Legacytax's Blog

Tips To Go From Rich to Wealthy (Part 2)

taxhelpsandiego — Sun, 22 Aug 2010 01:11:56 +0000

The world as we know it has gone through some very extreme changes in the past decade. We have seen many highs and lows. So, coming from this very grounded and sober perspective of riches there are some things to which we all relate: the joys of having children and spending time with loved ones, dreams coming true, falling in love, goal achievement, overcoming obstacles, sunrise and sunset, swimming in the ocean, a glass of wine with your feet up, and all the many blessing we count daily that make our lives rich in love, warmth, friends, good times, great feelings and the like. We can have all those things and live happily ever after, but that alone will not make us wealthy.

Wealth is a matter of accumulating money and valuable possessions in mass quantities. With this concept, the rich lifestyle described above may create a sense of contentment; however, to acquire wealth takes life changes.

We change because of the things we see, hear, read and surround ourselves with socially. Therefore, in order to upgrade your mind to think wealth one must create an environment that will feed the mind, improve skills and thereby increase assets. Wealth is built by the formulation of a system and it is sustained by the functionality and simplicity of the process not only to achieve wealth once, but to duplicate it repeatedly with ease. This is the creation of residual income, which is why the wealthy do not work with their hands or back, they build a system that will work for them and staff the system with the hands and backs that will continue making it work.

Now that you understand the thought process, are you ready to change what you see, hear, read and surround yourself with to acquire wealth. Without a mind change one cannot overcome the barriers preventing success.

For help in achieving your goals and the practical ways to overcome obstacles in your path contact us for a FREE consultation http://www.legacywealthtransitions.com

Get a Plan and Create Demand

taxhelpsandiego — Fri, 20 Aug 2010 18:17:02 +0000

Have you ever wondered how some people start a business and find success when others do not? What is the direct path to business success in the modern age? These are just some of the questions I hear regularly from business owners about their business and new ventures. One of the time tested truths to business success is “demand” for your product or service.

The first step to starting a new business, venture or revitalizing your current livelihood should be your business plan. Having a plan will guide your path in the direction of your goals. Having mentors, advisors and experts (usually someone that has done what you are trying to do and achieved success) giving you advice to game-plan and critique daily, weekly and monthly productivity is a necessity. Yes, your plans effectiveness should be reflected on and revised that often. If you are going down a line of unproductivity or wasting time in an area that is not serving you or the goal, there is no reason to stay the course. Make a change now and give yourself opportunities you didn’t have before.

There is nothing like the real thing. By gathering around yourself people that have been there and done that, their experiences alone can help save you from costly mistakes. There is no reason to make the same mistakes someone else has already made. It’s much more beneficial to create your plan, do what you plan to do and revise as you go along. Having the extra set of eyes may give you wisdom and guidance beyond what you are capable of seeing. Seek advice!

Be ready to grow, change and evolve daily to meet the need that is demanding your service. Create demand by developing a business plan that can be modeled and duplicated with as little use of your time and service as possible. How are you going to give people what they want and need? What makes you different? Where are the people looking who need your service and where will you reach them? What is the right price to be competitive and productive? Answer these and do what needs to be done to fill the need; thereby creating a demand for your service/product.

In doing these things with your business plan and focusing on creating demand for your service or product you will find success. You may be the smartest, brightest and best at what you do, but if the demand is not there for you no one will know. Ask a lot of questions and do not stop until you find the working path for you. Don’t be afraid to check your plan regularly and make changes as you go along. That does not make you wishy washy, but decisive and open to the evolution that is todays business market. You need more than a stay the course mentality.

Find a mantra that keeps you moving in direction of your goals and inspired: If it’s going to be, it’s up to me!

For help in developing a business plan or scheduling mentoring sessions please contact us at http://www.legacywealthtransitions.com for $100 off use code: TAXFREE

Tax Help San Diego: Tax Protection Strategy – Separate Property Agreement

taxhelpsandiego — Tue, 17 Aug 2010 20:00:28 +0000

Tax help San Diego is for those of you that balk at the mention of a prenuptial or ante-nuptial agreement you still have a chance to protect and secure assets keeping them separated using a separate property agreement. When dealing with complex tax issues or businesses and multiple partners, liability has a far reaching arm.

How do you protect yourself, children and estate from the tax liabilities of others involved? Use a separate property agreement to transmute community property ownership and relieve the burden and fear of being subject to the varying liabilities relationships bring.

This will not work as well after the tax liability has arisen and all eyes are on you. For best measure, this should be used as a tax planning strategy. In order to be effective the parties must actually abide by the agreement maintaining separate property, payments must be made by that partner and their own means and documentation must be available to prove this if the agreement is scrutinized.

