October 2, 2025 • 39 mins
$40,000,000. That’s how much Dan Lake’s clients have saved on taxes and most people have never even heard of the strategy.
In this episode, Dan reveals how he helps CPAs and high-net-worth individuals shrink tax bills using solar tax equity deals most pros overlook.
You’ll learn:
• Why mortgages are one of the worst financial tools
• How W-2 earners can legally offset massive tax burdens
• The strategy that turned a $2M tax bill into nearly $0
• Why most CPAs miss this and how to stop leaving money on the table
⏳ This isn’t theory. It’s the strategy behind $40M+ in real savings.
📍Connect with Dan at TaxEquityPros.com
or on LinkedIn
Hit play. Even the IRS would want to hear this.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:22):
Good.
How was Beverly Hills?
I immediately thought of BeverlyHills Ninja.
SPEAKER_01 (00:34):
Beverly.
SPEAKER_00 (00:38):
Nice.
Is that that wouldn't be drivingdistance, would it?
SPEAKER_01 (00:44):
Um it's it'd be probably a nine to ten hour
drive.
Okay.
Long enough.
Depending on traffic.
But yeah.
But no, I I I I flew out ofProvo.
It's an easy two-hour flight.
So oh wow.
Yeah.
It was pretty easy.
But uh, but yeah, no, it wasfun.
It was good.
SPEAKER_00 (01:03):
Okay.
Sweet.
Well, I'm I'm pumped for uh forthis today.
It's gonna be fun.
Yeah, yeah, me too.
All right, I was just gettingthese some some questions as a
guideline finalized here, andthen we'll we'll jump right into
it.
Is there anything specific thatyou wanted to cover outside of
(01:23):
what you put in the in thosequestions?
I appreciate you filling thoseout as well.
I think we had a bug with thethat calendar form.
SPEAKER_01 (01:32):
Um the short answer is no.
Okay.
Uh so I I uh I I don't like tobe too scripted in general.
Okay.
Um I I I want I want to beorganic, like like we're we're
two buddies sitting around acampfire.
(01:54):
Right?
Not not not too casual that it'slike, oh, these guys are just
like talking about football.
Like we're just like I obviouslywant to have some substance
there, but uh but anyway, but II like I said I don't I don't
like being too robotic.
SPEAKER_00 (02:10):
Okay, perfect.
Sounds good.
Well, I got I got some thingsready here.
Um it's super casual, be like25, 30 minutes or so, and we'll
just kind of run through it andand have some fun.
And and if there's um anythingin particular that you didn't
like the question, whatever itis, just feel free to say, hey,
let's cut that out and we'llwe'll do our best to try to cut
(02:32):
it out in the uhpost-production.
SPEAKER_01 (02:36):
Okay.
What uh what what do you thinkis the most compelling, or what
what do you think it or whatwhat what have you seen in your
past uh episodes that has thatthat you liked the most or you
feel like uh you know broughtthe most the most value?
SPEAKER_00 (02:52):
Yeah, let me um pull up real quick here.
So usually usually aroundstrategy, I think that's where
we've got the highest kind oflistens, and then depending on
(03:12):
how people promote them, umthrough us or on their side, but
yeah, I think this will be agreat episode because we're
gonna get into I mean I havehere that you've saved you've
helped clients save over 40million dollars in taxes.
Is that accurate or is ithigher?
SPEAKER_01 (03:26):
Yeah, no, it's it's uh uh it's it's growing all the
time.
SPEAKER_00 (03:31):
Sure, sure.
Okay, but uh I think it'll beit'll be great because we'll get
into very tactical stuff thatpeople can use and and why it's
beneficial, and and then ofcourse how they can get in touch
with you.
SPEAKER_01 (03:42):
Okay, awesome.
SPEAKER_00 (03:43):
Cool.
So I'll I'll read a quick introhere, have a slight pause, and
then uh we'll jump right intothe episode.
SPEAKER_01 (03:50):
Sounds great.
SPEAKER_00 (03:51):
Cool.
Welcome back to another episodeof CFO Chronicles, the secrets
behind success.
Today's guest isn't yourrun-of-the-mill tax
professional.
He's the guy who makes the IRSnervous.
Dan Lake is the founder of TaxEquity Pros, a firm that's
helped high net worth clientssave over 40 million in taxes.
Yes, even W-2 earners.
(04:12):
He believes there's nothingenlightened about tipping the
government, calls mortgages ascam, and knows how to turn
complex solar incentives intosimple money-saving moves.
If you've ever wondered how tokeep more of your hard-earned
cash or whether the financialrules we all follow are actually
myths, you're in the rightplace.
Daniel, welcome to the show.
Let's blow up some money myths.
SPEAKER_01 (04:37):
For the uh the the the chuckle that the uh he
thinks he thinks mortgages are ascam.
Okay.
If that ain't click, but I don'tknow what it is, but that's we
can No, it's it's it's good.
SPEAKER_00 (04:50):
I'm I'm super pumped uh to have you on the show to
dive into what you're doing.
Um I would love to know kind ofout of the gate, what first
pulled you into the world of taxmitigation and solar incentives?
Is this what you thought you'dbe doing growing up as a as a
young boy in Utah?
SPEAKER_01 (05:08):
Yeah, you know, this uh this this industry didn't
exist.
And I uh at the time and when Iwas in high school uh 25 years
ago, but uh but if it was, soman, I I I I I think it it
checks all the boxes for me.
Like I'm I'm kind of anon-conformist in uh at heart.
(05:28):
Uh not not to say that I want tobreak the rules for the sake of
breaking the rules, but uh, butif something doesn't make sense
to me, I'm I'm gonna questionit.
And uh and that uh that got mein trouble when I was in school
growing up.
They uh the teachers did notlike my uh my me questioning
their their authority justbecause they're they they start
(05:51):
with Mr.
or Mrs.
or what have you.
So anyway, yeah, I'm I'm just anon-conformist.
Uh like I said, I I I've I'vealways carved my own path.
Um but but no, this is not I I II accidentally uh fell into this
space.
Or rather, necessity is the uhthe mother of invention, I would
(06:12):
say.
SPEAKER_00 (06:12):
Yeah, amazing.
Well, how how did you get intothis space then?
Uh it's obviously it wasn'taround, like you said, when you
were growing up, it was you kindof fell into it.
You've been a maybe a rulebreaker, but just looking if
something doesn't make sense,you want to make make the most
of it, understand what's goingon.
How did you get into what you'redoing right now?
SPEAKER_01 (06:32):
Um, yeah, so I I I've been in the solar space for
the last 11 years.
Um, I I I started in I I ran apest control company, you know,
before that.
And uh and then for for about ayear and a half, two years, I
was I was doing, I I had a pestcontrol company that was uh
operating in four differentstates.
Um and uh I I just I I randomlyyou know met a guy on an
(06:56):
airplane once that was tellingme about solar, solar incentives
and solar uh uh that this thisbusiness model.
And I'm like, man, but if I'mbeing honest, like there's only
so much satisfaction you can getin life in uh killing bugs.
You know what I mean?
Like I mean, there's nothingwrong with killing bugs.
(07:17):
I know a lot about I know a lotabout uh entomology and bugs and
bug killing and and and thatbusiness model and things, but
the but the solar space really,really interest me, interested
me, I should say.
And uh I anyways, uh, you know,got in got into sales, uh, got
sold my pest control company in2015, um, and uh and really ran
(07:40):
with the the the solar the solarstuff.
It was just so uh I thought itwas so cool that like man, like
people could take uh they couldtake these raw materials and
create electricity from thefreaking sun, and they could
take money that was gonna go touh to the government to uh to to
(08:02):
taxes, and they could put thattowards uh uh their energy
independence that way.
You know, freedom andindependence is probably what my
is like my my one of my corevalues that really lines lines
up with me.
Um and uh anyway, I I uh with aswe we progress and we we had a
(08:22):
uh we we were we were uh EPC,which is uh um energy.
Basically we were an installer.
I won't I won't I won't bore youlisteners with uh with uh solar
jargon that way.
But yeah, so it became aninstaller.
We were doing we did a bunch ofuh uh commercial to off-grid,
some uh uh residential as well,and and learned a lot about the
(08:44):
space, but there was a major uhvoid in the uh in the industry
where there was just there wasnot really good uh financing
options available.
So I'm taking a long way to getto to ask your question.
Like, how did I get I know solarbug business, like that that's
that has how does that have todo with the with the with with
tax mitigation strategies?
(09:05):
I'm getting there.
SPEAKER_00 (09:06):
All right, just just hey no relax.
