00:04:35.000I have been, you know, since day one, structured both Fresh and Myron, you know, according to the way they needed to be structured to, you know, benefit from the most tax advantageous standpoint.
00:04:48.000So I work with a lot of small business owners, net, you know, high net worth individuals, a lot of real estate individuals, investors, such as Myron is.
00:04:56.000He's got, you know, several properties and navigating, you know, my clients through that and making sure that they're taking advantage of the tax code to the best of their ability.
00:05:48.000There's probably right now, it's probably, you know, there's people exiting for, you know, particular reasons, which you've discussed a lot, you know, with the tax base and, you know, just certain things in that state.
00:05:58.000So, yeah, coming from New York State, been down here in Sarasota for about 25 years.
00:06:03.000I've ran, I've purchased multiple properties, commercial and both residential over the years, took advantage of the market dips.
00:06:13.000And also, I ran a large portable x ray company that we did a portable x ray and ultrasound all the way from Tampa, all the way down to Naples, and as far in as close to like Orlando.
00:06:26.000We had like the whole West Coast area.
00:06:28.000And I sold that after 12 years, went back into practice again, and here I am.
00:06:54.000So, I'm probably one of the only guys that has as a CPA that's very well versed in crypto.
00:07:00.000I worked with Miguel and Charlie, I did about four or five courses with them um over the years, and uh, I actually have a book about crypto taxes that's pretty in depth, so that's something that you can reach out to me if you want a copy of that.
00:07:27.000Five, you know, for BTC, you know, 1900 to 2000 for ETH, Solana's, you know, everything's pretty flat right now.
00:07:35.000So there could be some guys that maybe they bought in, you know, with the crypto guys and they're down on some big positions.
00:07:41.000And, you know, I know it's early right now, we're in August, but, you know, within the next four to five months, once we get to December and you want a tax play that's, you know, completely legal, they haven't shut the door on this loophole yet.
00:08:01.000So in December, if you're down, let's say you bought ETH and you're down 20%, 30, 40%, or any crypto for that matter, and you just have a feeling it's going to come back.
00:08:11.000It's going to make a run sooner or later, and you don't want to sell it.
00:08:15.000But what you could do is you could sell it in late December of this year.
00:08:18.000You could harvest that loss and you could buy it right back the beginning of January.
00:08:23.000So even if you don't need the loss, maybe you don't have a lot of gains that you've realized in 2026, you could still harvest that loss, keep it as a carry forward.
00:09:22.000And yeah, that's true because you are one of the few accountants that, like, you know, handles crypto specifically because a lot of accountants haven't really caught on to it.
00:09:30.000Are there any, like, tax benefits really besides that play that you mentioned that you can utilize with cryptocurrency?
00:09:35.000Because I don't know if it has the same tax shielding that, like, you know, real estate has.
00:09:40.000Well, you know, obviously the nature of crypto is always, you know, to do things, you know, privately, right?
00:09:49.000So it's always like, okay, outside of the system, you know, kind of like the dark web and stuff like that, you know, it kind of started in that type of fashion.
00:09:57.000So there's a lot of people in the market and traders and that kind of like subscribe to that sort of like mentality.
00:10:05.000So, but there's a lot of things you could do with crypto right now that you don't have to actually do that.
00:10:09.000There's, you know, some ways where you could set up.
00:10:11.000Certain self-directed IRAs, if you want to be more above board.
00:10:17.000So that's one of the things that we've helped people navigate through.
00:10:21.000Right now, like I said, a lot of people are not onboarding right now.
00:10:24.000It's kind of like it's lost its luster a little bit.
00:10:28.000So you still got the OGs in there that are like your Charlie's and your Miguel's and your guys that have been in it for a while and they're still waiting for more liquidity to get into it.
00:10:40.000We're in the consolidation phase right now.
00:10:42.000So, I think, you know, like MicroStrategy's had a sell off.
00:10:46.000But there's like, you know, the Bitcoin, I believe the electronic fund for BTC had a lot of money come in in the past like week or two.
00:11:01.000So, people are buying, they're taking advantage of the lower price right now, you know, with the speculation that's going to go up again.
00:11:09.000We've got price, you know, affordability is an issue.
00:11:13.000You know, things are happening that are kind of like putting a hamper on, you know, more entrance and coming into the crypto market.
00:11:19.000So, but any guys that are out there right now in that position where you feel like, you know, you've got some positions you want to hang on to, they're going to come back, take advantage of the harvest, you know, harvest that loss and then just buy it back.
00:11:34.000You know, if you don't, you know, as long as that crypto is pretty steady, it's not going anywhere, you know, sell it off late in the year and then just buy it right back.
00:11:41.000So you don't, you know, you don't have to realize the loss.
00:11:43.000You could at least harvest it and have it for a carry forward.
00:11:59.000So I got a bunch of real estate guys, you know, real estate brokers and agents, and they're struggling right now.
00:12:07.000You know, the inventory is increasingly creeping up.
00:12:10.000You know, guys that are like cash liquid, like maybe like yourself or something, like, you know, you can make a play, like you should be bird dogging some up, you know, over the next year or so, some properties to take advantage of it.
00:12:20.000You know, if you don't have to go through financing, you know, the rates are still not where they need to be.
00:12:29.000So I think I think inventory, you know slowly, I don't know where we're going right now, but i'm i'm right now in a, in a position of looking to buy something, I think over the next, within the next, like year, um in Florida, or where are you gonna?
00:12:46.000Yeah, i'll say I don't like to do anything like out of the state where i'm not like controlled.
00:12:50.000You know, like in your case it's different.
00:12:52.000Like you know, let's say, like you you, you have people there that you trust.
00:12:56.000You know with your life that they can help you out with that.
00:12:59.000You know, from afar I'm not in that position, so I like to be close to it.
00:13:03.000I know there's people that invest, but there's plenty of properties around here that are close enough for me to at least manage to a certain extent or keep an eye.
00:13:13.000So, and sorry, Steve, I'm like, guys, I'm fixing my locals right now.
00:14:05.000Are you looking at some stuff right now?
00:14:06.000Because I know you took a temporary pause on some things.
00:14:09.000You know, you've got quite a portfolio though, but what's, you know, you got, I'm actually, I'm actually selling two of my houses and I'm in the process right now of selling two of them.
