Small Business Tax Tips To grow & Keep Wealth in 2025 with Mark J. Kohler

Summary

Podcast Summary: "Small Business Tax Tips To Grow & Keep Wealth in 2025 with Mark J. Kohler"

Right About Now with Ryan Alford
Host: Ryan Alford
Guest: Mark J. Kohler, Tax Attorney
Release Date: January 21, 2025

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Introduction

In this episode of Right About Now with Ryan Alford, Ryan welcomes Mark J. Kohler, a seasoned tax attorney dedicated to assisting small businesses and Main Street America. With a rich background in both law and accounting, Mark brings a wealth of knowledge on tax strategies that empower entrepreneurs to maximize their wealth while minimizing tax burdens. The discussion delves deep into actionable tax tips tailored for small business owners aiming to thrive in 2025.

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Mark J. Kohler’s Journey and Expertise ([00:00] - [03:22])

Mark begins by sharing his entrepreneurial spirit from a young age, recounting his experiences with lemonade stands and small businesses in high school. His passion for entrepreneurship led him to study business before pivoting to accounting. However, wanting to stand out in the field, Mark pursued law school, combining his accounting knowledge with legal expertise. This unique blend allows him to offer comprehensive tax strategies that few can, making him a rare breed in the tax attorney landscape.

Mark J. Kohler ([03:22]): "I'm the captain of your ship. Quit looking for an accountant to do it all for you. You can freaking run the ship here, hire the first mate, and you can control your destiny."

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Effective Tax Strategies for Small Businesses ([05:21] - [11:30])

Mark emphasizes the significance of simple yet effective tax strategies that small business owners can implement without needing complex maneuvers. He discusses the concept of the effective tax rate versus marginal tax rates, illustrating how even high earners can optimize their tax liabilities through informed strategies.

Mark J. Kohler ([06:45]): "It's not about getting rich quick. It's not getting rich slow. I want to get rich slow."

He cites Donald Trump's tax strategies as an example, explaining how leveraging real estate investments and depreciation can significantly reduce one's effective tax rate.

Mark J. Kohler ([08:03]): "Trump had so much in depreciation from his hotels and real estate investments, he was able to wipe out his income from The Apprentice and his retail. So, his effective rate at the end of the day was very low."

Mark underscores the importance of saving money over merely making it, advocating for proactive tax planning as a cornerstone of financial growth.

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Changing Perceptions of Tax Write-offs ([11:30] - [15:25])

The conversation shifts to societal perceptions of tax write-offs, particularly how the wealthy are often unfairly labeled as unethical for utilizing tax strategies. Mark argues that the tax code is designed to incentivize actions that benefit the economy, and leveraging these incentives is both legal and beneficial.

Mark J. Kohler ([14:46]): "The tax code is built to motivate people to do things... These are amazing and they're not complicated. Rich people geek out on tax strategies. If you want to be rich, start geeking out on some of the stuff and it'll blow your mind."

He encourages listeners to embrace these strategies, not only to save taxes but also to contribute positively to the economy by investing in areas like renewable energy and affordable housing.

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Common Tax Mistakes and Essential Advice ([15:25] - [19:48])

Mark advises small business owners to rethink their approach to taxes by taking ownership of their tax strategies rather than delegating entirely to accountants. He stresses the importance of understanding one's financials and being actively involved in tax planning.

Mark J. Kohler ([17:25]): "Stop thinking you're going to find an accountant to do all of this for you. You're taking the number one thing you should be doing and thinking, you're going to delegate it. It doesn't work."

He advocates for regular interactions with accountants, quarterly meetings, and a proactive stance in managing finances to ensure optimal tax outcomes.

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Integrating Family into Business for Tax Benefits ([19:48] - [28:26])

One of the standout topics is the strategic integration of family members into business operations to maximize tax benefits. Mark outlines how employing children in a business can provide significant tax write-offs while simultaneously teaching them valuable business skills.

Mark J. Kohler ([24:01]): "Your family office is that third bedroom down the hall with a couch in it. That's your family office. Let's start writing off a retreat with our family at least once a year."

He explains the advantages of paying children under 18, who benefit from lower tax brackets, thereby reducing the overall family tax burden while fostering a business-oriented mindset in the next generation.

Mark J. Kohler ([26:03]): "Your kids don't pay taxes this year on the first 14 thousand and change. So your kids could earn $14,000 a year at working at McDonald's and pay zero tax."

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Navigating Crypto Taxation ([31:34] - [34:12])

Mark touches upon the emerging field of cryptocurrency and its tax implications. He highlights the importance of understanding crypto taxation to avoid legal pitfalls, emphasizing that cryptocurrencies like XRP should be treated with the same tax considerations as traditional currencies.

Mark J. Kohler ([33:37]): "There's no such thing as a crypto tax. There's freaking crypto, like the dollar. That's what it is. If you make money, you're gonna pay tax. Deal with it."

