January 26, 2025 • 42 mins
Uncover the best tax strategies to maximize your real estate business profits with Dan Tucker from Tucker Lucas & Associates. Learn how to choose the optimal business structure, leverage deductions, and minimize tax liabilities effectively. From navigating self-employment taxes to retroactively adjusting for S-corp advantages, Dan shares practical tips every agent needs to know. Don’t miss this opportunity to transform your financial approach and keep more of what you earn!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
So I've gotten people'sQuickBooks files that thought
(00:03):
they were a disaster, but whenI get in there, it actually made
sense and I could use it.
I've had other people sayI'm really good at QuickBooks.
I tie out everything out andthen I go and they have like
negative cash or somethingcrazy that way out of whack.
Travel Travel is consideredlike.
Uh mileage and nope.
So like if you're going toconferences or things like that
(00:24):
taking flights That's thing, youknow Those are all deductible
expenses as long as they'rerelated to to what you do to
earning money And what happenswith the s corp is that you
know, say you have a hundredthousand dollars of profit As
a Schedule C, you would pay selfemployment tax on the 100,
000, which is 15, 000 plus.
As a S Corp, if we did itretroactively, you would turn
(00:47):
that same 100, 000 of selfemployment income into 100,
000 of business income, um, andthere's no self employment
tax on business income.
(01:09):
Welcome, everybody.
I'm Kamil Sargi, your host ofJust Two Minutes.
And today I have Dan here.
Dan, you want to tell us aboutyourself?
How you doing?
I am, uh, my name is Dan Tucker.
I own a tax and accountingfirm in Johnston, work with
small businesses, um, onbookkeeping, tax preparation,
tax planning, you know, anytype of financial needs for
(01:31):
the small businesses.
I'm excited to have Danhere today because we're going
to talk about real estateand how He helps real estate
agents set up their business.
And also I'm wearing the Johnsonand Wales, uh, socks today.
Cause I went to Johnsonand Wales and so did Dan.
No, sorry.
(01:55):
That was a roadie ram.
Oh, you all right?
Yeah.
Okay.
Sorry guys.
So I'm wearing the sock, thesesocks to represent Johnson
and Wales.
I went to Johnson and Wales.
My daughter goes there.
J.
Woo.
Wildcats.
Wildcats.
Yeah.
Brody.
Brody.
Brody for me, though.
(02:17):
It's weird because my son goesto URI.
Yeah.
My daughter goes to JohnsonWales.
Yeah.
So it's kind of like, you know,like we're brother and sister.
Close.
All right.
So Dan, you're here today.
Not just to talk about realestate, but really for the
just two minutes.
Questions.
All right.
Let's hear them.
All right.
So my timer over here.
(02:39):
Two minutes.
Are you ready for thesequestions?
Yeah, let's do it.
Okay.
And go.
So, when did you go to URI, notJohnson Wales?
I went to URI to play baseball,basically.
And then, you know, secondary,I got an education.
But realized quickly thatthat was really, The primary
(03:00):
because I, uh, even baseballwas not a career choice
that I was able to pursue.
Yeah.
But yeah, that was mostly,it was, you know, athletic
related at the time.
Okay.
Uh, but I mean, if JohnsonWales was the only school that
offered it, would you go there?
Sure.
I actually looked at JohnsonWales to be honest.
(03:20):
Yeah.
But I did not end up attending.
Yeah.
Also, another question is howcome, like, They came up
with they took the letters right?
Yep, and then they put liketwo lines And now that's the
dollar.
Yeah.
Why, why'd they do that?
I really have absolutely no cluewhy they, why or who made
the dollar sign.
(03:41):
Yeah.
I'm assuming something to dowith the letter S.
Like, something that startswith S.
Like, I don't know.
Um, It could be, yeah.
What's your favorite chips?
Favorite chip?
I'm very plain, so I want mychip to taste like a chip,
so I would probably just saylike a regular plain or ridged
potato chip.
But yeah, like I don't wantmy chips to be McDonald's
(04:03):
cheeseburger, ever, you know.
If I want to taste a McDonald'scheeseburger, I'd go for a
McDonald's cheeseburger, not achip that tastes like a bar
a chip.
So like barbecue chips arenot for me, those kind of
things, no.
Okay.
It's kind of plain.
If I put you in the kitchen.
And give you everything to makea dish.
What's, what's your favorite,like, what's your best dish that
you can make?
(04:23):
Oh, that I would makepersonally?
There's not much.
I would probably heat upa chicken patty and make a pasta
side.
Yeah.
I married well for that. Oh man.
Alright.
That's great.
Oh goodness.
What'd you think of thequestions?
(04:45):
Great.
Yeah.
You like that setup?
Sure.
That I did with the socks?
Yeah, you did that on purpose.
Yeah.
Yeah.
I knew you went to Johnson.
That's who you are.
Yeah.
No, talk about it.
. Oh, man.
Okay, cool.
So Dan, you are an accountant.
You help people.
Accounting, you help mepersonally, you help gold door.
(05:07):
So.
There's different ways forpeople, real estate agents
to set up their business.
There's like sole proprietor,there's a S Corp LLC, all this
stuff.
So what, if you met with a,an agent, like how do you
figure out what, um, so settingup an LLC gives you some
separate.
(05:27):
Protection for liabilitypurposes, but in regards to
the taxes, it's really theirincome kind of gives us
an idea of what to do based onhow much you're profiting.
You know, there's situationswhere you want to turn yourself
into an S corp so you cansave some money on the self
employment taxes.
You know, when you're a soleLLC, you file your taxes on
(05:50):
schedule C and you know, theincome on that schedule C
is subject to It's a selfemployment tax, which is the
typical tax that people seetaken out of their paychecks
when they're getting a W 2.
So it's the Social Security andMedicare taxes.
So there's just ways to savesome money there when your
income gets into the 60, range.
You know, it makes sense tomake the switch at that point,
(06:12):
really.
You know, with the conversationabout where you're projected
to keep going to.
Yeah, because I'm assumingthere's so many different
scenarios and things.
To make that decision.
Yeah.
Yup.
So, you know, there's otherthings that you can do in
terms of retirementcontributions where you can save
some tax dollars, but that'sreally a separate issue because
(06:33):
you know, if you're filing aschedule C, you make retiring
contributions, you getdeduction, you know, of your
income, but it's, you're notreducing your self employment
tax.
You're not getting a deduction,you know, for your self
employment income and that's thesituation.
You know, like I said, theincome is the driving factor
with, uh, a conversation aboutwhere you project to go and you
(06:53):
know, what your plan is movingforward.
Um, if you have one goodyear, it's not always
necessarily the best idea to doit because there are, you know,
additional costs in becomingan S corp and in registering
with the state, but you know,it makes sense to absorb those
costs when your income's highenough to grab enough tax
savings to make it worth it.
Okay.
It.
(07:14):
Someone starts off in realestate, does maybe one, two
transactions the first year.
Probably not.
So they're, they're probablynot going to need that type
of tax planning, but youknow, it's also a good idea
to get ahead of what youneed to be keeping.
Track of at that point.
So you can get into some goodhabits before you end up getting
(07:37):
very busy where it's tougherto create those good habits.
If you're already doing thatbefore you really, you know,
start crushing it or bringingin lots of money, it just
makes that transition easier.
And it gives you, you alwayshave a, the knowledge of where
you stand throughout the year.
So it makes it easier to taxplan and do things like that
as well.
Okay.
Yeah.
As far as the agents, like, youknow, very simple.
(08:00):
Like we have.
The income, we have theexpenses, is there expenses
that are only valid for thesole?
Maybe we should talk about thedifference of like the sole
proprietor versus the, youtalked about LLC.
So in terms of collectingyour That data and financial
information, it doesn't reallymake a difference if you're
(08:22):
an LLC or you're, uh, excuseme, an S Corp or just an LLC, so
filing a Schedule C, theexpenses really get shown the
same way.
So that's why, you know, I, likeI said, it's a good idea to get,
to get ahead of the gameand start tracking those things
correctly.
So real estate agents, the bigexpenses is usually their auto.
So you want to make sure you'retracking your mileage.
You know, that includes anymileage going to open houses,
(08:45):
showings.
If you're taking continuingeducation classes, you know,
all those things wouldfall under business mileage
and you get a deduction basedoff of what that mileage is.
Cell phone is another one thatyou can carve out.
You have to have the businessand personal use because there's
always a Mick, but you can carveout the business use of
your cell phone and takethat as a direction to home
(09:06):
office is another one as well.
But yeah, there's differentthings to carve out that we
make sure we're, we're gettingall the deductions that we
can get.
So you're not paying, you know,too much tax on your tax return.
So with a sole proprietor,that's just person would know.
Yeah.
So a sole proprietor would beanybody that just wanted to
start a business or, youknow, even a real estate agent
(09:27):
to be specific that juststarts in year one, they're
really a sole proprietor unlessthey register an LLC, then they
would still be in business foryourself.
Okay.
You would be a single member LLCat that point.
But there's, you know, there'sfor federal purposes, there's no
separate entity.
It all goes on your personalreturn.
And then, you know, the nextstep above that would be to
register as an S corp andyou have to file a selection,
(09:51):
um, in order to do that.
And they do allow you to goback three years.
So if there's people that hadsome good years and were
scared to do their tax Andhadn't done them yet.
There's form 2553 is theform you use to elect the
S to make the S election.
You can file that as longas there hasn't been any returns
filed in the past, you know,in those, in that three year
(10:11):
block, you can make the electionto go back.
Yeah.
So there's some.
Avenues to save people moneythat think they're stuck and,
you know, we're scared to go andfile their returns because
they have a 1099 for 100, 000 orsomething like that.
Yeah, yeah.
Yep.
The sole proprietor is necessaryor can they just do it on
their own?
Yeah, so a sole proprietorwould.
(10:32):
1099.
Yeah.
