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

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.

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."

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.

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.

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.

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."

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.

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.

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."

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.