An Advanced Tax Strategy Every Business Owner Needs

Terry & Aveda: How are you doing? Wonderful, thank

you.

And where do you live in Texas, young lady?

We are.. do you know where Tyler is? Texas. Yeah, so

we're what, about two hours from Dallas?

Okay. Your question, and you remember

working with Becca, is I just sold an RV park that included a

technical training facility. We had a partner, and learned we

made some mistakes, like not getting a 1031 exchange. We

still have a healthy amount left that we want to grow. You did

buy 11 properties outright and put them in LLC, and you put all

11 in one LLC.

Yeah, we're in the process now of developing like

three more LLCs. We were willing for you just today, so we're

trying to get those, you know, put together.

Who's who's helping you do that? Because

that's not as simple as you just go to Secretary of State and

throw them in there.

Um, we have a lawyer that's in Athens,

so that's great, but they're not a tax

strategist, so this is a tax game, not a legal game. So I

would switch, like, to our very strategic tax team to get this

done right. I'm going to continue your question. I said

you have a trust and an S corp that you're keeping from the

sale of the business. It feels like a lot. When do we know we

need advance? You need advanced strategy, like right now you

needed it, actually, when you sold, because we would have

helped you sell differently, maintain the business and the

real estate differently. There would have been two

transactions, not one. Um, so I'm not sure how that ended up,

but at least you still have the S Corp, and you don't ever want

to take that down. The history of that from a tax side, and

just the financial services, seeing that money's come and

gone from it is perfect, and then just doing an analysis. I

mean, it seems like you're, you're buying to buy because you

need, need to do it, versus I would have you go to our tax

teams first, then they would help with your corporate

structure, which is probably going to be cheaper, and I'm

going to just say more thorough. One of the guys who sets up our

corporate structure, he and I have a very specific recording

on operating agreements for partners, so in the future you

would do that a little differently. There's nine things

most people forget in operating agreements, so we make sure that

those are thoroughly done, because lawyers are just usually

stock and block. Some of them aren't, but a lot of them are.

But this is more of a tax issue and a corporate structure issue

than a legal issue, so I mean, you know, you can let him review

the things if he actually is a business lawyer, but you're

ready. I mean, you are in advanced strategy. If you're

going to end up with three or four LLCs and S Corp, defining

what the S Corp is going to do, is it going to become a property

management company to them, and then all of that should be held

in trust, funded by life insurance, and then you also use

IRAs, alternative IRAs, as a supplement for tax strategy. So,

we use.. I mean, tax isn't just how you make the money on

income, tax is also a huge function of how you invest and

how you operate inside those companies. So, you're, you're

there, you are meeting. We're

both, we're both drawing social security at this

stage of the game. So I'm 72 and she's

66 but yeah, we did a lot of things wrong, and we just need

help, you know, making the right step, because we're at the point

where if we make too many more wrong steps, we will have lost a

lot of money.

I got it.

Not that we have it, we already have. But

no, you're like there now. Yeah, yep. And

what do you do? So, are either of you employed anymore? Are you

making any more money, or was the RV park part of what, like,

with where you made the blind share of your money?

Yeah, as soon as the sale happened, I took myself off

our, and him as well, off of the W-2 earnings with their S corp.

So we're not there anymore. I heard something that you said

the other day, that we should maybe we should be back on it a

little bit.

You should, because of your age, you should,

but very, you're only going to be employed to the degree that

we can't write off your personal expenses into business

deductions, so you know you're already hearing your first stop

is going to be to our advanced tax team. They'll go through

first, they'll do a review of the last three years and see if

there's anything we can recoup from the tax team and the way

that this business got sold, because did you sell it in 2026

or in 2020 It's probably 2025 given what you've done so far.