So the only difference reallyis, is a single member LLC is
registered with the state wherea sole proprietor, you know,
is just.
Doing business, you know, asthey go, there's no other
difference outside of that.
Okay, so tell me more about theelectronic EIN number.
Okay, yep, so you can What'sit used to like, what's it
(10:54):
used to?
Yeah, so an EIN is basicallya social security number for a
business.
So instead of So a soleproprietor can get an EIN.
Yeah.
So instead of having to use yoursocial to file different
forms, you get this EIN numberfrom the IRS and that's
the number that you use onyour form.
So if you're a single member,excuse me, if you're a sole
(11:15):
proprietor, When you go tothe IRS website to register
for an EIN, you just selectone of the choices is that
you're a sole proprietor.
The other choices are LLC or youcan be a corporation, you can
be a non profit.
There's a list of different,you know, reasons why you
need the EIN and you selectit at that point.
Yep.
Okay.
So, and you do need a separateEIN if you were previously
(11:38):
registered as a sole proprietorand you end up for whatever
reason, income tax purposes orliability purposes, if you
register an LLC subsequentto that, you need to go ahead
and get a new EIN as well.
But yeah, each EIN is uniqueto that entity type.
How much is it to get an EIN?
It's free.
You just go on the IRS website,irs.
(11:58):
gov.
There's a little toggle buttonto get an EIN and it takes maybe
five or 10 minutes to goand get.
I wonder why they make it free.
I don't know.
Oh, so they can tax you.
Yeah.
It all comes down to tax.
They just want to track it all.
Yeah.
They want to track it.
Nice.
Okay.
With the EIN, uh, you're,you can open up.
(12:21):
Bank accounts.
Yep.
Yeah.
So typically the bank is goingto need you to have some type of
documentation for the businessto open a business bank account.
So they'll need, they usuallyask for the EIN letter or
they'll go right to the statewebsite to see that you're
registered with the secretaryof state.
So you need those thingsin order to open a business bank
account.
You can open a bank account inyour own name with a DBA.
(12:43):
Without doing that.
But if you want it in thebusiness name, you need correct
documentation for them to dothat.
Okay.
What about w nine?
So w nine is, um, so it wouldbe for if you have contractors
working for you, they would haveto fill that out.
So you could issue a 10 99 tothem at the end of the year.
So I guess in, you know, itwould be more for the broker
(13:06):
issuing it to the agents.
But I guess technically, if anagent had Okay.
An assistant helping them out orsomething like that.
And they were paying somebodychecks to help them out.
If you pay any unincorporatedperson or an unincorporated
business over 600 in a calendaryear, you're required to issue
them a 10, 99, 600, 600.
Sorry.
Sorry.
Yeah.
Nope.
(13:26):
Nope.
Nope.
Damn.
Where's that job?
Yeah.
Right.
I don't know where that oneis either.
Yeah.
Yeah.
Okay.
I have agents here who they wantme to pay them directly.
So I need, you know, the 10nights to fill out that form.
I also have agents whowant me to pay their corporation
or LLC directly.
So they give me a W 9.
Same thing.
So W 9 either an individual orbusiness would, you know,
(13:50):
would fill those out.
Nice.
As far as, uh, you're talkingabout.
Auto, like having, payingfor your mileage and all that.
What's the, cause real estateagents, we drive a lot.
We drive all over the place.
Yes.
So what's the, is it benefitor is it smart to.
(14:14):
Buy under the corporationor is it, um, so it depends
on where you are in yourdevelopment.
So, you know, to start off,you're not gonna, you're
probably not necessary to buy,uh, you know, the vehicle
through the LLC because atthe end of the day, you're going
to pick up your business mileageanyway, as part of the return,
(14:35):
but once you register with theLLC, you end up paying.
Commercial rates on insuranceand things like that.
So until you really needto, it's going to increase
your costs for thingsunnecessarily, because we're
still going to deduct it at theend of the day.
Anyway, but you know, once yourbusiness is healthy and you're,
you know, it makes sense foryou to turn into the S Corp
and put yourself on payrolland you know, you're making
some good money, you know, thenyou can go ahead and LLC.
(14:59):
Okay.
To buy things under thebusiness.
Is that EIN what they lookfor as far as credit?
Yup.
So they're going to look, butthey're, they're going to
pull your Personal creditas well, because, you know, they
typically sometimes, or, youknow, on occasion, you have
to sign personally for them todepending on how much history
they can, they, the history,credit history that the business
(15:20):
has.
Yeah.
Okay.
Interesting.
So as far as buying the caror owning it and doing the
mileage and all that is twoseparate, you know, it's
completely depends on what you.
Assess like how they exactly.
Yup.
Yup.
You know, if there's otherpeople in your business that are
going to be using the vehicletoo, then you definitely want to
get it, you know, purchasedwith the business registered
(15:42):
with the business.
But if it's just you drivingto open houses and things like
that, it's probably, you know,it's just going to cost you
a couple of extra dollars andit's not benefiting you that
much.
There's nothing really differentabout it.
Yeah.
Cause again, we're stilltaking the deduction on your
return.
So you're still gettingwhatever.
Business use of the car thatyou're using.
(16:03):
So my car is clean, you know,on the outside, like who's,
but what if I slap pictureof myself on the car made
it ugly?
No, uh, it made it, you know,advertising.
Yeah, of course.
What's up with that?
So, yeah.
So if you're using your vehiclea hundred percent for business,
then you can deduct a hundredpercent of the cost, you know,
(16:23):
maintain and use that vehicle.
Yup.
So if you're advertising on yourvehicle with the, you know.
Picture yourself.
If that's going to bring yousome more business, you go
get them.
Okay.
You, you said you have to driveyour car a hundred percent
business related.
So you don't have to, butin order to get a, you know,
in order to take a hundredpercent of your cost to run the
(16:43):
vehicle, you have to use ita hundred percent for business.
What percentage of the carhas to be advertisement?
The whole thing.
Okay.
Yeah.
Interesting.
So, cause I see that a lot andI wonder like, cause sometimes,
I mean, you can't.
Garrett, like, okay, use thisvehicle a hundred percent for
business if it's not wrapped,but, oh, shoot, someone got
(17:06):
injured a family member.
I have to go pick him up,bring him to the hospital.
Now it's like, all right, solike 98 percent used.
Yep.
Can I get that silly?
So if you, it depends onhow silly you want to get.
So if you want to be that,minute details, then yeah,
you know, at the end of theday, if you were to get audited,
(17:27):
the IRS looks for mileagelogs to proof of your business
mileage.
So the mileage log is supposedto include the purpose of
the trip, uh, the beginning andstarting points and how many
miles, you know, we're driven onthe trip.
If you keep track of thingsfor, I believe it's three
months, the IRS will let youextrapolate that over a year
and use that as evidence too.
(17:48):
But, you know, if it won't makesense for someone that is
driving, you know, so manymiles one month, more than next
month, if you, you know, doingthose things, you're probably
better off trying to track thatstuff.
So, you know, exactly how manymiles you're driving.
Yeah.
As far as like home home office,what.
Doesn't, what's not partof that?
So the home office can be twodifferent ways.
(18:12):
You can take the simplifiedmethod, which takes the square
footage of the home office tomultiply by five.
And that's your deduction.
Or you can multiply by fiveto, to what?
So the, I believe it's.
300 square feet, the deduction.
Oh, there's an amount.
There's an amount.
There's a set amount per squarefoot that you get.
(18:34):
Oh, wow.
Just like mileage every year.
They change for the home office.
Yup.
Okay.
They don't change that everyyear.
No, no.
And that's just the simplifiedmethod.
The other method is.
To carve out your actualexpenses, if it's rent or
mortgage taxes, utilities,and you take the percentage
of the home office.
So if the home office isone room of your house and
(18:56):
it makes up 10 percent of yourhouse, you know, calculate
all those taxes and the interestand utilities, and you get 10
percent of those as a deduction.
Interesting.
You know, if it, sometimesit doesn't usually create
that much different of adeduction, but it's really
situation by situation.
Yeah.
Okay.
I mean, can they, if they have agarage that they want to
(19:18):
build out as their officeexpenses to, yeah, so actually
that is sometimes can be agood idea for you because
you can actually pay rent.
To yourself for that garage,and you can save on self
employment tax.
So there's clients that willrent out their own garage from
themselves, and you rent itout for a thousand dollars
(19:39):
a month.
And you still have to reportthat 12, 000 as rental income,
but you're reducing your selfemployment income.
So in that situation, you'resaving self employment tax on,
you know, the 12, 000 ofrent that you paid.
Wow.
I love it.
So people like they comeinto your office and they're
like, So I have this garage andthen boom, boom, let's turn
(20:01):
it into an office.
You're like, okay, how can wemake that happen?
Yeah, that's amazing.
Yeah, that's cool.
It's, I mean, that's why,that's why you do it.
That's why I have to use myaccount.
That's, that's really good.
So if the garage, if you needto bring contractors in to
build it out, is that it?
So all that costs would go toright off against the business,
(20:23):
any build out type of thingsthat are to the foundation
of the building, they haveto get depreciated.
So you don't take them in all inone year, it'd be a commercial
building.
So it's 39 years.
You have life of the assetbasically, so you can deduct
it over 39 years.
So it's not a giant deductionevery year, but it still helps.
Can reduce your tax.
(20:44):
Okay.
As far as like any other crazyexpenses that you've seen,
what's, uh, What's other crazytypes of expenses for real
estate agents?
I don't know that I have anygood real estate agent
deductions.
It's very basic.
Cause yeah, it's, it's,it's, you know, the mileage,
(21:05):
the auto is usually the biggestdeduction for you guys, but
yeah, I don't have any crazydeduction stories.
Okay.
If they were to hire.
Like you were saying an admin,do they have to like, and
they want to hire them as anemployee?
Yep.
Do they have to switchtheir sole proprietor?
(21:26):
They don't, they don't, theydon't.
