I'm going to introduce you to the tax personas that when we talk about
tax planning and tax strategy there's so many different opportunities for people out there
but it's actually, it's really hard to break down like, specifically what strategies
apply to you so we've created five tax personas to help you identify
with like, some of the specific things that each of these personas might be
doing in their life that could impact the tax strategies that would benefit them
So there are different facts and circumstances and scenarios.
that each of them will have that might relate to you.
And so, we've got, so we've got the five and I don't want you
to think that you can only relate to one because everyone's got very unique
scenarios and situations and so you might relate to more than one of them.
You might relate to all of them as far as their tax situations go.
So just, as we, as we talk about this I want you to start
identifying with one of them specifically so instead of looking at a hundred different
tax strategies we might be able to, like,
break it down do it. 20, 10, 15,
20 that apply specifically to you. So that's,
as you're beginning your, your tax planning or continuing your tax planning and tax
strategy journey, I want you to think of that,
uh, about which one you identify with.
So, here's the introduction to each of the five. So the first one is
Investor Erwin. And so Erwin is an investor,
uh, someone in real estate, someone in stock,
someone that is doing more than, say,
a, a typical just W-2 employee type of job.
There's more things to things going on.
This, when we get into the entity structuring, this is normally someone that might
have an LLC. They might have ownership and some partnerships as well.
But here are five key strategies, not the only strategies,
of course, but five key strategies that would relate to someone like Investor Erwin.
Capital gains, 1031 exchanges.
I'd throw in here like cost aggregations for the real estate investments,
opportunity zones, tax loss harvesting.
Like someone that is. Closely watching their investments.
And if you've got capital gains in a year, you're going to be selling
some others. If you're holding them at a loss to offset your gains.
Um, and then just watching where,
so just strategy in general, just watching where you are now.
Uh, like thinking of qualified dividend incomes,
income, like watching where your tax bracket is now,
just being, being very aware of where your tax bracket is and what new
additional income streams will do to that. that is someone like,
you know. investor Irwin and actually across all these tax personas,
we want everyone to start with that base of knowing where they're at,
knowing what their tax bracket is, knowing what their persona is and the types
of things that might benefit them and then planning from there.
So the, the second one we'll introduce you to is employee ed.
So employee ed is someone that's an employee. Um,
doesn't have the side investments, doesn't have the partnerships,
doesn't have the real estate. Um, and they're actually,
you might be someone that has all those other things,
but you might also be an employee. 8 So think of specific things that
someone like employee ed might be doing. You might be doing both,
something that Irwin's doing, something else that Ed is doing.
So these are kind of the,
I typically think of these as the more basic ones,
but sometimes they're just forgotten.
So like, I would view these as like a checklist of things to go
through every year, like doing forward,
maxing out your 401k contributions, looking if you have an eligible insurance plan,
maxing out your HSA, those child independent care tax credits
can be pretty massive. So not just the automatic tax credit you get for
having the kids, but if you're paying for daycare or school
programs, there's some additional credits you could be getting there.
And then looking if you've got employee stock purchase plans,
just watch for benefits you might have there.
Sometimes there's, there's double taxation issues that we see when the brokerage reports
used to you. So watch for that as an employee ed and then charitable
giving. There's just a lot of planning you can do with the charitable giving.
And then retired Roger. This is the third one here.
Uh, some of that is retired. So kind of the overarching,
some of the, the main plans of strategy with someone that's retired.
It's really, a lot of it does come down to the timing of when
you're taken withdrawals at a retirement. Uh,
Roth IRA conversions at which we've mentioned here.
You've got RMDs, which you're forced to take money out of.
Social security, which moat,
or a lot of times it is when you have other sources of income.
Come. Most of it is taxable,
so just planning for that. A lot of this is just putting together that
tax projection, and then considering the different strategies about the
timing and contributions and just enjoying retirement.
Uh, okay, then the fourth one, and these start to,
these last couple start to get a lot more complex,
and we've only got five strategies on here, but there's so many different things.
