Y'all ripped off news. Need advice so you don't happen. Come running just
as fast as we can. Shooter's gonna help me. Come Man Dix is
the Troubleshooter Show. No Tom Martino, Hi, Tom Martino here, Welcome
to the show, A very important show. Today we're gonna be talking about
taxes. Yeah, what's going on with taxes? Man? You know we
went through a lull there for a while with the IRS because of COVID.
What's happening now with the IRS? What's going on in the future? Are
there any tax things you can do before April fifteenth? What can you do
for planning of this year? Our goal is always to pay fair but as
low tax as possible. Nothing wrong with that as long as we follow the
rules. And Eric Reinemer from Atlas CPAs in a financial with US Atlas Firms
dot Com. It's been my accountant for many many years, both with the
Troubleshooter Network and me personally. So if I end up in jail, he's
going to have to bail me out. That's just an accounting joke. Boom
boom. You know. Uh, the the joke about accounting is, uh,
you have an accountant, and you have an attorney. You asked the
accountant. You asked the attorney how much is two and two? And he
says The accountant says four. All right, you asked your attorney how much
is two and two? Do you know what? He says, Eric Renner?
Do you know? Oh? What do you want it to be?
Exactly? You did? Did you? Did you know that joke? Then
that's an old joke. What do you wanted to be? Okay? Three
O three seven one three eight two five five. Now let's get to a
problem that's pretty serious. Tina called, and I wanted to get on this
somehow. I think I had somebody call. I thought I had somebody call
the pharmacy. I wanted them to allude to a some kind of media.
Maybe investigation would help, I said, maybe of Deputy Dollar calls. I
think I said that with Dollar. But we had a couple calls about this.
Apparently what happened is anthem, right, blue cross, blue shield or
whatever. Tina helped me out. Here was it anthem? You had it?
Is anthem? An anthem switched? Well, they took over a compounding
pharmacy. It was Carolin switched to Bioplus right now. I have this.
So earlier we had a call from a woman, Gemma, and she has
MS and Carolin RX went to Bioplus because Elevant's Health, which is Anthem,
actually took over this pharmacy and therefore wanted everyone to go through there. Oh
I know. I asked deputy doctor call there and to just make some you
know, some just say hey, we're looking into this and maybe that would
help. And the situation is dire. People can't get their drugs. I
mean they switched to a new pharmacy and the new pharmacy can't fulfill the orders.
Have you learned anything since you've been on the show. Well, I
called today because finally, yesterday somebody put me in touch with a higher up.
So I have an email and a phone number, and I'm hoping that
Jemma called or you guys have her contact information and can pass it on because
she walks through everything and said, okay, shipman is set for today,
so fingers crossed, my son's medicine should be here today. Okay, did
they know what the problem was? You know, i'd even I was so
happy to get someone higher up and I just praised her and I didn't want
to get into all of that, because I definitely wanted the medication. There's
time for that. Act. You keep us informed. I will, and
I want to know when it happens. That's what I want to know,
when it actually when you actually get it, and I just really want I
don't know if you guys have Gema's contact information, because her situation is a
little more dire than my son's is, so I'd love to get her that
information and maybe she can help her out as well. Deputy Doc, didn't
you get I think Deputy Doc got Gema's information or Kaschina maybe you got it
to give to Deputy doct it. What's that Doc? I never got a
message to follow up on this. It was I'm sorry when I'm not here.
Yeah, we we wanted you to call down there. But listen,
here's the deal. Let's hold off right now anyway, but then we'll get
Gema's information. We'll call Jim and let her know in fact. Yes,
well let's try to get Jemma on. Thank you, Tina. I want
to ask is she We'll call back Jenna and get a follow up to see
if she's hurt anything. Three O three seven one three tok seven, one,
three eight, two five five. This hour brought to by waterpros dot
net. I love deals and I love good water. By the way,
as I've said before, we eat organic food, we have supplements, but
we seldom think about the water. We ingest and bottled water, forget it.
If it's plastic, forget it. Water Pros at your kitchen sink under
one thousand dollars fully installed. That's it, man. You don't have to
worry about plastics or anything. It's three oh three eight six, two five,
five five four. Let's talk to Eric Reinemer again at the CPAs and
Advisors. We have a number of situations when it comes to taxes, first
and foremost accounting for taxes. Many self employed people don't account for taxes,
and that's one of the things that they have to do. If you do
not pay quarterly. What happens at the end of the year when you have
a tax bill. If you're self employed, you basically pay interests and penalties
and whatever you're short. And with raising interest rates, what's really eye opening
is the IRIS rate. Now it's like seven or eight percent, as the
federal rate has gone up. What the IRIS charges you for being late has
gone up, so you don't pay in you're basically ten or fifteen percent a
loan with the IRS at that rate, so you end up paying a lot
more than your normal tax a bunch yep. So if you're self employed,
do you guess, I mean, how do you do? You pay in
the rears quarterly? So you look at what you made the first quarter and
send in an estimated payment, and you do that each quarter. Yep,
each quarter, just as if you're an employee, you just just if you're
filing taxes. Yeah, just like having money withheld when you're an employee,
you got to do it for yourself when you're self employed. Okay, So
you send in a payment. If you end up at the end of the
year sending in too much, you get back. If you don't send in
enough, at least you will not be fined. Right, that's the short
of it. That's the basics. Unless you really underpay, if you don't
pay at least what ninety percent of your obligation, you're fined, Yeah,
or is it ninety percent of the previous Well, the safe thing is if
you pay it one hundred percent of it you o the year before, you're
never dinged, even if you don't pay the balance until April. So first
you got to get onto a regular annual plan, right, and then kind
of gauze it year by year and be disciplined. You know, I don't
hear from anymore the nuts that used to say income taxes unconstitutional and they were
tax protesters. I don't hear from them anymore. Are they all in jail?
Well they're not. Actually I have a client, maybe he's a former
client, sovereign he said. He told me, he said, Eric,
I've a new a lot of research and I'm based on some ruled in seventeen
seventy six. I'm removing myself from the system, so you don't got to
worry about my tax return for this year. Did he really say that?
What did you say to him? I said, well, just he said,
you're either going to be hearing a lot from me because I need help,
and you're not going to hear from me at all. And we haven't
talked in about six months, so I have no idea where it's going to
go. It would be nice to do that, if you could, it
would be great. It's rules were real, right, But there are so
many people that believe that. In fact, I have people that listen to
this show that truly believe that income tax is unconstitutional. If you look at
the code, it does get confusing. Originally, income tax was supposed to
be on profits and not necessarily normal wages. And you could make the argument
there is no profit in a normal wage. You're working, right, I
mean, but it's been argued people have gone to prison. There have been
so many people that don't pay tax that have gone to prison. And here's
the deal. If you want to discuss taxes, that's fine, and we're
not going to get into whether it's legal or not. I mean, I
think it's been argued and argued and arguing. But the bottom line is you
pay your tax quarterly. If you're self employed, what if your employer withholds
and you have work on the side and you end up owing a lot,
can you get penalized for work on the side, like extra work or not?
No, that's fine. A lot of people have multiple income streams,
but if they don't withdraw or make payments tax payments on the extra money,
I'm asking can that result in a penalty If you're making a wage and your
employer's taking out of your W two your normal taxes can Is there a world
in which you can make enough money that would put you into a penalty.
It all depends on when you put together your wages and your other earnings and
if you're short or not. Collectively it's just one big bundle of income that
gets looked at. So if you truly make a ton of money on your
own on the outside of your W two, you could end up having under
paid to such a point where you could be penalized. Absolutely, okay,
So it's one bundle. It's not Hey, I got money being taken out
of this job. I don't have to take it out of any others.
It depends on the amount and what is the highest tax bracket right now?
Do you know thirty seven percent plus? Stay right plus state plus. Now
there's this net income tax of another one point. You can get up over
forty percent pretty quickly. You can in Colorado you can get up to forty
two percent. Okay. Three other three oh three seven one three eight two
five five. We have a lot to talk about. If you have any
questions on doing taxes, last minute preparation questions you might have on deductions,
give us a call. Three L. Three seven one three talk three oh
three seven one three eight two five five. Frank Durand the real Estate Man
can help you prepare to sell your house, or you may decide not to.
With his market evaluation. He'll tell you what your house is worth based
on today's market, with interest rates, supply and demand and all other factors.
It's free of charge and you can trust Frank to do this with no
obligation. Three oh three nine two zero sixteen twenty two. Go with a
sure thing Denver's Best roofer Excel Roofing dot com. You don't pay a cent
until you're content. Wait time for an insurance checkup free no obligation. Comparison
call Compass Insurance paying too much your coverage at dozens of insurance companies find out
now three oh three seven to seven to one help. You'll think you're his
only customer when you choose Frank durand the real Estate Man dot com to list
your home with Remax Alliance three oh three nine two zero sixteen twenty two.
Hi, Tom Martino three oh three seven one three talk three oh three seven
one three eight two five five. We have Eric Reinemer with us from Atlas
CPAs and financial advisors. Bill has a question or a comment or something about
a four oh one K. Hey, Bill, what's going on? Hi?
It's actually about an Ira, a roth Ira, and I had some
unexpected income that came in at the end of the year with an incentive stock
purchase. So I know I'm over the income limits for the IRA Roth.
I know I have to pull out the deposit. I know I have to
pull out a certain percentage of what it made. My question is can you
just wait for the I R S to tell you to pull that out and
how much? Or do they direct you how much? Now I'm not understanding
though you you you have a wroth four oh one K right, I'm sorry,
a roth Ira? Okay, Well that's fine, it's a roth Ira.
And then you mentioned something about incentive stock Your your your incentive stock option,
but your your incentive stock option. Did you exercise the option? I
did, so it just counts as regular income. Well, well, no
exercising it, okay. Non qualified stock options count as income when you exercise
it, but not incentive stock options. Incentive stock options only count when you
sell them. So did you buy and immediately sell them? Yes, sir,
Okay, that's why and you didn't hold them for a year. I
did not, so there's no long term but got it? So now,
no, I get exactly what you're saying. So with an incentive stock option,
you do have ordinary income if you strike and then sell, and that's
what you did. How much income is that? It was around forty five
thousand dollars and then so that so the taxes were withheld the state, federal,
social Security. All that was withheld properly, or maybe even a little
more than should be. But now when I come to look at what I
should have been able to deposit into my wroth ira, I'm above the limit
that for twenty twenty three because your income was higher. Yes, sir,
I think because let me get this straight, Eric, with a wroth ira,
which by the way, is after tax money that grows tax free.
With a roth ira, as you make more money, you can contribute less.
Yeah, you max out for married couple around two hundred thousand. You
can't do it if you're over a certain income level. Now, but what
you're saying is, or a little bit of it. What you're saying is
you contributed too much to your wroth When you take into consideration the income from
your stock option? Is that right? That's correct? Okay? And how
much more did you contribute than you were supposed to? Well, by my
calculation, I shouldn't have contributed to anything. So for this sue, why
is that? How much was your how much was your total income after that
stock option? Two hundred thousand? And I believe the limit is one hundred
and sixty some for twenty twenty three for an individual for an individual, So
I, in my own right, you're in other words, you're not eligible
for a wroth and mark the back door, which we can explore that that's
very complicated, But back doors don't all complicated. Back Doors do not open
when you make too much money. No matter what you make, you can't
no matter what backdoor, you can't use a back door, right, can
you? Like if you make too much money, is an income always the
ruling factor? Yeah, but you can do a back door, like you
can make a million bucks and then have your broker. It's like a two
step prop. Okay, how is that? Let's talk about that. How
do you do it? You have to first have a wroth or not.