So they can do that as well.
So, so you can be a soleproprietor or a single
member LLC and run a payrollfor other people.
You just can't run a payroll foryourself unless you're an
escort.
So if you want an assistant,they're going to be an employee.
You can go ahead and geta payroll company or try
to do the payroll yourselfor work with an accountant
and you can run a payrollfor that person.
(21:49):
Do you get, you can go andget the EIN like we talked
about on the IRS website.
You got to register the stateto run payroll, employer
account, and then registerwith the IRS for the EFPTS,
which is the federal depositsystem.
But yeah, you, you can runa payroll for employees,
just not yourself as a singlemember LLC or a sole property.
(22:09):
Okay.
How about suits?
Suits buying suits.
And so no, actually suits don'treally fall into a deductible
item.
So because they have multipurpose use, like you can
wear your suit to a weddingor out to dinner, you can't
take those things as adeduction.
It would have to be specificuniform.
(22:31):
You can get away with doinggold door.
Apparel would be deductiblebecause it's advertising.
We got that way.
There you go.
Gold door apparel.
Go get your gold door apparel.
Wow.
But yeah, suits like that.
So, you know, for example,myself, if I wore a suit
to work.
I'm using it for work, butbecause I can wear it to a
wedding or dinner, it's notanything that's deductible.
(22:51):
Nurses, scrubs, things like thatwould be deductible because
it's a uniform and you're onlywearing it for business
purposes.
Steel toe work boots forlaborers or things like that
are all a hundred percentdeductible, but warm weather
gear is a gray area.
Probably would fall under notdeductible too.
Wow.
So dress shirts with embroidery,gold or realty.
(23:14):
We could fit those in the box.
Not a regular dress dress shirt.
Okay.
How about like dry cleaning?
It's all personal expense.
Okay.
Cause I mean, you could, unlessyou're dry cleaning dirty.
Yup.
Well, if you're dry cleaningyour scrubs, that's one
thing, but yeah, dry cleaninga suit is, yeah, it wouldn't
fit in the box because how doyou tell like, Oh no, I got
(23:36):
it dirty at work.
It wasn't when I was at thisparty.
Right.
Yeah.
They don't care anyway.
Yeah.
I'm trying to think of like.
Shoes that are You know, butwe can't really, it's not Nike.
I think you can design, you cancustomize.
(23:56):
You can, you can go door.
You could, could it dependson how aggressive your account
wants to be when you presentthem that expense.
Oh man.
So we talked about expenses.
I think we covered that.
Yup.
Right.
Let's talk about income.
(24:18):
Income.
Okay.
Income.
So with income, again, youlook at that as, I mean, mostly
like as far as a broker,I'm paying them as a 10 99
or paying them to theirbusiness.
So If they're like, how do theychoose if they're going to,
(24:41):
I think we, we talked about whattype of entity they're going
to be.
Yeah.
Yeah.
So it depends on, you know,first we start with whatever
your 10 99 is for, cause that'sgoing to be your gross receipts,
your top line.
And then we need to, Carveout and figure out what your
deductions are for the thingsthat we talked about, the
auto and the, you know, cellphone, any type of continuing
education, classes, advertising,business cards, all those
(25:04):
types of things, signage for thehomes.
I don't know if the agents areresponsible for that themselves,
but whatever staging for thingslike for the open houses,
all those things.
Come off.
We come up with whateveryour net profit is.
Um, net income.
And then at that point, ifit's 20, 30 grand, we're
probably just going to leaveyou as a sole prop and file the
(25:25):
schedule.
See, and you pay a little bitof tax.
It's probably nothing crazy,but when you get into the
50, range, we'll starthaving the conversation about,
Hey, you might want to becomean escort.
We can save you some selfemployment tax.
You know, what's your yeargoing to look like moving
forward into next year andafter.
If you're already at 000, it'salmost a no brainer at that
(25:49):
point to do it.
And what happens with the S Corpis that, you know, say you
have 100, 000 of profit asa Schedule C, you would pay self
employment tax on the 100,000, which is 15, 000 plus.
As S Corp, if we Did itretroactively you would turn
that same 100, 000 of selfemployment income into 100,
(26:10):
000 of business income Andthere's no self employment
tax on business income.
So, you know right off thebat there you'd be saving 15,
000 but the caveat is onceyou're an S Corp, you have
to pay yourself reasonablecompensation Which means that
you have to run a payroll foryourself and that can vary
Depending on how much profityou make.
But we want to play with thatnumber to make sure we don't run
(26:31):
too much through payroll,because if you turn yourself
into an S Corp and then payyourself all your profits
through payroll, you justdefeated the purpose of creating
the S Corp.
So it's got to be a steadyamount of money.
So big picture, like it doesn'tnecessarily have to be steady
as in I'm making X a week orX a month.
But if we look at.
(26:51):
Year as you know, the taxreturn or tax filing periods.
Therefore, you know, the Januarythrough December timeframe.
So we're more concerned whereyou are for that timeframe,
but if it makes sense todo the S corp, we run the
payroll kind of as you're makingyour money, if that makes sense,
you, you know, monthly orquarterly is sufficient.
To run a payroll for yourselfat that point, because at
(27:12):
that point you're running thepayroll because you're an S corp
owner and you have to do it.
It's not like you're havingemployees that you need to
pay week to week, becauseif you're doing it right, you're
still should have profitleft over.
That is still your money youtake as profit distributions
too.
So when you're an S corp,the way you pull money from the
business is through payrolland profit distributions
(27:34):
as well.
Okay, and C Corp, uh, C Corpis its own separate entity.
So in order to get money outof the C Corp, you would have
to pay payroll.
Or dividends, which is a whole,whole, that might be a whole
separate episode.
Okay.
So it's complicated.
(27:54):
Yes.
So if, if an agent alreadystarted receiving money to
themselves for the year,it's easy for you to switch them
over to whatever categorythey need to be in.
Yeah.
Yup.
Yup.
Yeah.
So like, again, like I said, theS corp, it gives you, you
have the ability to goback three years, three years.
So yeah, if there's someonethat came in and still needs to
do their, you know, 23 taxreturn, you know, there's still
(28:18):
things that we can do goingbackwards to make it.
So they don't get crushedas much as they could, you
know, in a different scenario,because again, we wouldn't
even be changing how much theirincome isn't at that point.
We would just be changingthe nature of their income and
what line it goes on the taxreturn, which can save you a
significant tax dollarssometimes.
(28:40):
What do you think agents mostlyforget about?
Like declaring as far as likeexpenses, um, kind of thing
that it's obvious to see.
Yeah.
So I would say carving out thecell phone.
Um, people don't always think ofauto is usually a big thing.
Internet, you know, people,yeah.
So that home internet wouldfall under the home office
(29:01):
too, if you were taking a homeoffice, so it all goes together.
Yeah, yeah, yeah.
So as far as like mileage,how do people.
What's the best way to trackthat?
Oh, there's apps that are outthere that you can download.
Some people just use Exceland you know, you, you, some
people still, I have peoplethat I get handwritten
notes from at this point, butit all, you know, it's all
(29:24):
personal preference andeveryone's brain works
differently.
So however your brain works,that's how you should compile
that, that, that information.
Yeah.
Wow.
So you mentioned Excel.
And other ways that people aretracking, if someone bought
QuickBooks and has all theirstuff in there versus someone
with everything in Excel, likehere's all my expenses or versus
(29:48):
someone has QuickBooks, they putall that stuff in there.
Which one do you prefer orwhich one is more of pain?
It really depends because eitherone could be super clean or
all over the place.
So I've gotten people'sQuickBooks files that thought
they were a disaster.
But when I get in there, itactually made sense.
And I could use it.
(30:09):
I've had other people say, I'mreally good at QuickBooks.
I tie out everything out.
And then I go and they have likenegative cash or something
crazy that way out of whack.
Same thing for Excel.
If you're.
Tracking everything in Exceland I can tie out your sheets
to bank statements and itall flows and makes sense.
You know, it's, it's easy towork with.
Someone could give me anExcel that is just a hodgepodge
(30:31):
of numbers and it doesn't makesense.
And then I have to go and eitherask them to redo it or,
you know, do the legwork andsummarize it all, you know,
myself.
Yeah, I think Excel is probablythe easiest way if I were to
do it.
I would use Excel.
Especially for the mileage.
Yep.
Yep.
Mileage and credit card anddownload it as an Excel file
(30:52):
and just put it in and justcategorize it that way.
Yep.
Most of the accounting softwaresat this point have download
features and they memorizetransactions and things
like that.
So, you know, sometimes you gotto do a little bit of legwork in
the first few months to geteverything set up.
But there's, you know, there'sways to create efficiencies for
yourself.
Using the accounting software.
(31:13):
But like I said, Excel workswonders too with the formulas.
And then I work with Excelfiles, QuickBooks files,
you know, different types ofaccounting softwares.
Yeah.
Yeah.
I love Excel, but I'm notthat kid who has all their
expenses and everything in therefor the business.
(31:34):
Mm-hmm. I have to use QuickBooksand I've been using it for.
A few years.
Sure.
And, uh, I mean, you've seenme with QuickBooks.
Why is it so complicated?
Yeah, there's just a lotof moving parts.
I mean, they, from a distance,you look at QuickBooks
and you're like, all right, thisseems easy because it downloads
(31:55):
everything.
You start using it.
You're like, wow, reconcile,like all these different things.
Oh my God.
Yeah.
There's some quirks to it todownload the transactions.
Sometimes it will double upon things, but like I said, if
you get a good base and getit set up correctly ahead of
time, or when you start beforeyou're, you're doing, you know,
(32:15):
hundreds or thousands oftransactions, you can get
the, you know, you can geteverything in place where
it's, it's coming over cleanfrom the download to, you know,
But yeah, it's, it can becomplicated when you get into,
uh, you know, invoicing andreceiving payments, running your
receivables or payables throughQuickBooks.