He advises business owners to stay informed and consult with knowledgeable tax professionals to navigate the complexities of crypto transactions effectively.

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Final Insights and Resources ([34:12] - [37:45])

As the episode wraps up, Mark shares resources for listeners to further educate themselves on tax strategies and connect with competent tax advisors. He reiterates the importance of proactive tax planning and continuous learning to secure financial success.

Mark J. Kohler ([36:16]): "Mark J. Kohler.com... If you're a tax advisor out there or want to be a tax advisor, I'll equip you right now. The tax industry is on fire, Ryan. It's just really ugly right now and people need good tax advisors who are out there."

He encourages listeners to visit his website, engage with his content, and consider joining his network of tax professionals to enhance their tax planning capabilities.

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Notable Quotes

• Mark J. Kohler ([00:00] - [06:45]): "It's not about getting rich quick. It's not getting rich slow. I want to get rich slow."

• Mark J. Kohler ([08:03]): "Trump had so much in depreciation from his hotels and real estate investments, he was able to wipe out his income from The Apprentice and his retail. So, his effective rate at the end of the day was very low."

• Mark J. Kohler ([14:46]): "Rich people geek out on tax strategies. If you want to be rich, start geeking out on some of the stuff and it'll blow your mind."

• Mark J. Kohler ([17:25]): "Stop thinking you're going to find an accountant to do all of this for you. You're taking the number one thing you should be doing and thinking, you're going to delegate it. It doesn't work."

• Mark J. Kohler ([24:01]): "Treat your business like family and have a family board and a family meeting. It makes your LLC or corporation more legit because you're having annual board meetings."

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Conclusion

This episode of Right About Now with Ryan Alford offers a treasure trove of tax strategies and insights crucial for small business owners aiming to grow and preserve their wealth in 2025. Mark J. Kohler's expertise demystifies complex tax concepts, empowering listeners to take control of their financial destinies through informed decision-making and strategic planning. Whether you're a seasoned entrepreneur or just starting, the actionable advice provided in this episode is invaluable for navigating the intricate landscape of small business taxation.

For more insights and resources, visit Mark J. Kohler's Website and explore the comprehensive tools and consultations available to help you optimize your tax strategies.

Transcript

[A]

It's not about getting rich quick. It's not getting rich slow. I want to get rich slow.

[B]

This is Right about now with Ryan Alford, a Radcast Network production. We are the number one business show on the planet with over 1 million downloads a month, taking the BS out of business for over 6 years in over 400 episodes. You ready to start snapping necks and cashing checks? Well, it starts right about now.

[C]

What's up, guys? Welcome to right about now. We're always talking about how to get right and what's working now. I can tell you about what the future is. I can tell you what the past is, but we want to tell you how to get ahead now. We go all. We're going deep today in business. We're going to tell it. And we're dealing with a 1 percenter. I'm telling you. So we got both a rare breed, and we got the main street coming right to you. It is Mark J. Kohler. He is a tax attorney. He is the main street tax attorney, and he's going to tell us today how to get it. All right, because look, we got to put more money in your pocket, baby. That's what we're here to do. What's up, Mark?

[A]

Hey, thanks for having me, Ryan. This is awesome. And love that your focus is on this. So important.

[C]

Yeah, man, look, we want to give actionable advice. Ultimately, we have a lot of people on, and our focus this year in 2025 is how to get ahead in all things. And look, small business is the fabric of the U.S. you know, we could talk the high end. We can talk to load all this, but we're talking like that is what drives America is small business. And I love what you're doing, Mark. I love the mainstream approach. Podcasting author. We're gonna have all the links to Mark, stuff we got. He's got more going on than you would believe, but it's all about helping the main street. So Mark set the table for us, man. I mean, how the hell did you get 1% lawyer and a tax guy all in one? It seems like the perfect combo, though. Like, when I started reading your stuff and talking to your people, I was like, this is a rare breed here, you know, but. But it makes sense.

[A]

Yeah, well, that's what the ladies say, you know? You know, spotted white leopard. Well, I was always an entrepreneur. I was the kid with the lemonade stand. I was. Had a small business in high school and hiring my brother's friends and screwing things up. And I mean, it was Tom Sawyer painting, white fences, whatever it was. But I just loved entrepreneurship. And when I went on to school, I went into business. And then I thought, hey, this accounting thing, no offense to anyone out there, I mean, marketing class, finance is tough, sure, but I don't want to work for Wall Street. So marketing man, I'm going to go accounting because I can stand out there if I can just get a C in accounting, all the other, you know, hire all the other A accountants. And so sure enough, I stood out in the accounting group as the party planner. It was super fun. And then I had this teacher who was a lawyer and an accountant, and I was like, holy crap, this guy can take over the world. So you had all the benefits of understanding the numbers sitting at the table in business. And then I could freaking file a lawsuit, fight the irs, do whatever. And so I was like, I want to be that guy. So I went on to law school, come to find out of a hundred lawyers, one of them has any tax background. And I freaking said I'm going to Main street, screw Wall Street. And here I am.

