New Member Greater Detroit Area

[Paul Yousef]

Hi BP community I just want to start off by introducing myself to everyone and I thank everyone for your contributions in advance. My name is Paul Yousef from the greater Detroit Area. I've been on bigger pockets for a few months now and gained a ton of knowledge about real estate investing. I currently don't own any real estate except for my home. I also own a business that nets $500k+ annually, and the nature of the business has little to no opportunity for deprecation and amortization so I'm stroking a $250k+ check to the IRS every year. I spoke to my CPA today and he informed me that I'll owe $400k in income taxes this year. Frustrated to know that 50% of my income is going to taxes, I'm thinking how can I grow my business and create more jobs when 50% of profits are taxed? I Then asked my CPA how I could save money on taxes and he tried lecturing me on cashflow. I then asked him how real estate investing could help and that I know people that are making fortunes and paying little taxes (hoping he would offer some advice), and his answer was laughable, he somehow tried justifying that stroking a check for $400k in taxes is better than real estate investing and this was his response... "even though real estate investors make a lot of money, they end up having to pay it all back with capital gains, they'll have to pay the piper sooner or later" I then thanked him for his time and ended the call. I immediately realized that my CPA is not a tax strategist and he will never help me achieve my goals. I would appreciate any advice on a tax strategist that can help me reduce income tax liability and help begin in passive real estate investing.

[Daniel Hyman]

@Paul Yousef

I had to read your post several times as I thought my eyes were playing tricks on me. I'm shocked at how that conversation went. I trust that you'll find tremendous tax saving opportunities simply by hanging around the BP forums, and even more so by engaging a real estate savvy CPA. 

Welcome to BP.