Wealth Building DNA

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Category Archives: Reduce Tax Liability

How do your beliefs affect your tax bill?

What are your beliefs about taxes?

Strange question but think about it. Business tax deductions, asset protection, and high net worth tax planning strategies are easy to deal with compared to…. YOUR BELIEFS!

What are beliefs? A state or habit of mind in which trust or confidence is placed in some person or thing. The very fiber of our beliefs drive our results through the words we speak, the words we hear, the actions we take, the habits we create, and the rules that are inflicted upon us.

At times the belief systems we create will generate success, at other times they will produce failure. It is like a mathematical equation, there is a formula and each time it will result in the same answers.

Consider the story of a king crab fisherman in Alaska. The new crew member saw the stillness of the ocean, and the sudden ferocity that created great instability. Concerned about the catch, he asked the Captain why they did not place a lid on the barrels containing the crab.

The captain responded to crewman by saying: it’s simple, when one crab attempts to crawl out of the barrel and back into the sea the other crabs pull it back down. There is no escape.

Beliefs can impact us the exact same way. As a child you may have been taught that “money doesn’t grow on trees” or “we can’t afford that” or “keep dreaming, but it’s never going to happen.” These beliefs can propel and underpin all of our thinking and the barriers we place every day on our success.

Top 10 Strategies for Building A Legacy

Top 10 strategies Legacy Wealth Building uses in our secret treasure chest of tax planning

FROM A FAMILY LEGACY OF ONE HUNDRED MILLION DOLLAR PLAN

 

  1. The Four I’s™  Inflation, Interest, Income Taxes, Insurance
  2. Active business entity vs. passive business entity
  3. Beating the 4 I’s
  4. Recapturing the 65% of your income that’s currently going out in taxes and interest paid to financial institutes
  5. Setting your salary – what’s the big deal with this?
  6. Up streaming income
  7. What happens when your P&L says you have the cash but your bank account says otherwise
  8. Multiple corporation strategies
  9. Growing  100% of your money in tax advantaged environments
  10. Getting the right professionals to support your financial goals and objectives

Coming soon… The answers to each of the top 10!

To your wealth & success now,

Gabby Huguenin

Powerful Retirement Plan For Small Business Owners

Solo K is A.O.K for Small Business Owners Seeking Lower Taxes and Retirement Contributions.

If you missed out on the millions of bucks sent to the big corps in Uncle Sam’s stimulus program, don’t fret, you still have some options (Although, they don’t involve big financial handouts).

The Solo (k) commonly referred to as Solo K is a retirement plan set up for small business owners. Small business owners drive this economy, (in spite of what the lobbyists in DC would have us believe). As a small business owner, your tax liabilities are the most threatening thing to your financial well being right after the economy. Learning how to reduce your tax liability should be a part of every small business owner’s wealth building strategy. Knowledge is power. Let me re-phrase that, knowledge is money! Continue reading →

Don’t Be Dumb… S.M.A.R.T. Goals Build Wealth!

I spend a lot of time helping very wealthy people keep more of their hard earned money and…

even though I spend endless hours talking about reducing tax liability, creating asset protection strategies, and finding ways to reduce taxes from double digits down to single digits, none of that really matters unless my client has clear goals. The one thing that separates successful people from everyone else is that the wealthy ones are clear about what they want. So, here’s a little tool you can use to begin your legacy wealth building journey.

S.M.A.R.T Goals.

Setting goals is a powerful way to bring your dreams into the real world. Without a vision of where you want to be, how will you know when you get there? In my new Legacy Wealth Building workbook, I give you 60-plus pages of ways to visualize your dream and get there. One of the most important aspects of achieving your dreams is committing them to paper (sign up for the book now, it’s FREE).

But sometimes sitting down and writing out a goal can be difficult. To make it a little easier and more likely to come true, use this simple formula that’s been around for a long time. It’s called a S.M.A.R.T. Goal.

It’s a simple acronym that helps you remember all of the elements needed to create realistic and meaningful goals. Print this little graphic out and sit down with your family and/or business partners and discuss your goals within the context of a proven formula. It’s not any more complicated than that!

Have a prosperous day!

Gabby

A Lawyer Who Represents Himself Has a Fool For a Client

We love lawyers. We hate lawyers.

But when you need a good one, it’s probably not you! To protect your assets and secure your business you must build a wealth team around you.

Being successful in business requires the ability to create leverage. And that means finding coaches, mentors and advisors who know more than you do.

The people that know how to capitalize on the skills of others are the ones happily reaping the benefits of the financial advice received, or creative tax planning now implemented, or are sleeping well at night.

