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Don’t Pay A Guru To Teach You Basic Investing Stuff

By June 22, 2021July 8th, 2021Blog, Cash Management

Spotting Scammers

There are a bunch of people running around out there calling themselves “financial gurus.” They claim to have magic secrets to maximize profits and get out of paying certain taxes. And a lot of these guys have fantastic pitches. They’re very well written and worded to make it sound like they are legitimate professionals who have stumbled upon something new. But when you look at the details, much of what they are offering is just basic investing advice with the technical terms taken out,

Depreciation

One of the technical terms they don’t like to define is “depreciation.” Depreciation is a basic term that even the most mediocre accountant is going to know. If your accountant doesn’t know about depreciation and doesn’t factor it into your tax preparation, you need a new accountant. “Depreciation” is how you handle deductions for assets that are going to have value over several years. If you buy a $2000 rower that will last six years, you don’t expense it. Instead, the IRS has you “depreciate” it, i.e., you get a $1000 deduction for it the first year. $500 the second, $250, and so on. 

Bonus Depreciation

Bonus depreciation is similar to regular depreciation, just with more politics involved. As the various parties take and lose powers, they change the tax code to decide what percentage of equipment you can bonus depreciate. That is to say, how much money you get to depreciate for purchased assets. This number is subject to change, but the bottom line is that virtually any accountant will automatically be factoring this into your tax preparation. It’s not a magic bullet. It’s what all accountants automatically do,

10-31 Exchange

If you make a real estate sale and reinvest that money in your next real estate purchase, you don’t have to pay capital gains. That is a great thing to know if you are considering buying or selling property soon. What it is not, however, is some deep secret. You could google reasonably basic information for yourself if these alleged gurus would just use the technical term for the thing they’re describing.

Don’t Be Fooled

A good accountant and well-prepared tax documents can save you a lot of money as a business owner. These “gurus” who claim to have hidden secrets to saving you money are just trying to get you to pay them to give you the same basic financial advice your accountant will already handle. Don’t waste your hard-earned profits on them.

 

To watch my full video, click below!

We will be offering a lot of advice on our page here, but we also would be happy to help you out on a more personal level. Feel free to hit us up if you need help preparing your taxes.

 

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