We're good.
I'm on the edge of the seat.
I brought I brought the wholeseat, but I'm I'm only using the
edge right now.
SPEAKER_01 (09:14):
Um so so okay, it and I I'm just gonna give a
little bit of background as towhy um that there are there
there's some problems in thesolar space in the solar
industry.
Um solar does not make sense formost people.
I would uh I I it it kind ofblew my mind sometimes when I
(09:37):
would, I would, I would talk topeople in my neighborhood or
people that I and they wouldthey knew that I was in the
solar space and I would ask themsome questions about their roof
or their or uh or or theirfinancial situation.
Like it was a like if ifsomebody's a first year teacher
and they're uh and they're andthey're living paycheck to
(09:57):
paycheck and they and they'veheard that solar can save them a
lot of money, potentially, okay.
If they don't if somebodydoesn't make enough money that
they they they don't pay taxes,for example, then the tax
credits, the incentives, they'renot gonna do them any good.
SPEAKER_00 (10:12):
Yeah.
SPEAKER_01 (10:13):
The other the other thing that's a uh very uh less
well known in the space is justhow expensive uh loans are in
the solar space.
Uh like if okay, let's say youget a uh a$30,000 uh solar deal
(10:33):
and or project and you and uhyou have the solar, yeah.
Let's say you have a battery anduh like and that and that would
just if that would be your cashprice would be 30 grand.
If you were to get a sexy 2.9%25 year solar loan, that would
(10:55):
add about 30% or more to uh toit's I've seen 35%, whatever
it's just in dealer fees and ororigination fees.
So that$30,000 solar uh at witha you know if that that costs
you an extra ten thousanddollars just for you can get the
(11:18):
sexy financing and the low andthe low uh monthly payment that
way.
And so anyway, I'm like, oh God,that's terrible.
Why are we why are we tippingthe banks?
What are we like I'll go back toyour uh your other uh uh chuckle
earlier about uh you knowmortgages being a scam.
I I I think that they are.
(11:41):
I think I think that's aterrible way to pay off your
house.
And we don't want to and I don'twant to digress you know too
much about but but I mean gosh,you have a 30-year no on a on a
standard mortgage, on aconventional mortgage, you're
paying in the first 15 years,you're paying all the interest
up front.
(12:01):
That's terrible.
That's anyway.
Anyway, I don't want like Isaid, don't want to digress too
much, but there's too much likethere's better ways to pay off
your house than with a that orto buy a house than than with a
mortgage.
SPEAKER_00 (12:15):
Interesting.
So anyway, you may have touchedon it a little bit already, but
I guess when or was there amoment when you realize this is
a strategy almost nobody isusing, but everyone needs.
SPEAKER_01 (12:28):
I'm uh I'm taking a long time to get to the point,
James.
Thank you for uh for bringingback.
It's all good.
It's all good.
So no, so there was this hugeboy.
There was uh like yeah, uh I hada hard time selling uh solar
loans because I think becausethey were expensive and I didn't
feel good about it.
Um I spent the better part oftwo years, so 2018, uh uh going
(12:52):
into 2020, I met with a bunch ofdifferent CPAs, tax attorneys,
consultants in this space, and Iwould and I went to them and I
said, Hey, there's gotta be abetter way to finance for
someone to get solar.
And uh and so what so I designeda solar lease, or it's
(13:15):
technically a PPA or powerpurchase agreement, where a
homeowner could uh replace a$500a month power bill with a$400 a
month solar payment, and uh, andand they could buy the system
later on at a later date forpennies on the dollar.
And the system itself would beowned by a dentist or a doctor
(13:39):
or an attorney or some high networth individual who could take
who would own that asset on thisuh this this person's house,
they could take all of thedepreciation, all of the tax
credits, and they could cashflow that asset um for at least
five years.
And so my my elevator pitch, youknow, as and to to the high net
(14:04):
worth individual or a taxplanner is that for every dollar
that they put into one of ourdeals, they're going to get a
dollar fifty, dollar eighty,sometimes two dollars in tax
benefit and cash flow.
And I'm happy to get, well, Ithink we'll get into the
nitty-gritty of how that allworks.
But uh, but that's that's reallyhow I got into this uh into the
(14:26):
tax equity space was there was ahuge need uh for solar
financing.
Um and so so anymore now nowwhat I do is uh I I we are a
financing option for uh ahandful of different solar sales
and install companies in Texas,in California, and uh and and we
(14:50):
we we provide you know thatfinancing for the for a
homeowner uh through a through aPPA, but the systems themselves
are owned by a by a high networth individual.
So I I I work exclusively in thein the tax equity space now.
And uh anyway, I I appreciateyour patience, James.
I know that was a that was along, long bridge to get here,
(15:10):
but it's a it's been 10 years inthe making.
SPEAKER_00 (15:13):
It's awesome.
I love it.
Um, you touched on it a littlebit earlier on how, say, maybe
someone just getting started outin their career as a W 2, it
doesn't make sense for them.
Maybe a bit of a myth in thesolar space.
How does it work or benefit forthose who are in a W-2 position
and getting solar, it it isbeneficial for them compared to
(15:35):
maybe someone who's just gettingstarted out doesn't have enough
income where it actually offsetsand it it helps them out?
SPEAKER_01 (15:42):
Oh, I think I like I said, from for most people, uh I
would not buy I would not buysolar on your personal
residence.
You can't depreciate it.
It's not it's not a it's not abusiness asset.
Um if you're if you're if thecost of electricity is
relatively low in your uh inyour neck of the woods, I
(16:03):
probably wouldn't do it, to beperfectly honest with you.
Uh but with with our with ourmodel, um it this it's really
roddens uh the base for for thesort of people who who do want
to get solar, they could get it,they get a solar lease.
Uh but if it but but let me uhlet me shift gears just a little
(16:24):
bit.
Um solar makes absolute perfectsense on the uh on on on the
investment side.
Let's say so uh let so let's sayI I'm I'm talking to uh I'm
talking to a doctor, and let'ssay he has and and he let's say
(16:45):
he's a surgeon, he's got amillion-dollar tax bill.
And I and I I come to him, I'mgonna show him this strategy.
And uh, like I said, we'll getwe'll get into the nitty-gritty,
we'll get into the nuts andbolts.
But uh, but essentially, uh I uhI'm gonna say, okay, you you've
got a million-dollar tax bill.
By the way, I'm not doing anytax tax advising or whatever.
(17:07):
I'm I've I I've already talkedto his CPA.
CPA is uh as as say has said,hey, I think this is a good uh
this is a good strategy for you.
Uh you talk to Dan and he can uhbuild out a portfolio for you.
But essentially, instead of makemaking that million dollar
payment to the IRS, he can spendthe you know$550 and put that
(17:31):
towards these solar deals, andhe is going to net that uh it
was he's gonna save that milliondollars in uh in in taxes that
he was otherwise gonna go to theIRS.
SPEAKER_00 (17:43):
That's awesome.
So, yeah, to tie this in to allof our listeners, we've had a
chance to work together, and alot of what you do is getting in
front and making connectionswith CPAs, getting making
connections with taxprofessionals, tax planners.
Now we're getting into adifferent space.
But for those listening, how caneveryone benefit from having a
(18:07):
relationship with you?
I want to hear from from yourwords how how the listeners
could benefit from working withyou because it's not this is not
just about solar.
This this goes wider to thelisteners and the service you
offer and how it reallycomplements a lot of CPAs and
tax planners out there in theUS.
SPEAKER_01 (18:27):
Absolutely.
Absolutely.
I like I I I told my story.
I'm not I'm not a taxprofessional.
I'm I don't offer tax advice oruh I don't I don't I don't find
out I don't I don't do anythinglike that.
However, I am I I make taxprofessionals look like the hero
(18:49):
to their clients.
I I that like I mo most most taxuh professionals are really good
at knowing the law.
And it's a hard business.
Like it's a the tax law changesevery year, and it's thousands
of pages long.
And it's and just to keep upwith all of that is is a lot.
(19:12):
But um what uh what taxprofessionals really love about
about working with me is uh is II show them a strategy, it's
very simple.
It's tax credits, it'sdepreciation, it's cash flows,
it's uh it's business ownership.
And that uh all of these uh allof these uh deductions and and
(19:32):
credits and incentives allpasses through to uh to a a high
net worth individual's personalreturn.
So so instead instead of uh youknow you doing the math on this
doctor's you know tax bill, it'slike, hey, what's the damage?
Oh, it's it's a million dollars.