Some people try to get alittle too fancy and they end
up having to answer thingsmultiple times because they're
(32:37):
setting up it as a payable or areceivable.
Wow.
So, Oh man.
Yeah.
I just wish that they made itsimpler.
I mean, they tried, right?
They try, they try.
So, but like, you know, I bet itwouldn't be simple for me to
go and try and sell a houseeither, right?
So that's why I'll teach youthough.
There we go.
I'll teach you.
I don't know who it wouldbe harder for you to teach
(32:59):
me to sell a house or me toteach.
How many times have you told me?
That's what I mean.
I wouldn't be a one shot stopif I came to you to learn,
you know, learn the real estatebusiness.
Yeah.
Yeah, it would be multiple,you know, yeah, there's a lot to
learn.
Yeah, same thing.
So the tax code is everchanging.
(33:19):
So yeah, there's a lot to it.
But that's why, that's whywe barter services.
And there's, you know, alldifferent people in the world to
help each other out.
Right.
Yeah.
Yeah.
Anything else that I missedthat you think, uh, That
I should have mentioned?
No, I think, you know, just likeI said, getting ahead of your
tracking of, you know,income and expenses makes things
(33:39):
easier for you.
You know, you can do it goingbackwards.
But if I asked you, youknow, what you spent money on
last month or six monthsago, it's going to be a lot
easier to recall what, youknow, what the money was that
you spent on last month.
So if, if you.
Hold off on summarizingthings for yourself, people
end up forgetting about,you know, things that they
(34:00):
did or money that they spend.
So it's just when you havethe fresh mind, it's, you're
less likely to miss thingslike that.
And at the end of the day,you want to pay the right amount
of tax.
You don't want to pay thegovernment too much money
because they get, they gotenough besides from like
expenses and Excel spreadsheet.
So there's like.
That's great that you putall your stuff in a spreadsheet,
(34:21):
but now you have to categorizethem so that they go in
the right spots.
Yup.
Uh, before we talk aboutcategorizing, does it really
matter?
Can it just be like stuffto help my business run?
Yup.
So, so.
At the end of the day, notreally, you know, if you have a
business expense and it's,uh, an office expense or
(34:44):
if it's a utility, at theend of the day, it counts the
same, you know, on your taxreturn.
Yeah, what's the profit?
Yeah, exactly.
If it's in the wrong category,at the end of the day, there's
not anything that would changebecause it doesn't change
what your bottom line is.
Okay.
It's more, you know, if it's abusiness expense or personal
expense, those things, obviouslyyou're going to change
(35:05):
the bottom line, but.
Okay.
So if I mess up and putthe wrong category.
You're fine.
Yeah, I might catch itand fix it before I file your
return anyway, and youjust might never know, but
either way, it wouldn't matter.
Yeah.
As long as I'm puttingthe income right, the correctly
and oh my gosh.
Okay.
(35:26):
That really did a lot of.
There we go.
Stress.
Yeah.
But as far as categories, uh,there's marketing travel,
travel, travel is consideredlike a mileage and nope.
So like, if you're going toconferences or things like that,
taking flights, that's the, youknow, those are all deductible
expenses as long as they'rerelated to, to what you
do to, to earning money.
So really any expense that youincur.
(35:48):
That you can, you know, relateback to generating revenue
for you.
That's what a business expensesat, you know, at it's in its
simplest form.
Yep.
Okay.
So Tony Robbins and likeDominican Republic or, you know,
if Tony Robbins is going to do aseminar in the Dominican
Republic, he's writing off hisflight.
Yeah.
(36:08):
Oh, you too.
Yeah.
You too.
Yes.
If you're going to a summit.
I mean, it's motivational, likesales.
Yeah.
It's related.
Yeah.
Yup.
So the way that works toois, you know, you can mix
vacations into that too.
So if you were to go to hisconference, your flights
would be deductible.
You know, while you were meals,while you were there at the
(36:30):
conference would be deductible.
If you stayed extra days to,you know, see the Island or
whatever.
Those excursions and thingslike that would not be
deductible.
Um, so you would have to carvethose things out.
But, you know, you can, youcan get the cost in the hotel.
Um, is there a limit on how muchI can eat?
It has to be, um, reasonable.
(36:52):
Yes.
Okay.
Yeah, so they don't, if you haveextravagant expenses, the
government would, you know, theIRS would throw those out
if they were, you know, ifthey were told it.
And if you got like a maybebusiness opportunity and you
took people out to eat onthe trip, that's covered.
That's, that would be adeductible business expense.
Yep.
Nice.
Okay.
Yep.
Uh, what if you're nottraveling?
(37:14):
And you're having a meetingwith a client who just, you
closed a deal, a big deal.
That's so meals and mealswould be 50 percent deductible.
Entertainment is no longerdeductible under the current
tax law.
So they made a change.
Um, before if you had, you know,season tickets to sporting
events, things like that, golfmemberships used to be able to
(37:36):
write off, which you no longercan.
If you go to a sportingevent with a client.
It's not the tickets aren'tdeductible, but if you're
there and spend, you know,a hundred bucks on food and
beverage, that's 50 percentdeductible.
So you can still carve outthe meals at the entertainment
when they're 50%, but theentertainment is no longer
deductible.
(37:57):
Okay.
No longer fully deductible.
Like it used to be correct.
You think this, uh,administration's going to change
that?
Something will change, um,overall because the tax laws
expire at the end of the Oh,um, so.
From the changes that weremade in 2018, they were 2018
through 25.
(38:17):
So they expire at the end of 25and we're going to have probably
something new and different,you know, for next year, won't
probably find out till theend of the year, they're
going to tell us that theycan't go home for Christmas
until they finalize the billand.
They're gonna, you know, anyrumors of what it could be?
Uh, not anything at this point.
(38:37):
It's so early.
It's whatever they say now isdefinitely not going to be what
the end result is.
Um, but yeah, they're gonna goback and forth right to
the final hour.
Um, so they end up concedingthings and we will have whatever
the final bill is probably inDecember at some point.
Okay.
So business meeting with fellowagents, uh, 50%.
(39:01):
Correct.
Uh, what if I take everybodyout for a team meeting at a,
uh, hall?
Uh, so that would be 50 percentas well.
Okay.
What scenario would it be?
100% So, it would have tobe a 100 percent deductible,
so meals, excuse me, meals whileyou're traveling are 100 percent
(39:24):
deductible.
Okay, that's the only, yeah.
Okay, so 50 percent whether Itake one.
So, yeah, I believe you cando like a company party.
If you're doing dinnersand things like that, that would
be 50%, but if you did like aChristmas party or a holiday
party, we could deduct that.
Okay, holiday party and I boughtcookies.
Yeah, yeah.
Okay.
Sure.
Or had, uh, Subway bring little,okay, but not sit down at a
(39:48):
restaurant.
Sure, it would have to be,it'd have to be like a holiday
party.
Yeah, not like, uh, not goingout to a restaurant.
Okay.
Sales meeting once a month.
Sales meeting once a month.
Yeah, that's 100.
Yeah.
Cool.
Wow.
Goodness.
You don't get stressed out withthis stuff?
No.
(40:09):
No.
I'm already stressed out.
Yeah.
This is like a lot of.
Yeah.
You have to keep up withall these rules and.
And try to be creative.
And I've seen the spreadsheetsthat you've had.
Like, you're like, okay, thisis one scenario.
This is another scenario.
See how this is better.
And I'm like, yeah, I don'tstress about much of my life.
So.
Can I see our initial guy?
(40:31):
Yeah.
Yup.
Yeah.
So, before we end, I justwant to ask you, because
everybody's curious about this.
Alright.
When's the best time duringtax, tax season?
Yeah.
That the accountant is not Asbusy, not as busy.
I mean, you're busy the wholetime.
(40:52):
I know you like, so Januaryis eases into it.
Cause you know, not everyonehas tax forms out yet, but
now I'm kind of gettingprepared, some 10 99 start
coming in, things like that.
Some of the businesses that I dobookkeeping for try to get ahead
there, but no, the best time isafter tax season.
But probably not April 16th,because I'm not going to answer
(41:14):
my phone that day.
Take the day off.
Yeah, I'll probably take thatday off.
Good.
But right after that, onceMay hits, yeah, that's probably
a good time to.
May, okay.
Yeah.
Okay.
Yeah.
And then you have the corp,corporate, uh, tax.
So there's the, yeah.
So, so, uh, the March 15th is adeadline for partnerships as
corporations.
(41:35):
April 15th is the deadline forpersonal returns and C corps.
If you extend the businessreturns or the individuals,
it's a six month extension.
So there's another deadlinefor me in September and October.
Not as crazy as the Marchand April deadlines, but yeah,
if the returns that are onextension, uh, are due in
September and October.
(41:56):
And the extension is a extensionof time to file, not an
extension of time to pay.
So if there's tax due, it's dueby April 15th.
So you have to predict how muchyou owe.
Sometimes.
Yeah.
And sometimes you havean idea or you try to cover what
you think it's going to be.
And, you know, hopefully you'reclose, but you can be as
close as whatever estimatesthat you get from the client
(42:16):
at that point.
Yeah.
Awesome.
So Dan, how do real estateagents and others find you?
Tucker Lucas.
com is the email address.
My info is on there.
You can shoot me an email,give me a call.
We'll be happy to help talk youthrough whatever situations
you get or you have, um,and make sure that we are a
good fit for each other.
And if we are, we move forward.
(42:38):
If not, I, uh, Can probablyhelp you out with who you
should be working with if it'snot me.
So very honest down to earthperson.
And, uh, if it's a good fit,it is, if not, I'll let you
know and give you an idea of whowould be a good fit for you.
So.
Awesome.
Cool.
Yeah.
Thank you very much.
Alright, thanks.
Thanks for stopping by.
Thank you.
See you soon.
Appreciate it.