00:14:18.000And the reason why I'm selling them is because one of them isn't cash flowing like they should.
00:14:22.000I've had it for about two years, it's just not performing.
00:14:24.000And then the other one, it's in New Haven and New Haven right now passed a law not too long ago that's going to give tenants an enormous amount of power.
00:14:35.000So that house is cash flowing, but I'm kind of seeing the writing on the wall.
00:14:39.000Let me get out of here, 10 30 exchange into another house or, you know, or a commercial deal and kind of go from there.
00:14:48.000Because what I did was, after I had all the properties and I kind of like let the dust settle, I did a profit and loss statement for every single house.
00:14:55.000And a couple of them didn't perform as well as they did.
00:14:59.000So for the ones that performed well, obviously we're keeping them.
00:15:03.000And for the ones that weren't performing as well or the margins weren't as good, I'm going to sell those.
00:15:08.000And then one of those that I, you know, That's performed, but I'm like, you know what?
00:15:15.000I'm like, I'm going to get rid of it because I know that this is going to be a problem later on because New Haven, Connecticut just passed some pretty bad pro tenant laws where, like, you know, they can squat on your property.
00:15:28.000You know, they can, it's very hard to kick them out.
00:15:30.000If it's the wintertime, you can't kick them out.1.00
00:15:32.000So, this is something that people need to keep in mind for blue states.
00:15:35.000So, I'm going to sell them, do a 1031 exchange.
00:15:38.000Can you explain to people what a 1031 exchange is, actually?
00:15:48.000So that would be one property investment, investment property for another investment property.
00:15:53.000It could be residential or it could be a commercial.
00:15:55.000Those are still like kind, but it has to be at least equal or greater value, meaning the property you sell, you have to buy and invest the proceeds from that sale in another property of equal or greater value.
00:16:10.000And if you don't, you can do it like, let's say the value of it is like, you know, half.
00:16:14.000Well, then you can only do the 1031 for the half of it, but then you'll have to realize the gain on the other half.
00:17:02.000We're going to close both of them on the same day and then, like, take that money and roll it right into, like, I try to identify a deal right away.
00:17:09.000So I'll tell you, I'll tell you a little story.
00:17:10.000Um, two, two things that you just touched upon.
00:17:37.000You know, some of them were, not all of them, but some of them were.0.97
00:17:39.000Anyway, so the same thing happened in that city where it was, the mayor there was proposing that if you had a unit that was vacant for 90 days, three months, then you had to, Take one month's worth of rent for every three months that unit was vacant, so it would be basically a third of the year, you know.
00:18:02.000So, four months, if let's say it was vacant for the whole year, you'd have to take four months' worth of rent at that market value and put it into a fund that would go to pay for the homeless.
00:18:16.000So, he was like the same thing, like it got in the meetings, it got very contentious, and um, so he basically wound up selling those properties, you know.
00:19:09.000Can you explain to them what a monetized collateral is after?
00:19:12.000So, a monetized, it's a very complicated thing, probably beyond the scope of this discussion here, but it's basically where you sell your building, you know, and it's all done at closing.
00:19:25.000So, there's a series of contracts where you're actually selling it to a dealer of assets.
00:19:28.000That dealer of assets buys it and then in turn takes a portion of the proceeds, which is like 5%, and invests that into an annuity type of thing to pay this loan back, where essentially you get 95% of your proceeds at closing.
00:19:45.000And then you can invest that in any asset.
00:19:48.000It doesn't have to be a light kind asset.
00:19:50.000And the nice thing about it, it doesn't have to be real estate like 1031 does.
00:19:54.000It could be a restaurant, it could be some other type of asset.
00:19:57.000So it was a beautiful thing at the time.
00:19:59.000However, when the Biden administration came in, they had a new commissioner, the IRS, and they put that on the dirty dozen, and nothing ever came of it.
00:20:28.000They kind of pissed it on their own feet, you know, sort of like, okay, we'll posture it, but nothing ever came of it.
00:20:33.000But the bad part of it is scared all of us, us practitioners out here that were facilitating these things, they took that off the table and we couldn't, you know, in good faith, you know, offer that to our clients anymore.0.98
00:20:44.000Like I would have been like, hey, Meyerman, fuck the 1031, let's just do this.0.93
00:21:26.000So I'll, and we got a good amount of questions here as well, which I'll definitely get to.
00:21:32.000And before we do the questions, because I want to give, because I want to give like very general, you know, I guess we'll give these guys, none of this is financial advice, but what we would do for some of you guys that are beginners that want to get into this.
00:21:45.000So I think every guy should get at least one real estate property, work towards owning one full Bitcoin.
00:22:07.000I think that's perfect for the young guy coming up to reach those workers, you know, especially like if you're in your 20s or even in your 30s, early 30s, too.
00:23:08.000So, and I see him on the Fresh and Fit chat.
00:23:11.000But I'm going to go ahead and read some of these OSS chats that came through from you guys.
00:23:15.000We got here Albo A says Best way to pay yourself W 2 or owner draws.
00:23:22.000Also, since I already paid taxes on last year's profits, can I owner draw them out of my business account into my personal without raising any red flags?
00:23:35.000Or what would be the best way to put all that money out?
00:23:40.000Sitting in a business account losing value, yeah.
00:23:43.000So, you can, so you're not taxed on how much money you have in your bank account.
00:23:49.000You're taxed, we measure your income basically.
00:23:52.000So, you've got your revenue, you have your income, and then you take your, you know, whatever expenses the IRS allows you for your business, and then we measure your profit, and then we subject that amount to tax.
00:24:02.000Whether or not that money stays in your bank account or not does not matter.
00:24:05.000So, that's just basically the transferring of the money to your personal is just basically what we call a distribution.
00:24:11.000If you're set up as an S Corp or if you're set up as a partnership or a You know, a member of a partnership, then it's just a draw.
00:25:06.000I did, you did, you did actually the very last couple years, yeah.
00:25:09.000You got out, we had that, we had that heart to heart conversation, like you had that, yeah, yeah, no, um, so yeah, guys, so Steve did my taxes when I was an agent, uh, so.
00:25:24.000Guys, I'm paying about the same amount, if not less in taxes, now making like 10X of money than I did when I was working for the government.
