All Forum Posts by: Kevin Grove

At least with Quickbooks Pro Desktop, you can use the check window to record the entire purchase HUD with as much detail as you want. For a sale HUD, you should be able to use the deposit window, though I haven't tried that. Or you can do a general journal entry for either transaction.

The CPAs that are in the WealthAbility network have all been been trained by Tom Wheelwright personally. So it's not quite like they just refer you to anyone.

The value is they can often lower your taxes - permanently. The tax savings should more than pay for the fee in the first year, I understand.

Also, I believe their fee includes a lot of training to educate you on how to minimize taxes.

At what point can a business deduct a reimbursed expense: On the date incurred or on the date reimbursed?

Example

I use my personal credit card to pay for some business expenses at the end of 2019. The business reimburses me in 2020.

Should the business deduct those expenses in 2019, when they were originally incurred, or in 2020, when the business reimburses me?

Would it make any difference if my business uses the cash or accrual basis?

@Brian Eastman

This is the best explanation I've heard of what a checkbook IRA actually is, and how it is much better than a standard SDIRA.

I'm on the wait list...it's a 1.5 hr drive, so hoping to find out if I can get in before making the drive.

@Wa Chan

Mathematically, the tax is exactly the same, whether you pay tax on the seed or the harvest.

Variables:

• Tax brackets now vs. at retirement
• Tax rates now vs. at retirement
• Early withdrawal penalty

Brackets: It is unlikely your retirement tax bracket will be lower, unless you plan to retire poor. Keep in mind you won't be "poor" in the eyes of the IRS, as you will be making a high income because you are forced to withdraw your entire balance within a narrow time window. Also, you don't know what the tax brackets will be at retirement. You can look back at historical brackets and see that they have varied wildly.

Rates: Not too hard to predict that tax rates will likely increase. See the documentary The Tax Train is Coming. I'd rather pay 50% tax now than face the possibility of ?? to ???% tax later. Lookup "The Willie Sutton Rule". I would be concerned about the security of a large IRA in the future.

Penalty: 10% is a small price to pay for regaining full control of your own money. And you might be able to find an exception to the penalty.

Also you might think about switching from a qualified plan to IBC (infinite banking), which is what I personally chose to do. Compared with qualified retirement plans, IBC offers more security, better protection from creditors, more privacy, no limits to contributions, and easier/faster/more flexible access to funds than any of the qualified retirement plans. It also comes with a death benefit on the side. The gains are 100% tax-free. Current yields are 3.5-4% (after tax), which I believe is better than the after-tax S&P 500 average. And that is with historically low interest rates, which lowers the yield.

That's my two cents.

For more reading, check out Andy Tanner's book 401Kaos and Nelson Nash's book Becoming Your Own Banker or lookup videos on YouTube by Patrick Donohoe or Todd Langford.

Hey Wa, you're never too late to start in real estate!

@Kevin Cespedes

I have read these two books and recommend them highly:

Tax-Free Wealth by Tom Wheelwright

The Book On Tax Strategies for the Savvy Real Estate Investor by Amanda Han and Matthew MacFarland

I would also recommend listening to Keith Weinhold's Get Rich Education podcast, where he interviews Tom Wheelwright about a dozen times. I would go back and listen to each of those episodes.

Tom Wheelwright also has a great podcast called The Wealthability Show.

One thing I like to do is search for podcast episodes using someone's name ("wheelwright"). You can learn a lot this way, and you might discover some new podcasts too.

If you want to dive deeper than a book, I recommend Tax-Free Formula, an online course by Tom Wheelwright. I am studying it right now. It goes pretty deep into the nuts and bolts of complex tax planning. 

There is a company called KBKG that Tom Wheelwright recommends. They have software called "Residential Cost Segregator". The cost segregation reports cost about $400 per property. They are for up to 6 units and $500,000 properties. You can have your CPA do the report, or I think you can even do it yourself. Audit support is included.

@Ali Whitman

I have only seen a couple reviews on BP by clients of Wealthability or ProVision, and they were all favorable. Almost all the comments you see on here are not by clients, but by folks who did the initial consultation and are hesitant to make the plunge.

If there are any negative reviews by clients, could you paste a link?