Yeah, it was the last day of the year. You know, when

we asked for it to be in 25 we asked it back in September, but

because of this was such a huge sale, it just kept rolling and

rolling and rolling, and then, so the last day of the year,

there it was. We actually didn't even take the money into our

accounts until like the first five days of the year, but it's

still classified as a sale for 25 so all the income tax has

been paid because we weren't ready with the 1031 Already all

of that was, was, did not

you haven't filed 2025 yet, have you? Didn't

you do

any? No, we're in a skin extension.

So, the way you would do that is, if you

think you like your current person, some people come to us

and they like their person, I'll say, okay, then have them like

don't sign it or pay it, but have them finish it if you're

there. If not, then our teams will just take over, and they

will do a review of 2223 and 24 before they fail, because I

mean, just think about even if they could find 10,000 you know,

per year per company, I mean, that's, you know, 2030

or something.

Yeah, obviously, at least that's

covering the majority of your tuition, I can't promise that.

And by the way, whenever I say that, you also like, I have a

client right now that's owed 180,000 back from doing a three

year review, and they've been waiting for it for six months.

The IRS is still uncovering themselves from COVID. They are

amazingly inefficient, and, but, but it will at least be part of

the return, you know, you at least, you know, you can count

on it coming to you. Just don't get excited about day or month

that it's going to come, because, yeah, shutdowns, it's

just been a huge delay on the government refunds, yeah, money

back.

Well, we haven't, we haven't signed anything, but we

did, of course, pay a lot of money on the on the 15th of this

month, but yeah,

let's like, you would be like a today talk,

right after the call, and let's get started. So you're ready,

you're right at the point where you got to get some help.

Rebecca tomorrow, so that'll be good.

So, when are you guys talking?

Tomorrow,

tomorrow, 1o'clock

our time, 1o'clock central.

Okay, if you have any other questions, I'd

love to help, but all the categories, all the, you know,

the boxes will get checked, even down to corporate credit. How

you use each of the companies, how you use the corporate credit

cards, which one do you use? The S corp is probably your biggest

advantage, but the other side of this, I think I mean, is are you

north of three 400,000 How much was the sale? Million more,

2022 Well, we do have a 5050 partner, so we had a lot of

money going a lot of different places, you know. So

you can tell my head I'm holding it.

I know, I know, it's a

unique. we'll get a Nevada asset company

immediately, because you, you can't play with, so I wish you

guys wouldn't have sold or no matters before, because that a

different kind of a corporate structure could have saved

probably half of what you paid in tax, so there's definitely a

return coming back to you, but you need a bigger company, even

to hold the money that you have right now. You're still going to

get over taxed, because you only have one tax year end, and by

having a Nevada asset company that files taxes in June, you

have an offset year, so you have more strategy, so it's more

active, and it's more engagement, but your taxes are

going to be way, way, way reduced.

Will our partner have to follow and go through the

same format as we are that we would go through?

Nope, they don't have to. You guys still

legally together in this sale, or do you separate upon sale?

Well, we're still trying to lose since we have not

gotten to what we call the true up just yet. We still have a

little bit more yet to get

done,

and we

never squat about 1.4 million health and escrow

for another

year. Conditional things going on for another year and a half.

So, Rebecca, I would put them in family, and

then whatever the partner does, we'll just, you know, you could

have them proportionally pay a little bit of the family

tuition, and it's just you three come along,

you got it,

you know, at the larger family rate, because

you're going to want them to at least understand what you're

doing, I mean, not that they have to do it, but they're crazy

not

to. Oh, yeah, I mean, that's why we're here,

yeah, yeah, I would take them along, so

there's no argument about

it, and then I need, need to know as much as possible

to take advantage of tax.

Oh, you work, you, we, you will, you will,

because you got a lot of strategy to put in play. And how

many kids do you have? Just on the other side of this,

we have three, three children, we have quite a few

grandchildren, everybody's pretty much in business. We have

one that owns another RV park, one owns a big battery company,

so everybody's in business.

Good, but they're going to all need this.