[C]

Hey, man, I love it. Because you know what, Mark? And we, we talked a little pre episode this, but you know how many times I've asked the question of my accountant? You'd have to consult your lawyer on that because, look, I like to push the limit. I can admit it. You know, it doesn't take long to figure that out about me, you know, like, and not. But I want to do it legally, you know, I want to get all I can get out of it. And so the moment you. I was like, I have heard that a thousand times. You know, consult your lawyer on that. Ryan.

[A]

Yeah.

[C]

Is it true?

[A]

It's maddening. And, and the hard thing is, is taxes are law. I mean, it's tax law, you know, and understanding it. And, and only the big dogs or big companies have been able to afford tax lures. So I've worked really hard over the last 25 years building a model based on volume and a boutique where we can help clients around the country. And been doing that. But the important thing here is the number one cost in our lives are taxes. And, and people don't want to talk about it. It's too boring, it's too complex. What the hell do I do? Well, we're going to freaking demystify that. That's my whole career, is to say it's not that hard and you're the captain of your ship. Quit looking for an accountant to do it all for you. You can freaking run the Ship here, hire the first mate and you can control your destiny.

[C]

What's the most common thing you deal with, Mark? You know, working with Main street, working with small businesses. Like what are those commonalities, you know, business to business. I think, because I think, I always think there's, there's knowledge in trends and numbers. And so when you get asked a lot of the same questions, when you've deal with a lot of the same challenges, I tend to think that brings knowledge to our listeners. What are some of those key things that you're always sort of tackling or working with clients on?

[A]

Well, what's. Great question and what's interesting is since COVID we've had the great formation. We now have almost, we're pushing up to almost 45% of working Americans have a side hustle and people. That's a, that's a small business. That's a gateway drug. It's not a burden we should look at as an opportunity to use that, those funds to get out of debt, build wealth, create assets. And one in five Americans own a rental property in some form or fashion. So if I've got a rental property and a little small business people, you're not quitting your day job. Let's just tap into that. And so a common, common theme and what we do every day is meet with that, that community, those people that are the backbone of this country that are starving for simple answers to get their kids on payroll, save some taxes, write off their auto, but you know, whatever it is. And I love that bread and butter stuff. And so it's just, there's no mystery. It's not like there's this secret thing like Mark, how do I save tax? It's just, it's just doing the basics and knowing it, understanding it, owning it. And that's so there's no sexy secret there except that you, you really can build a wealth that you maybe, maybe never imagined with just those simple base hits. It's not about getting rich quick. It's not getting rich slow. I want to get rich slow.

[C]

Yeah. Adding them on and saving the most with, with that extra time.

[A]

Right.

[C]

If you're going to moonlight over and above the day, the daytime job, it's keeping as much of that as possible, correct?

[A]

Oh yeah. See you give me a day. You know, and there's nothing wrong with that. W2 day job work corporate America. That's cool because it's great. Let's go do your taxes. Bend over. I can't do anything. I mean, you're screwed. But if you've got that small business.

[C]

Ho ho, ho, ho, ho.

[A]

Now that little 1099 some of you were getting, that's like, that's a golden ticket. Now I'm writing off home, office, auto dining, computers, electronics, your cell phone, family members, funding a Roth IRA. You can set up your own damn 401k. Now we're going to take all that money and start deploying it and we're going to be efficient, we're going to be lean and mean. And that I can, you can pay 30% less in taxes on that money than your day job. Your day job. You're screwed. Let's go get this other money that's a lot cheaper to get. Everybody wants to talk about making money. Why don't we talk about saving money? It's easier to save money than make money.

[C]

Yeah, it is. That's true. It's a very simple statement, but it's very trouble. Sit here. There. Yeah, it's true. It's because it's not always easy to make it. Let me talk to you about this, Mark. You know they talk about tax brackets, right?

[A]

Okay.

[C]

I think some of this terminology, you know, W2s in X bracket if you're self employed and small business owner, like what's the le. And there's always the talk, you know, like especially like three or four years ago by like Trump pays like an effective 8% tax rate like, or whatever it was, you know, but, but for the average small business guy and even the W2 because we have people that are both, they're listening to our show that are small business owners and that maybe are W2 thinking going small business. What, what's the least you could truly get away with, like legally, you know, doing it the right way. But like what kind of tax brackets should the average small business guy be in?

