The Troubleshooter 2-1-24

Y'all ripped off news. Need advice so you don't happen. Come running just as fast as we can. Shooter's gonna help me. Come Man Dix is the Troubleshooter Show. No Tom Martino, Hi, Tom Martino here, Welcome to the show, A very important show. Today we're gonna be talking about taxes. Yeah, what's going on with taxes? Man? You know we went through a lull there for a while with the IRS because of COVID. What's happening now with the IRS? What's going on in the future? Are

there any tax things you can do before April fifteenth? What can you do for planning of this year? Our goal is always to pay fair but as low tax as possible. Nothing wrong with that as long as we follow the rules. And Eric Reinemer from Atlas CPAs in a financial with US Atlas Firms dot Com. It's been my accountant for many many years, both with the Troubleshooter Network and me personally. So if I end up in jail, he's going to have to bail me out. That's just an accounting joke. Boom

boom. You know. Uh, the the joke about accounting is, uh, you have an accountant, and you have an attorney. You asked the accountant. You asked the attorney how much is two and two? And he says The accountant says four. All right, you asked your attorney how much is two and two? Do you know what? He says, Eric Renner? Do you know? Oh? What do you want it to be? Exactly? You did? Did you? Did you know that joke? Then that's an old joke. What do you wanted to be? Okay? Three

O three seven one three eight two five five. Now let's get to a problem that's pretty serious. Tina called, and I wanted to get on this somehow. I think I had somebody call. I thought I had somebody call the pharmacy. I wanted them to allude to a some kind of media. Maybe investigation would help, I said, maybe of Deputy Dollar calls. I think I said that with Dollar. But we had a couple calls about this. Apparently what happened is anthem, right, blue cross, blue shield or

whatever. Tina helped me out. Here was it anthem? You had it? Is anthem? An anthem switched? Well, they took over a compounding pharmacy. It was Carolin switched to Bioplus right now. I have this. So earlier we had a call from a woman, Gemma, and she has MS and Carolin RX went to Bioplus because Elevant's Health, which is Anthem, actually took over this pharmacy and therefore wanted everyone to go through there. Oh

I know. I asked deputy doctor call there and to just make some you know, some just say hey, we're looking into this and maybe that would help. And the situation is dire. People can't get their drugs. I mean they switched to a new pharmacy and the new pharmacy can't fulfill the orders. Have you learned anything since you've been on the show. Well, I called today because finally, yesterday somebody put me in touch with a higher up.

So I have an email and a phone number, and I'm hoping that Jemma called or you guys have her contact information and can pass it on because she walks through everything and said, okay, shipman is set for today, so fingers crossed, my son's medicine should be here today. Okay, did they know what the problem was? You know, i'd even I was so happy to get someone higher up and I just praised her and I didn't want to get into all of that, because I definitely wanted the medication. There's

time for that. Act. You keep us informed. I will, and I want to know when it happens. That's what I want to know, when it actually when you actually get it, and I just really want I don't know if you guys have Gema's contact information, because her situation is a little more dire than my son's is, so I'd love to get her that information and maybe she can help her out as well. Deputy Doc, didn't you get I think Deputy Doc got Gema's information or Kaschina maybe you got it

to give to Deputy doct it. What's that Doc? I never got a message to follow up on this. It was I'm sorry when I'm not here. Yeah, we we wanted you to call down there. But listen, here's the deal. Let's hold off right now anyway, but then we'll get Gema's information. We'll call Jim and let her know in fact. Yes, well let's try to get Jemma on. Thank you, Tina. I want to ask is she We'll call back Jenna and get a follow up to see

if she's hurt anything. Three O three seven one three tok seven, one, three eight, two five five. This hour brought to by waterpros dot net. I love deals and I love good water. By the way, as I've said before, we eat organic food, we have supplements, but we seldom think about the water. We ingest and bottled water, forget it. If it's plastic, forget it. Water Pros at your kitchen sink under one thousand dollars fully installed. That's it, man. You don't have to

worry about plastics or anything. It's three oh three eight six, two five, five five four. Let's talk to Eric Reinemer again at the CPAs and Advisors. We have a number of situations when it comes to taxes, first and foremost accounting for taxes. Many self employed people don't account for taxes, and that's one of the things that they have to do. If you do not pay quarterly. What happens at the end of the year when you have

a tax bill. If you're self employed, you basically pay interests and penalties and whatever you're short. And with raising interest rates, what's really eye opening is the IRIS rate. Now it's like seven or eight percent, as the federal rate has gone up. What the IRIS charges you for being late has gone up, so you don't pay in you're basically ten or fifteen percent a loan with the IRS at that rate, so you end up paying a lot more than your normal tax a bunch yep. So if you're self employed,

do you guess, I mean, how do you do? You pay in the rears quarterly? So you look at what you made the first quarter and send in an estimated payment, and you do that each quarter. Yep, each quarter, just as if you're an employee, you just just if you're filing taxes. Yeah, just like having money withheld when you're an employee, you got to do it for yourself when you're self employed. Okay, So you send in a payment. If you end up at the end of the

year sending in too much, you get back. If you don't send in enough, at least you will not be fined. Right, that's the short of it. That's the basics. Unless you really underpay, if you don't pay at least what ninety percent of your obligation, you're fined, Yeah, or is it ninety percent of the previous Well, the safe thing is if you pay it one hundred percent of it you o the year before, you're

never dinged, even if you don't pay the balance until April. So first you got to get onto a regular annual plan, right, and then kind of gauze it year by year and be disciplined. You know, I don't hear from anymore the nuts that used to say income taxes unconstitutional and they were tax protesters. I don't hear from them anymore. Are they all in jail? Well they're not. Actually I have a client, maybe he's a former

client, sovereign he said. He told me, he said, Eric, I've a new a lot of research and I'm based on some ruled in seventeen seventy six. I'm removing myself from the system, so you don't got to worry about my tax return for this year. Did he really say that? What did you say to him? I said, well, just he said, you're either going to be hearing a lot from me because I need help,

and you're not going to hear from me at all. And we haven't talked in about six months, so I have no idea where it's going to go. It would be nice to do that, if you could, it would be great. It's rules were real, right, But there are so many people that believe that. In fact, I have people that listen to this show that truly believe that income tax is unconstitutional. If you look at the code, it does get confusing. Originally, income tax was supposed to

be on profits and not necessarily normal wages. And you could make the argument there is no profit in a normal wage. You're working, right, I mean, but it's been argued people have gone to prison. There have been so many people that don't pay tax that have gone to prison. And here's the deal. If you want to discuss taxes, that's fine, and we're not going to get into whether it's legal or not. I mean, I think it's been argued and argued and arguing. But the bottom line is you

pay your tax quarterly. If you're self employed, what if your employer withholds and you have work on the side and you end up owing a lot, can you get penalized for work on the side, like extra work or not?

No, that's fine. A lot of people have multiple income streams, but if they don't withdraw or make payments tax payments on the extra money, I'm asking can that result in a penalty If you're making a wage and your employer's taking out of your W two your normal taxes can Is there a world in which you can make enough money that would put you into a penalty. It all depends on when you put together your wages and your other earnings and

if you're short or not. Collectively it's just one big bundle of income that gets looked at. So if you truly make a ton of money on your own on the outside of your W two, you could end up having under paid to such a point where you could be penalized. Absolutely, okay, So it's one bundle. It's not Hey, I got money being taken out of this job. I don't have to take it out of any others. It depends on the amount and what is the highest tax bracket right now?

