Tax Strategy

This is a term we created because nothing else adequately described the pioneering work we were doing in tax avoidance.

We found there were some favorable tax treatments in the code that nobody was taking advantage. That made us think, if tax preparers were not taking advantage of favorable tax codes, what else were they missing? It turned out A LOT.

That was more than a decade ago. Since then we have found more favorable, seldom used, tax codes. But more important, we began combining different sections of the code, that had no obvious tax savings attributes, into tax cutting strategies. Hence the term we coined.

Today we have a collection of tax strategies that we customize to fit the specific circumstances of individual clients.

We have only one significant client that was already doing everything they could to save taxes. They came to us because of our world class service. Some tax professionals have terrible service.

If you want to know more about tax strategy, make an appointment here – https://calendly.com/elliscpa/60min.

Or call (970) 242-5040.

Hillary Payback or Tax Reform?

It looks like everyone got what they voted for in tax reform.

It’s pretty clear who the big winners and losers are. Each individual will probably have to do some calculating to be absolutely certain, but the broad groups of winners & losers are pretty clear right now.

Tax Reform isn’t Valhalla. We did not just die and go to heaven. For every tax cut, there is a tax increase somewhere to make up for the lost revenue. That’s how the process works. If you are a large global corporation with more than 100 shareholders and no individual owner to answer to, you won the lottery. You are the big winner. That much is certain. That is where the bulk of the tax savings go. OK. That’s what they said they were trying to do, and they did it. For everyone else, broad groups will win and broad groups will lose. And those are pretty clear right now.

But here’s a pattern that has escaped notice.

Losers:
High income earners with expensive homes and dependent children living in high tax states will be losers under tax reform. As will professionals such as equity bankers & physicians at all income levels wherever they live. Both groups will pay more tax under tax reform. But here’s where the pattern begins to show up. According to the demographics, those are the Hillary voters. When they voted for Hillary; they voted for tax increases; and they got tax increases.

Winners:
The winners on tax reform will be low income families in low tax states. In fact, I believe, low income people even in high tax states will be winners. Hmmm. Does that describe Trump voters? I think it does. Those people voted for tax cuts when they voted for Trump. And they got tax cuts. That formula works even for people who live right next door to each other; one voted for tax hikes and one voted for tax cuts; they both got what they voted for.

The big losers on tax reform are Hillary voters who are really winners because they voted for tax increases and got what they voted for. Everyone got what they voted for. Probably coincidence.

But balancing the budget in the same week?

Now here’s the real kicker. In the same week tax reform was passed, Trump manipulated our friends in the UN into voting in favor of ending their own US foreign aid, which will go a long way toward balancing the Federal budget. Thank you UN.

Trump gave people what they voted for and balanced the budget in a single week. Is that even possible? No other President from Washington to Lincoln to FDR ever had a week like that.

There is one hurdle left.

Who has the gonads to cut off 90% of foreign aid? Probably not Trump. The press would rake him over the coals. But Nikki Haley definitely does. Did you see her glaring at UN voters as they voted on the Jerusalem issue?  In addition, she followed up the vote by inviting all the nay voters to a party. She is looking for a fight and she is getting in their faces. Nikki Haley will cut them off in a minute, and she won’t give a diddle what the press thinks.

These people are serious. I’m going to keep my head down and stay the hell out of both their ways. But I am enjoying the show. As the Chinese proverb says, ‘May you live in interesting times.’

 

PS. I will be a loser. But after applying my own off-the-shelf tax strategy, I will be a winner. There is a solution to every problem.  Want to solve your tax problems? Give us a call.

 

 

 

 

 

 

today

Glory be. Hallelujah.

HOUSE GOP SLASHES IRS TAX ENFORCEMENT BUDGET.

http://hosted.ap.org/dynamic/stories/U/US_CONGRESS_SPENDING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-07-15-12-25-57

They cut the IRS enforcement budget by 25%, $1.2 billion.

That means that there will be fewer audits.

The article goes on to say that will mean that those who cheat on their taxes will get away with it. This is bullshit. Most of the policing of that kind of thing happens at the tax preparer, not the tax payer. The system wouldn’t work without professional tax preparers. And in my experience, there’s very little attempt to cheat on taxes.  And nobody wants to be affiliated with a cheater. It doesn’t matter whether the odds are 1% or half of 1%, the odds are too high for most people.  Besides most people aren’t cheats. If anyone is cheating, it’s the government, and then they lie about it.

So who would you trust? The taxpayer or the government? Remember that line? I’m from the government and I’m here to help. ???

Worrying about cheaters is stupid.  The AP should worry about honest taxpayers that get audited. I think it’s a great move. It probably won’t last, but … If you’ve ever been audited, you know what I’m talking about.  You weren’t cheating, but you got audited anyway, and you were treated like a cheater. That’s the way it goes. But this is America, we have decent people, and very, very few of them cheat.

The IRS is doing too many audits anyway. They don’t have the talent to legitimately do half that many. Even the appeals agents, who are supposed to be the best of the best, are highly questionable. I’ve told the story before about an Appeals agent who questioned whether I actually exist because my signature didn’t match.  ???  Match with what?  It took me a week to find her boss so he could straighten her out.

Besides …

Why would you be stupid enough to cheat when there are so many completely legal ways to cut tax to the legal minimum?  You wouldn’t of course. Rhetorical question.

And where did all those ways to cut tax come from?  From the United States Congress.

When we cut tax to the legal minimum, we are doing it completely legally.

Tax Shelter

The number one tax shelter known to man is a wholly owned business. Always has been. Always will be until they change the constitution, either by legislative action or neglect.