an IRS Agent?
In order to accelerate your movement along the wealth building curve, you absolutely must have your own business. I don’t care if its real estate investing, a sales company or a service business. But you must own it yourself or with a partner. Why, because the tax laws are tilted in favor of people who are in business for themselves. Let’s take a closer look. If you are not in business for yourself, you are earning your money as a W-2 employee. Unfortunately, this is the highest tax form of income that there is. In fact, the average American gives…
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Audit Proofing Your Real Estate Tax Deductions
Everyone wants to be financially free or as Robert Kiyosaki states, “to get out of the rat race”. As Real Estate Investors or full time self-employed entrepreneurs, we pay taxes often and in large amounts. I encourage clients to avoid using what some would say are tax scams but instead reduce their tax debt by paying the correct amount on taxes instead of over-paying them. How is that done?Taxpayers can reduce their current business and personal tax debt and gain income that can be re-invested in real estate or applied to long-term retirement plans. The road to increased tax savings…
