As six figure real estate earners, when we study the financial structure of those in a higher tax bracket, we broaden our mindset on recording income.
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The fact of this specific matter is that Donald Trump had to take time away from business and that showed within his and his wife’s tax returns. Therefore, the income, gains, and losses are less stable than years passed.
As real estate professionals, we must keep up with the value of our entire portfolio throughout the year.
By properly managing pass-through entities accurately, different businesses under the umbrella corporation are able to properly record finances and assets.
Deferral of income is another great tactic for decreasing taxation.
DJT has several hundred pass-through entities. While six figure and millionaire earners may not manage as many entities, properly recording all information and documentation is essential for ease of tax return filing.
In Form 1040 in the 2017 returns, Schedule A deductions were investments in business to create more income.
Loans and debt can greatly offset - negatively or positively - the outcome of income reporting. Short and long term loans can potentially be deferred in income reporting. As seen in DJT’s tax returns, 2009 reacquisitions were deferred for five years and 2010 reacquisitions were deferred for four years.
Recognizing losses, depreciation, and loan & debt deferral as we grow in wealth causes us to enhance our outlook on documenting our wealth for tax purposes.