Tyler Sheff and the Cash Flow Guys Podcast Part II

Now you wrote a book and it’s called, “The Secret of a Tax Free Life”. ”—you wrote more than one actually, but first I want to start with talking with your first one there, “The Secret of a Tax Free Life”. Can you tell us a little bit about that?

Yes. I co-authored that. That was an Amazon best seller. It came out about three years ago. I wrote it with about nine other people and it was about a bunch of different tax strategies that business owners could use. And this is only as real estate investors, they fall into the same camp, right? My second book, which is recent, is “The 10 Most Expensive Tax Mistakes that Cost Business Owners Thousands” and that is fairly recent, that talks about some of the things that you can be doing that most people are not.

So in other words, you know, it’s kinda like what they say, “An ounce of prevention is, is more valuable than a pound of cure.”

Correct. And it all comes down to planning because this is–none of this is rocket science. It’s not that I’m a genius, but we take the time to play where most people don’t. Most accountants are putting the right numbers in the right boxes and doing it really good, but we’re proactive. They’re reactive

Now in a lot of cases, and I can see the point here with planning versus you know, being proactive instead of being reactive because if I go do the wrong thing for 12 months and then I, of course, document said wrong thing, I’m doing this–I’m doing my quarterly returns myself. Now we filed these returns. I’ve done everything the wrong way. I come to you in January, knocking on your door and I bring you that file box that’s slap full of receipts that are disorganized. They’re a train wreck and I’ve been doing everything wrong. Is it, to some degree, it’s kind of a little too late at that point, isn’t it? I mean, you can’t just wave your magic wand and fix my mess a hundred percent,

Not a 100%, but sometimes there are late elections that you can make and the IRS allows them to be made that can save people a lot of money. So it’s never too late. We like to say talk to us beforehand, don’t wait till the end of the year or the new year. But we are working with people now where they came to us in January and fortunately by making certain types of late elections we can actually correct those errors.

Very interesting. Now I talk a little bit about raising capital and a lot of times what I find is that a lot of high income earners, what they don’t want is more income. Let’s look at a–we’ll call him Doctor Bob. Doctor Bob, he’s a–makes a pretty healthy paycheck and he works for a hospital and he gets paid on the W-2. And one of the things that Doctor Bob wants or needs is ways to mitigate his taxes. And can we talk about briefly just kind of a 10,000 foot view when I do real estate deals, sometimes we’ll invest in our deal solely because they want the tax benefits. But of course we are over the understanding that the law says otherwise. They’re like, well, and again this is, I’m asking for clarity and so how does that shake out?

So let’s just say Doctor Bob is basically getting into real estate because he wants those passive losses, right? He’s going to have positive cash flow, but he may have passive losses, but Doctor Bob doesn’t realize until he has his taxes done that he makes too much money to take advantage of those passive losses. Now Doctor Bob comes to us the following year and we explained to him how to create some passive income through his practice by maybe doing things a little bit differently in setting up a structure a little bit differently. So now we have Doctor Bob has passive income that he’s creating, right? Plus he’s got his regular ordinary income and now he’s got these passive losses from his real estate. That’ll offset is passive income. So now he has basically–he’s getting that deduction that he would normally have been missing

Outstanding and again, right back to being proactive instead of reactive by having that tax plan in place. And this is what I hear, this is a lot of the misinformation that I hear out there in the market places that people are saying, well you could do that all that this year. It will to some degree. No, you’re like you just said is, you know, how you structure things from the get go because all of these benefits, I assume the IRSs wants you to qualify. There are certain criteria that says you must do this. And lately I’ve just heard one, the doctor had sold off all of their properties, all of them, because their tax professional told them they make too much money to receive any benefits from owning any real estate all. And I said, are you sure? I mean, did you, did you ask that question again? And it turns out after the fact is I caught onto them after they’d already sold, I don’t know 12 houses, they didn’t really–they misunderstood their tax professional. They didn’t, they just took it at face value. They heard, “You make too much money”, and they never even asked for tax planning, so they missed the whole point of everything. Once it all begins, you make your money. It’s like we say in real estate, you make your money when you buy.

Well, that’s why a tax plan is in writing because you know a tax plan or conversation is as good as the paper it’s written on, right? People can misconstrue what that conversation is, but when you put it into writing, it’s there, it’s permanent. You could look at it, you could ask questions about it. So that’s the beauty of a tax planning.

There you have it. Outstanding. Now you’ve got a little present for some of my Listeners to share. Before we wrap up what we were talking about, now’s a good time to go ahead and share it with him.

I’m sure you’ll have a link on your show notes page which will take you to CraigCodyandcompany.com/tyler, and you can request a copy of my latest book, “10 Most Expensive Tax Mistakes That Cost Business Owners Thousands” and we will ship that out to you.

Well, awesome. Even a hard copy book?

Yes, absolutely.

Yes sir. Ladies and gentlemen, if you’re looking to really do it right from the beginning, if you’re looking to take your investing to the next level too is, that in essence, bulletproof your business.

Get on board with starting out your best investment, that 4-500%. Pick up the phone, send that email and go to the website. Do something to engage with Craig and his company. Get started the right way. Ignore the bigger pockets advice, no offense to bigger pockets, but ignore what the untrained people are telling you because they’re not going to be there to bail you out. Once you realize their advice is incorrect, instead get a tax plan together. Get a hold of Craig, get a hold of somebody whose company will sit down, go through a plan. They’re going to ask you a lot of questions together. As a team, you’re going to build a plan. As long as you stick to it, just like Craig said, then you will have a far better experience. As a real estate investor you’re going to do things right the first time.

You won’t have to learn from those seminars as I call them the hard way. So again, Craig, thank you so much for coming out this week. And Ladies and gentlemen, just a reminder, if you are looking to join our Facebook group, you have not done that yet, you’re missing out on dropping all kinds of information there. I’m dropping videos in their tutorials and different things that are not offered anywhere else thinks I’m not putting out to the general public. That is for people who have joined my Facebook group. It is absolutely free. Quickest way to get there is to go to the link I made for it, that’s the Cashflowguyscom/group. That’s Cashflowguys.com/group. And folks, you have a great weekend. We will see you next time.

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