Do you know thirty seven percent plus? Stay right plus state plus. Now there's this net income tax of another one point. You can get up over forty percent pretty quickly. You can in Colorado you can get up to forty two percent. Okay. Three other three oh three seven one three eight two five five. We have a lot to talk about. If you have any questions on doing taxes, last minute preparation questions you might have on deductions, give us a call. Three L. Three seven one three talk three oh

three seven one three eight two five five. Frank Durand the real Estate Man can help you prepare to sell your house, or you may decide not to. With his market evaluation. He'll tell you what your house is worth based on today's market, with interest rates, supply and demand and all other factors. It's free of charge and you can trust Frank to do this with no obligation. Three oh three nine two zero sixteen twenty two. Go with a

sure thing Denver's Best roofer Excel Roofing dot com. You don't pay a cent until you're content. Wait time for an insurance checkup free no obligation. Comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three oh three seven to seven to one help. You'll think you're his only customer when you choose Frank durand the real Estate Man dot com to list your home with Remax Alliance three oh three nine two zero sixteen twenty two.

Hi, Tom Martino three oh three seven one three talk three oh three seven one three eight two five five. We have Eric Reinemer with us from Atlas CPAs and financial advisors. Bill has a question or a comment or something about a four oh one K. Hey, Bill, what's going on? Hi? It's actually about an Ira, a roth Ira, and I had some unexpected income that came in at the end of the year with an incentive stock purchase. So I know I'm over the income limits for the IRA Roth.

I know I have to pull out the deposit. I know I have to pull out a certain percentage of what it made. My question is can you just wait for the I R S to tell you to pull that out and how much? Or do they direct you how much? Now I'm not understanding though you you you have a wroth four oh one K right, I'm sorry, a roth Ira? Okay, Well that's fine, it's a roth Ira. And then you mentioned something about incentive stock Your your your incentive stock option,

but your your incentive stock option. Did you exercise the option? I did, so it just counts as regular income. Well, well, no exercising it, okay. Non qualified stock options count as income when you exercise it, but not incentive stock options. Incentive stock options only count when you sell them. So did you buy and immediately sell them? Yes, sir, Okay, that's why and you didn't hold them for a year. I did not, so there's no long term but got it? So now,

no, I get exactly what you're saying. So with an incentive stock option, you do have ordinary income if you strike and then sell, and that's what you did. How much income is that? It was around forty five thousand dollars and then so that so the taxes were withheld the state, federal, social Security. All that was withheld properly, or maybe even a little more than should be. But now when I come to look at what I should have been able to deposit into my wroth ira, I'm above the limit

that for twenty twenty three because your income was higher. Yes, sir, I think because let me get this straight, Eric, with a wroth ira, which by the way, is after tax money that grows tax free. With a roth ira, as you make more money, you can contribute less. Yeah, you max out for married couple around two hundred thousand. You can't do it if you're over a certain income level. Now, but what

you're saying is, or a little bit of it. What you're saying is you contributed too much to your wroth When you take into consideration the income from your stock option? Is that right? That's correct? Okay? And how much more did you contribute than you were supposed to? Well, by my calculation, I shouldn't have contributed to anything. So for this sue, why is that? How much was your how much was your total income after that

stock option? Two hundred thousand? And I believe the limit is one hundred and sixty some for twenty twenty three for an individual for an individual, So I, in my own right, you're in other words, you're not eligible for a wroth and mark the back door, which we can explore that that's very complicated, But back doors don't all complicated. Back Doors do not open when you make too much money. No matter what you make, you can't no matter what backdoor, you can't use a back door, right, can

you? Like if you make too much money, is an income always the ruling factor? Yeah, but you can do a back door, like you can make a million bucks and then have your broker. It's like a two step prop. Okay, how is that? Let's talk about that. How do you do it? You have to first have a wroth or not. You have to have a wroth account. But you for your first step is a non deductible IRA and then your broker shifts it into it's a way to get it into a ROTH. But it's a two step process. But but

but here's what I don't understand. Everywhere I've read it's still a subject to income limits. But you're saying it's not. No, if you have no other do you have another retirement plan? Sir on the phone, I have a work for one K, both traditional and IRA, so let's talk about that. Yeah, so you should be able to still do this in a

back door. You won't get a deduction, but you should be able to talk to your broker and just have them converted into a non deductible i R. What do you mean, an That's what a wroth is, a non deductible IRA. It's it's you take after tax money, you put it into a wroth. Right, but people are still make non deductible contributions to an IRA. Right, but it's subject to income. Uh? No, is this okay? So I can make if you have an RA. Let's let's

make it simple. If you have an IRA and a wroth both in Schwab or both wear it. I have an IRA in Schwab, so what can I so you can put eighty five hundred bucks or whatever you're allowed to contribute to your IRA. It's probably around eight nine grand whatever it is. Not if you can take it, then you call up or log into schwab and then you transfer it over to your WROTH. That's it. Okay. But the eighty five hundred you say I'm allowed to put into an IRA, I'm

not allowed to contribute eighty five hundred to an IRA. Okay, I'm mark. I wish I was allowed to. But why do you think you can? How much can he contribute to an IRA? Well? Because of his income? Uh? Because he's already doing a four oh one K. I can't he's maxed out because he's over that to that one? Then could he not transfer it from his four oh one k then to a ROTH? What

would be the benefit? Yeah, I'm not sure. He's already maxing out his deductible four A one K. What this guy's needs, what this guy is trying to do? Is he contributed to a roth he should not have? Is there anything else he can do with that money? Let's get right to that well and do I wait for the I R S to tell me how much to pull out of the roth IRA. Well, it's the whole contribution for that year, so you're going to wait, he would have sent it, but it made during the year. Do I want to do it

before April fifteen? You you already said do it before April fifteen. Yeah, call your brokerage company and just tell him the situation and they'll move it out of the IRA bucket. Yeah, I understand, I got to move the deposit, but they will help me figure out again how much the deposit made in twenty twenty three. And yes, until I pull it out, they will do all that. That's their job, and they will send a note to the IRS with my taxes, here's what happened, and then the

IRS will pursue me and you won't hear from me. Tom, you won't be in jail. Listen, here's the deal. Okay. I just want to make something clear again. If you have a four to oh one K, you can't do a wroth in addition to that, or you can if you're over the can, but yeah, not income pies. Just go ahead, Eric, What if you're already doing a fully funded four oh one K,

then you can do a wroth and IRA on top of that. If you're over the income limit, okay, but you could, instead of putting it all in your four oh one K, for example, put some of it in an IRA. So you're still under that limit, then you could backdoor into your wroth account up to a certain amount of money. Zach, Right, that is true. That's a more complex situation. You could do that, But I do. I do it every year. Well okay, Well, like I said, that doesn't necessarily mean it's correct, but I'm

not saying it's incorrect. So explain that you take instead of making a full contribution to a four to oh one K, you put some of it in an IRA. If you're asking me, I don't have a four to oh one K, I have a SEP, I have a wroth, and I have an IRA, and then we have a few other tools I'm not going to get into. But what I do is I put the max. I

can't put any money into my wroth because I make too much money. What I end up doing is I fully fund my step to the maximum amount, and then I can put up I think it's eighty five hundred somewhere around there into my standard IR whatever the max I can put into there. Then I can transfer that over to my ROTH account. It's called a backdoor ROTH. I understand the transfer part, but first you have to have the ability to have the money into an IRA to make that transfer. That's the point I'm

trying to make. And with a four to oh one K, it's not the same as what you're doing with a SEP. Well. Well, the only difference that I can think of is most four oh one k's are controlled by the company. I don't even know if you're allowed to like transfer money out of your you know, target four oh one K into an IRA.

