Tax Free Wealth

How to build massive wealth by permanently lowering your taxes
by tom wheelwright, cpa
isbn: 978-1-937832-05-6

notes:
Tax laws were not initially intended to include the average working person... meant to reach only the excess earning of most wealthy individuals and corporations.... have evolved to become tools of social and economic policy making..... economic policy makers in government discovered that people respond quickly and directly to tax incentives.

Governments steer economic behavior through the tax code..reward desired behavior with tax breaks.

start small and think big. thing about the freedome that will come when you can devote most of your time to your business, investments and family.

spend money on things likely to grow your business.

taxfreewealthbook.com

invest for passibe income

document your income and expenses well. Scan receipts into your computer

cost segregation - breaking out the component parts of a building. see irs audit guide for their agents on how to handle cost segregations.

pay yourself reasonable rates for your position in your company. See www.salary.com

3 steps to successful estate planning; placing assets in trusts, creating a will & avoiding estate tax
Avoid probate because it includes courts, judges & lawyers; it's expensive and it's public

If you have charitable intentions with your estate consider a charitable trust. You can give assets to charity now but still take the income stream from the assets for the rest of your life.

Tax planning for permanent tax savings, retire rich, unlimited earnings, unrestricted withdrawals & unlimited control versus traditional deferred tax planning of temporary tax savings, retire poor, limited earnings, restricted withdrawals & limited control

Think through tax strategy: current investments, business entities, business & investment plans, how sure am i that my tax returns are being prepared in best way possible. How often do I hear from tax advisor (minimum 4x/yr), children age, children plan to work in your business, do i need to help my parents, how secure is my job. Need to have flexible strategy and look at big picture.

entities for asset protection; trusts, LLC best; general partnership not good; limited partnership, corporations good

government qualified retirement plans restrict what you can invest in, how you access your money. increase your tax rates, increase your risks, reduce overall returns due limitations in using leverage, lose control over what you can do with your money and when you can use it.

Do stock trading in self directed roth IRA

4 types of investment in oil & gas; stock, interest in royalties from producing well, invest in exploratory or development operations

use accounting software to prepare income and balance sheet

purchase audit defense plan for specific tax return

hiring the right tax advisor

1. what is your view of the tax law
2. who gets the most advantages of the tax law
3. what made you want to become a tax advisor
4. what would you like to know about me
5. tell me about your team of advisors
6. describe your personal business experience
7. tell me about your personal investment strategy
8. where did you eanr your masters of tax degree
9. give me 3 examples of how to reduce the risk of an irs audit
10. tell me your thoughts about asset protection

Your prospective tax advisor should discuss with you

1. tell me about your dreams and goals
2. describe your current and projected family situation
3. describe your relationship with your spouse and childrene
4. describe your current and projected investments
5. describe your current and projected business situation
6. explain your philosophy of tax reduction
7. what would you like to learn about the tax laws
8. how do you learn best? auditory, visual, tactile or kinesthetic
9. in a perfect world, how would you like to work with your CPA
10. who are the other members of your team?