W2 to Business Transition

How are you, Jason, I'm great. Laurel, how are you? I'm actually here with my wife, Nancy.

Hi, Nancy, darling, New Hampshire.

We often have to tell people Boston, because when we tell them New Hampshire, they ask what state that's in. But you know, it's New Hampshire. So there you go. Are you kidding?

They don't even know it's a real thing. Well, if you want to go ice skiing, I tease you guys because I've skied, then you can ski ice in New Hampshire. It's a real thing. It's a real thing. We ski snow on our side of the world. You ski and ice.

That's why we go to your side of the world to ski

Exactly, exactly you're working with, Laura. And here's your question, how do I get our your private health benefits for our family under your corporate structure? Oh, that's an easy one. Your health benefits are one of the biggest reasons we keep a w2 incomes. That's a problem. How much can I ask you?

How much you pay with your W twos for your healthcare?

Yeah, so how much I paid for healthcare? Specifically, I think it's probably 600 bucks a month for the two of you, for the for the family, but it might be about 700 for four kids and my wife and I.

That's not too bad. Yeah, well, that's probably why you keep it, because you go out on your own. So okay, let me finish the question, and then, can you do a cost segregation on your short term property purchased in June? Offset? Oh, yeah. So two big questions, the health benefit, how? What kind

of company do you have?

So I'm a VP of Sales for a cybersecurity company.

And can you, can they pay your company versus have you be a w2

can they pay my Well, that's a question. How I would do that? If I'm a w2 employee for a publicly traded company, then how would I do that?

Well, you become a consultant, and some do it, and some don't even, like won't even look at it in cybersecurity. I mean, it's more likely that you could be become a consultant. We have a lot of cyber security experts, and most of them act as more of a consultant versus internal so

it's just a question to ask the company if they would allow you to pay the company. That changes everything for you. But then, as far as your private health care, you can do a couple different ways. The number one way is how you pay yourself, just like with with Scott, why wanted to take his salary down at 112 for a

single guy, he's going to get killed in health care. So your health care, right? The insurance companies are looking at your paycheck, so we want to dump your paycheck down as low as we can. And that's the that's the easiest, fastest way to right? So the company pays for you and your wife's healthcare,

but it's because you're very low W twos with your company that makes sense. That's on number one. The other way would be to get an HSA, which I would do both. I actually have both. I like the HSAs because they're health savings accounts, and especially if you stock that kind of money and those credits

up for later, like long term care later, that's a great way to do that. So that's the kind of the primary ways to do it. And if you're only staying for the health care, and you're willing to dump your your payroll, not how much you make your payroll, that makes sense. Like my check, I'm between 36

and 42,000 in payroll, and I pay $112 for me and my daughter. Okay, so your healthcare benefit, the question is, how do

you bring that down? How do you navigate that, right?

But if you still have to get a bit, if you're still at the Big W too, they might just keep the healthcare through there, but you move over and they let you get paid out of your company, then it goes a different direction. So we can navigate that. And then, as Laura and all

of our team know, I've given scripts, like on an audio file, once you come in, I mean, one of the first things I do for a lot of people is give you a script to go talk to your company about quitting and transitioning to a consultant. So I can help script you through that and navigate from a tax perspective, that's

the one number one benefit is better for you. It's better for them, but they may not. They may want to hold you tighter. So we'll see about that. As far as cost segregation, you were in the time of your life because the big, beautiful law, which was the bill gave bonus depreciation. That is insane.

Anyone who's owned real estate that's doing really good tax planning with our teams are killing it. I mean, like one scenario is going from 100,000 owed in taxes to riding through quite a bit of real estate, but it now is, you know, six, $700,000 of losses carried forward because the big,

beautiful bill gives you so much bonus depreciation. Again, I had a client not use their tax teams well, and had an $80,000 bill, and this morning text me. I'm like, Dude, what are you doing? And he said, Well, I just couldn't get around it. Couldn't get just whatever he said, my excuses. I said, Okay, I don't

care what the excuses are. Let's get back to our team and. And he'll, he'll come forth with losses. They a lot of these, these CPAs that don't pay attention. They don't know how to write, they don't know how to document it, right? Yeah, so they're just checking the old, same boxes they checked on last

year's tax return, when there's a lot of new boxes with the big, beautiful bill and what it allows. And so if you don't get the right tax team, it could just get overlooked. But yes, you can that would be where we start. So for you guys, we'd start with the tax team, and then which would inform you know

what to do with that. W2, great So, lots of ways to do this. I cannot wait. When are you and Laura talking in the morning? Okay, anything else I can help you with today? I think,

you know, I know we're coming up on time here. We'll talk to Laura about it, but we've started an LLC with our short term rentals. And we want to talk about, do we for the best tax advantages? Do we do an S corp and then have the LLC under the S corp, and then, if we're going to buy other

businesses, have separate LLCs.

So if your total, if your total income, is what it says on this document, you're going to need more than that, different than that, that's okay, yeah, we need help. Yeah, your LLC is going to be good for the the the bonus depreciation. But you want a management company, not a

holding company. You want a management company, it's probably going to be Wyoming or Nevada. Yeah, it's a big one. It's an asset company. Because of the amount you make, it's hard to pull that down,

okay, even though that's w2 earnings and not from our investments. Yeah, okay,

okay, well, yeah. Well, because the other way, if you don't do it that way, then you're going to need to go buy more real estate or gas and oil or aviation, the stuff that really affects the tax a tax return, okay, yeah, it doesn't seem like that's quite there.

That's our goal, to take some of our money and invest in other assets so that we can get out of the w2 and start to make income with the business well.

And so we'll look at that too, and maybe what we do is one of you quits first, and it's probably not who wants to quit. It's going to be a math equation, not an emotional equation. Yeah, right. So sometimes, you know, it's a variety of pieces that has a success and just and again, we

don't make the decisions. We just tell you the pros and cons in the math equation is, if one of you quits, you'll affect the taxes like this much. If the other one quits, are you guys similar pay?

Nancy retired a couple years ago, so I'm the only one working. Oh, okay,

I'm sorry. I thought you both were working.

No, no, that's okay. And she, she actually manages the short term rental, so I shouldn't say she's retired. She is handling all that.

So, yeah, then how you invest? If you don't do the corporate structure, then the other side of taxes for big W twos is how you invest, and it's not, it's got to be very depreciation based, yeah, and our tax teams will, again, do a math equation for you and say, if you put in this much, it'll

go down this much. If you invest this much, it'll go down this much. I mean, it's, it's, again, it's math equation that a lot of CPAs. That's why we never call our CPAs, even though they are. We call them tax strategists, because they're much more planning, focused and forward, focused on what things can do to

affect the lowest tax bill possible.

That's great. That's why we're talking we're looking forward to talking to lower tomorrow. Yeah, thank you.

Look forward to working with you guys. Thank you. Thank you. Have a great day. You too.