I have no idea what those you can you can if you had, if you have, if you maximized or funded well, let's say you didn't even maximize, you funded your four oh one K throughout the year you and your company match or whatever happens, right, I don't know why you couldn't transfer that the same way into a WROTH if you had a WROTH. Is that possible, Eric, I don't know. Here's what you go ahead, Eric, I'm saying mark in service rollovers you're talking about, Okay, it's different

than a STEP. It's different when you have a four oh one K that's established the plan has to allow for an in service rollover. Okay, otherwise, otherwise you're penalized and its income. Once you have a four oh one K and you do an in service rollover, you can roll it over to your I R A or into an annuity or whatever you want to do. That's what Then you could roll it. Then you could roll that amount directly over into a wroth. Okay, right? Why? Er? Why?

Here's what I don't mark. This is what I don't understand because you don't do that later, because why would you do that? Because you'd have to pay tax on that money to get it into a wroth, wouldn't you don't you have to take a taxable event to get it into a row. In other words, the whole idea of a wroth is it's after tax money and

that grows tax free. But if you take qualified money that you never paid tax on and you put it into a wroth, are you suggesting the wroth IRA will grow tax free and when you pull it out you won't pay tax either? No? You you you could possibly pay taxes on the portions that went in there from a different qualified plan like the four oh one K or the IRA. I'm not sure how that's we need to know what we need

to do. And and to Eric's defense, he does a lot of stuff with taxes and all of that, but this is more of a financial place. I bet, I bet he's got I bet Eric, you have clients that you do a backdoor WROTH each year. Yep, we have a few clients to do that every year. Yeah, So explain what you're doing. Market's a little bit more complex because you're using your SEP vehicle, which is like a different than a four oh one K. They're sort of different,

but they achieved the same thing. But when you got to the business, you can do an SEP. So I hear what you're doing, Marcus. Yeah, yeah, it's a little different. But hold on, hold on, I just want to clarify. Eric's got probably more than a couple people, and I know Atlas in general does that. Each year they'll contribute to their IRA and then they'll transfer and backdoor into the roth. Is that correct, Eric? Correct? Yeah? Okay, anyway, three oh three seven

one three eight two five five. I hope this is not too complicated. But when you have questions, we'll take them right after this. Go with a sure thing Denver's best roofer Excel Roofing dot com. You don't pay a cent until you're content. Time for an insurance check up free no obligation. Comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find

out now three oh three seven to seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax a lot three oh three nine two zero sixteen twenty

two highs. Tom Martino, your troubleshooter. We're going to get a tax expert on to talk about in service rollovers, doing it correctly avoiding penalties because you're under fifty nine and a half and you take anything out if you take it out to put it into a really a wroth is after tax money. So if you take it out under fifty nine and a half and transfer it to something else, from qualified to in esse. Maybe maybe I wasn't clear what I do every year. No, no, I understand that I'm not

talkington. I'll be told a certain amount of money, like eighty five hundred bucks that I put it into my IRA, that eighty five hundred tax has already been paid on it. It's not no taxes have been withheld on it. Okay, it goes into my IRA. Then that amount of money, and I think it truly is perfect. Now I understand that that's perfect because you're not messing with qualified money. I get it, you got it.

I get So what happens at the end of the year for me is Mallory does my taxes or Eric does some of both of our taxes, and then Mallory is the one that tells me you can put x amount into your STEP, you can put x amount into whatever else I got going, and then put eighty five hundred into that IRA that is not taxed, and then transfer it over to the ROTH. But any money you put into your STEP is a deduction makes the money it allows, I mean, really a backdoor with

iray. It's a conversion that allows, for lack of the better word, high earners to open up just an IRA, deposit money that has already been taxed into that IRA, then convert that contributed money into the ROTH. So therefore it grows right. And then when you take it out when you retire or whatever age you're at, and decide to take it or have to mandatory take it. You don't pay taxes on the growth. So it is a

great vehicle to do no matter what. And by the way, for those listening, when we're talking about backdoor approaches and squirrelling money in addition to what's allowed, many people assume, well, why would you have to do that? Not hardly anyone makes that much. You'd be shocked at how many couples right now our two hundred thousand dollars. Many, many, many, many couples. I mean, you know, I'm not saying and I don't mean to talk down or up to anyone, but there are people that listen to

the show that are easily in that category that or not. First of all, it's only around one hundred and fifty one hundred and sixty per individual. And the why I say individual generally, and you're in this circumstance, the husband and wife are both going to have the IRA in the wroth. So it is an individual limit for most people, unless if you're single. There's no reason you would do it as a couple. You'd want to do it

as individuals. Now, Paul, you have a question on solar go ahead, Paul, Guysy guys, I was just calling to kind of chat with you a little bit about solar. I've got some people knocking on my door for solar, and I was curious which ones you guys recommend that. Well, none of them that knocked at your none. First of all, I'll tell you don't go with any of them that knocked at your door, right, okay, because nine of them are salespeople only, and they don't give

a lick about solar. They don't know anything about solar, and once you buy, once they get you a contract or out of your life. So if you want solar, go to the experts we know and trust. It's that simple. And why do I both I'd literally go to pro Bid and I'd go to Red Rocks. I'd have both talk to house that talk to both of them. That's right and one. And I'll tell you why I'm telling you. Unless one of those companies came to your door, they're all

salespeople. They don't know anything after the sale nothing. You are on your own and they usually sluff you off to some installers that do nationwide installations. They travel and it's it's a terrible industry, Okay, you can go. I want you to check out both probid energy dot com. That's probid like they're bidding on something. Pro Bid Energy. I'm gonna give you the number

three oh three six two three fifteen thirty one. Then I want you to check out red Rocks r S that stands for roof Andsolar redrocksars dot com three oh three seven zero four two four four nine. Ask them questions. Did you hear anything specifically that was concerning to you? My biggest question is kind of how they structure the deals where they usually have them set up as like a twenty five year loan where you're paying off. Okay, great, great

question. Hold on, I'll come right back to you. Please, this is really important and aarin with taxes. Hang on, ray a question on residency. All of this right after this, go with a sure thing Denver's Best roofer Excel Roofing dot com. You don't pay a cent until you're content. Time for an insurance check up free no obligation comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three oh three

seven to seven to one. Help You'll think you're his only customer when you choose Frank durand the real estate man dot com to list your home with Remax Alliance three oh three nine two zero sixteen twenty two. I'm Tom Martinez. Here's the deal, Paul On Soler. Hang on, We're getting an expert to talk about the different programs so you don't get screwed. Aaron, you

have a question on taxes. Eric Reinemers here from Atlas CPAs and on the back door approaches to roths and other sneaky ways to sneak money into retirement plans. We're going to have an expert on in the next hour. So Aaron, what is your question on taxes? Hey guys, well where do I stop? Okay? So I've used Turbo tax probably ten years. In twenty twenty three, I downloaded the program call twenty two and did an update and it deleted all my Trier text is in the two What oh did it?

