WEBVTT 1 00:00:00.600 --> 00:00:13.880 Y'all ripped off news. Need advice so you don't happen. Come running just 2 00:00:13.960 --> 00:00:20.760 as fast as we can. Shooter's gonna help me. Come Man Dix is 3 00:00:20.800 --> 00:00:27.440 the Troubleshooter Show. No Tom Martino, Hi, Tom Martino here, Welcome 4 00:00:27.480 --> 00:00:31.039 to the show, A very important show. Today we're gonna be talking about 5 00:00:31.280 --> 00:00:36.119 taxes. Yeah, what's going on with taxes? Man? You know we 6 00:00:36.159 --> 00:00:39.719 went through a lull there for a while with the IRS because of COVID. 7 00:00:39.759 --> 00:00:43.079 What's happening now with the IRS? What's going on in the future? Are 8 00:00:43.079 --> 00:00:47.560 there any tax things you can do before April fifteenth? What can you do 9 00:00:47.640 --> 00:00:51.880 for planning of this year? Our goal is always to pay fair but as 10 00:00:51.920 --> 00:00:55.880 low tax as possible. Nothing wrong with that as long as we follow the 11 00:00:55.960 --> 00:01:00.920 rules. And Eric Reinemer from Atlas CPAs in a financial with US Atlas Firms 12 00:01:00.960 --> 00:01:03.959 dot Com. It's been my accountant for many many years, both with the 13 00:01:03.959 --> 00:01:08.239 Troubleshooter Network and me personally. So if I end up in jail, he's 14 00:01:08.280 --> 00:01:11.640 going to have to bail me out. That's just an accounting joke. Boom 15 00:01:11.640 --> 00:01:18.959 boom. You know. Uh, the the joke about accounting is, uh, 16 00:01:19.920 --> 00:01:23.640 you have an accountant, and you have an attorney. You asked the 17 00:01:23.680 --> 00:01:30.079 accountant. You asked the attorney how much is two and two? And he 18 00:01:30.239 --> 00:01:36.879 says The accountant says four. All right, you asked your attorney how much 19 00:01:36.959 --> 00:01:38.400 is two and two? Do you know what? He says, Eric Renner? 20 00:01:40.599 --> 00:01:42.400 Do you know? Oh? What do you want it to be? 21 00:01:42.719 --> 00:01:45.879 Exactly? You did? Did you? Did you know that joke? Then 22 00:01:45.920 --> 00:01:48.680 that's an old joke. What do you wanted to be? Okay? Three 23 00:01:48.680 --> 00:01:52.640 O three seven one three eight two five five. Now let's get to a 24 00:01:52.680 --> 00:01:59.599 problem that's pretty serious. Tina called, and I wanted to get on this 25 00:01:59.640 --> 00:02:02.640 somehow. I think I had somebody call. I thought I had somebody call 26 00:02:02.719 --> 00:02:07.639 the pharmacy. I wanted them to allude to a some kind of media. 27 00:02:08.360 --> 00:02:13.719 Maybe investigation would help, I said, maybe of Deputy Dollar calls. I 28 00:02:13.759 --> 00:02:19.759 think I said that with Dollar. But we had a couple calls about this. 29 00:02:21.120 --> 00:02:29.039 Apparently what happened is anthem, right, blue cross, blue shield or 30 00:02:29.080 --> 00:02:32.319 whatever. Tina helped me out. Here was it anthem? You had it? 31 00:02:32.360 --> 00:02:39.439 Is anthem? An anthem switched? Well, they took over a compounding 32 00:02:39.479 --> 00:02:45.919 pharmacy. It was Carolin switched to Bioplus right now. I have this. 33 00:02:46.439 --> 00:02:50.960 So earlier we had a call from a woman, Gemma, and she has 34 00:02:51.159 --> 00:02:58.120 MS and Carolin RX went to Bioplus because Elevant's Health, which is Anthem, 35 00:02:58.639 --> 00:03:05.360 actually took over this pharmacy and therefore wanted everyone to go through there. Oh 36 00:03:05.439 --> 00:03:08.639 I know. I asked deputy doctor call there and to just make some you 37 00:03:08.680 --> 00:03:13.680 know, some just say hey, we're looking into this and maybe that would 38 00:03:13.759 --> 00:03:20.080 help. And the situation is dire. People can't get their drugs. I 39 00:03:20.120 --> 00:03:25.000 mean they switched to a new pharmacy and the new pharmacy can't fulfill the orders. 40 00:03:25.639 --> 00:03:30.520 Have you learned anything since you've been on the show. Well, I 41 00:03:30.599 --> 00:03:35.280 called today because finally, yesterday somebody put me in touch with a higher up. 42 00:03:35.479 --> 00:03:38.000 So I have an email and a phone number, and I'm hoping that 43 00:03:38.080 --> 00:03:42.960 Jemma called or you guys have her contact information and can pass it on because 44 00:03:42.960 --> 00:03:46.159 she walks through everything and said, okay, shipman is set for today, 45 00:03:46.639 --> 00:03:51.560 so fingers crossed, my son's medicine should be here today. Okay, did 46 00:03:51.560 --> 00:03:54.719 they know what the problem was? You know, i'd even I was so 47 00:03:54.800 --> 00:04:00.080 happy to get someone higher up and I just praised her and I didn't want 48 00:04:00.080 --> 00:04:04.360 to get into all of that, because I definitely wanted the medication. There's 49 00:04:04.400 --> 00:04:08.280 time for that. Act. You keep us informed. I will, and 50 00:04:08.759 --> 00:04:13.599 I want to know when it happens. That's what I want to know, 51 00:04:13.680 --> 00:04:15.800 when it actually when you actually get it, and I just really want I 52 00:04:15.800 --> 00:04:19.199 don't know if you guys have Gema's contact information, because her situation is a 53 00:04:19.240 --> 00:04:23.600 little more dire than my son's is, so I'd love to get her that 54 00:04:23.680 --> 00:04:27.639 information and maybe she can help her out as well. Deputy Doc, didn't 55 00:04:27.680 --> 00:04:32.720 you get I think Deputy Doc got Gema's information or Kaschina maybe you got it 56 00:04:32.800 --> 00:04:39.800 to give to Deputy doct it. What's that Doc? I never got a 57 00:04:39.879 --> 00:04:44.079 message to follow up on this. It was I'm sorry when I'm not here. 58 00:04:45.360 --> 00:04:46.879 Yeah, we we wanted you to call down there. But listen, 59 00:04:46.879 --> 00:04:51.279 here's the deal. Let's hold off right now anyway, but then we'll get 60 00:04:51.319 --> 00:04:56.160 Gema's information. We'll call Jim and let her know in fact. Yes, 61 00:04:56.279 --> 00:04:59.680 well let's try to get Jemma on. Thank you, Tina. I want 62 00:04:59.680 --> 00:05:02.319 to ask is she We'll call back Jenna and get a follow up to see 63 00:05:02.319 --> 00:05:08.160 if she's hurt anything. Three O three seven one three tok seven, one, 64 00:05:08.199 --> 00:05:10.920 three eight, two five five. This hour brought to by waterpros dot 65 00:05:11.000 --> 00:05:15.000 net. I love deals and I love good water. By the way, 66 00:05:15.279 --> 00:05:18.240 as I've said before, we eat organic food, we have supplements, but 67 00:05:18.600 --> 00:05:23.480 we seldom think about the water. We ingest and bottled water, forget it. 68 00:05:23.720 --> 00:05:28.720 If it's plastic, forget it. Water Pros at your kitchen sink under 69 00:05:28.720 --> 00:05:30.480 one thousand dollars fully installed. That's it, man. You don't have to 70 00:05:30.480 --> 00:05:34.360 worry about plastics or anything. It's three oh three eight six, two five, 71 00:05:34.480 --> 00:05:40.399 five five four. Let's talk to Eric Reinemer again at the CPAs and 72 00:05:40.439 --> 00:05:45.279 Advisors. We have a number of situations when it comes to taxes, first 73 00:05:45.319 --> 00:05:50.000 and foremost accounting for taxes. Many self employed people don't account for taxes, 74 00:05:50.560 --> 00:05:55.600 and that's one of the things that they have to do. If you do 75 00:05:55.680 --> 00:05:59.560 not pay quarterly. What happens at the end of the year when you have 76 00:05:59.600 --> 00:06:03.680 a tax bill. If you're self employed, you basically pay interests and penalties 77 00:06:03.680 --> 00:06:10.040 and whatever you're short. And with raising interest rates, what's really eye opening 78 00:06:10.120 --> 00:06:13.959 is the IRIS rate. Now it's like seven or eight percent, as the 79 00:06:14.000 --> 00:06:16.519 federal rate has gone up. What the IRIS charges you for being late has 80 00:06:16.519 --> 00:06:20.879 gone up, so you don't pay in you're basically ten or fifteen percent a 81 00:06:20.920 --> 00:06:25.639 loan with the IRS at that rate, so you end up paying a lot 82 00:06:25.720 --> 00:06:30.120 more than your normal tax a bunch yep. So if you're self employed, 83 00:06:30.959 --> 00:06:35.480 do you guess, I mean, how do you do? You pay in 84 00:06:35.519 --> 00:06:39.879 the rears quarterly? So you look at what you made the first quarter and 85 00:06:39.959 --> 00:06:43.439 send in an estimated payment, and you do that each quarter. Yep, 86 00:06:43.480 --> 00:06:46.639 each quarter, just as if you're an employee, you just just if you're 87 00:06:46.680 --> 00:06:49.560 filing taxes. Yeah, just like having money withheld when you're an employee, 88 00:06:49.680 --> 00:06:54.079 you got to do it for yourself when you're self employed. Okay, So 89 00:06:54.240 --> 00:06:58.680 you send in a payment. If you end up at the end of the 90 00:06:58.759 --> 00:07:00.040 year sending in too much, you get back. If you don't send in 91 00:07:00.160 --> 00:07:05.480 enough, at least you will not be fined. Right, that's the short 92 00:07:05.519 --> 00:07:10.240 of it. That's the basics. Unless you really underpay, if you don't 93 00:07:10.240 --> 00:07:14.439 pay at least what ninety percent of your obligation, you're fined, Yeah, 94 00:07:14.600 --> 00:07:16.240 or is it ninety percent of the previous Well, the safe thing is if 95 00:07:16.240 --> 00:07:19.279 you pay it one hundred percent of it you o the year before, you're 96 00:07:19.319 --> 00:07:24.319 never dinged, even if you don't pay the balance until April. So first 97 00:07:24.360 --> 00:07:28.319 you got to get onto a regular annual plan, right, and then kind 98 00:07:28.360 --> 00:07:30.439 of gauze it year by year and be disciplined. You know, I don't 99 00:07:30.439 --> 00:07:35.959 hear from anymore the nuts that used to say income taxes unconstitutional and they were 100 00:07:36.040 --> 00:07:40.160 tax protesters. I don't hear from them anymore. Are they all in jail? 101 00:07:40.519 --> 00:07:44.519 Well they're not. Actually I have a client, maybe he's a former 102 00:07:44.560 --> 00:07:46.680 client, sovereign he said. He told me, he said, Eric, 103 00:07:46.680 --> 00:07:50.240 I've a new a lot of research and I'm based on some ruled in seventeen 104 00:07:50.360 --> 00:07:54.920 seventy six. I'm removing myself from the system, so you don't got to 105 00:07:54.920 --> 00:07:58.480 worry about my tax return for this year. Did he really say that? 106 00:07:58.480 --> 00:08:01.680 What did you say to him? I said, well, just he said, 107 00:08:01.839 --> 00:08:03.519 you're either going to be hearing a lot from me because I need help, 108 00:08:03.519 --> 00:08:07.160 and you're not going to hear from me at all. And we haven't 109 00:08:07.199 --> 00:08:09.160 talked in about six months, so I have no idea where it's going to 110 00:08:09.240 --> 00:08:11.720 go. It would be nice to do that, if you could, it 111 00:08:11.759 --> 00:08:16.519 would be great. It's rules were real, right, But there are so 112 00:08:16.600 --> 00:08:20.160 many people that believe that. In fact, I have people that listen to 113 00:08:20.160 --> 00:08:26.040 this show that truly believe that income tax is unconstitutional. If you look at 114 00:08:26.040 --> 00:08:30.959 the code, it does get confusing. Originally, income tax was supposed to 115 00:08:30.959 --> 00:08:35.840 be on profits and not necessarily normal wages. And you could make the argument 116 00:08:35.879 --> 00:08:39.840 there is no profit in a normal wage. You're working, right, I 117 00:08:39.840 --> 00:08:46.080 mean, but it's been argued people have gone to prison. There have been 118 00:08:46.240 --> 00:08:50.559 so many people that don't pay tax that have gone to prison. And here's 119 00:08:50.559 --> 00:08:54.720 the deal. If you want to discuss taxes, that's fine, and we're 120 00:08:54.720 --> 00:08:56.559 not going to get into whether it's legal or not. I mean, I 121 00:08:56.559 --> 00:09:01.399 think it's been argued and argued and arguing. But the bottom line is you 122 00:09:01.480 --> 00:09:09.480 pay your tax quarterly. If you're self employed, what if your employer withholds 123 00:09:09.000 --> 00:09:13.720 and you have work on the side and you end up owing a lot, 124 00:09:13.799 --> 00:09:18.240 can you get penalized for work on the side, like extra work or not? 125 00:09:18.639 --> 00:09:20.759 No, that's fine. A lot of people have multiple income streams, 126 00:09:22.039 --> 00:09:26.559 but if they don't withdraw or make payments tax payments on the extra money, 127 00:09:26.600 --> 00:09:31.279 I'm asking can that result in a penalty If you're making a wage and your 128 00:09:31.320 --> 00:09:37.960 employer's taking out of your W two your normal taxes can Is there a world 129 00:09:37.039 --> 00:09:41.840 in which you can make enough money that would put you into a penalty. 130 00:09:41.919 --> 00:09:46.000 It all depends on when you put together your wages and your other earnings and 131 00:09:46.159 --> 00:09:50.519 if you're short or not. Collectively it's just one big bundle of income that 132 00:09:50.639 --> 00:09:54.159 gets looked at. So if you truly make a ton of money on your 133 00:09:54.159 --> 00:09:58.919 own on the outside of your W two, you could end up having under 134 00:10:00.120 --> 00:10:03.480 paid to such a point where you could be penalized. Absolutely, okay, 135 00:10:03.679 --> 00:10:07.320 So it's one bundle. It's not Hey, I got money being taken out 136 00:10:07.320 --> 00:10:09.879 of this job. I don't have to take it out of any others. 137 00:10:11.039 --> 00:10:16.879 It depends on the amount and what is the highest tax bracket right now? 138 00:10:16.919 --> 00:10:20.960 Do you know thirty seven percent plus? Stay right plus state plus. Now 139 00:10:22.000 --> 00:10:24.440 there's this net income tax of another one point. You can get up over 140 00:10:24.480 --> 00:10:28.600 forty percent pretty quickly. You can in Colorado you can get up to forty 141 00:10:28.639 --> 00:10:35.240 two percent. Okay. Three other three oh three seven one three eight two 142 00:10:35.360 --> 00:10:37.480 five five. We have a lot to talk about. If you have any 143 00:10:37.559 --> 00:10:43.879 questions on doing taxes, last minute preparation questions you might have on deductions, 144 00:10:43.320 --> 00:10:48.039 give us a call. Three L. Three seven one three talk three oh 145 00:10:48.080 --> 00:10:52.440 three seven one three eight two five five. Frank Durand the real Estate Man 146 00:10:52.600 --> 00:10:56.200 can help you prepare to sell your house, or you may decide not to. 147 00:10:56.360 --> 00:11:00.240 With his market evaluation. He'll tell you what your house is worth based 148 00:11:00.240 --> 00:11:05.279 on today's market, with interest rates, supply and demand and all other factors. 149 00:11:05.360 --> 00:11:07.759 It's free of charge and you can trust Frank to do this with no 150 00:11:07.879 --> 00:11:16.279 obligation. Three oh three nine two zero sixteen twenty two. Go with a 151 00:11:16.320 --> 00:11:20.679 sure thing Denver's Best roofer Excel Roofing dot com. You don't pay a cent 152 00:11:20.879 --> 00:11:28.399 until you're content. Wait time for an insurance checkup free no obligation. Comparison 153 00:11:28.519 --> 00:11:33.639 call Compass Insurance paying too much your coverage at dozens of insurance companies find out 154 00:11:33.639 --> 00:11:37.759 now three oh three seven to seven to one help. You'll think you're his 155 00:11:37.879 --> 00:11:41.879 only customer when you choose Frank durand the real Estate Man dot com to list 156 00:11:41.919 --> 00:11:52.120 your home with Remax Alliance three oh three nine two zero sixteen twenty two. 157 00:11:52.919 --> 00:11:58.200 Hi, Tom Martino three oh three seven one three talk three oh three seven 158 00:11:58.279 --> 00:12:05.679 one three eight two five five. We have Eric Reinemer with us from Atlas 159 00:12:05.759 --> 00:12:09.919 CPAs and financial advisors. Bill has a question or a comment or something about 160 00:12:09.919 --> 00:12:13.480 a four oh one K. Hey, Bill, what's going on? Hi? 161 00:12:13.759 --> 00:12:18.559 It's actually about an Ira, a roth Ira, and I had some 162 00:12:18.679 --> 00:12:24.440 unexpected income that came in at the end of the year with an incentive stock 163 00:12:24.559 --> 00:12:30.039 purchase. So I know I'm over the income limits for the IRA Roth. 164 00:12:30.600 --> 00:12:33.600 I know I have to pull out the deposit. I know I have to 165 00:12:33.639 --> 00:12:41.039 pull out a certain percentage of what it made. My question is can you 166 00:12:41.159 --> 00:12:43.360 just wait for the I R S to tell you to pull that out and 167 00:12:43.440 --> 00:12:48.519 how much? Or do they direct you how much? Now I'm not understanding 168 00:12:48.559 --> 00:12:52.480 though you you you have a wroth four oh one K right, I'm sorry, 169 00:12:52.559 --> 00:12:56.480 a roth Ira? Okay, Well that's fine, it's a roth Ira. 170 00:12:58.279 --> 00:13:03.679 And then you mentioned something about incentive stock Your your your incentive stock option, 171 00:13:03.240 --> 00:13:11.399 but your your incentive stock option. Did you exercise the option? I 172 00:13:11.480 --> 00:13:13.840 did, so it just counts as regular income. Well, well, no 173 00:13:15.039 --> 00:13:22.840 exercising it, okay. Non qualified stock options count as income when you exercise 174 00:13:22.960 --> 00:13:28.200 it, but not incentive stock options. Incentive stock options only count when you 175 00:13:28.279 --> 00:13:33.840 sell them. So did you buy and immediately sell them? Yes, sir, 176 00:13:33.360 --> 00:13:39.399 Okay, that's why and you didn't hold them for a year. I 177 00:13:39.440 --> 00:13:41.039 did not, so there's no long term but got it? So now, 178 00:13:41.159 --> 00:13:45.840 no, I get exactly what you're saying. So with an incentive stock option, 179 00:13:46.279 --> 00:13:50.000 you do have ordinary income if you strike and then sell, and that's 180 00:13:50.039 --> 00:13:56.480 what you did. How much income is that? It was around forty five 181 00:13:56.519 --> 00:14:03.960 thousand dollars and then so that so the taxes were withheld the state, federal, 182 00:14:03.919 --> 00:14:07.840 social Security. All that was withheld properly, or maybe even a little 183 00:14:07.879 --> 00:14:13.279 more than should be. But now when I come to look at what I 184 00:14:13.320 --> 00:14:18.480 should have been able to deposit into my wroth ira, I'm above the limit 185 00:14:20.919 --> 00:14:24.960 that for twenty twenty three because your income was higher. Yes, sir, 186 00:14:26.399 --> 00:14:30.879 I think because let me get this straight, Eric, with a wroth ira, 187 00:14:31.120 --> 00:14:33.159 which by the way, is after tax money that grows tax free. 188 00:14:33.559 --> 00:14:41.679 With a roth ira, as you make more money, you can contribute less. 189 00:14:41.200 --> 00:14:45.320 Yeah, you max out for married couple around two hundred thousand. You 190 00:14:45.360 --> 00:14:48.799 can't do it if you're over a certain income level. Now, but what 191 00:14:48.840 --> 00:14:52.679 you're saying is, or a little bit of it. What you're saying is 192 00:14:52.840 --> 00:15:00.399 you contributed too much to your wroth When you take into consideration the income from 193 00:15:00.480 --> 00:15:05.159 your stock option? Is that right? That's correct? Okay? And how 194 00:15:05.240 --> 00:15:09.799 much more did you contribute than you were supposed to? Well, by my 195 00:15:09.960 --> 00:15:13.799 calculation, I shouldn't have contributed to anything. So for this sue, why 196 00:15:13.919 --> 00:15:16.960 is that? How much was your how much was your total income after that 197 00:15:16.039 --> 00:15:22.240 stock option? Two hundred thousand? And I believe the limit is one hundred 198 00:15:22.279 --> 00:15:28.799 and sixty some for twenty twenty three for an individual for an individual, So 199 00:15:28.919 --> 00:15:31.679 I, in my own right, you're in other words, you're not eligible 200 00:15:31.720 --> 00:15:37.639 for a wroth and mark the back door, which we can explore that that's 201 00:15:37.840 --> 00:15:43.600 very complicated, But back doors don't all complicated. Back Doors do not open 202 00:15:43.120 --> 00:15:46.399 when you make too much money. No matter what you make, you can't 203 00:15:46.440 --> 00:15:50.279 no matter what backdoor, you can't use a back door, right, can 204 00:15:50.320 --> 00:15:54.639 you? Like if you make too much money, is an income always the 205 00:15:54.759 --> 00:15:58.480 ruling factor? Yeah, but you can do a back door, like you 206 00:15:58.480 --> 00:16:00.639 can make a million bucks and then have your broker. It's like a two 207 00:16:00.639 --> 00:16:03.080 step prop. Okay, how is that? Let's talk about that. How 208 00:16:03.120 --> 00:16:07.759 do you do it? You have to first have a wroth or not. 209 00:16:07.240 --> 00:16:11.399 You have to have a wroth account. But you for your first step is 210 00:16:11.440 --> 00:16:17.639 a non deductible IRA and then your broker shifts it into it's a way to 211 00:16:17.639 --> 00:16:19.320 get it into a ROTH. But it's a two step process. But but 212 00:16:19.320 --> 00:16:25.120 but here's what I don't understand. Everywhere I've read it's still a subject to 213 00:16:25.159 --> 00:16:27.039 income limits. But you're saying it's not. No, if you have no 214 00:16:27.120 --> 00:16:33.200 other do you