The purportedly innocent spouse will not prevail where knowledge of fraud, deceit or intended manipulation has occurred. A separate property agreement can be established quickly and maintained with little work. To learn more about the options available to protect your assets and to decide if a separate property agreement is appropriate for you contact us at legacyplanner@gmail.com

Tax Help San Diego: Why it Pays to Hire

taxhelpsandiego — Mon, 16 Aug 2010 09:27:18 +0000

Tax help San Diego wants to know if you’ve heard of the Federal Work Opportunity Credit (WOTC)? If not, you are probably missing out on a tax-free gold mine. WOTC is a tax credit businesses receive by hiring employees from a targeted group. The group ranges in age, financial status and work and educational history. By hiring and paying an employee that qualifies under this list the business is able to cut taxes by $2,400-$9,000 per qualifying employee. The new hires must be certified within 28 days of hiring to receive the federal credit and if the employees qualifies for WOTC the CAEZ may be used as well, which is an additional $37,440 per new hire.

If you don’t know if you have hired qualifying employees and would like to reduce your tax liability get tax help San Diego and contact us at legacyplanner@gmail.com

Tips to go from Rich to Wealthy (Part 1)

taxhelpsandiego — Mon, 16 Aug 2010 09:25:46 +0000

Alternatives to paying tax is a much overlooked tool to wealth building and far too many fail to plan effectively for taxes. By the time the official tax season begins, it is too late. So we start with the dreaded capital gains tax. This tax is imposed when a gain is realized on an appreciated asset. Short Term gains are assets held for less than one year and are taxed as ordinary income. Long Term gains are for assets held for more than one year. The recipient of this gain must pay at the federal and state level (where applicable).

One solution to capital gains tax is charitable giving. No, I’m not referring to the government. This may have been, unknowingly, your charity of choice up until now, but here you have options and giving to a qualified 501(c)(3) charity is a viable option to paying tax. This leaves you in the driver seat to eliminating capital gains tax. The participant must follow the tax law closely to achieve benefits of this solution.

Sometimes finding a way to fully eliminate tax just isn’t legally possible, but there are always deferral options. For certain real estate assets, a 1031 exchange may be the ideal solution to present capital gains tax. This trade of “like kind” property is done without paying taxes and creates other opportunities.

A third option is to disperse the tax over many years at zero interest. This can be achieved through another estate planning tool called the irrevocable trust. There are far-reaching advantages for using this method on highly appreciated assets, but one should fully consider the loss of control before pursuing as a final solution because once commenced the decision cannot be revoked.

For a FREE one hour tax consultation contact us at http://www.legacywealthtransitions.com

Tax Help San Diego: Health Care Tax Credits – Did you get yours?

taxhelpsandiego — Fri, 13 Aug 2010 17:43:14 +0000

Tax help San Diego asks, were you one of the millions of recipients receiving a postcard informing you of the tax credits available as part of the new Healthcare Reform Act? This credit provides employers relief for health plan premiums from 2010-2013. The maximum credit is 35% of the employers premium payments. That is a huge tax savings to business owners using this credit.

So, what should the savvy business owner do now? First, contact a tax specialist that will decide if and how the credit applies to your company and immediately prepare you to qualify. As with all IRS credits, there are specific guidelines that must be followed and adhered to before eligibility is permitted. Prior to passing judgment against changes one doesn’t yet understand and listening to the hordes of bad information being regularly disseminated throughout the community the best advice is to speak with a professional with the skills to decipher the advanced tax implications of the healthcare reform and gain a better understanding about how you can use this to improve your business, increase profits and reduce taxes.

For business owners meeting the guidelines this is a huge tax benefit and if applied effectively your shareholders will be most pleased with the results. Whether or not your company makes the modifications to qualify for a full or partial credit are limited only to you and your ability to seek qualified assistance. This plan may be applied uniquely to each employer so do not be mislead by disgruntled owners unable to see the forest for the trees. Take your destiny and your taxes into your own hands and proceed with guidance and purpose.

For more information on qualifying your business for eligible tax credits that require action now, not later get tax help san diego and contact us at legacyplanner@gmail.com

Divorce and Taxes – Collaboration Provides Keys to Success

taxhelpsandiego — Mon, 09 Aug 2010 18:21:34 +0000

I know discussing divorce is never a fun topic. This is primarily axes – Collaboration caused by the grim financial results of creating two lives out of what used to be shared. The affects of parting do not have to mean financial servitude or highway robbery. As with any financial transitions, taxes play a major role in the final outcome and divorce is no different. Getting divorced without having appropriate tax analysis completed on your income, assets and future projections has create great disparity in determining financial support and asset allocation. The closer the divorcée is to retirement the more beneficial and accurate the tax and financial analysis will be as valuations for assets will have already been determined with some certainty.

Through a collaborative process of mediation, a couple is able to effectively gage the financial effects of their decision immediately and determine future projections. Through this agreement method, the accounting facts are calculated and openly revealed to each party giving them equal footing in the negotiation process. This common ground is lost in the family court legal system where a base set of rules is applied to every family and household with little regard for the individual circumstances and financial factors i.e. taxation that affects families differently. This is not to discredit the family law system, but merely to point out the alternatives for those families valuing asset protection, family legacy, growth and success.