It was probably attempting to do a data upgrade like they do whenever you upgrade a software sometimes they go back for the data files and update the data library. That could be how it happened. Did TurboTax have an idea how it happened. They said it was impossible. That's what I'm thinking, because very at the very worst, it would update it. Are you sure it did not just change? Hold on, how do you know they're a race? Let's put it that way. Okay, So I you know I had looked

at the files previously, so you could see. But when you look at your previous here's all I need to know, Aaron, And I'm rushing you because it's the end of the hour. We can continue this, but I need to ask you. Normally before this upgrade, when you were looking at your TurboTax files, were they PDFs or excel sheets or were they buried within the program you had to access? So they were both the PDFs and the actual TurboTax files themselves. And I, okay, there's no way that those

pds. Wow, if they were elsewhere on your hard drive, there is no way that an upgrade would delete those. Well, I know that's what people say, but if you look online. I'm not the first person to actually experience this. But this PDF. Okay, once you did the taxes for let's say tax your twenty twenty, a PDF is created and elsewhere outside of TurboTax TurboTax doesn't even know. Go with a sure thing Denver's Best roofer Excel Roofing dot com. You don't pay a cent until you're content. Time

for an insurance checkup free, no obligation. In comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three O three seven to seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three oh three nine two zero sixteen twenty two d News. You need advice so you don't have come run in just as fast as you can.

Shooter's gonna help me. Come man, this is the Troubleshooter Show. No Tom Martinez, Hi Tom Martino here, welcome. I am here solving problems, answering questions. Say you planes Laar along with the team, of course, and uh, we are taking your calls, and we took some interesting calls I want to get back to we will have an answer or some

information for the TurboTax thing. I have that waiting, and then I have Paul because I have our expert on Paul said he's getting knocks on the door from solar companies, and I told him, don't go with someone because they knocked at your door. Uh. And I recommended Red Rocks was one of the companies. I recommend. There's only two red Rocks roof and roofing US Solar, Redrocksaris dot Com. And I wanted to talk to Brook because he

had some questions about specific programs they were proposing. And I wanted you to weigh in on them, Brooke, because we trust you so much. You're so knowledgeable. So, Paul, what were the specific questions about the programs being presented? So the way that both of the quotes that I've gotten so far are structured is that they're at twenty five year loan at a whatever interest rate to basically equate to what I pay now for my monthly electric bill through

But who gets the tax credits? Yeah, well it doesn't hold on Brook one second, real quick, Who were they proposing get the tax credits? The way that they structure the loans is that there's a loan amount and then there's a payment and if because I would be the one to submit to the tax credit. So once I get the credit, if I apply it to the loan, then my payments, say, is the same at whatever regular rate. And then if I did and I just pocketed the tax credit,

then my rate would go up on my loan. So if you lowered the principle of your loan, your interest rate would go down, and the principle of your loan would go down too. I mean you'd owe less, not the interest, not the interest rate, but your principle. Your principle would be reduced. Obviously, if you apply your tax credit, is that right, right, you have the option of paying down the loan or keeping the money. Okay, So Brooke, that's one program. What was the other

program or were they all alone? No, they were both. They were both very similar. Okay, so Brooke weigh in on that. Yeah, so that's normal. So anybody that finances a solar deal through one of a nationwide installer, they usually have an introductory period of either one year or eighteen months where they assume that the tax credit is going to be put down as a down payment, and so they keep the monthly rate low, and at the end of the introductory period, if they don't receive that as a big

down payment, then it just bumps up. So that's that's totally normal, one hundred percent. How most solar loans are structured. Hey and Brooke, while you're talking about that and tax credits. A few years ago, we would have calls all the time. You know, they didn't make enough money to actually get the tax credit, so it was no good for them. But nowadays you can get the tax credit, and even if you can't use it yourself, you can sell it on an open market, right, yep,

one hundred percent. Yeah, so usually you're going to get about seventy cents on the dollar. So if the tax credit you would have received is ten thousand, expect to get about seven, right, Because the people buying it have to have, you know, some motivation for why they're buying it. So where would you definitely sell it? Yeah, I want to buy tax credits. Yeah, So if it's seventy cents, where's the market on it right now? Because I'm sure the markets on both sides. Someone sells

it for seventy cents and sells it to me for what eighty cents? If I wanted to buy I don't know, fifty thousand dollars in tax credits or whatever, where do I go to buy them? Yeah, you can either broke or the deal. Like we sell tax credits for our clients ourselves, Sophia, tax credits to sell, I would send you over a contract review the tax credits eligible to be sold after final inspection has been approved by the jurisdiction. So, Eric, have you heard of people? Hold on?

Hold on? So Eric, when I'm doing my taxes, have you heard of people coming to you with ready made tax credits that they bought? I mean, he's never heard of it before ever, But I'm sure what do I do? Would I just say I have these tax credits or would there be some proof of it somewhere? Eric? Yeah, there has to be proof of it and a paper trail. It's the same as when you used to be able to sell it was a conservation easement credits. So that's a

very similar program. Okay, So okay, got it? Now what are you far? As? Back to Paul though, So, Paul, a twenty five year loan is not unusual, and an introductory a payment is not unusual. Anticipating that you're going to pay down the principle with your credit and if you don't, it bumps up again. That she said, that's all normal. So really, Brook, do most of your people finance these things?

Honestly, most of the folks that I work with get a heelock or work with their own bank that they've worked with, because if you get a heelock, then any interest that you are using towards the solar project is considered tax deductible, so you're not actually really paying any interest, or they're getting a better rate from their company. So I have somebody who is barring the money against the CD, so she's borring the money at like one per interest

because she's profiting off of the CD. So it just depends on what options do you have. But most of my folks actually choose not to finance through one of the nationwide lenders. Now, the nationwide solar lenders, what rates do they run? Market? No, So you're looking at probably between four and a half and then eleven eleven and a half per cent interest depending the

four and a half interest rates usually have a higher financing fee. Eleven and a half usually don't have any and then it just you know, depends, but it's very easy to qualify for those products. Usually you just have to have a credit score of over six twenty five and an acceptable DEBTA income ratio secure the property. Second application process. Do they secure the property with that loan? Yeah, there's usually a lean placed against the property when you finance

it that way, so it is a lock it away. So, Paul, how much were they quoting on a system for your house? That's where it gets super weird and complicated. One of them was like sixteen thousand for an eight panel system, and then one of them was if I financed it, it was like twenty six thousand for an eleven panel system, but if it paid cash, it was down to like after tax credits and everything else, it was like ten. Yeah. So the second option probably has a

lot of financing fees, like thirty percent in your financing fees. So that's why there's a big difference between doing financed or cash for that second option. Yeah. God, that's a lot of money to pay for financing on that. So well, that's same imagine if you paid interest on a car for twenty five years. Yeah. So, Paul, I suggest you talked to Brooke off the air try to get get a handle on what you should do. I've got emails in with Brooks and with pro good now, I think,

bro now, but with a confirmation of a appointment. Now here's what I want to make. I want to mention no matter who you're dealing with, even good, honest people, and Brooke will affirm this. If your monthly payment is not going to save you money from electric, don't do it. I mean, why would anyone do it? Brooke? Do you agree? Yeah? I think it depends on why folks want to go solar. Some people like the renewable aspect, but in general, whatever you're looking for

out of solar needs to happen. So if you want solar to save money and you're not going to save money, don't do it. Yeah, But if you're doing it for the environment, I guess it doesn't matter. Most people, don't, Brook. Aren't most people doing it to save money?