have another retirement plan? Sir on the phone, I have 215 00:16:33.279 --> 00:16:40.519 a work for one K, both traditional and IRA, so let's talk about 216 00:16:40.519 --> 00:16:41.879 that. Yeah, so you should be able to still do this in a 217 00:16:41.919 --> 00:16:45.480 back door. You won't get a deduction, but you should be able to 218 00:16:45.519 --> 00:16:49.879 talk to your broker and just have them converted into a non deductible i R. 219 00:16:51.080 --> 00:16:52.279 What do you mean, an That's what a wroth is, a non 220 00:16:52.320 --> 00:16:56.360 deductible IRA. It's it's you take after tax money, you put it into 221 00:16:56.399 --> 00:17:02.559 a wroth. Right, but people are still make non deductible contributions to an 222 00:17:02.559 --> 00:17:10.039 IRA. Right, but it's subject to income. Uh? No, is 223 00:17:10.079 --> 00:17:15.880 this okay? So I can make if you have an RA. Let's let's 224 00:17:15.880 --> 00:17:19.640 make it simple. If you have an IRA and a wroth both in Schwab 225 00:17:19.759 --> 00:17:22.680 or both wear it. I have an IRA in Schwab, so what can 226 00:17:22.720 --> 00:17:27.599 I so you can put eighty five hundred bucks or whatever you're allowed to contribute 227 00:17:27.599 --> 00:17:32.039 to your IRA. It's probably around eight nine grand whatever it is. Not 228 00:17:32.160 --> 00:17:34.759 if you can take it, then you call up or log into schwab and 229 00:17:34.799 --> 00:17:40.319 then you transfer it over to your WROTH. That's it. Okay. But 230 00:17:40.480 --> 00:17:44.880 the eighty five hundred you say I'm allowed to put into an IRA, I'm 231 00:17:44.920 --> 00:17:49.839 not allowed to contribute eighty five hundred to an IRA. Okay, I'm mark. 232 00:17:49.920 --> 00:17:53.480 I wish I was allowed to. But why do you think you can? 233 00:17:53.880 --> 00:17:59.079 How much can he contribute to an IRA? Well? Because of his 234 00:17:59.240 --> 00:18:03.079 income? Uh? Because he's already doing a four oh one K. I 235 00:18:03.160 --> 00:18:07.319 can't he's maxed out because he's over that to that one? Then could he 236 00:18:07.440 --> 00:18:14.680 not transfer it from his four oh one k then to a ROTH? What 237 00:18:14.720 --> 00:18:18.240 would be the benefit? Yeah, I'm not sure. He's already maxing out 238 00:18:18.279 --> 00:18:22.359 his deductible four A one K. What this guy's needs, what this guy 239 00:18:22.440 --> 00:18:27.839 is trying to do? Is he contributed to a roth he should not have? 240 00:18:29.400 --> 00:18:33.480 Is there anything else he can do with that money? Let's get right 241 00:18:33.559 --> 00:18:37.079 to that well and do I wait for the I R S to tell me 242 00:18:37.279 --> 00:18:42.119 how much to pull out of the roth IRA. Well, it's the whole 243 00:18:42.119 --> 00:18:45.920 contribution for that year, so you're going to wait, he would have sent 244 00:18:47.000 --> 00:18:49.519 it, but it made during the year. Do I want to do it 245 00:18:49.559 --> 00:18:55.200 before April fifteen? You you already said do it before April fifteen. Yeah, 246 00:18:55.440 --> 00:18:59.599 call your brokerage company and just tell him the situation and they'll move it 247 00:18:59.640 --> 00:19:03.680 out of the IRA bucket. Yeah, I understand, I got to move 248 00:19:03.720 --> 00:19:10.039 the deposit, but they will help me figure out again how much the deposit 249 00:19:10.319 --> 00:19:14.359 made in twenty twenty three. And yes, until I pull it out, 250 00:19:14.440 --> 00:19:18.319 they will do all that. That's their job, and they will send a 251 00:19:18.319 --> 00:19:22.759 note to the IRS with my taxes, here's what happened, and then the 252 00:19:22.079 --> 00:19:29.920 IRS will pursue me and you won't hear from me. Tom, you won't 253 00:19:29.920 --> 00:19:33.599 be in jail. Listen, here's the deal. Okay. I just want 254 00:19:33.640 --> 00:19:37.480 to make something clear again. If you have a four to oh one K, 255 00:19:38.559 --> 00:19:44.799 you can't do a wroth in addition to that, or you can if 256 00:19:44.839 --> 00:19:51.039 you're over the can, but yeah, not income pies. Just go ahead, 257 00:19:51.119 --> 00:19:53.920 Eric, What if you're already doing a fully funded four oh one K, 258 00:19:55.319 --> 00:19:59.839 then you can do a wroth and IRA on top of that. If 259 00:19:59.839 --> 00:20:03.079 you're over the income limit, okay, but you could, instead of putting 260 00:20:03.119 --> 00:20:06.680 it all in your four oh one K, for example, put some of 261 00:20:06.720 --> 00:20:10.359 it in an IRA. So you're still under that limit, then you could 262 00:20:10.400 --> 00:20:14.079 backdoor into your wroth account up to a certain amount of money. Zach, 263 00:20:14.160 --> 00:20:17.240 Right, that is true. That's a more complex situation. You could do 264 00:20:17.359 --> 00:20:21.160 that, But I do. I do it every year. Well okay, 265 00:20:21.440 --> 00:20:23.759 Well, like I said, that doesn't necessarily mean it's correct, but I'm 266 00:20:23.759 --> 00:20:30.400 not saying it's incorrect. So explain that you take instead of making a full 267 00:20:30.519 --> 00:20:34.720 contribution to a four to oh one K, you put some of it in 268 00:20:34.799 --> 00:20:41.039 an IRA. If you're asking me, I don't have a four to oh 269 00:20:41.039 --> 00:20:44.720 one K, I have a SEP, I have a wroth, and I 270 00:20:44.799 --> 00:20:48.480 have an IRA, and then we have a few other tools I'm not going 271 00:20:48.519 --> 00:20:51.640 to get into. But what I do is I put the max. I 272 00:20:51.720 --> 00:20:55.599 can't put any money into my wroth because I make too much money. What 273 00:20:55.640 --> 00:20:59.680 I end up doing is I fully fund my step to the maximum amount, 274 00:21:00.119 --> 00:21:03.119 and then I can put up I think it's eighty five hundred somewhere around there 275 00:21:03.359 --> 00:21:08.319 into my standard IR whatever the max I can put into there. Then I 276 00:21:08.359 --> 00:21:12.599 can transfer that over to my ROTH account. It's called a backdoor ROTH. 277 00:21:12.880 --> 00:21:18.000 I understand the transfer part, but first you have to have the ability to 278 00:21:18.240 --> 00:21:22.960 have the money into an IRA to make that transfer. That's the point I'm 279 00:21:22.960 --> 00:21:26.160 trying to make. And with a four to oh one K, it's not 280 00:21:26.319 --> 00:21:30.559 the same as what you're doing with a SEP. Well. Well, the 281 00:21:30.599 --> 00:21:33.720 only difference that I can think of is most four oh one k's are controlled 282 00:21:33.720 --> 00:21:38.240 by the company. I don't even know if you're allowed to like transfer money 283 00:21:38.279 --> 00:21:42.279 out of your you know, target four oh one K into an IRA. 284 00:21:42.759 --> 00:21:47.519 I have no idea what those you can you can if you had, if 285 00:21:47.599 --> 00:21:52.599 you have, if you maximized or funded well, let's say you didn't even 286 00:21:52.640 --> 00:21:56.799 maximize, you funded your four oh one K throughout the year you and your 287 00:21:56.839 --> 00:22:00.519 company match or whatever happens, right, I don't know why you couldn't transfer 288 00:22:00.599 --> 00:22:07.200 that the same way into a WROTH if you had a WROTH. Is that 289 00:22:07.319 --> 00:22:11.559 possible, Eric, I don't know. Here's what you go ahead, Eric, 290 00:22:11.799 --> 00:22:17.480 I'm saying mark in service rollovers you're talking about, Okay, it's different 291 00:22:17.519 --> 00:22:19.599 than a STEP. It's different when you have a four oh one K that's 292 00:22:19.680 --> 00:22:25.119 established the plan has to allow for an in service rollover. Okay, otherwise, 293 00:22:25.279 --> 00:22:27.640 otherwise you're penalized and its income. Once you have a four oh one 294 00:22:27.720 --> 00:22:30.839 K and you do an in service rollover, you can roll it over to 295 00:22:30.960 --> 00:22:34.240 your I R A or into an annuity or whatever you want to do. 296 00:22:34.440 --> 00:22:37.640 That's what Then you could roll it. Then you could roll that amount directly 297 00:22:37.720 --> 00:22:45.599 over into a wroth. Okay, right? Why? Er? Why? 298 00:22:45.839 --> 00:22:49.000 Here's what I don't mark. This is what I don't understand because you don't 299 00:22:49.720 --> 00:22:53.039 do that later, because why would you do that? Because you'd have to 300 00:22:53.039 --> 00:22:56.319 pay tax on that money to get it into a wroth, wouldn't you don't 301 00:22:56.319 --> 00:23:00.599 you have to take a taxable event to get it into a row. In 302 00:23:00.640 --> 00:23:03.079 other words, the whole idea of a wroth is it's after tax money and 303 00:23:03.079 --> 00:23:07.200 that grows tax free. But if you take qualified money that you never paid 304 00:23:07.240 --> 00:23:11.720 tax on and you put it into a wroth, are you suggesting the wroth 305 00:23:11.759 --> 00:23:15.440 IRA will grow tax free and when you pull it out you won't pay tax 306 00:23:15.480 --> 00:23:21.640 either? No? You you you could possibly pay taxes on the portions that 307 00:23:21.799 --> 00:23:26.759 went in there from a different qualified plan like the four oh one K or 308 00:23:26.759 --> 00:23:30.079 the IRA. I'm not sure how that's we need to know what we need 309 00:23:30.119 --> 00:23:33.559 to do. And and to Eric's defense, he does a lot of stuff 310 00:23:33.599 --> 00:23:37.240 with taxes and all of that, but this is more of a financial place. 311 00:23:37.319 --> 00:23:40.200 I bet, I bet he's got I bet Eric, you have clients 312 00:23:40.240 --> 00:23:42.720 that you do a backdoor WROTH each year. Yep, we have a few 313 00:23:42.759 --> 00:23:47.240 clients to do that every year. Yeah, So explain what you're doing. 314 00:23:47.279 --> 00:23:51.680 Market's a little bit more complex because you're using your SEP vehicle, which is 315 00:23:51.759 --> 00:23:55.640 like a different than a four oh one K. They're sort of different, 316 00:23:55.720 --> 00:23:57.319 but they achieved the same thing. But when you got to the business, 317 00:23:57.359 --> 00:24:00.319 you can do an SEP. So I hear what you're doing, Marcus. 318 00:24:00.720 --> 00:24:03.559 Yeah, yeah, it's a little different. But hold on, hold on, 319 00:24:03.599 --> 00:24:07.400 I just want to clarify. Eric's got probably more than a couple people, 320 00:24:07.400 --> 00:24:11.319 and I know Atlas in general does that. Each year they'll contribute to 321 00:24:11.480 --> 00:24:17.480 their IRA and then they'll transfer and backdoor into the roth. Is that correct, 322 00:24:17.640 --> 00:24:21.759 Eric? Correct? Yeah? Okay, anyway, three oh three seven 323 00:24:21.880 --> 00:24:25.799 one three eight two five five. I hope this is not too complicated. 324 00:24:25.839 --> 00:24:33.680 But when you have questions, we'll take them right after this. Go with 325 00:24:33.759 --> 00:24:37.920 a sure thing Denver's best roofer Excel Roofing dot com. You don't pay a 326 00:24:37.000 --> 00:24:45.200 cent until you're content. Time for an insurance check up free no obligation. 327 00:24:45.359 --> 00:24:49.960 Comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find 328 00:24:49.960 --> 00:24:53.160 out now three oh three seven to seven to one help. You'll think you're 329 00:24:53.200 --> 00:24:57.119 his only customer when you choose Frank durand the real estate Man dot com to 330 00:24:57.200 --> 00:25:02.720 list your home with Remax a lot three oh three nine two zero sixteen twenty 331 00:25:02.720 --> 00:25:15.079 two highs. Tom Martino, your troubleshooter. We're going to get a tax 332 00:25:15.079 --> 00:25:21.400 expert on to talk about in service rollovers, doing it correctly avoiding penalties because 333 00:25:21.440 --> 00:25:26.119 you're under fifty nine and a half and you take anything out if you take 334 00:25:26.160 --> 00:25:30.960 it out to put it into a really a wroth is after tax money. 335 00:25:32.160 --> 00:25:36.160 So if you take it out under fifty nine and a half and transfer it 336 00:25:36.200 --> 00:25:45.000 to something else, from qualified to in esse. Maybe maybe I wasn't clear 337 00:25:45.079 --> 00:25:48.119 what I do every year. No, no, I understand that I'm not 338 00:25:48.200 --> 00:25:52.920 talkington. I'll be told a certain amount of money, like eighty five hundred 339 00:25:52.960 --> 00:25:57.319 bucks that I put it into my IRA, that eighty five hundred tax has 340 00:25:57.400 --> 00:26:03.480 already been paid on it. It's not no taxes have been withheld on it. 341 00:26:03.880 --> 00:26:07.720 Okay, it goes into my IRA. Then that amount of money, 342 00:26:07.759 --> 00:26:12.039 and I think it truly is perfect. Now I understand that that's perfect because 343 00:26:12.319 --> 00:26:15.799 you're not messing with qualified money. I get it, you got it. 344 00:26:17.240 --> 00:26:21.319 I get So what happens at the end of the year for me is Mallory 345 00:26:21.400 --> 00:26:25.359 does my taxes or Eric does some of both of our taxes, and then 346 00:26:25.839 --> 00:26:30.880 Mallory is the one that tells me you can put x amount into your STEP, 347 00:26:30.160 --> 00:26:34.160 you can put x amount into whatever else I got going, and then 348 00:26:34.279 --> 00:26:41.480 put eighty five hundred into that IRA that is not taxed, and then transfer 349 00:26:41.559 --> 00:26:45.680 it over to the ROTH. But any money you put into your STEP is 350 00:26:45.720 --> 00:26:48.039 a deduction makes the money it allows, I mean, really a backdoor with 351 00:26:48.079 --> 00:26:52.720 iray. It's a conversion that allows, for lack of the better word, 352 00:26:52.799 --> 00:26:57.640 high earners to open up just an IRA, deposit money that has already been 353 00:26:57.720 --> 00:27:03.279 taxed into that IRA, then convert that contributed money into the ROTH. So 354 00:27:03.400 --> 00:27:08.319 therefore it grows right. And then when you take it out when you retire 355 00:27:08.440 --> 00:27:12.480 or whatever age you're at, and decide to take it or have to mandatory 356 00:27:12.559 --> 00:27:17.039 take it. You don't pay taxes on the growth. So it is a 357 00:27:17.079 --> 00:27:19.920 great vehicle to do no matter what. And by the way, for those 358 00:27:21.039 --> 00:27:26.400 listening, when we're talking about backdoor approaches and squirrelling money in addition to what's 359 00:27:26.440 --> 00:27:30.079 allowed, many people assume, well, why would you have to do that? 360 00:27:30.359 --> 00:27:33.359 Not hardly anyone makes that much. You'd be shocked at how many couples 361 00:27:33.480 --> 00:27:37.839 right now our two hundred thousand dollars. Many, many, many, many 362 00:27:37.880 --> 00:27:44.039 couples. I mean, you know, I'm not saying and I don't mean 363 00:27:44.079 --> 00:27:48.759 to talk down or up to anyone, but there are people that listen to 364 00:27:48.799 --> 00:27:52.400 the show that are easily in that category that or not. First of all, 365 00:27:52.440 --> 00:27:56.960 it's only around one hundred and fifty one hundred and sixty per individual. 366 00:27:56.000 --> 00:28:00.799 And the why I say individual generally, and you're in this circumstance, the 367 00:28:00.920 --> 00:28:04.599 husband and wife are both going to have the IRA in the wroth. So 368 00:28:04.759 --> 00:28:08.799 it is an individual limit for most people, unless if you're single. There's 369 00:28:08.799 --> 00:28:11.440 no reason you would do it as a couple. You'd want to do it 370 00:28:11.480 --> 00:28:17.480 as individuals. Now, Paul, you have a question on solar go ahead, 371 00:28:17.519 --> 00:28:22.440 Paul, Guysy guys, I was just calling to kind of chat with 372 00:28:22.480 --> 00:28:25.279 you a little bit about solar. I've got some people knocking on my door 373 00:28:25.319 --> 00:28:29.160 for solar, and I was curious which ones you guys recommend that. Well, 374 00:28:29.160 --> 00:28:30.480 none of them that knocked at your none. First of all, I'll 375 00:28:30.519 --> 00:28:34.680 tell you don't go with any of them that knocked at your door, right, 376 00:28:36.279 --> 00:28:41.880 okay, because nine of them are salespeople only, and they don't give 377 00:28:41.920 --> 00:28:45.680 a lick about solar. They don't know anything about solar, and once you 378 00:28:45.759 --> 00:28:48.440 buy, once they get you a contract or out of your life. So 379 00:28:48.839 --> 00:28:52.400 if you want solar, go to the experts we know and trust. It's 380 00:28:52.400 --> 00:28:57.240 that simple. And why do I both I'd literally go to pro Bid and 381 00:28:57.319 --> 00:29:02.279 I'd go to Red Rocks. I'd have both talk to house that talk to 382 00:29:02.319 --> 00:29:07.920 both of them. That's right and one. And I'll tell you why I'm 383 00:29:07.960 --> 00:29:11.319 telling you. Unless one of those companies came to your door, they're all 384 00:29:11.359 --> 00:29:18.359 salespeople. They don't know anything after the sale nothing. You are on your 385 00:29:18.400 --> 00:29:26.920 own and they usually sluff you off to some installers that do nationwide installations. 386 00:29:26.960 --> 00:29:33.200 They travel and it's it's a terrible industry, Okay, you can go. 387 00:29:33.279 --> 00:29:38.039 I want you to check out both probid energy dot com. That's probid like 388 00:29:38.079 --> 00:29:41.640 they're bidding on something. Pro Bid Energy. I'm gonna give you the number 389 00:29:42.319 --> 00:29:48.079 three oh three six two three fifteen thirty one. Then I want you to 390 00:29:48.160 --> 00:29:56.319 check out red Rocks r S that stands for roof Andsolar redrocksars dot com three 391 00:29:56.359 --> 00:30:03.160 oh three seven zero four two four four nine. Ask them questions. Did 392 00:30:03.240 --> 00:30:10.400 you hear anything specifically that was concerning to you? My biggest question is kind 393 00:30:10.400 --> 00:30:12.680 of how they structure the deals where they usually have them set up as like 394 00:30:12.759 --> 00:30:17.079 a twenty five year loan where you're paying off. Okay, great, great 395 00:30:17.160 --> 00:30:18.200 question. Hold on, I'll come right back to you. Please, this 396 00:30:18.240 --> 00:30:22.599 is really important and aarin with taxes. Hang on, ray a question on 397 00:30:22.680 --> 00:30:32.160 residency. All of this right after this, go with a sure thing Denver's 398 00:30:32.200 --> 00:30:36.559 Best roofer Excel Roofing dot com. You don't pay a cent until you're content. 399 00:30:38.920 --> 00:30:45.079 Time for an insurance check up free no obligation comparison call Compass Insurance paying 400 00:30:45.079 --> 00:30:48.160 too much your coverage at dozens of insurance companies find out now three oh three 401 00:30:48.319 --> 00:30:52.759 seven to seven to one. Help You'll think you're his only customer when you 402 00:30:52.839 --> 00:30:56.000 choose Frank durand the real estate man dot com to list your home with Remax 403 00:30:56.039 --> 00:31:03.079 Alliance three oh three nine two zero sixteen twenty two. I'm Tom Martinez. 404 00:31:03.079 --> 00:31:06.839 Here's the deal, Paul On Soler. Hang on, We're getting an expert 405 00:31:06.880 --> 00:31:10.079 to talk about the different programs so you don't get screwed. Aaron, you 406 00:31:10.119 --> 00:31:14.799 have a question on taxes. Eric Reinemers here from Atlas CPAs and on the 407 00:31:14.839 --> 00:31:18.640 back door approaches to roths and other sneaky ways to sneak money into retirement plans. 408 00:31:18.680 --> 00:31:22.240 We're going to have an expert on in the next hour. So Aaron, 409 00:31:22.640 --> 00:31:27.359 what is your question on taxes? Hey guys, well where do I 410 00:31:27.359 --> 00:31:33.000 stop? Okay? So I've used Turbo tax probably ten years. In twenty 411 00:31:33.079 --> 00:31:42.079 twenty three, I downloaded the program call twenty two and did an update and 412 00:31:42.119 --> 00:31:51.599 it deleted all my Trier text is in the two What oh did it? 413 00:31:51.599 --> 00:31:56.000 It was probably attempting to do a data upgrade like they do whenever you upgrade 414 00:31:56.000 --> 00:32:00.599 a software sometimes they go back for the data files and update the data library. 