(19:54):
But hey, I that that I've I'verecently partnered with tax
equity professionals, and withthrough this strategy, they can
save you 45% on your overall taxbill, and it's not gonna cost
you anything more than what youwere otherwise going to pay,
anyways.
Uh, so so that if you I knowthat uh most CPAs are not
(20:18):
huggers, they're not theythey're not lovey people for the
most part, they're numbersfolks.
But uh I I'd imagine that uhtheir clients would be so
excited.
Yeah, they'd want to hug theirtheir CPA or their tax
professional because uh there weyou you were able to open them
up to a strategy like this thatsaves them a massive uh amount
(20:41):
of money on the money that wasotherwise gone.
SPEAKER_00 (20:44):
Yeah.
I I love how you mentioned likeyou're really you're you're the
night behind the scenes making,like you said, everyone else
look really good.
It's your strategy that you'repassing on to who you partner up
with, the other CPA's taxprofessionals, they get to
deliver that good news to theirclient, helps them save an extra
(21:04):
450k.
It's certainly not couch change,and then they're happy, you're
happy, and it's just it's agreat, it's a great program,
it's a great strategy you guysare running.
Um, you you've you mentionedthere saying in your example,
helping a doctor save about450k.
You've helped clients incounting save more than 40
(21:25):
million in taxes.
Can you share one story, nonames needed, um, that really
shows what's possible?
Like what are what are one ofthe the best wins or the largest
tax savings that stands out toyou from from when you've been
doing this?
SPEAKER_01 (21:44):
I've I've helped a I've been able to help a lot of
people.
Um and I and I think what what alot of like I said, what a lot
of tax professionals like aboutthis is that it works for for
W-2 income, capital gains, uh,1099.
It it doesn't it doesn't matter.
It really doesn't.
(22:04):
I uh um I was at a conferencethis last uh this last week in
uh it was it was for mergers andacquisitions.
And and I and I'll I'll I'll getto uh you know some specific
information uh you know examplesthat way, but uh but I want to
talk just real broadly realquick.
Um like if somebody's sellingtheir business and then uh and
(22:25):
and let's be real, most uh mostbusiness owners or most founders
are they're they're visionaries.
They want they they lovebuilding the business, they love
getting to the next thing orwhatever.
They generally don't plan theirexits ahead of time or or really
you know you know structurethemselves you know accordingly.
(22:48):
Um which anyway, so at thisconference, that's that's what
you know these professionals do.
They they help you knowstrategize, plan for the future,
and and uh and position these uhthese these founders for for
their big exit.
Um so as part of their overallplanning or uh or after the
fact, it's like oh crap, now Ihave a$10 million tax.
(23:08):
Yeah, awesome! I sold my companyfor$22 million.
This is amazing.
Now I've got his eight milliondollar tax bill.
That's uh it's uh it's it's kindof devastating, and some deals
fell through.
And I talked to a lot of folksbecause of the massive tax
burden that was incurred at thetime of sale.
(23:29):
So it can help in so manydifferent ways.
Uh but uh but yeah, just thislast year, I uh we I I helped a
I helped a guy in that verysituation.
He literally had a two milliondollar tax bill, uh, sold his
(23:49):
business, didn't really do muchplanning.
Uh I had I had some uh I had ahandful of projects left over
from that uh in 20 from 2024 uhthat had that qualified for a
2024 credit.
The uh he came and talked to mein like March of this this year,
(24:16):
and he's like, Hey, I've gotthis big tax bill.
Is there anything you can do forme?
I'm like, it just so yes.
Oh, kind of.
I so I had these deals that werestarted in 2024, they qualified
for the 2024 credit.
He would but and so he was ableto save harbor those credits for
uh for last year.
Um, and he even though hepurchased those deals in 2025,
(24:39):
they qualified for 2024 creditsand uh and and uh depreciation
you know was applied in 2025.
But anyway, we were able to savehim a massive amount of uh taxes
that uh for for somebody whodidn't do any planning and and
and again made like we we werebut kind of behind the scenes,
(25:01):
but really his uh uh his CPAlooked like the hero.
SPEAKER_00 (25:06):
That's so cool.
Two million dollars.
You like what tell me a littlebit about like what what is that
feeling like when that finallygets across the line and you see
the look on your client's faceor your client's client's face
and they've saved all thismoney.
Like that's it's gotta feelamazing.
It does.
SPEAKER_01 (25:26):
It does.
Well, I I think about it.
I I I've I've been I've beenrich, I've been poor, and uh,
and I've been I and kind ofeverywhere in between.
And and you think about it, ifsomebody's in if somebody's in
the top tax bracket, they'repaying 37% just in just in
(25:47):
federal income taxes.
And let's say they live inCalifornia, it's an it's an
additional 13% of state incometaxes, uh, if they're if they're
in that top bracket.
So 50 cents of every dollar theymake goes to the government in
some form or fashion before theyever even see it.
(26:07):
I mean, that's that's sodemoralizing.
And uh and and I I'm andpolitically speaking, I'm
probably about as far to theright as you can possibly
possibly go.
Like I I've I know in in oureconomy that that's the and you
not everybody agrees with me onthis, but I but we are better
(26:28):
stewards of our resources, ofthe of our hard-earned money.
I earn this money.
I I'm gonna be I'm gonna be waymore intentional about how this
uh how this gets invested, howthis, you know, I can you know
goes back into my company, I canuh I can pay my my employees
better.
(26:48):
I can do I can do so much morewith this money the government
can for special programs or orsome senator's vacation or what
have you like no, like there'sit's the the money is better, is
it's just better leveraged inthe in the earned it in the
first place.
So, yes, it feels it feelsreally good.
It's per this is a perfectalignment with who I am and my
(27:12):
my personal values.
SPEAKER_00 (27:13):
Nice, that's awesome.
I as you're talking about thedifferent percentages, I just
can't help but laugh in painbeing from Canada and what our
tax brackets are and how muchhow much of our money goes back
to the government before we evensee it.
And unfortunately, there's justnot like nearly as many
opportunities as in the US forfor tax reduction strategy.
(27:34):
So I as much as I enjoy you knowhearing this, it's also a little
painful being north of theborder.
Yeah, I don't know, and that's aboot.
Pardon?
SPEAKER_01 (27:45):
I'm just candidate.
Um lame dad jokes.
My bad, James.
That's all good, it's all good.
SPEAKER_00 (27:54):
The the for the CPAs out there, those in the finance
space who aren't offering, say,tax strategy or who aren't doing
anything with tax, but it's abig opportunity for them to
still make a lot of revenue fortheir firm because their clients
are looking for it.
What should they be looking forcriteria-wise for say um either
(28:18):
tax equity pros or like aanother like what should they be
looking for when it comes to atax strategist so that they can
help their clients win and inreturn they win?
SPEAKER_01 (28:30):
It's a great question.
Um I I I there's lots of taxstrategies out there.
There's there's oil and gas,there's uh I there's tribal
credits, there's whatever, likeit's it's it's a big, it's a big
world out there.
I I and and and there's pros andcons to everything.
Um I I think in my in in my inmy experience, uh most CPAs want
(28:58):
something that, for one, makessense, has low audit risk that
way, and uh is is because gosh,the worst thing that uh that
they that uh a tax professionalyou know would you know his
biggest nightmare is to createuh a headache or or or just
problems with the IRS down, youknow, in the in the future.
(29:21):
Like uh like yeah, we want tosave money, but we also don't
want to fight.
We don't want we don't want tocreate unnecessary uh drama uh
in our in our lives or in ourclients' lives, right?
And so uh well, I I I tease mymy uh tax attorney that he
couldn't go to a real lawschool, and so he he just ended
(29:41):
up going to Harvard.
He doesn't think that thatjoke's funny, but I think it's
hilarious.
But uh anyway, my attack my taxattorney is like I I've met with
a lot of attorneys.
He is he he's really good.
He lives in he uh he spends mostof the year in uh Puerto Rico
for tax reasons.
I'm Sure, but uh we we've got a40-page opinion letter that that
(30:04):
backs up every inch of thisstrategy and uh and make sure
that everybody uh you knowstructures things appropriately.
Uh I've I've done this for overa hundred individuals.
Uh we've if it's never oncetriggered an audit.
Uh I have had two people getaudited as part of a that this
(30:25):
was looked at and audited as asan overall.
Uh, but yeah, it was open-closedeal.
We never had any, we've neverhad any of these tax uh uh tax
uh incentives clawed back,never, not once.
Um and so anyway, so so our CPAscan really feel good about what
it is that they're presenting.