You have to have a wroth account. But you for your first step is
a non deductible IRA and then your broker shifts it into it's a way to
get it into a ROTH. But it's a two step process. But but
but here's what I don't understand. Everywhere I've read it's still a subject to
income limits. But you're saying it's not. No, if you have no
other do you have another retirement plan? Sir on the phone, I have
a work for one K, both traditional and IRA, so let's talk about
that. Yeah, so you should be able to still do this in a
back door. You won't get a deduction, but you should be able to
talk to your broker and just have them converted into a non deductible i R.
What do you mean, an That's what a wroth is, a non
deductible IRA. It's it's you take after tax money, you put it into
a wroth. Right, but people are still make non deductible contributions to an
IRA. Right, but it's subject to income. Uh? No, is
this okay? So I can make if you have an RA. Let's let's
make it simple. If you have an IRA and a wroth both in Schwab
or both wear it. I have an IRA in Schwab, so what can
I so you can put eighty five hundred bucks or whatever you're allowed to contribute
to your IRA. It's probably around eight nine grand whatever it is. Not
if you can take it, then you call up or log into schwab and
then you transfer it over to your WROTH. That's it. Okay. But
the eighty five hundred you say I'm allowed to put into an IRA, I'm
not allowed to contribute eighty five hundred to an IRA. Okay, I'm mark.
I wish I was allowed to. But why do you think you can?
How much can he contribute to an IRA? Well? Because of his
income? Uh? Because he's already doing a four oh one K. I
can't he's maxed out because he's over that to that one? Then could he
not transfer it from his four oh one k then to a ROTH? What
would be the benefit? Yeah, I'm not sure. He's already maxing out
his deductible four A one K. What this guy's needs, what this guy
is trying to do? Is he contributed to a roth he should not have?
Is there anything else he can do with that money? Let's get right
to that well and do I wait for the I R S to tell me
how much to pull out of the roth IRA. Well, it's the whole
contribution for that year, so you're going to wait, he would have sent
it, but it made during the year. Do I want to do it
before April fifteen? You you already said do it before April fifteen. Yeah,
call your brokerage company and just tell him the situation and they'll move it
out of the IRA bucket. Yeah, I understand, I got to move
the deposit, but they will help me figure out again how much the deposit
made in twenty twenty three. And yes, until I pull it out,
they will do all that. That's their job, and they will send a
note to the IRS with my taxes, here's what happened, and then the
IRS will pursue me and you won't hear from me. Tom, you won't
be in jail. Listen, here's the deal. Okay. I just want
to make something clear again. If you have a four to oh one K,
you can't do a wroth in addition to that, or you can if
you're over the can, but yeah, not income pies. Just go ahead,
Eric, What if you're already doing a fully funded four oh one K,
then you can do a wroth and IRA on top of that. If
you're over the income limit, okay, but you could, instead of putting
it all in your four oh one K, for example, put some of
it in an IRA. So you're still under that limit, then you could
backdoor into your wroth account up to a certain amount of money. Zach,
Right, that is true. That's a more complex situation. You could do
that, But I do. I do it every year. Well okay,
Well, like I said, that doesn't necessarily mean it's correct, but I'm
not saying it's incorrect. So explain that you take instead of making a full
contribution to a four to oh one K, you put some of it in
an IRA. If you're asking me, I don't have a four to oh
one K, I have a SEP, I have a wroth, and I
have an IRA, and then we have a few other tools I'm not going
to get into. But what I do is I put the max. I
can't put any money into my wroth because I make too much money. What
I end up doing is I fully fund my step to the maximum amount,
and then I can put up I think it's eighty five hundred somewhere around there
into my standard IR whatever the max I can put into there. Then I
can transfer that over to my ROTH account. It's called a backdoor ROTH.
I understand the transfer part, but first you have to have the ability to
have the money into an IRA to make that transfer. That's the point I'm
trying to make. And with a four to oh one K, it's not
the same as what you're doing with a SEP. Well. Well, the
only difference that I can think of is most four oh one k's are controlled
by the company. I don't even know if you're allowed to like transfer money
out of your you know, target four oh one K into an IRA.
I have no idea what those you can you can if you had, if
you have, if you maximized or funded well, let's say you didn't even
maximize, you funded your four oh one K throughout the year you and your
company match or whatever happens, right, I don't know why you couldn't transfer
that the same way into a WROTH if you had a WROTH. Is that
possible, Eric, I don't know. Here's what you go ahead, Eric,
I'm saying mark in service rollovers you're talking about, Okay, it's different
than a STEP. It's different when you have a four oh one K that's
established the plan has to allow for an in service rollover. Okay, otherwise,
otherwise you're penalized and its income. Once you have a four oh one
K and you do an in service rollover, you can roll it over to
your I R A or into an annuity or whatever you want to do.
That's what Then you could roll it. Then you could roll that amount directly
over into a wroth. Okay, right? Why? Er? Why?
Here's what I don't mark. This is what I don't understand because you don't
do that later, because why would you do that? Because you'd have to
pay tax on that money to get it into a wroth, wouldn't you don't
you have to take a taxable event to get it into a row. In
other words, the whole idea of a wroth is it's after tax money and
that grows tax free. But if you take qualified money that you never paid
tax on and you put it into a wroth, are you suggesting the wroth
IRA will grow tax free and when you pull it out you won't pay tax
either? No? You you you could possibly pay taxes on the portions that
went in there from a different qualified plan like the four oh one K or
the IRA. I'm not sure how that's we need to know what we need
to do. And and to Eric's defense, he does a lot of stuff
with taxes and all of that, but this is more of a financial place.
I bet, I bet he's got I bet Eric, you have clients
that you do a backdoor WROTH each year. Yep, we have a few
clients to do that every year. Yeah, So explain what you're doing.
Market's a little bit more complex because you're using your SEP vehicle, which is
like a different than a four oh one K. They're sort of different,
but they achieved the same thing. But when you got to the business,
you can do an SEP. So I hear what you're doing, Marcus.
Yeah, yeah, it's a little different. But hold on, hold on,
I just want to clarify. Eric's got probably more than a couple people,
and I know Atlas in general does that. Each year they'll contribute to
their IRA and then they'll transfer and backdoor into the roth. Is that correct,
Eric? Correct? Yeah? Okay, anyway, three oh three seven
one three eight two five five. I hope this is not too complicated.
But when you have questions, we'll take them right after this. Go with
a sure thing Denver's best roofer Excel Roofing dot com. You don't pay a
cent until you're content. Time for an insurance check up free no obligation.
Comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find
out now three oh three seven to seven to one help. You'll think you're
his only customer when you choose Frank durand the real estate Man dot com to
list your home with Remax a lot three oh three nine two zero sixteen twenty
two highs. Tom Martino, your troubleshooter. We're going to get a tax
expert on to talk about in service rollovers, doing it correctly avoiding penalties because
you're under fifty nine and a half and you take anything out if you take
it out to put it into a really a wroth is after tax money.
So if you take it out under fifty nine and a half and transfer it
to something else, from qualified to in esse. Maybe maybe I wasn't clear
what I do every year. No, no, I understand that I'm not
talkington. I'll be told a certain amount of money, like eighty five hundred
bucks that I put it into my IRA, that eighty five hundred tax has
already been paid on it. It's not no taxes have been withheld on it.
Okay, it goes into my IRA. Then that amount of money,
and I think it truly is perfect. Now I understand that that's perfect because
you're not messing with qualified money. I get it, you got it.
I get So what happens at the end of the year for me is Mallory
does my taxes or Eric does some of both of our taxes, and then
Mallory is the one that tells me you can put x amount into your STEP,
you can put x amount into whatever else I got going, and then
put eighty five hundred into that IRA that is not taxed, and then transfer
it over to the ROTH. But any money you put into your STEP is
a deduction makes the money it allows, I mean, really a backdoor with
iray. It's a conversion that allows, for lack of the better word,
high earners to open up just an IRA, deposit money that has already been
taxed into that IRA, then convert that contributed money into the ROTH. So
therefore it grows right. And then when you take it out when you retire
or whatever age you're at, and decide to take it or have to mandatory
take it. You don't pay taxes on the growth. So it is a
great vehicle to do no matter what. And by the way, for those
listening, when we're talking about backdoor approaches and squirrelling money in addition to what's
allowed, many people assume, well, why would you have to do that?
Not hardly anyone makes that much. You'd be shocked at how many couples
right now our two hundred thousand dollars. Many, many, many, many
couples. I mean, you know, I'm not saying and I don't mean
to talk down or up to anyone, but there are people that listen to
the show that are easily in that category that or not. First of all,
it's only around one hundred and fifty one hundred and sixty per individual.
And the why I say individual generally, and you're in this circumstance, the
husband and wife are both going to have the IRA in the wroth. So
it is an individual limit for most people, unless if you're single. There's
no reason you would do it as a couple. You'd want to do it
as individuals. Now, Paul, you have a question on solar go ahead,
Paul, Guysy guys, I was just calling to kind of chat with
you a little bit about solar. I've got some people knocking on my door
for solar, and I was curious which ones you guys recommend that. Well,
none of them that knocked at your none. First of all, I'll
tell you don't go with any of them that knocked at your door, right,
okay, because nine of them are salespeople only, and they don't give
a lick about solar. They don't know anything about solar, and once you
buy, once they get you a contract or out of your life. So
if you want solar, go to the experts we know and trust. It's
that simple. And why do I both I'd literally go to pro Bid and
I'd go to Red Rocks. I'd have both talk to house that talk to
both of them. That's right and one. And I'll tell you why I'm
telling you. Unless one of those companies came to your door, they're all
salespeople. They don't know anything after the sale nothing. You are on your
own and they usually sluff you off to some installers that do nationwide installations.
They travel and it's it's a terrible industry, Okay, you can go.
I want you to check out both probid energy dot com. That's probid like
they're bidding on something. Pro Bid Energy. I'm gonna give you the number
three oh three six two three fifteen thirty one. Then I want you to
check out red Rocks r S that stands for roof Andsolar redrocksars dot com three
oh three seven zero four two four four nine. Ask them questions. Did
you hear anything specifically that was concerning to you? My biggest question is kind
of how they structure the deals where they usually have them set up as like
a twenty five year loan where you're paying off. Okay, great, great
question. Hold on, I'll come right back to you. Please, this
is really important and aarin with taxes. Hang on, ray a question on
residency. All of this right after this, go with a sure thing Denver's
Best roofer Excel Roofing dot com. You don't pay a cent until you're content.
Time for an insurance check up free no obligation comparison call Compass Insurance paying
too much your coverage at dozens of insurance companies find out now three oh three
seven to seven to one. Help You'll think you're his only customer when you
choose Frank durand the real estate man dot com to list your home with Remax
Alliance three oh three nine two zero sixteen twenty two. I'm Tom Martinez.
Here's the deal, Paul On Soler. Hang on, We're getting an expert
to talk about the different programs so you don't get screwed. Aaron, you
have a question on taxes. Eric Reinemers here from Atlas CPAs and on the
back door approaches to roths and other sneaky ways to sneak money into retirement plans.
We're going to have an expert on in the next hour. So Aaron,
what is your question on taxes? Hey guys, well where do I
stop? Okay? So I've used Turbo tax probably ten years. In twenty
twenty three, I downloaded the program call twenty two and did an update and
it deleted all my Trier text is in the two What oh did it?
It was probably attempting to do a data upgrade like they do whenever you upgrade
a software sometimes they go back for the data files and update the data library.
That could be how it happened. Did TurboTax have an idea how it
happened. They said it was impossible. That's what I'm thinking, because very
at the very worst, it would update it. Are you sure it did
not just change? Hold on, how do you know they're a race?
