Steven Parry - Utah Real Estate

Wrong!

Mortgage rates are oh so low. Sellers are motivated. Home prices are down. And by the way, the federal government is giving $8,000 in free money to first-time buyers and others who haven't owned a home for at least three years.

Let Spectrum Real Estate help you with this important purchase. http://www.spectrumrealtysolutions.com

By Tom Wheelright

Answer these 5 questions to see how your tax strategy stacks up.

Question 1

If you need to provide documentation for your meals & entertainment expenses deducted on your last tax return, how long will it take you to put your hands on that documentation?

1. One week.
2. One month.
3. Are you kidding? There is no way I can find this documentation.
4. I can deduct meals and entertainment expenses?

What does your answer say about your tax strategy? If you answered:

1. 5 points. Congratulations! Your tax strategy is working for meals & entertainment.
2. 3 points. Although one month is a little long to locate receipts, congratulations on being able to locate them.
3. 0 points. This spells trouble, especially if you are audited.
4. 0 points. Caution! You may be paying too much in taxes.

Tip: With technology these days, it’s actually fairly easily to keep proper documentation. The most successful tax strategies have a simple routine or system that is followed. The system can be as simple as scanning receipts once a week and storing the scanned copy in a designated area. Knowing the rules to legally deduct meals & entertainment expenses, which includes proper documentation, is a powerful way to maximize your tax savings.

Question 2

1. Yes (which includes knowing that you do not need to make estimated tax payments).
2. No, but my tax advisor reminds me.
3. No.
4. What is an estimated tax payment?

What does your answer say about your tax strategy? If you answered:

1. 5 points. Congratulations! Your tax strategy is working for estimated tax payments.
2. 3 points. Who says you have to do all the work? Knowing your tax advisor is watching out for all of these deadlines for you is part of successful tax strategy. However, you need to know the approximate amount and date so you can plan accordingly.
3. 0 points. This could be costly! Late or underpaid tax payments often result in large penalties and interest
4. 0 points. It is time to work on your tax strategy!

Tip:

Question 3

If you are notified of an IRS audit today, which answer best describes your reaction:

1. I’m not excited about this but I’m ready for it so bring it on.
2. I’m nervous because I’m unsure of how some things were reported.
3. It scares the daylights out of me!

What does your answer say about your tax strategy? If you answered:

1. 5 points. Congratulations! Your tax strategy has prepared you for an eventual IRS audit. Few people enjoy going through an audit; being prepared makes it considerably less painful.

2. 3 points. Not knowing is not a defense if something is reported incorrectly. Penalties in this situation may be significant.
3. 0 points. Time to get your tax strategy in order so you never worry about an audit again.

Tip:

Question 4

Think about the next trip you are taking. Did you consider if it could be a tax deduction?

1. Yes
2. No, but I’ve always wondered about this.
3. No, my tax advisor tells me this is not possible.

What does your answer say about your tax strategy? If you answered:

1. 5 points. Congratulations! Your tax strategy is successful regarding travel deductions. Even if it ends up not being deductible, at least you knew to ask the question.
2. 3 points. You are thinking about it and ready to do something different.
3. 0 points. You could be missing out on significant tax deductions resulting in paying too much tax.

Tip:

Every dollar you spend is certainly not going to be deductible, but it’s always shocking how many people don’t consider the possibility that an expense may be deductible. This is similar to when you buy your first rental property. You never really noticed before just how many ads and signs there were for properties for rent. The reality is, the ads and signs have been there, it’s you who are opening you eyes to it. The same is true with tax deductions. The most successful tax strategies include the possibility that any expense may be deductible, it’s a matter of determining how it can be deducted and if that fits with the strategy

Question 5

Do you know how much tax you are saving in your current tax strategy?

1. Yes, and it greatly outweighs what I paid to set it up and pay to maintain it.
2. Yes, but I have my doubts if the savings outweigh what I paid to set it up and pay to maintain it.
3. What’s a tax strategy?