(30:46):
Uh they also uh are notdisappointed with the uh with
the incentives that we providethe uh the CPA as well, as uh as
as we we share in those uh inthose upsides uh as well.
So every everybody wins.
If everybody if it's notwin-win, it's no deal.
SPEAKER_00 (31:03):
That's awesome.
I love that's great advice.
Um re reach out to high networth individuals.
Not an easy task, they're hardto get a hold of at times.
What's been the toughest part ofgetting in front of the right
people to for them to be awareof your service?
SPEAKER_01 (31:21):
Oh, great question.
Great question.
Honestly, I anymore, I don't Idon't uh I don't I do don't do
any marketing or or contactshigh net worth individuals
directly anymore.
I just don't like they for one,they don't they they don't
understand the their own taxsituation well enough to be able
(31:43):
to say uh what what's what's anappropriate amount or investment
for that that works good wellfor them.
And also they don't like theythey don't understand the tax
code well enough.
They like my my biggest can mybiggest objection, which is I
still don't know how to reallyget past, is uh man, this sounds
amazing.
(32:03):
This sound this sounds too goodto be true.
I never ever get that from a CPAwho understands how tax credits
work, how and how depreciationworks, whatever.
It's like, oh yeah, yeah, fiveminutes.
They they they get it, but justlike that.
And so anyway, so my so my my mymy challenge anymore is just
trying to get in front of moreCPAs, more um, you know,
(32:28):
attached who understand the thethe law and are proactive that
want that want to add andprovide more value to their
clients.
Uh that and and then when theywhen they refer that doctor or
that or their you knowbusinessman or what or what have
you, they they they they becauseI I don't have any credibility,
(32:51):
right?
I they don't know me from Adam,they don't like that so that but
if the if their CPA says, hey, Iwould recommend doing this, this
would be a good fit, it wouldsave you this much.
Are you interested in talking tothis other group that I've uh
that I've that I'm partneredwith?
Um that then it's you that theyfeel good about it, you feel
good about it.
(33:12):
I keep saying this, but it buteverybody wins.
There's just no downside.
SPEAKER_00 (33:16):
Nice.
That's great.
Uh what's one money habit youwish more high income earners
would adopt right now?
And then we'll get into a coupleuh rapid fire questions, and
then we'll uh we'll tie a bow onthis.
SPEAKER_01 (33:29):
Okay, okay.
So say say your question onemore time.
I want to make sure what whatwhat's one money habit?
SPEAKER_00 (33:36):
Yeah, I probably probably could have re-worded
that differently, not give youthe question and then ramble on
for a little bit afterwards.
So it's my bad.
You're good.
What's one money habit you wishmore high income earners would
adopt right now?
SPEAKER_01 (33:52):
I think I if okay, some high income earner, if uh
if you if you're not meetingwith your with your tax
strategist at least two or threetimes a year, you're losing
money.
If you're not if you're notplanning ahead, if you're not if
you're not being proactive aboutsome kind of strategy that uh
(34:16):
that that mitigates you knowthat it that's just silly,
especially in some places whenyou're like when you're when
you're being taxed atessentially a 50% rate if you
live in a blue state, like howhow discouraging that is.
Like like okay, you could eatyou can make way more money and
and be taxed at 50 cents on thedollar.
(34:38):
Or how about we cut your uh wewe have we cut your effective
tax rate by 45%?
What's good what's gonna bebetter leverage for your time
and energy?
I mean that's that's theno-brainer.
That's just that's just that'sjust silly.
That's an easy one.
I'm I'm trying not to just pullput more plugs into this, but
like, because there's otherthings we can talk about, but
(34:59):
there's nothing that's going tohave a bigger effect on your on
your bottom line than than uhbeing proactive about your own
personal tax strategy.
SPEAKER_00 (35:08):
It's just silly.
Yeah.
Perfect.
Uh, what's one book or podcastyou recommend to anyone who's
serious about money?
SPEAKER_01 (35:23):
Let's let's circle back to that one.
I'm gonna put us I wish I would,I wish I would have had the
rapid fire.
So much for rapid fire when Itake a deep breath and I can't.
SPEAKER_00 (35:33):
All right, we're still in the rapid fire range.
SPEAKER_01 (35:35):
How about this one?
How about uh the the CFOChronicles?
SPEAKER_00 (35:38):
How about that?
Perfect.
Thanks.
Thanks for the plug.
I'm sure there's I'm surethere's others out there that
you know, probably a little bithigher that uh people could do
for listen to but they'reserious about money.
Um what's one practical steplisteners could take this year
to shrink their tax bill if theyhaven't been listening for the
last 30 35 minutes?
SPEAKER_01 (36:00):
What's what's one thing that they could do to uh
reduce their tax bill for thisyear?
Okay, I again I'm but I'm I'veI've been I've been here talking
about my strategy for this longtime, and uh and and I can't I
honestly can't think of anythingelse that's okay that would be
(36:22):
better.
SPEAKER_00 (36:22):
We've we've gone we've gone in depth why why the
solar tax credit is is so great.
So um last one here who issomeone in finance or business
that you're learning from today.
SPEAKER_01 (36:36):
Um there's this group that I found a few years
ago after I uh after I I Ibought my house that uh that
they were touting uh you knowyou could pay off your house in
in five to seven years withmaking no additional money or
whatever.
I'm like that sounds suspicious.
(37:00):
But uh um it was it's this groupcalled the uh replace your
mortgage for and they've gotother stuff like replace your
university.
You're like and it and it's alland uh I'm I'm not getting paid
for this, and so maybe I maybe Ishouldn't promote them too hard.
But uh anyway, but but as far asbook or podcast or whatever, I
uh I've gotten a lot of valueout of this uh this group.
(37:22):
I I I I paid for uh for amembership a few years ago and
uh learned about um differentstrategies for for paying your
home off quickly and and and andother investment stuff.
And so so essentially uh one ofone of their strategies is to uh
uh re uh instead of having a amortgage, you would have a first
(37:46):
position home equity line ofcredit that you would treat like
your you and but you would useit like your your checking
account.
So you'd get your you'd get yourpaycheck and you put it into
your HELOC and you use it like achecking account, but uh, but
all the while, whatever money,so whatever money you're is
sitting in your savings accountor your or your checking account
(38:06):
or whatever, it's since you'renot earning any interest on it,
it's actually kind of aliability because it's just
sitting there.
It's not working, it's not doinganything.
But if it's sitting in yourHELOC, it's it's driving the uh
the principal down during themonth.
It's gonna and the and thebalance is gonna fluctuate, but
it's calculated on simpleinterest, not compound interest
(38:29):
like a mortgage is.
So just taking that strategy,you know, spending less than
what you make and have and haveuh all of your money sitting in
your HELOC versus in low or nointerest bearing accounts, that
strategy alone will shave offdecades uh from uh off of a
(38:51):
30-year mortgage.
And I just thought, gosh, thatis so brilliant.
That's so simple.
Why doesn't everybody do that?
And so when I say earlier aboutyou know uh you know mortgages
being a scam, gosh, they're likea little bit of proactivity on
on just little daily habits thatpeople have make an enormous
difference uh you know over thelong term.
(39:12):
And you have a let's say youhave a uh a paid-off mortgage,
you're sitting on 400k orwhatever it is of of liquid
liquidity that way.
How easy would it be to purchasea an investment property or in
uh or or or a business or a orsome kind of limited partnership
that way?
Gosh, there's there's so much,there's so much you can do, uh,
(39:36):
but but you just can't do whateverybody else does.
And you're you're not gonna getahead.
You never will.
SPEAKER_00 (39:42):
I love that.
Anyway.
Last one for you, Dan.
I'd like to end all of ourpodcasts with this question.
What's the best piece of adviceyou've ever received?
SPEAKER_01 (39:53):
I'm gonna go to uh Michael Scott at the office.
Oh, please.
Don't be an idiot.
Don't be an idiot.
Change my life.
First my feelings every time.
SPEAKER_00 (40:03):
Don't be an idiot, Michael Scott.
Love it.
Dan, thank you so much forcoming on, sharing um all of
your insight, your knowledge.
It's always great chatting withyou.
But um, how how can people getin touch with you if they want
to continue the conversation?
They want to see what it'd belike to potentially work with
you and help their clients winmore by being connected with
(40:25):
you.
SPEAKER_01 (40:25):
Yeah, absolutely.
You can check out our website,it's uh tax equityprose.com.
Uh you can also find me onLinkedIn.
Um, it's uh yeah, my my name isDan Lake.
I think it's uh TaxequityProsDan Lake145 is uh is my short uh
URL at LinkedIn.