No? I would say most of the folks that I work with have some sort of other alternative, whether they're worried that they it is going to crash and they're not going to have power, so they're looking up for like a backup supply, or they're looking to you know, be more renewable or whatever. Most folks, the money part actually isn't their biggest reason. For looking into solar What I am shocked. I really am shocked. So it's it's fear. Some of it is fear or pre you know, and others just

they want to improve the environment and wide Brook. Are they the same people when you go over there, they got those big buckets of food that lasts for thirty years. Oh, you're talking about preppers? They are? How what percentage of the people are preppers? Is there like barbed wire around the house. I'm kind of half in half. I have half of my folks are more on the fear, worried about stuff. And yes, I have seen them where they have bunkers. I've been in a bunker before for a

solar system. I boat for a client one hundred percent and then half of them are, like I said, more, you know, on the renewable side of things. So everybody's value set's different. And that's the cool thing about Fouler is that whatever your value set is, we can build a system that makes sense for you. Thank you, I appreciate that work for your value set. Red Rocks RS dot com three oh three seven zero four two four four nine. Thank you for calling, Paul. We got more coming

up. I'm troubleshooter Tom Martine, go with a sure thing Denver's best roofer Excel Roofing dot com. You don't pay a cent until you're content. Wait of it. Time for an insurance check up free no obligation comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three oh three seven seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with

Remax Alliance three oh three nine two zero sixteen twenty two. Hi Tom Martino here three oh three seven one three talk three oh three seven one three A two five five. So back to erin aaron I. I've looked everywhere, including TurboTax and chatted with one of their people, and I also uh TurboTax. If you use the TurboTax online feature, you haven't. Do you have an account you can log in? No, it wasn't online. It was

the downloadable version of TurboTax. Okay, because TurboTax does keep records of your tax returns. And also they said a PDF file is not part of TurboTax at all. Once it becomes a PDF file as part of your computer. So yeah, well what what happened was so I know you think it's kind of strange, but I actually also had a backup draw I attached to the computer. It went in there and deleted them from that as well. And so listen, man, you simply lost the PDFs. It doesn't matter why

you reach out to the I r S. They'll give you. You can even do it online. You can get every transcript you have ever done. Well, that that is actually that is actually my question is that I have requested, uh, you know, the full transcript of all those years. Yeah, your transcript from the I r S. Yes, I tried that. So I filed that form, all those forms in August, and I still haven't heard anything back from them. That's no, no, no, no no, no. That that that's weird. Did you go in recently

and do it again? Well no, I haven't. You know, I yet to pay. I think it's forty five dollars per return and send in the form. So I've done that. They've cashed away. You've already paid forty five bucks, yes, for how many returns? Well, with each return so I did I think twenty one, twenty two. I was two returns to two years with it and you, oh, so you don't want to go. So you already paid that money? Well, yeah, I paid it and I've been waiting for them to send out. Did you pay

it by credit? Did you pay it by credit card? No, you have to pay it by check with the full and okay, so the man that that's weird. If you paid for that in August, you should have had that by now. All they do is verify you and send you a download link. I mean, I don't even understand why you're having such a you're paying money. I mean, we get transcripts all the time for free, so that's the price. I don't understand. But all you do is to IR. You just go to the I r S website, then you

do the I d ME and you download them for free. That's all there is to it. Yeah, they're not the full transcript though, they don't contain all the uh depreciation tables and all that sort of Oh wait, yeah, you're trying to get the actual data itself. You're trying to get the data that's going to be from the turbo tax, right, Well, well, no that you get that from the you know, the h in the Revenue department, you you you know, send in a form. I forget

what the number is, and you know, to request them. And I've done that, and like I said, I haven't got anything back from them yet. I'm just wondering whether that's normal or is it just be lost in the shuffle like everything. No, it's not, it's not normal. It's not normal. And we could call Larsen Tax Relief and ask what you do in a case like that. I am positive they've had to get full copies of returns. Let's get somebody from Larsen Tax Relief on to weigh in on

this hold on Aaron, we'll get that too. Three oh three, seven to one three talk seven one three two, five to five. Ray, what is your question on residency? A married couple in their primary residence the five hundred thousand dollars gain if they sell the house after holding it several years. I understand you pick capital gains above the five hundred thousand for the two What happens when the first party dies and you supposedly get a new basis?

How do you figure the basis? Okay? Eric, you go ahead. Yeah, if it was a married couple and the partner dies, you get a step up of one half of that actual cost on the day of death. Yeah, on the day of death, you get a step up to that fair market value, which will reduced to gain. Okay, could you give me a dollars example how that would work? They started. So, let's say the house is what's your house worth? Say it was purchased for,

not what it's purchased for. What is it worth? Seven hundred thousand? And you're gonna and it was purchased for two hundred, right? Is that what you're saying? I was purchased for one hundred, one hundred. Okay, so six thousand and six hundred thousand in capital gains. If your if your spouse was still alive, you'd have the five hundred thousand dollars deduction. But let's say she died a week ago. Your basis on that house half of it, fifty percent of it is now on that fifty percent seven

hundred thousand dollars. So the math doesn't no, mark, it's half of that. He gets a step up. That's what I said. Half The math has not changed, is my point. It's the exact same math. So if your house is worth seven hundred thousand, now you're going to have a basis of of your the one hundred you paid for it, and then the additional three point fifty your basis will step up to four fifty. Okay, and how do you document the value at the time of deal? I

don't think you stated that right town. No, Well, let me mention this here. This is this is another situation. When there's a married couple and one spouse dies, you still get the five hundred thousand dollars exclusion for like two years, but after it goes past two years, your exclusion reduces down to two fifty. Oh you become a single person. Yeah, yeah, yes, so you but his basis will still be higher. That's true. You still get that step up in the ass but your bait, but

your exclusion goes down. So are you going to First of all, did you have your wife die? Aaron? Aaron? Sorry, I'm Ray, I guess what's that siring to someone else? I'm oh, Ray, I'm sorry, I'm sorry. Residency. Sorry it was on taxis and Ray, Yeah, I'm sorry, did your wife die? No, I'm just looking at it for my sister and a cousin and myself when the time comes. Okay, but here's the deal. What Eric said is very important. You get a stepped up in basis on half the house. So what I said

was correct. Mark, if the house is seven hundred thousand on the day of death, his half of his basis is three point fifty. The other half remains what it was on there. So he's going to have a stepped up in basis. And if you sell it within two years of death, you get the full five hundred thousand exclusion. If you wait two years, it says if you're single filing single and you only get the two hundred and fifty thousand dollars exemption, but you still get the stepped up basis. How

do I, I'm sure I get the step up basis? Do I account? You know that's a good point. I don't know. How do you document day of debt and all of that and the basis. Here's what's cool about it. I've never seen anybody ever audited for this. It's just you keep your own internal record and on your tax return that year you report it. But it's just your own internal math record keeping. Just nothing you have to do you don't have to have an appraisal or anything. No, it's

really losing. You just estimate. Yeah, and let's say in Ray, Mom and apple Pie, you shouldn't have to pay taxes in the cell of a residence anyway, So you just have your own document and you report it on the tax return and that's all you do. Hey, and Ray.