415 00:32:01.119 --> 00:32:06.759 That could be how it happened. Did TurboTax have an idea how it 416 00:32:06.839 --> 00:32:13.440 happened. They said it was impossible. That's what I'm thinking, because very 417 00:32:13.559 --> 00:32:19.000 at the very worst, it would update it. Are you sure it did 418 00:32:19.039 --> 00:32:22.319 not just change? Hold on, how do you know they're a race? 419 00:32:22.400 --> 00:32:27.400 Let's put it that way. Okay, So I you know I had looked 420 00:32:27.400 --> 00:32:30.119 at the files previously, so you could see. But when you look at 421 00:32:30.119 --> 00:32:34.079 your previous here's all I need to know, Aaron, And I'm rushing you 422 00:32:34.160 --> 00:32:37.079 because it's the end of the hour. We can continue this, but I 423 00:32:37.119 --> 00:32:40.680 need to ask you. Normally before this upgrade, when you were looking at 424 00:32:40.720 --> 00:32:47.279 your TurboTax files, were they PDFs or excel sheets or were they buried within 425 00:32:47.359 --> 00:32:52.640 the program you had to access? So they were both the PDFs and the 426 00:32:52.759 --> 00:32:59.440 actual TurboTax files themselves. And I, okay, there's no way that those 427 00:32:59.559 --> 00:33:02.640 pds. Wow, if they were elsewhere on your hard drive, there is 428 00:33:02.799 --> 00:33:08.920 no way that an upgrade would delete those. Well, I know that's what 429 00:33:09.000 --> 00:33:12.880 people say, but if you look online. I'm not the first person to 430 00:33:12.920 --> 00:33:17.039 actually experience this. But this PDF. Okay, once you did the taxes 431 00:33:17.079 --> 00:33:23.279 for let's say tax your twenty twenty, a PDF is created and elsewhere outside 432 00:33:23.279 --> 00:33:30.680 of TurboTax TurboTax doesn't even know. Go with a sure thing Denver's Best roofer 433 00:33:30.799 --> 00:33:37.960 Excel Roofing dot com. You don't pay a cent until you're content. Time 434 00:33:37.000 --> 00:33:42.480 for an insurance checkup free, no obligation. In comparison, call Compass Insurance 435 00:33:42.599 --> 00:33:45.680 paying too much your coverage at dozens of insurance companies find out now three O 436 00:33:45.799 --> 00:33:50.480 three seven to seven to one help. You'll think you're his only customer when 437 00:33:50.480 --> 00:33:53.240 you choose Frank durand the real estate Man dot com to list your home with 438 00:33:53.359 --> 00:34:07.279 Remax Alliance three oh three nine two zero sixteen twenty two d News. You 439 00:34:07.519 --> 00:34:13.679 need advice so you don't have come run in just as fast as you can. 440 00:34:14.960 --> 00:34:20.599 Shooter's gonna help me. Come man, this is the Troubleshooter Show. 441 00:34:21.239 --> 00:34:28.000 No Tom Martinez, Hi Tom Martino here, welcome. I am here solving 442 00:34:28.039 --> 00:34:30.199 problems, answering questions. Say you planes Laar along with the team, of 443 00:34:30.239 --> 00:34:36.320 course, and uh, we are taking your calls, and we took some 444 00:34:36.400 --> 00:34:39.280 interesting calls I want to get back to we will have an answer or some 445 00:34:39.400 --> 00:34:45.800 information for the TurboTax thing. I have that waiting, and then I have 446 00:34:45.960 --> 00:34:49.599 Paul because I have our expert on Paul said he's getting knocks on the door 447 00:34:49.639 --> 00:34:52.960 from solar companies, and I told him, don't go with someone because they 448 00:34:52.039 --> 00:34:57.679 knocked at your door. Uh. And I recommended Red Rocks was one of 449 00:34:57.679 --> 00:35:00.239 the companies. I recommend. There's only two red Rocks roof and roofing US 450 00:35:00.320 --> 00:35:04.159 Solar, Redrocksaris dot Com. And I wanted to talk to Brook because he 451 00:35:04.199 --> 00:35:07.280 had some questions about specific programs they were proposing. And I wanted you to 452 00:35:07.320 --> 00:35:10.199 weigh in on them, Brooke, because we trust you so much. You're 453 00:35:10.239 --> 00:35:15.480 so knowledgeable. So, Paul, what were the specific questions about the programs 454 00:35:15.519 --> 00:35:20.679 being presented? So the way that both of the quotes that I've gotten so 455 00:35:20.760 --> 00:35:24.079 far are structured is that they're at twenty five year loan at a whatever interest 456 00:35:24.159 --> 00:35:30.880 rate to basically equate to what I pay now for my monthly electric bill through 457 00:35:31.079 --> 00:35:37.880 But who gets the tax credits? Yeah, well it doesn't hold on Brook 458 00:35:37.920 --> 00:35:42.800 one second, real quick, Who were they proposing get the tax credits? 459 00:35:43.960 --> 00:35:46.159 The way that they structure the loans is that there's a loan amount and then 460 00:35:46.199 --> 00:35:51.239 there's a payment and if because I would be the one to submit to the 461 00:35:51.280 --> 00:35:54.000 tax credit. So once I get the credit, if I apply it to 462 00:35:54.039 --> 00:35:58.840 the loan, then my payments, say, is the same at whatever regular 463 00:35:58.920 --> 00:36:00.920 rate. And then if I did and I just pocketed the tax credit, 464 00:36:01.280 --> 00:36:07.079 then my rate would go up on my loan. So if you lowered the 465 00:36:07.119 --> 00:36:13.039 principle of your loan, your interest rate would go down, and the principle 466 00:36:13.119 --> 00:36:15.239 of your loan would go down too. I mean you'd owe less, not 467 00:36:15.360 --> 00:36:22.079 the interest, not the interest rate, but your principle. Your principle would 468 00:36:22.079 --> 00:36:24.880 be reduced. Obviously, if you apply your tax credit, is that right, 469 00:36:25.639 --> 00:36:30.599 right, you have the option of paying down the loan or keeping the 470 00:36:30.639 --> 00:36:34.199 money. Okay, So Brooke, that's one program. What was the other 471 00:36:34.280 --> 00:36:42.920 program or were they all alone? No, they were both. They were 472 00:36:42.960 --> 00:36:46.320 both very similar. Okay, so Brooke weigh in on that. Yeah, 473 00:36:46.360 --> 00:36:50.920 so that's normal. So anybody that finances a solar deal through one of a 474 00:36:51.079 --> 00:36:57.039 nationwide installer, they usually have an introductory period of either one year or eighteen 475 00:36:57.079 --> 00:37:02.119 months where they assume that the tax credit is going to be put down as 476 00:37:02.159 --> 00:37:08.079 a down payment, and so they keep the monthly rate low, and at 477 00:37:08.079 --> 00:37:12.360 the end of the introductory period, if they don't receive that as a big 478 00:37:12.400 --> 00:37:15.599 down payment, then it just bumps up. So that's that's totally normal, 479 00:37:15.639 --> 00:37:19.239 one hundred percent. How most solar loans are structured. Hey and Brooke, 480 00:37:19.320 --> 00:37:22.599 while you're talking about that and tax credits. A few years ago, we 481 00:37:22.639 --> 00:37:25.119 would have calls all the time. You know, they didn't make enough money 482 00:37:25.159 --> 00:37:29.760 to actually get the tax credit, so it was no good for them. 483 00:37:30.000 --> 00:37:32.840 But nowadays you can get the tax credit, and even if you can't use 484 00:37:32.880 --> 00:37:37.760 it yourself, you can sell it on an open market, right, yep, 485 00:37:37.760 --> 00:37:39.760 one hundred percent. Yeah, so usually you're going to get about seventy 486 00:37:39.840 --> 00:37:43.880 cents on the dollar. So if the tax credit you would have received is 487 00:37:43.920 --> 00:37:46.360 ten thousand, expect to get about seven, right, Because the people buying 488 00:37:46.360 --> 00:37:50.519 it have to have, you know, some motivation for why they're buying it. 489 00:37:50.639 --> 00:37:52.239 So where would you definitely sell it? Yeah, I want to buy 490 00:37:52.280 --> 00:37:57.360 tax credits. Yeah, So if it's seventy cents, where's the market on 491 00:37:57.440 --> 00:38:00.159 it right now? Because I'm sure the markets on both sides. Someone sells 492 00:38:00.199 --> 00:38:05.039 it for seventy cents and sells it to me for what eighty cents? If 493 00:38:05.079 --> 00:38:08.119 I wanted to buy I don't know, fifty thousand dollars in tax credits or 494 00:38:08.159 --> 00:38:13.960 whatever, where do I go to buy them? Yeah, you can either 495 00:38:14.000 --> 00:38:16.559 broke or the deal. Like we sell tax credits for our clients ourselves, 496 00:38:16.639 --> 00:38:21.320 Sophia, tax credits to sell, I would send you over a contract review 497 00:38:22.199 --> 00:38:25.639 the tax credits eligible to be sold after final inspection has been approved by the 498 00:38:25.719 --> 00:38:30.719 jurisdiction. So, Eric, have you heard of people? Hold on? 499 00:38:30.840 --> 00:38:34.159 Hold on? So Eric, when I'm doing my taxes, have you heard 500 00:38:34.159 --> 00:38:38.480 of people coming to you with ready made tax credits that they bought? I 501 00:38:38.519 --> 00:38:44.360 mean, he's never heard of it before ever, But I'm sure what do 502 00:38:44.440 --> 00:38:46.480 I do? Would I just say I have these tax credits or would there 503 00:38:46.519 --> 00:38:51.039 be some proof of it somewhere? Eric? Yeah, there has to be 504 00:38:51.119 --> 00:38:53.760 proof of it and a paper trail. It's the same as when you used 505 00:38:53.800 --> 00:38:59.679 to be able to sell it was a conservation easement credits. So that's a 506 00:38:59.760 --> 00:39:04.039 very similar program. Okay, So okay, got it? Now what are 507 00:39:04.039 --> 00:39:07.320 you far? As? Back to Paul though, So, Paul, a 508 00:39:07.400 --> 00:39:13.840 twenty five year loan is not unusual, and an introductory a payment is not 509 00:39:13.960 --> 00:39:19.079 unusual. Anticipating that you're going to pay down the principle with your credit and 510 00:39:19.159 --> 00:39:22.519 if you don't, it bumps up again. That she said, that's all 511 00:39:22.559 --> 00:39:31.559 normal. So really, Brook, do most of your people finance these things? 512 00:39:32.360 --> 00:39:37.000 Honestly, most of the folks that I work with get a heelock or 513 00:39:37.079 --> 00:39:39.800 work with their own bank that they've worked with, because if you get a 514 00:39:39.840 --> 00:39:45.760 heelock, then any interest that you are using towards the solar project is considered 515 00:39:45.760 --> 00:39:52.400 tax deductible, so you're not actually really paying any interest, or they're getting 516 00:39:52.519 --> 00:39:55.800 a better rate from their company. So I have somebody who is barring the 517 00:39:55.840 --> 00:40:00.719 money against the CD, so she's borring the money at like one per interest 518 00:40:00.840 --> 00:40:05.159 because she's profiting off of the CD. So it just depends on what options 519 00:40:05.199 --> 00:40:08.480 do you have. But most of my folks actually choose not to finance through 520 00:40:08.559 --> 00:40:14.920 one of the nationwide lenders. Now, the nationwide solar lenders, what rates 521 00:40:14.920 --> 00:40:22.400 do they run? Market? No, So you're looking at probably between four 522 00:40:22.480 --> 00:40:28.239 and a half and then eleven eleven and a half per cent interest depending the 523 00:40:28.519 --> 00:40:32.159 four and a half interest rates usually have a higher financing fee. Eleven and 524 00:40:32.159 --> 00:40:37.280 a half usually don't have any and then it just you know, depends, 525 00:40:37.280 --> 00:40:40.199 but it's very easy to qualify for those products. Usually you just have to 526 00:40:40.239 --> 00:40:45.760 have a credit score of over six twenty five and an acceptable DEBTA income ratio 527 00:40:46.440 --> 00:40:52.360 secure the property. Second application process. Do they secure the property with that 528 00:40:52.440 --> 00:40:58.239 loan? Yeah, there's usually a lean placed against the property when you finance 529 00:40:58.320 --> 00:41:01.199 it that way, so it is a lock it away. So, Paul, 530 00:41:04.360 --> 00:41:08.800 how much were they quoting on a system for your house? That's where 531 00:41:08.800 --> 00:41:15.360 it gets super weird and complicated. One of them was like sixteen thousand for 532 00:41:15.440 --> 00:41:20.800 an eight panel system, and then one of them was if I financed it, 533 00:41:20.800 --> 00:41:24.840 it was like twenty six thousand for an eleven panel system, but if 534 00:41:24.960 --> 00:41:30.320 it paid cash, it was down to like after tax credits and everything else, 535 00:41:30.519 --> 00:41:35.920 it was like ten. Yeah. So the second option probably has a 536 00:41:35.920 --> 00:41:38.559 lot of financing fees, like thirty percent in your financing fees. So that's 537 00:41:38.559 --> 00:41:43.360 why there's a big difference between doing financed or cash for that second option. 538 00:41:43.719 --> 00:41:46.079 Yeah. God, that's a lot of money to pay for financing on that. 539 00:41:46.280 --> 00:41:50.719 So well, that's same imagine if you paid interest on a car for 540 00:41:50.760 --> 00:41:57.239 twenty five years. Yeah. So, Paul, I suggest you talked to 541 00:41:57.280 --> 00:42:00.599 Brooke off the air try to get get a handle on what you should do. 542 00:42:00.840 --> 00:42:05.199 I've got emails in with Brooks and with pro good now, I think, 543 00:42:05.199 --> 00:42:07.599 bro now, but with a confirmation of a appointment. Now here's what 544 00:42:07.639 --> 00:42:10.559 I want to make. I want to mention no matter who you're dealing with, 545 00:42:10.719 --> 00:42:15.119 even good, honest people, and Brooke will affirm this. If your 546 00:42:15.159 --> 00:42:20.800 monthly payment is not going to save you money from electric, don't do it. 547 00:42:21.119 --> 00:42:23.800 I mean, why would anyone do it? Brooke? Do you agree? 548 00:42:25.639 --> 00:42:29.360 Yeah? I think it depends on why folks want to go solar. 549 00:42:29.519 --> 00:42:34.199 Some people like the renewable aspect, but in general, whatever you're looking for 550 00:42:34.280 --> 00:42:37.800 out of solar needs to happen. So if you want solar to save money 551 00:42:37.880 --> 00:42:42.199 and you're not going to save money, don't do it. Yeah, But 552 00:42:42.320 --> 00:42:45.079 if you're doing it for the environment, I guess it doesn't matter. Most 553 00:42:45.159 --> 00:42:51.159 people, don't, Brook. Aren't most people doing it to save money? 554 00:42:52.199 --> 00:42:55.199 No? I would say most of the folks that I work with have some 555 00:42:55.320 --> 00:43:00.920 sort of other alternative, whether they're worried that they it is going to crash 556 00:43:00.920 --> 00:43:02.239 and they're not going to have power, so they're looking up for like a 557 00:43:02.280 --> 00:43:07.239 backup supply, or they're looking to you know, be more renewable or whatever. 558 00:43:07.440 --> 00:43:10.920 Most folks, the money part actually isn't their biggest reason. For looking 559 00:43:10.960 --> 00:43:19.199 into solar What I am shocked. I really am shocked. So it's it's 560 00:43:19.360 --> 00:43:23.719 fear. Some of it is fear or pre you know, and others just 561 00:43:23.920 --> 00:43:30.159 they want to improve the environment and wide Brook. Are they the same people 562 00:43:30.159 --> 00:43:32.440 when you go over there, they got those big buckets of food that lasts 563 00:43:32.480 --> 00:43:38.480 for thirty years. Oh, you're talking about preppers? They are? How 564 00:43:38.639 --> 00:43:43.679 what percentage of the people are preppers? Is there like barbed wire around the 565 00:43:43.719 --> 00:43:47.960 house. I'm kind of half in half. I have half of my folks 566 00:43:49.199 --> 00:43:52.440 are more on the fear, worried about stuff. And yes, I have 567 00:43:52.639 --> 00:43:55.920 seen them where they have bunkers. I've been in a bunker before for a 568 00:43:55.960 --> 00:44:00.199 solar system. I boat for a client one hundred percent and then half of 569 00:44:00.239 --> 00:44:02.760 them are, like I said, more, you know, on the renewable 570 00:44:02.800 --> 00:44:07.920 side of things. So everybody's value set's different. And that's the cool thing 571 00:44:07.920 --> 00:44:09.960 about Fouler is that whatever your value set is, we can build a system 572 00:44:09.960 --> 00:44:14.719 that makes sense for you. Thank you, I appreciate that work for your 573 00:44:14.800 --> 00:44:19.599 value set. Red Rocks RS dot com three oh three seven zero four two 574 00:44:19.599 --> 00:44:22.320 four four nine. Thank you for calling, Paul. We got more coming 575 00:44:22.400 --> 00:44:30.840 up. I'm troubleshooter Tom Martine, go with a sure thing Denver's best roofer 576 00:44:31.000 --> 00:44:37.360 Excel Roofing dot com. You don't pay a cent until you're content. Wait 577 00:44:37.400 --> 00:44:43.039 of it. Time for an insurance check up free no obligation comparison call Compass 578 00:44:43.079 --> 00:44:46.800 Insurance paying too much your coverage at dozens of insurance companies find out now three 579 00:44:46.800 --> 00:44:51.639 oh three seven seven to one help. You'll think you're his only customer when 580 00:44:51.679 --> 00:44:54.400 you choose Frank durand the real estate Man dot com to list your home with 581 00:44:54.519 --> 00:45:04.800 Remax Alliance three oh three nine two zero sixteen twenty two. Hi Tom Martino 582 00:45:04.880 --> 00:45:08.719 here three oh three seven one three talk three oh three seven one three A 583 00:45:08.800 --> 00:45:15.119 two five five. So back to erin aaron I. I've looked everywhere, 584 00:45:15.320 --> 00:45:22.239 including TurboTax and chatted with one of their people, and I also uh TurboTax. 585 00:45:22.800 --> 00:45:27.960 If you use the TurboTax online feature, you haven't. Do you have 586 00:45:27.960 --> 00:45:30.800 an account you can log in? No, it wasn't online. It was 587 00:45:30.840 --> 00:45:37.280 the downloadable version of TurboTax. Okay, because TurboTax does keep records of your 588 00:45:37.320 --> 00:45:45.920 tax returns. And also they said a PDF file is not part of TurboTax 589 00:45:45.039 --> 00:45:49.079 at all. Once it becomes a PDF file as part of your computer. 590 00:45:49.800 --> 00:45:57.280 So yeah, well what what happened was so I know you think it's kind 591 00:45:57.280 --> 00:46:00.199 of strange, but I actually also had a backup draw I attached to the 592 00:46:00.239 --> 00:46:06.280 computer. It went in there and deleted them from that as well. And 593 00:46:06.480 --> 00:46:10.599 so listen, man, you simply lost the PDFs. It doesn't matter why 594 00:46:10.920 --> 00:46:14.280 you reach out to the I r S. They'll give you. You can 595 00:46:14.320 --> 00:46:16.519 even do it online. You can get every transcript you have ever done. 596 00:46:16.960 --> 00:46:22.159 Well, that that is actually that is actually my question is that I have 597 00:46:22.440 --> 00:46:29.599 requested, uh, you know, the full transcript of all those years. 598 00:46:30.320 --> 00:46:35.480 Yeah, your transcript from the I r S. Yes, I tried that. 599 00:46:35.559 --> 00:46:38.920 So I filed that form, all those forms in August, and I 600 00:46:38.960 --> 00:46:43.880 still haven't heard anything back from them. That's no, no, no, 601 00:46:43.880 --> 00:46:47.880 no no, no. That that that's weird. Did you go in recently 602 00:46:47.920 --> 00:46:52.559 and do it again? Well no, I haven't. You know, I 603 00:46:52.760 --> 00:46:55.159 yet to pay. I think it's forty five dollars per return and send in 604 00:46:55.199 --> 00:46:59.480 the form. So I've done that. They've cashed away. You've already paid 605 00:46:59.480 --> 00:47:06.159 forty five bucks, yes, for how many returns? Well, with each 606 00:47:06.199 --> 00:47:09.719 return so I did I think twenty one, twenty two. I was two 607 00:47:09.760 --> 00:47:13.519 returns to two years with it and you, oh, so you don't want 608 00:47:13.519 --> 00:47:16.159 to go. So you already paid that money? Well, yeah, I 609 00:47:16.280 --> 00:47:19.800 paid it and I've been waiting for them to send out. Did you pay 610 00:47:19.800 --> 00:47:22.440 it by credit? Did you pay it by credit card? No, you 611 00:47:22.480 --> 00:47:27.960 have to pay it by check with the full and okay, so the man 612 00:47:28.320 --> 00:47:30.559 that that's weird. If you paid for that in August, you should have 613 00:47:30.599 --> 00:47:35.440 had that by now. All they do is verify you and send you a 614 00:47:35.519 --> 00:47:38.360 download link. I mean, I don't even understand why you're having such a 615 00:47:39.760 --> 00:47:43.800 you're paying money. I mean, we get transcripts all the time for free, 616 00:47:43.880 --> 00:47:46.360 so that's the price. I don't understand. But all you do is 617 00:47:46.760 --> 00:47:51.159 to IR. You just go to the I r S website, then you 618 00:47:51.239 --> 00:47:54.239 do the I d ME and you download them for free. That's all there 619 00:47:54.320 --> 00:48:00.000 is to it. Yeah, they're not the full transcript though, they don't 620 00:48:00.199 --> 00:48:06.519 contain all the uh depreciation tables and all that sort of Oh wait, yeah, 621 00:48:06.519 --> 00:48:08.920 you're trying to get the actual data itself. You're trying to get the 622 00:48:09.039 --> 00:48:14.679 data that's going to be from the turbo tax, right, Well, well, 623 00:48:14.719 --> 00:48:20.199 no that you get that from the you know, the h in the 624 00:48:20.320 --> 00:48:22.320 Revenue department, you you you know, send in a form. I forget 625 00:48:22.360 --> 00:48:27.119 what the number is, and you know, to request them. And I've 626 00:48:27.119 --> 00:48:29.599 done that, and like I said, I haven't got anything back from them 627 00:48:29.639 --> 00:48:32.280 yet. I'm just wondering whether that's normal or is it just be lost in 628 00:48:32.320 --> 00:48:36.679 the shuffle like everything. No, it's not, it's not normal. It's 629 00:48:36.719 --> 00:48:42.239 not normal. And we could call Larsen Tax Relief and ask what you do 630 00:48:42.280 --> 00:48:46.559 in a case like that. I am positive they've had to get full copies 631 00:48:46.599 --> 00:48:51.599 of returns. Let's get somebody from Larsen Tax Relief on to weigh in on 632 00:48:51.639 --> 00:48:53.760 this hold on Aaron, we'll get that too. Three oh three, seven 633 00:48:53.800 --> 00:48:55.960 to one three talk seven one three two, five to five. Ray, 634 00:48:57.000 --> 00:49:06.480 what is your question on residency? A married couple in their primary residence the 635 00:49:07.000 --> 00:49:14.280 five hundred thousand dollars gain if they sell the house after holding it several years. 636 00:49:15.320 --> 00:49:19.559 I understand you pick capital gains above the five hundred thousand for the two 637 00:49:20.480 --> 00:49:24.119 What happens when the first party dies and you supposedly get a new basis? 638 00:49:24.920 --> 00:49:30.119 How do you figure the basis? Okay? Eric, you go ahead. 639 00:49:30.719 --> 00:49:34.840 Yeah, if it was a married couple and the partner dies, you get 640 00:49:34.840 --> 00:49:38.920 a step up of one half of that actual cost on the day of death. 