00:25:32.000And that's because I had so much real estate.
00:25:33.000I mean, you could tell them how you were able to offset.
00:25:37.000And I don't mind you sharing with them.
00:25:38.000You could go ahead and say, we could totally be transparent here.0.99
00:25:42.000No other fucking creator would do this, by the way.0.98
00:25:44.000Bring their accountant on and be transparent with you guys about how I was able to save so much money on taxes.0.98
00:25:49.000Feel free to share with them, bro, how you were able to like, because I paid nothing this year.
00:25:52.000I think it was like 20K or something like that.
00:26:16.000So, those properties that you have, a set of, you know, the average accountant is going to go in and he's going to say, okay, you bought this property for $600,000.
00:26:25.000Okay, we're going to say $100,000 of it is land.
00:27:29.000So that's what we were able to do with, you know, you've got an extensive portfolio.
00:27:34.000So we didn't have to do that in all of them, you know, and we don't want to do it on all of them, you know, when we don't need it.
00:27:41.000So we kind of pick and choose which ones we want, which ones you're going to hang on to the longest.
00:27:45.000Maybe, you know, like you're talking about selling these other ones.
00:27:47.000So I'm hoping right now when I go back in that that was one of them, maybe that, you know, we didn't take as much on because I'm not going to.
00:28:46.000But like, yeah, I'm going to have some losses on some of those houses.
00:28:48.000So, guys, basically what Steve is explaining to you guys when you buy real estate, right, you're able to kind of like, you know, burn a candle at both ends.
00:28:54.000You have depreciation on one side over 27 and a half years, and then you're able to do something a bit more immediate, which is a cost segregation, which is like, you know, anytime you make fixes to the house, That's non structural, the structural, or you make improvements like you buy refrigerators or you improve the house on the inside with non structural.
00:29:09.000You can, you can, you know, use that to lower your tax liability.
00:29:13.000And then Trump allows you to take it up like upfront, like where it's like you could take like all five years upfront, right?
00:29:18.000If I'm not mistaken, he's still allowing that.
00:30:10.000So that's how Steve was able to do it for me.
00:30:13.000And since I have so many different properties, he can kind of play with it and choose what he wants to, you know, well, he gets the depreciation for all of them, but he can do the cost seg kind of, it gives him options.
00:30:24.000All right, I'll read some of these other chats that came in here because they got some good questions.
00:30:31.000We got the one about paying yourself from Albo Ace with W2.
00:30:36.000He says, Steve, are you doing Zoom calls?
00:30:38.000I'd like to schedule one with you and go over some things.
00:30:41.000So, if people want to book a call, because I'm sure there's going to be a bunch of people that want to book a call with you after this, Steve, how can they get a hold of you?
00:31:26.000Mother Frogger says, getting a fourplex next year with VA home loan, house hack, 9K gross income per month.
00:31:33.000I've watched all shows with David Green.
00:31:35.000Biggest piece of advice for a beginner.
00:31:37.000What do you wish you would have done differently in the beginning?
00:31:40.000So basically, they're getting a fourplex next year with a VA home loan, 9K gross income per month, which that's pretty high if it's gross.
00:31:49.000I don't know what your mortgage is going to be, though, because you're getting a VA loan, which means you're putting no money down and you're paying PMI.
00:31:54.000I've watched all shows with David Green.
00:31:56.000Biggest piece of advice for a beginner.
00:31:57.000What do you wish you would have done differently?
00:32:50.000Getting into a fourplex is good because you're going to have three tenants to offset it.
00:32:53.000Like I've always said, if you're going to do a VA or a FHA loan, the more tenants, the better because those tenants can offset your mortgage, right?
00:33:00.000Versus having a duplex where you have to rely on one tenant to offset your mortgage.
00:33:05.000If one tenant doesn't pay, the other ones can and you can offset it.
00:33:29.000Yeah, definitely having a cash flow or having a reserve is like a huge thing because there's always going to be something that's going to be wrong.
00:33:36.000When you get tenants in there, they don't take care of stuff like they do.
00:33:40.000So they're going to be, you know, harder on the cabinets, you know, blast the AC up, you know, certain things like that.
00:33:46.000And yeah, so you're always going to have, you know, more fixes than you would just like a residential property that somebody owns because they just don't look out for it as much.
00:33:55.000But in this particular one, if you've got four units, so the three units are probably going on average for $3,000 a month.
00:34:34.000The thing with commercial deals, and we could talk about this a little bit too.
00:34:37.000The biggest difference I would say between commercial deals, guys, and regular deals is commercial, they assess the property more versus assessing you versus for residential, they assess you a lot more.
00:34:49.000So, like with a commercial deal, when you go through the process of getting a loan and everything else like that, they're looking at it like, okay, does the property make money?
00:36:13.000So, first off, you wanna become an S corporation.
00:36:16.000So, you don't need to necessarily be an LLC, right?
00:36:20.000So, this is where we get into the whole like, should I be an LLC or an S corporation?
00:36:24.000Even if you are an LLC, you could still convert it and make yourself an S Corp, right?
00:36:28.000Just a couple forms you file, not a big deal.
00:36:30.000But instead of doing all that, you could just go right for the S Corp and just be at the end, INC Inc.
00:36:37.000Because you're running a product, you're selling products.
00:36:40.000So anybody that does a service based or product based business, you could just, you know, you're by yourself, you could just do an S Corp.
00:36:46.000Now, if you get into something where you are a legal liability, it's like a lot of attorneys or a CPA firm or something like that where you're consulting with clients and you have partners.
00:36:55.000then that's where you want to be a limited liability because you want to limit your liability to what your assets are and what the other guy's assets.
00:37:02.000So if that client sues that partner, the liability is limited to him and his assets, and it doesn't come to you.
00:37:10.000So that's why this structure came out.
00:37:16.000So each one, we set them up as a separate LLC because we want to limit the liability for each property in case there's a slip or fall or some type of, you know, it's a very litigious world we live in.1.00
00:37:26.000So he wants to protect himself that way, right?0.99
00:37:29.000You don't want to put them all in one basket.
00:37:33.000Get a tax ID number, get incorporated in your state, become an S corporation, start that right away.
00:37:38.000The problem right now that you're dealing with of not filing, I heard that part, is you're going to get 1099s for the sales that you're making.
