03 Jun Why is tax strategy important?
As part of my CD of the month (for my Gold Members) I interview someone who has been important in my professional life – usually either a mentor or a student. Recently I interviewed someone that has been with me since the beginning – my personal accountant Warren Taryle.
Warren had some great words of wisdom about taxes, and I am happy to share this information with you.
First, Warren made it clear that not all accountants think the same and that not all of them understand the strategies that should be used when investing in real estate. While some tax firms may help out with tax preparation, not all can help you to develop a tax strategy. It’s like the difference between driving while looking in the rearview mirror or while looking forward.
To further his point, Warren told me about several points (which he calls “Wealth Factors”) that should be taken into account when forming any tax strategy: 1) Using the proper entities, 2) Taking advantage of deductions and 3) Tax-advantaged investing.
Wwhile the principles of making and managing money haven’t changed much over the past one hundred years, the specific methods used to do so go in and out of style. So if something hasn’t been working for us recently, instead of doing the same thing even more, why not sit back and examine the specific methods we are using to see if there is a better way.
This interview was a lot of fun, and I know that Warren has lots more information to share. If you would like to learn more about Warren and his ideas, visit the website www.jackscpa.com. There you can get a free report about the tax aspects of flipping real estate.