641 00:49:39.079 --> 00:49:42.119 Yeah, on the day of death, you get a step up to 642 00:49:42.159 --> 00:49:46.800 that fair market value, which will reduced to gain. Okay, could you 643 00:49:46.800 --> 00:49:52.239 give me a dollars example how that would work? They started. So, 644 00:49:52.400 --> 00:50:00.159 let's say the house is what's your house worth? Say it was purchased for, 645 00:50:00.639 --> 00:50:07.360 not what it's purchased for. What is it worth? Seven hundred thousand? 646 00:50:07.679 --> 00:50:10.400 And you're gonna and it was purchased for two hundred, right? Is 647 00:50:10.400 --> 00:50:15.679 that what you're saying? I was purchased for one hundred, one hundred. 648 00:50:15.760 --> 00:50:22.920 Okay, so six thousand and six hundred thousand in capital gains. If your 649 00:50:22.119 --> 00:50:27.039 if your spouse was still alive, you'd have the five hundred thousand dollars deduction. 650 00:50:27.559 --> 00:50:31.559 But let's say she died a week ago. Your basis on that house 651 00:50:31.679 --> 00:50:37.480 half of it, fifty percent of it is now on that fifty percent seven 652 00:50:37.599 --> 00:50:40.960 hundred thousand dollars. So the math doesn't no, mark, it's half of 653 00:50:42.000 --> 00:50:45.000 that. He gets a step up. That's what I said. Half The 654 00:50:45.039 --> 00:50:47.599 math has not changed, is my point. It's the exact same math. 655 00:50:49.800 --> 00:50:54.280 So if your house is worth seven hundred thousand, now you're going to have 656 00:50:54.320 --> 00:51:00.199 a basis of of your the one hundred you paid for it, and then 657 00:51:00.639 --> 00:51:12.039 the additional three point fifty your basis will step up to four fifty. Okay, 658 00:51:13.320 --> 00:51:16.920 and how do you document the value at the time of deal? I 659 00:51:16.920 --> 00:51:22.239 don't think you stated that right town. No, Well, let me mention 660 00:51:22.360 --> 00:51:25.079 this here. This is this is another situation. When there's a married couple 661 00:51:25.400 --> 00:51:30.920 and one spouse dies, you still get the five hundred thousand dollars exclusion for 662 00:51:31.000 --> 00:51:36.840 like two years, but after it goes past two years, your exclusion reduces 663 00:51:36.880 --> 00:51:42.239 down to two fifty. Oh you become a single person. Yeah, yeah, 664 00:51:43.039 --> 00:51:45.480 yes, so you but his basis will still be higher. That's true. 665 00:51:45.559 --> 00:51:49.679 You still get that step up in the ass but your bait, but 666 00:51:49.880 --> 00:51:53.559 your exclusion goes down. So are you going to First of all, did 667 00:51:53.599 --> 00:52:01.320 you have your wife die? Aaron? Aaron? Sorry, I'm Ray, 668 00:52:01.360 --> 00:52:07.840 I guess what's that siring to someone else? I'm oh, Ray, I'm 669 00:52:07.880 --> 00:52:12.760 sorry, I'm sorry. Residency. Sorry it was on taxis and Ray, 670 00:52:13.079 --> 00:52:17.719 Yeah, I'm sorry, did your wife die? No, I'm just looking 671 00:52:17.760 --> 00:52:22.480 at it for my sister and a cousin and myself when the time comes. 672 00:52:22.960 --> 00:52:28.559 Okay, but here's the deal. What Eric said is very important. You 673 00:52:28.599 --> 00:52:32.039 get a stepped up in basis on half the house. So what I said 674 00:52:32.159 --> 00:52:36.639 was correct. Mark, if the house is seven hundred thousand on the day 675 00:52:36.679 --> 00:52:40.360 of death, his half of his basis is three point fifty. The other 676 00:52:40.440 --> 00:52:46.679 half remains what it was on there. So he's going to have a stepped 677 00:52:46.760 --> 00:52:51.199 up in basis. And if you sell it within two years of death, 678 00:52:51.280 --> 00:52:54.639 you get the full five hundred thousand exclusion. If you wait two years, 679 00:52:54.719 --> 00:53:00.360 it says if you're single filing single and you only get the two hundred and 680 00:53:00.360 --> 00:53:07.480 fifty thousand dollars exemption, but you still get the stepped up basis. How 681 00:53:07.519 --> 00:53:12.280 do I, I'm sure I get the step up basis? Do I account? 682 00:53:12.599 --> 00:53:15.199 You know that's a good point. I don't know. How do you 683 00:53:15.320 --> 00:53:17.800 document day of debt and all of that and the basis. Here's what's cool 684 00:53:17.800 --> 00:53:22.719 about it. I've never seen anybody ever audited for this. It's just you 685 00:53:22.880 --> 00:53:27.800 keep your own internal record and on your tax return that year you report it. 686 00:53:28.039 --> 00:53:30.960 But it's just your own internal math record keeping. Just nothing you have 687 00:53:31.079 --> 00:53:35.800 to do you don't have to have an appraisal or anything. No, it's 688 00:53:35.880 --> 00:53:39.079 really losing. You just estimate. Yeah, and let's say in Ray, 689 00:53:39.239 --> 00:53:43.320 Mom and apple Pie, you shouldn't have to pay taxes in the cell of 690 00:53:43.320 --> 00:53:46.400 a residence anyway, So you just have your own document and you report it 691 00:53:46.440 --> 00:53:51.239 on the tax return and that's all you do. Hey, and Ray. 692 00:53:51.360 --> 00:53:54.440 The other thing in your initial example, where you have six hundred thousand inequity 693 00:53:54.679 --> 00:53:59.360 and you would have to pay taxes on that hundred thousand, I would guess 694 00:53:59.440 --> 00:54:05.440 almost everybody in that circumstance has put one hundred thousand dollars into their residency if 695 00:54:05.440 --> 00:54:08.480 they've been there over ten years, such as the room, a furnace, 696 00:54:08.559 --> 00:54:15.320 in everything else. I would just take interested in how you can ensure the 697 00:54:15.639 --> 00:54:21.480 new basis. As he said, you don't. You just estimate and then 698 00:54:21.559 --> 00:54:27.440 they he's never seen anyone audited on it. But just one quick question though, 699 00:54:27.559 --> 00:54:30.239 on the calculation of basis. I want to make sure if it's worth 700 00:54:30.400 --> 00:54:35.840 If he calculates it's worth seven fifty and half of his basis goes up to 701 00:54:35.920 --> 00:54:39.480 three point fifty, is the other half half of what he purchased it for 702 00:54:39.800 --> 00:54:45.840 or the whole purchase price on the other half. Say that again. Okay, 703 00:54:45.159 --> 00:54:49.519 so he's got a house, Tom, That's exactly why I was saying. 704 00:54:49.559 --> 00:54:52.599 Your math was wrong. So and it's worth seven hundred, right, 705 00:54:53.239 --> 00:54:58.480 So now he has fifty percent of that basis goes up to three point fifty 706 00:54:58.920 --> 00:55:01.840 half of seven hundred. The other half of the basis if he wants to 707 00:55:01.880 --> 00:55:06.519 add to get his full basis, is it the one hundred they paid for 708 00:55:06.559 --> 00:55:09.239 it as a couple or is that divided in two? It's divided into Okay, 709 00:55:09.239 --> 00:55:12.400 got it. Fifth, That's what I was saying. That's okay, 710 00:55:12.480 --> 00:55:16.320 so instead of four fifty, it's it's four hundred. But but but close, 711 00:55:16.440 --> 00:55:20.280 Okay, I get it. So Aaron, here's the deal though, 712 00:55:20.840 --> 00:55:24.440 and for anyone listening, and I never knew this. If you're married and 713 00:55:24.480 --> 00:55:29.480 you're gonna sell it and get the five hundred thousand dollars exclusion, it has 714 00:55:29.519 --> 00:55:32.039 to be done within two years of the death. More coming up on the 715 00:55:32.079 --> 00:55:43.440 Troubleshooter Show. Go with a sure Thing Denver's Best Roofer Excel roofing dot com. 716 00:55:43.480 --> 00:55:50.039 You don't pay a cent until you're content. Time for an insurance check 717 00:55:50.119 --> 00:55:53.719 up free no obligation. In comparison, call Compass Insurance paying too much your 718 00:55:53.760 --> 00:55:58.800 coverage at dozens of insurance companies find out now three oh three seven to seven 719 00:55:58.800 --> 00:56:01.599 to one help. You'll think you're his only customer when you choose Frank durand 720 00:56:01.599 --> 00:56:07.039 the real estate man dot com to list your home with Remax Alliance three oh 721 00:56:07.079 --> 00:56:14.639 three nine two zero sixteen twenty two. Hi Tom Martine, Okay, I'm 722 00:56:14.639 --> 00:56:16.840 going to ask that you just be patient here. I'm going to bring up 723 00:56:17.960 --> 00:56:23.559 Michael Abate from Atlas to talk about things we talked about earlier. I want 724 00:56:23.599 --> 00:56:27.239 to get this on and he's busy. He's in a meeting right now. 725 00:56:27.239 --> 00:56:30.239 But Michael, thank you for taking time. Are you there, sir? 726 00:56:30.280 --> 00:56:35.760 I am welcome all right now. We had a question, okay, and 727 00:56:35.880 --> 00:56:43.159 it's for higher income earners who can't qualify for a wroth. They can't simply 728 00:56:43.280 --> 00:56:47.960 open up a wroth, okay. We wanted to know how would those people 729 00:56:49.880 --> 00:56:54.840 get a wroth anyway through what's called a back door. Now. I understand 730 00:56:54.880 --> 00:57:00.519 there's a lot of other circumstances, but let's talk about basically, uh, 731 00:57:01.360 --> 00:57:07.400 the simplest form. Someone who doesn't have let's say a four to one k. 732 00:57:07.079 --> 00:57:14.800 Someone who maybe has steps or iras how but they're making too much money 733 00:57:15.519 --> 00:57:17.719 to do a wroth. What would be too much money to do a wroth? 734 00:57:20.639 --> 00:57:23.599 So for single people you've got to a phase out of one hundred and 735 00:57:23.639 --> 00:57:28.079 forty six thousand, one hundred and sixty one and married final jointments that will 736 00:57:28.159 --> 00:57:31.519 hire at two thirty to two forty. So let's say a single individual is 737 00:57:31.559 --> 00:57:36.480 making too much money to do a wroth. Is there a back door we've 738 00:57:36.519 --> 00:57:40.760 heard about? There is what used to be called a back door, but 739 00:57:42.000 --> 00:57:45.519 actually in the last few years was put into a new set of laws called 740 00:57:45.519 --> 00:57:50.920 the Secure Act. So what the rough back door used to do is allow 741 00:57:50.960 --> 00:57:53.679 you to put extra money into a retirement account and convert it when it's in 742 00:57:53.719 --> 00:57:59.440 there. One of the benefits that happened with the law change, and this 743 00:57:59.519 --> 00:58:06.760 happened two decembers ago, was that you were allowed to convert i toural roth 744 00:58:06.800 --> 00:58:13.840 ira from traditional pre tax dollars without any income limitation. Now, so let's 745 00:58:13.880 --> 00:58:19.320 take that one step at a time. So if someone has already a separate 746 00:58:19.440 --> 00:58:23.760 ira, they can take money out of that and put it into a wroth. 747 00:58:25.360 --> 00:58:30.119 Correct, But when they take money out of it, that money has 748 00:58:30.159 --> 00:58:36.039 not been taxed. Do they have to pay tax on it? What happens 749 00:58:36.039 --> 00:58:38.639 on a ROTH conversion, whether it's in an IRA or whether it's in a 750 00:58:38.679 --> 00:58:44.159 four to one K plan, is a ten ninety nine R is generated and 751 00:58:44.280 --> 00:58:47.760 it does show income for that year. It would show it on any ROTH 752 00:58:47.840 --> 00:58:52.599 conversion. And the limit that you can do per year is seven thousand dollars 753 00:58:52.800 --> 00:58:59.239 with an extra thousand and four catch up if you're over fifty. Okay, 754 00:58:59.280 --> 00:59:04.760 so you can do eight thousand from a step an IRA or a four to 755 00:59:04.800 --> 00:59:08.679 oh one K. Correct, you were allowed to convert that and no income 756 00:59:08.760 --> 00:59:14.840 limit, no income limit, but you must take the income on that money. 757 00:59:15.039 --> 00:59:19.880 Yeah, like a Schwab or a Merritrade or whoever you have, will 758 00:59:19.880 --> 00:59:22.719 actually generate it when you're moving it from one to the other. Right, 759 00:59:22.760 --> 00:59:27.239 I understand that, but but I need to know this. You do not 760 00:59:27.360 --> 00:59:30.639 pay a penalty though for that withdrawal and transfer. You just pay the income 761 00:59:30.679 --> 00:59:36.360 tax. Correct. It is just a conversion that's staying in an account with 762 00:59:36.440 --> 00:59:39.239 a different wrapper around the type of account. So you know, Michael, 763 00:59:39.320 --> 00:59:47.320 what was what was the changes? The changes were you could not do conversions 764 00:59:49.000 --> 00:59:52.760 of after tax dollars that you put into a four to one K plan, 765 00:59:52.639 --> 00:59:57.679 they close that back door off. What does that mean? What? What 766 00:59:57.719 --> 01:00:00.760 do you mean that people used to pay tax and put it into a separate 767 01:00:00.880 --> 01:00:07.119 IRA. Some work plans allow for you to put extra tax to third dollars 768 01:00:07.119 --> 01:00:14.159 in and basically do a conversion on that. That was the rough back door. 769 01:00:14.599 --> 01:00:17.280 You would put it in as an extra contribution you don't get a tax 770 01:00:17.320 --> 01:00:22.400 benefit for, and then it gets converted you once it's in there. That's 771 01:00:22.480 --> 01:00:25.320 what Mark was doing. But he's probably doing it knowing he has the right 772 01:00:25.360 --> 01:00:30.880 people, so he's probably doing it the new way now, which in essence 773 01:00:30.920 --> 01:00:36.119 it sounds exactly the same. You're just offsetting. I mean you really or 774 01:00:36.199 --> 01:00:42.320 can you not put extra money in? If you work with your CPA and 775 01:00:42.360 --> 01:00:45.880 find out what in terms of your limitations are and making a contribution. If 776 01:00:45.880 --> 01:00:52.480 you're below that limit, you can make that contribution. But another idea, 777 01:00:52.639 --> 01:00:55.559 and this is really along the same line as the back door, making a 778 01:00:55.599 --> 01:01:02.239 non deductible contribution to an IRA then doing the conversion. Okay, you can 779 01:01:02.320 --> 01:01:07.800 still do that, yep, absolutely then okay, and even if you have 780 01:01:07.800 --> 01:01:13.239 a four to one K or other vehicles. You can still do a non 781 01:01:13.320 --> 01:01:19.039 deductible contributions to an IRA. The four one K plan was really the chassis 782 01:01:19.079 --> 01:01:22.800 it worked well on because it allowed you to put up to a limit of 783 01:01:22.320 --> 01:01:27.920 It was close to sixty thousand dollars total. So the window now is smaller, 784 01:01:28.440 --> 01:01:31.639 but everyone has the ability to use it. One thing I want to 785 01:01:31.679 --> 01:01:37.800 be clear on. The four one K plan may allow for different circumstances and 786 01:01:37.880 --> 01:01:44.239 conversions or an in service withdrawal. Yes, so you have lots of different 787 01:01:44.280 --> 01:01:46.559 options in terms of how to address it. It's just working with the right 788 01:01:46.599 --> 01:01:52.679 professionals now, Michael. One other question, then, these in service rollovers 789 01:01:52.679 --> 01:01:57.679 are contributions? What benefit is there if you're already making tax deferred money, 790 01:01:57.920 --> 01:02:00.960 why would you take the income and converted? Why would you do that? 791 01:02:02.159 --> 01:02:07.679 So what I talked to clients about is looking at what I call bracket creep. 792 01:02:07.719 --> 01:02:09.280 So you know where your tax bracket is, and you know how much 793 01:02:09.320 --> 01:02:15.360 more income you can actually generate before bumping up into say twenty four to thirty 794 01:02:15.400 --> 01:02:20.280 two percent. If you are able to look at that and say, okay, 795 01:02:20.440 --> 01:02:23.400 I have medicare concerns, meaning I make a lot of money, I'm 796 01:02:23.440 --> 01:02:28.880 going to have a surcharge on Medicare. Having money in a ROTH allows you 797 01:02:28.920 --> 01:02:34.199 to get tax diversification on the back end, so you can control some retirement 798 01:02:34.239 --> 01:02:40.760 costs, meaning there's no surcharge because you are blessed to make too much money. 799 01:02:43.039 --> 01:02:45.880 Well, because that now not real. That income from the WROTH is 800 01:02:45.920 --> 01:02:57.320 not counted. No, that is the roth IRA contribution for a four to 801 01:02:57.400 --> 01:03:00.599 one K plan as an example, that is counted on your two But it's 802 01:03:00.719 --> 01:03:07.000 after tax dollars, right, so if you make it. We got disconnected 803 01:03:07.320 --> 01:03:10.239 somehow. I'll have to call them back. We got disconnected. I'm gonna 804 01:03:10.239 --> 01:03:19.119 take a break. We'll be right back. Go with a sure thing Denver's 805 01:03:19.159 --> 01:03:22.480 Best roofer Excel Roofing dot com. You don't pay a cent until you're content, 806 01:03:24.079 --> 01:03:30.599 wait time for an insurance check up free no obligation comparison call Compass insurance 807 01:03:30.760 --> 01:03:35.880 paying too much your coverage at dozens of insurance companies find out now three all 808 01:03:35.960 --> 01:03:38.719 three seven seven to one help. You'll think you're his only customer when you 809 01:03:38.800 --> 01:03:43.960 choose Frank durand the real estate Man dot com to list your home with Remax 810 01:03:44.000 --> 01:03:51.719 Alliance three all three nine two zero, sixteen twenty two. Hi Tom Martine. 811 01:03:51.760 --> 01:03:57.159 We're back with Michae Lavate from Atlas and we were talking about establishing a 812 01:03:57.239 --> 01:03:59.400 roth. And I want to make it clear, if you have a retirement 813 01:03:59.480 --> 01:04:03.039 plan already, you can transfer some of that money that you've had as a 814 01:04:03.119 --> 01:04:12.719 deduction as a tax a tax deduction into a wroth, and then you pay 815 01:04:12.800 --> 01:04:16.000 tax on the amount you transfer into the wroth. But that's the last time 816 01:04:16.039 --> 01:04:23.039 you pay tax on that. So if you anticipate your tax rate going up, 817 01:04:23.119 --> 01:04:26.119 that would be a good thing to do. When else would it be 818 01:04:26.119 --> 01:04:32.199 beneficial to go into a wroth. So I can actually tell you with my 819 01:04:32.360 --> 01:04:36.760 own parents as an example, if you are making Social Security income and you 820 01:04:36.840 --> 01:04:43.119 have any kind of retirement plan distributions, you may be over that medicure level 821 01:04:43.280 --> 01:04:46.360 where you're going to have to start paying that surcharge. If you take money 822 01:04:46.360 --> 01:04:49.960 out of a roth higher rate to stay below that limit, then you can 823 01:04:50.039 --> 01:04:54.119 end up saving a significant amount of money. Wow. So it goes to 824 01:04:54.239 --> 01:04:59.199 the tax diversification of it with where am I going to take money from, 825 01:04:59.239 --> 01:05:03.679 so that this it impacts me the least. But for people who make money 826 01:05:04.360 --> 01:05:09.360 over the limit, you just can't open just a straight WROTH right now, 827 01:05:09.440 --> 01:05:13.239 You just can't do it. Is that Nope? But remember you can do 828 01:05:13.280 --> 01:05:17.320 a traditional non deductible contribution and check with your CPA on that, but you 829 01:05:17.360 --> 01:05:24.079 can convert that non deductible contribution to a ROTH, so similar to how our 830 01:05:24.119 --> 01:05:29.400 backdoor worked, I get it. And that non deductible contribution does not have 831 01:05:29.440 --> 01:05:34.800 income limits. I think the income limits for all designed contribution plans are going 832 01:05:34.840 --> 01:05:39.679 to be about three hundred and thirty thousand dollars this year, so like that's 833 01:05:39.719 --> 01:05:43.480 the most you would be able to make. But the WROTH phase out is 834 01:05:43.480 --> 01:05:46.320 two forty for Mary Finance one, so a lot of people can take advantage 835 01:05:46.360 --> 01:05:51.440 of that for sure. Absolutely. Okay, Michael, I really appreciate your 836 01:05:51.440 --> 01:05:58.400 time. Thank you so much. And of course Atlas epas and Advisors, 837 01:05:58.440 --> 01:06:00.880 And if you wanted to talk to him, if you call the main number, 838 01:06:00.880 --> 01:06:03.920 that would be good. I mean you can funnel the call to this 839 01:06:04.039 --> 01:06:11.800 and Michael is a registered investment advisor, yes with Atlas three oh three seven 840 01:06:11.440 --> 01:06:15.760 nine one one one. Okay. Now, the guy was calling Aaron, 841 01:06:16.320 --> 01:06:19.559 this is really Aaron, and we were we were trying to get him some 842 01:06:19.679 --> 01:06:26.599 help from Uh, we're still going to call Larson to see if they have 843 01:06:26.719 --> 01:06:31.480 any tricks for getting transcripts quicker of the entire return. So hang on and 844 01:06:31.519 --> 01:06:39.360 we'll get to you now. It is U Shabam's I hope I'm saying Sam 845 01:06:39.559 --> 01:06:43.079 your name properly. You have a question on a traffic ticket. Go ahead? 846 01:06:45.840 --> 01:06:49.519 Are you there? Hi, Tom? I'm here, Yes, sir, 847 01:06:51.199 --> 01:06:59.960 Tommy snoot traffic valation is a parking violation? Okay, what happened? 848 01:07:00.159 --> 01:07:02.719 You know, it's kind of weird. You know. I got a notice 849 01:07:02.800 --> 01:07:10.559 from one of the lawyers from Room Pill yesterday. I got a letter and 850 01:07:10.599 --> 01:07:17.440 he said that it's a it's a what it's called parking dollar for twenty nineteen. 