00:37:44.000So if you're doing, you said 35 to 50 a month, that's a substantial amount.
00:37:52.000It will take the IRS the better part of two and a half years to catch up to you, but the IRS will catch up to you.
00:37:59.000You'll get a notice and they'll say, oh, you didn't file, so we're going to file for you.
00:38:03.000And, you know, by the way, we're just going to give you single status and we're not going to give you any deductions so they can maximize the amount that you owe, right?
00:38:43.000So try to get with a CPA in your area, give them your 1099, try to come up with all the expenses that you can take advantage of, get with somebody that's pretty savvy and get those returns filed ASAP.
00:38:55.000Yeah, I think one of the biggest things, man, is you guys need to have an escort, man.
00:38:59.000It's like people think, oh, I'm just going to have it as an LLC.
00:40:04.000Does your C corps, your S corps, and maybe your partnerships.
00:40:07.000So those are a whole different ball of wax.
00:40:10.000So now you want to, what I call is divide and conquer, right?
00:40:13.000So you don't want to put all your business activity and your personal activity on one return.
00:40:17.000So if you don't get incorporated, you, you default to what's called a sole proprietor.
00:40:22.000A sole proprietor means you fill out this little, it's called, it used to be called a hobby, a hobby schedule.
00:40:29.000Okay, it would be people that ran little, you know, mom, you know, sold Avon back in the day, or dad had a little, you know, hobby, you know, that he'd sold shit out of, you know, out of the garage, right?
00:40:39.000So you put your entire business activity on there, okay?
00:41:19.000Because what happens is you give a person that is only supposed to look at W-2s, 1099s, maybe your 1095 health statement, itemized deductions, mortgage interest, real estate taxes, you give them jurisdiction to audit now the books of your entire business.
00:41:35.000So, this guy right now is basically giving the lowest level people that don't have an idea of what it takes to run a business.
00:41:44.000And he's auditing like a $3 million a year business now because of the simple Fact.0.99
00:41:50.000That his idiot car sales guy they wanted to get approved.0.99
00:41:54.000Like you know, i'll do your tax return.1.00
00:41:55.000No, no problem Jose, so he has him doing his restaurant business.
00:42:16.000A three million dollar a year business is a very tiny business in the grand scheme of things between all the corporations and small businesses that we have in the U.s.
00:42:24.000That are subject to examination, but a $3 million business, that's on top of your 1040, okay, now you're a bigger fish in a smaller pond.
00:42:32.000And there's more of those people around doing audits.
00:42:36.000And, you know, a guy will be itching to look at a business like that to make sure, you know, he could make an assessment and try to recover some taxes that weren't paid or some deductions that were taken that shouldn't have been.
00:42:47.000And these guys are the worst to deal with.
00:42:51.000So the long story short, guys, is like, you know, when you're an S Corp, You're a small fish in a big pond.
00:42:56.000But when you're going in as an LLC, you're a big fish in a small pond.
00:43:02.000And what ends up happening is you're going to get flagged for review and it's going to create headaches and stresses that you didn't need to because, and I think that's important that you mention that $3 million for a restaurant is substantial, right?
00:43:16.000But in the end of the day, when you compete with all these other big companies that generate way more revenue that are S Corps, you're not going to be, I guess, The weight of how much you make is not going to have as much weight where you're going to be flagged as much.
00:43:29.000So that's why, guys, it's so important to go S Corp.
00:43:42.000But no, I would say even grossing because, again, you just pull it off.
00:43:46.000If you're going to make $50,000 in gross and you're going to get $10.99 for that, just get it off of your personal income tax return and put it on a.
00:47:02.000Wangav says Since Steve had involvement with radiology, I'm in school currently to become an x ray tech while running my blue collar business.
00:47:11.000Do you foresee growth in the field, like others have told me, and what?
00:47:15.000What made techs at your company more hireable?
00:47:18.000That's a good question when it comes to x ray tech.
00:47:20.000What are your thoughts on that, Steve?
00:47:30.000Also, you know, showing up, you know, like we had showing up on time, doing a good job, making sure you're capturing a good image, be having good, you know, bedside manner with your patients.
00:47:39.000So, you know, you got to be easy with some of these people.
00:47:42.000They're in pain or they're old, you know, making sure that you're, You're handling them properly and getting a good image.
00:47:51.000But yeah, I can see the field growing.
00:49:42.000But you, you know, again, you're dealing, I don't know if you have commercial accounts.
00:49:45.000Those are more apt to give you a 1099, where that's going to be an issue.
00:49:49.000You know, but the personal residents, you know, like Mrs. Rothstein down the road where you plow her driveway, she's probably not, you know, she's giving you cash.
00:49:55.000You give her the QuickBooks invoice and she pays it, he pays it or whatever.
00:49:58.000They're not going to give you a 1099, you know, so you only have your bank statements to prove the income that's coming in.
00:50:04.000But the commercial accounts are more than likely going to give you a 1099.
00:50:10.000And again, guys, if you guys want to get your question in, if you're a member of OSS, only two bucks to get your chat read.
00:50:14.000And if not, it's going to be 10 and above.
00:50:18.000Obviously, you know, we have a limited amount of time, so we can't read every single super chat that comes in, or we can't read every single chat that comes in.
00:50:25.000So obviously, you know, vetting for the people that are the most serious.
00:50:28.000If you guys got a serious question, it's your chance to ask a very experienced accountant, my accountant, CPA, who runs his own business, very good at what he does, been doing this for decades.
00:50:38.000If you don't want to invest in that, then I don't want to tell you.
00:50:40.000Stay broke and keep putting the fries in the bag.
00:50:49.000Trying to get started in New Jersey with possibly a two to three family house, but the prices are pretty brutal $500,000, $700,000.
00:50:55.000I'm already saving up and working OT to be able to attain a property within a year or two.
00:50:59.000Ideally, I would like to stay and work in New Jersey within the next three to five years, unless my job ends up forcing me to move to Charlotte.
00:51:36.000Have you ever tracked, like, is the population even growing there or is it decreasing in these states?
00:51:41.000I know it went down for a bit because a lot of people moved down to Florida.
00:51:46.000But the barrier, I've always told people, man, the barrier in like, you know, New Jersey or northern New Jersey, closer to the city or New York in general, the barrier is very high.
