How the Wealthy Write Off Almost Anything

Did you know that over 90% of Americans end up overpaying their taxes each year? That's right, tens of billions of dollars go unclaimed due to a lack of knowledge or fear of the dreaded IRS. But what if there was a way to navigate the tax code with confidence, ensuring you keep more of your hard-earned money?  What if paying taxes is the penalty for not doing business properly?  What if there was a simple resolution that could remove your tax burdens for the rest of your life? Would it be worth your attention for the next 5 minutes?  

State of the Economy

The reality is, it’s very likely you can’t afford to NOT get the critical information that could help you maximize your business potential and master financial success. We’re talking about blowing up the roadblocks between you and the things you really care about. Like your business, better quality of life, and time with your family. Education for your children and grandchildren at the finest schools. The power to retire sooner, and better. And the power to create a fine legacy your descendants will cherish for generations.

So, are you ready for the truth?

Can you handle the truth? (laughs)

I’m joking, but seriously, most people prefer to be retold what they already believe whether it is true, or not.  Millions of business owners and investors pay billions in needless tax as a result of it.

So here’s some cold, hard facts:

1. “Every year, more than 2 million taxpayers overpay their income taxes—and we’re not talking about pocket change.”- David Ramsey 

2. 93% of business owners overpay their taxes – even those with high dollar CPAs. Too many tax advisors just don’t know or care about all the opportunities in the 70,000 page tax rules, and their clients pay dearly because of it. What does that mean for you? It means if you own a business, there’s a 93% chance you are bleeding needless family wealth by paying way too much tax. - Forbes

3. The Federal Government admits business owners overpay their taxes by $50 billion each year!

Do you suspect you could be one of the millions of Americans who needlessly overpay your taxes each and every year?  If you’re reading this, the odds are overwhelming you are! And this could be costing YOU thousands or millions in wasted personal wealth and lost family dreams.  So ask yourself. Do families like the Buffets, the Tesla-Musks, and the Amazon-Bezos have access to exceptional tax advice?

You bet they do.
Let’s take a look at a real America family business success story – Amazon.

In 2019, Amazon made 11.2 billion.
Amazon’s tax bill? $0.

In fact, it’s getting a tax refund of $129 million. That means it’s paying a -1 percent federal income tax rate.  Some call this corporate welfare, we call it smart tax advice.

Trust: The Only Principle that Matters

So what is it that we can share here that you have not already been made aware of over the course of your extensive career? Likely nothing.  We are sure you have heard that you can write-off almost anything, as long as it is for the right reasons.  If you have not heard that before, then this will be transformative information.  Assuming you are aware, but you are still overpaying on taxes, this article could be the answer to your money problems also.

A few signs you are paying more than you should in taxes are the following:

1. Your accountant often shuts down your ideas, or says it is not possible.

2. Your accountant justifies your high taxes because you earn more.

3. You only speak to your accountant during tax season.

From this point forward, we challenge you to consider the idea that you being taxed is a sign of an inability to properly apply the tax code.  What if taxes are penalties for not playing the game of business correctly?  When it comes to taxes imposed by the IRS there is only one principle that matters, trust. 

The people that earn your trust quickly are those that think and behave the same way you do; naturally, you establish boundaries for those who don’t.  You do not penalize people for being successful, or prospering financially; instead you’ll likely draw near them.  However, if you see that they are obtaining success through a means that goes against your core values (your code), then you will “penalize” them for it.  That penalty may not cost them financially, but it could result in a loss of trust.  This would lead to less of your time, and attention (which is far more valuable).

Well, the IRS views you, your business, and lifestyle, the same way. If you think and act the way the government does, it draws near and rewards you with deductions, credits, and incentives (tax breaks).  If you do not think and behave like the government there are “penalties” enforced.  Now considering that the relationship is transactional, the government has no desire to be your friend, so they penalize you financially with a tax code. Do you see the correlation between how you and the IRS govern relationships?

It’s all about trust.  Just as it must be re-earned in your most intimate relationships, the same must happen each year with the IRS.  

When it comes to building trust, we base our approach on two key pillars: truth and transparency. By building a clear and honest picture of your financial situation, you can navigate the tax landscape with low risk, confidence, and assurance. So let’s explore some practical ways our partners at Marq Neasman Accounting go about getting results using the principal of truth.

Truth in Motion

So how can you take the reins of this relationship, and ensure a more successful journey ahead?  As always, we recommend simplicity.  Keeping things simple is a great way to build trust.  Because it reinforces two pillars of trust, which are transparency and truth.  Complexity always leads to confusion, which kills trust. For now, let’s set aside the complex strategies and legalese of the tax law. Our secret weapon is something that can be applied by a 3rd grader.  

It’s the 5 Ws: Who, What, Where, When, and Why. This simple framework allows us to present your deductions in a way that's easy for the IRS to understand, minimizing suspicion and maximizing your potential tax savings.  As long as you are able to answer these basic questions for any transaction, to justify how it serves your business it will almost certainly lead to a deduction.

Yes, we utilize all the well known methodologies for lowering taxes (like real estate, acquisitions, insurance, and stocks); however, this straightforward method is a cornerstone of our success in helping countless individuals and businesses overcome audit anxieties and minimize tax burdens.  

At this point you are probably asking yourself, if it is really this simple, why doesn’t my CPA/EA/Accountant know this?  The short answer is, most have not been trained to think this way because they have never provided tax resolution as a service, or performed an audit.  Another reason could be that you have not incorporated a tax plan to allow your accountant to properly assess your business strategy.

Let’s check out some case studies to see how this methodology worked in action.

Case Studies: Truth be Told

Take, for instance, the case of Sarah, a real estate agent who made a purchase on a boat. She’d been under audit, and worked with two other accountants before joining forces with our team.  Neither of the others had been able to get results, and other tax agencies flat out told her she would not be able to write it off.  

By applying the 5 Ws, we demonstrated how the boat was a crucial business tool – essential for showcasing waterfront properties to potential clients. With a clear and justifiable explanation, we were able to help Sarah write off the purchase of a $300,000 boat, saving her a substantial amount on her taxes.

Another client, “Ted” is an ER doc with multiple income streams, including his own office. His old national CPA firm was running all the income through a W2, causing needless thousands in Social Security and Medicare taxes. Worse, tens and tens of thousands of no-brainer deductions were missed. By helping him to realize the earning potential in real estate acquisition, and adjusting his 401K vehicle, we helped him to re-distribute thousands of dollars back into his business, while increasing cash flow.  

Ted himself estimated all these dropped balls and bad CPA advice cost him and his family over a quarter-million in the last three years alone. Fixing these missed opportunities should save Ted and his wife millions they can use to retire sooner, and better.

Power Thought

In closing, whether you choose to do your own taxes, or hire an expert.  Following the simplicity of foundational principles will only guarantee your success. We leave you with this thought, by leveraging trust in the building of your business you will develop a strong reputation, which is worth more than money.  

This is just one example of the power of clear communication and understanding the laws governing our great nation. Share this with a colleague that is experiencing an audit, or seeking tax resolution.  It might make their day! If you are ready to unlock the secrets of tax efficiency and keep more money in your business and pocket? Click the link below, and let's work together to build a strategy that's both effective and transparent.