What’s the quickest way to learn about being a six figure earner? Learn from a millionaire! So what would happen if we learn from a multibillionaire?…
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Many high figure earners buy real estate to defer or deduct taxes or calculate property depreciation to pay less in taxes. As wholesalers, we tend to not have to be concerned about the value of property affecting our network - as we do not own the property. As we begin to earn more, our companies acquire properties as rental properties. Even if you decide to flip properties, they tend to not stay in your possession for longer than 6-8 months.
As we learn the behind-the-scenes of a multibillionaire’s tax returns, we comprehend the mindset of the documentation and paperwork of a high earning individual.
As six figure earners, a tax preparer or CPA (certified public accountant) suffices as the business is considered to be a small business. After we reach the two million dollar mark in our company, an accounting firm and counsel are necessary, as we see from DJT a multibillionaire. This insures that all income, assets & liabilities, appreciation & depreciation, are all properly calculated and reported.
As six figure earners, we study and explore utilizing debt and/or loans to expand our businesses. Becoming familiar with terms like COD (cancellation of indebtedness), we recognize how debt can benefit our businesses and tax reports.
It’s vital to recognize what entity is best for different sectors of business as income and cashflow increase. Under an S-corp, we see that shareholders and employees are able to receive these unreimbursed fee expenses. These can be documented as “miscellaneous itemized deductions” on a tax return.
Definitely do the research in your own state, as state laws may differ from federal laws. State taxes also differ from federal taxes. Business taxes differ from personal taxes.
The purpose of dissecting DJT’s tax returns is to observe the ins-and-outs of higher earning individuals. As we elevate as six figure earners, we are preparing for scaling and earning income in different tax brackets. We earn six figures yearly, monthly, eventually per deal.
Remember, as we start earning $250k (two-hundred thousand dollars) each month, we must have the resources necessary for proper tax filing:
Multiple entities
“Pass-through entities”
An accounting firm and counsel
Knowledge of terms like COD
Knowledge of how to properly utilize and file unreimbursed funds
The EXTENDED version of this post is available in our Mastermind Group, along with other informative posts.
Feel free to download DJT’s tax returns in the post in our FREE Six Figure Wholesaler group OR our mastermind group!