Let's put it that way. Okay, So I you know I had looked
at the files previously, so you could see. But when you look at
your previous here's all I need to know, Aaron, And I'm rushing you
because it's the end of the hour. We can continue this, but I
need to ask you. Normally before this upgrade, when you were looking at
your TurboTax files, were they PDFs or excel sheets or were they buried within
the program you had to access? So they were both the PDFs and the
actual TurboTax files themselves. And I, okay, there's no way that those
pds. Wow, if they were elsewhere on your hard drive, there is
no way that an upgrade would delete those. Well, I know that's what
people say, but if you look online. I'm not the first person to
actually experience this. But this PDF. Okay, once you did the taxes
for let's say tax your twenty twenty, a PDF is created and elsewhere outside
of TurboTax TurboTax doesn't even know. Go with a sure thing Denver's Best roofer
Excel Roofing dot com. You don't pay a cent until you're content. Time
for an insurance checkup free, no obligation. In comparison, call Compass Insurance
paying too much your coverage at dozens of insurance companies find out now three O
three seven to seven to one help. You'll think you're his only customer when
you choose Frank durand the real estate Man dot com to list your home with
Remax Alliance three oh three nine two zero sixteen twenty two d News. You
need advice so you don't have come run in just as fast as you can.
Shooter's gonna help me. Come man, this is the Troubleshooter Show.
No Tom Martinez, Hi Tom Martino here, welcome. I am here solving
problems, answering questions. Say you planes Laar along with the team, of
course, and uh, we are taking your calls, and we took some
interesting calls I want to get back to we will have an answer or some
information for the TurboTax thing. I have that waiting, and then I have
Paul because I have our expert on Paul said he's getting knocks on the door
from solar companies, and I told him, don't go with someone because they
knocked at your door. Uh. And I recommended Red Rocks was one of
the companies. I recommend. There's only two red Rocks roof and roofing US
Solar, Redrocksaris dot Com. And I wanted to talk to Brook because he
had some questions about specific programs they were proposing. And I wanted you to
weigh in on them, Brooke, because we trust you so much. You're
so knowledgeable. So, Paul, what were the specific questions about the programs
being presented? So the way that both of the quotes that I've gotten so
far are structured is that they're at twenty five year loan at a whatever interest
rate to basically equate to what I pay now for my monthly electric bill through
But who gets the tax credits? Yeah, well it doesn't hold on Brook
one second, real quick, Who were they proposing get the tax credits?
The way that they structure the loans is that there's a loan amount and then
there's a payment and if because I would be the one to submit to the
tax credit. So once I get the credit, if I apply it to
the loan, then my payments, say, is the same at whatever regular
rate. And then if I did and I just pocketed the tax credit,
then my rate would go up on my loan. So if you lowered the
principle of your loan, your interest rate would go down, and the principle
of your loan would go down too. I mean you'd owe less, not
the interest, not the interest rate, but your principle. Your principle would
be reduced. Obviously, if you apply your tax credit, is that right,
right, you have the option of paying down the loan or keeping the
money. Okay, So Brooke, that's one program. What was the other
program or were they all alone? No, they were both. They were
both very similar. Okay, so Brooke weigh in on that. Yeah,
so that's normal. So anybody that finances a solar deal through one of a
nationwide installer, they usually have an introductory period of either one year or eighteen
months where they assume that the tax credit is going to be put down as
a down payment, and so they keep the monthly rate low, and at
the end of the introductory period, if they don't receive that as a big
down payment, then it just bumps up. So that's that's totally normal,
one hundred percent. How most solar loans are structured. Hey and Brooke,
while you're talking about that and tax credits. A few years ago, we
would have calls all the time. You know, they didn't make enough money
to actually get the tax credit, so it was no good for them.
But nowadays you can get the tax credit, and even if you can't use
it yourself, you can sell it on an open market, right, yep,
one hundred percent. Yeah, so usually you're going to get about seventy
cents on the dollar. So if the tax credit you would have received is
ten thousand, expect to get about seven, right, Because the people buying
it have to have, you know, some motivation for why they're buying it.
So where would you definitely sell it? Yeah, I want to buy
tax credits. Yeah, So if it's seventy cents, where's the market on
it right now? Because I'm sure the markets on both sides. Someone sells
it for seventy cents and sells it to me for what eighty cents? If
I wanted to buy I don't know, fifty thousand dollars in tax credits or
whatever, where do I go to buy them? Yeah, you can either
broke or the deal. Like we sell tax credits for our clients ourselves,
Sophia, tax credits to sell, I would send you over a contract review
the tax credits eligible to be sold after final inspection has been approved by the
jurisdiction. So, Eric, have you heard of people? Hold on?
Hold on? So Eric, when I'm doing my taxes, have you heard
of people coming to you with ready made tax credits that they bought? I
mean, he's never heard of it before ever, But I'm sure what do
I do? Would I just say I have these tax credits or would there
be some proof of it somewhere? Eric? Yeah, there has to be
proof of it and a paper trail. It's the same as when you used
to be able to sell it was a conservation easement credits. So that's a
very similar program. Okay, So okay, got it? Now what are
you far? As? Back to Paul though, So, Paul, a
twenty five year loan is not unusual, and an introductory a payment is not
unusual. Anticipating that you're going to pay down the principle with your credit and
if you don't, it bumps up again. That she said, that's all
normal. So really, Brook, do most of your people finance these things?
Honestly, most of the folks that I work with get a heelock or
work with their own bank that they've worked with, because if you get a
heelock, then any interest that you are using towards the solar project is considered
tax deductible, so you're not actually really paying any interest, or they're getting
a better rate from their company. So I have somebody who is barring the
money against the CD, so she's borring the money at like one per interest
because she's profiting off of the CD. So it just depends on what options
do you have. But most of my folks actually choose not to finance through
one of the nationwide lenders. Now, the nationwide solar lenders, what rates
do they run? Market? No, So you're looking at probably between four
and a half and then eleven eleven and a half per cent interest depending the
four and a half interest rates usually have a higher financing fee. Eleven and
a half usually don't have any and then it just you know, depends,
but it's very easy to qualify for those products. Usually you just have to
have a credit score of over six twenty five and an acceptable DEBTA income ratio
secure the property. Second application process. Do they secure the property with that
loan? Yeah, there's usually a lean placed against the property when you finance
it that way, so it is a lock it away. So, Paul,
how much were they quoting on a system for your house? That's where
it gets super weird and complicated. One of them was like sixteen thousand for
an eight panel system, and then one of them was if I financed it,
it was like twenty six thousand for an eleven panel system, but if
it paid cash, it was down to like after tax credits and everything else,
it was like ten. Yeah. So the second option probably has a
lot of financing fees, like thirty percent in your financing fees. So that's
why there's a big difference between doing financed or cash for that second option.
Yeah. God, that's a lot of money to pay for financing on that.
So well, that's same imagine if you paid interest on a car for
twenty five years. Yeah. So, Paul, I suggest you talked to
Brooke off the air try to get get a handle on what you should do.
I've got emails in with Brooks and with pro good now, I think,
bro now, but with a confirmation of a appointment. Now here's what
I want to make. I want to mention no matter who you're dealing with,
even good, honest people, and Brooke will affirm this. If your
monthly payment is not going to save you money from electric, don't do it.
I mean, why would anyone do it? Brooke? Do you agree?
Yeah? I think it depends on why folks want to go solar.
Some people like the renewable aspect, but in general, whatever you're looking for
out of solar needs to happen. So if you want solar to save money
and you're not going to save money, don't do it. Yeah, But
if you're doing it for the environment, I guess it doesn't matter. Most
people, don't, Brook. Aren't most people doing it to save money?
No? I would say most of the folks that I work with have some
sort of other alternative, whether they're worried that they it is going to crash
and they're not going to have power, so they're looking up for like a
backup supply, or they're looking to you know, be more renewable or whatever.
Most folks, the money part actually isn't their biggest reason. For looking
into solar What I am shocked. I really am shocked. So it's it's
fear. Some of it is fear or pre you know, and others just
they want to improve the environment and wide Brook. Are they the same people
when you go over there, they got those big buckets of food that lasts
for thirty years. Oh, you're talking about preppers? They are? How
what percentage of the people are preppers? Is there like barbed wire around the
house. I'm kind of half in half. I have half of my folks
are more on the fear, worried about stuff. And yes, I have
seen them where they have bunkers. I've been in a bunker before for a
solar system. I boat for a client one hundred percent and then half of
them are, like I said, more, you know, on the renewable
side of things. So everybody's value set's different. And that's the cool thing
about Fouler is that whatever your value set is, we can build a system
that makes sense for you. Thank you, I appreciate that work for your
value set. Red Rocks RS dot com three oh three seven zero four two
four four nine. Thank you for calling, Paul. We got more coming
up. I'm troubleshooter Tom Martine, go with a sure thing Denver's best roofer
Excel Roofing dot com. You don't pay a cent until you're content. Wait
of it. Time for an insurance check up free no obligation comparison call Compass
Insurance paying too much your coverage at dozens of insurance companies find out now three
oh three seven seven to one help. You'll think you're his only customer when
you choose Frank durand the real estate Man dot com to list your home with
Remax Alliance three oh three nine two zero sixteen twenty two. Hi Tom Martino
here three oh three seven one three talk three oh three seven one three A
two five five. So back to erin aaron I. I've looked everywhere,
including TurboTax and chatted with one of their people, and I also uh TurboTax.
If you use the TurboTax online feature, you haven't. Do you have
an account you can log in? No, it wasn't online. It was
the downloadable version of TurboTax. Okay, because TurboTax does keep records of your
tax returns. And also they said a PDF file is not part of TurboTax
at all. Once it becomes a PDF file as part of your computer.
So yeah, well what what happened was so I know you think it's kind
of strange, but I actually also had a backup draw I attached to the
computer. It went in there and deleted them from that as well. And
so listen, man, you simply lost the PDFs. It doesn't matter why
you reach out to the I r S. They'll give you. You can
even do it online. You can get every transcript you have ever done.
Well, that that is actually that is actually my question is that I have
requested, uh, you know, the full transcript of all those years.
Yeah, your transcript from the I r S. Yes, I tried that.
So I filed that form, all those forms in August, and I
still haven't heard anything back from them. That's no, no, no,
no no, no. That that that's weird. Did you go in recently
and do it again? Well no, I haven't. You know, I
yet to pay. I think it's forty five dollars per return and send in
the form. So I've done that. They've cashed away. You've already paid
forty five bucks, yes, for how many returns? Well, with each
return so I did I think twenty one, twenty two. I was two
returns to two years with it and you, oh, so you don't want
to go. So you already paid that money? Well, yeah, I
paid it and I've been waiting for them to send out. Did you pay
it by credit? Did you pay it by credit card? No, you
have to pay it by check with the full and okay, so the man
that that's weird. If you paid for that in August, you should have
had that by now. All they do is verify you and send you a
download link. I mean, I don't even understand why you're having such a
you're paying money. I mean, we get transcripts all the time for free,
so that's the price. I don't understand. But all you do is
to IR. You just go to the I r S website, then you
do the I d ME and you download them for free. That's all there
is to it. Yeah, they're not the full transcript though, they don't
contain all the uh depreciation tables and all that sort of Oh wait, yeah,
you're trying to get the actual data itself. You're trying to get the
data that's going to be from the turbo tax, right, Well, well,
no that you get that from the you know, the h in the
Revenue department, you you you know, send in a form. I forget
what the number is, and you know, to request them. And I've
done that, and like I said, I haven't got anything back from them
yet. I'm just wondering whether that's normal or is it just be lost in
the shuffle like everything. No, it's not, it's not normal. It's
not normal. And we could call Larsen Tax Relief and ask what you do
in a case like that. I am positive they've had to get full copies
of returns. Let's get somebody from Larsen Tax Relief on to weigh in on
this hold on Aaron, we'll get that too. Three oh three, seven
to one three talk seven one three two, five to five. Ray,
what is your question on residency? A married couple in their primary residence the
five hundred thousand dollars gain if they sell the house after holding it several years.