What does your answer say about your tax strategy? If you answered:

1. 5 points. Congratulations! You have a successful tax strategy.
2. 3 points. Good for you for having a tax strategy! However, not knowing if your costs outweigh the benefit can quickly lead to the failure of your tax strategy.
3. 0 points. Either you don’t know your savings or you don’t have a tax strategy. In either case, find a strategic tax coach who can help you create a successful tax strategy.

Tip:

Creating and maintaining a sound tax strategy must always factor in the costs to do so. Not just the initial costs, but also the ongoing costs. A successful tax strategy is flexible so it can be adapted to cost-benefit factors now and cost-benefit factors in the future. Calculate your actual savings every year. Your situation is likely to change and just as with any investment, you need to analyze your return on investment regularly. Successful tax strategies regularly measure the tax savings, compare it to the costs, adjust as needed and then proceed knowing the benefits outweigh the costs.

Do You Have A Successful Tax Strategy?

Total up your score to see how your strategy rates. If you scored:

21 – 25 points. Congratulations! You have a successful tax strategy. Review the tips on any questions you did not receive 5 points on for areas that can still be improved. Are you ready to continue your success? The School of Tax Strategy Monthly Coaching Series offers advanced sessions focused on topics to take your tax strategy and tax savings to the next level. Click here to get started now!

16 – 20 points.

By Tom Wheelwright

I have been working on a list of the top traits that wildly successful tax strategies have in common. I have reviewed thousands of wildly successful tax strategies, and 3 traits jumped out each and every time.

It occurred to me that these traits apply to any strategy. Here's an example.

A few years ago, I was in Hawaii and had the goal to hike to an amazing spot. My strategy was to find someone local for advice, select the spot and then do the hike. I started by asking friends and colleagues who have been to Hawaii and quickly learned the name of a company that offered hiking information.

The company offered do-it-yourself hikes – basically you get a map and go to it. They also offered guided hikes. The plus side of the do-it-yourself hikes was just that – my own pace, at my leisure, and it was free.

Even given all those pluses, I opted for a guided tour which charged a fee. I did this because I wanted someone who knew the area well, and the fee was something I could live with – not free, yet also not an arm or leg.

I selected a trail that I had actually read about already, and in fact, wasn’t that impressed by it at first; however, the guide shared with me that there was a hidden trail off of the main trail that led to an amazing waterfall.

With my destination selected, I was ready. The guide shared tons of information. I found the hidden trail, and throughout the hike I knew exactly what to expect – how much longer it was, the hard and easy spots, and the best resting places.

Going back to my goal, my goal was to hike to an amazing spot. In this case, I achieved my goal because my strategy was wildly successful.

So what made my strategy so successful?

#1: The Right Guide

Had I not done a guided tour, I would have never seen the waterfall, and I wouldn’t have learned all the great information.

#2: The Fee Was Reasonable

The guided tour didn’t cost me an arm and a leg. Had the guide been too much, I definitely would have opted out.

#3: Personal Commitment

Even though the guide had a huge role, at the end of the day, it was my personal commitment that made it happen.

Look at Your Tax Strategy and Ask:

Do you have the right guide?

Is it cost effective?

Are you ready to minimize your taxes legally?

These 3 traits inspired me to create my most cost effective tax coaching program to date – The School of Tax Strategy Monthly Coaching Series.

In my monthly tax coaching series, I am your tax coach and I guide you through the exact steps you need to take to reduce your taxes. Usually I charge thousands of dollars for my monthly coaching services, but in this monthly coaching series, the monthly fee is only $197!

You have your guide. You have a cost effective program. All you need to do now is make your commitment to take action. Simply click on the link below to get started:

I’m ready to reduce my taxes!

The tax credit is available for those first-time homeowners who purchase between April 9, 2008, and June 30, 2009. This credit is available to anyone buying their first house or anyone who has not owned in three years. (more info)

Contact Spectrum Real Estate today for more information on this once in a lifetime opportunity.