Tax strategy Ideas

Welcome to the Navigating Dental Insurance podcast, where we don't [music] take from insurance companies. Here are your hosts, Mr. Jordan Comstock and Mr. Ben Tuinei. This podcast [music] is sponsored by BoomCloud Dental Membership Software, www.boomcloudapps.com, and [music] Veritas Dental Resources, www.veritasdentalresources.com. >> [music] >> Enjoy the show. >> What's up, everybody? And welcome to another awesome episode of the Navigating Dental Insurance podcast. I'm your co-host today, Jordan Comstock. With me, as usual, Mr. Ben Tuinei. What's up, dog? >> What's up, Jordan? >> [laughter] [gasps] >> Sorry,

my hair is a little funky. >> It's all right. I've haven't had time to go to the the barber, so I need to get my hair cut, too. >> Okay, yours looks better than mine. Mine mine just came out of the hat from having lunch with you and Derek earlier. >> Yeah, it was awesome seeing you at lunch, man. >> Yeah, likewise. >> Yeah. So, today we're going to be talking about as business owners, we have at the end of the year we have tax conversations

coming up, and I think Ben and I just wanted to share some ideas that we've done in the past, and and kind of it's kind of a pain in the butt at the end of the year sometimes where you got to we got to deal with this each year, right? With the all the taxes. I've I'm always for less taxes. >> Yeah. >> [laughter] >> I think most of us are. I don't think I've met somebody who's like, "Yeah, I I probably should need to pay

more." >> [laughter] >> It's a big pain point, you know, because you know, when you do your taxes and you look how much you're paying Uncle Sam, it's like, man, I can I can hire like professionally some really top quality I can hire three or four really good people. >> I look at that just every month with just payroll tax. I'm like, man, I'm paying that much every month in payroll tax. I could hire some pretty amazing talent with that, right? And that's the issue that

that's the issue I have. >> I know. You know, so it's it's tax mitigation strategies are on every business owner's mind. This is the last month of the year for you to make decisions on purchases, you know, and I'm just curious what people are doing. Like what are what are you doing for tax mitigation? >> What I've done stuff several years. I've bought vehicles cuz I know a lot of at least my accountant has educated me that if you buy a certain size of vehicle, you

can write it off. >> 6,000 pounds? >> Yeah, something like that. No matter what type of industry you're in, right? That's what I've been I've been educated. And obviously, whatever we talk here, talk to your CPAs and your attorneys if you need it. Um but yeah, I've I've bought vehicles. I've invested into marketing packages at the end of the end of the years, right? That's what I've done that a couple times. Um you know, we've done uh we've done like invested into events as well. Like

go take my team out. Uh usually buy my team gifts, you know, if there's if there's uh leftovers, you know, after the year. Um I try to at the end of every year we have a a party and I try to buy my team something, right? Yeah, individual. We try to do something nice that we that we can write off, right? So, I think that's always fun, too, to give back to the people that are really making at least my company run every day, right? So,

those are the couple things that I've done um in the past. You know. >> Absolutely. [clears throat] There I heard hear something about charitable donations that you can do. >> Yeah, you can do charitable >> somewhere. Yeah, there's a rule on that. I can't remember exactly what it was, but it's something like uh 60% of your earnings or something rather. I can't remember exactly what it is, but people that um uh do support a lot of charities would alternate and do like a this year they'll

do a big donation to the charity. >> Yeah. >> [clears throat] >> You know, to get a good tax write off this year and then next year they'll they'll skip next year with that strategy and do something else. >> Yeah, there yeah, I totally I think that's always good. There's I know um real estate, too, like commercial real estate. I've I've looked at doing that a couple times. We don't own our building here uh at BoomCloud, but it's something that I've been trying to do and

you can, you know, use that for a tax uh strategy, right? To write things off and and all that and depreciation. Um W- uh what else? I've I've I've um I mean, equipment is always a good thing, right? Especially in dentistry, there's new Yeah, for a tech company, for us it would be like new computers, maybe new desks, you know, maybe a software program um or two. Um in dentistry, that's kind of cool. I would just I just got back from Greater New York and there's