00:51:53.000And like, you know, is the juice worth the squeeze?0.69
00:51:56.000I mean, you're going to deal with a blue state that, you know, is going to put the tenant ahead of you as a landlord.
00:53:22.000I think if you're going to go, if you're going to move to Charlotte, bro, look at properties over there and, you know, ditch New Jersey and New York unless you can find something really good.
00:53:30.000Do you ever consider moving back to Connecticut?
00:54:31.000Mr. Peanut out of OSS says, Mr. Gaines, I know this is off topic, but I have a friend who is a DACA recipient, as you probably know, there's no direct path to citizenship, not a green card for DACA.
00:54:46.000Get a good immigration attorney, especially with the Trump administration.
00:54:49.000Jazzy Tarhill says, Hey, Steve, I'm selling my house that I've owned for over five years.
00:54:55.000Will I be able to do a Section 121 to avoid all the taxes as income tax, or is that just for capital gains?
00:55:01.000So he's selling a house that he's been in for five years, or he's owned for five years.
00:55:06.000Will I be able to do a Section 121 to avoid all?
00:55:09.000The taxes as income tax, or is that just for capital gains?
00:55:13.000So you can exempt up to $250,000 worth of your capital gain on your primary residence, provided within the look back window of five years that you live in it at least 24 months.
00:56:01.000You know, this isn't the immigration podcast.
00:56:03.000I know a lot of you guys, you guys got to remember my profession was, you know, taking people's immigration rights away, not giving it to them.
00:56:10.000I'm always going to tell you guys, like, you know, When it comes to immigration, guys, get a very good immigration attorney.
00:56:15.000And then also understand that immigration is always contingent upon who's in office.
00:56:19.000Donald Trump's in office right now.1.00
00:56:23.000Like, I don't suggest putting in paperwork right now until a Democrat gets in.1.00
00:56:27.000If I'm going to be very honest and candid with some of you guys that are trying to, you know, improve your immigration status, you know, anytime there's a Republican in, it's a lot harder to adjust.
00:56:36.000Okay, Mother Farger says getting fourplex next year with VA home loan.
00:57:22.000STND says, hey, Steve, for a CRNA who was paid by a 1099 arrangement, can real estate be purchased under the LLC in that 1099 agreement and the cost appreciation?
00:57:33.000From those properties be deducted from the income of that LLC?
00:57:38.000Don't, don't, look, if you're a CRNA, that's one only business.
00:58:56.000You're opening yourself up for no reason.
00:58:58.000And then it's going to make your records keeping sloppy.
00:59:02.000And guys, I'll tell you guys this one thing, you know what?
00:59:05.000Someone asked earlier, what would I do different?
00:59:06.000I would have been a lot better with the record keeping in the beginning because I stopped buying property for about a year, guys.
00:59:12.000So that I can, like, you know, look at the PLs, look at how each house is performing, et cetera.
00:59:16.000I would have been more diligent on the tracking of the expenses so that I would have been able to uncover losses sooner and I would have sold these houses sooner.
00:59:26.000So every house that you acquire, like, start meticulously going through the financial records and making sure that each house is actually making you money because there's lots of little costs that add up quickly that you're not even aware of, right?
00:59:39.000Paying for water here, making a fix here.
00:59:42.000You know, replacing a stove here, all of this stuff adds up and cuts into your cash flow.
00:59:46.000So, if houses aren't performing, you got to be ready to get rid of it sooner than later.
00:59:51.000So, these houses, man, have been in the red for a while now.
00:59:53.000I've had them for, you know, two years plus.
01:00:02.000Some of the houses we're able to get out of underwater, but two of them we weren't.
01:00:06.000So, had I been a bit more aggressive with doing the PL sooner, aka profit loss statement, guys, that's what a PL is, I would have been able to identify that and get rid of them sooner.
01:00:15.000So, That's one thing I would say I would change.
01:00:19.000OSS Cog, we got a lot of questions here, so I'll fly through these.
01:00:21.000Advice for someone looking to buy a townhouse for two years, then rent it out, married with a kid on the way.
01:00:26.000So he's looking to buy a townhouse for two years, then rent it out.
01:00:37.000Yeah, sometimes you know, sometimes you got the rules with the HOA that you can't, like, oh, you're not allowed to rentals, stuff like that.
01:01:09.000So, me and Roger came up with kind of a matrix, man.
01:01:12.000So, we want 60K per year, if not more, and then a good credit score in the 700s, man.
01:01:17.000Credit score is by far the most important thing I've realized when it comes to tenants paying you because I've had tenants that make six figures a year and they still don't pay rent.
01:01:25.000And I still had to, I had to pick one guy that was like an airplane mechanic that was making like 150K per year because he still didn't understand.
01:01:59.000But also, renting to a family that's like a married with have a kid is typically, More often than not, they are going to be more apt to pay their rent because they have a family and the guy's working and stuff like that.
01:02:11.000So, those are always a good catch, too.
01:02:44.000That sounds like with your payouts or the property, it sounds like you're doing something, you know, like maybe like investing, advising, and stuff like that.
01:03:54.000You're not going to be able to convert it to an S Corp now that you've gone to the, you know, it's kind of functioning the same way as the S Corp.
01:04:00.000He says, My CPAY filed as a partnership instead of an S Corp the last couple of years.
01:04:04.000Even after I told him I want to get taxed as an S Corp, he's in the process of trying to fix his screw up and take care of it.
01:04:21.000So probably he's going to have to amend your return and change the entity status.
01:04:24.000And there's a couple of forms you got to, it's a process.
01:04:28.000But no, it's not going to raise any red flags.
01:04:30.000It's, you know, I wouldn't worry about it.
01:04:32.000It's kind of a pain that he has to do.
01:04:33.000Yeah, Albo, you need to do a consult with Steve immediately, bro.
01:04:36.000I know that you asked earlier for his contact info, but you need to do, you need to do this.0.84
01:04:39.000And this is the difference, guys, between having, An accountant that knows what the fuck they're doing versus an accountant that doesn't.0.64
01:04:44.000Unfortunately, accountants are kind of like lawyers.0.84
01:04:58.000Yeah, I mean, so yeah, um, yeah, this, these are things I, I really, really, really, really try to avoid, like, getting in this, like, make sure that because these are things that are a pain in the ass to unravel with the IRS.0.95
01:05:11.000It really is a pain in the ass, yeah, and you can get hit with penalties on it too, you know, on the partnership side because that could be, um, it's like $500 per, per, um, uh, I think it's $500 per partner per month up until a certain amount of time.
