IT IS NOT HOW MUCH MONEY YOU MAKE
IT IS ABOUT HOW MUCH MONEY YOU KEEP
Whoever have played Cash Flow 101 or read about the CashFlow Quadrant can understand that Employees and Self-Employed are the ones who pay the most about taxes; and they more they make, the more they pay. So, working hard as an employee or self-employed does not make any sense, because you pay more taxes.
On the other side if you are a Business Owner or nvestor, you pay less or zero taxes legally. How is that possible? Financial Education is the key
If you are either employee or self-employed and try to make extra hours or have a part time job, at the very end you will pay more taxes. Please STOP doing this. More benefits at th end of the post.
If you decide to play different rules and become a Business Owner or Investor, and follow the right tax advice, so you can work harder (on their investing) and keep more of your money legally preventing the government from taking you as taxes. Business and Investors creates JOBs.
Tax Preparation and Tax Advice are different
Every March and April of every, the poor and middle class people try to save as much money as possible by either preparing their income tax on their own (cheap software) or following friend advice or very poor tax advice.
The main issue is that they focus on the “tax preparation” and ignore the tax advice, because it is “a little more expensive and might look complex”. By doing this, the poor and middle class will pay more taxes now and in the long term.
If a real smart "Tax Advisor" tell you in advance “what are our goals, how to make tax avoidance (that is not tax evasion) and if you share as much information as possible, you will maximize your income tax return.
Keep in mind that from now on that as soon as you change this mindset you are creating a long-term tax strategy, which will lead you to look for a professional tax advisor, so as to it is worth to pay those professional fees.
How to choose the right Tax Advisor
Get started looking for asking investors and business people who are they tax adviser, call them and make an appointment and make your decision. The more financial education you have, the better financial decision you make.
For example it is really good to understand what your tax code is in order to maximize your income tax return. If you get the right tax advisor you don’t need to have very depth knowledge about taxation and the whole process of how taxes work; it is the tax advisor’s job.
A great TAX ADVISOR is like a great magician, but he does not make tricks.
At the very end you will have to consider one of the following types of tax advisors:
· Certified Public Accountant (CPA) – CPA’s are licensed professionals that must meet the board’s prerequisites and have good levels of continuing education. CPA’s are good for those just starting out or those with straightforward tax returns. CPA’s offer different sort of services and also specialize in tax planning and preparation.
· Enrolled Agent (EA) – EA’s are licensed by the IRS and are specifically trained in federal tax planning, preparation, and representation. They focus on preparing taxes and may specialize in tax resolution. Yiu can hire an EA when you have out-of-state returns or when you need to resolve a dispute with the IRS. They represent taxpayers before IRS audits, collections, and appeals.
· Tax Attorney – They are licensed attormeys that focus on the small details of the tax code. They provide guidance on difficult legal issues such as estate planning, tax disputes, and business law. Keep in mind that tax attorneys are not accountants and as such do not typically have as much knowledge in maximizing your deductions and tax planning.
At the very end you need to make sure that the tax advisor you hire is the one best suited for your needs. You have to keep in mind that a good advice from a tax advisor keeps more of your money in your pocket, instead of giving it to the government.
Never ever “hire Joe, who knows something about taxes”
As an EVG member you will get more benefits, no matter where you are in the world. Taxes are very similar in most of the countries.