so much equipment out there, right? That your practice may want to look at to for both an investment and a tax strategy, right? To write off. So, I mean, in dentistry it seems like there's a lot you can do um compared to like a a software company. >> Yeah? >> You know. >> Yeah, I think so. I think with December, with it being such a stressful month for business owners and all the bonuses and the taxes that you have to prepare to start paying or at

least pay before what Well, throughout next year, you have until what? September, October next year to or August, September if you want to an extension. Um But yeah, it's interesting. I I'd love to hear from our listeners on what you do for tax mitigation strategies cuz we're always trying to learn, you know, not every CPA knows every single trick in the book, but I hear from like my brother-in-law who owns a pretty big business is he uh he says, "Yeah, we pay very little in taxes

every year." I was like, "Well, how do you do that?" >> It's all good. There is a [clears throat and laughter] lot of ways to do it, you know, and yeah, you're right. Not every CPA understands the tax code. The tax code is so uh big, right? There's a lot to it. The cool thing about it though is um it it encourages entrepreneurs and business owners, right? To to utilize, you know, what's in what's in the tax code. There's a great book, Ben. I don't know

if you've read this. It's called Tax-Free Wealth. Um it's Yeah, you ought to read that book um especially for like tax strategies um legally, right? Legal strat- tax strategies. Um that book is amazing. I read that um years ago and I've always, you know, um gained value from it. My I I had my dad who owns uh a dental lab. I had him read it cuz he was having some issues with his accountant. His accountant was too uh he he wouldn't help like tax like with

tax strategy, right? And tax planning. He just be like, "Well, we got to tax that. We got to tax that." It's like, "Well, do you work for the IRS, dude?" >> [laughter] >> Uh but Tax-Free Wealth by uh I think Tom Wheelwright. I think he actually spoke at one of Dr. Mark Costes' conferences one time. Um but it's a Rich Dad Poor Dad series. >> Mhm. >> If you've read that book, it's one of my favorite books. Uh that's a great excellent book to understand your,

you know, tax strategies and how you can um utilize certain things to you know, for write-offs and and to minimize the tax burden. Which in that the cool thing about the tax code, that's what it's for. It's it's it's for those entrepreneurs and small business owners >> Yeah. >> to to utilize, right? So >> Absolutely. >> take advantage of it. >> Oh, what's the name of that um tax coach that we had on our podcast out of New York, former police officer? >> Craig, yeah. >>

Yeah. Craig. >> Craig Cody, right? >> Yeah, we ought to bring him back on and have everyone have him educate everybody. He's a good dude. >> I'm thinking about even retaining him because what I'm is that you have your CPAs that know so much. >> Yeah. >> And then talking to other business owners like, man, I need to mention that to my CPA and you mention it to your CPA and they don't know. You know, and it kind of makes me wonder what what are all

the other tax mitigation strategies that we're missing out on as a business, you know. >> Yeah, there are so many, you know, and and I think it's really smart to hire smart people. Like this year my my company we we've gone through an IRS audit, which is like it's every business owner's worst worst nightmare, right? >> Oh, yeah. I've been through one before. Fortunately, when I was a lot smaller. >> Yeah, yeah, that's helps, yeah. But luckily, you know, I I ended up hiring smart tax

attorneys that could help me with it cuz I I'm like I don't know what I'm doing here. I just want to grow my business, you know. I want to help as many people as I can. And you know, these guys are sticking their nose in and and annoying me. Help me. All right. So, I think it's always smart to to hire um smart people, especially you know, it's it's not always cheap, but it'll be it's worth it in my opinion if you get the right ones.