(40:46):
Pretty sure that's what it is.
But perfect.
SPEAKER_00 (40:47):
Yeah, anyway, yeah, love to chat.
Awesome.
We'll put the show notes, we'llput the links in the show notes,
Dan, so people can get in touch.
Again, can't thank you enoughfor coming on.
Really appreciate it.
Thanks, James.
I appreciate the time.
Good.
How was Beverly Hills?
I immediately thought of BeverlyHills Ninja.
SPEAKER_01 (00:34):
Beverly.
SPEAKER_00 (00:38):
Nice.
Is that that wouldn't be drivingdistance, would it?
SPEAKER_01 (00:44):
Um it's it'd be probably a nine to ten hour
drive.
Okay.
Long enough.
Depending on traffic.
But yeah.
But no, I I I I flew out ofProvo.
It's an easy two-hour flight.
So oh wow.
Yeah.
It was pretty easy.
But uh, but yeah, no, it wasfun.
It was good.
SPEAKER_00 (01:03):
Okay.
Sweet.
Well, I'm I'm pumped for uh forthis today.
It's gonna be fun.
Yeah, yeah, me too.
All right, I was just gettingthese some some questions as a
guideline finalized here, andthen we'll we'll jump right into
it.
Is there anything specific thatyou wanted to cover outside of
(01:23):
what you put in the in thosequestions?
I appreciate you filling thoseout as well.
I think we had a bug with thethat calendar form.
SPEAKER_01 (01:32):
Um the short answer is no.
Okay.
Uh so I I uh I I don't like tobe too scripted in general.
Okay.
Um I I I want I want to beorganic, like like we're we're
two buddies sitting around acampfire.
(01:54):
Right?
Not not not too casual that it'slike, oh, these guys are just
like talking about football.
Like we're just like I obviouslywant to have some substance
there, but uh but anyway, but II like I said I don't I don't
like being too robotic.
SPEAKER_00 (02:10):
Okay, perfect.
Sounds good.
Well, I got I got some thingsready here.
Um it's super casual, be like25, 30 minutes or so, and we'll
just kind of run through it andand have some fun.
And and if there's um anythingin particular that you didn't
like the question, whatever itis, just feel free to say, hey,
let's cut that out and we'llwe'll do our best to try to cut
(02:32):
it out in the uhpost-production.
SPEAKER_01 (02:36):
Okay.
What uh what what do you thinkis the most compelling, or what
what do you think it or whatwhat what have you seen in your
past uh episodes that has thatthat you liked the most or you
feel like uh you know broughtthe most the most value?
SPEAKER_00 (02:52):
Yeah, let me um pull up real quick here.
So usually usually aroundstrategy, I think that's where
we've got the highest kind oflistens, and then depending on
(03:12):
how people promote them, umthrough us or on their side, but
yeah, I think this will be agreat episode because we're
gonna get into I mean I havehere that you've saved you've
helped clients save over 40million dollars in taxes.
Is that accurate or is ithigher?
SPEAKER_01 (03:26):
Yeah, no, it's it's uh uh it's it's growing all the
time.
SPEAKER_00 (03:31):
Sure, sure.
Okay, but uh I think it'll beit'll be great because we'll get
into very tactical stuff thatpeople can use and and why it's
beneficial, and and then ofcourse how they can get in touch
with you.
SPEAKER_01 (03:42):
Okay, awesome.
SPEAKER_00 (03:43):
Cool.
So I'll I'll read a quick introhere, have a slight pause, and
then uh we'll jump right intothe episode.
SPEAKER_01 (03:50):
Sounds great.
SPEAKER_00 (03:51):
Cool.
Welcome back to another episodeof CFO Chronicles, the secrets
behind success.
Today's guest isn't yourrun-of-the-mill tax
professional.
He's the guy who makes the IRSnervous.
Dan Lake is the founder of TaxEquity Pros, a firm that's
helped high net worth clientssave over 40 million in taxes.
Yes, even W-2 earners.
(04:12):
He believes there's nothingenlightened about tipping the
government, calls mortgages ascam, and knows how to turn
complex solar incentives intosimple money-saving moves.
If you've ever wondered how tokeep more of your hard-earned
cash or whether the financialrules we all follow are actually
myths, you're in the rightplace.
Daniel, welcome to the show.
Let's blow up some money myths.
SPEAKER_01 (04:37):
For the uh the the the chuckle that the uh he
thinks he thinks mortgages are ascam.
Okay.
If that ain't click, but I don'tknow what it is, but that's we
can No, it's it's it's good.
SPEAKER_00 (04:50):
I'm I'm super pumped uh to have you on the show to
dive into what you're doing.
Um I would love to know kind ofout of the gate, what first
pulled you into the world of taxmitigation and solar incentives?
Is this what you thought you'dbe doing growing up as a as a
young boy in Utah?
SPEAKER_01 (05:08):
Yeah, you know, this uh this this industry didn't
exist.
And I uh at the time and when Iwas in high school uh 25 years
ago, but uh but if it was, soman, I I I I I think it it
checks all the boxes for me.
Like I'm I'm kind of anon-conformist in uh at heart.
(05:28):
Uh not not to say that I want tobreak the rules for the sake of
breaking the rules, but uh, butif something doesn't make sense
to me, I'm I'm gonna questionit.
And uh and that uh that got mein trouble when I was in school
growing up.
They uh the teachers did notlike my uh my me questioning
their their authority justbecause they're they they start
(05:51):
with Mr.
or Mrs.
or what have you.
So anyway, yeah, I'm I'm just anon-conformist.
Uh like I said, I I I've I'vealways carved my own path.
Um but but no, this is not I I II accidentally uh fell into this
space.
Or rather, necessity is the uhthe mother of invention, I would
(06:12):
say.
SPEAKER_00 (06:12):
Yeah, amazing.
Well, how how did you get intothis space then?
Uh it's obviously it wasn'taround, like you said, when you
were growing up, it was you kindof fell into it.
You've been a maybe a rulebreaker, but just looking if
something doesn't make sense,you want to make make the most
of it, understand what's goingon.
How did you get into what you'redoing right now?
SPEAKER_01 (06:32):
Um, yeah, so I I I've been in the solar space for
the last 11 years.
Um, I I I started in I I ran apest control company, you know,
before that.
And uh and then for for about ayear and a half, two years, I
was I was doing, I I had a pestcontrol company that was uh
operating in four differentstates.
Um and uh I I just I I randomlyyou know met a guy on an
(06:56):
airplane once that was tellingme about solar, solar incentives
and solar uh uh that this thisbusiness model.
And I'm like, man, but if I'mbeing honest, like there's only
so much satisfaction you can getin life in uh killing bugs.
You know what I mean?
Like I mean, there's nothingwrong with killing bugs.
(07:17):
I know a lot about I know a lotabout uh entomology and bugs and
bug killing and and and thatbusiness model and things, but
the but the solar space really,really interest me, interested
me, I should say.
And uh I anyways, uh, you know,got in got into sales, uh, got
sold my pest control company in2015, um, and uh and really ran
(07:40):
with the the the solar the solarstuff.
It was just so uh I thought itwas so cool that like man, like
people could take uh they couldtake these raw materials and
create electricity from thefreaking sun, and they could
take money that was gonna go touh to the government to uh to to
(08:02):
taxes, and they could put thattowards uh uh their energy
independence that way.
You know, freedom andindependence is probably what my
is like my my one of my corevalues that really lines lines
up with me.
Um and uh anyway, I I uh with aswe we progress and we we had a
(08:22):
uh we we were we were uh EPC,which is uh um energy.
Basically we were an installer.
I won't I won't I won't bore youlisteners with uh with uh solar
jargon that way.
But yeah, so it became aninstaller.
We were doing we did a bunch ofuh uh commercial to off-grid,
some uh uh residential as well,and and learned a lot about the
(08:44):
space, but there was a major uhvoid in the uh in the industry
where there was just there wasnot really good uh financing
options available.
So I'm taking a long way to getto to ask your question.
Like, how did I get I know solarbug business, like that that's
that has how does that have todo with the with the with with
tax mitigation strategies?
(09:05):
I'm getting there.
SPEAKER_00 (09:06):
All right, just just hey no relax.
We're good.
I'm on the edge of the seat.
I brought I brought the wholeseat, but I'm I'm only using the
edge right now.
SPEAKER_01 (09:14):
Um so so okay, it and I I'm just gonna give a
little bit of background as towhy um that there are there
there's some problems in thesolar space in the solar
industry.
Um solar does not make sense formost people.