[A]

Well, very, a very perceptive question and I'm going to try to answer this simply. So everybody, there's seven tax brackets out there and the highest being 37 and a half. Okay, cool. No one pays in total 37 and a half percent in federal taxes because it's graduated. So when we have brackets, that's our bracket on the next dollar after a certain limit. So once everybody kind of gets that, that this is a graduated bracket, that's point number one. So then what we want to look at is what is your effective tax rate. So like after we take all the killer write offs, we can think of lots, lots of options. What's that effective rate. And for some people it could be zero for others, it could be 35%. Now, it is generally true, the more money you make, the more tax rate you're going to pay more per a larger percentage of your income in taxes. But then we've got strategies and tools. For example, why Trump was such an anomaly and he really wasn't, it's just the Wall Street Journal wanted to point this out, is that he is a real estate professional. I've got his tax return here on my laptop. I got Joe Biden's and his from 2016. He was a real estate professional. Now you've talked about here on your show all the time. If you want to invest in short term rentals, long term rentals, do real estate and deploy money in real estate, it's not for everybody, but we have depreciation strategies and investment strategies that can offset my income over here. Trump had so much in depreciation from his hotels and real estate investments, he was able to wipe out his income from the Apprentice and his retail. So, so his effective rate at the end of the day was very low. Now, someone else who just works a day job, has no write offs, makes 500 grand a year at Verizon as a VP. Okay, you're going to be paying 30% or more in effective rate because you're not using the strategies to your in the best way. And I'd like, before we started the show too, you were talking about, hey, don't hate the player, just hate the game.

[C]

Yeah.

[A]

You know, if you don't, if you don't like The Trump paid 6%, don't be pissed at Trump.

[C]

Yeah, exactly.

[A]

Just learn the rules. And so when you understand the rules, you're like, okay, I could invest in oil and gas. I can invest in a little solar. Oh, I'm going to build a Roth IRA. Peter Thiel's got a $5 billion Roth as a tax free ATM. Oh, I'm going to invest in my health savings account and never pay tax on healthcare again. And these little tools that are out there are amazing and they're not complicated. Rich people. Okay, here's the last point. Rich people geek out on tax strategies. If you want to be rich, start geeking out on some of the stuff and it'll blow your mind. Because this is where the rich get richer.

[C]

Talking to Mark J. Kohler, Main Streets tax lawyer. But look, Mark, I'm serious. Like, here's what I don't like. And that's why I really love your energy and your passion on this because it's so real and raw and true.

[A]

Thanks.

[C]

We sort of like you said, the rich geek out on it and everyone else almost criminalizes write offs. Do you notice that temperature, how that's changed like the last 10 years? Like it's almost like people put it in this camp of like and criminal might be strong, but like you'll be talking to someone unethical. Exactly. That's the better word. And why the hell does that proliferated?

[A]

I think, okay, this is hard hitting. People that don't make a lot of money don't want to look in the mirror and own that. Whether it's lack of determination, laziness or just knowledge, they'd rather blame or put this wealthy person in a box and say oh, they're unethical and bad. Rather than look in the mirror and go, you know what? I could learn a few things. I could freaking. Maybe I'm not going to watch TV every night for three hours and I'm going to learn how to digitally market online. Or I'm going to this weekend I'm going to drive Uber for, for seven to eight hours and take that money and go buy a rental property next year. I mean, can we get off our ass and do something rather than blame the rich for being determined.

[C]

I led the witness.

[A]

That was hard.

[C]

I led the witness. I led the witness, Mark. I tend to do that. Like you went right where I wanted you to go because it's the truth. That's what. And the truth hurts sometimes. It's like. But I do think that's what's happened is it's been criminalizer, you know, bad mouth or what. Oh right. You know, he just writes all things or he's cheating the system or whatever. And it's like cheat. There's a difference between cheating. This is. Which is why I love that you're a lawyer too. Cheating the system because we got to talk about these things and I know that I, that a lawyer is going to tell me, you know, what's, what's legal. What's not legal is cheating the system and using the system.

[A]

And you just hit the word. I wanted to say, I got to dive in here because this is exactly the word you say. The tax code people, everybody, this is so, so important. You want to get theoretical. The tax code is built to motivate people to do things. Get married, pay less tax. A married couple will pay less tax than in single or married filing. Separate. Go put handicap access in your business. Get a tax credit. Go buy a solar water heater, this whatever or efficient water heater at home. Depot, get a tax credit, go buy an electric vehicle, get a tax rate, go buy real estate and help others have affordable housing. Take depreciation, go do this, go do that. The tax code, all you're doing is using it to help America get better. And we'll give you a tax break. You get a tax break for doing good things to help the economy. And that's the mind shift. They're not, the rich are figuring out, hold, I can make money doing this. Save, tax and make Main Street America better. Holy shit. Sign me up.

[C]

Win, win, win. That's the whole thing. It's not, it's not what? We've been conditioned by media or whatever else, which is win for me, lose for the government. You know, breaking law, pushing the limit. No, like you said, it's set up because people smarter than me knew that we needed actions to make this country run. Because all, everything that you named Mark actually drives an action that keeps the economy and everything else moving, doesn't it? Like yes.