01:05:24.000So I've had like partnerships where they get like they forget their accountant forgets to put them on extension and then they, They go and file and they get an IRS letter saying they owe $12,000, you know, because there's like, you know, five or six partners.0.97
01:06:35.000If you're a brokey, do not fucking waste my accountant's time and send some stupid ass questions or whatever.1.00
01:06:41.000Like, you know, guys, I'm giving you guys access to Steve so he can answer some of your guys' questions.1.00
01:06:45.000But understand, like, this is a guy that runs his own firm.
01:06:47.000He's very busy, he deals with people that, you know, are serious about getting their money up and obviously running businesses and stuff like that.
01:07:08.000So, what I did was I literally said, okay, what would I want to put together for somebody that's young like this that needs these answers?
01:07:15.000Like, when I was them at this age, where so if you go on there, it's like these are cheap things.
01:07:20.000Like, you know, I'm not even looking to make money on these things, but go on there because there's like stuff that I have like the $500 CPA consult that talks about a lot of this stuff that we're covering and it's made in an easy format to read.
01:07:31.000I'm the type of guy, like, break it down to me like I'm a fifth grader, right?
01:07:59.000And like I said, anybody who's doing the chats on here that wants something or whatever, that you're helping out my guys, I'm going to help.
01:08:08.000Um, and I appreciate you coming on here because, like I said, it's like it doesn't even need you, don't even need the clientele.
01:08:13.000So, when you come on here and you help, I really appreciate that.
01:08:16.000Um, oh, this is for the community, let's get back.
01:08:20.000You know, you know, you know, my story with my son, okay, he's a young guy trying to, you know, I see these guys are like, it's like it's hard for them.
01:09:00.000He said, even though the construction company can escort all day.
01:09:03.000Send them back says, for Steve, just getting my business off the ground, how should I go about filing taxes throughout the year or wait until tax time next year?
01:09:11.000Haven't made any profit yet, literally just starting.
01:09:15.000So there's nothing that you need to do about filing taxes.
01:09:18.000It's just make sure that you have a separate bank account or a separate credit card if you're using a credit card for your, you know, fund some of the expenses.
01:09:31.000And then when you get, you know, and then just create, you know, get a tax ID number and whatever jurisdiction, go to the State Department of your state.
01:09:38.000There's a website for all 50 states and it's easy to do.
01:09:42.000All of them almost like carbon copy each other's website.
01:09:45.000It's basically you go in there, you file it for a profit or an LLC, you pay the fee, it tells you what you need, what information they need.
01:09:52.000First, you want to get your tax ID number.
01:11:20.000So, what you want to do is, um, there's two ways you want to do an offer and compromise.
01:11:24.000An offer compromise means basically if you add up all your assets, your assets would be your cash, the value like equity in your home, your car, your jewelry.
01:11:33.000You'll basically just add those things up like a personal financial statement.
01:12:51.000Maybe you're going to keep getting notices, but just throw them in the garbage because after 10 years, they can't collect on it and it wipes out.
01:13:41.000And just your man says, I'm in Austin, Texas, on track to make 200K this year with a goal of 230K cash, 40K stocks, and 25K crypto by year end.
01:13:50.000We talked about waiting until early 2027 to buy multifamily, but would buying Before year end, help reduce my 2026 taxes through depreciation.
01:13:59.000I also set up an LLC making $2K a month.
01:15:26.000And then you'll be like, oh, I need a new piece of equipment or I need a new car.
01:15:30.000So we'll plan ahead to make sure that we could take advantage in December.
01:15:35.000Where maybe you'll, you know, I have a lot of guys like they do construction, they'll pick up a new truck, you know, and then they get a big seven, you know, section 179 deduction on it or bonus depreciation right at the end of the year.
01:15:47.000But we always get to like probably by starting next month, October, we want to see where they're at and where they're going to finish.
01:15:54.000I'll be like, oh, you know, hey, Don, you're going to be like, you're going to be $500,000 profit.
01:15:59.000You know, you, you, you need any equipment, you know, need a new tractor or a truck or whatever.
01:16:04.000So then they'll have enough time to plan for that.
01:16:07.000To start looking on the market to purchase something or trade something in or swap something out, you know, um, those are the things that you can do right before the year end.
01:16:16.000It's typically equipment and like car purchases and stuff like that.
01:16:19.000All right, um, young Dolph says, uh, about to be 27 general contractor.
01:16:24.000What are some smart investments I should be putting into about 70k to 75k a year currently?
01:16:28.000And I do side jobs one time while I was trying to hit 100k this year, um, bro.
01:16:32.000Focus on making more money and then get yourself your three to 12 month um emergency fund, then go ahead and invest after that, bro.0.99
01:16:39.000Like, you guys want to invest, and y'all niggas have no money, so make sure you have some.0.96
01:17:00.000Guys, from this point forward, it's going to be five and up on OSS because, like I said before, I want to make sure that I get the people prioritized.
01:17:06.000Sirocno Diddy on Castle Club says, Question I recently inherited my grandfather's house.
01:17:10.000It's older because that requires a good bit of work to get it up and ready to rent.
01:17:15.000Should I create an LLC for it now or wait until I have fixed it up and renting it out to create an LLC?
01:18:56.000In college, a realtor making $100K a year with $100K saved.
01:18:59.000And I'm also a content creator planning to move to Miami after graduation.
01:19:02.000I want to invest in real estate now for both wealth building and tax benefits, but I'm worried about going out of state while living in California.
01:19:09.000If you were in my position, would you invest out of state now or wait until moving to Miami?
01:19:15.000I am not a fan of investing out of state until you know what you're doing.
01:19:19.000I think you should buy your first property in the state that you're in.
01:19:21.000So just so you can kind of, you know, do a walkthrough, understand what it's like working with a real estate agent, looking at a Looking at a property, you're a realtor, so you already know a lot of this stuff.
01:19:30.000But being a realtor versus being an investor are two completely different worlds, man.