I understand you pick capital gains above the five hundred thousand for the two
What happens when the first party dies and you supposedly get a new basis?
How do you figure the basis? Okay? Eric, you go ahead.
Yeah, if it was a married couple and the partner dies, you get
a step up of one half of that actual cost on the day of death.
Yeah, on the day of death, you get a step up to
that fair market value, which will reduced to gain. Okay, could you
give me a dollars example how that would work? They started. So,
let's say the house is what's your house worth? Say it was purchased for,
not what it's purchased for. What is it worth? Seven hundred thousand?
And you're gonna and it was purchased for two hundred, right? Is
that what you're saying? I was purchased for one hundred, one hundred.
Okay, so six thousand and six hundred thousand in capital gains. If your
if your spouse was still alive, you'd have the five hundred thousand dollars deduction.
But let's say she died a week ago. Your basis on that house
half of it, fifty percent of it is now on that fifty percent seven
hundred thousand dollars. So the math doesn't no, mark, it's half of
that. He gets a step up. That's what I said. Half The
math has not changed, is my point. It's the exact same math.
So if your house is worth seven hundred thousand, now you're going to have
a basis of of your the one hundred you paid for it, and then
the additional three point fifty your basis will step up to four fifty. Okay,
and how do you document the value at the time of deal? I
don't think you stated that right town. No, Well, let me mention
this here. This is this is another situation. When there's a married couple
and one spouse dies, you still get the five hundred thousand dollars exclusion for
like two years, but after it goes past two years, your exclusion reduces
down to two fifty. Oh you become a single person. Yeah, yeah,
yes, so you but his basis will still be higher. That's true.
You still get that step up in the ass but your bait, but
your exclusion goes down. So are you going to First of all, did
you have your wife die? Aaron? Aaron? Sorry, I'm Ray,
I guess what's that siring to someone else? I'm oh, Ray, I'm
sorry, I'm sorry. Residency. Sorry it was on taxis and Ray,
Yeah, I'm sorry, did your wife die? No, I'm just looking
at it for my sister and a cousin and myself when the time comes.
Okay, but here's the deal. What Eric said is very important. You
get a stepped up in basis on half the house. So what I said
was correct. Mark, if the house is seven hundred thousand on the day
of death, his half of his basis is three point fifty. The other
half remains what it was on there. So he's going to have a stepped
up in basis. And if you sell it within two years of death,
you get the full five hundred thousand exclusion. If you wait two years,
it says if you're single filing single and you only get the two hundred and
fifty thousand dollars exemption, but you still get the stepped up basis. How
do I, I'm sure I get the step up basis? Do I account?
You know that's a good point. I don't know. How do you
document day of debt and all of that and the basis. Here's what's cool
about it. I've never seen anybody ever audited for this. It's just you
keep your own internal record and on your tax return that year you report it.
But it's just your own internal math record keeping. Just nothing you have
to do you don't have to have an appraisal or anything. No, it's
really losing. You just estimate. Yeah, and let's say in Ray,
Mom and apple Pie, you shouldn't have to pay taxes in the cell of
a residence anyway, So you just have your own document and you report it
on the tax return and that's all you do. Hey, and Ray.
The other thing in your initial example, where you have six hundred thousand inequity
and you would have to pay taxes on that hundred thousand, I would guess
almost everybody in that circumstance has put one hundred thousand dollars into their residency if
they've been there over ten years, such as the room, a furnace,
in everything else. I would just take interested in how you can ensure the
new basis. As he said, you don't. You just estimate and then
they he's never seen anyone audited on it. But just one quick question though,
on the calculation of basis. I want to make sure if it's worth
If he calculates it's worth seven fifty and half of his basis goes up to
three point fifty, is the other half half of what he purchased it for
or the whole purchase price on the other half. Say that again. Okay,
so he's got a house, Tom, That's exactly why I was saying.
Your math was wrong. So and it's worth seven hundred, right,
So now he has fifty percent of that basis goes up to three point fifty
half of seven hundred. The other half of the basis if he wants to
add to get his full basis, is it the one hundred they paid for
it as a couple or is that divided in two? It's divided into Okay,
got it. Fifth, That's what I was saying. That's okay,
so instead of four fifty, it's it's four hundred. But but but close,
Okay, I get it. So Aaron, here's the deal though,
and for anyone listening, and I never knew this. If you're married and
you're gonna sell it and get the five hundred thousand dollars exclusion, it has
to be done within two years of the death. More coming up on the
Troubleshooter Show. Go with a sure Thing Denver's Best Roofer Excel roofing dot com.
You don't pay a cent until you're content. Time for an insurance check
up free no obligation. In comparison, call Compass Insurance paying too much your
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the real estate man dot com to list your home with Remax Alliance three oh
three nine two zero sixteen twenty two. Hi Tom Martine, Okay, I'm
going to ask that you just be patient here. I'm going to bring up
Michael Abate from Atlas to talk about things we talked about earlier. I want
to get this on and he's busy. He's in a meeting right now.
But Michael, thank you for taking time. Are you there, sir?
I am welcome all right now. We had a question, okay, and
it's for higher income earners who can't qualify for a wroth. They can't simply
open up a wroth, okay. We wanted to know how would those people
get a wroth anyway through what's called a back door. Now. I understand
there's a lot of other circumstances, but let's talk about basically, uh,
the simplest form. Someone who doesn't have let's say a four to one k.
Someone who maybe has steps or iras how but they're making too much money
to do a wroth. What would be too much money to do a wroth?
So for single people you've got to a phase out of one hundred and
forty six thousand, one hundred and sixty one and married final jointments that will
hire at two thirty to two forty. So let's say a single individual is
making too much money to do a wroth. Is there a back door we've
heard about? There is what used to be called a back door, but
actually in the last few years was put into a new set of laws called
the Secure Act. So what the rough back door used to do is allow
you to put extra money into a retirement account and convert it when it's in
there. One of the benefits that happened with the law change, and this
happened two decembers ago, was that you were allowed to convert i toural roth
ira from traditional pre tax dollars without any income limitation. Now, so let's
take that one step at a time. So if someone has already a separate
ira, they can take money out of that and put it into a wroth.
Correct, But when they take money out of it, that money has
not been taxed. Do they have to pay tax on it? What happens
on a ROTH conversion, whether it's in an IRA or whether it's in a
four to one K plan, is a ten ninety nine R is generated and
it does show income for that year. It would show it on any ROTH
conversion. And the limit that you can do per year is seven thousand dollars
with an extra thousand and four catch up if you're over fifty. Okay,
so you can do eight thousand from a step an IRA or a four to
oh one K. Correct, you were allowed to convert that and no income
limit, no income limit, but you must take the income on that money.
Yeah, like a Schwab or a Merritrade or whoever you have, will
actually generate it when you're moving it from one to the other. Right,
I understand that, but but I need to know this. You do not
pay a penalty though for that withdrawal and transfer. You just pay the income
tax. Correct. It is just a conversion that's staying in an account with
a different wrapper around the type of account. So you know, Michael,
what was what was the changes? The changes were you could not do conversions
of after tax dollars that you put into a four to one K plan,
they close that back door off. What does that mean? What? What
do you mean that people used to pay tax and put it into a separate
IRA. Some work plans allow for you to put extra tax to third dollars
in and basically do a conversion on that. That was the rough back door.
You would put it in as an extra contribution you don't get a tax
benefit for, and then it gets converted you once it's in there. That's
what Mark was doing. But he's probably doing it knowing he has the right
people, so he's probably doing it the new way now, which in essence
it sounds exactly the same. You're just offsetting. I mean you really or
can you not put extra money in? If you work with your CPA and
find out what in terms of your limitations are and making a contribution. If
you're below that limit, you can make that contribution. But another idea,
and this is really along the same line as the back door, making a
non deductible contribution to an IRA then doing the conversion. Okay, you can
still do that, yep, absolutely then okay, and even if you have
a four to one K or other vehicles. You can still do a non
deductible contributions to an IRA. The four one K plan was really the chassis
it worked well on because it allowed you to put up to a limit of
It was close to sixty thousand dollars total. So the window now is smaller,
but everyone has the ability to use it. One thing I want to
be clear on. The four one K plan may allow for different circumstances and
conversions or an in service withdrawal. Yes, so you have lots of different
options in terms of how to address it. It's just working with the right
professionals now, Michael. One other question, then, these in service rollovers
are contributions? What benefit is there if you're already making tax deferred money,
why would you take the income and converted? Why would you do that?
So what I talked to clients about is looking at what I call bracket creep.
So you know where your tax bracket is, and you know how much
more income you can actually generate before bumping up into say twenty four to thirty
two percent. If you are able to look at that and say, okay,
I have medicare concerns, meaning I make a lot of money, I'm
going to have a surcharge on Medicare. Having money in a ROTH allows you
to get tax diversification on the back end, so you can control some retirement
costs, meaning there's no surcharge because you are blessed to make too much money.
Well, because that now not real. That income from the WROTH is
not counted. No, that is the roth IRA contribution for a four to
one K plan as an example, that is counted on your two But it's
after tax dollars, right, so if you make it. We got disconnected
somehow. I'll have to call them back. We got disconnected. I'm gonna
take a break. We'll be right back. Go with a sure thing Denver's
Best roofer Excel Roofing dot com. You don't pay a cent until you're content,
wait time for an insurance check up free no obligation comparison call Compass insurance
paying too much your coverage at dozens of insurance companies find out now three all
three seven seven to one help. You'll think you're his only customer when you
choose Frank durand the real estate Man dot com to list your home with Remax
Alliance three all three nine two zero, sixteen twenty two. Hi Tom Martine.
We're back with Michae Lavate from Atlas and we were talking about establishing a
roth. And I want to make it clear, if you have a retirement
plan already, you can transfer some of that money that you've had as a
deduction as a tax a tax deduction into a wroth, and then you pay
tax on the amount you transfer into the wroth. But that's the last time
you pay tax on that. So if you anticipate your tax rate going up,
that would be a good thing to do. When else would it be
beneficial to go into a wroth. So I can actually tell you with my
own parents as an example, if you are making Social Security income and you
have any kind of retirement plan distributions, you may be over that medicure level
where you're going to have to start paying that surcharge. If you take money
out of a roth higher rate to stay below that limit, then you can
end up saving a significant amount of money. Wow. So it goes to
the tax diversification of it with where am I going to take money from,
so that this it impacts me the least. But for people who make money
over the limit, you just can't open just a straight WROTH right now,
You just can't do it. Is that Nope? But remember you can do
a traditional non deductible contribution and check with your CPA on that, but you
can convert that non deductible contribution to a ROTH, so similar to how our
backdoor worked, I get it. And that non deductible contribution does not have
income limits. I think the income limits for all designed contribution plans are going
to be about three hundred and thirty thousand dollars this year, so like that's
the most you would be able to make. But the WROTH phase out is
two forty for Mary Finance one, so a lot of people can take advantage
of that for sure. Absolutely. Okay, Michael, I really appreciate your
time. Thank you so much. And of course Atlas epas and Advisors,
And if you wanted to talk to him, if you call the main number,
that would be good. I mean you can funnel the call to this
and Michael is a registered investment advisor, yes with Atlas three oh three seven
nine one one one. Okay. Now, the guy was calling Aaron,
this is really Aaron, and we were we were trying to get him some
help from Uh, we're still going to call Larson to see if they have
any tricks for getting transcripts quicker of the entire return. So hang on and
we'll get to you now. It is U Shabam's I hope I'm saying Sam
your name properly. You have a question on a traffic ticket. Go ahead?