[A]

Yeah. There's another classic one right now, it's the oil and gas tax credit and there's depletion credits and all this. If you want to go drop at any income level, you don't have to be materially participating, you don't have to be quit your day job, you can, there's funds you can invest in for oil and gas royalties, depletion, exploration and invest 100 grand and probably get a $90,000 tax write off, make cash flow and resell it for 150 grand four years from now. The government needs drillers to go get natural gas and oil in the United States on US soil and we'll give you a tax credit and all of a sudden your effective tax rate goes from 25% down to 10%. You're making money, you're helping America be self reliant on natural resources and everybody wins. And you're the bad guy because you found this kick ass tax strategy, you know?

[C]

Yeah, but it's right. I'm right. I'm not crazy. Right. Like I'm that, that this proliferation of the, you know, the wealthy getting ahead or all that like that, that's a real thing and that drives me crazy.

[A]

You're a lion, you're not a sheep. You're lying.

[C]

That's it. I love it. So let's talk, let's talk about. I, I'm going to ask you two questions, our listeners and we're gonna, we're gonna couch this as, you know, small business owners or soon to be after this Episode Small business owners. One thing they should stop doing and one thing they should start doing. If I'm a small, they likely aren't. I know we look, we got, you know, 800,000 downloads a month on this show. Like, so we got a lot of people, probably a lot of different things that they may or may not be doing that you don't know, but they come to you. What's the one thing you tell people to stop doing the most?

[A]

Okay, stop. Is first.

[C]

Yeah. What do we not. What do we need to stop doing? If I'm a small business owner.

[A]

Yep, yep.

[C]

From an account.

[A]

Stop thinking. Okay, here it is. It's a mindset thing. It's going to be easy. I, I got, I got few others. But stop thinking you're going to find an accountant to do all of this for you. Stop thinking that. Oh, yeah, as soon as I find that accountant, I don't have to worry about this anymore. I'm going to find that perfect account that speaks Mark Kohler. And by the way, I got a network of a thousand accounts around the country and growing that speak Mark Kohler. But you're not going to find someone that's going to care as much about your finances and future than you. Now, you need a good accountant. They're your first mate, but where are you steering the ship? Or you do understand what strategies they're doing or you understand what structure you are and why. You don't have to know how to do an effing tax return, people. But you need to know what numbers are on it and how to read it. A rich person knows their tax return, so you just start doing what rich people do. It's super easy. And they work with their advisor. They don't have an account that just plugs all that crap in and you pick it up two months later. They have meetings with their accountant throughout the year, at least quarterly and going, hey, I'm going to do this, I'm going to do that. I'm going to start that. I'm going to sell this. And it's synergistic. So stop thinking you're going to hire someone to take all of this off your plate. You're taking the number one thing you should be doing and thinking. You're going to delegate it. It doesn't work.

[C]

I'm going to boil that down, Mark. That's what I do. A marketer. You need to be the CEO of your tax team that you start building today. And so your accountant is on the team, but you're the CFO See F. CFO or CEO? Both. Yeah, yeah, both. Both of the team. And you have to think about it that way because you cannot deal just like your own business after. I've got. Look, I. I'm arbitrary. I own five companies now. I've gone down this road. I tried to delegate the business away, you know, doesn't work. Good luck. No, it doesn't.

[A]

Yeah, right.

[C]

You know, you get in trouble. Yeah. It's what gets. I've been in. Got all the scars, you know, I've done it too.

[A]

Done it too.

[C]

You cannot delegate. And the taxes. You need to be the CEO of your own tax team. And it might be a two person team, three person team, but that's what I just heard you say. And I think we try to delegate the taxes away.

[A]

Yep, I love it so. And you lead right into my second point. And it's so easy, people, this mind shift change. So number one, you're not going to delegate away this tax and legal topic, although you're going to build a team. So I love the way you said that. CEO of that team. What you are going to do that's a little different though is I need you to treat your side hustle, your business like a business. We've got to start knowing there's a set of books, there's a methodology here. I've got to put in tax deposits. I've got to be engaged in the process. The so many people that have a side hustle, they get this mysterious 1099 from selling something on, you know, they got a tenant from Etsy or ebay or whatever. They're getting a little 10 for side hustle somewhere and they see it as a burden when. No, no, no, that's a business. Treat it like that. Treat your rental property like a business. When you start to treat your operation like a business, it now starts to work for you. And the profit from it can be redeployed into assets that work for you while you're asleep. And that money can be used to expand and scale. But if you don't treat your business like a business, it does you no good. It's just a noose around your neck anyway.

