I think we’re far enough past the tax deadline that we can talk about what happened. In past years, we dreaded April 15th. Because it usually meant we were writing a big check. This year, not so much. What changed to make it this way? We started hanging out with our accountant more.
How many of you communicate with your accountant at any time other than when you’re filing your taxes? If the answer is “never”, then you’re probably leaving money on the table.
Right after tax season (and after our accountant has played a few rounds of golf to recover), we meet to go over last year and get an estimated tax amount for next year. Then we talk about different strategies that we are implementing or not, and create a plan for what I’m going to do during the year. Then we check in regularly to see whether we’re still adhering to that plan or whether anything has changed.
Since implementing that system, besides what I payroll taxes I haven’t had to pay anything additional. That’s the first time that’s ever happened in my 12 years in business. I would conservatively estimate that Louis has saved us well over $100k in income taxes.
As with all wealth building, it’s not about how much you make it’s how much you keep. Income taxes can take up to 25-40% of what you work hard to earn. Proper tax planning will keep that amount to a minimum.
If you want to talk more about how investing in real estate can provide you with significant tax benefits, let’s chat!