851 01:07:17.920 --> 01:07:21.639 Okay, but I need to ask you something. Was this private property? 852 01:07:24.360 --> 01:07:28.000 I don't know because this one I never had it before. Okay, 853 01:07:28.039 --> 01:07:31.360 listen this. I want to explain something to you. Okay, it's a 854 01:07:31.360 --> 01:07:35.000 collection notice. It's not a site. It's not from the city. If 855 01:07:35.039 --> 01:07:41.360 it's a mun If it's not municipal, you can ignore it until they sue 856 01:07:41.400 --> 01:07:45.599 you. But they'd have to prove time date occurrence. And I think if 857 01:07:45.599 --> 01:07:48.159 it's from nineteen, they've lost their right to do it. Make sure it 858 01:07:48.199 --> 01:07:53.280 hasn't already been a default judgment. But I'm going to tell you in it 859 01:07:53.480 --> 01:07:57.559 very shortly. It's in a very short go with a sure thing Denver's Best 860 01:07:57.639 --> 01:08:04.280 Roofer Excel Roofing dot com. You don't a cent until you're content. Time 861 01:08:04.320 --> 01:08:10.599 for an insurance check up free no obligation comparison call Compass Insurance paying too much 862 01:08:10.719 --> 01:08:15.000 your coverage at dozens of insurance companies find out now three oh three seven seven 863 01:08:15.079 --> 01:08:17.840 one help. You'll think you're his only customer when you choose Frank durand the 864 01:08:17.880 --> 01:08:23.439 real estate Man dot com to list your home with Remax Alliance three oh three 865 01:08:23.520 --> 01:08:39.279 nine two zero sixteen twenty two RiPP new need so you don't have come run 866 01:08:39.399 --> 01:08:45.640 anxious as fast as you can show Shooter's gonna help come. Man six is 867 01:08:45.720 --> 01:08:54.079 the Troubleshooter Show. No Tom Martino, Hi, Tom Martino here, Welcome 868 01:08:54.159 --> 01:08:58.600 to the show. Three oh three seven one three talk three oh three seven 869 01:08:58.640 --> 01:09:00.760 one three eight two five five the second have the Troubleshooter Show as we embark 870 01:09:00.800 --> 01:09:05.600 on another two hours of action packed radio to solve your problems. And we've 871 01:09:05.640 --> 01:09:10.119 had full lines all morning. Get your calls in on any and all topics. 872 01:09:10.159 --> 01:09:15.079 Three oh three seven to one three talk three oh three seven one three 873 01:09:15.560 --> 01:09:21.439 eight two five five. Goodness, we have learned a lot. And everyone, 874 01:09:23.279 --> 01:09:29.159 do you hear me? Everyone should take advantage of whatever income deferral programs 875 01:09:29.199 --> 01:09:32.720 they can do, whether it be a STEP which is a simplified employee pension 876 01:09:32.800 --> 01:09:36.039 or whatever they call it. Well, what is it. It's self employed 877 01:09:36.079 --> 01:09:43.640 pension or self employed uh whatever. Yeah, And then you have iras individual 878 01:09:43.960 --> 01:09:46.680 retirement accounts, and then you have four to one k's, which actually you 879 01:09:46.720 --> 01:09:49.880 can do even if you have a company and you're just the only employee. 880 01:09:49.880 --> 01:09:53.520 You can do it for yourself and do both the match on each end. 881 01:09:53.760 --> 01:09:56.760 Sometimes it doesn't pay to do that. It's better to just do the step. 882 01:09:57.439 --> 01:10:00.159 But here's the deal. The point is, you got to take advantage 883 01:10:00.239 --> 01:10:05.159 of as much tax deferrals as you can, or tax free or tax deferred 884 01:10:05.159 --> 01:10:10.600 growth, because taxes eat up most of our income. Now, obviously we 885 01:10:10.600 --> 01:10:14.199 should all pay our fair share, but you don't have to pay more than 886 01:10:14.239 --> 01:10:18.239 your fair share. Deductions are there for a reason. And all of that 887 01:10:18.479 --> 01:10:24.880 so atlas EPAS keeps us on course. Here Eric was talking to us earlier, 888 01:10:24.960 --> 01:10:30.800 we talked to one of his colleagues, Michae Labat, about getting other 889 01:10:30.880 --> 01:10:38.239 things going, diversifying your tax deferrals, but in any case, growing your 890 01:10:38.279 --> 01:10:45.560 money tax deferred. However, there are people who have savings and money markets, 891 01:10:46.399 --> 01:10:53.439 and they have bonds, and they have stocks, and they have regular 892 01:10:53.439 --> 01:10:57.680 accounts where they want to keep ahead of inflation. But those are all subject 893 01:10:57.760 --> 01:11:02.760 to taxes. Now, the good news is most of these places like Schwab 894 01:11:02.800 --> 01:11:06.439 and a well Meritrade is Schwab now, I guess so. But most of 895 01:11:06.479 --> 01:11:12.600 these platforms, when they issue a ten ninety nine eric, people don't have 896 01:11:12.680 --> 01:11:17.560 to break out on that ten ninety nine interest long term and short term? 897 01:11:17.800 --> 01:11:24.159 Isn't that usually done on the ten ninety nine automatically? Is automatic? Is 898 01:11:24.199 --> 01:11:29.760 the ten undid ninet for interest, a ten ninety nine div for dividends and 899 01:11:29.840 --> 01:11:32.560 another ten dy nine for capital gains? Yeah? Distinct? Yeah, And 900 01:11:32.600 --> 01:11:35.720 the capital gains can be short term or long term, but you don't have 901 01:11:35.760 --> 01:11:41.119 to worry about that as a taxpayer when you get your ten ninety nine, 902 01:11:41.159 --> 01:11:46.279 that's usually figured for you, right, Yeah. And the difference for those 903 01:11:46.399 --> 01:11:53.880 listening between long term and short term basically short term capital gains is nothing more 904 01:11:53.880 --> 01:11:58.960 than just ordinary income, isn't that right? Correct? Not necessarily earned income. 905 01:11:59.159 --> 01:12:01.039 I mean, well it is, but I mean it's not subject to 906 01:12:01.479 --> 01:12:05.960 employment tax though. Right, it's just regular income, right, and regular 907 01:12:05.960 --> 01:12:13.039 income is just subject to taxes, but not HR expenses and all of that. 908 01:12:14.199 --> 01:12:21.119 The thing is you need to find as many legit deductions as possible. 909 01:12:21.760 --> 01:12:28.800 What are legit deductions nowadays? You said depreciation for business is a big one, 910 01:12:28.840 --> 01:12:32.439 and that could even be changing right now retroactively. Yeah, this is 911 01:12:32.479 --> 01:12:36.319 a wild things. Listen to this. Listen. There's a bill going through 912 01:12:36.359 --> 01:12:42.479 Congress right now. It's called the Tax Extenders Act, where Congress could pass 913 01:12:42.520 --> 01:12:47.079 a bill that has an impact retroactively back to your twenty twenty three tax return, 914 01:12:47.520 --> 01:12:51.119 mainly if you have a business. Because the big one is depreciation, 915 01:12:51.359 --> 01:12:57.760 which may be increased if they pass this bill, plus R and D credits, 916 01:12:57.760 --> 01:13:00.840 which is more of a business thing. So if it's while that they're 917 01:13:00.880 --> 01:13:08.560 debating something which could impact your twenty twenty three tax return, so deductions for 918 01:13:08.720 --> 01:13:14.960 depreciation. When people buy business equipment or things that wear out, the idea 919 01:13:15.199 --> 01:13:17.920 is you get a deduction for the wearing out. I mean that's theoretically what 920 01:13:17.960 --> 01:13:24.000 depreciation is, right, and then when that wears out, you get something 921 01:13:24.079 --> 01:13:30.640 new, presumably and deduct that. What a lot of corporations, small mom 922 01:13:30.680 --> 01:13:35.119 and pops, self employed people do. They're good on the depreciation part. 923 01:13:35.520 --> 01:13:41.399 But when they got that truck that they bought and they depreciated and then they 924 01:13:41.520 --> 01:13:46.680 sell it, what they don't understand is that now becomes income. Right. 925 01:13:47.960 --> 01:13:53.960 And I'll bet you a lot of people don't recapture. I bet you they 926 01:13:54.000 --> 01:13:58.640 don't. I mean, I mean, how does the government know when you 927 01:13:58.680 --> 01:14:03.319 sold it? They would only know that if you reported it. Yeah, 928 01:14:03.399 --> 01:14:08.239 and if you sell it, it's done. I mean, do people ever 929 01:14:08.279 --> 01:14:12.760 get audited and they say to people, what happened to the last two trucks 930 01:14:12.760 --> 01:14:16.800 you had? There's such a low rate of audit right now. I have 931 01:14:16.920 --> 01:14:24.159 not seen that happen because they're not going off It's funny. They're going off 932 01:14:24.199 --> 01:14:29.640 of schedule cee small earners and the big high earners, but not a lot 933 01:14:29.680 --> 01:14:33.319 in the middle arena. I was going to ask who gets audited the most? 934 01:14:33.359 --> 01:14:36.600 You just told me. So you have schedule. See people who are 935 01:14:36.640 --> 01:14:43.960 self employed working their asses off, and you have high earners right, regular 936 01:14:44.000 --> 01:14:48.319 wage earners are never getting audited, very rarely, almost never. If you 937 01:14:48.479 --> 01:14:54.239 own could you own something, Eric like I don't know, seven to eleven 938 01:14:54.319 --> 01:14:58.720 whatever, some kind of business and you work there and you manage it, 939 01:14:58.760 --> 01:15:02.520 but you're also the owner, and instead of actually taking a salary, you 940 01:15:02.640 --> 01:15:08.279 basically just issue yourself a K one at the end of the year and you're 941 01:15:08.319 --> 01:15:13.960 basically paying whatever it is twenty twenty five percent compared to up to forty plus 942 01:15:13.960 --> 01:15:17.079 percent. Is that where is that line? Mark? That is a great 943 01:15:17.159 --> 01:15:23.680 question, and it is something that comes up a lot actually, and it's 944 01:15:23.680 --> 01:15:29.159 called fair compensation, right, isn't that? Don't you have to take fair 945 01:15:29.279 --> 01:15:32.840 compensation? If you have an es corp. The ISO expects you to show 946 01:15:32.880 --> 01:15:40.159 some kind of what they call reasonable compensation on page one of your corporate tax 947 01:15:40.199 --> 01:15:45.479 return. But you can take the majority of it. If it's above reasonable 948 01:15:45.520 --> 01:15:50.119 compensation, you can take it as investment income. You can take it on 949 01:15:50.319 --> 01:15:55.199 investment in ordinary in ordinary but not subject to the payroll rights, right, 950 01:15:55.279 --> 01:15:59.000 Yeah, And it's not subject to the Medicare and tax either, which is 951 01:15:59.039 --> 01:16:02.319 part of the payroll right, So yes, Mark, But you'd be shocked 952 01:16:02.960 --> 01:16:10.479 at how many business people try to take all of their income outside of wages. 953 01:16:11.239 --> 01:16:15.720 Well, it's interesting taking the seven eleven approach. You know, if 954 01:16:15.720 --> 01:16:19.279 you're running your own seven eleven, and you know a manager of seven eleven 955 01:16:19.319 --> 01:16:25.000 makes forty grand a year, but the stores making you a half a million 956 01:16:25.000 --> 01:16:29.199 a year, I would guess long as you paid yourself that forty thousand, 957 01:16:29.279 --> 01:16:31.479 that's right, Zerro, you can take the rest of the profit at that 958 01:16:31.600 --> 01:16:36.119 four point fifty without paying the additional taxes. But now remember there's another thing 959 01:16:36.279 --> 01:16:42.119 to take into consideration, because everyone who is self employed in a way, 960 01:16:42.159 --> 01:16:46.720 I'm self employed, you're self employed in a way. There's a benefit too 961 01:16:46.800 --> 01:16:51.520 though, However, to taking more in a wage. If you wanted to 962 01:16:51.600 --> 01:16:58.239 start taking and creating pension plans or for one k's or that kind of stuff, 963 01:16:58.479 --> 01:17:01.800 you can't do that on ordinary income. Can you without I mean without 964 01:17:01.800 --> 01:17:04.600 payroll income, can you? Or not? No, you need to have 965 01:17:04.760 --> 01:17:09.800 earned income or payroll income. And that is the main reason why we've seen 966 01:17:09.840 --> 01:17:15.239 clients evolve from originally trying to take a really small wage. But the older 967 01:17:15.279 --> 01:17:19.359 you get and the more you start to think about I want to maximize my 968 01:17:19.560 --> 01:17:26.319 retirement benefits and to do that you need to report payroll wages so you can 969 01:17:26.359 --> 01:17:31.439 max out your retirement dollars. So the benefit of getting more retirement deductions is 970 01:17:31.479 --> 01:17:36.800 bigger than worrying about once your income goes over one hundred and seventy or one 971 01:17:36.880 --> 01:17:42.840 hundred eighty thousand dollars, you're only talking about a couple of percentage points of 972 01:17:42.920 --> 01:17:47.920 earned income payroll tax, So you'd rather get a bigger retirement benefit, exactly, 973 01:17:48.159 --> 01:17:54.359 exactly, So it is. It is a delicate balance between what you 974 01:17:54.399 --> 01:17:59.760 take as a wage and what you take as you know, the business profits 975 01:18:00.039 --> 01:18:04.840 to speak right which and profits not subject to HR. But also you can't 976 01:18:04.880 --> 01:18:13.039 with profits necessarily benefit from all of the retirement tools. So again that's a 977 01:18:13.079 --> 01:18:16.760 delicate balance. We have some other things to talk about as well, but 978 01:18:16.800 --> 01:18:19.920 I invite your calls at three oh three seven one three talk seven one three 979 01:18:19.960 --> 01:18:24.640 eight two five to five. I've always wanted to ask this, and I 980 01:18:25.039 --> 01:18:28.439 swear to God when I asked this. It has nothing to do with me 981 01:18:28.520 --> 01:18:33.399 personally, But I've seen it in so many shows right now, and I've 982 01:18:33.399 --> 01:18:40.880 heard it so much that I really don't know how it's done. What is 983 01:18:41.000 --> 01:18:45.560 money laundering? People? And I'm serious I'm not trying to tell people how 984 01:18:45.560 --> 01:18:47.359 I'd break the law. But when people say they got a launder money. 985 01:18:47.439 --> 01:18:50.199 So let's say you have an illegal business, you're making tons of cash. 986 01:18:50.399 --> 01:18:56.079 Again, people, this is not this is not me a kind of sneak 987 01:18:56.079 --> 01:18:58.640 in a question, and I really mean it. So you got a ton 988 01:18:58.680 --> 01:19:02.279 of cash and then they have a business. So how is it that they 989 01:19:02.319 --> 01:19:05.720 want to take this cash and start using it? And in order to do 990 01:19:05.800 --> 01:19:10.239 it, they actually want to claim it and pay tax on it so it 991 01:19:10.279 --> 01:19:15.399 becomes real income. But how do you run cash through a business and launder 992 01:19:15.439 --> 01:19:19.680 it? How do these criminals launder money? Do they make up receipts for 993 01:19:19.840 --> 01:19:25.439 things that are sales? Like are they claiming people came through their doors? 994 01:19:26.000 --> 01:19:30.159 And if they did and bought product, well how do they I don't understand 995 01:19:30.199 --> 01:19:34.560 how they show income for product if they don't have product. So I don't 996 01:19:34.600 --> 01:19:38.199 I mean, and you may not even know because I'm not you know, 997 01:19:38.279 --> 01:19:41.560 I don't know if I'd like an accountant who's very adept at laundering money. 998 01:19:41.600 --> 01:19:45.680 But I'm just I mean, seriously, Mark, do you know what they 999 01:19:45.720 --> 01:19:48.800 mean when they talk about laundering money? I'm curious, of course, no, 1000 01:19:48.920 --> 01:19:54.279 seriously, how would you use a business to launder money? Well, 1001 01:19:54.319 --> 01:19:58.000 somehow, Let's say you get money from a drug deal one hundred thousand bucks, 1002 01:19:58.000 --> 01:20:00.159 and ultimately you don't want to keep it in your bed. You got 1003 01:20:00.199 --> 01:20:03.560 to figure out how to get it into a bank and not get it flagged. 1004 01:20:03.800 --> 01:20:06.920 So you might you know, you might own a dry cleaners. You 1005 01:20:06.960 --> 01:20:11.920 know, we'll use that an example, and you might just have totally fake 1006 01:20:11.960 --> 01:20:15.039 books. You actually don't do any dry cleaning or very little, but you 1007 01:20:15.079 --> 01:20:18.119 pump it up and you take it. Now, I can see that you 1008 01:20:18.439 --> 01:20:24.800 don't have an actual product, like a hotel or motel. I could see 1009 01:20:24.840 --> 01:20:30.239 where you'd run phantom guests through the rooms because you're not depleting. You're not 1010 01:20:30.359 --> 01:20:34.359 depleting anything, not only a phantom guest, phantom expenses, phantom everything. 1011 01:20:35.600 --> 01:20:40.720 Right, but but but but that's right, house cleaners and all. But 1012 01:20:40.840 --> 01:20:45.079 to actually make up products, I mean, you can't say you sold stuff 1013 01:20:45.079 --> 01:20:48.920 if you don't have cost of sales anywhere, And to make up cost of 1014 01:20:49.000 --> 01:20:53.880 sales that would be too much of a web you're weaving. So I'm wondering 1015 01:20:54.279 --> 01:20:59.479 which bit, like I hear laundromats are good for or or you just have 1016 01:20:59.760 --> 01:21:03.119 a real bisonans like a restaurant, something that actually makes money. So you 1017 01:21:03.159 --> 01:21:08.000 have a restaurant and it's you know, somewhat successful, mediocre, but it 1018 01:21:08.039 --> 01:21:11.880 takes in a lot of money. You could simply making deposits in there, 1019 01:21:12.239 --> 01:21:15.439 not running them through your point of sale, and then just shifting that money 1020 01:21:15.479 --> 01:21:21.600 from that bank account to somewhere else. Okay, Seeing Mark knows about laundering 1021 01:21:21.600 --> 01:21:26.439 money, I know you want to say that. Also, God just send 1022 01:21:26.439 --> 01:21:30.039 to check. A lot of people get caught up in these scams where they're 1023 01:21:30.119 --> 01:21:34.720 sent sent a check that buy a product and they're supposed to send the money 1024 01:21:34.720 --> 01:21:41.960 somewhere else. That's money laundering or it's a pure ripoff. Yeah, pure, 1025 01:21:41.960 --> 01:21:45.359 more of a pure ripoff. Now, Deputy Doc being a gynecologist for 1026 01:21:45.439 --> 01:21:49.560 years, he could have laundered money easily. He could have just claimed instead 1027 01:21:49.600 --> 01:21:55.479 of examining forty women, he examined one hundred. I mean really, I'm 1028 01:21:55.520 --> 01:21:59.439 not serious. I mean that would be something where you're not depleting a product, 1029 01:21:59.680 --> 01:22:02.119 you know, inventory. I think where you get into inventories where it 1030 01:22:02.159 --> 01:22:05.600 gets very complicated. Yeah, because you would have to Tom, we could 1031 01:22:05.600 --> 01:22:10.439 easily have lauded money because we got You know, if it gets so on 1032 01:22:10.520 --> 01:22:14.039 based cash, there's a way not to just book it. You just assume 1033 01:22:14.119 --> 01:22:18.600 that their insurance covered it. Yeah, that's true too. Well, No, 1034 01:22:18.960 --> 01:22:23.439 the whole idea would be to claim the cash. That laundering is just 1035 01:22:23.439 --> 01:22:26.720 the opposite of what you were saying. You would want to claim somebody paid 1036 01:22:26.760 --> 01:22:31.399 cash, so you have a way to deposit your cash anyway. It's it's 1037 01:22:31.439 --> 01:22:35.399 a fascinating topic. But I always wondered every time I see one of my 1038 01:22:35.439 --> 01:22:41.680 crime dramas, I always wonder, why do they buy this business and how 1039 01:22:41.720 --> 01:22:44.840 does it launder money? Now, a gambling casino, My god, would 1040 01:22:44.880 --> 01:22:48.880 that be the best way to launder money? Do you think right now there 1041 01:22:48.920 --> 01:22:55.159 are businesses right here in Colorado legit, well what appear to be legit businesses 1042 01:22:55.479 --> 01:23:00.359 that truly are fronts for laundering. Of course there are. Do you think, 1043 01:23:00.399 --> 01:23:06.319 Mark, there's actually businesses that are fronts for for cornering money? I 1044 01:23:06.359 --> 01:23:11.399 mean, I often see things and I gotta take a break. Sorry, 1045 01:23:11.399 --> 01:23:19.119 we got more coming up. Go with a sure thing Denver's best roofer excel 1046 01:23:19.239 --> 01:23:26.920 roofing dot com. You don't pay a cent until you're content. Wait time 1047 01:23:26.960 --> 01:23:30.399 for an insurance checkup free, no obligation. In comparison, call Compass Insurance 1048 01:23:30.560 --> 01:23:34.680 paying too much your coverage at dozens of insurance companies find out now three all 1049 01:23:34.760 --> 01:23:39.479 three seven seven to one help. You'll think you're his only customer when you 1050 01:23:39.560 --> 01:23:43.720 choose Frank durand the real estate Man dot com to list your home with Remax 1051 01:23:43.760 --> 01:23:47.439 Alliance three all three nine two zero sixteen twenty two. Hi Tom Martino here 1052 01:23:47.479 --> 01:23:51.960 three all three seven one three talk three oh three seven one three eight two 1053 01:23:53.039 --> 01:23:59.159 five five. All right. We are fighting for you each in every day 1054 01:23:59.199 --> 01:24:04.079 we've had some interest seen calls say we're trying to get answers on. And 1055 01:24:04.279 --> 01:24:13.399 one of the things we, uh, we're having a problem with is TurboTax 1056 01:24:15.279 --> 01:24:26.119 because everywhere I look, I can see nothing nothing where TurboTax can delete pdf 1057 01:24:26.199 --> 01:24:30.239 files. And this one man that called, and I'm waiting for any any 1058 01:24:30.239 --> 01:24:34.199 informo call, but this one man that call said he has TurboTax as a 1059 01:24:34.239 --> 01:24:40.479 downloadable program and does his taxes with TurboTax. He took an upgrade on it 1060 01:24:40.600 --> 01:24:44.479 or not an upgrade and an update where it comes in and just updates that 1061 01:24:44.560 --> 01:24:51.760 program. And now all of his accompanying or data files are gone. Those 1062 01:24:51.880 --> 01:25:02.039 data files have no connection whatsoever to TurboTax. They're so REPDF files and everywhere 1063 01:25:02.039 --> 01:25:10.039 I'm looking, there's no place where it's even possible when you update that program 1064 01:25:10.119 --> 01:25:16.199 for it to reach out and erase PDF files. He even said it erased 1065 01:25:17.159 --> 01:25:23.720 on a remote drive he had. Now that just is not technically possible. 