They are the ones that know that their assets have been protected for their lifetime (and beyond). They are the ones who have sought out the best coaches, who are masters at creating wealth and who know that there is more than one recipe available to create a perfect dish.

“The more you learn the more you earn.”

Wealth building specialists are not hard to find, just hard to duplicate! They, like doctors or lawyers, have dedicated their lives to learning everything there is to know about making your money work for you. They keep up-to-date with all the latest tax code changes, create dedicated wealth building courses, and operate solely on wealth building principles that are proven to work. It is like they possess wealth building DNA!

Why would you jeopardize your future by not creating the right knowledge base for your own situation?  There are some basic rules that apply to us all. Maintaining accurate “books,” filing your taxes, etc. These are “no-brainers.”  However, it takes more than the basics to create and maintain a healthy and thriving business presence.

Looking for that coach or mentor or advisor that will provide you with everything you need to succeed is as necessary as an oven is to a chef. You simply can’t do without it and experience any level of success!

At Legacy Wealth Building, LLC we work to create leverage teams. Teams that bring more expertise and a professional perspective to any long-term wealth building strategy.

There are two big threats to your financial future.

1. The economy

2. Taxes

While all of us are concerned about the economy, there’s not much one individual can do about it. So stop worrying about number one and focus on the second one, taxes. Taxes are the single biggest threat to your financial future that you can actually do something about.

We don’t give legal or financial advice on this blog because we are all about education. The more you learn the more you earn. And the more you earn, the more you need to know how taxes are cutting into your legacy.

If you want to reduce your taxes in 2011 please give me a call!

Have a prosperous day!

Gabby

208-263-7202

7 Different Ways To Look At Setting Goals

Let’s get right to it.

Forget those New Year Resolutions! Let’s focus on goals and revising those goals every day, not once a year.

And… one more thing, let’s go from Goal Setting to GOLD Setting! We’re talking about our financial health here. Wealth building doesn’t happen by itself. Creating financial freedom requires thought AND action.

I’m all about cutting taxes and reducing your tax liability but before we get to that, you have to know where you’re going!

Here are a few different ways to look at your goals than you might have heard from other goal setting experts!

1.       Embrace the Man/Woman in the Mirror! – Literally, check the face in the mirror. Do you like what you see? Not just your looks but your smile? It’s tough to reach your financial goals if you don’t like the person in the mirror. If the person looking back at you isn’t everything you thought she/he should be, this is the perfect time to get a picture going of who she can be!

2.       Enthuse it or Lose it! – If your enthusiasm has faltered and your goals are not that exciting to you, then change them or turn up the heat. A little passion goes a long ways. Look back on those successful times in your life and make a list of the “Success factors” that were taking place when you were enthusiastic about what you were doing and achieving. Which of those factors can you apply to today’s situation? How can you re-ignite the passion that has helped you overcome obstacles and achieve goals in the past? Turn up the heat!

3.       Tune up Your Internal Combustion Engine! – All success starts from within. I believe it’s so important to have a coach, a mentor, an inspirational person to push and nurture you but more importantly you’ve got to allow yourself the quiet time once in a while to go within and take note of where you and your heart are at. Quite time is refueling time. Schedule it.

4.       Go Extra Miles With Extra Smiles! – Give that little extra. Push just a little more. Add another 10% and you’ll be amazed at how your goals can turn to gold much faster. While competitors quit at 100% you can pass them at 110%. Add a few smiles to your effort and you’re goals become a lot more fun.

5.       Walk Then Run! – Go after your goals in bite sized chunks. You don’t have to do it all today. But… consider this: Read one book a week and you’ve read more books than most Americans do in a decade. Learn one new skill each week and you are miles ahead of everyone else. Break down your goals into little steps that are easily achievable and be consistent with it.

6.       Acknowledge the Pain! – Marines believe that no pain means no gain. Maybe. If there is pain, listen to it. If there is no pain and life is totally satisfying then your motivation to change might be small. You don’t have to have pain to create gain but getting out of your comfort zone may be a helpful way for you to start making the changes you need to get closer to the goal, I mean gold!

7.       Axe the Tax! – Simply put, don’t pay too much in taxes when you don’t have to!

Call me if you want to lower your taxes in 2011! Learn more about our coaching plans and let us help you achieve your GOLD!