Even when dividing worlds, lives and assets, tax advice and planning give families and business the keys to effectuate positive and healthy transitions without the destructive loss of assets and prevents legacy deterioration. Both sides can successfully be provided for with financial accuracy and long-term goal setting.

For more information or to schedule appointments go to http://www.legacywealthtransitions.com and begin your path to divorce and tax success.

Family Limited Partnership: An Approach to Legacy Planning (Part 1)

taxhelpsandiego — Thu, 05 Aug 2010 23:27:56 +0000

In considering how best to manage our financial affairs and transfer assets generationally, taxes always seem to be the issue at hand. Although it’s hard to get around taxes and failure to do the tax analysis will be detrimental to any long term plan, it is not the only reason to plan long term for your business and families interest. Next to taxes, the largest barrier to successful wealth transition is family divisions. The Family Limited Partnership (FLP) is an estate planning tool that can help meet long term generational planning objectives and ensure you leave a lasting legacy.

What is an FLP?
It is a limited partnership created under state law by which the partners are usually members of the same family or family controlled entities. The entire purpose of this vehicle is to fulfill estate planning objectives. The tax law does not distinguish between the FLP and a Limited Partnership; however, there are distinctions when used as an estate planning tool.

Estate Planning rationale for having a FLP -
1.) Financial Guidance
As many families fear the ultimate beneficiaries abuse of their inheritance, but many have found that there is little ability to control how an heir uses their estate once they are of majority and the assets are in their hands. The FLP provides families the chance to create a business structure to control and direct the family involvement after a wealth transfer has occurred.
2.) Asset Protection
The FLP offers a high degree of creditor and economic protection for the family.
3.) Establish FLP Business Purpose -
The opportunity to bring the family together and work on the common familial goals, creating agreement and synergy before major wealth transfer is optimal. There is an old saying, “united we stand, divided we fall” and it still rings true especially when dealing with families and assets.

(to be continued…..)
For more on estate planning and family alternatives please visit http://www.legacywealthtransitions.com
For immediate assistance online via our virtual meetings and consultations click on Make Reservation and have your questions answered and issues resolved now.

Investing the Tax Efficient Way

taxhelpsandiego — Wed, 04 Aug 2010 05:47:36 +0000

Do you enjoy making passive income through investing money and watching it grow? Well, if you are like the rest of us. of course you do. What we don’t like however, is paying the tax on our winnings or investment growth. It feels a little unfair. The good news is there are ways to invest your money and reduce your tax burden.

From the perspective of a tax professional, the tax rate on capital gains will increase. When taxes increase one must become more tactical in planning strategically for tax savings. An easy secret to tax deferral and immediate tax reduction is a simple buy and hold strategy. This enables you to secure your current gains without paying immediate tax on it. A close sibling to the buy and hold strategy is tax harvesting. Every financial plan should include tax harvesting before year-end. This affords you the opportunity to recognize losses and offset taxes and shelter gains that would be taxed at a higher rate. Some investments include a holding period that can be used for tax efficient planning and investment maximization.

For more information on tax effective investment planning or a review of your financial plan and tax harvesting opportunities, please contact us at http:www.legacywealthtransitions.com and receive $100 off online consulting and tax preparation with code: TAXFREE

Is Your Work Worth It?

taxhelpsandiego — Sat, 05 Jun 2010 06:46:04 +0000

Most of us work for a living. We pay for our home, bills and lifestyle. What does what we do today give us tomorrow? I hear people time and time again complain about their work hours and not having a life or work being their life. The definition of work means to exert oneself, toll and labor.

Are you tolling in vain?
There are so many people looking forward to retirement. I like to call retirement the rest of your life. I think of it in those terms because it gives you the opportunity to spend the rest of life your life doing the things you desire, because the first part of your life you were probably “working” and aspiring to one day be free of the necessity to work so as to get what you want out of life. Free your mind!

Will it shock you too much if I tell you the time is now?
The time is now to get what you want out of life. The time is now to achieve your goals. The time is now to build your dreams into reality and reap the benefits of your efforts. When you build with purpose and focus your efforts on the end result you attain greatness.

Although this may be different for each person, the steps to get there are all the same. Whether you seek financial freedom, luxury, peace or the many other options available, you must walk the path, take the steps and evolve. So stop working to live and put your time and efforts into a life that will work for you even when you aren’t laboring, tolling and exerting yourself.

Ask yourself, what am I building? Who is reaping the benefits of my efforts? What will the end result be if this all stops tomorrow?

I can help you end this cycle and build and asset out of your life that will empower you to make your dreams come true. As a professional problem solver you can count on the attention to your needs and the help you will get in attaining all you want out of life.
LegacySpeaks

http://www.desireewilson.com

http://www.legacywealthtransitions.com