[C]

So we got to start owning and being involved and being the CEO of your tax team. You don't have to do it all. CEOs don't do it all. But you've got to be involved and you've got to, because ultimately this is what it crystallized for me and I've gone through this myself is like thinking through the opportunities for the write offs and other things, there's just things that the accountant's not going to know. They're not in your business every day. They don't know how this was used or that was used. And receipt's not going to tell them that. And so yeah, you have to be involved and let me know.

[A]

Totally. And you said this at the very beginning of your show. You want to give actionable items. Okay, let me give you some actionable. All of you at the very least should have a spreadsheet where you track all of your expenses. Number two, use a credit card or debit card exclusively for your business. If you've got an amex, use it for business. Use your Visa for personal. Try to start separating your accounting. If you're using QuickBooks Online or some of the easy software platforms, great. But just start tracking your expenses. You don't know if they're a write off or not, but if you don't track them, you can't meet with your accountant at the end of the process and carve out the ones that are really work for you. Bad bookkeeping loses money. So start with some decent bookkeeping. Next, actionable. Get a podcast or some good blogs that you like or video that you follow on YouTube of tax tips. I've got a 30 ultimate tax guide this and I have a podcast where every week we talk about different tax tips and all that. If you don't like Mark Kohler, it's fine, but you got to have someone that you're following say, okay, can I write up what am I doing right now with healthcare? January 15, that was a big day. That's the last day to enroll for healthcare for 2025 and get a health savings account. What am I doing by April 15? Am I putting their college savings for my kids in an esa? What is an esa? You know, kind of you tell me the difference between a Roth and an ira. So start educated on these things and just start kind of learning. And it's going to be hard. It's not going to be. Sometimes it's fun, sometimes it's just like, oh my gosh. But you're going to be the coolest person at the next dinner party. You're like, oh, check out what I learned. You know, and everybody's like, what? You know, I mean, it's just cool stuff.

[C]

Yep, I love that. That might, that might fall on the. What they should start doing.

[A]

Yes, yeah, exactly.

[C]

Right? Stop. Stop delegating. Start documenting.

[A]

I gotta write that down.

[C]

I gotta write that down. Stop delegating. Start documenting. You know, that's good, the interplay, you know, I mean, can you hear me now? Like, this is. This is what I do. Just write things, you know, like, I like it. What. What else should we be doing, Mark? That. I mean, a lot of people, obviously, documenting, taking control. What else? What are things we need to start doing?

[A]

Here's the number one thing. I've been talking about this last year and a half. It's just really evolved to something very special. And this is for you too, Ryan. Just everyone listening should be doing this. And that is integrating your family into this business. So let's assume you're stopped delegating. You're starting tracking. You're treating your business like a business. Understand your card table moment. When was that moment? When I had that great idea. Every small. Every big business started out as a small business. And there's no such thing as a small business, as big ideas. And you've got this idea and you want to make it big, and you've got this dream, that little nucleus. Share it with your family. And how to do that is called the family board. I want you to have a family board and a family office. You don't have to be a billionaire to have a family office. Your family office is that third bedroom down the hall with a couch in it. That's your family office. Let's start writing off a retreat with our family at least once a year. We could be writing off dining as we go out as a family and talk about business. We can be paying for our kids cell phones. Whether at college or even in high school, our kids are going to be helping with the business and social media or stuffing envelopes or cleaning rental properties. Our. This is family. I mean, do we have to watch the Godfather, for crying out loud? People, treat your business like family and have a family board and a family meeting. It makes your LLC or corporation more legit because you're having annual board meetings, like all of you know you should be, and you're writing off crap your accountant doesn't even talk about. All of my kids. It was so funny, right? At Christmas, my kids love it. They come down to the Christmas tree. All my kids are over 18 now. They come down to the Christmas tree. They go to their Christmas stocking. We still try to do that. It's fun. And they go in there and there's their 1099 for the year. It's just adorable. They love it. They get their 1099 for the year for all the money I gave them during the year. Because I'm taking a tax write off. They're in a lower bracket. They can pay tax at a lower bracket. They're building their lives. You want money from me? You're getting a 1099 because you're on my board.

[C]

I love that. I love that. Mark J. Kohler, he is Main Street's tax lawyer, tax advisor and lawyer 1. I don't want that to get confused. You got to know that before you leave this episode. But Mark, I love that I'm going to start giving my kid. I got four boys all under the age of 15.