1066 01:25:24.199 --> 01:25:28.159 So something is going on. I don't understand it, but you know, 1067 01:25:28.800 --> 01:25:32.479 it doesn't mean we have to share that fantasy. Because if someone tells me, 1068 01:25:32.560 --> 01:25:36.439 you know, I saw my dog fly and he went away and I 1069 01:25:36.439 --> 01:25:40.039 can't find him, I'm not going to go looking for a flying dog. 1070 01:25:40.760 --> 01:25:45.560 So there's nothing I can do about that. And no one has been able 1071 01:25:45.600 --> 01:25:49.720 to explain it, and no one can because it just doesn't happen. Three 1072 01:25:49.800 --> 01:25:54.840 zero three seven to one three talk seven one three eight two five five. 1073 01:25:54.920 --> 01:26:03.119 And speaking of TurboTax, here's the thing that's really strange with TurboTax. They 1074 01:26:03.199 --> 01:26:10.720 have been fine big time for claiming they had free service when they did not. 1075 01:26:12.199 --> 01:26:15.600 Have you heard about this? They yeah, Eric, Eric, they 1076 01:26:15.920 --> 01:26:20.119 got in big trouble. They got in very big trouble saying that they were 1077 01:26:20.199 --> 01:26:26.239 free when they I guess eight out of ten people went there were charged and 1078 01:26:26.399 --> 01:26:31.399 you get done and they have these charges and apparently they're stealthy and they're not 1079 01:26:32.319 --> 01:26:38.479 open about it, so they were fined. And people are being warned if 1080 01:26:38.479 --> 01:26:44.199 you use TurboTax, they do have a free version and not to be tricked. 1081 01:26:45.800 --> 01:26:53.079 So that is something to be aware of. Three zero three seven to 1082 01:26:53.119 --> 01:27:00.520 one three talk And because it is February now we need to talk about romance 1083 01:27:01.079 --> 01:27:13.920 scams. They continue to be the number one rip off for women, middle 1084 01:27:13.920 --> 01:27:23.680 aged women, especially widows. One woman listen to this. Her name's Debbie. 1085 01:27:24.039 --> 01:27:30.079 She lost more than one million dollars, not all at once, but 1086 01:27:30.439 --> 01:27:38.680 it was from her retirement account, her bank account, and her credit cards. 1087 01:27:39.880 --> 01:27:45.439 She got to know a guy online that caught her eye, some English 1088 01:27:45.479 --> 01:27:49.840 gentleman who told her everything she wanted to hear. She loved his picture. 1089 01:27:51.439 --> 01:27:59.760 He supposed his name was supposedly Eric. They began chatting and then something urging 1090 01:27:59.800 --> 01:28:03.600 came up and he needed a few bucks. She sent him money venmo. 1091 01:28:05.199 --> 01:28:12.199 Then she sent him more, and then they started to talk about living together 1092 01:28:12.279 --> 01:28:16.279 and all of that. She started making payments from twenty five hundred to ten 1093 01:28:16.359 --> 01:28:23.359 thousand dollars here and there, always for business opportunities. He claimed he was 1094 01:28:23.439 --> 01:28:26.880 making a lot of money and he was going to share it with her when 1095 01:28:26.920 --> 01:28:33.159 they got together. They were communicating for two years and during that time she 1096 01:28:33.319 --> 01:28:38.880 transferred more than a million dollars. During that time, he would also transfer 1097 01:28:39.000 --> 01:28:44.479 money back, so that allowed her to believe him even more so then she 1098 01:28:44.520 --> 01:28:46.840 would transfer it back to him. So it would go back and forth, 1099 01:28:47.159 --> 01:28:53.399 but the net result was more money was going out than was coming in. 1100 01:28:55.279 --> 01:29:01.239 Now, one time she's online, she says, and Eric says to her, 1101 01:29:02.840 --> 01:29:06.239 how do you feel about now? He came out on his own and 1102 01:29:06.279 --> 01:29:11.039 said this, how do you feel about forgiveness? I guess the guy was 1103 01:29:11.039 --> 01:29:14.880 feeling guilty? And she said, that's a weird question. Why do you 1104 01:29:15.000 --> 01:29:19.479 ask? He said, well, I have a confession to make. My 1105 01:29:19.640 --> 01:29:30.720 name is not Eric and I am not from England. He was a young 1106 01:29:30.800 --> 01:29:39.239 man, a Nigerian man from Nigeria, communicating her in Nigeria. Now here's 1107 01:29:39.279 --> 01:29:46.399 the crazy part. He apologized and asked if they could have a real relationship 1108 01:29:47.239 --> 01:29:51.840 after all of this. She was shocked. First of all, he was 1109 01:29:51.920 --> 01:30:00.239 young and totally different than who she expected to see and thought she was communicat 1110 01:30:00.600 --> 01:30:09.680 she contacted the FBI. Guess what, they have more than four thousand reports 1111 01:30:09.680 --> 01:30:13.600 of this kind of stuff going on, and many of them turn out to 1112 01:30:13.640 --> 01:30:19.359 be from Nigeria, some are from India, some are from the Philippines. 1113 01:30:20.560 --> 01:30:27.520 Now is that incredible? How do you get truly that involved with someone that 1114 01:30:27.560 --> 01:30:30.159 you've never actually seen. They don't even zoom, by the way, They 1115 01:30:30.199 --> 01:30:35.239 were just communicating with photographs and here and there in texts and snapchats. How 1116 01:30:35.279 --> 01:30:40.399 do you do? Can tell you how these these women and men are so 1117 01:30:40.600 --> 01:30:45.399 desperate that they need somebody in their life. And you know, I would 1118 01:30:45.439 --> 01:30:49.760 say ninety five percent of them are either in the military or working on an 1119 01:30:49.760 --> 01:30:55.199 oil rig where they can't be contacted, so they keep the scam going on 1120 01:30:55.279 --> 01:31:00.000 and on. And I tell people, if you're suspicious, it's so easy 1121 01:31:00.159 --> 01:31:03.880 to go on Google and do a reverse image search and that will usually show 1122 01:31:03.960 --> 01:31:09.399 that the picture has been used in a whole bunch of different cases, and 1123 01:31:09.439 --> 01:31:15.039 it's not the person that you're talking to that scene. Like Deputy Doc for 1124 01:31:15.079 --> 01:31:19.039 example, Sounds experiences because he works at AARP and does a lot there and 1125 01:31:19.279 --> 01:31:24.560 romance scams. I mean seriously, they come in engine every day. And 1126 01:31:24.840 --> 01:31:28.920 the other thing that amazes me, Tom is that you get women who believe 1127 01:31:29.039 --> 01:31:33.720 and men too, who believe that celebrities are going to want to be with 1128 01:31:33.760 --> 01:31:36.640 them, that are going to give up their career and marry these people. 1129 01:31:36.960 --> 01:31:43.800 I've had people from who was it, Paul Simon was going to do it? 1130 01:31:44.079 --> 01:31:47.119 And some other R and B actress, and these people believe that these 1131 01:31:47.119 --> 01:31:53.399 celebrities are willing to give up their celebrity lifestyle and marry a frumpy widow from 1132 01:31:53.520 --> 01:31:58.600 Kansas. You know, there's just no reality testing Thatchniques love doc. But 1133 01:31:59.199 --> 01:32:01.520 by the way, I just love how you talk. I love it. 1134 01:32:02.399 --> 01:32:09.520 And by the way, it's amazing to me how many of these are out 1135 01:32:09.520 --> 01:32:13.960 there. And as they say that February is one of the worst months because 1136 01:32:13.960 --> 01:32:17.560 people are desperate to find someone. And do you know a vast majority of 1137 01:32:17.600 --> 01:32:28.279 people actually dread Valentine's Day because there is such an emphasis on love and companionship 1138 01:32:28.319 --> 01:32:31.119 and there are so many, uh so many lonely people. It's kind of 1139 01:32:31.159 --> 01:32:35.439 sad. Three oh three seven one three talks seven one three eight two five 1140 01:32:35.520 --> 01:32:40.079 five. By the way, Ideal home Loans still doing home loans and one 1141 01:32:40.159 --> 01:32:43.439 difference. They have the interest rate guarantee, so when rates go down or 1142 01:32:43.439 --> 01:32:46.960 if they go down, you get financed refinanced free of charge. Ideal Home 1143 01:32:46.960 --> 01:32:56.079 Loans dot Com three oh three eight six seven seven thousand. Go with a 1144 01:32:56.119 --> 01:33:00.479 sure thing Denver's best roofer Excel Roofing dot com. You don't pay a cent 1145 01:33:00.680 --> 01:33:08.199 until you're content. Time for an insurance check up free, no obligation comparison 1146 01:33:08.319 --> 01:33:13.399 call Compass Insurance paying too much your coverage at dozens of insurance companies find out 1147 01:33:13.439 --> 01:33:15.960 now three all three seven seven to one help. You'll think you're his only 1148 01:33:16.079 --> 01:33:19.880 customer when you choose Frank durand the real estate Man dot com to list your 1149 01:33:19.920 --> 01:33:30.520 home with Remax Alliance three all three nine two zero sixteen twenty two. Hi 1150 01:33:30.680 --> 01:33:36.239 Tom Martino here three oh three seven one three talk seven one three eight two 1151 01:33:36.399 --> 01:33:45.560 five five. Eric, We have somebody who wants to know how long do 1152 01:33:45.640 --> 01:33:54.000 they have to start an IRA or a STEP or a wroth. Can they 1153 01:33:54.039 --> 01:33:59.680 do it after the first until they filed? Is that open for that right 1154 01:33:59.720 --> 01:34:01.800 now? Can you still do it? You can do an IRA, but 1155 01:34:02.000 --> 01:34:05.680 for an SEP, you're supposed to have it funded by the end of the 1156 01:34:05.760 --> 01:34:09.479 year, or at least open by the end of the year. Okay, 1157 01:34:09.520 --> 01:34:13.920 So you can't do that retroactively, right, but you can do a SEP. 1158 01:34:14.000 --> 01:34:16.199 Can you do an ira? You can do an ira? Now what 1159 01:34:16.520 --> 01:34:21.119 somebody else wants to know? The contribution limit for an IRA, that's I 1160 01:34:21.159 --> 01:34:28.840 believe it's seven thousand dollars and one thousand dollars add on if you're fifty years 1161 01:34:28.840 --> 01:34:33.119 old. That's only with income limits, right the IRA. Sure, that's 1162 01:34:33.279 --> 01:34:38.880 that's right. There are income limits to the phase out the more you make, 1163 01:34:39.720 --> 01:34:45.880 right okay. And then once you establish that, that grows tax deferred. 1164 01:34:48.000 --> 01:34:53.239 When you're talking about traditional or roth an ira, a regular ira, 1165 01:34:53.560 --> 01:34:56.880 a regular ira, it grows, but then when you take it out, 1166 01:34:56.920 --> 01:35:01.359 it's taxable, right right, Yeah, So are you finding more people opting 1167 01:35:01.439 --> 01:35:06.880 for the iras or the wroth I rays? Right now? The conventional or 1168 01:35:06.920 --> 01:35:12.439 the wroth The majority of our clients are going for traditional because they're still eager 1169 01:35:12.439 --> 01:35:16.239 for those current tax deductions. Okay, it's just what most folks are doing, 1170 01:35:16.520 --> 01:35:20.239 all right. Three oh three seven one three talks seven one three eight 1171 01:35:20.279 --> 01:35:26.600 two five five. And when it comes to owing and they file again, 1172 01:35:26.680 --> 01:35:29.880 we've we of course, we have this discussion all the time with Larsen. 1173 01:35:30.119 --> 01:35:34.680 Can you establish an installment plan on your own? Do you send in a 1174 01:35:34.720 --> 01:35:40.359 payment? What do you do when you file and you owe? As a 1175 01:35:40.399 --> 01:35:44.920 matter of fact, now there's the IRS is very ledient on getting these installment 1176 01:35:45.079 --> 01:35:49.680 agreements going. You can actually file with your tax return requesting an installment agreement 1177 01:35:49.840 --> 01:35:55.000 up to five years. And how do they do that? Do they charge 1178 01:35:55.039 --> 01:35:58.359 the going rate of interest or what? How do they do an installment agreement? 1179 01:35:58.720 --> 01:36:01.880 They'll do it and they'll just charge you whatever the going interest rate is 1180 01:36:01.960 --> 01:36:05.159 and that changes for month to month. Right now, seven or eight percent 1181 01:36:05.640 --> 01:36:11.479 per year, perpetually, depending on whatever amount of money, just like just 1182 01:36:11.520 --> 01:36:15.199 like any You can get it up to five years. They'll give you up 1183 01:36:15.199 --> 01:36:18.760 to five years. You'll pay for it, you'll pay interest. But who 1184 01:36:18.800 --> 01:36:24.279 wants to it just depends do you really need a seven or eight percent interest 1185 01:36:24.399 --> 01:36:28.760 loan or not? It depends on your circumstances. Well, it's better than 1186 01:36:28.800 --> 01:36:30.800 a credit card or something like that. That's true, it'll it'll be a 1187 01:36:30.800 --> 01:36:35.000 credit card loan. But it's just kind of difficult to be borrowing money from 1188 01:36:35.039 --> 01:36:43.359 the IRS to fund yourself. And as far as installments do a lot of 1189 01:36:43.359 --> 01:36:45.279 people. Are there a lot of people percentage wise? Do you think that 1190 01:36:45.479 --> 01:36:49.840 go for installments? Probably? I bet it's less than ten percent, maybe 1191 01:36:49.880 --> 01:36:55.000 five percent. Most people just pay their taxes and move on year by year 1192 01:36:55.399 --> 01:36:59.359 or they've had enough with hell. I think the most people have problems are 1193 01:36:59.359 --> 01:37:03.039 the ones that don't withhold. I think it's self employed, in employed individuals, 1194 01:37:03.159 --> 01:37:09.000 or sometimes we've seen people they underestimate with their W two. They'll tell 1195 01:37:09.039 --> 01:37:13.399 their employer, give me nine exemptions because I don't want to have money withheld, 1196 01:37:13.800 --> 01:37:16.119 So they get themselves in a jam when they go to father taxes. 1197 01:37:16.319 --> 01:37:19.920 And is the law still the same on that you can take as many exemptions 1198 01:37:19.960 --> 01:37:24.439 as you want. You can report whatever you want. It's not depending on 1199 01:37:24.479 --> 01:37:28.720 how many kids you have. You can literally tell your HR department, I 1200 01:37:28.800 --> 01:37:33.239 want eight exemptions because I've got these other deductions going right. But then if 1201 01:37:33.279 --> 01:37:36.359 you underestimate, you not only end up having to pay, but you could 1202 01:37:36.479 --> 01:37:41.399 end up with a penalty even if you're even if you're a W two employee. 1203 01:37:41.560 --> 01:37:44.279 You bet you know what you know what tries to me crazy guys. 1204 01:37:44.680 --> 01:37:48.640 So the government, even though the taxes aren't due till April fifteenth. I'm 1205 01:37:48.680 --> 01:37:54.640 just taking individuals, not corporations. But it's amazing to me that you have 1206 01:37:54.720 --> 01:37:58.600 to pay quarterly. It's amazing to me if you get paid every two weeks 1207 01:37:58.600 --> 01:38:03.239 you have to pay tax is the second week of January twenty twenty three for 1208 01:38:03.359 --> 01:38:09.039 a tax bill that's not due till April fifteenth of twenty twenty four. But 1209 01:38:09.880 --> 01:38:14.199 if you don't pay quarterly, this would never go down with most individuals. 1210 01:38:14.399 --> 01:38:16.920 But if you don't go quarterly, Eric, you really don't pay that much 1211 01:38:17.279 --> 01:38:21.239 in penalties. I mean, let's say let's say you owe four hundred thousand 1212 01:38:21.319 --> 01:38:27.079 in taxes. That penalty for that four hundred thousand dollars for not paying it 1213 01:38:27.119 --> 01:38:30.319 throughout the year, but paying it on time on April fifteenth is only a 1214 01:38:30.359 --> 01:38:33.880 few grand isn't that correct? Well? Yeah, that is a good thing 1215 01:38:33.880 --> 01:38:38.640 to talk about. Hold on because people, that's exactly I just got a 1216 01:38:38.640 --> 01:38:42.960 text on that is, if I don't file quarterly and just pay my tax, 1217 01:38:43.520 --> 01:38:45.920 what are the worst consequences. We'll talk about that coming up. I'm 1218 01:38:45.960 --> 01:38:58.880 Tom Martino go with a sure thing, Denver's Best roofer Excel Roofing dot com. 1219 01:38:58.920 --> 01:39:04.520 You don't pay a cent till you're content. Time for an insurance check 1220 01:39:04.600 --> 01:39:09.880 up free, no obligation. In comparison, call Compass Insurance paying too much 1221 01:39:10.000 --> 01:39:14.279 your coverage at dozens of insurance companies find out now three all three seven seven 1222 01:39:14.279 --> 01:39:17.039 to one help. You'll think you're his only customer when you choose Frank durand 1223 01:39:17.039 --> 01:39:21.479 the real estate Man dot com to list your home with Remax Alliance three all 1224 01:39:21.520 --> 01:39:31.159 three nine two zero sixteen twenty two. Hi Tom Martino here three O three 1225 01:39:31.239 --> 01:39:36.000 seven one three talks seven one three A two five five. Waterpros dot net 1226 01:39:36.000 --> 01:39:40.439 will get you the best water systems at the lowest prices. Whole House Filter 1227 01:39:40.520 --> 01:39:44.199 is starting at twelve hundred bucks to get out Forever chemicals. Please don't take 1228 01:39:44.279 --> 01:39:48.720 chances water Pros three oh three eight six two five five five four. So 1229 01:39:48.800 --> 01:39:53.760 we're talking taxes. We have another hour to go, and when we talk 1230 01:39:53.880 --> 01:39:57.039 taxes, it's really important that you do the right planning. And of course, 1231 01:39:57.680 --> 01:40:00.279 many of the things you can do before April five fifteenth, including funding 1232 01:40:00.319 --> 01:40:04.840 an IRA or a set, but not a step an IRA, but here's 1233 01:40:04.880 --> 01:40:12.479 the deal or a wroth. You need to now start looking forward for the 1234 01:40:12.520 --> 01:40:17.720 following year. And again people want to know worst case scenario. If they 1235 01:40:17.920 --> 01:40:26.119 don't pay quarterly, if they're self employed or whatever, and they just pay 1236 01:40:26.159 --> 01:40:30.159 before April fifteenth, what's worst case scenario. Let's say you owe you're self 1237 01:40:30.239 --> 01:40:35.920 employed and you're doing all okay, you owe thirty thousand and forty thousand. 1238 01:40:36.039 --> 01:40:43.479 How much more would you owe percentage wise? If you're not paying in fifteen, 1239 01:40:44.000 --> 01:40:48.399 ten or fifteen percent? That's worst case scenario. The worst case scenario 1240 01:40:48.960 --> 01:40:54.000 is if you don't file on time, you can get to file on time, 1241 01:40:54.039 --> 01:40:58.199 meaning what file on time? It means the April fifteenth, file on 1242 01:40:58.239 --> 01:41:01.000 time April fifteenth, or the worst most cases, you can file to extend 1243 01:41:01.039 --> 01:41:06.520 your return out to October fifteenth. Some people don't even pay by October fifteen, 1244 01:41:08.079 --> 01:41:11.399 and what kicks in is a five percent per month. No, we're 1245 01:41:11.399 --> 01:41:15.720 not talking about that now. Let's talk about let's talk about self employed making 1246 01:41:15.840 --> 01:41:21.079 no estimated payments at all. You're outside of safe harbor totally. You owe 1247 01:41:23.159 --> 01:41:28.920 thirty How much more than thirty would you owe? Ten to fifteen percent? 1248 01:41:29.079 --> 01:41:33.840 Okay? So is that worth it? Mark? That puts you in a 1249 01:41:33.880 --> 01:41:39.560 in almost another tax bracket. I mean because you said it's not that bad. 1250 01:41:39.640 --> 01:41:43.920 But go with a sure thing Denver's Best roofer Excel Roofing dot com. 1251 01:41:43.960 --> 01:41:49.800 You don't pay a cent until you're content. Wait time for an insurance checkup 1252 01:41:49.840 --> 01:41:55.239 free, no obligation. In comparison, call Compass Insurance paying too much your 1253 01:41:55.239 --> 01:41:59.039 coverage at dozens of insurance companies find out now three oh three, seven to 1254 01:41:59.079 --> 01:42:01.720 seven to one help. You'll think you're his only customer when you choose Frank 1255 01:42:01.800 --> 01:42:06.399 durand the real estate Man dot com to list your home with Remax Alliance three 1256 01:42:06.399 --> 01:42:18.600 all three nine two zero sixteen twenty two. Yeah, Rip News need advice 1257 01:42:18.680 --> 01:42:26.920 so you don't have come running sious As fast as we can, show Shooter's 1258 01:42:27.000 --> 01:42:33.039 gonna help. Come man, this is the Troubleshooter Show. No Tom Martino, 1259 01:42:34.079 --> 01:42:38.319 Hi, Tom Martino here, Welcome to the show. Let's talk. 1260 01:42:38.359 --> 01:42:40.760 We got a final hour going. Get your calls in. If you have 1261 01:42:40.840 --> 01:42:44.720 problems, question, complaints, anything you want to talk about. We're here 1262 01:42:44.760 --> 01:42:49.399 to talk about it and to help you, including great sponsors like Denver Regen 1263 01:42:49.520 --> 01:42:55.640 dot com. Now I'm gonna tell you the weight loss uh rage. Denver 1264 01:42:55.720 --> 01:42:59.119 Regen is supplying for just two hundred and fifty bucks a month. It's incredible. 