Carter Carter Cofield, a C.P.A Teaching Entrepreneurs How to Live Tax-Free.

Guest Resource

Tax-Free Challenge – Visit and grab a ticket to Discover How to Save Over $50k in Taxes Using the Exact Methods from a Tax Expert & How To Make Your Entire Lifestyle Deductible in 5 Days!

3 Value Bombs

1) When you start a business, get good at either selling or marketing. If you cannot sell your product or let people know about it, your business won’t survive.

2) Following the rules and doing what the government wants, you can live tax-free.

3) It is your legal right to pay as little tax as possible.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: 3 Ways to Save $30,000 in Taxes in 2024 with Carter Cofield

[1:33] – Carter shares something he believes about becoming successful that most people disagree with.

He believes that when you start a business, get good at either selling or marketing. If you cannot sell your product or let people know about it, your business won’t survive.

[2:21] – Carter talks about the truth about The Tax System.

Understanding the truth about the tax system is essential before learning how to save money on taxes. Some people wrongly believe that saving on taxes is terrible, so they avoid it altogether.
The truth: the tax system is essentially an incentive system created by the government. If you follow the rules and do what they want, you can minimise or even eliminate your tax burden. However, if you do not comply with the rules, they will take your money and allocate it according to their priorities.
You have two options: play by the rules and keep more of your money, or risk having the government take it and spend it themselves. Once you grasp this concept, you can feel more confident implementing tax-saving strategies.

[3:36] – How can you win the tax game?

If you want to win at the tax game, you need to be on the right team. Like in sports, to win the Super Bowl, you want to be on the best team. Similarly, the tax system is not designed to benefit employees; it favours entrepreneurs and investors.
As entrepreneurs, when you create jobs, you are essentially helping the government by reducing unemployment. In return, the government offers us significant tax breaks. Real estate investors also contribute by providing housing, which earns them tax advantages.
Following the rules and doing what the government wants, you can live tax-free.

[5:21] – Cater talks about the Rules of Write-offs: How can you turn personal expenses into business expenses?

Rule number one: Join the right team.
Rule number two: Understand the game’s rules, especially write-offs.
If you earn $100,000, you’re usually taxed on the total amount. But if you have $30,000 in write-offs, you’re only taxed on the remaining $70,000. So, more write-offs mean less taxes. Turning personal expenses into business write-offs is vital.
IRS Code Section 162 A says any expense essential for your business is deductible. You decide what is necessary based on your business.
If you use your cell phone for business, part of your bill and phone cost could become tax-deductible. Similarly, if you have a home office for your business, you can write off a portion of your rent.
If it is vital for your business, it is a write-off.

[8:27] – A timeout to thank our sponsors!

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[11:45] – Carter talks about taking tax-free vacations.

Carter used JLD as an example:

- Imagine you are travelling to Beautiful Meadows soon. To make this trip 100% tax deductible, here is what you can do: Travel on weekdays instead of weekends.
- For instance, if you plan to leave on Sunday, go on Monday instead. During your weekday travels, engage in business activities.
- For example, meeting for a business dinner on Friday and discussing ideas counts as business activity for that day.
- Similarly, attending a networking event on Monday, like a podcasting meetup, qualifies as a business activity.
- By doing this, all the days you are there become tax-deductible, according to the IRS. This includes your flights and lodging each night, even if you did not work Saturday and Sunday. The IRS wraps the weekend into the business days. Also, 50% of your meals in Beautiful Meadows can be tax deductible.
- These savings can add up. For instance, if you were paying high state and federal taxes in California, deductions like these could save you tens of thousands or even hundreds of thousands per year.

[16:40] – How can you correctly hire your kids legally and financially intelligently?

This tax strategy is crucial because it helps build generational wealth. Passing down knowledge of entrepreneurship to your kids is invaluable. They learn their most significant role models from you by involving them in your businesses.
The tax strategy: To hire your kids, they must do actual work in the business, like office cleaning or social media management. Generally, ages 6 to 17 are ideal, though older kids can also be hired. The IRS allows legal hiring of kids as long as they are your children. You can pay them up to $14,600 per child per year, tax-deductible for your business and tax-free for them, thanks to the standard deduction wiping out their income.
Essentially, you get a double tax benefit on the same dollar.

Are your kids also qualified to take a vacation?

Now that you have hired your kids into your business, they are part of your team. You can leverage this to take tax-free vacations with them.
As a business owner, you can establish a board of advisors, including your mentors, spouse, and kids. You can have up to five advisors for your business. The best part is that you do not necessarily have to pay them extra if they already work for the company.
With this setup, you can hold quarterly board meetings anywhere worldwide. Just document these meetings with photos and use transcribing tools to record them.
This becomes a legitimate business expense, allowing you to enjoy tax-free vacations with your family while discussing business strategies.

[22:34] – Carter gives his takeaway.

It is your legal right to pay as little tax as possible.

[23:35] – Carter gives his call to action.

Tax-Free Challenge – Visit and grab a ticket to Discover How to Save Over $50k in Taxes Using the Exact Methods from a Tax Expert & How To Make Your Entire Lifestyle Deductible in 5 Days!

[25:10] – Thank you to our Sponsors!

HubSpot: With the HubSpot for Startups program, you can save 30-90% on a platform that scales right along with you! To see if you’re eligible to join the HubSpot for Startups program and take your growth to the next level, visit HubSpot.com/startups!
Thrivetime Show: Is this your year?! Visit ThrivetimeShow.com to see testimonials of how Clay Clark’s business coaching has helped over 2,000 entrepreneurs to dramatically increase profitability! Then, schedule your free consultation!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!

3 Ways to Save $30,000 in Taxes in 2024 with Carter Cofield

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