I would uh I I it it kind ofblew my mind sometimes when I
(09:37):
would, I would, I would talk topeople in my neighborhood or
people that I and they wouldthey knew that I was in the
solar space and I would ask themsome questions about their roof
or their or uh or or theirfinancial situation.
Like it was a like if ifsomebody's a first year teacher
and they're uh and they're andthey're living paycheck to
(09:57):
paycheck and they and they'veheard that solar can save them a
lot of money, potentially, okay.
If they don't if somebodydoesn't make enough money that
they they they don't pay taxes,for example, then the tax
credits, the incentives, they'renot gonna do them any good.
SPEAKER_00 (10:12):
Yeah.
SPEAKER_01 (10:13):
The other the other thing that's a uh very uh less
well known in the space is justhow expensive uh loans are in
the solar space.
Uh like if okay, let's say youget a uh a$30,000 uh solar deal
(10:33):
and or project and you and uhyou have the solar, yeah.
Let's say you have a battery anduh like and that and that would
just if that would be your cashprice would be 30 grand.
If you were to get a sexy 2.9%25 year solar loan, that would
(10:55):
add about 30% or more to uh toit's I've seen 35%, whatever
it's just in dealer fees and ororigination fees.
So that$30,000 solar uh at witha you know if that that costs
you an extra ten thousanddollars just for you can get the
(11:18):
sexy financing and the low andthe low uh monthly payment that
way.
And so anyway, I'm like, oh God,that's terrible.
Why are we why are we tippingthe banks?
What are we like I'll go back toyour uh your other uh uh chuckle
earlier about uh you knowmortgages being a scam.
I I I think that they are.
(11:41):
I think I think that's aterrible way to pay off your
house.
And we don't want to and I don'twant to digress you know too
much about but but I mean gosh,you have a 30-year no on a on a
standard mortgage, on aconventional mortgage, you're
paying in the first 15 years,you're paying all the interest
up front.
(12:01):
That's terrible.
That's anyway.
Anyway, I don't want like Isaid, don't want to digress too
much, but there's too much likethere's better ways to pay off
your house than with a that orto buy a house than than with a
mortgage.
SPEAKER_00 (12:15):
Interesting.
So anyway, you may have touchedon it a little bit already, but
I guess when or was there amoment when you realize this is
a strategy almost nobody isusing, but everyone needs.
SPEAKER_01 (12:28):
I'm uh I'm taking a long time to get to the point,
James.
Thank you for uh for bringingback.
It's all good.
It's all good.
So no, so there was this hugeboy.
There was uh like yeah, uh I hada hard time selling uh solar
loans because I think becausethey were expensive and I didn't
feel good about it.
Um I spent the better part oftwo years, so 2018, uh uh going
(12:52):
into 2020, I met with a bunch ofdifferent CPAs, tax attorneys,
consultants in this space, and Iwould and I went to them and I
said, Hey, there's gotta be abetter way to finance for
someone to get solar.
And uh and so what so I designeda solar lease, or it's
(13:15):
technically a PPA or powerpurchase agreement, where a
homeowner could uh replace a$500a month power bill with a$400 a
month solar payment, and uh, andand they could buy the system
later on at a later date forpennies on the dollar.
And the system itself would beowned by a dentist or a doctor
(13:39):
or an attorney or some high networth individual who could take
who would own that asset on thisuh this this person's house,
they could take all of thedepreciation, all of the tax
credits, and they could cashflow that asset um for at least
five years.
And so my my elevator pitch, youknow, as and to to the high net
(14:04):
worth individual or a taxplanner is that for every dollar
that they put into one of ourdeals, they're going to get a
dollar fifty, dollar eighty,sometimes two dollars in tax
benefit and cash flow.
And I'm happy to get, well, Ithink we'll get into the
nitty-gritty of how that allworks.
But uh, but that's that's reallyhow I got into this uh into the
(14:26):
tax equity space was there was ahuge need uh for solar
financing.
Um and so so anymore now nowwhat I do is uh I I we are a
financing option for uh ahandful of different solar sales
and install companies in Texas,in California, and uh and and we
(14:50):
we we provide you know thatfinancing for the for a
homeowner uh through a through aPPA, but the systems themselves
are owned by a by a high networth individual.
So I I I work exclusively in thein the tax equity space now.
And uh anyway, I I appreciateyour patience, James.
I know that was a that was along, long bridge to get here,
(15:10):
but it's a it's been 10 years inthe making.
SPEAKER_00 (15:13):
It's awesome.
I love it.
Um, you touched on it a littlebit earlier on how, say, maybe
someone just getting started outin their career as a W 2, it
doesn't make sense for them.
Maybe a bit of a myth in thesolar space.
How does it work or benefit forthose who are in a W-2 position
and getting solar, it it isbeneficial for them compared to
(15:35):
maybe someone who's just gettingstarted out doesn't have enough
income where it actually offsetsand it it helps them out?
SPEAKER_01 (15:42):
Oh, I think I like I said, from for most people, uh I
would not buy I would not buysolar on your personal
residence.
You can't depreciate it.
It's not it's not a it's not abusiness asset.
Um if you're if you're if thecost of electricity is
relatively low in your uh inyour neck of the woods, I
(16:03):
probably wouldn't do it, to beperfectly honest with you.
Uh but with with our with ourmodel, um it this it's really
roddens uh the base for for thesort of people who who do want
to get solar, they could get it,they get a solar lease.
Uh but if it but but let me uhlet me shift gears just a little
(16:24):
bit.
Um solar makes absolute perfectsense on the uh on on on the
investment side.
Let's say so uh let so let's sayI I'm I'm talking to uh I'm
talking to a doctor, and let'ssay he has and and he let's say
(16:45):
he's a surgeon, he's got amillion-dollar tax bill.
And I and I I come to him, I'mgonna show him this strategy.
And uh, like I said, we'll getwe'll get into the nitty-gritty,
we'll get into the nuts andbolts.
But uh, but essentially, uh I uhI'm gonna say, okay, you you've
got a million-dollar tax bill.
By the way, I'm not doing anytax tax advising or whatever.
(17:07):
I'm I've I I've already talkedto his CPA.
CPA is uh as as say has said,hey, I think this is a good uh
this is a good strategy for you.
Uh you talk to Dan and he can uhbuild out a portfolio for you.
But essentially, instead of makemaking that million dollar
payment to the IRS, he can spendthe you know$550 and put that
(17:31):
towards these solar deals, andhe is going to net that uh it
was he's gonna save that milliondollars in uh in in taxes that
he was otherwise gonna go to theIRS.
SPEAKER_00 (17:43):
That's awesome.
So, yeah, to tie this in to allof our listeners, we've had a
chance to work together, and alot of what you do is getting in
front and making connectionswith CPAs, getting making
connections with taxprofessionals, tax planners.
Now we're getting into adifferent space.
But for those listening, how caneveryone benefit from having a
(18:07):
relationship with you?
I want to hear from from yourwords how how the listeners
could benefit from working withyou because it's not this is not
just about solar.
This this goes wider to thelisteners and the service you
offer and how it reallycomplements a lot of CPAs and
tax planners out there in theUS.
SPEAKER_01 (18:27):
Absolutely.
Absolutely.
I like I I I told my story.
I'm not I'm not a taxprofessional.
I'm I don't offer tax advice oruh I don't I don't I don't find
out I don't I don't do anythinglike that.
However, I am I I make taxprofessionals look like the hero
(18:49):
to their clients.
I I that like I mo most most taxuh professionals are really good
at knowing the law.
And it's a hard business.
Like it's a the tax law changesevery year, and it's thousands
of pages long.
And it's and just to keep upwith all of that is is a lot.
(19:12):
But um what uh what taxprofessionals really love about
about working with me is uh is II show them a strategy, it's
very simple.
It's tax credits, it'sdepreciation, it's cash flows,
it's uh it's business ownership.
And that uh all of these uh allof these uh deductions and and
(19:32):
credits and incentives allpasses through to uh to a a high
net worth individual's personalreturn.
So so instead instead of uh youknow you doing the math on this
doctor's you know tax bill, it'slike, hey, what's the damage?
Oh, it's it's a million dollars.
(19:54):
But hey, I that that I've I'verecently partnered with tax
equity professionals, and withthrough this strategy, they can
save you 45% on your overall taxbill, and it's not gonna cost
you anything more than what youwere otherwise going to pay,
anyways.
Uh, so so that if you I knowthat uh most CPAs are not
(20:18):
huggers, they're not theythey're not lovey people for the
most part, they're numbersfolks.
But uh I I'd imagine that uhtheir clients would be so
excited.
