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Professional Development: TAX STRATEGIES FOR BUSINESS OWNERS · Earn Your Leisure

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  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security. Okay,
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  Speaker 2: So I put this in all my tax slides all
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  Speaker 2: the time because I think I want everyone to have
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  Speaker 2: this perspective and understand this, and so Warren Buffett. Warren
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  Speaker 2: Buffett stated I paid a lower tax rate than my
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  Speaker 2: secretary thanks to the many loopholes and deductions that benefit
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  Speaker 2: the wealthy. And so I love to include this, and
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  Speaker 2: I love to have start off with this conversation because
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  Speaker 2: the reality is that Warren Buffett is not boasting. He's
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  Speaker 2: not saying it's right. He actually thinks that it's wrong.
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  Speaker 2: But the reality is the reality. So this goes back
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  Speaker 2: to my conversation of earlier saying Okay, well, if you
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  Speaker 2: don't currently have a business or you're not currently investing,
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  Speaker 2: you need to invest. You have Warren Buffett, one of
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  Speaker 2: the richest men in the world, saying that his tax rate, right,
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  Speaker 2: so not saying the amount of taxes that he pays.
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  Speaker 2: His tax rate is lower than his secretary. So that
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  Speaker 2: tax rate just means that his rate is probably at
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  Speaker 2: twenty five percent and his secretary is probably at thirty
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  Speaker 2: five percent, right, And it's all about It's all about
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  Speaker 2: because of it's sorry, it's all because of what he's
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  Speaker 2: investing in and where his income is flowing in from.
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  Speaker 2: And so the government is always going to incentivize things
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  Speaker 2: that they want to pretty much happen. Right, So if
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  Speaker 2: they want more people to become landlords. They're going to
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  Speaker 2: incentivize real estate. That's why there's so many tax deductions
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  Speaker 2: and so many different perks when it comes to real estate.
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  Speaker 2: When it comes to taxes, it's because the government needs help.
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  Speaker 2: They want landlords. They want you to be a landlord
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  Speaker 2: because they cannot house everyone. When it comes to you know,
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  Speaker 2: food and energy and all those things, there's a bunch
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  Speaker 2: of different tax deductions surrounding them. And it's because that's
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  Speaker 2: what the IRS wants. The IRIS wants you, I'm sorry,
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  Speaker 2: that's what the government wants. The government wants you to
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  Speaker 2: invest your money in the stock market long term, not
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  Speaker 2: short term. Right, So what do they do. They make
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  Speaker 2: the tax rates for long term investment lower than the
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  Speaker 2: tax rates for short term investing. Right, And so you
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  Speaker 2: all have to just it's really about mindset when I educate.
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  Speaker 2: When i'm educating you all, if you know, you want
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  Speaker 2: to go off and do your own taxes, that's fine,
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  Speaker 2: But when I'm educating, it's really about mindset. So that
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  Speaker 2: way you all can understand what's possible and you can
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  Speaker 2: understand pretty much the rules of the game. Okay, so
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  Speaker 2: I'll read this. You guys can feel free to take
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  Speaker 2: a screenshot of this. This is pretty much what I
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  Speaker 2: spoke to you all about already in terms of what
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  Speaker 2: tax planning is. But tax planning is the analysis and
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  Speaker 2: arrangement of a person's and business financial situation in order
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  Speaker 2: to reduce their tax liability. The tax plan ensures that
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  Speaker 2: all elements of the financial plan work together to pay
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  Speaker 2: the lowest tax in a legal and efficient manner. Through
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  Speaker 2: tax planning, individuals ensure they can attain maximum tax efficiency.
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  Speaker 2: Reducing tax liability increases the ability to take the money
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  Speaker 2: you would have paid to the irs and allow you
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  Speaker 2: to contribute it, contribute it to your dreams. Okay, So
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  Speaker 2: that in a nutshell is what tax plan it is.
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  Speaker 2: And a one liner, keep more of your money so
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  Speaker 2: you could do whatever it is that you want with it, right,
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  Speaker 2: and to make it simple. Now, I'm going to start
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  Speaker 2: talking about tax planning, and we're going to start off
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  Speaker 2: with bookkeeping. I used to be so lenient when it
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  Speaker 2: comes to bookkeeping, and I used to try to find
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  Speaker 2: a way around it to tell people, you know, maybe
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  Speaker 2: you don't need bookkeeping, maybe you could try to do
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  Speaker 2: it yourself. No, you guys need some sort of bookkeeping. Now,
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  Speaker 2: whether you decide to do the bookkeeping yourself. Everyone needs
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  Speaker 2: some sort of bookkeeping software. Some people choose to keep
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  Speaker 2: track of their books, and you know, let's say they
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  Speaker 2: sorry they made you to keep track of their books.