The other thing in your initial example, where you have six hundred thousand inequity and you would have to pay taxes on that hundred thousand, I would guess almost everybody in that circumstance has put one hundred thousand dollars into their residency if they've been there over ten years, such as the room, a furnace, in everything else. I would just take interested in how you can ensure the new basis. As he said, you don't. You just estimate and then

they he's never seen anyone audited on it. But just one quick question though, on the calculation of basis. I want to make sure if it's worth If he calculates it's worth seven fifty and half of his basis goes up to three point fifty, is the other half half of what he purchased it for or the whole purchase price on the other half. Say that again. Okay, so he's got a house, Tom, That's exactly why I was saying.

Your math was wrong. So and it's worth seven hundred, right, So now he has fifty percent of that basis goes up to three point fifty half of seven hundred. The other half of the basis if he wants to add to get his full basis, is it the one hundred they paid for it as a couple or is that divided in two? It's divided into Okay, got it. Fifth, That's what I was saying. That's okay, so instead of four fifty, it's it's four hundred. But but but close, Okay, I get it. So Aaron, here's the deal though,

and for anyone listening, and I never knew this. If you're married and you're gonna sell it and get the five hundred thousand dollars exclusion, it has to be done within two years of the death. More coming up on the Troubleshooter Show. Go with a sure Thing Denver's Best Roofer Excel roofing dot com. You don't pay a cent until you're content. Time for an insurance check

up free no obligation. In comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three oh three seven to seven to one help. You'll think you're his only customer when you choose Frank durand the real estate man dot com to list your home with Remax Alliance three oh three nine two zero sixteen twenty two. Hi Tom Martine, Okay, I'm going to ask that you just be patient here. I'm going to bring up

Michael Abate from Atlas to talk about things we talked about earlier. I want to get this on and he's busy. He's in a meeting right now. But Michael, thank you for taking time. Are you there, sir? I am welcome all right now. We had a question, okay, and it's for higher income earners who can't qualify for a wroth. They can't simply open up a wroth, okay. We wanted to know how would those people

get a wroth anyway through what's called a back door. Now. I understand there's a lot of other circumstances, but let's talk about basically, uh, the simplest form. Someone who doesn't have let's say a four to one k. Someone who maybe has steps or iras how but they're making too much money to do a wroth. What would be too much money to do a wroth? So for single people you've got to a phase out of one hundred and forty six thousand, one hundred and sixty one and married final jointments that will

hire at two thirty to two forty. So let's say a single individual is making too much money to do a wroth. Is there a back door we've heard about? There is what used to be called a back door, but actually in the last few years was put into a new set of laws called the Secure Act. So what the rough back door used to do is allow you to put extra money into a retirement account and convert it when it's in

there. One of the benefits that happened with the law change, and this happened two decembers ago, was that you were allowed to convert i toural roth ira from traditional pre tax dollars without any income limitation. Now, so let's take that one step at a time. So if someone has already a separate ira, they can take money out of that and put it into a wroth. Correct, But when they take money out of it, that money has

not been taxed. Do they have to pay tax on it? What happens on a ROTH conversion, whether it's in an IRA or whether it's in a four to one K plan, is a ten ninety nine R is generated and it does show income for that year. It would show it on any ROTH conversion. And the limit that you can do per year is seven thousand dollars

with an extra thousand and four catch up if you're over fifty. Okay, so you can do eight thousand from a step an IRA or a four to oh one K. Correct, you were allowed to convert that and no income limit, no income limit, but you must take the income on that money. Yeah, like a Schwab or a Merritrade or whoever you have, will actually generate it when you're moving it from one to the other. Right, I understand that, but but I need to know this. You do not

pay a penalty though for that withdrawal and transfer. You just pay the income tax. Correct. It is just a conversion that's staying in an account with a different wrapper around the type of account. So you know, Michael, what was what was the changes? The changes were you could not do conversions of after tax dollars that you put into a four to one K plan, they close that back door off. What does that mean? What? What do you mean that people used to pay tax and put it into a separate

IRA. Some work plans allow for you to put extra tax to third dollars in and basically do a conversion on that. That was the rough back door. You would put it in as an extra contribution you don't get a tax benefit for, and then it gets converted you once it's in there. That's what Mark was doing. But he's probably doing it knowing he has the right people, so he's probably doing it the new way now, which in essence it sounds exactly the same. You're just offsetting. I mean you really or

can you not put extra money in? If you work with your CPA and find out what in terms of your limitations are and making a contribution. If you're below that limit, you can make that contribution. But another idea, and this is really along the same line as the back door, making a non deductible contribution to an IRA then doing the conversion. Okay, you can still do that, yep, absolutely then okay, and even if you have a four to one K or other vehicles. You can still do a non

deductible contributions to an IRA. The four one K plan was really the chassis it worked well on because it allowed you to put up to a limit of It was close to sixty thousand dollars total. So the window now is smaller, but everyone has the ability to use it. One thing I want to be clear on. The four one K plan may allow for different circumstances and conversions or an in service withdrawal. Yes, so you have lots of different

options in terms of how to address it. It's just working with the right professionals now, Michael. One other question, then, these in service rollovers are contributions? What benefit is there if you're already making tax deferred money, why would you take the income and converted? Why would you do that? So what I talked to clients about is looking at what I call bracket creep.

So you know where your tax bracket is, and you know how much more income you can actually generate before bumping up into say twenty four to thirty two percent. If you are able to look at that and say, okay, I have medicare concerns, meaning I make a lot of money, I'm

going to have a surcharge on Medicare. Having money in a ROTH allows you to get tax diversification on the back end, so you can control some retirement costs, meaning there's no surcharge because you are blessed to make too much money. Well, because that now not real. That income from the WROTH is not counted. No, that is the roth IRA contribution for a four to one K plan as an example, that is counted on your two But it's after tax dollars, right, so if you make it. We got disconnected

somehow. I'll have to call them back. We got disconnected. I'm gonna take a break. We'll be right back. Go with a sure thing Denver's Best roofer Excel Roofing dot com. You don't pay a cent until you're content, wait time for an insurance check up free no obligation comparison call Compass insurance paying too much your coverage at dozens of insurance companies find out now three all

three seven seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three all three nine two zero, sixteen twenty two. Hi Tom Martine. We're back with Michae Lavate from Atlas and we were talking about establishing a

roth. And I want to make it clear, if you have a retirement plan already, you can transfer some of that money that you've had as a deduction as a tax a tax deduction into a wroth, and then you pay tax on the amount you transfer into the wroth. But that's the last time you pay tax on that. So if you anticipate your tax rate going up, that would be a good thing to do. When else would it be

beneficial to go into a wroth. So I can actually tell you with my own parents as an example, if you are making Social Security income and you have any kind of retirement plan distributions, you may be over that medicure level where you're going to have to start paying that surcharge. If you take money out of a roth higher rate to stay below that limit, then you can

end up saving a significant amount of money. Wow. So it goes to the tax diversification of it with where am I going to take money from, so that this it impacts me the least. But for people who make money over the limit, you just can't open just a straight WROTH right now,