Yeah, they'd want to hug theirtheir CPA or their tax
professional because uh there weyou you were able to open them
up to a strategy like this thatsaves them a massive uh amount
(20:41):
of money on the money that wasotherwise gone.
SPEAKER_00 (20:44):
Yeah.
I I love how you mentioned likeyou're really you're you're the
night behind the scenes making,like you said, everyone else
look really good.
It's your strategy that you'repassing on to who you partner up
with, the other CPA's taxprofessionals, they get to
deliver that good news to theirclient, helps them save an extra
(21:04):
450k.
It's certainly not couch change,and then they're happy, you're
happy, and it's just it's agreat, it's a great program,
it's a great strategy you guysare running.
Um, you you've you mentionedthere saying in your example,
helping a doctor save about450k.
You've helped clients incounting save more than 40
(21:25):
million in taxes.
Can you share one story, nonames needed, um, that really
shows what's possible?
Like what are what are one ofthe the best wins or the largest
tax savings that stands out toyou from from when you've been
doing this?
SPEAKER_01 (21:44):
I've I've helped a I've been able to help a lot of
people.
Um and I and I think what what alot of like I said, what a lot
of tax professionals like aboutthis is that it works for for
W-2 income, capital gains, uh,1099.
It it doesn't it doesn't matter.
It really doesn't.
(22:04):
I uh um I was at a conferencethis last uh this last week in
uh it was it was for mergers andacquisitions.
And and I and I'll I'll I'll getto uh you know some specific
information uh you know examplesthat way, but uh but I want to
talk just real broadly realquick.
Um like if somebody's sellingtheir business and then uh and
(22:25):
and let's be real, most uh mostbusiness owners or most founders
are they're they're visionaries.
They want they they lovebuilding the business, they love
getting to the next thing orwhatever.
They generally don't plan theirexits ahead of time or or really
you know you know structurethemselves you know accordingly.
(22:48):
Um which anyway, so at thisconference, that's that's what
you know these professionals do.
They they help you knowstrategize, plan for the future,
and and uh and position these uhthese these founders for for
their big exit.
Um so as part of their overallplanning or uh or after the
fact, it's like oh crap, now Ihave a$10 million tax.
(23:08):
Yeah, awesome! I sold my companyfor$22 million.
This is amazing.
Now I've got his eight milliondollar tax bill.
That's uh it's uh it's it's kindof devastating, and some deals
fell through.
And I talked to a lot of folksbecause of the massive tax
burden that was incurred at thetime of sale.
(23:29):
So it can help in so manydifferent ways.
Uh but uh but yeah, just thislast year, I uh we I I helped a
I helped a guy in that verysituation.
He literally had a two milliondollar tax bill, uh, sold his
(23:49):
business, didn't really do muchplanning.
Uh I had I had some uh I had ahandful of projects left over
from that uh in 20 from 2024 uhthat had that qualified for a
2024 credit.
The uh he came and talked to mein like March of this this year,
(24:16):
and he's like, Hey, I've gotthis big tax bill.
Is there anything you can do forme?
I'm like, it just so yes.
Oh, kind of.
I so I had these deals that werestarted in 2024, they qualified
for the 2024 credit.
He would but and so he was ableto save harbor those credits for
uh for last year.
Um, and he even though hepurchased those deals in 2025,
(24:39):
they qualified for 2024 creditsand uh and and uh depreciation
you know was applied in 2025.
But anyway, we were able to savehim a massive amount of uh taxes
that uh for for somebody whodidn't do any planning and and
and again made like we we werebut kind of behind the scenes,
(25:01):
but really his uh uh his CPAlooked like the hero.
SPEAKER_00 (25:06):
That's so cool.
Two million dollars.
You like what tell me a littlebit about like what what is that
feeling like when that finallygets across the line and you see
the look on your client's faceor your client's client's face
and they've saved all thismoney.
Like that's it's gotta feelamazing.
It does.
SPEAKER_01 (25:26):
It does.
Well, I I think about it.
I I I've I've been I've beenrich, I've been poor, and uh,
and I've been I and kind ofeverywhere in between.
And and you think about it, ifsomebody's in if somebody's in
the top tax bracket, they'repaying 37% just in just in
(25:47):
federal income taxes.
And let's say they live inCalifornia, it's an it's an
additional 13% of state incometaxes, uh, if they're if they're
in that top bracket.
So 50 cents of every dollar theymake goes to the government in
some form or fashion before theyever even see it.
(26:07):
I mean, that's that's sodemoralizing.
And uh and and I I'm andpolitically speaking, I'm
probably about as far to theright as you can possibly
possibly go.
Like I I've I know in in oureconomy that that's the and you
not everybody agrees with me onthis, but I but we are better
(26:28):
stewards of our resources, ofthe of our hard-earned money.
I earn this money.
I I'm gonna be I'm gonna be waymore intentional about how this
uh how this gets invested, howthis, you know, I can you know
goes back into my company, I canuh I can pay my my employees
better.
(26:48):
I can do I can do so much morewith this money the government
can for special programs or orsome senator's vacation or what
have you like no, like there'sit's the the money is better, is
it's just better leveraged inthe in the earned it in the
first place.
So, yes, it feels it feelsreally good.
It's per this is a perfectalignment with who I am and my
(27:12):
my personal values.
SPEAKER_00 (27:13):
Nice, that's awesome.
I as you're talking about thedifferent percentages, I just
can't help but laugh in painbeing from Canada and what our
tax brackets are and how muchhow much of our money goes back
to the government before we evensee it.
And unfortunately, there's justnot like nearly as many
opportunities as in the US forfor tax reduction strategy.
(27:34):
So I as much as I enjoy you knowhearing this, it's also a little
painful being north of theborder.
Yeah, I don't know, and that's aboot.
Pardon?
SPEAKER_01 (27:45):
I'm just candidate.
Um lame dad jokes.
My bad, James.
That's all good, it's all good.
SPEAKER_00 (27:54):
The the for the CPAs out there, those in the finance
space who aren't offering, say,tax strategy or who aren't doing
anything with tax, but it's abig opportunity for them to
still make a lot of revenue fortheir firm because their clients
are looking for it.
What should they be looking forcriteria-wise for say um either
(28:18):
tax equity pros or like aanother like what should they be
looking for when it comes to atax strategist so that they can
help their clients win and inreturn they win?
SPEAKER_01 (28:30):
It's a great question.
Um I I I there's lots of taxstrategies out there.
There's there's oil and gas,there's uh I there's tribal
credits, there's whatever, likeit's it's it's a big, it's a big
world out there.
I I and and and there's pros andcons to everything.
Um I I think in my in in my inmy experience, uh most CPAs want
(28:58):
something that, for one, makessense, has low audit risk that
way, and uh is is because gosh,the worst thing that uh that
they that uh a tax professionalyou know would you know his
biggest nightmare is to createuh a headache or or or just
problems with the IRS down, youknow, in the in the future.
(29:21):
Like uh like yeah, we want tosave money, but we also don't
want to fight.
We don't want we don't want tocreate unnecessary uh drama uh
in our in our lives or in ourclients' lives, right?
And so uh well, I I I tease mymy uh tax attorney that he
couldn't go to a real lawschool, and so he he just ended
(29:41):
up going to Harvard.
He doesn't think that thatjoke's funny, but I think it's
hilarious.
But uh anyway, my attack my taxattorney is like I I've met with
a lot of attorneys.
He is he he's really good.
He lives in he uh he spends mostof the year in uh Puerto Rico
for tax reasons.
I'm Sure, but uh we we've got a40-page opinion letter that that
(30:04):
backs up every inch of thisstrategy and uh and make sure
that everybody uh you knowstructures things appropriately.
Uh I've I've done this for overa hundred individuals.
Uh we've if it's never oncetriggered an audit.
Uh I have had two people getaudited as part of a that this
(30:25):
was looked at and audited as asan overall.
Uh, but yeah, it was open-closedeal.
We never had any, we've neverhad any of these tax uh uh tax
uh incentives clawed back,never, not once.
Um and so anyway, so so our CPAscan really feel good about what
it is that they're presenting.
(30:46):
Uh they also uh are notdisappointed with the uh with
the incentives that we providethe uh the CPA as well, as uh as
as we we share in those uh inthose upsides uh as well.
So every everybody wins.
If everybody if it's notwin-win, it's no deal.
SPEAKER_00 (31:03):
That's awesome.
I love that's great advice.
Um re reach out to high networth individuals.
Not an easy task, they're hardto get a hold of at times.