208-263-7202

Thanks!
Gabby

Die Now, Save Money! Estate and Gift Tax Law Changes for 2011 and 2012

While some women stay up late at night reading romantic novels, I like to get under the covers on a cold winter night and read IRS Tax Code! There are tons of changes in 2011 and 2012 tax laws you should know about. If any of these rules, laws and accounting gibberish confuses you, don’t feel bad, be glad you have strange people like me to help! Drop me a note or sign up for one of our classes and we’ll help you learn how to reduce your tax liability!

Here we go Again! Estate & Gift Tax Law Changes for 2011/2012

But before we get to that, please note the new provision for wages earned in 2011 only:

Keep in mind, these are condensed, generalities of some of the tax law changes for 2011 and 2012 you should be aware of! For remuneration received during 2011, employees will pay a whopping 4.2% Social Security tax on wages up to $106,800 and self employed people will only pay 10.4% Social Security self employment taxes on that self employment income up to $106,800. Luckily, Medicare tax rates are unchanged.

Now, about that good old death tax! Estate & Gift Tax Law Changes for 2011 and 2012

  • A $10,000,000 exemption! Yeah. We like that part.  Increased Estate Tax Exemption and Reduced Top Rate.  The estate tax exemption in increased to $5 million and the tax rate on the excess is reduced to a mere 35%. ( Code Sec. 2010(c) , as amended by Act Sec. 302(a)) O course, the $5 million exemption is per person. Thus, there is a $10 million exemption for a happily married couple. If you don’t have the “happily” part then it’s still $10 million. Plus, there is a new portability feature for married couples on the go.
  • Here’s a little boost. The gift tax exemption increased. It is now unified with the estate tax exemption and is increased to $5 million.
  • Portability of Unused Exemption between Spouses. This new provision adds the unused $5 million exemption of a deceased spouse to the $5 million estate tax exemption for the surviving spouse allowing up to $10 million to pass to the family without the need for credit shelter by-pass trusts.  Yet, not all by-pass trusts should be definitely be eliminated since the income from such trusts need not accumulate in the survivor’s estate. The appreciation of the assets in such a trust is not included in the survivor’s estate.
  • Template for the future. On the flip side, families not expecting their assets will ever exceed $10 million need not have trust provisions in their estate plans and do not need to file trust income tax returns. To receive this tax benefit, an estate tax must be filed for the first spouse to die, even though one would not otherwise be required.  Even though this may act as a template for future tax laws, it does sunset in two years. Since there is little certainty about how these new laws will fare beyond the next two tax seasons, you should be reluctant to abandon estate plans exceeding $1 million assets.
  • This is the time for creativity and flexibility. This is the time to design options and backup strategies into plans to be prepared for future changes in the estate tax laws.
  • Fifty states – fifty ways. State-by-state estate and estate taxes will be a moving target in making solid estate-planning decisions.

Drop me a note or sign up for one of our classes and we’ll help you learn how to reduce your tax liability!

Have a prosperous day!

Gabby Huguenin

Wealth Coach

208-263-7202

Apocalypse 2012 Postponed Due to Extended Tax Breaks

Extended Tax Breaks Providing Tax-Cutting Opportunities!

According to MY calendar, not the Mayan’s, the only apocalypse you’re going to experience is the collapse of your cash flow and the raiding of your pocketbook if you don’t take advantage of your legitimate tax breaks! Remember, I always say…

“Plan like you’re going to live forever but live like this is your last day!”

Now, here are a few more tax tips to discuss with your tax reducing professional. And, if you don’t have a tax-reducing-professional, we should talk!

1.       Deep under Sec. 101 of the now famous, 2010 Tax Relief Act, the tax rate schedules for individuals remain at 10%, 15%, 25%, 28%, 33%, and 35% for a glorious two more years. All the way through 2012. Furthermore, the size of the 15% tax bracket for joint filers and their qualified surviving spouses remains at 200% of the 15% tax bracket for individual filers through the tax year of 2012.

2.       The standard deduction for you married taxpayers, filing jointly, and of course qualified surviving spouses, remains at 200% of the 15% tax bracket for all individual filers through 2012.

3.       There is no 3%/80% limitation on your itemized deductions for both 2011 and 2012.

4.       Parents rejoice! The $1k child tax credit has been extended and allowed to be used against regular income tax for two years, through 2012. But wait, there’s more! The formula for determining refundable child credit, with the earned income threshold of $3k (but not adjusted for inflation) is also extended for two more years, through, yup, you guessed it, 2012!

5.       Go back to school! Why? Because numerous education incentives have been extended two years. Nice incentive to graduate early?