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  Speaker 2: Let's say it on Excel. Right. The issue with trying
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  Speaker 2: to maintain your books and money that's coming in and
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  Speaker 2: going out of your business. The issue with that is
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  Speaker 2: that when you do that, you have you pretty much
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  Speaker 2: have the opportunity to miss things, right. So if you're
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  Speaker 2: missing things, you may forget to include a transaction, you
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  Speaker 2: may include you know, some revenue or some expenses. So
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  Speaker 2: what you want to do is you want to make
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  Speaker 2: sure that you're able to kind of get ahead of that, right.
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  Speaker 2: And so I do recommend like some sort of software.
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  Speaker 2: So whether that's like quick Books, Sorry, some of my clients.
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  Speaker 2: I use quick Books within my company with my clients.
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  Speaker 2: But what's some other one WAVE A lot of not
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  Speaker 2: a lot of clients, but some clients do use WAVE.
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  Speaker 2: I don't care what you use, just use something, right,
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  Speaker 2: And so the business.
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  Speaker 3: Is that this episode is brought to you by P
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  Speaker 3: You ever walk into a small business and everything just
• 6:45
  Speaker 3: works like the checkout is fast, the receipts are digital,
• 6:49
  Speaker 3: tipping is a breeze, and you're out the door before
• 6:52
  Speaker 3: the line even builds Odds are they're using Square? We
• 6:56
  Speaker 3: love supporting businesses that run on Square because it just
• 6:59
  Speaker 3: feels seamless. Whether it's a local coffee shop, a vendor
• 7:02
  Speaker 3: at a pop up market, or even one of our
• 7:04
  Speaker 3: merch partners. Square makes it easy for them to take payments,
• 7:08
  Speaker 3: manage inventory, and run their business with confidence, all from
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  Speaker 3: one simple system. If you're a business owner or even
• 7:15
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• 7:49
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 7:52
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 7:56
  Speaker 1: accused of murdering a Texas man a Venezuela and charged
• 8:00
  Speaker 1: with filming and selling child pornography in Michigan. These are
• 8:04
  Speaker 1: just some of the heinous migrant criminals caught because of
• 8:08
  Speaker 1: President Donald J. Trump's leadership. I'm Christy nom the United
• 8:12
  Speaker 1: States Secretary of Homeland Security. Under President Trump, attempted illegal
• 8:16
  Speaker 1: border crossings are at the lowest levels ever recorded, and
• 8:20
  Speaker 1: over one hundred thousand illegal aliens have been arrested. If
• 8:24
  Speaker 1: you are here illegally, your next you will be fine.
• 8:27
  Speaker 1: Nearly one thousand dollars a day. Imprisoned and deported, you
• 8:31
  Speaker 1: will never return. But if you register using our CBP
• 8:35
  Speaker 1: home app and leave now, you could be allowed to
• 8:38
  Speaker 1: return legally. Do what's right, leave now. Under President Trump
• 8:43
  Speaker 1: America's laws, border and families will be protected sponsored by
• 8:47
  Speaker 1: the United States Department of Homeland.
• 8:48
  Speaker 2: Security right off, if they decide to absolutely, so yes,
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  Speaker 2: so sorry, guys, you know my voice is going, so absolutely,
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  Speaker 2: if you guys sign up for quick books, if you
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  Speaker 2: guys decide to pay me, if you guys decide to
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  Speaker 2: pay another professional, all of those things are tax write offs, right,
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  Speaker 2: And that's the beauty. And I said this on stage.