Yeah, they're going to all need this desperately. Yeah, because

you're just, you're not set enough, and it's interesting,

you know. It's one of the things we see, Rebecca sees that we all

see it over and over and over, is for whatever reason they just

don't. A lot of tax strategists won't structure you big enough

like these asset companies. They just, they don't know how to do

the tax returns. I mean, that's honestly the majority of the

option. They just don't know how to do them, so they just don't

do them, and they don't offer them to you because they don't.

How to do them versus why don't they go wider, you know what I

mean? Why don't they go wider?

Yeah, yeah,

and learn how to do it, and bring some team

members

to it. You talked about the management company, can you

go a little bit more depth on that, what that would entail as

far as what they're going to do for us, or it would do for

us. It's going to give you an off-year tax

strategy, so we're going to put probably the tax year end in

June. I have the same thing, and so let's just say at the end of

the year, all your rents, right, your management fees, everything

comes through, and you still got a tax liability. Now, with that

much real estate and all the bonus depreciation, you could

probably do a cost segregation study, which our tax teams will

do that for you, which again, if your tax teams didn't do it,

that's a huge benefit on the big beautiful bill. So, the big,

beautiful bill that passed last July 4 gave the Nevada asset

their C corp, they're a bigger company, and it allows you to do

business between the companies, so say you have a tax burden of,

say, 100 grand at the end of the year, 1231 You're these

companies are going to hire this company to do a very specific

style of management, given its real estate. And then,

contractually, then this money is, you have to pay an expense.

So, what does it do here? It creates zero, or really low,

then you have six months to go around, and then you say, well,

now this one's got money. What's it going to do? It's going to

tell the operating companies to get back to work. So you create

a relationship between the companies to keep the money at a

at at the above line and not drop it in the profits. Then

you'll pay tax. That makes sense.

Yes, yes, it does. Yes, it does.

I can tell you're getting excited about

this. You're getting, we

need to get excited about something, that's for

sure.

Yeah,

one thing I heard you say the other day, that you said

that our family should be advised on the advisor team,

right, or an advisor board to where that we travel together

and do things together, then it helps, and

yeah, so everyone in the family will be

engaged with each other's businesses at some level,

whether it's beneficiary, signature authority, just

depends on how you want to do the relationship between the

companies and the family. It's a huge legacy. I mean, what you

have in play and all rolled up is probably north of, I mean, I

don't know what your shared part is, but probably 50 to $70

million if you do it right.

Yeah, yeah, that RV park that the daughter has out

in New Mexico is, is huge, and she would love to sell it, by

the way. So,

well, then we got to start her on this new

strategy sooner than later, because right now, I mean, if

you kind of understand without me drawing it all out, you have

nowhere to go at 1231 if those are the only, if everything's

got to close books at 1231 but you don't have an offsetting

company in different year end, or right, and given that big, a

lot of times we'll have a company that closes March, like

every quarter you close, so you can keep moving the tax strategy

through the entire year system, it's busier, absolutely busier.

But would you rather overpay tax or just be doing the right

things for keeping the state live?

Yeah, I don't want to pay over pay.

I can promise you, you probably already have,

you've paid the student.

What's heartbreaking is you guys didn't

get that 1031

in

every

and I

believe that we must have done it to ourselves because we

actually had seven companies that we sold together, all they

brought them all together and did it in two sales, the real

estate in one, and then all the other businesses in the other,

and so anyway, it wound up being a mess.

Yeah, so it's just it wasn't enough to hold

the revenue, the sale revenue. So I mean, there's still things

we can do to go get as much back as possible, but then your next

moves get done right.

Yeah,

we need that.

Yeah, awesome. Well,

pardon you,

a lot of faith in you and Rebecca. Then, so we'll see.

Well, it's our whole team, it's not just me,

it's our tax team, corporate structure. We got you. I

wouldn't be doing

this for

26 years if you know we screw, screw this up

too much.

We're glad to be here. Let's just, yeah, yeah, perfect,

awesome. We look forward to working with you

too.

Thank you, thank

you, thank you. We'll talk soon.