>> It just don't >> Yeah. Go ahead. >> Sorry, go ahead. >> Oh, I was just going to say, you know, whether it's a tax attorney that's helping you, you know, combat IRS audits or or like a tax strategist, a CPA that can help you figure out what you what you need to do with with the money that you have that you can that you can retain it and keep it in your business so that you can grow your business and that's what I'm about. I

would I would rather help my people than um pay too much to the government, you know. >> I know. It's like >> My people is what builds this company. The the government hasn't really done anything. >> Yeah, you pay two, [laughter] three hundred thousand dollars in taxes and the IRS is like, oh, we want more. We're going to audit you and we're going to find more. That's what happened to me before. Like one year >> Really? >> I was audited and the amount of taxes that

and I it was so hard to fight that I just let it go. >> Yeah. >> The amount of taxes I was taxed that one year was more than I'm Well, it's kind of a a sticky situation. The taxes that they taxed me was more than I actually made and I had to I it took me three or four years to to pay through it. But the IRS was totally being being totally unreasonable with >> Most of the time. >> And it's just so frustrating to

me that, you know, business small business is what keeps this company uh country alive, right? >> It really does, yeah. >> Small businesses is where most of the taxes come from because there's more of us than there are the big businesses. Um and yet we are the ones that are targeted for these audits. >> Yeah, it's kind of like >> I've been so conservative with my tax strategy. I'm like, well, it you know, I don't want to go through that audit again. >> Yeah. >> It

kind of seems like there's no way to escape it, right? If you even if you follow the rules and are not taking advantage of all the strategies. They say that only 2% of the businesses are are ever audited. I wonder if that's actually true. >> Yeah, I think it you certain things trigger, you know, um we since we deal with payments and and with my company, that's you know, they're just more for our situation, they're more curious and like like is that money going directly to

all the money you get you guys are managing on on the Boom Club platform, is that going to you guys and like where is it, right? That that's all it was with me. So it wasn't like a we're trying to find ways to tax you. For us it's like, hey, we need more clarity here. >> Oh. >> So it's actually been pretty Yeah, it's it's been pretty easy working with them with and my attorneys and my accountant, right? But yeah, it's it's definitely a cost I

didn't >> [laughter] >> expect it to be there. Holy >> I know. Well, one last thing I learned before we are we're up for time is that having a meeting with your CPA and tax coach every quarter is a really good idea. >> [laughter] >> Every quarter, yeah, that's I typically do that every quarter. I'm I mean this year it was like every week. >> Yeah. >> go through an audit. But um yeah, every quarter I think it's it's a smart to meet with a tax

strategist to figure out what you can you know do um legally to minimize the tax burden, you know, especially for practice owners. I think that's it's the smart way to go especially since our tax code is built for entrepreneurs and business owners. And then the lastly, go get that book, Tax-Free Wealth. It's it's a fantastic book that you can read to to understand um what you can do out there for a tax strategy. >> Just pulled it up on Amazon. Tax-Free Wealth. >> Tax-Free Wealth, yeah.

It's a Rich Dad, Poor Dad series, which is I love Rich Dad, Poor Dad stuff. It's good. >> Yeah, that's awesome. Well, Jordan, thank you for your feedback there on this. That's always always curious. And of course for our listeners, we'd love to we'd love to hear what what you think about tax strategies. I think closing this on best CPA firms for dental, me, my top pick is going to be Cain Waters and Alan Schiff out of Baltimore. >> Oh, sweet, yeah. >> What do you

think? What what's your recommendation for top CPAs in dental? >> In dental, yeah, I mean Cain Waters I've heard great things obviously through you and then seeing them at events. Um hasn't Alan been on our on our podcast? >> He has not. He's been so busy. I need to try to >> I don't know if I've been on the podcast. >> Yeah, he'll be >> He'll be a good one to get on. I've I've I've seen him around, but I couldn't remember if he's been on

the podcast or not. >> [laughter] >> Yeah. Jonathan Jonathan Van Horn's been on the podcast. >> Van Horn, yeah, Jonathan >> He's another good one. >> Yeah, and then and then obviously for like money management, the Dental Advisors, those guys have been good. >> Yeah, Reese Harper and Ryan Isaacs. Yeah, good guys. >> Those guys are good for us. Knowing what to do with your money, I guess, that you're saving from the government. >> [laughter] >> Totally. >> So with that said Ben, awesome seeing you

today for lunch. For our listeners, thanks for listening to this quick episode and and be looking for our next episode coming out here soon. >> Take care everybody. >> Rock on.