A few years ago, I was working at a table at a large event. We were promoting a particular capital gains tax strategy. Early in the day, someone visited with me at the table and shared that she had sold a 52-bed care facility and had to pay $1M in capital gains taxes. Toward the end of our visit, she asked me, “Do you mean to say that I did not have to write that $1M check?” I told her that unfortunately, that was correct. Throughout the day, she stopped at the table multiple times and asked me that same question. She was devastated by the news. My guess is that she won’t make the same mistake again. I speak with dozens of real estate investors every week, and I will often hear them say they are disappointed in their tax professionals because they didn’t share with them the tax deferment strategies I share in my webinars. ARE YOU PAYING MORE TAXES THAN YOU NEED TO?
THE “PROBLEM” WITH TAX PROFESSIONALS
I have to encourage them that the tax professionals are typically good at what they are doing: tax reporting. However, because most of them are “plug-n-play" professionals, they often do not get involved in many of the tax strategies that are out there. In some cases, they believe it’s too much of a liability risk to do so. On occasion, I come across CPAs and Enrolled Agents who research tax strategies and educate their clients. If you have one of the latter, you found a gem! The great news is that there are several available tax mitigation strategies. There are ways to reduce,
defer, and even eliminate capital gains taxes. That can also apply to income taxes, however, there are not as many options for those who are W-2 employees. The issue with tax mitigation, quite often, is there may be long term commitments and restrictions with the funds as well as added tax reporting costs. The IRS believes that when you put money in your pocket, they should get theirs. That is understandable. But I do believe that we ought not pay more than we legally must.
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