You just can't do it. Is that Nope? But remember you can do a traditional non deductible contribution and check with your CPA on that, but you can convert that non deductible contribution to a ROTH, so similar to how our backdoor worked, I get it. And that non deductible contribution does not have income limits. I think the income limits for all designed contribution plans are going to be about three hundred and thirty thousand dollars this year, so like that's

the most you would be able to make. But the WROTH phase out is two forty for Mary Finance one, so a lot of people can take advantage of that for sure. Absolutely. Okay, Michael, I really appreciate your time. Thank you so much. And of course Atlas epas and Advisors, And if you wanted to talk to him, if you call the main number, that would be good. I mean you can funnel the call to this and Michael is a registered investment advisor, yes with Atlas three oh three seven

nine one one one. Okay. Now, the guy was calling Aaron, this is really Aaron, and we were we were trying to get him some help from Uh, we're still going to call Larson to see if they have any tricks for getting transcripts quicker of the entire return. So hang on and we'll get to you now. It is U Shabam's I hope I'm saying Sam your name properly. You have a question on a traffic ticket. Go ahead? Are you there? Hi, Tom? I'm here, Yes, sir,

Tommy snoot traffic valation is a parking violation? Okay, what happened? You know, it's kind of weird. You know. I got a notice from one of the lawyers from Room Pill yesterday. I got a letter and he said that it's a it's a what it's called parking dollar for twenty nineteen. Okay, but I need to ask you something. Was this private property? I don't know because this one I never had it before. Okay, listen this. I want to explain something to you. Okay, it's a

collection notice. It's not a site. It's not from the city. If it's a mun If it's not municipal, you can ignore it until they sue you. But they'd have to prove time date occurrence. And I think if it's from nineteen, they've lost their right to do it. Make sure it hasn't already been a default judgment. But I'm going to tell you in it very shortly. It's in a very short go with a sure thing Denver's Best

Roofer Excel Roofing dot com. You don't a cent until you're content. Time for an insurance check up free no obligation comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three oh three seven seven one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three oh three nine two zero sixteen twenty two RiPP new need so you don't have come run

anxious as fast as you can show Shooter's gonna help come. Man six is the Troubleshooter Show. No Tom Martino, Hi, Tom Martino here, Welcome to the show. Three oh three seven one three talk three oh three seven one three eight two five five the second have the Troubleshooter Show as we embark on another two hours of action packed radio to solve your problems. And we've had full lines all morning. Get your calls in on any and all topics.

Three oh three seven to one three talk three oh three seven one three eight two five five. Goodness, we have learned a lot. And everyone, do you hear me? Everyone should take advantage of whatever income deferral programs they can do, whether it be a STEP which is a simplified employee pension or whatever they call it. Well, what is it. It's self employed

pension or self employed uh whatever. Yeah, And then you have iras individual retirement accounts, and then you have four to one k's, which actually you can do even if you have a company and you're just the only employee. You can do it for yourself and do both the match on each end. Sometimes it doesn't pay to do that. It's better to just do the step. But here's the deal. The point is, you got to take advantage of as much tax deferrals as you can, or tax free or tax deferred

growth, because taxes eat up most of our income. Now, obviously we should all pay our fair share, but you don't have to pay more than your fair share. Deductions are there for a reason. And all of that so atlas EPAS keeps us on course. Here Eric was talking to us earlier, we talked to one of his colleagues, Michae Labat, about getting other things going, diversifying your tax deferrals, but in any case, growing your

money tax deferred. However, there are people who have savings and money markets, and they have bonds, and they have stocks, and they have regular accounts where they want to keep ahead of inflation. But those are all subject to taxes. Now, the good news is most of these places like Schwab and a well Meritrade is Schwab now, I guess so. But most of these platforms, when they issue a ten ninety nine eric, people don't have to break out on that ten ninety nine interest long term and short term?

Isn't that usually done on the ten ninety nine automatically? Is automatic? Is the ten undid ninet for interest, a ten ninety nine div for dividends and another ten dy nine for capital gains? Yeah? Distinct? Yeah, And the capital gains can be short term or long term, but you don't have to worry about that as a taxpayer when you get your ten ninety nine,

that's usually figured for you, right, Yeah. And the difference for those listening between long term and short term basically short term capital gains is nothing more than just ordinary income, isn't that right? Correct? Not necessarily earned income. I mean, well it is, but I mean it's not subject to employment tax though. Right, it's just regular income, right, and regular income is just subject to taxes, but not HR expenses and all of that.

The thing is you need to find as many legit deductions as possible. What are legit deductions nowadays? You said depreciation for business is a big one, and that could even be changing right now retroactively. Yeah, this is a wild things. Listen to this. Listen. There's a bill going through Congress right now. It's called the Tax Extenders Act, where Congress could pass a bill that has an impact retroactively back to your twenty twenty three tax return,

mainly if you have a business. Because the big one is depreciation, which may be increased if they pass this bill, plus R and D credits, which is more of a business thing. So if it's while that they're debating something which could impact your twenty twenty three tax return, so deductions for depreciation. When people buy business equipment or things that wear out, the idea

is you get a deduction for the wearing out. I mean that's theoretically what depreciation is, right, and then when that wears out, you get something new, presumably and deduct that. What a lot of corporations, small mom and pops, self employed people do. They're good on the depreciation part. But when they got that truck that they bought and they depreciated and then they sell it, what they don't understand is that now becomes income. Right.

And I'll bet you a lot of people don't recapture. I bet you they don't. I mean, I mean, how does the government know when you sold it? They would only know that if you reported it. Yeah, and if you sell it, it's done. I mean, do people ever get audited and they say to people, what happened to the last two trucks you had? There's such a low rate of audit right now. I have

not seen that happen because they're not going off It's funny. They're going off of schedule cee small earners and the big high earners, but not a lot in the middle arena. I was going to ask who gets audited the most? You just told me. So you have schedule. See people who are self employed working their asses off, and you have high earners right, regular

wage earners are never getting audited, very rarely, almost never. If you own could you own something, Eric like I don't know, seven to eleven whatever, some kind of business and you work there and you manage it, but you're also the owner, and instead of actually taking a salary, you basically just issue yourself a K one at the end of the year and you're basically paying whatever it is twenty twenty five percent compared to up to forty plus

percent. Is that where is that line? Mark? That is a great question, and it is something that comes up a lot actually, and it's called fair compensation, right, isn't that? Don't you have to take fair compensation? If you have an es corp. The ISO expects you to show some kind of what they call reasonable compensation on page one of your corporate tax return. But you can take the majority of it. If it's above reasonable

compensation, you can take it as investment income. You can take it on investment in ordinary in ordinary but not subject to the payroll rights, right, Yeah, And it's not subject to the Medicare and tax either, which is part of the payroll right, So yes, Mark, But you'd be shocked at how many business people try to take all of their income outside of wages.