1265 01:42:59.800 --> 01:43:03.000 The lowest fresh you're going to get the brand names Ozapikyogovi twelve hundred or 1266 01:43:03.039 --> 01:43:08.960 more a month. And they're doing it with injection supplies, doctors, consultations, 1267 01:43:09.039 --> 01:43:12.520 everything, all in two hundred and fifty dollars a month. Denverregen dot 1268 01:43:12.520 --> 01:43:15.520 com. As always checked with your doctor before embarking on any weight loss. 1269 01:43:15.800 --> 01:43:23.439 But it's the Semiglue Tide, genuine compounded Denverregen dot com. Now Albert's got 1270 01:43:23.479 --> 01:43:27.720 a real estate question. Albert, welcome, you're on the air. What's 1271 01:43:27.760 --> 01:43:31.520 going on with hey Man? Good? Uh? A couple of years ago, 1272 01:43:31.520 --> 01:43:35.520 I got in trouble with a virus truck and I was behind, so 1273 01:43:35.640 --> 01:43:41.800 they put it's a mortgage question. They put the payments about a year behind 1274 01:43:42.000 --> 01:43:45.399 the mortgage. I didn't know it was a balloon. So now they want 1275 01:43:45.560 --> 01:43:48.239 twenty two thousand in cash and I can't find Wow, wait a minute, 1276 01:43:48.560 --> 01:43:55.279 was this during Was this during COVID? Yes? And so you took a 1277 01:43:55.359 --> 01:43:59.279 deferment program, right, I didn't know it was a blue I didn't know 1278 01:43:59.319 --> 01:44:01.600 I had to pay the whole thing back, so I only owe twenty two 1279 01:44:01.640 --> 01:44:05.640 thousand in the house. And the question is, now, wait a minute, 1280 01:44:05.720 --> 01:44:10.880 then you only what is your loan balance in general, your whole loan 1281 01:44:10.920 --> 01:44:15.079 balance, the balloon, just the balloon twenty two and change. That's all 1282 01:44:15.159 --> 01:44:19.039 you owe on the whole house. Correct, I don't get it. When 1283 01:44:19.079 --> 01:44:26.680 you took the deferment, your balance was how much? Oh what I could 1284 01:44:26.720 --> 01:44:30.680 deverment about one hundred and eighty. But I had another house. I sold 1285 01:44:30.720 --> 01:44:35.319 the house, so I paid everything off on both houses and the cars and 1286 01:44:35.359 --> 01:44:40.880 all that good stuff. Oh no, And then you got to notice saying, 1287 01:44:40.960 --> 01:44:45.199 wait a minute, you still owe some money. Correct? Got to 1288 01:44:45.399 --> 01:44:47.600 know that, Well, where did you think? Where did you think that 1289 01:44:47.680 --> 01:44:51.600 money was going? Or where did you think? What did you think was 1290 01:44:51.640 --> 01:44:59.960 happening to your payment when you took the deferment. I didn't pay nothing because 1291 01:45:00.000 --> 01:45:01.479 I didn't have a job by the time. But I get it. But 1292 01:45:01.560 --> 01:45:05.680 where did you What did you think? I'm asking you now there's no correct 1293 01:45:05.720 --> 01:45:11.000 answer. What did you think was happening to the payments you were missing? 1294 01:45:12.439 --> 01:45:16.640 I was gonnau. They were just going to keep giving me mortgage payments until 1295 01:45:16.640 --> 01:45:20.439 I paid it twenty two. I thought it was just going to keep going, 1296 01:45:20.960 --> 01:45:25.079 say, thirteen hundred a month, I said, of they want to 1297 01:45:25.119 --> 01:45:30.039 lump some of twenty two thousand years. So you thought that after the deferment 1298 01:45:30.119 --> 01:45:34.840 program you would pick up your normal payments and the balance we'd be put at 1299 01:45:34.840 --> 01:45:39.560 the end of the loan. Right? Did it put it at the end 1300 01:45:39.560 --> 01:45:42.279 of the loan? And then I thought I was just going to keep paying. 1301 01:45:42.399 --> 01:45:46.840 Did you sign anything when you did this deferment? Yes, but I 1302 01:45:46.840 --> 01:45:53.479 didn't know it was a balloon. Okay. So if you already paid off 1303 01:45:53.520 --> 01:45:58.199 the house and they came back to you saying you owe another twenty two, 1304 01:45:59.720 --> 01:46:05.640 when what does it do in a march? You should be able. You 1305 01:46:05.680 --> 01:46:11.359 should be able to get that standing on your head. No, I know 1306 01:46:11.560 --> 01:46:14.880 I can't. I got it. You have a house completely paid for that 1307 01:46:14.920 --> 01:46:19.039 you only need twenty two thousand on correct, And I don't have the credit. 1308 01:46:19.119 --> 01:46:23.960 I've tried through two or three different places. They've denied me. What 1309 01:46:24.239 --> 01:46:27.000 the question is is what I'm asking you, and then they don't. They 1310 01:46:27.039 --> 01:46:30.680 want to help to refinance, but they don't do twenty two. They want 1311 01:46:30.680 --> 01:46:33.720 me to borrow sixty and I don't know. I get it, man, 1312 01:46:34.119 --> 01:46:38.920 I get it. I totally get it. Twenty two is too small? 1313 01:46:38.960 --> 01:46:41.479 But how old are you? Right, Albert? How old are you? 1314 01:46:42.920 --> 01:46:49.560 Sixty two? Okay? Question is the question is tom your experience on that? 1315 01:46:50.199 --> 01:46:54.680 If I can save it for eight or nine months, you see, 1316 01:46:54.720 --> 01:46:58.920 that's enough time. They won't for clothes on my house. No, they'll 1317 01:46:58.960 --> 01:47:02.239 for clothes. They'll fore close because there's a lot of equity there. I 1318 01:47:02.279 --> 01:47:10.239 would suggest, have you thought about doing You don't need credit, hardly any 1319 01:47:10.359 --> 01:47:13.960 credit, I should say, for a reverse loan? Have you thought about 1320 01:47:13.960 --> 01:47:17.199 that? You're sixty two, you have a house that's totally paid off, 1321 01:47:17.720 --> 01:47:25.520 and all you're looking for is twenty two grand. Correct. Here's the part. 1322 01:47:26.079 --> 01:47:30.119 Listen, what can you pay a month? Man? We could pay 1323 01:47:30.159 --> 01:47:34.319 that's still the twelve hundred dollars that we've been paying. No problem, you 1324 01:47:34.359 --> 01:47:40.520 can do a reverse loan. But how long? How long do I have 1325 01:47:40.560 --> 01:47:44.439 to do? What do I have to pay that back off when I sell 1326 01:47:44.479 --> 01:47:47.279 the home? Albert? Albert? Here's how a reverse a reverse loan will 1327 01:47:47.279 --> 01:47:50.600 work anyway you want it to work, meaning this, listen carefully, okay. 1328 01:47:51.000 --> 01:47:56.159 If you want to get twenty two grand, it would be relatively easy. 1329 01:47:56.680 --> 01:48:00.760 Now, as soon as you get that twenty two grand. Normal payments 1330 01:48:00.800 --> 01:48:04.520 on that figured at about seven percent right now, maybe six and a half. 1331 01:48:05.039 --> 01:48:10.880 They will accrue against the house, So you'll owe twenty two grand, 1332 01:48:10.960 --> 01:48:13.199 and then the next month you'll owe a little more and a little more, 1333 01:48:13.199 --> 01:48:16.319 and it keeps accruing. Okay, now you have to pay your taxes and 1334 01:48:16.399 --> 01:48:21.159 insurance. But you can make payments on that reverse loan if you want. 1335 01:48:21.319 --> 01:48:26.199 You don't have to, and you can make as many payments or as much 1336 01:48:26.239 --> 01:48:30.399 as you want to keep and start paying it off. If you don't want 1337 01:48:30.439 --> 01:48:33.359 to pay for a year or two, you don't have to. However, 1338 01:48:34.199 --> 01:48:39.960 you will have some interest or cruel on it, but it's better than not 1339 01:48:40.199 --> 01:48:44.920 having the money, and you can get it paid off whenever you can get 1340 01:48:44.920 --> 01:48:49.479 it paid off you it's like any other loan. You can make advanced payments, 1341 01:48:49.600 --> 01:48:58.000 you can pay interest, you can pay whatever and pay it off if 1342 01:48:58.079 --> 01:49:01.079 your o ANDE truly is there's only twenty two thousand, and there's no weird 1343 01:49:01.159 --> 01:49:04.199 stuff. I mean, I would do a second for you on a five 1344 01:49:04.279 --> 01:49:09.359 year deal and your payment would be way less than the twelve hundred mark. 1345 01:49:09.439 --> 01:49:14.000 What would he lock do? He's not gonna qui he's not. If he 1346 01:49:14.039 --> 01:49:16.199 doesn't have credit, he's not going to get it. Okay, I can't 1347 01:49:16.239 --> 01:49:19.439 qualify. I try helock. I've tried helock. I've tried, uh, 1348 01:49:20.000 --> 01:49:27.000 equity loan. None of those work for me. None, So Mark suggesting 1349 01:49:27.119 --> 01:49:31.439 a prom excuse me, a private loan. Private loans are an option if 1350 01:49:31.479 --> 01:49:35.800 you don't get raked over the coals with rate. But no matter what, 1351 01:49:35.920 --> 01:49:40.439 a private loan would be better than a reverse loan because you're not going to 1352 01:49:40.520 --> 01:49:45.279 have interest or cruel on an interest. If you can continue making that payment, 1353 01:49:45.359 --> 01:49:51.039 then you could probably get a private loan until that's paid off. Private 1354 01:49:51.079 --> 01:49:55.239 low. Don't you need credit for that private loan? Well, it depends 1355 01:49:55.239 --> 01:50:00.640 on who the lender is. If if literally and again I I really hate 1356 01:50:00.640 --> 01:50:04.159 doing personal stuff like this on a radio show when a listener calls in. 1357 01:50:04.439 --> 01:50:10.880 But theoretically, if someone wants to loan you five grand, excuse me, 1358 01:50:10.920 --> 01:50:15.720 twenty two grand, they can decide what credit they need if they if you 1359 01:50:15.800 --> 01:50:18.920 have enough equity in the house and they figure you'd be insane not to pay 1360 01:50:18.960 --> 01:50:23.479 them, they'll just take your house. I mean that's what That's what Mark 1361 01:50:23.520 --> 01:50:27.680 and any other lenders thinking they're thinking forget you, bro. If you don't 1362 01:50:27.720 --> 01:50:30.720 pay, I don't care. If you have credit, I'll take your house. 1363 01:50:30.920 --> 01:50:34.640 What's your house worth? Did you say about four point fifty? Yeah, 1364 01:50:34.680 --> 01:50:39.680 so what moron won't give you twenty two thousand or even twenty five or 1365 01:50:39.720 --> 01:50:43.720 whatever that they're going to charge you a couple points up front. You're gonna 1366 01:50:43.760 --> 01:50:45.399 have a loan at the end. Let's say you have a loan of twenty 1367 01:50:45.399 --> 01:50:50.600 five. Who's not going to give you twenty five grand at a certain percentage 1368 01:50:50.680 --> 01:50:56.880 rate? And yeah, fact pay wouldn't be happy. They would be happy 1369 01:50:56.880 --> 01:50:59.399 if you didn't make your payment. They get payment. It's going to be 1370 01:50:59.439 --> 01:51:01.359 a lot less man. I mean, you'd be looking at around six hundred 1371 01:51:01.399 --> 01:51:06.039 a month instead of five years. But you have all paid off in five 1372 01:51:06.119 --> 01:51:10.640 years. Or you can pay it off quick. We can, we can, 1373 01:51:10.720 --> 01:51:12.880 Yeah, we can pay it off. We can pay it off at 1374 01:51:12.920 --> 01:51:16.439 two that's no problem. Well, it doesn't matter if you did get hard 1375 01:51:16.520 --> 01:51:19.039 up. I mean what I look at when I do stuff like this, 1376 01:51:19.479 --> 01:51:23.600 I don't want you to default. It's the biggest pain in the ass in 1377 01:51:23.640 --> 01:51:27.359 the world. So that's fine. If you want to make extra payments, 1378 01:51:27.399 --> 01:51:30.600 make all you want but when Christmas comes and you want to buy the grandkids 1379 01:51:30.640 --> 01:51:33.680 more stuff, you don't owe the twelve hundred a month. But if you 1380 01:51:33.720 --> 01:51:39.199 want to pay it off in one month, it doesn't matter, Albert. 1381 01:51:39.239 --> 01:51:41.760 There are a ton of people that will do that for you. Do you 1382 01:51:41.800 --> 01:51:46.079 have a retirement account? No? No, everything everything is in the house. 1383 01:51:47.239 --> 01:51:51.800 And did you say you sold another house? Yes, I've done everything, 1384 01:51:53.000 --> 01:51:56.800 Risty, I've never had I never dealt with the I didn't know how 1385 01:51:56.840 --> 01:51:59.239 to do it. Four one case. I wasn't into that. I was 1386 01:51:59.279 --> 01:52:04.680 into putting all my money into the rhythm state. I get it. So 1387 01:52:04.720 --> 01:52:11.079 the payment deferment, the payment deferment has come due. What I don't understand 1388 01:52:11.159 --> 01:52:15.800 is this, when it came time to pay your house off with the proceeds 1389 01:52:15.800 --> 01:52:20.520 from that previous house, why didn't they include that in the payoff figure. 1390 01:52:20.600 --> 01:52:25.039 I don't get it. Yeah they didn't. They didn't. I missed it 1391 01:52:25.319 --> 01:52:28.119 because it was we Wait a minute, Wait a minute, are you sure 1392 01:52:28.199 --> 01:52:33.079 they didn't when you you requested a payoff figure? Right? Correct? Of 1393 01:52:33.239 --> 01:52:38.840 the first loan, not the second loan? What's that they created a second 1394 01:52:38.880 --> 01:52:42.760 loan when they did the deferment. But they if they knew he was paying 1395 01:52:42.800 --> 01:52:45.239 it off. They should have given him a payoff figure. It was the 1396 01:52:45.319 --> 01:52:51.560 same. But the lender the O and he's going to show everything, Albert, 1397 01:52:51.720 --> 01:52:57.880 who was your lender? Yes, and they bought it off. They 1398 01:52:58.239 --> 01:53:05.279 went from home uh uh service financing to mister Cooper. Now mister Cooper has 1399 01:53:05.319 --> 01:53:11.680 a loan. Who's mister Cooper. I don't know they bought it. They 1400 01:53:11.760 --> 01:53:14.760 bought it in the some reason another day. We used to have mister Cooper's 1401 01:53:14.800 --> 01:53:17.880 big we used to have mister Cooper. Yeah, okay, they bought it 1402 01:53:17.880 --> 01:53:20.279 in the I don't know why they do that. They buy it in the 1403 01:53:20.399 --> 01:53:26.199 end with the four payments and then the balloon in the back. I only 1404 01:53:26.199 --> 01:53:30.039 had like four payments left and then in the balloon in the back. So 1405 01:53:30.079 --> 01:53:35.039 they they bought it from UH one financing. I don't tom, that's probably 1406 01:53:35.079 --> 01:53:39.840 what happened. They bought out just the first with the two payment or the 1407 01:53:39.880 --> 01:53:44.159 four payments left. They didn't buy out that other part. Yeah, but 1408 01:53:44.199 --> 01:53:46.199 they carry it. Mister Cooper has the second one. Yeah. But I 1409 01:53:46.239 --> 01:53:49.960 think they're all I'm saying is I think they're just a servicer as well. 1410 01:53:50.279 --> 01:53:55.840 It's possible they were just servicing the main loan, and then that second balloon 1411 01:53:55.920 --> 01:53:59.279 or that deferment, whatever you want to call it, was still sitting there 1412 01:54:00.319 --> 01:54:02.079 exactly because if I would have had the cash and I would have known that, 1413 01:54:02.359 --> 01:54:06.239 I would have paid the balloon. And then when did you pay off? 1414 01:54:06.279 --> 01:54:13.439 Here? When did this payoff happen? How long ago November? Why 1415 01:54:13.479 --> 01:54:18.279 did it take and when did they notify you about the second? When I 1416 01:54:18.319 --> 01:54:21.720 started paying off, when I started looking at the computer, when I started 1417 01:54:21.720 --> 01:54:29.319 seeing the payoffs, and one time it popped up twenty two and change in 1418 01:54:29.399 --> 01:54:30.880 the back of it, and I said, what when is this? And 1419 01:54:30.920 --> 01:54:33.800 so I called? They told me, no, that was the firm that 1420 01:54:33.840 --> 01:54:39.239 you did years ago, but we needed cash and they won't work with me 1421 01:54:39.319 --> 01:54:42.119 because they want they want me to refinance. Said, I'm not gonna do. 1422 01:54:42.239 --> 01:54:46.000 I'm not going to pay closing dolls and borrow sixty thousand. Then I 1423 01:54:46.000 --> 01:54:49.359 got to give them forty thousand back because I don't need it. I just 1424 01:54:49.399 --> 01:54:53.760 want to get rid of this twenty two. So I figured maybe I can 1425 01:54:54.000 --> 01:54:58.960 save in six months. And sometimes I've heard that four closures take more than 1426 01:54:59.000 --> 01:55:00.800 six months or eight months. No, no, no, no, you 1427 01:55:00.880 --> 01:55:02.920 never want that you don't want that to go on, No, because then 1428 01:55:02.920 --> 01:55:06.119 you're gonna have legal fees and all of that, so it'll be more than 1429 01:55:06.199 --> 01:55:11.800 your closing costs on a new loan. Oh really okay, Yeah, you 1430 01:55:11.880 --> 01:55:15.399 don't want to do How do I get a hold of you know, you 1431 01:55:15.439 --> 01:55:18.560 do a Google searching, twenty thousand things come up, private scams, all 1432 01:55:18.640 --> 01:55:21.079 kinds of well listen, listen, Well I could get ahold of Mark. 1433 01:55:21.560 --> 01:55:26.960 Yeah, he wanted to do a private loan. But just just be careful, 1434 01:55:26.960 --> 01:55:30.039 okay, And I want you to get advice from somebody outside of this 1435 01:55:30.079 --> 01:55:33.319 show, please, Like I said that, you know, people don't call 1436 01:55:33.359 --> 01:55:38.479 here to uh we don't. We don't make money off of callers. That's 1437 01:55:38.520 --> 01:55:41.600 not our reason to be here. But he was offering it. Just do 1438 01:55:41.720 --> 01:55:45.600 that privately away from me. Just you you figure that out. Again, 1439 01:55:45.960 --> 01:55:50.760 there might be other people who are willing to loan you money as well at 1440 01:55:50.840 --> 01:55:56.000 better rates. You should shop around if if you're looking for a private loan, 1441 01:55:56.319 --> 01:56:00.960 But I warn you of this. Most private lenders are going to try 1442 01:56:00.000 --> 01:56:02.800 to take advantage if you. Okay, not Mark, but most will, 1443 01:56:02.960 --> 01:56:08.079 so be really careful. But again, I just wanted to give you that 1444 01:56:08.119 --> 01:56:17.680 caution three oh three seven one three eight two five five Go with a sure 1445 01:56:17.760 --> 01:56:23.279 thing Denver's best roofer Excel Roofing dot com. You don't pay a cent until 1446 01:56:23.319 --> 01:56:29.840 you're content. Time for an insurance check up free, no obligation. In 1447 01:56:29.920 --> 01:56:34.199 comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies 1448 01:56:34.279 --> 01:56:38.279 find out now three all three seven to seven to one. Help. You'll 1449 01:56:38.319 --> 01:56:42.159 think you're his only customer when you choose Frank durand the real estate Man dot 1450 01:56:42.159 --> 01:56:45.880 com to list your home with Remax Alliance three oh three nine two zero sixteen 1451 01:56:45.960 --> 01:56:54.199 twenty two. Hi Tom Martino, you're troubleshooter. Three oh three seven one 1452 01:56:54.279 --> 01:57:00.800 three eight two five five. Eric reinimers with us from uh Atlas, CPAs 1453 01:57:00.840 --> 01:57:08.560 and financial advisors. And we're talking about taxes, finances, consumer problems, 1454 01:57:08.640 --> 01:57:15.439 questions, complaints, and so let's talk about something else I wanted to bring 1455 01:57:15.520 --> 01:57:24.319 up. Did you know that Denver has an app out? It's a snitch 1456 01:57:24.359 --> 01:57:27.199 app. Now, I don't know if they call it a snitch app. 1457 01:57:27.239 --> 01:57:30.439 That's what I call it. Have you heard about it? It's the Denver 1458 01:57:31.000 --> 01:57:36.239 the Downtown Denver Business Improvement district. And do you know what the purpose of 1459 01:57:36.279 --> 01:57:43.000 this app is? It's an app where residents or people visiting downtown can take 1460 01:57:43.079 --> 01:57:51.600 pictures of things that don't seem right, and it reports it automatically to authorities. 1461 01:57:53.239 --> 01:57:58.399 Have you heard about this app? No? It sounds stupid and it's 1462 01:57:58.439 --> 01:58:02.079 for real now in the first I bet if you take a picture of someone's 1463 01:58:02.119 --> 01:58:10.880 shoplift and nothing happens right right? Probably now, The city's finance department says 1464 01:58:10.960 --> 01:58:19.359 that they have a ton of reports and it's in conjunction with safety, housing, 1465 01:58:19.560 --> 01:58:28.000 education, and homelessness. So I'm not sure it's supposed to be for 1466 01:58:28.159 --> 01:58:30.760 safety and housing. I don't get it, though. I don't get what 1467 01:58:30.800 --> 01:58:34.119 you're supposed to see that they want to know about. See, that's the 1468 01:58:34.159 --> 01:58:43.680 part I don't understand. But it's also an adjunct to the Yellow Vest Ambassador 1469 01:58:43.720 --> 01:58:45.079 program. Do you know about that? Mark? See, you haven't been 1470 01:58:45.119 --> 01:58:49.920 downtown recently, have you? No? Man, it's I'm gonna tell you, 1471 01:58:49.920 --> 01:58:53.760 Okay, I'm going to tell you something. The six String Street mall 1472 01:58:53.880 --> 01:58:59.119 is dead. Do you remember how vibrant and wonderful that was working around to 1473 01:58:59.119 --> 01:59:02.479 stay down? There was zand during the summer and stopping for lunch and coffee, 1474 01:59:02.520 --> 01:59:08.159 and it was it's all man, Okay, So many places are boarded 1475 01:59:08.239 --> 01:59:13.560 up and gone and the people and how about stuff like the Brown Palace. 