What's been the toughest part ofgetting in front of the right
people to for them to be awareof your service?
SPEAKER_01 (31:21):
Oh, great question.
Great question.
Honestly, I anymore, I don't Idon't uh I don't I do don't do
any marketing or or contactshigh net worth individuals
directly anymore.
I just don't like they for one,they don't they they don't
understand the their own taxsituation well enough to be able
(31:43):
to say uh what what's what's anappropriate amount or investment
for that that works good wellfor them.
And also they don't like theythey don't understand the tax
code well enough.
They like my my biggest can mybiggest objection, which is I
still don't know how to reallyget past, is uh man, this sounds
amazing.
(32:03):
This sound this sounds too goodto be true.
I never ever get that from a CPAwho understands how tax credits
work, how and how depreciationworks, whatever.
It's like, oh yeah, yeah, fiveminutes.
They they they get it, but justlike that.
And so anyway, so my so my my mymy challenge anymore is just
trying to get in front of moreCPAs, more um, you know,
(32:28):
attached who understand the thethe law and are proactive that
want that want to add andprovide more value to their
clients.
Uh that and and then when theywhen they refer that doctor or
that or their you knowbusinessman or what or what have
you, they they they they becauseI I don't have any credibility,
(32:51):
right?
I they don't know me from Adam,they don't like that so that but
if the if their CPA says, hey, Iwould recommend doing this, this
would be a good fit, it wouldsave you this much.
Are you interested in talking tothis other group that I've uh
that I've that I'm partneredwith?
Um that then it's you that theyfeel good about it, you feel
good about it.
(33:12):
I keep saying this, but it buteverybody wins.
There's just no downside.
SPEAKER_00 (33:16):
Nice.
That's great.
Uh what's one money habit youwish more high income earners
would adopt right now?
And then we'll get into a coupleuh rapid fire questions, and
then we'll uh we'll tie a bow onthis.
SPEAKER_01 (33:29):
Okay, okay.
So say say your question onemore time.
I want to make sure what whatwhat's one money habit?
SPEAKER_00 (33:36):
Yeah, I probably probably could have re-worded
that differently, not give youthe question and then ramble on
for a little bit afterwards.
So it's my bad.
You're good.
What's one money habit you wishmore high income earners would
adopt right now?
SPEAKER_01 (33:52):
I think I if okay, some high income earner, if uh
if you if you're not meetingwith your with your tax
strategist at least two or threetimes a year, you're losing
money.
If you're not if you're notplanning ahead, if you're not if
you're not being proactive aboutsome kind of strategy that uh
(34:16):
that that mitigates you knowthat it that's just silly,
especially in some places whenyou're like when you're when
you're being taxed atessentially a 50% rate if you
live in a blue state, like howhow discouraging that is.
Like like okay, you could eatyou can make way more money and
and be taxed at 50 cents on thedollar.
(34:38):
Or how about we cut your uh wewe have we cut your effective
tax rate by 45%?
What's good what's gonna bebetter leverage for your time
and energy?
I mean that's that's theno-brainer.
That's just that's just that'sjust silly.
That's an easy one.
I'm I'm trying not to just pullput more plugs into this, but
like, because there's otherthings we can talk about, but
(34:59):
there's nothing that's going tohave a bigger effect on your on
your bottom line than than uhbeing proactive about your own
personal tax strategy.
SPEAKER_00 (35:08):
It's just silly.
Yeah.
Perfect.
Uh, what's one book or podcastyou recommend to anyone who's
serious about money?
SPEAKER_01 (35:23):
Let's let's circle back to that one.
I'm gonna put us I wish I would,I wish I would have had the
rapid fire.
So much for rapid fire when Itake a deep breath and I can't.
SPEAKER_00 (35:33):
All right, we're still in the rapid fire range.
SPEAKER_01 (35:35):
How about this one?
How about uh the the CFOChronicles?
SPEAKER_00 (35:38):
How about that?
Perfect.
Thanks.
Thanks for the plug.
I'm sure there's I'm surethere's others out there that
you know, probably a little bithigher that uh people could do
for listen to but they'reserious about money.
Um what's one practical steplisteners could take this year
to shrink their tax bill if theyhaven't been listening for the
last 30 35 minutes?
SPEAKER_01 (36:00):
What's what's one thing that they could do to uh
reduce their tax bill for thisyear?
Okay, I again I'm but I'm I'veI've been I've been here talking
about my strategy for this longtime, and uh and and I can't I
honestly can't think of anythingelse that's okay that would be
(36:22):
better.
SPEAKER_00 (36:22):
We've we've gone we've gone in depth why why the
solar tax credit is is so great.
So um last one here who issomeone in finance or business
that you're learning from today.
SPEAKER_01 (36:36):
Um there's this group that I found a few years
ago after I uh after I I Ibought my house that uh that
they were touting uh you knowyou could pay off your house in
in five to seven years withmaking no additional money or
whatever.
I'm like that sounds suspicious.
(37:00):
But uh um it was it's this groupcalled the uh replace your
mortgage for and they've gotother stuff like replace your
university.
You're like and it and it's alland uh I'm I'm not getting paid
for this, and so maybe I maybe Ishouldn't promote them too hard.
But uh anyway, but but as far asbook or podcast or whatever, I
uh I've gotten a lot of valueout of this uh this group.
(37:22):
I I I I paid for uh for amembership a few years ago and
uh learned about um differentstrategies for for paying your
home off quickly and and and andother investment stuff.
And so so essentially uh one ofone of their strategies is to uh
uh re uh instead of having a amortgage, you would have a first
(37:46):
position home equity line ofcredit that you would treat like
your you and but you would useit like your your checking
account.
So you'd get your you'd get yourpaycheck and you put it into
your HELOC and you use it like achecking account, but uh, but
all the while, whatever money,so whatever money you're is
sitting in your savings accountor your or your checking account
(38:06):
or whatever, it's since you'renot earning any interest on it,
it's actually kind of aliability because it's just
sitting there.
It's not working, it's not doinganything.
But if it's sitting in yourHELOC, it's it's driving the uh
the principal down during themonth.
It's gonna and the and thebalance is gonna fluctuate, but
it's calculated on simpleinterest, not compound interest
(38:29):
like a mortgage is.
So just taking that strategy,you know, spending less than
what you make and have and haveuh all of your money sitting in
your HELOC versus in low or nointerest bearing accounts, that
strategy alone will shave offdecades uh from uh off of a
(38:51):
30-year mortgage.
And I just thought, gosh, thatis so brilliant.
That's so simple.
Why doesn't everybody do that?
And so when I say earlier aboutyou know uh you know mortgages
being a scam, gosh, they're likea little bit of proactivity on
on just little daily habits thatpeople have make an enormous
difference uh you know over thelong term.
(39:12):
And you have a let's say youhave a uh a paid-off mortgage,
you're sitting on 400k orwhatever it is of of liquid
liquidity that way.
How easy would it be to purchasea an investment property or in
uh or or or a business or a orsome kind of limited partnership
that way?
Gosh, there's there's so much,there's so much you can do, uh,
(39:36):
but but you just can't do whateverybody else does.
And you're you're not gonna getahead.
You never will.
SPEAKER_00 (39:42):
I love that.
Anyway.
Last one for you, Dan.
I'd like to end all of ourpodcasts with this question.
What's the best piece of adviceyou've ever received?
SPEAKER_01 (39:53):
I'm gonna go to uh Michael Scott at the office.
Oh, please.
Don't be an idiot.
Don't be an idiot.
Change my life.
First my feelings every time.
SPEAKER_00 (40:03):
Don't be an idiot, Michael Scott.
Love it.
Dan, thank you so much forcoming on, sharing um all of
your insight, your knowledge.
It's always great chatting withyou.
But um, how how can people getin touch with you if they want
to continue the conversation?
They want to see what it'd belike to potentially work with
you and help their clients winmore by being connected with
(40:25):
you.
SPEAKER_01 (40:25):
Yeah, absolutely.
You can check out our website,it's uh tax equityprose.com.
Uh you can also find me onLinkedIn.
Um, it's uh yeah, my my name isDan Lake.
I think it's uh TaxequityProsDan Lake145 is uh is my short uh
URL at LinkedIn.
(40:46):
Pretty sure that's what it is.
But perfect.
SPEAKER_00 (40:47):
Yeah, anyway, yeah, love to chat.
Awesome.
We'll put the show notes, we'llput the links in the show notes,
Dan, so people can get in touch.
Again, can't thank you enoughfor coming on.
Really appreciate it.
Thanks, James.
I appreciate the time.
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