Are you there? Hi, Tom? I'm here, Yes, sir,
Tommy snoot traffic valation is a parking violation? Okay, what happened?
You know, it's kind of weird. You know. I got a notice
from one of the lawyers from Room Pill yesterday. I got a letter and
he said that it's a it's a what it's called parking dollar for twenty nineteen.
Okay, but I need to ask you something. Was this private property?
I don't know because this one I never had it before. Okay,
listen this. I want to explain something to you. Okay, it's a
collection notice. It's not a site. It's not from the city. If
it's a mun If it's not municipal, you can ignore it until they sue
you. But they'd have to prove time date occurrence. And I think if
it's from nineteen, they've lost their right to do it. Make sure it
hasn't already been a default judgment. But I'm going to tell you in it
very shortly. It's in a very short go with a sure thing Denver's Best
Roofer Excel Roofing dot com. You don't a cent until you're content. Time
for an insurance check up free no obligation comparison call Compass Insurance paying too much
your coverage at dozens of insurance companies find out now three oh three seven seven
one help. You'll think you're his only customer when you choose Frank durand the
real estate Man dot com to list your home with Remax Alliance three oh three
nine two zero sixteen twenty two RiPP new need so you don't have come run
anxious as fast as you can show Shooter's gonna help come. Man six is
the Troubleshooter Show. No Tom Martino, Hi, Tom Martino here, Welcome
to the show. Three oh three seven one three talk three oh three seven
one three eight two five five the second have the Troubleshooter Show as we embark
on another two hours of action packed radio to solve your problems. And we've
had full lines all morning. Get your calls in on any and all topics.
Three oh three seven to one three talk three oh three seven one three
eight two five five. Goodness, we have learned a lot. And everyone,
do you hear me? Everyone should take advantage of whatever income deferral programs
they can do, whether it be a STEP which is a simplified employee pension
or whatever they call it. Well, what is it. It's self employed
pension or self employed uh whatever. Yeah, And then you have iras individual
retirement accounts, and then you have four to one k's, which actually you
can do even if you have a company and you're just the only employee.
You can do it for yourself and do both the match on each end.
Sometimes it doesn't pay to do that. It's better to just do the step.
But here's the deal. The point is, you got to take advantage
of as much tax deferrals as you can, or tax free or tax deferred
growth, because taxes eat up most of our income. Now, obviously we
should all pay our fair share, but you don't have to pay more than
your fair share. Deductions are there for a reason. And all of that
so atlas EPAS keeps us on course. Here Eric was talking to us earlier,
we talked to one of his colleagues, Michae Labat, about getting other
things going, diversifying your tax deferrals, but in any case, growing your
money tax deferred. However, there are people who have savings and money markets,
and they have bonds, and they have stocks, and they have regular
accounts where they want to keep ahead of inflation. But those are all subject
to taxes. Now, the good news is most of these places like Schwab
and a well Meritrade is Schwab now, I guess so. But most of
these platforms, when they issue a ten ninety nine eric, people don't have
to break out on that ten ninety nine interest long term and short term?
Isn't that usually done on the ten ninety nine automatically? Is automatic? Is
the ten undid ninet for interest, a ten ninety nine div for dividends and
another ten dy nine for capital gains? Yeah? Distinct? Yeah, And
the capital gains can be short term or long term, but you don't have
to worry about that as a taxpayer when you get your ten ninety nine,
that's usually figured for you, right, Yeah. And the difference for those
listening between long term and short term basically short term capital gains is nothing more
than just ordinary income, isn't that right? Correct? Not necessarily earned income.
I mean, well it is, but I mean it's not subject to
employment tax though. Right, it's just regular income, right, and regular
income is just subject to taxes, but not HR expenses and all of that.
The thing is you need to find as many legit deductions as possible.
What are legit deductions nowadays? You said depreciation for business is a big one,
and that could even be changing right now retroactively. Yeah, this is
a wild things. Listen to this. Listen. There's a bill going through
Congress right now. It's called the Tax Extenders Act, where Congress could pass
a bill that has an impact retroactively back to your twenty twenty three tax return,
mainly if you have a business. Because the big one is depreciation,
which may be increased if they pass this bill, plus R and D credits,
which is more of a business thing. So if it's while that they're
debating something which could impact your twenty twenty three tax return, so deductions for
depreciation. When people buy business equipment or things that wear out, the idea
is you get a deduction for the wearing out. I mean that's theoretically what
depreciation is, right, and then when that wears out, you get something
new, presumably and deduct that. What a lot of corporations, small mom
and pops, self employed people do. They're good on the depreciation part.
But when they got that truck that they bought and they depreciated and then they
sell it, what they don't understand is that now becomes income. Right.
And I'll bet you a lot of people don't recapture. I bet you they
don't. I mean, I mean, how does the government know when you
sold it? They would only know that if you reported it. Yeah,
and if you sell it, it's done. I mean, do people ever
get audited and they say to people, what happened to the last two trucks
you had? There's such a low rate of audit right now. I have
not seen that happen because they're not going off It's funny. They're going off
of schedule cee small earners and the big high earners, but not a lot
in the middle arena. I was going to ask who gets audited the most?
You just told me. So you have schedule. See people who are
self employed working their asses off, and you have high earners right, regular
wage earners are never getting audited, very rarely, almost never. If you
own could you own something, Eric like I don't know, seven to eleven
whatever, some kind of business and you work there and you manage it,
but you're also the owner, and instead of actually taking a salary, you
basically just issue yourself a K one at the end of the year and you're
basically paying whatever it is twenty twenty five percent compared to up to forty plus
percent. Is that where is that line? Mark? That is a great
question, and it is something that comes up a lot actually, and it's
called fair compensation, right, isn't that? Don't you have to take fair
compensation? If you have an es corp. The ISO expects you to show
some kind of what they call reasonable compensation on page one of your corporate tax
return. But you can take the majority of it. If it's above reasonable
compensation, you can take it as investment income. You can take it on
investment in ordinary in ordinary but not subject to the payroll rights, right,
Yeah, And it's not subject to the Medicare and tax either, which is
part of the payroll right, So yes, Mark, But you'd be shocked
at how many business people try to take all of their income outside of wages.
Well, it's interesting taking the seven eleven approach. You know, if
you're running your own seven eleven, and you know a manager of seven eleven
makes forty grand a year, but the stores making you a half a million
a year, I would guess long as you paid yourself that forty thousand,
that's right, Zerro, you can take the rest of the profit at that
four point fifty without paying the additional taxes. But now remember there's another thing
to take into consideration, because everyone who is self employed in a way,
I'm self employed, you're self employed in a way. There's a benefit too
though, However, to taking more in a wage. If you wanted to
start taking and creating pension plans or for one k's or that kind of stuff,
you can't do that on ordinary income. Can you without I mean without
payroll income, can you? Or not? No, you need to have
earned income or payroll income. And that is the main reason why we've seen
clients evolve from originally trying to take a really small wage. But the older
you get and the more you start to think about I want to maximize my
retirement benefits and to do that you need to report payroll wages so you can
max out your retirement dollars. So the benefit of getting more retirement deductions is
bigger than worrying about once your income goes over one hundred and seventy or one
hundred eighty thousand dollars, you're only talking about a couple of percentage points of
earned income payroll tax, So you'd rather get a bigger retirement benefit, exactly,
exactly, So it is. It is a delicate balance between what you
take as a wage and what you take as you know, the business profits
to speak right which and profits not subject to HR. But also you can't
with profits necessarily benefit from all of the retirement tools. So again that's a
delicate balance. We have some other things to talk about as well, but
I invite your calls at three oh three seven one three talk seven one three
eight two five to five. I've always wanted to ask this, and I
swear to God when I asked this. It has nothing to do with me
personally, But I've seen it in so many shows right now, and I've
heard it so much that I really don't know how it's done. What is
money laundering? People? And I'm serious I'm not trying to tell people how
I'd break the law. But when people say they got a launder money.
So let's say you have an illegal business, you're making tons of cash.
Again, people, this is not this is not me a kind of sneak
in a question, and I really mean it. So you got a ton
of cash and then they have a business. So how is it that they
want to take this cash and start using it? And in order to do
it, they actually want to claim it and pay tax on it so it
becomes real income. But how do you run cash through a business and launder
it? How do these criminals launder money? Do they make up receipts for
things that are sales? Like are they claiming people came through their doors?
And if they did and bought product, well how do they I don't understand
how they show income for product if they don't have product. So I don't
I mean, and you may not even know because I'm not you know,
I don't know if I'd like an accountant who's very adept at laundering money.
But I'm just I mean, seriously, Mark, do you know what they
mean when they talk about laundering money? I'm curious, of course, no,
seriously, how would you use a business to launder money? Well,
somehow, Let's say you get money from a drug deal one hundred thousand bucks,
and ultimately you don't want to keep it in your bed. You got
to figure out how to get it into a bank and not get it flagged.
So you might you know, you might own a dry cleaners. You
know, we'll use that an example, and you might just have totally fake
books. You actually don't do any dry cleaning or very little, but you
pump it up and you take it. Now, I can see that you
don't have an actual product, like a hotel or motel. I could see
where you'd run phantom guests through the rooms because you're not depleting. You're not
depleting anything, not only a phantom guest, phantom expenses, phantom everything.
Right, but but but but that's right, house cleaners and all. But
to actually make up products, I mean, you can't say you sold stuff
if you don't have cost of sales anywhere, And to make up cost of
sales that would be too much of a web you're weaving. So I'm wondering
which bit, like I hear laundromats are good for or or you just have
a real bisonans like a restaurant, something that actually makes money. So you
have a restaurant and it's you know, somewhat successful, mediocre, but it
takes in a lot of money. You could simply making deposits in there,
not running them through your point of sale, and then just shifting that money
from that bank account to somewhere else. Okay, Seeing Mark knows about laundering
money, I know you want to say that. Also, God just send
to check. A lot of people get caught up in these scams where they're
sent sent a check that buy a product and they're supposed to send the money
somewhere else. That's money laundering or it's a pure ripoff. Yeah, pure,
more of a pure ripoff. Now, Deputy Doc being a gynecologist for
years, he could have laundered money easily. He could have just claimed instead
of examining forty women, he examined one hundred. I mean really, I'm
not serious. I mean that would be something where you're not depleting a product,
you know, inventory. I think where you get into inventories where it
gets very complicated. Yeah, because you would have to Tom, we could
easily have lauded money because we got You know, if it gets so on
based cash, there's a way not to just book it. You just assume
that their insurance covered it. Yeah, that's true too. Well, No,
the whole idea would be to claim the cash. That laundering is just
the opposite of what you were saying. You would want to claim somebody paid
cash, so you have a way to deposit your cash anyway. It's it's
a fascinating topic. But I always wondered every time I see one of my
crime dramas, I always wonder, why do they buy this business and how
does it launder money? Now, a gambling casino, My god, would
that be the best way to launder money? Do you think right now there
are businesses right here in Colorado legit, well what appear to be legit businesses
that truly are fronts for laundering. Of course there are. Do you think,
Mark, there's actually businesses that are fronts for for cornering money? I
mean, I often see things and I gotta take a break. Sorry,
we got more coming up. Go with a sure thing Denver's best roofer excel
roofing dot com. You don't pay a cent until you're content. Wait time
for an insurance checkup free, no obligation. In comparison, call Compass Insurance
paying too much your coverage at dozens of insurance companies find out now three all
three seven seven to one help. You'll think you're his only customer when you
choose Frank durand the real estate Man dot com to list your home with Remax
Alliance three all three nine two zero sixteen twenty two. Hi Tom Martino here
three all three seven one three talk three oh three seven one three eight two
five five. All right. We are fighting for you each in every day
we've had some interest seen calls say we're trying to get answers on. And
one of the things we, uh, we're having a problem with is TurboTax
because everywhere I look, I can see nothing nothing where TurboTax can delete pdf
files. And this one man that called, and I'm waiting for any any
informo call, but this one man that call said he has TurboTax as a
downloadable program and does his taxes with TurboTax. He took an upgrade on it
or not an upgrade and an update where it comes in and just updates that
program. And now all of his accompanying or data files are gone. Those
data files have no connection whatsoever to TurboTax. They're so REPDF files and everywhere
I'm looking, there's no place where it's even possible when you update that program
for it to reach out and erase PDF files. He even said it erased
on a remote drive he had. Now that just is not technically possible.