My has got a squad.
(42:59):
We all own this zone in-househelp.
So they ain't doing it alone.
They focus on clients.
Negotiating win while the backends.
Handman, that's how we spend ahand them business.
Watch 'em all climb.
So I've gotten people'sQuickBooks files that thought
(00:03):
they were a disaster, but whenI get in there, it actually made
sense and I could use it.
I've had other people sayI'm really good at QuickBooks.
I tie out everything out andthen I go and they have like
negative cash or somethingcrazy that way out of whack.
Travel Travel is consideredlike.
Uh mileage and nope.
So like if you're going toconferences or things like that
(00:24):
taking flights That's thing, youknow Those are all deductible
expenses as long as they'rerelated to to what you do to
earning money And what happenswith the s corp is that you
know, say you have a hundredthousand dollars of profit As
a Schedule C, you would pay selfemployment tax on the 100,
000, which is 15, 000 plus.
As a S Corp, if we did itretroactively, you would turn
(00:47):
that same 100, 000 of selfemployment income into 100,
000 of business income, um, andthere's no self employment
tax on business income.
(01:09):
Welcome, everybody.
I'm Kamil Sargi, your host ofJust Two Minutes.
And today I have Dan here.
Dan, you want to tell us aboutyourself?
How you doing?
I am, uh, my name is Dan Tucker.
I own a tax and accountingfirm in Johnston, work with
small businesses, um, onbookkeeping, tax preparation,
tax planning, you know, anytype of financial needs for
(01:31):
the small businesses.
I'm excited to have Danhere today because we're going
to talk about real estateand how He helps real estate
agents set up their business.
And also I'm wearing the Johnsonand Wales, uh, socks today.
Cause I went to Johnsonand Wales and so did Dan.
No, sorry.
(01:55):
That was a roadie ram.
Oh, you all right?
Yeah.
Okay.
Sorry guys.
So I'm wearing the sock, thesesocks to represent Johnson
and Wales.
I went to Johnson and Wales.
My daughter goes there.
J.
Woo.
Wildcats.
Wildcats.
Yeah.
Brody.
Brody.
Brody for me, though.
(02:17):
It's weird because my son goesto URI.
Yeah.
My daughter goes to JohnsonWales.
Yeah.
So it's kind of like, you know,like we're brother and sister.
Close.
All right.
So Dan, you're here today.
Not just to talk about realestate, but really for the
just two minutes.
Questions.
All right.
Let's hear them.
All right.
So my timer over here.
(02:39):
Two minutes.
Are you ready for thesequestions?
Yeah, let's do it.
Okay.
And go.
So, when did you go to URI, notJohnson Wales?
I went to URI to play baseball,basically.
And then, you know, secondary,I got an education.
But realized quickly thatthat was really, The primary
(03:00):
because I, uh, even baseballwas not a career choice
that I was able to pursue.
Yeah.
But yeah, that was mostly,it was, you know, athletic
related at the time.
Okay.
Uh, but I mean, if JohnsonWales was the only school that
offered it, would you go there?
Sure.
I actually looked at JohnsonWales to be honest.
(03:20):
Yeah.
But I did not end up attending.
Yeah.
Also, another question is howcome, like, They came up
with they took the letters right?
Yep, and then they put liketwo lines And now that's the
dollar.
Yeah.
Why, why'd they do that?
I really have absolutely no cluewhy they, why or who made
the dollar sign.
(03:41):
Yeah.
I'm assuming something to dowith the letter S.
Like, something that startswith S.
Like, I don't know.
Um, It could be, yeah.
What's your favorite chips?
Favorite chip?
I'm very plain, so I want mychip to taste like a chip,
so I would probably just saylike a regular plain or ridged
potato chip.
But yeah, like I don't wantmy chips to be McDonald's
(04:03):
cheeseburger, ever, you know.
If I want to taste a McDonald'scheeseburger, I'd go for a
McDonald's cheeseburger, not achip that tastes like a bar
a chip.
So like barbecue chips arenot for me, those kind of
things, no.
Okay.
It's kind of plain.
If I put you in the kitchen.
And give you everything to makea dish.
What's, what's your favorite,like, what's your best dish that
you can make?
(04:23):
Oh, that I would makepersonally?
There's not much.
I would probably heat upa chicken patty and make a pasta
side.
Yeah.
I married well for that. Oh man.
Alright.
That's great.
Oh goodness.
What'd you think of thequestions?
(04:45):
Great.
Yeah.
You like that setup?
Sure.
That I did with the socks?
Yeah, you did that on purpose.
Yeah.
Yeah.
I knew you went to Johnson.
That's who you are.
Yeah.
No, talk about it.
. Oh, man.
Okay, cool.
So Dan, you are an accountant.
You help people.
Accounting, you help mepersonally, you help gold door.
(05:07):
So.
There's different ways forpeople, real estate agents
to set up their business.
There's like sole proprietor,there's a S Corp LLC, all this
stuff.
So what, if you met with a,an agent, like how do you
figure out what, um, so settingup an LLC gives you some
separate.
(05:27):
Protection for liabilitypurposes, but in regards to
the taxes, it's really theirincome kind of gives us
an idea of what to do based onhow much you're profiting.
You know, there's situationswhere you want to turn yourself
into an S corp so you cansave some money on the self
employment taxes.
You know, when you're a soleLLC, you file your taxes on
(05:50):
schedule C and you know, theincome on that schedule C
is subject to It's a selfemployment tax, which is the
typical tax that people seetaken out of their paychecks
when they're getting a W 2.
So it's the Social Security andMedicare taxes.
So there's just ways to savesome money there when your
income gets into the 60, range.
You know, it makes sense tomake the switch at that point,
(06:12):
really.
You know, with the conversationabout where you're projected
to keep going to.
Yeah, because I'm assumingthere's so many different
scenarios and things.
To make that decision.
Yeah.
Yup.
So, you know, there's otherthings that you can do in
terms of retirementcontributions where you can save
some tax dollars, but that'sreally a separate issue because
(06:33):
you know, if you're filing aschedule C, you make retiring
contributions, you getdeduction, you know, of your
income, but it's, you're notreducing your self employment
tax.
You're not getting a deduction,you know, for your self
employment income and that's thesituation.
You know, like I said, theincome is the driving factor
with, uh, a conversation aboutwhere you project to go and you
(06:53):
know, what your plan is movingforward.
Um, if you have one goodyear, it's not always
necessarily the best idea to doit because there are, you know,
additional costs in becomingan S corp and in registering
with the state, but you know,it makes sense to absorb those
costs when your income's highenough to grab enough tax
savings to make it worth it.
Okay.
It.
(07:14):
Someone starts off in realestate, does maybe one, two
transactions the first year.
Probably not.
So they're, they're probablynot going to need that type
of tax planning, but youknow, it's also a good idea
to get ahead of what youneed to be keeping.
Track of at that point.
So you can get into some goodhabits before you end up getting
(07:37):
very busy where it's tougherto create those good habits.
If you're already doing thatbefore you really, you know,
start crushing it or bringingin lots of money, it just
makes that transition easier.
And it gives you, you alwayshave a, the knowledge of where
you stand throughout the year.
So it makes it easier to taxplan and do things like that
as well.
Okay.
Yeah.
As far as the agents, like, youknow, very simple.
(08:00):
Like we have.
The income, we have theexpenses, is there expenses
that are only valid for thesole?
Maybe we should talk about thedifference of like the sole
proprietor versus the, youtalked about LLC.
So in terms of collectingyour That data and financial
information, it doesn't reallymake a difference if you're
(08:22):
an LLC or you're, uh, excuseme, an S Corp or just an LLC, so
filing a Schedule C, theexpenses really get shown the
same way.
So that's why, you know, I, likeI said, it's a good idea to get,
to get ahead of the gameand start tracking those things
correctly.
So real estate agents, the bigexpenses is usually their auto.
So you want to make sure you'retracking your mileage.
You know, that includes anymileage going to open houses,
(08:45):
showings.
If you're taking continuingeducation classes, you know,
all those things wouldfall under business mileage
and you get a deduction basedoff of what that mileage is.
Cell phone is another one thatyou can carve out.
You have to have the businessand personal use because there's
always a Mick, but you can carveout the business use of
your cell phone and takethat as a direction to home
(09:06):
office is another one as well.
But yeah, there's differentthings to carve out that we
make sure we're, we're gettingall the deductions that we
can get.
So you're not paying, you know,too much tax on your tax return.
So with a sole proprietor,that's just person would know.
Yeah.
So a sole proprietor would beanybody that just wanted to
start a business or, youknow, even a real estate agent
(09:27):
to be specific that juststarts in year one, they're
really a sole proprietor unlessthey register an LLC, then they
would still be in business foryourself.
Okay.
You would be a single member LLCat that point.
But there's, you know, there'sfor federal purposes, there's no
separate entity.
It all goes on your personalreturn.
And then, you know, the nextstep above that would be to
register as an S corp andyou have to file a selection,
(09:51):
um, in order to do that.
And they do allow you to goback three years.
So if there's people that hadsome good years and were
scared to do their tax Andhadn't done them yet.
There's form 2553 is theform you use to elect the
S to make the S election.
You can file that as longas there hasn't been any returns
filed in the past, you know,in those, in that three year
(10:11):
block, you can make the electionto go back.
Yeah.
So there's some.
Avenues to save people moneythat think they're stuck and,
you know, we're scared to go andfile their returns because
they have a 1099 for 100, 000 orsomething like that.
Yeah, yeah.
Yep.
The sole proprietor is necessaryor can they just do it on
their own?
Yeah, so a sole proprietorwould.
(10:32):
1099.
Yeah.
So the only difference reallyis, is a single member LLC is
registered with the state wherea sole proprietor, you know,
is just.
Doing business, you know, asthey go, there's no other
difference outside of that.
Okay, so tell me more about theelectronic EIN number.