01:19:34.000So I would say try to get that first property in your state, or you could wait until you get to Florida to get it.
01:19:41.000But the market here isn't that great either.
01:20:28.000You know, let me just deal with the elephant in the room.0.97
01:20:30.000A lot of you guys, Don't have the discipline to come down here, okay?
01:20:34.000Because you'd go to your first party and then you just start acting crazy, you spend your money.1.00
01:20:37.000I can't tell you how many of you 20 year olds come here and you guys just fuck your lives up.0.99
01:20:42.000So, maybe it's not for you to come here yet unless you have, you know, unless you're extremely disciplined and, you know, you don't do drugs, you don't do alcohol, you're not going to run around and chase chicks all the time and party because you guys come down here and you guys go nuts.0.97
01:20:55.000So, a lot of you guys come here and just end up going broke in a couple of months.
01:21:00.000Gio says, Martin, thanks for the money Monday.
01:21:01.000My 28 year old brother runs a free, no, a tree work co in upstate New York for three years, went from zero to 20 to 40K profit last summer, but blows it all on machines.
01:22:00.000They'll put that on your resume as long as, you know, even it's like file paper, doing some errands or whatever, helping out with some returns, you know, just say, I'm just here to do some, you know, create your own, you know, I guess your own, what do you call it, experience.
01:22:15.000Friend, we used to go, what did you call that?
01:22:21.000And you build your resume that way and you're going to learn too.
01:22:23.000You're going to learn a lot more than you're going to learn sitting in the classroom.
01:22:26.000Um, the other thing is learn as much as you possibly can about Ai and all the tools.
01:22:32.000Okay um, that you can, that you can apply to accounting, whether it's summarizing bank statements, bank reconciliations, um answering um, you know, like replying to, like IRS notices, whatever you, you um like.
01:22:47.000Just do a deep dive in there and that's going to make you more employable, more employable for the future.
01:22:53.000All right, Ice Cold says, Hey, Steve, I'm currently pursuing an accounting degree.
01:22:57.000And eventually, he wanted to be a CPA.
01:22:58.000So, he wants to be exactly what you're doing.
01:23:00.000Do you think being an accountant is a good career in the next 50 years, or is it one of those careers that will eventually be replaced by AI?
01:23:07.000I mean, a lot of what we're doing, like I said, is going to be replaced by AI.
01:23:13.000I mean, you know, I think what's the stat is like 50% of white collar work, you know, whether it's like legal work or accounting work or, you know, financial analysis.0.61
01:23:24.000You know, things of that nature are going to be done by AI because it's going to be able to do it quicker, faster, and better.
01:23:31.000So it's right now for the future is like, what can you do to learn as much about, you know, right now you could create like, I'm thinking, I'm toying with the idea too, because I've been really involved with AI right now for the past couple of years in building agents.
01:23:46.000So I'm thinking, toying with the idea of like setting up a company to go to other firms to show them how to like set up agents for their specific firm.
01:23:57.000And getting paid a consulting fee for that.
01:24:01.000And then there'll be less people that I can run right now that make it seem like I got 20 people working for me versus four or five, just with setting up AI agents.
01:25:16.000Chabazz, W Brothers, OSS, I'm working on three LLCs with contractors to fill in positions of work I am not qualified to do.
01:25:22.000I'm a mechanic and body technician, but I want to know if I can get a startup loan to have capital to buy a house, base, and equipment for the businesses.
01:25:29.000So he's saying he's working on three LLCs with contractors to fill in positions of work I am not qualified to do.
01:25:37.000I'm a mechanic and a body technician, but I want to know if I can get a startup loan to have capital to buy a house and equipment for the businesses.
01:25:43.000I mean, you can get a startup business loan through doing like an SBA.
01:25:50.000The process is like a little bit more stringent and you got to have a business plan and you got to go to the right bank that processes those particular types of SBA loans.
01:25:59.000I mean, you could do the research in your area.
01:26:13.000But sometimes the SBA, you know, they want to know, The sources and uses of cash.
01:26:17.000So they're going to ask the use of cash and they might want all of it to be injected in the business as far as having like working capital in there.
01:27:04.000But, yeah, SBA loans are good because you get really good interest rates on it because it's the government.
01:27:09.000EJ says, Hey, Mark, question for Steve.
01:27:10.000I have a property that was gifted to me, a single family household.
01:27:13.000Should I do an LLC on that rental property once expand eventually?
01:27:17.000I would say, yeah, I would say, yeah, LLCs work for houses, guys, very well.
01:27:24.000We got here Sam says, Steve, what happens if you don't file for the first two years because side business was profitable after paying for expenses?
01:27:32.000For some context, Shopify e commerce business recently started profiting, so just started filing.
01:27:37.000He has an FT job on paying tax right now.
01:29:01.000Okay, so if it's just one property, rental property, you don't really have that many transactions.
01:29:06.000You got one rental check every month, you got one property bill, maybe two, depending on the jurisdiction.
01:29:11.000You got your utility every month, you got your basic stuff every month.
01:29:14.000So, there's not a lot of transactions that you need a bookkeeper for.
01:29:17.000It's when you get multiple properties like Myron has, right?
01:29:19.000Yeah, where you know, you got more than 10 and you got 10 rent checks and you got 10 you know, property bills, um, and then you got 10 utility bills and you got 10 insurance bills, um, things of that nature.
01:29:33.000You got multiple tenants coming in and out, and you know, um, stuff like that.
01:29:38.000Um, so for the one property, I wouldn't say no, just get.
01:29:43.000The best thing you can do is to do everything out of one bank account for that one property, whether it's all the rent checks go under and all the bills get paid out of there.
01:29:59.000Jay Hearn says I do payment processing, and a business asked if charging a percentage to customer for using a credit card, does the total amount become taxable if the percentage markup is meant for a processing fee?
01:30:40.000It doesn't matter if it's processing a fee or it's a markup, it's a markup, a process fee, it's taxable income.
01:30:45.000If you're charging them for that, If you're using your credit card to pay for their payroll and they're reimbursing and you're saying it's a processing fee versus like the markup and the interest, either or, you could call it whatever you want.
01:30:56.000It's still income to you, so it's taxable.
01:31:11.000So you just basically go right on your State Department, open up an LLC.
01:31:15.000Typically, what I do is, you know, like you did, is like, you know, whatever the address is.