[A]

So oh my gosh, dude, think about this. Your kids don't pay taxes this year on the first 14th grand and change 15 grand. Change the numbers. Just change for inflation. So your kids could earn $14,000 a year at working at McDonald's and pay zero tax. No one in America pays tax on their first standard deduction of around 14 grand, let's say. Okay, so you got four kids that could work anywhere and earn 14 grand. Why aren't they working for you? You can pay your children under age 18. You don't have to give them a W2. There's no FICA, there's no FUTA, there's no workers comp. And it's outside labor. And the right line item. I teach all that we talk about on our shows. It's in my books, blah, blah, blah. But your 4 kids if depending on their age and what they're doing, the business, let's say we're paying them five to ten grand. Four kids, average of seven. There's four times seven. We're at 28 grand. We just got a $28,000 tax write off. So you're going to be paying for school lunch, school clothes, soccer, football, all that. You're not paying for it anymore, Ryan. They pay for it. You're transferring money from your company into their bank account and they pay for school lunch and sports. Now you just got a tax write off for that and you can even double down and form an IRA for each one of them. So now each of them have a Roth IRA of seven grand a pop if you want. And now that can come out for college tax free. So I've got my Roth IRA going. My kids are on the payroll. We're having board meetings as a family and I'm taking my four kids out and I'm teaching them about business. They're selling books at my table. They're at the event checking people in. They're ushering people at the event. My kids Learn that my life is business and my passion is going to be their passion if they want it to be. That's how succession happens. So many business owners think they're just going to plop a business on their kids when they're 28 years old and they're going to get it. They're not. They're not. And so you got this incredible tax deduction right now while your kids are under age 18, the board meeting for better asset protection, more tax write offs. You're building wealth in their IRAs for them in college, and you're teaching them about your business. There's so many birds you're knocking out with one stone, I can't even count them all.

[C]

I'm doing about one fifth of what you just said. I so notes taken. And I'm not the only one. I mean, I'm doing it. They know Daddy works. They're integrated. They come. I make it clear. They do things. They're doing a lot of what you said, but I'm not following it the way you're describing. So Ryan offered needs. Mark CALLER on.

[A]

Ryan, you're awesome. And I just want to say this for everybody. I know our time is almost up here, but what could happen? I want to warn everybody. Ryan could get off this podcast and go, I gotta call my accountant. So he picks up his cell phone, calls his accountant go, hey, what the hell, Tom? Why am I not putting my kids on the payroll of my schedule C? I got an S Corp over here, I got a 1065 and an LLC over here. Why my kids not on my payroll? Well, Ryan, you can't do that. Well, because it's high risk. And because you know what? 9 times out of 10, he's not going to jump on the bandwagon with you because it wasn't his idea. And so he's going to be offended that you brought him a tax strategy. This is the problem with me trying to educate accountants because they are so scared that they're going to go, oh, my gosh, I should have told Ryan that that's what's going on in his head. But he can't say that. So now he's going to poo poo Mark Kohler, which is bs. I've got more credentials and more writings behind me than any other accountant in the country on this. And I'll stand behind it. And I teach other accounts this. They just got to own it, go to their clients and go, you know what? I got to be a better advisor for you. We're going to Put the kids on payroll in 2025. Let's do it. And Ryan's going to go, great. You're not going to be mad at him. You're going to say, thanks for pulling your head out of your butt. Let's go. And so people, when you go to talk to your accountant, if they're going to poo poo, good strategy and make you feel like a child, which they can do, you say, bye, you're fired. I'm going to go to Mark Kohler's network of Main street tax pros around the country, interview one of those because I had to take 900 quiz questions, watch 75 videos, be in a training with Mark every day, and speak Mark Kohler so I can get a consistent effing answer between my lawyer and accountant. That's where you go and you fire your dumb ass accountant. Sorry, I got a little off the chart there.

[C]

That's all right. I love it. I think I'd approach my accountant with, you know, why aren't you doing this? I. I like to approach mine, you know, kind of like my wife. I like to come with sugar, not the salt. You know, like, hey, baby, you know, so I'm gonna, I'm gonna go to him gently, you know, There you go.

[A]

Certified with Mark caller. He'll bring your clients.

[C]

Yeah, no, you know what I think? Duolingo, you know, it's not Spanish, it's not French. We need Mark Kohler on the duolingo, the newest language to learn. Thank you. Yeah. Yes. I love it. Let me ask you one thing. As we close out Mark, talk to me, because there's these fine lines between law and finance and tax and all that. And I know you're not a financial advisor, but something tells me a lot of these things are all tied together. Where do you fall on the crypto bus?

[A]

Then you throw out crypto. Okay, I'll answer both those questions.

[C]

Yeah.

[A]

First of all, I am a financial advisor, everybody. Your accountant should be a financial advisor.

[C]

Exactly.

[A]

But I'm not. But listen, I'm not an investment advisor.

[C]

Yeah.

[A]

I don't tell you what to buy and sell. That's an investment advisor. So, Ryan, the way I like to say, yeah, I give damn great financial advice. Get out of debt, save more, get organized, and quit effing around on the weekends. That's great financial advice. There's no license for a financial advisor. There's a license for an investment advisor, which I am not. I'm not going to tell you what to buy or sell. So there's the distinct. And I think people should be asking their accountant for financial advice. Holy shit. Tell me what I've done. 10,000 consults. You kind of alluded to that at the beginning. You're saying in 10,000 consults, what have you learned? And I can share that financial wisdom. That's not a. Yeah, I'm not. There's not a problem there. Anyway, crypto freaking love it. I've got some XRP that's kicking ass right now, I'll tell you that.

