Almost everyone who inquires about our tax services is looking to solve the same problem – lack of tax planning.
We’ve solved that issue at Alchemy and recently made some significant investments in our planning software and protocol—the result is the identification of lots and lots of tax savings for our members.
But the truth is, while everyone can benefit from a strategic and proactive CPA, not every Realtor and real estate investor needs a written tax planning. Here is how I think about it:
Level 1 Tax Planning
If you’re making less than $200,000 in gross revenue and you don’t have more than three rental properties, you probably don’t need a tax plan. Tax savings at this level generally fall into three areas: paying your taxes on time and avoiding penalties and interest, setting up and maxing out a retirement vehicle like an IRA, and carefully tracking income and expenses in your business and your real estate for a full accounting come tax time. If you’re doing those things, then our proactive tax services will do, and you can save your money.
Level 2 Tax Planning
If you’re making more than $200,000 and/or have more than three rentals, you probably need tax planning services. This is because the potential of an S-Corp comes into play, more sophisticated retirement planning is available, and your world opens up to several additional strategies such as the Agusta Rule, paying your kids from the business, or cost segregation for your rental properties – to name a few. All of that requires some thoughtful planning and execution. (We can help!)
Level 3 Tax Planning
If you’re making more than $1M in revenue and have more than six properties, you definitely need tax planning. You cannot possibly maximize your tax opportunities without a written plan. All sorts of opportunities are available to you, which require extensive research and implementation. There is no way around it: if you want the tax savings, you must invest in discovering and implementing them. (Ask us about our ProsperityPlan, which recently saved one of our members over $110k in taxes!)
Level 4 Tax Planning
More than 12 properties and/or more than $3M in revenue, what the heck are you doing without one? You’re flying blind and overpaying taxes by many thousands of dollars. If you’re at this level, you’ve got a lot of complexity, and within the complexity are opportunities. You’ll need a very capable team to handle this. (We’re in your corner)
While Uncle Sam appreciates your generous contributions to the US Treasury, Alchemy is ready to help you discover how to trim that back and keep more of your hard-earned cash.