Okay, yep, so you can What'sit used to like, what's it
(10:54):
used to?
Yeah, so an EIN is basicallya social security number for a
business.
So instead of So a soleproprietor can get an EIN.
Yeah.
So instead of having to use yoursocial to file different
forms, you get this EIN numberfrom the IRS and that's
the number that you use onyour form.
So if you're a single member,excuse me, if you're a sole
(11:15):
proprietor, When you go tothe IRS website to register
for an EIN, you just selectone of the choices is that
you're a sole proprietor.
The other choices are LLC or youcan be a corporation, you can
be a non profit.
There's a list of different,you know, reasons why you
need the EIN and you selectit at that point.
Yep.
Okay.
So, and you do need a separateEIN if you were previously
(11:38):
registered as a sole proprietorand you end up for whatever
reason, income tax purposes orliability purposes, if you
register an LLC subsequentto that, you need to go ahead
and get a new EIN as well.
But yeah, each EIN is uniqueto that entity type.
How much is it to get an EIN?
It's free.
You just go on the IRS website,irs.
(11:58):
gov.
There's a little toggle buttonto get an EIN and it takes maybe
five or 10 minutes to goand get.
I wonder why they make it free.
I don't know.
Oh, so they can tax you.
Yeah.
It all comes down to tax.
They just want to track it all.
Yeah.
They want to track it.
Nice.
Okay.
With the EIN, uh, you're,you can open up.
(12:21):
Bank accounts.
Yep.
Yeah.
So typically the bank is goingto need you to have some type of
documentation for the businessto open a business bank account.
So they'll need, they usuallyask for the EIN letter or
they'll go right to the statewebsite to see that you're
registered with the secretaryof state.
So you need those thingsin order to open a business bank
account.
You can open a bank account inyour own name with a DBA.
(12:43):
Without doing that.
But if you want it in thebusiness name, you need correct
documentation for them to dothat.
Okay.
What about w nine?
So w nine is, um, so it wouldbe for if you have contractors
working for you, they would haveto fill that out.
So you could issue a 10 99 tothem at the end of the year.
So I guess in, you know, itwould be more for the broker
(13:06):
issuing it to the agents.
But I guess technically, if anagent had Okay.
An assistant helping them out orsomething like that.
And they were paying somebodychecks to help them out.
If you pay any unincorporatedperson or an unincorporated
business over 600 in a calendaryear, you're required to issue
them a 10, 99, 600, 600.
Sorry.
Sorry.
Yeah.
Nope.
(13:26):
Nope.
Nope.
Damn.
Where's that job?
Yeah.
Right.
I don't know where that oneis either.
Yeah.
Yeah.
Okay.
I have agents here who they wantme to pay them directly.
So I need, you know, the 10nights to fill out that form.
I also have agents whowant me to pay their corporation
or LLC directly.
So they give me a W 9.
Same thing.
So W 9 either an individual orbusiness would, you know,
(13:50):
would fill those out.
Nice.
As far as, uh, you're talkingabout.
Auto, like having, payingfor your mileage and all that.
What's the, cause real estateagents, we drive a lot.
We drive all over the place.
Yes.
So what's the, is it benefitor is it smart to.
(14:14):
Buy under the corporationor is it, um, so it depends
on where you are in yourdevelopment.
So, you know, to start off,you're not gonna, you're
probably not necessary to buy,uh, you know, the vehicle
through the LLC because atthe end of the day, you're going
to pick up your business mileageanyway, as part of the return,
(14:35):
but once you register with theLLC, you end up paying.
Commercial rates on insuranceand things like that.
So until you really needto, it's going to increase
your costs for thingsunnecessarily, because we're
still going to deduct it at theend of the day.
Anyway, but you know, once yourbusiness is healthy and you're,
you know, it makes sense foryou to turn into the S Corp
and put yourself on payrolland you know, you're making
some good money, you know, thenyou can go ahead and LLC.
(14:59):
Okay.
To buy things under thebusiness.
Is that EIN what they lookfor as far as credit?
Yup.
So they're going to look, butthey're, they're going to
pull your Personal creditas well, because, you know, they
typically sometimes, or, youknow, on occasion, you have
to sign personally for them todepending on how much history
they can, they, the history,credit history that the business
(15:20):
has.
Yeah.
Okay.
Interesting.
So as far as buying the caror owning it and doing the
mileage and all that is twoseparate, you know, it's
completely depends on what you.
Assess like how they exactly.
Yup.
Yup.
You know, if there's otherpeople in your business that are
going to be using the vehicletoo, then you definitely want to
get it, you know, purchasedwith the business registered
(15:42):
with the business.
But if it's just you drivingto open houses and things like
that, it's probably, you know,it's just going to cost you
a couple of extra dollars andit's not benefiting you that
much.
There's nothing really differentabout it.
Yeah.
Cause again, we're stilltaking the deduction on your
return.
So you're still gettingwhatever.
Business use of the car thatyou're using.
(16:03):
So my car is clean, you know,on the outside, like who's,
but what if I slap pictureof myself on the car made
it ugly?
No, uh, it made it, you know,advertising.
Yeah, of course.
What's up with that?
So, yeah.
So if you're using your vehiclea hundred percent for business,
then you can deduct a hundredpercent of the cost, you know,
(16:23):
maintain and use that vehicle.
Yup.
So if you're advertising on yourvehicle with the, you know.
Picture yourself.
If that's going to bring yousome more business, you go
get them.
Okay.
You, you said you have to driveyour car a hundred percent
business related.
So you don't have to, butin order to get a, you know,
in order to take a hundredpercent of your cost to run the
(16:43):
vehicle, you have to use ita hundred percent for business.
What percentage of the carhas to be advertisement?
The whole thing.
Okay.
Yeah.
Interesting.
So, cause I see that a lot andI wonder like, cause sometimes,
I mean, you can't.
Garrett, like, okay, use thisvehicle a hundred percent for
business if it's not wrapped,but, oh, shoot, someone got
(17:06):
injured a family member.
I have to go pick him up,bring him to the hospital.
Now it's like, all right, solike 98 percent used.
Yep.
Can I get that silly?
So if you, it depends onhow silly you want to get.
So if you want to be that,minute details, then yeah,
you know, at the end of theday, if you were to get audited,
(17:27):
the IRS looks for mileagelogs to proof of your business
mileage.
So the mileage log is supposedto include the purpose of
the trip, uh, the beginning andstarting points and how many
miles, you know, we're driven onthe trip.
If you keep track of thingsfor, I believe it's three
months, the IRS will let youextrapolate that over a year
and use that as evidence too.
(17:48):
But, you know, if it won't makesense for someone that is
driving, you know, so manymiles one month, more than next
month, if you, you know, doingthose things, you're probably
better off trying to track thatstuff.
So, you know, exactly how manymiles you're driving.
Yeah.
As far as like home home office,what.
Doesn't, what's not partof that?
So the home office can be twodifferent ways.
(18:12):
You can take the simplifiedmethod, which takes the square
footage of the home office tomultiply by five.
And that's your deduction.
Or you can multiply by fiveto, to what?
So the, I believe it's.
300 square feet, the deduction.
Oh, there's an amount.
There's an amount.
There's a set amount per squarefoot that you get.
(18:34):
Oh, wow.
Just like mileage every year.
They change for the home office.
Yup.
Okay.
They don't change that everyyear.
No, no.
And that's just the simplifiedmethod.
The other method is.
To carve out your actualexpenses, if it's rent or
mortgage taxes, utilities,and you take the percentage
of the home office.
So if the home office isone room of your house and
(18:56):
it makes up 10 percent of yourhouse, you know, calculate
all those taxes and the interestand utilities, and you get 10
percent of those as a deduction.
Interesting.
You know, if it, sometimesit doesn't usually create
that much different of adeduction, but it's really
situation by situation.
Yeah.
Okay.
I mean, can they, if they have agarage that they want to
(19:18):
build out as their officeexpenses to, yeah, so actually
that is sometimes can be agood idea for you because
you can actually pay rent.
To yourself for that garage,and you can save on self
employment tax.
So there's clients that willrent out their own garage from
themselves, and you rent itout for a thousand dollars
(19:39):
a month.
And you still have to reportthat 12, 000 as rental income,
but you're reducing your selfemployment income.
So in that situation, you'resaving self employment tax on,
you know, the 12, 000 ofrent that you paid.
Wow.
I love it.
So people like they comeinto your office and they're
like, So I have this garage andthen boom, boom, let's turn
(20:01):
it into an office.
You're like, okay, how can wemake that happen?
Yeah, that's amazing.
Yeah, that's cool.
It's, I mean, that's why,that's why you do it.
That's why I have to use myaccount.
That's, that's really good.
So if the garage, if you needto bring contractors in to
build it out, is that it?
So all that costs would go toright off against the business,
(20:23):
any build out type of thingsthat are to the foundation
of the building, they haveto get depreciated.
So you don't take them in all inone year, it'd be a commercial
building.
So it's 39 years.
You have life of the assetbasically, so you can deduct
it over 39 years.
So it's not a giant deductionevery year, but it still helps.
Can reduce your tax.
(20:44):
Okay.
As far as like any other crazyexpenses that you've seen,
what's, uh, What's other crazytypes of expenses for real
estate agents?
I don't know that I have anygood real estate agent
deductions.
It's very basic.
Cause yeah, it's, it's,it's, you know, the mileage,
(21:05):
the auto is usually the biggestdeduction for you guys, but
yeah, I don't have any crazydeduction stories.
Okay.
If they were to hire.
Like you were saying an admin,do they have to like, and
they want to hire them as anemployee?
Yep.
Do they have to switchtheir sole proprietor?
(21:26):
They don't, they don't, theydon't.
So they can do that as well.
So, so you can be a soleproprietor or a single
member LLC and run a payrollfor other people.
You just can't run a payroll foryourself unless you're an
escort.
So if you want an assistant,they're going to be an employee.
