Successful Multifamily Real Estate Investor Rob Rowsell outlines his Tax Reduction Strategy. The tax reduction program consists of four strategies business investors like you use to reduce their tax expenses. Remember, reducing your taxes IS a source of additional earned income!
Tax Reduction Strategy For Successful Investors Outlined
Rob has spoken previously on how much of a wealth drain that tax drag can be. Some listeners request that he expand on his tax reduction strategy. It boils down to four principles:
- Structure Over Deduction: Finding tax deductions in your records is important. However, making sure your business is properly structured is more so. Setting up your business as an LLC ensures not just legal protections. It also sets up the advantage of tax treatment. Make sure you hire a CPA and business consultant to help you properly structure your business.
- Pay yourself tax efficiently. A good accountant will advise you to pay yourself a conservative salary as a safe harbor against audits.
- Plan your exit before entering into any project. Knowing the end game before you structure your business will save you time and money in the long run. Restructuring can be a real hassle.
- Invest Your Money Tax Efficiently.
- Savvy tax planning is the absolute lowest risk way to quickly boost your investment returns.
- Invest your money in the right places. Generally, long term capital growth investments go into taxable accounts. “Ordinary income” cash flow investments should be deposited into tax advantaged accounts. These accounts may include retirement accounts such as Roth IRAs.
- Leverage unrealized gains to compound tax free. This means using equity in your business to acquire needed tools and even add a second location.
- Pay with PRE-Tax Dollars.
- Push every legitimate business expense to your business. This way, you will get an automatic discount every time!
- Plan BEFORE You Play.
- Plan the tax impact before you make any big business decision.
- Meet regularly with your CPA. Keep them in the loop on your plans as soon as you possibly can.
Join Our Multifamily Investing Community Today
Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!