1476 01:59:13.680 --> 01:59:16.000 Is it still there and open or is it like a homeless shelter? Now, 1477 01:59:16.600 --> 01:59:19.279 no, it's there, but you know it's it's a it's a like 1478 01:59:19.359 --> 01:59:24.039 an oasis. I mean, you know it's but but if you go to 1479 01:59:24.079 --> 01:59:28.039 the Sixteenth Street Mall, a lot of the businesses are boarded up, windows 1480 01:59:28.079 --> 01:59:32.000 are broken, people are hanging all over. It's nothing, nothing like it 1481 01:59:32.079 --> 01:59:40.279 used to be. Nothing. And there's elsewhere downtown there's encampments all over it. 1482 01:59:40.279 --> 01:59:45.520 It's it's shocking. I mean, it really is shocking what has happened. 1483 01:59:45.079 --> 01:59:47.720 And I'm just gonna there's you know, hey, Tom, you know 1484 01:59:47.760 --> 01:59:55.359 what being in New Yorker Times Square was like that under democratic administrations. But 1485 01:59:55.479 --> 02:00:00.880 then when you got Maya Koch and Julie Juliani, it became a clean, 1486 02:00:01.239 --> 02:00:05.199 booming place. Now when they just went in and got out of all this 1487 02:00:05.880 --> 02:00:11.000 the you know, the pornography and the but now but okay, but it's 1488 02:00:11.359 --> 02:00:15.000 it's now back to Democrat control. So what's the excuse, Because it was. 1489 02:00:15.119 --> 02:00:19.199 It was such a tourist attraction that there's no room for any of these 1490 02:00:19.239 --> 02:00:24.920 sleazy places. They can't afford the rent and the place is always crowded, 1491 02:00:25.159 --> 02:00:29.800 so there's much less crime going on. But what you don't penalize people for 1492 02:00:29.920 --> 02:00:32.640 committing a crime, They're just going to commit more crimes. It's the dumbest 1493 02:00:32.640 --> 02:00:38.479 thing anybody's ever thought of. No, Mark, it's kind. He didn't 1494 02:00:38.520 --> 02:00:40.840 call it. Whatever you want, look at Look at what's happened to our 1495 02:00:40.840 --> 02:00:45.079 city since they've done it. Look what's happened to California like every city. 1496 02:00:46.079 --> 02:00:49.880 You know, Mayor Web let's talk about homeless real quick. Mayor Web was 1497 02:00:49.920 --> 02:00:54.800 a Democrat. You know what he would do with the homeless? Does anybody 1498 02:00:54.840 --> 02:00:59.800 know? No, he'd get him one way bus tickets to California, that's 1499 02:00:59.800 --> 02:01:06.319 no Joe did he did? He used to do that. Now, by 1500 02:01:06.359 --> 02:01:11.479 the way, speaking of cities and thriving cities and all that, do you 1501 02:01:11.520 --> 02:01:18.840 know, actually someone someone took a survey of personal growth. Now, now, 1502 02:01:19.039 --> 02:01:26.319 don't don't get me going, okay, a survey on personal growth to 1503 02:01:26.479 --> 02:01:41.239 see where most personal growth and advancement has taken place. And they've done it 1504 02:01:41.359 --> 02:01:50.840 based on yoga, exercise, healthcare, a mental health, all kinds of 1505 02:01:51.319 --> 02:01:58.199 a matrix on where they feel, oh, education, where the best personal 1506 02:01:58.319 --> 02:02:05.000 growth has taken place? Hm? Hmmm, where do you think the most 1507 02:02:05.039 --> 02:02:10.560 personal growth has taken place? According to this survey? I don't understand what 1508 02:02:10.640 --> 02:02:14.359 you mean by personal growth? Okay, well I did, didn't. I 1509 02:02:14.479 --> 02:02:23.079 just tell you. I just told you yoga, an exercise, and and 1510 02:02:23.079 --> 02:02:29.279 and self improvement programs and uh, all of that. I mean, it's 1511 02:02:29.319 --> 02:02:32.600 a it's a whole matrix of stuff overall. They they went by, uh, 1512 02:02:32.880 --> 02:02:42.760 the gyms, the fitness, the hell even beliefs and uh like security, 1513 02:02:42.840 --> 02:02:47.079 financials. None of that, None of that is personal, Tom. 1514 02:02:47.119 --> 02:02:53.960 What's that? Are the cities or states? States? College up there? 1515 02:02:54.359 --> 02:02:58.399 The number one California. Well, let's let's just go to the lowest. 1516 02:02:58.680 --> 02:03:05.199 Let's just go right there, the lowest miss Nebraska, ooh, and next 1517 02:03:05.840 --> 02:03:10.159 West Virginia. These are the lowest. I went from the lowest to the 1518 02:03:10.199 --> 02:03:14.159 next lowest. Then Maine, Indiana, Michigan, Pennsylvania. These are people 1519 02:03:14.239 --> 02:03:20.560 with no growth Idaho, Nevada. But who is in survey? Washington State, 1520 02:03:20.600 --> 02:03:24.520 Ohio, Iowa, North Carolina, Massachuset. Okay, you want to 1521 02:03:24.560 --> 02:03:30.880 hear the biggest growth areas the number one Georgia, next New Jersey, then 1522 02:03:30.920 --> 02:03:35.000 Mississippi. Now this has no rhyme or reason as far as politics go, 1523 02:03:35.119 --> 02:03:39.800 by the way, everyone wants to put a political thing on it. Connecticut's 1524 02:03:39.800 --> 02:03:43.359 next, Maryland, Alabama. These are the top in the top ten. 1525 02:03:43.920 --> 02:03:48.880 Okay, Georgia and Colorado number eight of the top ten, Arizona number nine, 1526 02:03:48.960 --> 02:03:54.279 North South Carolina number ten, So Texas right up there too. So 1527 02:03:54.399 --> 02:03:58.000 you know it's a mix of politics, by the way, But what's that 1528 02:03:58.840 --> 02:04:01.159 I gotta take a break, speaking of personal growth. If I don't take 1529 02:04:01.159 --> 02:04:04.720 a break, I don't get personal growth. Three all three, seven, 1530 02:04:04.800 --> 02:04:14.159 one, three, eight, two five five. Go with a sure thing 1531 02:04:14.279 --> 02:04:17.680 Denver's best roofer Excel Roofing dot com. You don't pay a cent until you're 1532 02:04:17.720 --> 02:04:25.720 content. Time for an insurance check up free, no obligation. In comparison, 1533 02:04:25.840 --> 02:04:30.720 call Compass Insurance paying too much your coverage at dozens of insurance companies find 1534 02:04:30.720 --> 02:04:32.920 out now three all three, seven to seven to one help You'll think you're 1535 02:04:32.960 --> 02:04:36.760 his only customer. When you choose Frank durand the real estate Man dot com 1536 02:04:36.760 --> 02:04:42.439 to list your home with Remax alliance three all three nine two zero sixteen twenty 1537 02:04:42.479 --> 02:04:51.000 two. Hi Tom Martino here three oh three seven one three talk seven one 1538 02:04:51.039 --> 02:04:56.680 three eight two five five. Somebody wants to know about ten ninety nine matching. 1539 02:04:57.960 --> 02:05:00.960 What are the chances if you get a ten ninety nine the IRS is 1540 02:05:00.960 --> 02:05:03.960 going to ask about it if you don't report the income. Eric Reinemer ATLAS 1541 02:05:03.960 --> 02:05:09.479 CPAs and Public and Financial Advisors, what do you think. I think it's 1542 02:05:09.600 --> 02:05:13.159 really likely you'll get a letter back, because that's the only thing they know 1543 02:05:13.199 --> 02:05:15.800 how to track really well, is to they do it really well because this 1544 02:05:15.920 --> 02:05:19.840 computer generator doesn't need a human being. It's just Eric. I gave this 1545 02:05:19.960 --> 02:05:27.000 example before I'm going to give it now. I had some various income streams 1546 02:05:27.039 --> 02:05:30.000 from royalties, gas and oil royalties. Not that much, but there's a 1547 02:05:30.319 --> 02:05:33.079 there are a ton of them, right. I used to try to be 1548 02:05:33.159 --> 02:05:38.800 conscientious and when I got checks, I would track them on an Excel spreadsheet 1549 02:05:38.800 --> 02:05:42.159 and give them to you, and then you would you would count them as 1550 02:05:42.199 --> 02:05:45.520 income. That's what I used to do. Then I'd give you a handful 1551 02:05:45.560 --> 02:05:48.680 of ten ninety nine. But the main track I kept track of was on 1552 02:05:48.720 --> 02:05:55.119 my Excel sheet and there were honest to god checks that I got on that 1553 02:05:55.239 --> 02:05:59.520 Excel sheet that did not show up in ten ninety nine. I don't know 1554 02:05:59.560 --> 02:06:02.119 why. I don't know why never got a ten ninet nine. Then there 1555 02:06:02.119 --> 02:06:09.159 were others that I you know, I got ten ninety nine for that weren't 1556 02:06:09.199 --> 02:06:14.199 on my sheet. Okay, I got so tired of reporting what but was 1557 02:06:14.319 --> 02:06:18.359 accurate income being flagged by the IRS. Remember, get a letter saying where's 1558 02:06:18.399 --> 02:06:23.239 this show up? And I say, it's in my overall earnings. Okay, 1559 02:06:23.800 --> 02:06:26.079 I stop doing that. I don't know if you noticed, but I 1560 02:06:26.079 --> 02:06:29.600 stopped giving you a spreadsheet and all I do is give you the ten ninety 1561 02:06:29.640 --> 02:06:34.560 nine. So really, there are some that I don't get ten ninety nine 1562 02:06:34.600 --> 02:06:38.039 for, but I'm not reporting them. And I'll tell you why, because 1563 02:06:38.279 --> 02:06:45.279 the IRS has more problems with you not matching ten ninety nins than reporting accurately. 1564 02:06:45.720 --> 02:06:48.920 Does that make sense? I mean, why do some companies not send 1565 02:06:48.920 --> 02:06:54.439 out ten ninety nine when they're supposed to? Do? You know? They're 1566 02:06:54.520 --> 02:06:58.119 just maybe lacks. I'll guarantee you that if I take my ten ninety nine 1567 02:06:58.560 --> 02:07:01.760 from Gas and Oil rows and add them up, they're going to be less 1568 02:07:01.800 --> 02:07:05.520 than the actual checks I actually got, Eric, when are you supposed to 1569 02:07:05.640 --> 02:07:11.359 actually so I spend a lot of money with example, iHeart, Am I 1570 02:07:11.439 --> 02:07:15.520 supposed to send iHeart a ten ninety nine? That's always been confusing Mark out 1571 02:07:15.760 --> 02:07:18.880 if I'm even a ten ninety nine? Yeah? How about if you go 1572 02:07:18.920 --> 02:07:23.640 out to the same damn restaurant and write it off every day, and you 1573 02:07:23.720 --> 02:07:27.640 spend fifty thousand dollars with a restaurant, do you give them a ten ninety 1574 02:07:27.720 --> 02:07:32.279 nine? What watch the rule? What like? I'll some of my sponsors 1575 02:07:32.319 --> 02:07:35.680 actually send it ten ninety nine. I think I don't work for them. 1576 02:07:35.840 --> 02:07:41.359 I mean, I'm a company. What do you send a ten? As 1577 02:07:41.399 --> 02:07:44.880 Mark said, do you send it ten ninety nine to every vendor you deal 1578 02:07:45.000 --> 02:07:49.960 with? No? The payer whoever is for a service when you uh you 1579 02:07:50.199 --> 02:07:54.920 it's when there's a service render, the payer is supposed to issue the ten 1580 02:07:55.000 --> 02:07:58.880 hundred nine. Well, okay, when somebody advertises on channel nine, do 1581 02:07:58.960 --> 02:08:03.159 they send Channel nine ten ninety nine? Of course they don't. You're exempt 1582 02:08:03.199 --> 02:08:05.880 if it's a corporation, okay, yeah, But apart from that, you're 1583 02:08:05.880 --> 02:08:11.720 supposed to send ten ninety nine if it's an individual of any kind. Yeah, 1584 02:08:11.760 --> 02:08:16.279 any entity besides the corporation. So technically, Eric, if I hire 1585 02:08:16.279 --> 02:08:20.800 a landscaper and he does ten grand worth of work, I'm supposed to hit 1586 02:08:20.880 --> 02:08:26.479 him with a ten ninety nine. Yep, unless he's a corporation. What 1587 02:08:26.560 --> 02:08:28.520 if he's a an Lkay, Well that's the whole line. What if he's 1588 02:08:28.800 --> 02:08:31.680 what if he's a sole proprietor and he has a business, do you send 1589 02:08:31.720 --> 02:08:35.439 him a ten ninety nine? Still? Yeah, Okay, go ahead, 1590 02:08:35.479 --> 02:08:39.920 Mark, I get a ten ninety nine from anybody that does business with me 1591 02:08:39.039 --> 02:08:43.159 for the most part, I end up getting a ten ninety nine. And 1592 02:08:43.199 --> 02:08:46.479 for the life now, I can't understand it. Because you're claiming the income 1593 02:08:46.640 --> 02:08:50.680 under You're claiming the income under your business. The same with me, and 1594 02:08:50.720 --> 02:08:56.079 I will have I will claim all of my income under Troubleshooter Network. Yet 1595 02:08:56.119 --> 02:09:01.079 I'll get ten ninety nine's for a lot of this up I already claimed. 1596 02:09:01.359 --> 02:09:07.159 I know. I mean it's crazy, But do you have to the ten 1597 02:09:07.239 --> 02:09:13.239 ninety nine in your in your tax return even if you're claiming the income the 1598 02:09:13.319 --> 02:09:16.479 technical ten you don't. It's just part of your record keeping. You you 1599 02:09:16.760 --> 02:09:18.760 don't. You don't file with your tone no, No, it's just part 1600 02:09:18.760 --> 02:09:24.000 of the backup and as long as you're to explained, as long as you're 1601 02:09:24.039 --> 02:09:33.239 putting more go ahead. It reminds me of something though, what this This 1602 02:09:33.359 --> 02:09:37.560 reminds me of something. This reminds me of Don Eiley. So, Tom, 1603 02:09:37.600 --> 02:09:43.680 you're saying that the government, the I r S matches this stuff up 1604 02:09:43.720 --> 02:09:48.560 so quickly. Well, somehow this guy reported zero wages to the I r 1605 02:09:48.640 --> 02:09:54.600 S for W two's for over ten years and these people were actually getting tax 1606 02:09:54.680 --> 02:10:00.840 refunds based upon fictual numbers that the company was telling. So so how did 1607 02:10:00.880 --> 02:10:05.560 they not match up the W twos on the Don Isley case for over ten 1608 02:10:05.640 --> 02:10:07.720 years when it all came dound. He was an accountant. He was an 1609 02:10:07.760 --> 02:10:13.399 accountant that would he was an accountant that would take the result withholdings from his 1610 02:10:13.560 --> 02:10:18.119 clients but not send them to the irs, claiming to the end he would 1611 02:10:18.199 --> 02:10:22.880 report that. But here's what I'm saying. He would report zero employees for 1612 02:10:22.000 --> 02:10:26.520 ABC business, so he would do zeros. He would keep the money, 1613 02:10:26.800 --> 02:10:31.000 but come the end of the year, he would create W twos for all 1614 02:10:31.039 --> 02:10:35.960 the employees whose money he stole and the company and they would actually get tax 1615 02:10:37.119 --> 02:10:43.479 refunds based upon the fictual numbers, meaning the IRS never matched up the W 1616 02:10:43.840 --> 02:10:50.439 twos to the individual Social Security number for over two ten Scott Scott hold On. 1617 02:10:50.520 --> 02:10:54.359 Scott has a question, Scott, what is your question? Yeah, 1618 02:10:54.840 --> 02:10:58.760 a quick question. If I'm going to start living on social Security and money 1619 02:10:58.760 --> 02:11:03.239 market interest, am I going to need to send in estimated tax payments? 1620 02:11:03.960 --> 02:11:09.079 Hell? No, right, isn't. Isn't what happens? Are taxes taken 1621 02:11:09.119 --> 02:11:11.760 out of Social Security or not? You get to decide whether you wouldn't take 1622 02:11:11.800 --> 02:11:15.760 them out or not. But if you only have some other interest income and 1623 02:11:15.800 --> 02:11:18.600 Social Security, you're probably not going to own any taxes. I think if 1624 02:11:18.640 --> 02:11:24.359 your income is under like twenty thousand dollars social Security, you know it's going 1625 02:11:24.439 --> 02:11:28.720 to be tax free. It's just based on your other income. Right that 1626 02:11:28.920 --> 02:11:35.359 you don't have to worry about it. I don't three seven min Well, 1627 02:11:35.399 --> 02:11:37.920 you can have taxes taken out, but if you don't have taxes do at 1628 02:11:37.960 --> 02:11:41.720 the end you get it back, right, But you can also do what 1629 02:11:41.760 --> 02:11:45.840 I do, which is not pay taxes on it and keep the money and 1630 02:11:45.880 --> 02:11:48.880 let the government get it at the end of the year. No, that's 1631 02:11:48.920 --> 02:11:52.359 what he just asked about when he'd be penalized. No, he wouldn't unless 1632 02:11:52.920 --> 02:11:56.800 there was an astronomical amount of income he had other than that. And then 1633 02:11:58.319 --> 02:12:03.000 it's like Eric said, on all your income in one big bucket. If 1634 02:12:03.039 --> 02:12:05.600 you don't pay enough tax, you get penalized. If you do pay enough, 1635 02:12:05.840 --> 02:12:11.039 you're fine. If tax is not due, you're fine. More coming 1636 02:12:11.119 --> 02:12:16.039 right up, Go with a sure thing Denver's best roofer Excel Roofing dot com. 1637 02:12:16.119 --> 02:12:22.920 You don't pay a cent until you're content. Time for an insurance checkup 1638 02:12:22.960 --> 02:12:28.359 free, no obligation. In comparison, call Compass Insurance paying too much your 1639 02:12:28.399 --> 02:12:31.439 coverage at dozens of insurance companies find out now three oh three seven to seven 1640 02:12:31.479 --> 02:12:35.239 to one help. You'll think you're his only customer when you choose Frank durand 1641 02:12:35.239 --> 02:12:39.680 the real estate Man dot com to list your home with Remax Alliance three oh 1642 02:12:39.720 --> 02:12:46.720 three nine two zero sixteen twenty two by Tom Martino, Your Troubleshooter three O 1643 02:12:46.800 --> 02:12:50.800 three seven one three talks seven one three eight two five five Uh. I 1644 02:12:50.840 --> 02:12:56.600 have a quick text on charitable contributions, so they're really I mean, unless 1645 02:12:56.640 --> 02:12:58.560 you contribute a lot, you don't get a deduction what is it a certain 1646 02:12:58.600 --> 02:13:01.920 percentage of your income? How does that work? Well, it depends on 1647 02:13:03.000 --> 02:13:05.359 if you itemize or not. Then if you itemize, then it can go 1648 02:13:05.439 --> 02:13:09.439 up to fifty percent of your income. No. No, what I'm asking 1649 02:13:09.560 --> 02:13:13.399 is, you don't even get a charitable deduction unless it's a certain unless it's 1650 02:13:13.439 --> 02:13:16.840 a certain amount of your adjusted gross. I thought like, if you make 1651 02:13:16.920 --> 02:13:20.840 did you get to write off one hundred bucks? I thought you have to 1652 02:13:20.880 --> 02:13:24.319 add them all up and they have to exceed a certain percentage of adjusted gross. 1653 02:13:24.399 --> 02:13:26.720 But a few years ago, the Iris Star letter do you take three 1654 02:13:26.800 --> 02:13:31.279 hundred dollars even if you didn't itemize? So they gave you a little bit 1655 02:13:31.319 --> 02:13:35.319 of a GIMMI where you could still take a few hundred dollars regardless of whether 1656 02:13:35.359 --> 02:13:41.199 you itemize or not. I think it was during COVID. If you itemize, 1657 02:13:41.600 --> 02:13:46.199 do you get to take very small deductions if you itemize? Yeah, 1658 02:13:46.279 --> 02:13:50.279 if you have a lot of mortgage interests and other real estate taxes, none 1659 02:13:50.560 --> 02:13:54.359 have three hundred dollars at all. No, I'm talking about charity. Charity. 1660 02:13:54.640 --> 02:13:58.199 Yeah, charity is part of the itemized deduction, right, I get 1661 02:13:58.199 --> 02:14:01.520 that. So if I do item deductions, most people do, right, 1662 02:14:01.560 --> 02:14:05.000 Most people do itemize or not? No, Now, majority of people do 1663 02:14:05.079 --> 02:14:11.199 not itemize what because they got they got rid of personal exemptions and now everybody 1664 02:14:11.199 --> 02:14:16.479 gets a free thirteen thousand dollars standard deduction A married couples twenty six thousand dollars. 1665 02:14:16.760 --> 02:14:22.479 So nobody itemizes unless you've got twenty six thousand dollars of mortgage and ten 1666 02:14:22.520 --> 02:14:28.640 thousand dollars of state taxes and charity. Most people don't. They take the 1667 02:14:28.760 --> 02:14:35.640 standard deductions, so exactly. Okay, So itemizing deductions you're talking about is 1668 02:14:35.720 --> 02:14:39.600 personal. The business always itemizes to right, That's okay, got it? 1669 02:14:39.039 --> 02:14:45.199 Can a business make charitable contributions? It can, but it flows suit of 1670 02:14:45.239 --> 02:14:48.119 your personal return anyway, Like in an escorp. It just flows though, 1671 02:14:48.199 --> 02:14:54.119 so it all goes suit of your personal tax return. A sea corp. 1672 02:14:54.159 --> 02:15:00.760 Only a sea corp takes CONTs. Salt still around you, you bet it 1673 02:15:00.840 --> 02:15:03.520 is. And that's a big deal of that ten thousand dollars limit is a 1674 02:15:03.560 --> 02:15:07.920 big issue right now. Okay, Well, we opened up a can of 1675 02:15:07.960 --> 02:15:11.399 worms and I don't even know what salt is. But anyway, we don't 1676 02:15:11.399 --> 02:15:13.319 have time to get into it right now. But thank you Mark now, 1677 02:15:13.319 --> 02:15:18.039 maybe we'll talk about that tomorrow. I'm Tom Martino. Don't forget that was 1678 02:15:18.119 --> 02:15:24.319 Atlas, Epas and Financial Advisors. Three zero three Martino, Save all your 1679 02:15:24.359 --> 02:15:26.039 problems for me.