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Updated over 6 years ago on . Most recent reply

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James V Sciales
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My CPA is very vague.. is this normal???

James V Sciales
Posted

Hello I am a young entrepreneur. 

This year I have done pretty well and am blessed and burdened to have quite a tax bill coming in April of 18 looking to be around 40k 

When asking my CPA what I can do with the money to lessen my tax burden he is very vague and unhelpful. Now i am new to having a CPA so maybe that is not his job. 

My first thought was to get into real estate however, from what i understand most expenses with real estate have to be depreciated over time. So therefore maybe i shouldn't be looking at real estate as an investment to help with taxes for this year. Is this true or is there another way? Thank you guys. 

Most Popular Reply

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Arlan Potter
  • Investor/Accountant/Builder
  • Meno, OK
918
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1,603
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Arlan Potter
  • Investor/Accountant/Builder
  • Meno, OK
Replied

If you have income it is difficult to avoid paying some taxes, and tax evasion can get you in big trouble. Taxes are a difficult issue and are hard to avoid from the back end. Prior planning can help some.
Also expenses are not depreciated over time. The cost of a rental is depreciated over time. That depreciation is a non-cash expense that does save on taxes.
Your CPA should walk you through this.

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