So something is going on. I don't understand it, but you know,
it doesn't mean we have to share that fantasy. Because if someone tells me,
you know, I saw my dog fly and he went away and I
can't find him, I'm not going to go looking for a flying dog.
So there's nothing I can do about that. And no one has been able
to explain it, and no one can because it just doesn't happen. Three
zero three seven to one three talk seven one three eight two five five.
And speaking of TurboTax, here's the thing that's really strange with TurboTax. They
have been fine big time for claiming they had free service when they did not.
Have you heard about this? They yeah, Eric, Eric, they
got in big trouble. They got in very big trouble saying that they were
free when they I guess eight out of ten people went there were charged and
you get done and they have these charges and apparently they're stealthy and they're not
open about it, so they were fined. And people are being warned if
you use TurboTax, they do have a free version and not to be tricked.
So that is something to be aware of. Three zero three seven to
one three talk And because it is February now we need to talk about romance
scams. They continue to be the number one rip off for women, middle
aged women, especially widows. One woman listen to this. Her name's Debbie.
She lost more than one million dollars, not all at once, but
it was from her retirement account, her bank account, and her credit cards.
She got to know a guy online that caught her eye, some English
gentleman who told her everything she wanted to hear. She loved his picture.
He supposed his name was supposedly Eric. They began chatting and then something urging
came up and he needed a few bucks. She sent him money venmo.
Then she sent him more, and then they started to talk about living together
and all of that. She started making payments from twenty five hundred to ten
thousand dollars here and there, always for business opportunities. He claimed he was
making a lot of money and he was going to share it with her when
they got together. They were communicating for two years and during that time she
transferred more than a million dollars. During that time, he would also transfer
money back, so that allowed her to believe him even more so then she
would transfer it back to him. So it would go back and forth,
but the net result was more money was going out than was coming in.
Now, one time she's online, she says, and Eric says to her,
how do you feel about now? He came out on his own and
said this, how do you feel about forgiveness? I guess the guy was
feeling guilty? And she said, that's a weird question. Why do you
ask? He said, well, I have a confession to make. My
name is not Eric and I am not from England. He was a young
man, a Nigerian man from Nigeria, communicating her in Nigeria. Now here's
the crazy part. He apologized and asked if they could have a real relationship
after all of this. She was shocked. First of all, he was
young and totally different than who she expected to see and thought she was communicat
she contacted the FBI. Guess what, they have more than four thousand reports
of this kind of stuff going on, and many of them turn out to
be from Nigeria, some are from India, some are from the Philippines.
Now is that incredible? How do you get truly that involved with someone that
you've never actually seen. They don't even zoom, by the way, They
were just communicating with photographs and here and there in texts and snapchats. How
do you do? Can tell you how these these women and men are so
desperate that they need somebody in their life. And you know, I would
say ninety five percent of them are either in the military or working on an
oil rig where they can't be contacted, so they keep the scam going on
and on. And I tell people, if you're suspicious, it's so easy
to go on Google and do a reverse image search and that will usually show
that the picture has been used in a whole bunch of different cases, and
it's not the person that you're talking to that scene. Like Deputy Doc for
example, Sounds experiences because he works at AARP and does a lot there and
romance scams. I mean seriously, they come in engine every day. And
the other thing that amazes me, Tom is that you get women who believe
and men too, who believe that celebrities are going to want to be with
them, that are going to give up their career and marry these people.
I've had people from who was it, Paul Simon was going to do it?
And some other R and B actress, and these people believe that these
celebrities are willing to give up their celebrity lifestyle and marry a frumpy widow from
Kansas. You know, there's just no reality testing Thatchniques love doc. But
by the way, I just love how you talk. I love it.
And by the way, it's amazing to me how many of these are out
there. And as they say that February is one of the worst months because
people are desperate to find someone. And do you know a vast majority of
people actually dread Valentine's Day because there is such an emphasis on love and companionship
and there are so many, uh so many lonely people. It's kind of
sad. Three oh three seven one three talks seven one three eight two five
five. By the way, Ideal home Loans still doing home loans and one
difference. They have the interest rate guarantee, so when rates go down or
if they go down, you get financed refinanced free of charge. Ideal Home
Loans dot Com three oh three eight six seven seven thousand. Go with a
sure thing Denver's best roofer Excel Roofing dot com. You don't pay a cent
until you're content. Time for an insurance check up free, no obligation comparison
call Compass Insurance paying too much your coverage at dozens of insurance companies find out
now three all three seven seven to one help. You'll think you're his only
customer when you choose Frank durand the real estate Man dot com to list your
home with Remax Alliance three all three nine two zero sixteen twenty two. Hi
Tom Martino here three oh three seven one three talk seven one three eight two
five five. Eric, We have somebody who wants to know how long do
they have to start an IRA or a STEP or a wroth. Can they
do it after the first until they filed? Is that open for that right
now? Can you still do it? You can do an IRA, but
for an SEP, you're supposed to have it funded by the end of the
year, or at least open by the end of the year. Okay,
So you can't do that retroactively, right, but you can do a SEP.
Can you do an ira? You can do an ira? Now what
somebody else wants to know? The contribution limit for an IRA, that's I
believe it's seven thousand dollars and one thousand dollars add on if you're fifty years
old. That's only with income limits, right the IRA. Sure, that's
that's right. There are income limits to the phase out the more you make,
right okay. And then once you establish that, that grows tax deferred.
When you're talking about traditional or roth an ira, a regular ira,
a regular ira, it grows, but then when you take it out,
it's taxable, right right, Yeah, So are you finding more people opting
for the iras or the wroth I rays? Right now? The conventional or
the wroth The majority of our clients are going for traditional because they're still eager
for those current tax deductions. Okay, it's just what most folks are doing,
all right. Three oh three seven one three talks seven one three eight
two five five. And when it comes to owing and they file again,
we've we of course, we have this discussion all the time with Larsen.
Can you establish an installment plan on your own? Do you send in a
payment? What do you do when you file and you owe? As a
matter of fact, now there's the IRS is very ledient on getting these installment
agreements going. You can actually file with your tax return requesting an installment agreement
up to five years. And how do they do that? Do they charge
the going rate of interest or what? How do they do an installment agreement?
They'll do it and they'll just charge you whatever the going interest rate is
and that changes for month to month. Right now, seven or eight percent
per year, perpetually, depending on whatever amount of money, just like just
like any You can get it up to five years. They'll give you up
to five years. You'll pay for it, you'll pay interest. But who
wants to it just depends do you really need a seven or eight percent interest
loan or not? It depends on your circumstances. Well, it's better than
a credit card or something like that. That's true, it'll it'll be a
credit card loan. But it's just kind of difficult to be borrowing money from
the IRS to fund yourself. And as far as installments do a lot of
people. Are there a lot of people percentage wise? Do you think that
go for installments? Probably? I bet it's less than ten percent, maybe
five percent. Most people just pay their taxes and move on year by year
or they've had enough with hell. I think the most people have problems are
the ones that don't withhold. I think it's self employed, in employed individuals,
or sometimes we've seen people they underestimate with their W two. They'll tell
their employer, give me nine exemptions because I don't want to have money withheld,
So they get themselves in a jam when they go to father taxes.
And is the law still the same on that you can take as many exemptions
as you want. You can report whatever you want. It's not depending on
how many kids you have. You can literally tell your HR department, I
want eight exemptions because I've got these other deductions going right. But then if
you underestimate, you not only end up having to pay, but you could
end up with a penalty even if you're even if you're a W two employee.
You bet you know what you know what tries to me crazy guys.
So the government, even though the taxes aren't due till April fifteenth. I'm
just taking individuals, not corporations. But it's amazing to me that you have
to pay quarterly. It's amazing to me if you get paid every two weeks
you have to pay tax is the second week of January twenty twenty three for
a tax bill that's not due till April fifteenth of twenty twenty four. But
if you don't pay quarterly, this would never go down with most individuals.
But if you don't go quarterly, Eric, you really don't pay that much
in penalties. I mean, let's say let's say you owe four hundred thousand
in taxes. That penalty for that four hundred thousand dollars for not paying it
throughout the year, but paying it on time on April fifteenth is only a
few grand isn't that correct? Well? Yeah, that is a good thing
to talk about. Hold on because people, that's exactly I just got a
text on that is, if I don't file quarterly and just pay my tax,
what are the worst consequences. We'll talk about that coming up. I'm
Tom Martino go with a sure thing, Denver's Best roofer Excel Roofing dot com.
You don't pay a cent till you're content. Time for an insurance check
up free, no obligation. In comparison, call Compass Insurance paying too much
your coverage at dozens of insurance companies find out now three all three seven seven
to one help. You'll think you're his only customer when you choose Frank durand
the real estate Man dot com to list your home with Remax Alliance three all
three nine two zero sixteen twenty two. Hi Tom Martino here three O three
seven one three talks seven one three A two five five. Waterpros dot net
will get you the best water systems at the lowest prices. Whole House Filter
is starting at twelve hundred bucks to get out Forever chemicals. Please don't take
chances water Pros three oh three eight six two five five five four. So
we're talking taxes. We have another hour to go, and when we talk
taxes, it's really important that you do the right planning. And of course,
many of the things you can do before April five fifteenth, including funding
an IRA or a set, but not a step an IRA, but here's
the deal or a wroth. You need to now start looking forward for the
following year. And again people want to know worst case scenario. If they
don't pay quarterly, if they're self employed or whatever, and they just pay
before April fifteenth, what's worst case scenario. Let's say you owe you're self
employed and you're doing all okay, you owe thirty thousand and forty thousand.
How much more would you owe percentage wise? If you're not paying in fifteen,
ten or fifteen percent? That's worst case scenario. The worst case scenario
is if you don't file on time, you can get to file on time,
meaning what file on time? It means the April fifteenth, file on
time April fifteenth, or the worst most cases, you can file to extend
your return out to October fifteenth. Some people don't even pay by October fifteen,
and what kicks in is a five percent per month. No, we're
not talking about that now. Let's talk about let's talk about self employed making
no estimated payments at all. You're outside of safe harbor totally. You owe
thirty How much more than thirty would you owe? Ten to fifteen percent?
Okay? So is that worth it? Mark? That puts you in a
in almost another tax bracket. I mean because you said it's not that bad.
But go with a sure thing Denver's Best roofer Excel Roofing dot com.
