In part two of our tax planning series, we are going to continue talking about getting our financial houses in order and ending the year strong. We have Weldon Wulstein back with us again for this episode. Weldon is the CPA and owner of Wulstein Financial Services and Company.
Weldon is going to answer all your tax questions on the show today. He shares about the future of the airline and real estate industries. Then we talk about what you should be doing now to prepare for the end of the year. We wrap up our conversation talking about flip accounts and retirement plans.“This year it is really key to start preparations sooner than later.” -Weldon Wulstein Click To Tweet
- [00:48] The recovery of the airline industry is going to depend on travel. Business travel has mostly kept the airlines afloat but that has pretty much ceased.
- [01:34] Private aviation is soaring right now. More companies will most likely buy their own planes.
- [02:42] Weldon predicts that commercial properties around the tech industries are going to be suffering.
- [02:56] If you want something to be deductible, get creative.
- [03:01] Deductions have to be ordinary, necessary and have a business purpose to them.
- [03:36] If you get audited you have to have the documentation to support your deductions. If you don’t you can receive penalties and interest. You often won’t be audited for several years so document on receipts why they are business expenses.
- [04:48] There will be a separation between elite airlines and discount airlines.
- [05:43] Right now everyone needs to start by getting their accounting records up to date and in order. Then the next step is to do a review of the last three years.
- [06:21] After everything is in order then you can look at what assets to invest in for tax savings.
- [07:12] The minimum documentation that you need to get together is a profit loss statement including total revenues and different categories of expenses. Plus getting all tax documents together.
- [09:36] This year it is really key to start preparations sooner than later. Get your stuff in order early especially this year because everything is so far behind.
- [11:25] The difference between the S Corp and C Corp is that the S Corp flows its income down to you personally or to the owners. There are limitations as far as who can be an owner of an S Corp.
- [14:25] Before hiring a bookkeeper, do a lot of research on what they have done. Look at some of their other work and their process. When you find a good person, talk to their existing clients and get their feedback.
- [15:23] Be sure to visit our new calendar on the Integrated Wealth webpage so you can get a view of what we are doing month to month.
- [16:01] Next week, Scott will be talking about entities.
- [16:40] You need a retirement plan attached to a company so you can utilize those revenues to make your contributions.
- [17:03] For the cost of a self-directed plan that amount of stock you can invest in compared to the traditional is incomparable. If you are at an upper-income level you need to have a self-directed retirement plan. Weldon recommends a 401K.
- [18:44] A flip account can be a great opportunity if the person really pays attention to their company and has its infrastructure in place.
- [21:14] It is important to get a team and stop trying to do everything on your own then you can focus on your sales.