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  Speaker 2: I was like, you know, the beauty of being a
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  Speaker 2: business owner or an investor is that you get to
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  Speaker 2: make your money, pay your expenses, and then your tax
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  Speaker 2: on what's left. Versus when you are a W two employee,
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  Speaker 2: what happens is that you get your money, your tax,
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  Speaker 2: and then you have to try to live off what's left,
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  Speaker 2: you know. And so just looking at it that way
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  Speaker 2: is like you know, I tell clients all the time,
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  Speaker 2: it really is about what can we really what can
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  Speaker 2: we do to bring more of our personal expenses over
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  Speaker 2: to the business side. So now that business is now
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  Speaker 2: deducting those expenses versus you know, us trying to live
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  Speaker 2: off of let's say that W two income that we're
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  Speaker 2: bringing in. So I put bookkeeping first because bookkeeping, as
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  Speaker 2: I put here, is really the foundation. Okay, So it
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  Speaker 2: is the foundation of tax planning. I cannot help you
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  Speaker 2: save on taxes if I don't know how much your
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  Speaker 2: business is profiting. If I don't know what expenses you
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  Speaker 2: really have or what assets you really have already, it's
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  Speaker 2: pretty much impossible for me to help you. And so
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  Speaker 2: if you want help or you want to be able
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  Speaker 2: to take advantage of things, you have to have your
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  Speaker 2: foundation in order, okay. And bookkeeping is very important, especially
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  Speaker 2: for you know, if you're going for any loans or
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  Speaker 2: you don't know how many people every single year contact me,
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  Speaker 2: actually every single week, contact my office and they're like,
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  Speaker 2: oh my god, I'm going for a loan and asking
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  Speaker 2: me for a profit in law statement. And I can't
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  Speaker 2: give them my profit in law statement because I don't
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  Speaker 2: have any bookkeeping. Oh my god, can you guys do
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  Speaker 2: my bookkeeping? I need you to do my bookkeeping for
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  Speaker 2: the past two years, and I need it done in
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  Speaker 2: two days, we're like, do you want us to go
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  Speaker 2: through twenty four months? Wow? You know, and so because
• 11:03
  Speaker 2: nothing is urgent until it's urgent, and I like to
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  Speaker 2: practice a lot, and most people look at me and
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  Speaker 2: they're like, Okay, well, you know, you're just like it's
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  Speaker 2: just taxes. But it's like, no, this is really the foundation.
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  Speaker 2: Like I really am like the powerhouse to a business
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  Speaker 2: from the financial perspective because all of these tools, all
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  Speaker 2: of these things, if you conduct your business and your
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  Speaker 2: incompliance and you have your bookkeeping done and you know
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  Speaker 2: you're able to take, you able to save on taxes
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  Speaker 2: and file your taxes on time, and all of those
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  Speaker 2: things contribute to a profitable business. Okay, so More wrote
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  Speaker 2: the story get your stuff Together. So let's just quickly
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  Speaker 2: talk about tax deductions. So with tax deductions within tax
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  Speaker 2: planning for the most part, sometimes we do have to
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  Speaker 2: bring up to clients tax deductions that they need to take,
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  Speaker 2: or they need to consider, or they need to shift
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  Speaker 2: from a business side I mean sorry, from their personal
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  Speaker 2: over to their business. So any consultants, mails, travels, gifts,
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  Speaker 2: entertainment service sorry, internet, internet services, computer or software, cell phone, education,
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  Speaker 2: medical magazine. So these are just some right. Of course,
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  Speaker 2: we have home office, we have vehicle, which we'll talk
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  Speaker 2: about a little later. There's so many different things. How
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  Speaker 2: I like to tell clients to think about tax deductions,
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  Speaker 2: and well, I want to define tax deductions because a
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  Speaker 2: lot of times people ask me what's like to define it?
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  Speaker 2: So I'll continue this thought, but it just popped in
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  Speaker 2: my head that I need to define this. So a
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  Speaker 2: lot of times what I tell clients is if you
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  Speaker 2: are spending money on this particular thing in order to
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  Speaker 2: complete that transaction, in order to get that money through
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  Speaker 2: the door, then ninety five percent of the time it
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  Speaker 2: is a tax deduction. Okay, So pretty much tax deduction
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  Speaker 2: really is just you capturing all of your expenses that
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  Speaker 2: you have put out in order to operate your business.
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  Speaker 2: So for the irs, in order for something to be
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  Speaker 2: considered as an expense, it has to be reasonable, and
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  Speaker 2: they had I'm sorry, not reasonable. Sorry, it has to
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  Speaker 2: be necessary and ordinary. And so what that means is necessary,
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  Speaker 2: meaning that you needed it in order to complete your business. Right,
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  Speaker 2: And then there's a necessary an ordinary ordinary meaning that
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  Speaker 2: is common. Right, So if it's something common in your
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  Speaker 2: industry and it's necessary, is considered a tax deduction,