You don't pay a cent until you're content. Wait time for an insurance checkup
free, no obligation. In comparison, call Compass Insurance paying too much your
coverage at dozens of insurance companies find out now three oh three, seven to
seven to one help. You'll think you're his only customer when you choose Frank
durand the real estate Man dot com to list your home with Remax Alliance three
all three nine two zero sixteen twenty two. Yeah, Rip News need advice
so you don't have come running sious As fast as we can, show Shooter's
gonna help. Come man, this is the Troubleshooter Show. No Tom Martino,
Hi, Tom Martino here, Welcome to the show. Let's talk.
We got a final hour going. Get your calls in. If you have
problems, question, complaints, anything you want to talk about. We're here
to talk about it and to help you, including great sponsors like Denver Regen
dot com. Now I'm gonna tell you the weight loss uh rage. Denver
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But it's the Semiglue Tide, genuine compounded Denverregen dot com. Now Albert's got
a real estate question. Albert, welcome, you're on the air. What's
going on with hey Man? Good? Uh? A couple of years ago,
I got in trouble with a virus truck and I was behind, so
they put it's a mortgage question. They put the payments about a year behind
the mortgage. I didn't know it was a balloon. So now they want
twenty two thousand in cash and I can't find Wow, wait a minute,
was this during Was this during COVID? Yes? And so you took a
deferment program, right, I didn't know it was a blue I didn't know
I had to pay the whole thing back, so I only owe twenty two
thousand in the house. And the question is, now, wait a minute,
then you only what is your loan balance in general, your whole loan
balance, the balloon, just the balloon twenty two and change. That's all
you owe on the whole house. Correct, I don't get it. When
you took the deferment, your balance was how much? Oh what I could
deverment about one hundred and eighty. But I had another house. I sold
the house, so I paid everything off on both houses and the cars and
all that good stuff. Oh no, And then you got to notice saying,
wait a minute, you still owe some money. Correct? Got to
know that, Well, where did you think? Where did you think that
money was going? Or where did you think? What did you think was
happening to your payment when you took the deferment. I didn't pay nothing because
I didn't have a job by the time. But I get it. But
where did you What did you think? I'm asking you now there's no correct
answer. What did you think was happening to the payments you were missing?
I was gonnau. They were just going to keep giving me mortgage payments until
I paid it twenty two. I thought it was just going to keep going,
say, thirteen hundred a month, I said, of they want to
lump some of twenty two thousand years. So you thought that after the deferment
program you would pick up your normal payments and the balance we'd be put at
the end of the loan. Right? Did it put it at the end
of the loan? And then I thought I was just going to keep paying.
Did you sign anything when you did this deferment? Yes, but I
didn't know it was a balloon. Okay. So if you already paid off
the house and they came back to you saying you owe another twenty two,
when what does it do in a march? You should be able. You
should be able to get that standing on your head. No, I know
I can't. I got it. You have a house completely paid for that
you only need twenty two thousand on correct, And I don't have the credit.
I've tried through two or three different places. They've denied me. What
the question is is what I'm asking you, and then they don't. They
want to help to refinance, but they don't do twenty two. They want
me to borrow sixty and I don't know. I get it, man,
I get it. I totally get it. Twenty two is too small?
But how old are you? Right, Albert? How old are you?
Sixty two? Okay? Question is the question is tom your experience on that?
If I can save it for eight or nine months, you see,
that's enough time. They won't for clothes on my house. No, they'll
for clothes. They'll fore close because there's a lot of equity there. I
would suggest, have you thought about doing You don't need credit, hardly any
credit, I should say, for a reverse loan? Have you thought about
that? You're sixty two, you have a house that's totally paid off,
and all you're looking for is twenty two grand. Correct. Here's the part.
Listen, what can you pay a month? Man? We could pay
that's still the twelve hundred dollars that we've been paying. No problem, you
can do a reverse loan. But how long? How long do I have
to do? What do I have to pay that back off when I sell
the home? Albert? Albert? Here's how a reverse a reverse loan will
work anyway you want it to work, meaning this, listen carefully, okay.
If you want to get twenty two grand, it would be relatively easy.
Now, as soon as you get that twenty two grand. Normal payments
on that figured at about seven percent right now, maybe six and a half.
They will accrue against the house, So you'll owe twenty two grand,
and then the next month you'll owe a little more and a little more,
and it keeps accruing. Okay, now you have to pay your taxes and
insurance. But you can make payments on that reverse loan if you want.
You don't have to, and you can make as many payments or as much
as you want to keep and start paying it off. If you don't want
to pay for a year or two, you don't have to. However,
you will have some interest or cruel on it, but it's better than not
having the money, and you can get it paid off whenever you can get
it paid off you it's like any other loan. You can make advanced payments,
you can pay interest, you can pay whatever and pay it off if
your o ANDE truly is there's only twenty two thousand, and there's no weird
stuff. I mean, I would do a second for you on a five
year deal and your payment would be way less than the twelve hundred mark.
What would he lock do? He's not gonna qui he's not. If he
doesn't have credit, he's not going to get it. Okay, I can't
qualify. I try helock. I've tried helock. I've tried, uh,
equity loan. None of those work for me. None, So Mark suggesting
a prom excuse me, a private loan. Private loans are an option if
you don't get raked over the coals with rate. But no matter what,
a private loan would be better than a reverse loan because you're not going to
have interest or cruel on an interest. If you can continue making that payment,
then you could probably get a private loan until that's paid off. Private
low. Don't you need credit for that private loan? Well, it depends
on who the lender is. If if literally and again I I really hate
doing personal stuff like this on a radio show when a listener calls in.
But theoretically, if someone wants to loan you five grand, excuse me,
twenty two grand, they can decide what credit they need if they if you
have enough equity in the house and they figure you'd be insane not to pay
them, they'll just take your house. I mean that's what That's what Mark
and any other lenders thinking they're thinking forget you, bro. If you don't
pay, I don't care. If you have credit, I'll take your house.
What's your house worth? Did you say about four point fifty? Yeah,
so what moron won't give you twenty two thousand or even twenty five or
whatever that they're going to charge you a couple points up front. You're gonna
have a loan at the end. Let's say you have a loan of twenty
five. Who's not going to give you twenty five grand at a certain percentage
rate? And yeah, fact pay wouldn't be happy. They would be happy
if you didn't make your payment. They get payment. It's going to be
a lot less man. I mean, you'd be looking at around six hundred
a month instead of five years. But you have all paid off in five
years. Or you can pay it off quick. We can, we can,
Yeah, we can pay it off. We can pay it off at
two that's no problem. Well, it doesn't matter if you did get hard
up. I mean what I look at when I do stuff like this,
I don't want you to default. It's the biggest pain in the ass in
the world. So that's fine. If you want to make extra payments,
make all you want but when Christmas comes and you want to buy the grandkids
more stuff, you don't owe the twelve hundred a month. But if you
want to pay it off in one month, it doesn't matter, Albert.
There are a ton of people that will do that for you. Do you
have a retirement account? No? No, everything everything is in the house.
And did you say you sold another house? Yes, I've done everything,
Risty, I've never had I never dealt with the I didn't know how
to do it. Four one case. I wasn't into that. I was
into putting all my money into the rhythm state. I get it. So
the payment deferment, the payment deferment has come due. What I don't understand
is this, when it came time to pay your house off with the proceeds
from that previous house, why didn't they include that in the payoff figure.
I don't get it. Yeah they didn't. They didn't. I missed it
because it was we Wait a minute, Wait a minute, are you sure
they didn't when you you requested a payoff figure? Right? Correct? Of
the first loan, not the second loan? What's that they created a second
loan when they did the deferment. But they if they knew he was paying
it off. They should have given him a payoff figure. It was the
same. But the lender the O and he's going to show everything, Albert,
who was your lender? Yes, and they bought it off. They
went from home uh uh service financing to mister Cooper. Now mister Cooper has
a loan. Who's mister Cooper. I don't know they bought it. They
bought it in the some reason another day. We used to have mister Cooper's
big we used to have mister Cooper. Yeah, okay, they bought it
in the I don't know why they do that. They buy it in the
end with the four payments and then the balloon in the back. I only
had like four payments left and then in the balloon in the back. So
they they bought it from UH one financing. I don't tom, that's probably
what happened. They bought out just the first with the two payment or the
four payments left. They didn't buy out that other part. Yeah, but
they carry it. Mister Cooper has the second one. Yeah. But I
think they're all I'm saying is I think they're just a servicer as well.
It's possible they were just servicing the main loan, and then that second balloon
or that deferment, whatever you want to call it, was still sitting there
exactly because if I would have had the cash and I would have known that,
I would have paid the balloon. And then when did you pay off?
Here? When did this payoff happen? How long ago November? Why
did it take and when did they notify you about the second? When I
started paying off, when I started looking at the computer, when I started
seeing the payoffs, and one time it popped up twenty two and change in
the back of it, and I said, what when is this? And
so I called? They told me, no, that was the firm that
you did years ago, but we needed cash and they won't work with me
because they want they want me to refinance. Said, I'm not gonna do.
I'm not going to pay closing dolls and borrow sixty thousand. Then I
got to give them forty thousand back because I don't need it. I just
want to get rid of this twenty two. So I figured maybe I can
save in six months. And sometimes I've heard that four closures take more than
six months or eight months. No, no, no, no, you
never want that you don't want that to go on, No, because then
you're gonna have legal fees and all of that, so it'll be more than
your closing costs on a new loan. Oh really okay, Yeah, you
don't want to do How do I get a hold of you know, you
do a Google searching, twenty thousand things come up, private scams, all
kinds of well listen, listen, Well I could get ahold of Mark.
Yeah, he wanted to do a private loan. But just just be careful,
okay, And I want you to get advice from somebody outside of this
show, please, Like I said that, you know, people don't call
here to uh we don't. We don't make money off of callers. That's
not our reason to be here. But he was offering it. Just do
that privately away from me. Just you you figure that out. Again,
there might be other people who are willing to loan you money as well at
better rates. You should shop around if if you're looking for a private loan,
But I warn you of this. Most private lenders are going to try
to take advantage if you. Okay, not Mark, but most will,
so be really careful. But again, I just wanted to give you that
caution three oh three seven one three eight two five five Go with a sure
thing Denver's best roofer Excel Roofing dot com. You don't pay a cent until
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com to list your home with Remax Alliance three oh three nine two zero sixteen
twenty two. Hi Tom Martino, you're troubleshooter. Three oh three seven one
three eight two five five. Eric reinimers with us from uh Atlas, CPAs
and financial advisors. And we're talking about taxes, finances, consumer problems,
questions, complaints, and so let's talk about something else I wanted to bring
up. Did you know that Denver has an app out? It's a snitch
app. Now, I don't know if they call it a snitch app.
That's what I call it. Have you heard about it? It's the Denver
the Downtown Denver Business Improvement district. And do you know what the purpose of
this app is? It's an app where residents or people visiting downtown can take
pictures of things that don't seem right, and it reports it automatically to authorities.
Have you heard about this app? No? It sounds stupid and it's
for real now in the first I bet if you take a picture of someone's
shoplift and nothing happens right right? Probably now, The city's finance department says
that they have a ton of reports and it's in conjunction with safety, housing,
education, and homelessness. So I'm not sure it's supposed to be for
safety and housing. I don't get it, though. I don't get what
you're supposed to see that they want to know about. See, that's the
part I don't understand. But it's also an adjunct to the Yellow Vest Ambassador
program. Do you know about that? Mark? See, you haven't been
downtown recently, have you? No? Man, it's I'm gonna tell you,
Okay, I'm going to tell you something. The six String Street mall
is dead. Do you remember how vibrant and wonderful that was working around to
stay down? There was zand during the summer and stopping for lunch and coffee,
and it was it's all man, Okay, So many places are boarded
up and gone and the people and how about stuff like the Brown Palace.