01:31:19.000Nobody's going to really have that name.
01:31:20.000So it's like, oh, one, two, three, Van Sutton, you know, circle, wherever it is, LLC, and pay the fee and get a tax ID number for it, and you're good to go.
01:32:05.000So, yeah, if you're going to be a 1099 contractor, just that's a lot of money.
01:32:09.000So, yeah, definitely because you got your drive time, you got your phone, you got your computer, you got your courses, you got a lot of expenses related to that activity.
01:32:23.000So, for the 6,000 pound vehicle write off, as I just started my business and want to use another vehicle outside of my personal, do I need to wait after a year to do this to show revenue, or how does that work?
01:32:57.000I'm a blue collar worker under a W 2 trying to build my own plumbing HVAC business.
01:33:03.000In this business, you need to buy a lot of equipment to be able to actually run the business.
01:33:06.000Is it a good idea to start an LLC or S Corp to buy equipment little by little under your new company and build up your arsenal before you go all in?
01:33:13.000So he's asking if he should start up his, it seems to be LLC slash, andor, well, it's going to be an S Corp.
01:33:19.000Should he start that and then buying the stuff under it so he can track it?
01:33:26.000But I also do something too, and I don't know because I'm not going to pretend to know your business and what clients you have and how profitable you can be and whether you have clients or whatever built in.
01:33:35.000But go easy on the buying of the equipment.
01:33:38.000Don't get what you don't need until you need it.0.99
01:33:42.000I call it just don't put the cart before the horse because all of a sudden you got a bunch of shit out there that you're paying on.0.92
01:33:46.000I don't know if you got loans or you're paying for cash and then you don't need it and you're sitting on it for a while.0.94
01:33:53.000And then finally your business catches up to it in a year or two.
01:33:57.000So get what you need organically as you need it.
01:34:00.000Just like you guys did the same thing.
01:34:03.000You guys went in on everything, but it took off.
01:34:05.000But you got more and more as you started getting more money.
01:34:08.000You say, hey, I got a little bit extra fresh.
01:34:29.000What jobs do you recommend to a 26 year old?
01:34:31.000I'm working as a swim instructor, a swim instructor, and lifeguard, making about 50K a year right now, want to go back to school.
01:34:36.000You're probably going to have to pick up another job, bro, if you can't move up in that field.
01:34:40.000And if you're going to go back to school, make sure you major in something that's going to get you a job.
01:34:44.000A lot of you guys, you cannot afford to go to college.
01:34:47.000I mean, Steve, I don't know how you feel about this.
01:34:49.000You know, for me as a millennial, and I know you're a bit older, like we were told you need to go to college.
01:34:53.000If you don't go to college, you're going to be cooked.
01:34:55.000For you young guys, you know, college has been oversaturated now, where like you can still make money without going to college.
01:35:01.000So, like, I think it's, you know, working the other way where you would, I remember it was common for, you know, for me, my demographic, you go to school undeclared, would not know what your major is.
01:35:16.000I mean, you know, you think of something, you know, pick up one of the trades.
01:35:21.000I like that the most, you know, if, you know, electrician, plumbing, carpentry, construction, even a GC license where you can, you know, manage your own projects for the foreseeable future.
01:35:33.000That is kind of where it is for these young men.
01:35:48.000I have doctors that are making $300,000, $400,000, and they have like a shit ton of debt, eight years of school, residency, and all that stuff.
01:35:56.000And then you got these linesmen that go out there in a couple of years.
01:36:07.000Since the side income caps out around $30K a year, should I dissolve or shut down the S Corp starting next year or should I restructure it?
01:36:24.000I think we answered some people asked questions before, but they didn't hit the minimum.
01:36:29.000Guys, if you don't take your, if you're going to, you know, not pay attention and look at the menu here about what the minimums are, we're going to read chats all day.
01:36:36.000So I told you guys, if you're serious about it, you'll send in what it is.
01:37:32.000If you guys want me to do this every Monday, I could maybe do this with Steve when he's available because it seems like you guys got a lot of value from it.
01:37:38.000And a lot of you guys have a lot of financial questions and some very good questions, too.1.00
01:37:42.000Some of you guys can't read instructions because you're fucking stupid.1.00
01:37:45.000But for the smart ones, you guys asked a good question.1.00
01:37:47.000So I also have another opportunity for guys that want to get involved in making some money on the side.
01:37:53.000I'm not going to go into depth with it right now because we had a group of about close to 20 guys.
01:37:58.000Out of that 20 guys, I want to say like three of the guys did well with it, and then the other guys I still have to like build more training for them, um, which I'm in the process of doing, but that's going to be done by the next couple weeks.
01:38:11.000So I'll roll that out the next time you want.
01:38:13.000Where it's not cost these guys nothing, and we're going to be training them all individually via Zoom.
01:38:18.000So they just call in on a telegram, and we're going to do a Zoom call.
01:38:22.000Me and my partners are going to train these guys on how to identify clients, um, or these their specific tax strategies.
01:39:12.000No, any of those books you want or whatever you guys did, you know, super chats or whatever with these guys.
01:39:17.000Um, let me know and I'll send you guys that stuff.
01:39:18.000But that'll be the next time I come back on.
01:39:21.000I want to get about a hundred guys in eventually, like within, you know, the next like six to eight months, um, in our, um, academy to do that.
01:39:31.000And, um, it's pretty lucrative with the commissions and stuff that we're offering for these guys.
01:39:35.000So, uh, it's something that we're going to be.
01:39:37.000And I just need to do a better job on building the academy, like giving the proper training so they feel confident going out there and talking to people.
01:39:44.000So I feel there's like a little, they're not feeling confident about to talk to these guys.
01:39:48.000And it's kind of like a little bit of a hindrance.
01:39:51.000So, but we're working that out right now.
01:39:58.000I'm literally opening, you know, giving you guys access to him.
01:40:01.000Obviously, like I said before, he works with, if you guys want to retain him as the actual accountant, he, you know, works with higher net worth individuals.
01:40:07.000But for some of you guys, you know, book a consult with him, talk to him.
01:40:11.000It's not going to be cheap, but you got to put your money where your mouth is.
01:40:14.000And quite frankly, you brokeies, get your money up and get a consult with them if you don't have the money right now.