[C]

Yeah, me too. I saw that today. It's up like 10. I bought it like 60 cents, like, four months ago.

[A]

So we've hosted now in the last four years, three national crypto tax summits for two days. I teach all the strategies of crypto mining the metaverse, staking all the different strategies inside the an IRA with crypto. And we have crypto IRAs at our directed IRA company. All of Mike XRP is in a Roth IRA tax free. And so we just love crypto. But I'm not telling everybody, go, don't go buy crypto.

[C]

You're not making a specific. And that's why I didn't ask, because I wanted you to. You know, we both like xrp, obviously. However, we're not saying, go buy xrp. I mean, I'm asking you for exactly how you answered, which is more how the tax world and setting it up properly and all that sort of thing, which you kind of nailed. I mean, is it. It's obviously. That could be a whole show in itself. Maybe that'll be part B. Yeah. Mark?

[A]

Yeah. One of my trainings for our accountants in our program, they have a whole module on crypto so that they understand how it's taxed, how to transact with it, how to take crypto in your business. The IRS has task force on crypto. It's the blockchain people. It's public. There's prosecutions now, more and more of people trying not to pay taxes on their crypto transactions. Don't go there. And by the way, everybody, there's no such thing as a crypto tax. There's freaking crypto, like the dollar. That's what it is. If you make money, you're gonna pay tax. Deal with it. So I teach a lot on that. We got a lot of podcasts on it too.

[C]

Mark, what fueled you? Like what? You know, like, there's this abundance of energy. Obviously, neither one of us are sheep, you know, so. But, you know, you're obviously not watching Netflix reruns, but. But I always like when I see successful people, I end up asking this question. I've asked Grant Cardone, I've asked a lot of people and everybody has a different spin on it. But what fuels you? What drives success for you?

[A]

Well, it's the Rockstar Recovery Lemonade. It's hydration and energy boost all in one zero carbs, zero sugar. I love this. And by the way, Rockstar sent me a whole box.

[C]

Exponent is the official sponsor of right about now. So. And they have no artificial flavors, no artificial energy, plant based adaptogens. So I'll send you a case of this. I love it.

[A]

I love it. Yeah, well, what fuels me is I just. I just. There's something deep inside of me. I just love the American dream. I love people being able to be independent and take control of their own destiny. And if I can be a part of that magic and, and helping them find their one thing. And. And I love that from City Slickers with Billy Crystal when he went out in the, you know, to move cattle and he's like. And Curly told him there's just one thing and he's like, well, what's the one thing? What's that one thing for you? And if you. And building a future and wealth. I hate to tell everybody, I'm sorry, we don't live in caves anymore. We've got to make it a priority. It's a huge issue with the quality of life and our relationships. And if I can find out that one thing, I love to do that passion and I can help you take that to the next level and build it and make it self sustaining and you can leave a legacy with your family that I just love that. And so that's what I'm all about. And helping people find their American dream and then live it.

[C]

The devil's in the details. And Mark, you're on it. Hey Mark, work everybody. Keep up with what you're doing.

[A]

Well, everybody, easiest place in the world. Markjkoler.com Mark J Asanjali Kohler K O H L E R.com and if you're a tax advisor out there or want to be a tax advisor. Holy. I'll equip you right now. Holy crap. To go out and make money as the industry needs you. The tax industry is on fire, Ryan. It's just really ugly right now and people need good tax advisors who are out there. Business owners. My podcast is there. Our law firm. You can get a consult with one of our lawyers right now to help build your plan. Is very affordable. We'd love to be a boutique for the small business owner across America. Directed IRA. Anyway, all the resources are at markj.kohler.com workshops the social media. I'm just honored to be here. Honored to be here. Brian, thanks so much for having me.

[C]

Hey, Mark, my pleasure, man. We'll do it again if you're up for it. And we'll have show links to all of Mark's stuff. Mark j. Kohler. We need more marks. We appreciate you, brother.

[A]

Hey, thank you, man.

[C]

Hey, guys, you know where to find us. Ryan is right.com you'll find highlight clips, links to Mark's stuff. Of course, social media, that's where we're growing. That's where we're blowing up. And check us out on YouTube. You gotta watch this episode. Mark looks so good. We'll let him forgive the rock star, but you know, we'll get him on the exponent. We'll get him. We'll get them switched. But we appreciate Mark for bringing it from main street to your home. We got you. Next time anytime. Right here on right about now, this.

[B]

Has been right about now with Ryan Alford, a radcast network production. Visit Ryan is wright.com for full audio and video versions of the show or to inquire about sponsorship opportunities. Thanks for listening.