Is it still there and open or is it like a homeless shelter? Now,
no, it's there, but you know it's it's a it's a like
an oasis. I mean, you know it's but but if you go to
the Sixteenth Street Mall, a lot of the businesses are boarded up, windows
are broken, people are hanging all over. It's nothing, nothing like it
used to be. Nothing. And there's elsewhere downtown there's encampments all over it.
It's it's shocking. I mean, it really is shocking what has happened.
And I'm just gonna there's you know, hey, Tom, you know
what being in New Yorker Times Square was like that under democratic administrations. But
then when you got Maya Koch and Julie Juliani, it became a clean,
booming place. Now when they just went in and got out of all this
the you know, the pornography and the but now but okay, but it's
it's now back to Democrat control. So what's the excuse, Because it was.
It was such a tourist attraction that there's no room for any of these
sleazy places. They can't afford the rent and the place is always crowded,
so there's much less crime going on. But what you don't penalize people for
committing a crime, They're just going to commit more crimes. It's the dumbest
thing anybody's ever thought of. No, Mark, it's kind. He didn't
call it. Whatever you want, look at Look at what's happened to our
city since they've done it. Look what's happened to California like every city.
You know, Mayor Web let's talk about homeless real quick. Mayor Web was
a Democrat. You know what he would do with the homeless? Does anybody
know? No, he'd get him one way bus tickets to California, that's
no Joe did he did? He used to do that. Now, by
the way, speaking of cities and thriving cities and all that, do you
know, actually someone someone took a survey of personal growth. Now, now,
don't don't get me going, okay, a survey on personal growth to
see where most personal growth and advancement has taken place. And they've done it
based on yoga, exercise, healthcare, a mental health, all kinds of
a matrix on where they feel, oh, education, where the best personal
growth has taken place? Hm? Hmmm, where do you think the most
personal growth has taken place? According to this survey? I don't understand what
you mean by personal growth? Okay, well I did, didn't. I
just tell you. I just told you yoga, an exercise, and and
and self improvement programs and uh, all of that. I mean, it's
a it's a whole matrix of stuff overall. They they went by, uh,
the gyms, the fitness, the hell even beliefs and uh like security,
financials. None of that, None of that is personal, Tom.
What's that? Are the cities or states? States? College up there?
The number one California. Well, let's let's just go to the lowest.
Let's just go right there, the lowest miss Nebraska, ooh, and next
West Virginia. These are the lowest. I went from the lowest to the
next lowest. Then Maine, Indiana, Michigan, Pennsylvania. These are people
with no growth Idaho, Nevada. But who is in survey? Washington State,
Ohio, Iowa, North Carolina, Massachuset. Okay, you want to
hear the biggest growth areas the number one Georgia, next New Jersey, then
Mississippi. Now this has no rhyme or reason as far as politics go,
by the way, everyone wants to put a political thing on it. Connecticut's
next, Maryland, Alabama. These are the top in the top ten.
Okay, Georgia and Colorado number eight of the top ten, Arizona number nine,
North South Carolina number ten, So Texas right up there too. So
you know it's a mix of politics, by the way, But what's that
I gotta take a break, speaking of personal growth. If I don't take
a break, I don't get personal growth. Three all three, seven,
one, three, eight, two five five. Go with a sure thing
Denver's best roofer Excel Roofing dot com. You don't pay a cent until you're
content. Time for an insurance check up free, no obligation. In comparison,
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his only customer. When you choose Frank durand the real estate Man dot com
to list your home with Remax alliance three all three nine two zero sixteen twenty
two. Hi Tom Martino here three oh three seven one three talk seven one
three eight two five five. Somebody wants to know about ten ninety nine matching.
What are the chances if you get a ten ninety nine the IRS is
going to ask about it if you don't report the income. Eric Reinemer ATLAS
CPAs and Public and Financial Advisors, what do you think. I think it's
really likely you'll get a letter back, because that's the only thing they know
how to track really well, is to they do it really well because this
computer generator doesn't need a human being. It's just Eric. I gave this
example before I'm going to give it now. I had some various income streams
from royalties, gas and oil royalties. Not that much, but there's a
there are a ton of them, right. I used to try to be
conscientious and when I got checks, I would track them on an Excel spreadsheet
and give them to you, and then you would you would count them as
income. That's what I used to do. Then I'd give you a handful
of ten ninety nine. But the main track I kept track of was on
my Excel sheet and there were honest to god checks that I got on that
Excel sheet that did not show up in ten ninety nine. I don't know
why. I don't know why never got a ten ninet nine. Then there
were others that I you know, I got ten ninety nine for that weren't
on my sheet. Okay, I got so tired of reporting what but was
accurate income being flagged by the IRS. Remember, get a letter saying where's
this show up? And I say, it's in my overall earnings. Okay,
I stop doing that. I don't know if you noticed, but I
stopped giving you a spreadsheet and all I do is give you the ten ninety
nine. So really, there are some that I don't get ten ninety nine
for, but I'm not reporting them. And I'll tell you why, because
the IRS has more problems with you not matching ten ninety nins than reporting accurately.
Does that make sense? I mean, why do some companies not send
out ten ninety nine when they're supposed to? Do? You know? They're
just maybe lacks. I'll guarantee you that if I take my ten ninety nine
from Gas and Oil rows and add them up, they're going to be less
than the actual checks I actually got, Eric, when are you supposed to
actually so I spend a lot of money with example, iHeart, Am I
supposed to send iHeart a ten ninety nine? That's always been confusing Mark out
if I'm even a ten ninety nine? Yeah? How about if you go
out to the same damn restaurant and write it off every day, and you
spend fifty thousand dollars with a restaurant, do you give them a ten ninety
nine? What watch the rule? What like? I'll some of my sponsors
actually send it ten ninety nine. I think I don't work for them.
I mean, I'm a company. What do you send a ten? As
Mark said, do you send it ten ninety nine to every vendor you deal
with? No? The payer whoever is for a service when you uh you
it's when there's a service render, the payer is supposed to issue the ten
hundred nine. Well, okay, when somebody advertises on channel nine, do
they send Channel nine ten ninety nine? Of course they don't. You're exempt
if it's a corporation, okay, yeah, But apart from that, you're
supposed to send ten ninety nine if it's an individual of any kind. Yeah,
any entity besides the corporation. So technically, Eric, if I hire
a landscaper and he does ten grand worth of work, I'm supposed to hit
him with a ten ninety nine. Yep, unless he's a corporation. What
if he's a an Lkay, Well that's the whole line. What if he's
what if he's a sole proprietor and he has a business, do you send
him a ten ninety nine? Still? Yeah, Okay, go ahead,
Mark, I get a ten ninety nine from anybody that does business with me
for the most part, I end up getting a ten ninety nine. And
for the life now, I can't understand it. Because you're claiming the income
under You're claiming the income under your business. The same with me, and
I will have I will claim all of my income under Troubleshooter Network. Yet
I'll get ten ninety nine's for a lot of this up I already claimed.
I know. I mean it's crazy, But do you have to the ten
ninety nine in your in your tax return even if you're claiming the income the
technical ten you don't. It's just part of your record keeping. You you
don't. You don't file with your tone no, No, it's just part
of the backup and as long as you're to explained, as long as you're
putting more go ahead. It reminds me of something though, what this This
reminds me of something. This reminds me of Don Eiley. So, Tom,
you're saying that the government, the I r S matches this stuff up
so quickly. Well, somehow this guy reported zero wages to the I r
S for W two's for over ten years and these people were actually getting tax
refunds based upon fictual numbers that the company was telling. So so how did
they not match up the W twos on the Don Isley case for over ten
years when it all came dound. He was an accountant. He was an
accountant that would he was an accountant that would take the result withholdings from his
clients but not send them to the irs, claiming to the end he would
report that. But here's what I'm saying. He would report zero employees for
ABC business, so he would do zeros. He would keep the money,
but come the end of the year, he would create W twos for all
the employees whose money he stole and the company and they would actually get tax
refunds based upon the fictual numbers, meaning the IRS never matched up the W
twos to the individual Social Security number for over two ten Scott Scott hold On.
Scott has a question, Scott, what is your question? Yeah,
a quick question. If I'm going to start living on social Security and money
market interest, am I going to need to send in estimated tax payments?
Hell? No, right, isn't. Isn't what happens? Are taxes taken
out of Social Security or not? You get to decide whether you wouldn't take
them out or not. But if you only have some other interest income and
Social Security, you're probably not going to own any taxes. I think if
your income is under like twenty thousand dollars social Security, you know it's going
to be tax free. It's just based on your other income. Right that
you don't have to worry about it. I don't three seven min Well,
you can have taxes taken out, but if you don't have taxes do at
the end you get it back, right, But you can also do what
I do, which is not pay taxes on it and keep the money and
let the government get it at the end of the year. No, that's
what he just asked about when he'd be penalized. No, he wouldn't unless
there was an astronomical amount of income he had other than that. And then
it's like Eric said, on all your income in one big bucket. If
you don't pay enough tax, you get penalized. If you do pay enough,
you're fine. If tax is not due, you're fine. More coming
right up, Go with a sure thing Denver's best roofer Excel Roofing dot com.
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three nine two zero sixteen twenty two by Tom Martino, Your Troubleshooter three O
three seven one three talks seven one three eight two five five Uh. I
have a quick text on charitable contributions, so they're really I mean, unless
you contribute a lot, you don't get a deduction what is it a certain
percentage of your income? How does that work? Well, it depends on
if you itemize or not. Then if you itemize, then it can go
up to fifty percent of your income. No. No, what I'm asking
is, you don't even get a charitable deduction unless it's a certain unless it's
a certain amount of your adjusted gross. I thought like, if you make
did you get to write off one hundred bucks? I thought you have to
add them all up and they have to exceed a certain percentage of adjusted gross.
But a few years ago, the Iris Star letter do you take three
hundred dollars even if you didn't itemize? So they gave you a little bit
of a GIMMI where you could still take a few hundred dollars regardless of whether
you itemize or not. I think it was during COVID. If you itemize,
do you get to take very small deductions if you itemize? Yeah,
if you have a lot of mortgage interests and other real estate taxes, none
have three hundred dollars at all. No, I'm talking about charity. Charity.
Yeah, charity is part of the itemized deduction, right, I get
that. So if I do item deductions, most people do, right,
Most people do itemize or not? No, Now, majority of people do
not itemize what because they got they got rid of personal exemptions and now everybody
gets a free thirteen thousand dollars standard deduction A married couples twenty six thousand dollars.
So nobody itemizes unless you've got twenty six thousand dollars of mortgage and ten
thousand dollars of state taxes and charity. Most people don't. They take the
standard deductions, so exactly. Okay, So itemizing deductions you're talking about is
personal. The business always itemizes to right, That's okay, got it?
Can a business make charitable contributions? It can, but it flows suit of
your personal return anyway, Like in an escorp. It just flows though,
so it all goes suit of your personal tax return. A sea corp.
Only a sea corp takes CONTs. Salt still around you, you bet it
is. And that's a big deal of that ten thousand dollars limit is a
big issue right now. Okay, Well, we opened up a can of
worms and I don't even know what salt is. But anyway, we don't
have time to get into it right now. But thank you Mark now,
maybe we'll talk about that tomorrow. I'm Tom Martino. Don't forget that was
Atlas, Epas and Financial Advisors. Three zero three Martino, Save all your
problems for me.