We are not here to talk about no taxes because that is tax evasion and that is breaking the law. We are here to talk about tax strategies, which is taking advantage of the tax code.

I grew up on the West Side of San Antonio and attended Jefferson High School, so saving money and cutting costs was major. Watching every penny was a must. I have been a CPA since 1990 and I have continued to study the tax code to embrace and understand what you can do and what you cannot do about taxes.

I started to implement tax strategies for myself in 1993 and since then I have saved a significant amount of money in my taxes. I have saved over the past 15 years by using tax strategies and investing the tax savings into other tax deduction vehicles such as, other companies, real estate, 401k, SEP, IRA, etc.

This has yielded tremendous savings, increased my assets, and has produced a reduction in my taxes. I have implemented the same tax strategies for all my clients resulting in lots of excitement and hugs when we get their taxes completed.

Understanding Tax Law

Congress intentionally makes taxes complicated and confusing. They have caused many people to live in fear of them so you will not take any steps to reduce your tax liability. The IRS is the master of electronic payment. Each time you get a paycheck you do not see the money that goes directly to the IRS. In fact, most people think this is not their money but the IRS’ money. That is wrong.

The sad thing is the IRS is taking around 10 percent to 33 percent of your hard earned income for payment of income taxes. Does this translate that each day you work one-and-a- half to two-and-a-half hours per day goes to paying your taxes? That is right. You work for the government one- to two-and-a-half hours per day.

We are here to discuss tax strategies. Whether you make $20,000, $30,000, $50,000, $100,000 or even if you are retired, everyone needs tax strategies.

Tax strategies vs. Tax Preparation:

What is the difference?

Today, over 95 percent of taxpayers get tax preparation vs. tax strategies. A tax preparation is when you bring in your documents and someone prepares your tax returns. This means there is no tax strategies being implemented to reduce your taxes. Thus, this results in the average taxpayers overpaying their taxes by $2,500 each year. In 10 years that means you over paid your taxes by $25,000.

Tax strategies typically decrease the tax liability that is paid to the IRS in range of 5 percent to as much as 25 percent. We call this changing “tax flow” into “cash flow” for you and your family.

How to get Started for Personal

Tax Strategies

1. List out the top five expenditures in your life today.
2. List out the top five events you spend most of your time doing.

1. Material Participation—Does the activity occur often during the year
2. Try to make a profit – Charge a fee

So this means if you spend your money in one particular area and you are doing the same events often then you are meeting part of the tax code i.e. material participation or participation. The gap is that have you not formally recognized your activities as a business or charge anything at this time?

So by looking where you spend your money and time, we can advise on the right tax strategy you should implement for yourself. There are many home base businesses to start to put tax strategies to work and you can take advantage of the tax code. Here is a short list of examples:

• Fortune HIGHTECH Marketing (FHTM) – Direct TV, Cell Phone, Triple A Insurance, Lowes, etc.
• Imagine Wellness – Dr. Webb, Wellness Plan –Exercise - Nutrition
• Juice Plus - Nutrition
• USANA – Vitamins
• World Ventures – Travel
• Baby Sitting R Us
• Mary Kay or AVON – Personal Beauty
• Homemade Gourmet – Food Catering

These are all valid agents/distribution businesses to participate in. You can also be your No. 1 customer. Today people sign up for cell phones and Direct TV through the normal channels directly without getting a tax write off. If you are part of the business as an agent/distributor, then part of your expenses can be written off.

Another example, if you are going to take a vacation then why not become your own travel agent. If you are going to participate in Wellness, why not join the Wellness programs, juice plus, and or USANA program so you can write off what you are already spend. Most people miss this simple approach to tax strategies.

Tax Strategies for Small Business

• Are you incorporated? If not, you are paying too many taxes. This is because you are participating in 15.3 percent self employment taxes plus federal taxes of 15 percent to 30 percent.
• When do you need a promotion company or leasing company?
• When do you need to implement a retirement plan or financial plan?
• When do you need to implement an executive bonus plan?

Tax strategies can save you lots of money over your life span and result in significant tax saving for you and your family. The concept of changing “tax flow” to “cash flow” is the key.