You can go ahead and geta payroll company or try
to do the payroll yourselfor work with an accountant
and you can run a payrollfor that person.
(21:49):
Do you get, you can go andget the EIN like we talked
about on the IRS website.
You got to register the stateto run payroll, employer
account, and then registerwith the IRS for the EFPTS,
which is the federal depositsystem.
But yeah, you, you can runa payroll for employees,
just not yourself as a singlemember LLC or a sole property.
(22:09):
Okay.
How about suits?
Suits buying suits.
And so no, actually suits don'treally fall into a deductible
item.
So because they have multipurpose use, like you can
wear your suit to a weddingor out to dinner, you can't
take those things as adeduction.
It would have to be specificuniform.
(22:31):
You can get away with doinggold door.
Apparel would be deductiblebecause it's advertising.
We got that way.
There you go.
Gold door apparel.
Go get your gold door apparel.
Wow.
But yeah, suits like that.
So, you know, for example,myself, if I wore a suit
to work.
I'm using it for work, butbecause I can wear it to a
wedding or dinner, it's notanything that's deductible.
(22:51):
Nurses, scrubs, things like thatwould be deductible because
it's a uniform and you're onlywearing it for business
purposes.
Steel toe work boots forlaborers or things like that
are all a hundred percentdeductible, but warm weather
gear is a gray area.
Probably would fall under notdeductible too.
Wow.
So dress shirts with embroidery,gold or realty.
(23:14):
We could fit those in the box.
Not a regular dress dress shirt.
Okay.
How about like dry cleaning?
It's all personal expense.
Okay.
Cause I mean, you could, unlessyou're dry cleaning dirty.
Yup.
Well, if you're dry cleaningyour scrubs, that's one
thing, but yeah, dry cleaninga suit is, yeah, it wouldn't
fit in the box because how doyou tell like, Oh no, I got
(23:36):
it dirty at work.
It wasn't when I was at thisparty.
Right.
Yeah.
They don't care anyway.
Yeah.
I'm trying to think of like.
Shoes that are You know, butwe can't really, it's not Nike.
I think you can design, you cancustomize.
(23:56):
You can, you can go door.
You could, could it dependson how aggressive your account
wants to be when you presentthem that expense.
Oh man.
So we talked about expenses.
I think we covered that.
Yup.
Right.
Let's talk about income.
(24:18):
Income.
Okay.
Income.
So with income, again, youlook at that as, I mean, mostly
like as far as a broker,I'm paying them as a 10 99
or paying them to theirbusiness.
So If they're like, how do theychoose if they're going to,
(24:41):
I think we, we talked about whattype of entity they're going
to be.
Yeah.
Yeah.
So it depends on, you know,first we start with whatever
your 10 99 is for, cause that'sgoing to be your gross receipts,
your top line.
And then we need to, Carveout and figure out what your
deductions are for the thingsthat we talked about, the
auto and the, you know, cellphone, any type of continuing
education, classes, advertising,business cards, all those
(25:04):
types of things, signage for thehomes.
I don't know if the agents areresponsible for that themselves,
but whatever staging for thingslike for the open houses,
all those things.
Come off.
We come up with whateveryour net profit is.
Um, net income.
And then at that point, ifit's 20, 30 grand, we're
probably just going to leaveyou as a sole prop and file the
(25:25):
schedule.
See, and you pay a little bitof tax.
It's probably nothing crazy,but when you get into the
50, range, we'll starthaving the conversation about,
Hey, you might want to becomean escort.
We can save you some selfemployment tax.
You know, what's your yeargoing to look like moving
forward into next year andafter.
If you're already at 000, it'salmost a no brainer at that
(25:49):
point to do it.
And what happens with the S Corpis that, you know, say you
have 100, 000 of profit asa Schedule C, you would pay self
employment tax on the 100,000, which is 15, 000 plus.
As S Corp, if we Did itretroactively you would turn
that same 100, 000 of selfemployment income into 100,
(26:10):
000 of business income Andthere's no self employment
tax on business income.
So, you know right off thebat there you'd be saving 15,
000 but the caveat is onceyou're an S Corp, you have
to pay yourself reasonablecompensation Which means that
you have to run a payroll foryourself and that can vary
Depending on how much profityou make.
But we want to play with thatnumber to make sure we don't run
(26:31):
too much through payroll,because if you turn yourself
into an S Corp and then payyourself all your profits
through payroll, you justdefeated the purpose of creating
the S Corp.
So it's got to be a steadyamount of money.
So big picture, like it doesn'tnecessarily have to be steady
as in I'm making X a week orX a month.
But if we look at.
(26:51):
Year as you know, the taxreturn or tax filing periods.
Therefore, you know, the Januarythrough December timeframe.
So we're more concerned whereyou are for that timeframe,
but if it makes sense todo the S corp, we run the
payroll kind of as you're makingyour money, if that makes sense,
you, you know, monthly orquarterly is sufficient.
To run a payroll for yourselfat that point, because at
(27:12):
that point you're running thepayroll because you're an S corp
owner and you have to do it.
It's not like you're havingemployees that you need to
pay week to week, becauseif you're doing it right, you're
still should have profitleft over.
That is still your money youtake as profit distributions
too.
So when you're an S corp,the way you pull money from the
business is through payrolland profit distributions
(27:34):
as well.
Okay, and C Corp, uh, C Corpis its own separate entity.
So in order to get money outof the C Corp, you would have
to pay payroll.
Or dividends, which is a whole,whole, that might be a whole
separate episode.
Okay.
So it's complicated.
(27:54):
Yes.
So if, if an agent alreadystarted receiving money to
themselves for the year,it's easy for you to switch them
over to whatever categorythey need to be in.
Yeah.
Yup.
Yup.
Yeah.
So like, again, like I said, theS corp, it gives you, you
have the ability to goback three years, three years.
So yeah, if there's someonethat came in and still needs to
do their, you know, 23 taxreturn, you know, there's still
(28:18):
things that we can do goingbackwards to make it.
So they don't get crushedas much as they could, you
know, in a different scenario,because again, we wouldn't
even be changing how much theirincome isn't at that point.
We would just be changingthe nature of their income and
what line it goes on the taxreturn, which can save you a
significant tax dollarssometimes.
(28:40):
What do you think agents mostlyforget about?
Like declaring as far as likeexpenses, um, kind of thing
that it's obvious to see.
Yeah.
So I would say carving out thecell phone.
Um, people don't always think ofauto is usually a big thing.
Internet, you know, people,yeah.
So that home internet wouldfall under the home office
(29:01):
too, if you were taking a homeoffice, so it all goes together.
Yeah, yeah, yeah.
So as far as like mileage,how do people.
What's the best way to trackthat?
Oh, there's apps that are outthere that you can download.
Some people just use Exceland you know, you, you, some
people still, I have peoplethat I get handwritten
notes from at this point, butit all, you know, it's all
(29:24):
personal preference andeveryone's brain works
differently.
So however your brain works,that's how you should compile
that, that, that information.
Yeah.
Wow.
So you mentioned Excel.
And other ways that people aretracking, if someone bought
QuickBooks and has all theirstuff in there versus someone
with everything in Excel, likehere's all my expenses or versus
(29:48):
someone has QuickBooks, they putall that stuff in there.
Which one do you prefer orwhich one is more of pain?
It really depends because eitherone could be super clean or
all over the place.
So I've gotten people'sQuickBooks files that thought
they were a disaster.
But when I get in there, itactually made sense.
And I could use it.
(30:09):
I've had other people say, I'mreally good at QuickBooks.
I tie out everything out.
And then I go and they have likenegative cash or something
crazy that way out of whack.
Same thing for Excel.
If you're.
Tracking everything in Exceland I can tie out your sheets
to bank statements and itall flows and makes sense.
You know, it's, it's easy towork with.
Someone could give me anExcel that is just a hodgepodge
(30:31):
of numbers and it doesn't makesense.
And then I have to go and eitherask them to redo it or,
you know, do the legwork andsummarize it all, you know,
myself.
Yeah, I think Excel is probablythe easiest way if I were to
do it.
I would use Excel.
Especially for the mileage.
Yep.
Yep.
Mileage and credit card anddownload it as an Excel file
(30:52):
and just put it in and justcategorize it that way.
Yep.
Most of the accounting softwaresat this point have download
features and they memorizetransactions and things
like that.
So, you know, sometimes you gotto do a little bit of legwork in
the first few months to geteverything set up.
But there's, you know, there'sways to create efficiencies for
yourself.
Using the accounting software.
(31:13):
But like I said, Excel workswonders too with the formulas.
And then I work with Excelfiles, QuickBooks files,
you know, different types ofaccounting softwares.
Yeah.
Yeah.
I love Excel, but I'm notthat kid who has all their
expenses and everything in therefor the business.
(31:34):
Mm-hmm. I have to use QuickBooksand I've been using it for.
A few years.
Sure.
And, uh, I mean, you've seenme with QuickBooks.
Why is it so complicated?
Yeah, there's just a lotof moving parts.
I mean, they, from a distance,you look at QuickBooks
and you're like, all right, thisseems easy because it downloads
(31:55):
everything.
You start using it.
You're like, wow, reconcile,like all these different things.
Oh my God.
Yeah.
There's some quirks to it todownload the transactions.
Sometimes it will double upon things, but like I said, if
you get a good base and getit set up correctly ahead of
time, or when you start beforeyou're, you're doing, you know,
(32:15):
hundreds or thousands oftransactions, you can get
the, you know, you can geteverything in place where
it's, it's coming over cleanfrom the download to, you know,
But yeah, it's, it can becomplicated when you get into,
uh, you know, invoicing andreceiving payments, running your
receivables or payables throughQuickBooks.
Some people try to get alittle too fancy and they end
up having to answer thingsmultiple times because they're
(32:37):
setting up it as a payable or areceivable.
Wow.
So, Oh man.