For someone that's self-employed, like the main thing that I don't want someone to
miss out on when they're So. Well, one,
I don't want you to miss out on your typical deductions for someone that's
a self-employed, and this is for small, medium,
and large businesses. Just not missing out on the deductions.
Um, like,
when it comes to bookkeeping, just make sure you're tracking things that you're paying
for so you're not missing out on those deductions. But then just a little
bit of a mindset shift. Are there things that you can deduct that you're
paying for anyways? For small business owners,
if it's just you running your business, a lot of times there are deductions.
That you might be questioning, like,
as a business owner, can I write this off?
Like, maybe it's your vehicle, maybe it's some travel, maybe it's some education,
maybe it's home office. So there's some things to start to think of things
that you use in your business. You might be paying for it anyways,
but if you're using it in the business, there might be a deduction for
you to, uh, to have there.
So just what, Lee, I look at these five strategies.
Like, I didn't put on here, but look at the section 179 deduction.
This is different than bonus depreciation. appreciation But you may have heard of bonus
depreciation. People writing off 100% of a vehicle or 100% of equipment.
That has gone down to 80% and 60%.
But the section 179 deduction is a different type of similar to bonus depreciation,
but typically related to equipment and vehicles and assets.
And then just, there's a lot of, for someone that's self-employed, there's a lot
of retirement planning. Or retirement,
or there's possibilities for different,
for money to go into different types of retirement plans.
And it's different than just putting it in. Putting into a 401k.
There's typically more opportunity there.
Just make sure you understand your opportunities.
And this, you might be working with a financial advisor and with the tax
strategist as we're going through all this with you.
And then this last one is make sure you've, if you've got health insurance,
you can usually write that off when you're, when you're self-employed.
But this, this big one, and we'll go into this,
the high net worth hell on here in just a second. But the S
corporate election, these last two,
the entity structuring. So the, whether it An LLC or an LLC
that's taxed as a partnership or an LLC that's taxed as an S corporation
or C corporation. I don't want to go into too many details now and
confuse everyone on it. But this is where that beament blueprint comes in,
where we've talked about an operating company and an investment holding company,
potentially private foundations, which now we get into high net worth hell on.
This is where a lot of them, there's a lot more moving pieces with
someone like high net worth hell on. We'll be right back from outside on.
There's a lot more opportunity. When there are more moving pieces,
there's typically more opportunity. I do not like to recommend
people to just make things complex for the sake of complexity,
but if there are tax benefits, if there's legal and liability protection,
you can get from certain entity structures or more tax efficient structures,
ways you can donate businesses like in a charitable remainder trust.
A lot of this involves entity structuring donations.
Nations. Umm, and someone like Hyenetworth Helen likely has real estate,
likely has business ownership, and so there's a lot more of those moving pieces.
This is, this is really when we start drawing out that white board.
Of course, in the last couple, we do a lot more white board structuring
and planning, and attorneys might get involved,
but just don't want to,
yeah, overwhelm anyone with any of these strategies we've listed here,
and we're not going into a lot of the details of them,
but I just want to make sure, serve.
People start thinking of, and all of you start thinking of,
your different persona and things you're doing,
because you might be someone that's retired, that also has part
employment income and part investment income,
and you might be planning in the long term.
If I go to the last one, Hyenetworth Helen,
you might have some estate tax planning issues we need to look through.
So just, I think this will help.
Instead of feeling completely overwhelmed, I think you'll be able to start to dive
in and start to get, get, get additional education on some of these specific
strategies, but that's it for the introduction to the five tax personas.
We've been excited to share this with you. A lot of the planning that
we do revolves around,
well, it does revolve around the unique situation to each individual person,
but I know we can't meet with everybody or not everyone has resources to
meet with us, and so that's why we do a lot of the free
educational content, a lot of the tools and resources that we get out there
because we really feel that it's valuable,
and we really want you to save on your biggest,
on your biggest expense. We want you to help. We want to help you
reduce your taxes and continue to grow your,
your net worth and hang on to more of your wealth and not have
as much of a go to taxes. Have a great rest of the day.