6.       Uncle Sam generously boosted AMT exemption amounts for 2010 and 2011.

7.       Here’s a pile of nonrefundable personal credits. For example:

a. Dependent care credit
b. Credit for disabled and elderly
c. Child credit
d. Interest credit on certain home mortgages
e. Hope Scholarship and Lifetime Learning credits
f.  Non-business energy property credits
g. Residential energy efficient property credits
h. Plug-in electric vehicle credits
i. Alternative motor vehicle credits
j. And there’s more!

I don’t want to take all the credit but you should! Take your credits where you can get them! If you don’t have a money-saving, tax-cutting plan in place, you need to get with our Axe the Tax Program! It’s very simple.

We show you how to cut your taxes, legally, ethically, safely, and quickly to put more glide in your stride, more pride in your ride and more fun in your mun! Okay, that last bit was slightly over the top but my point is – Don’t pay taxes that Uncle Sam says you don’t have to!

Most American’s (especially, busy professionals with great cash flow) pay way too much in taxes because of three reasons.

1.      They don’t know how to reduce their taxes.

2.      They don’t have a plan to reduce their taxes

3.      They don’t have someone they trust to guide them to reduce their taxes.

None of those reasons is acceptable unless you like throwing away $10,000, $50,000, $500,000 in unnecessary taxes!

Remember, the above info is generalized and just for educational purposes. Everyone has a unique situation so talk to your tax planning professional before you do anything.

But REMEMBER! We put the AX in tAX. Please drop me a note if there is anything I can do to help you stash more cash! More tax saving tips from an earlier post.

Keep More – Leave More

Gabby Huguenin

208-263-7202

HURRY! The Tax Man Goes Retro! Tax Savings for 2011 Only!

The Clock has Been Turned Back on Certain Taxes but not for Long!

In my ongoing Axe the Tax campaign, I have been asked by a lot of doctors and other clients what some of the new tax changes will mean to their tax-reduction strategies.  It may seem a little strange but Uncle Sam really does give us ample money-saving opportunities to lower our taxes.  Unfortunately, the tax gods tend to make things a little too complicated for busy small business owners, doctors with thriving practices, and other mere mortals to grasp.

There are tons of new tax deductions available for the tax enlightened out there. So, if you have not been enlightened yet, let me tax-enlighten you a bit! Here are a few Tax Tips to look into and discuss with your tax advisor and/or CPA right now because they are going fast! Literally.

Retroactively Reinstated Tax Break – Extended through 2011

The following tax breaks for individuals that came to a screeching halt at the end of 2009 are back! They’ve been extended through the end of this year. Not perfect, but not bad! Take ‘em while you can get ‘em!

1.       The $250 above-the-line deduction for certain expenses of our beloved elementary and secondary school teachers. Yeah! They deserve a little extra help!

2.       The election to take itemized deductions for local and state general sales taxes instead of the itemized deductions permitted for local and state income taxes.

3.       An increased contribution limit and a carry forward period for contributions of appreciated real property for conservation purposes (may include partial interests in real property).

4.       An above-the-line deduction for your qualified tuition and other related expenses.

5.       This one’s BIG!  URGENT- The provision that permits taxpayers aged 70 ½ or older to make tax-free distributions to charities from their Individual Retirement Accounts (IRA) in amounts up to $100k per tax payer per tax year. In addition, those individuals will be allowed to treat their IRA transfer to charitable organizations during January of 2011 as if it was made back in 2010. Retro is good! Talk to your tax advisor today!

6.       The treatment of any mortgage insurance premiums as a deductible of qualified residence interest and the exclusion of 100 percent of the gains on certain small-business stocks.

7.       Retro-refrigeration news: The energy efficient appliance credits may apply but they will be in new amounts and with some new requirements.

8.       The Code Sec. 25C credit for energy-efficient improvements made to existing homes. Reinstating the credit as it existing prior to the passage of the American Recovery and Reinvestment Act. The standards for which property is eligible under Code Sec. 25C have been updated to reflect improvements in current energy efficiency standards.

That’s the retro news and the tax-saving views from here! The clocks have been set back for a little bit so check with your tax pro and find out which way to go. The list above is far from complete but these are all tax-saving opportunities you should be aware of. Chat with your advisor or give me a call!

Understanding how to use the tax rules to your advantage is what I teach my students in a variety of programs. Find out more about our coaching programs and let’s Axe the Tax from your life! I’ll cover more on the tax changes soon but move quickly, some of these tax savings are only good for January 2011! Here’s more info on tax extensions.

Have a prosperous day!

Gabby Huguenin
Wealth Coach
208-263-7202