Yeah.
I just wish that they made itsimpler.
I mean, they tried, right?
They try, they try.
So, but like, you know, I bet itwouldn't be simple for me to
go and try and sell a houseeither, right?
So that's why I'll teach youthough.
There we go.
I'll teach you.
I don't know who it wouldbe harder for you to teach
(32:59):
me to sell a house or me toteach.
How many times have you told me?
That's what I mean.
I wouldn't be a one shot stopif I came to you to learn,
you know, learn the real estatebusiness.
Yeah.
Yeah, it would be multiple,you know, yeah, there's a lot to
learn.
Yeah, same thing.
So the tax code is everchanging.
(33:19):
So yeah, there's a lot to it.
But that's why, that's whywe barter services.
And there's, you know, alldifferent people in the world to
help each other out.
Right.
Yeah.
Yeah.
Anything else that I missedthat you think, uh, That
I should have mentioned?
No, I think, you know, just likeI said, getting ahead of your
tracking of, you know,income and expenses makes things
(33:39):
easier for you.
You know, you can do it goingbackwards.
But if I asked you, youknow, what you spent money on
last month or six monthsago, it's going to be a lot
easier to recall what, youknow, what the money was that
you spent on last month.
So if, if you.
Hold off on summarizingthings for yourself, people
end up forgetting about,you know, things that they
(34:00):
did or money that they spend.
So it's just when you havethe fresh mind, it's, you're
less likely to miss thingslike that.
And at the end of the day,you want to pay the right amount
of tax.
You don't want to pay thegovernment too much money
because they get, they gotenough besides from like
expenses and Excel spreadsheet.
So there's like.
That's great that you putall your stuff in a spreadsheet,
(34:21):
but now you have to categorizethem so that they go in
the right spots.
Yup.
Uh, before we talk aboutcategorizing, does it really
matter?
Can it just be like stuffto help my business run?
Yup.
So, so.
At the end of the day, notreally, you know, if you have a
business expense and it's,uh, an office expense or
(34:44):
if it's a utility, at theend of the day, it counts the
same, you know, on your taxreturn.
Yeah, what's the profit?
Yeah, exactly.
If it's in the wrong category,at the end of the day, there's
not anything that would changebecause it doesn't change
what your bottom line is.
Okay.
It's more, you know, if it's abusiness expense or personal
expense, those things, obviouslyyou're going to change
(35:05):
the bottom line, but.
Okay.
So if I mess up and putthe wrong category.
You're fine.
Yeah, I might catch itand fix it before I file your
return anyway, and youjust might never know, but
either way, it wouldn't matter.
Yeah.
As long as I'm puttingthe income right, the correctly
and oh my gosh.
Okay.
(35:26):
That really did a lot of.
There we go.
Stress.
Yeah.
But as far as categories, uh,there's marketing travel,
travel, travel is consideredlike a mileage and nope.
So like, if you're going toconferences or things like that,
taking flights, that's the, youknow, those are all deductible
expenses as long as they'rerelated to, to what you
do to, to earning money.
So really any expense that youincur.
(35:48):
That you can, you know, relateback to generating revenue
for you.
That's what a business expensesat, you know, at it's in its
simplest form.
Yep.
Okay.
So Tony Robbins and likeDominican Republic or, you know,
if Tony Robbins is going to do aseminar in the Dominican
Republic, he's writing off hisflight.
Yeah.
(36:08):
Oh, you too.
Yeah.
You too.
Yes.
If you're going to a summit.
I mean, it's motivational, likesales.
Yeah.
It's related.
Yeah.
Yup.
So the way that works toois, you know, you can mix
vacations into that too.
So if you were to go to hisconference, your flights
would be deductible.
You know, while you were meals,while you were there at the
(36:30):
conference would be deductible.
If you stayed extra days to,you know, see the Island or
whatever.
Those excursions and thingslike that would not be
deductible.
Um, so you would have to carvethose things out.
But, you know, you can, youcan get the cost in the hotel.
Um, is there a limit on how muchI can eat?
It has to be, um, reasonable.
(36:52):
Yes.
Okay.
Yeah, so they don't, if you haveextravagant expenses, the
government would, you know, theIRS would throw those out
if they were, you know, ifthey were told it.
And if you got like a maybebusiness opportunity and you
took people out to eat onthe trip, that's covered.
That's, that would be adeductible business expense.
Yep.
Nice.
Okay.
Yep.
Uh, what if you're nottraveling?
(37:14):
And you're having a meetingwith a client who just, you
closed a deal, a big deal.
That's so meals and mealswould be 50 percent deductible.
Entertainment is no longerdeductible under the current
tax law.
So they made a change.
Um, before if you had, you know,season tickets to sporting
events, things like that, golfmemberships used to be able to
(37:36):
write off, which you no longercan.
If you go to a sportingevent with a client.
It's not the tickets aren'tdeductible, but if you're
there and spend, you know,a hundred bucks on food and
beverage, that's 50 percentdeductible.
So you can still carve outthe meals at the entertainment
when they're 50%, but theentertainment is no longer
deductible.
(37:57):
Okay.
No longer fully deductible.
Like it used to be correct.
You think this, uh,administration's going to change
that?
Something will change, um,overall because the tax laws
expire at the end of the Oh,um, so.
From the changes that weremade in 2018, they were 2018
through 25.
(38:17):
So they expire at the end of 25and we're going to have probably
something new and different,you know, for next year, won't
probably find out till theend of the year, they're
going to tell us that theycan't go home for Christmas
until they finalize the billand.
They're gonna, you know, anyrumors of what it could be?
Uh, not anything at this point.
(38:37):
It's so early.
It's whatever they say now isdefinitely not going to be what
the end result is.
Um, but yeah, they're gonna goback and forth right to
the final hour.
Um, so they end up concedingthings and we will have whatever
the final bill is probably inDecember at some point.
Okay.
So business meeting with fellowagents, uh, 50%.
(39:01):
Correct.
Uh, what if I take everybodyout for a team meeting at a,
uh, hall?
Uh, so that would be 50 percentas well.
Okay.
What scenario would it be?
100% So, it would have tobe a 100 percent deductible,
so meals, excuse me, meals whileyou're traveling are 100 percent
(39:24):
deductible.
Okay, that's the only, yeah.
Okay, so 50 percent whether Itake one.
So, yeah, I believe you cando like a company party.
If you're doing dinnersand things like that, that would
be 50%, but if you did like aChristmas party or a holiday
party, we could deduct that.
Okay, holiday party and I boughtcookies.
Yeah, yeah.
Okay.
Sure.
Or had, uh, Subway bring little,okay, but not sit down at a
(39:48):
restaurant.
Sure, it would have to be,it'd have to be like a holiday
party.
Yeah, not like, uh, not goingout to a restaurant.
Okay.
Sales meeting once a month.
Sales meeting once a month.
Yeah, that's 100.
Yeah.
Cool.
Wow.
Goodness.
You don't get stressed out withthis stuff?
No.
(40:09):
No.
I'm already stressed out.
Yeah.
This is like a lot of.
Yeah.
You have to keep up withall these rules and.
And try to be creative.
And I've seen the spreadsheetsthat you've had.
Like, you're like, okay, thisis one scenario.
This is another scenario.
See how this is better.
And I'm like, yeah, I don'tstress about much of my life.
So.
Can I see our initial guy?
(40:31):
Yeah.
Yup.
Yeah.
So, before we end, I justwant to ask you, because
everybody's curious about this.
Alright.
When's the best time duringtax, tax season?
Yeah.
That the accountant is not Asbusy, not as busy.
I mean, you're busy the wholetime.
(40:52):
I know you like, so Januaryis eases into it.
Cause you know, not everyonehas tax forms out yet, but
now I'm kind of gettingprepared, some 10 99 start
coming in, things like that.
Some of the businesses that I dobookkeeping for try to get ahead
there, but no, the best time isafter tax season.
But probably not April 16th,because I'm not going to answer
(41:14):
my phone that day.
Take the day off.
Yeah, I'll probably take thatday off.
Good.
But right after that, onceMay hits, yeah, that's probably
a good time to.
May, okay.
Yeah.
Okay.
Yeah.
And then you have the corp,corporate, uh, tax.
So there's the, yeah.
So, so, uh, the March 15th is adeadline for partnerships as
corporations.
(41:35):
April 15th is the deadline forpersonal returns and C corps.
If you extend the businessreturns or the individuals,
it's a six month extension.
So there's another deadlinefor me in September and October.
Not as crazy as the Marchand April deadlines, but yeah,
if the returns that are onextension, uh, are due in
September and October.
(41:56):
And the extension is a extensionof time to file, not an
extension of time to pay.
So if there's tax due, it's dueby April 15th.
So you have to predict how muchyou owe.
Sometimes.
Yeah.
And sometimes you havean idea or you try to cover what
you think it's going to be.
And, you know, hopefully you'reclose, but you can be as
close as whatever estimatesthat you get from the client
(42:16):
at that point.
Yeah.
Awesome.
So Dan, how do real estateagents and others find you?
Tucker Lucas.
com is the email address.
My info is on there.
You can shoot me an email,give me a call.
We'll be happy to help talk youthrough whatever situations
you get or you have, um,and make sure that we are a
good fit for each other.
And if we are, we move forward.
(42:38):
If not, I, uh, Can probablyhelp you out with who you
should be working with if it'snot me.
So very honest down to earthperson.
And, uh, if it's a good fit,it is, if not, I'll let you
know and give you an idea of whowould be a good fit for you.
So.
Awesome.
Cool.
Yeah.
Thank you very much.
Alright, thanks.
Thanks for stopping by.
Thank you.
See you soon.
Appreciate it.
My has got a squad.
(42:59):
We all own this zone in-househelp.
So they ain't doing it alone.
They focus on clients.
Negotiating win while the backends.
Handman, that's how we spend ahand them business.
Watch 'em all climb.
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