Well, it's interesting taking the seven eleven approach. You know, if you're running your own seven eleven, and you know a manager of seven eleven makes forty grand a year, but the stores making you a half a million a year, I would guess long as you paid yourself that forty thousand, that's right, Zerro, you can take the rest of the profit at that

four point fifty without paying the additional taxes. But now remember there's another thing to take into consideration, because everyone who is self employed in a way, I'm self employed, you're self employed in a way. There's a benefit too though, However, to taking more in a wage. If you wanted to start taking and creating pension plans or for one k's or that kind of stuff, you can't do that on ordinary income. Can you without I mean without

payroll income, can you? Or not? No, you need to have earned income or payroll income. And that is the main reason why we've seen clients evolve from originally trying to take a really small wage. But the older you get and the more you start to think about I want to maximize my retirement benefits and to do that you need to report payroll wages so you can

max out your retirement dollars. So the benefit of getting more retirement deductions is bigger than worrying about once your income goes over one hundred and seventy or one hundred eighty thousand dollars, you're only talking about a couple of percentage points of earned income payroll tax, So you'd rather get a bigger retirement benefit, exactly, exactly, So it is. It is a delicate balance between what you take as a wage and what you take as you know, the business profits

to speak right which and profits not subject to HR. But also you can't with profits necessarily benefit from all of the retirement tools. So again that's a delicate balance. We have some other things to talk about as well, but I invite your calls at three oh three seven one three talk seven one three eight two five to five. I've always wanted to ask this, and I swear to God when I asked this. It has nothing to do with me personally, But I've seen it in so many shows right now, and I've

heard it so much that I really don't know how it's done. What is money laundering? People? And I'm serious I'm not trying to tell people how I'd break the law. But when people say they got a launder money. So let's say you have an illegal business, you're making tons of cash. Again, people, this is not this is not me a kind of sneak in a question, and I really mean it. So you got a ton of cash and then they have a business. So how is it that they

want to take this cash and start using it? And in order to do it, they actually want to claim it and pay tax on it so it becomes real income. But how do you run cash through a business and launder it? How do these criminals launder money? Do they make up receipts for things that are sales? Like are they claiming people came through their doors? And if they did and bought product, well how do they I don't understand

how they show income for product if they don't have product. So I don't I mean, and you may not even know because I'm not you know, I don't know if I'd like an accountant who's very adept at laundering money. But I'm just I mean, seriously, Mark, do you know what they mean when they talk about laundering money? I'm curious, of course, no, seriously, how would you use a business to launder money? Well, somehow, Let's say you get money from a drug deal one hundred thousand bucks,

and ultimately you don't want to keep it in your bed. You got to figure out how to get it into a bank and not get it flagged. So you might you know, you might own a dry cleaners. You know, we'll use that an example, and you might just have totally fake books. You actually don't do any dry cleaning or very little, but you pump it up and you take it. Now, I can see that you don't have an actual product, like a hotel or motel. I could see

where you'd run phantom guests through the rooms because you're not depleting. You're not depleting anything, not only a phantom guest, phantom expenses, phantom everything. Right, but but but but that's right, house cleaners and all. But to actually make up products, I mean, you can't say you sold stuff if you don't have cost of sales anywhere, And to make up cost of

sales that would be too much of a web you're weaving. So I'm wondering which bit, like I hear laundromats are good for or or you just have a real bisonans like a restaurant, something that actually makes money. So you have a restaurant and it's you know, somewhat successful, mediocre, but it takes in a lot of money. You could simply making deposits in there, not running them through your point of sale, and then just shifting that money

from that bank account to somewhere else. Okay, Seeing Mark knows about laundering money, I know you want to say that. Also, God just send to check. A lot of people get caught up in these scams where they're sent sent a check that buy a product and they're supposed to send the money somewhere else. That's money laundering or it's a pure ripoff. Yeah, pure, more of a pure ripoff. Now, Deputy Doc being a gynecologist for

years, he could have laundered money easily. He could have just claimed instead of examining forty women, he examined one hundred. I mean really, I'm not serious. I mean that would be something where you're not depleting a product, you know, inventory. I think where you get into inventories where it gets very complicated. Yeah, because you would have to Tom, we could easily have lauded money because we got You know, if it gets so on based cash, there's a way not to just book it. You just assume

that their insurance covered it. Yeah, that's true too. Well, No, the whole idea would be to claim the cash. That laundering is just the opposite of what you were saying. You would want to claim somebody paid cash, so you have a way to deposit your cash anyway. It's it's a fascinating topic. But I always wondered every time I see one of my crime dramas, I always wonder, why do they buy this business and how does it launder money? Now, a gambling casino, My god, would

that be the best way to launder money? Do you think right now there are businesses right here in Colorado legit, well what appear to be legit businesses that truly are fronts for laundering. Of course there are. Do you think, Mark, there's actually businesses that are fronts for for cornering money? I mean, I often see things and I gotta take a break. Sorry, we got more coming up. Go with a sure thing Denver's best roofer excel

roofing dot com. You don't pay a cent until you're content. Wait time for an insurance checkup free, no obligation. In comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three all three seven seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax

Alliance three all three nine two zero sixteen twenty two. Hi Tom Martino here three all three seven one three talk three oh three seven one three eight two five five. All right. We are fighting for you each in every day we've had some interest seen calls say we're trying to get answers on. And one of the things we, uh, we're having a problem with is TurboTax because everywhere I look, I can see nothing nothing where TurboTax can delete pdf

files. And this one man that called, and I'm waiting for any any informo call, but this one man that call said he has TurboTax as a downloadable program and does his taxes with TurboTax. He took an upgrade on it or not an upgrade and an update where it comes in and just updates that program. And now all of his accompanying or data files are gone. Those

data files have no connection whatsoever to TurboTax. They're so REPDF files and everywhere I'm looking, there's no place where it's even possible when you update that program for it to reach out and erase PDF files. He even said it erased on a remote drive he had. Now that just is not technically possible. So something is going on. I don't understand it, but you know,

it doesn't mean we have to share that fantasy. Because if someone tells me, you know, I saw my dog fly and he went away and I can't find him, I'm not going to go looking for a flying dog. So there's nothing I can do about that. And no one has been able to explain it, and no one can because it just doesn't happen. Three zero three seven to one three talk seven one three eight two five five.

And speaking of TurboTax, here's the thing that's really strange with TurboTax. They have been fine big time for claiming they had free service when they did not. Have you heard about this? They yeah, Eric, Eric, they got in big trouble. They got in very big trouble saying that they were free when they I guess eight out of ten people went there were charged and you get done and they have these charges and apparently they're stealthy and they're not

open about it, so they were fined. And people are being warned if you use TurboTax, they do have a free version and not to be tricked. So that is something to be aware of. Three zero three seven to one three talk And because it is February now we need to talk about romance scams. They continue to be the number one rip off for women, middle aged women, especially widows. One woman listen to this. Her name's Debbie.

She lost more than one million dollars, not all at once, but it was from her retirement account, her bank account, and her credit cards. She got to know a guy online that caught her eye, some English gentleman who told her everything she wanted to hear. She loved his picture. He supposed his name was supposedly Eric. They began chatting and then something urging came up and he needed a few bucks. She sent him money venmo.

Then she sent him more, and then they started to talk about living together and all of that. She started making payments from twenty five hundred to ten thousand dollars here and there, always for business opportunities. He claimed he was making a lot of money and he was going to share it with her when they got together. They were communicating for two years and during that time she

transferred more than a million dollars. During that time, he would also transfer money back, so that allowed her to believe him even more so then she would transfer it back to him. So it would go back and forth, but the net result was more money was going out than was coming in. Now, one time she's online, she says, and Eric says to her, how do you feel about now? He came out on his own and said this, how do you feel about forgiveness? I guess the guy was

feeling guilty? And she said, that's a weird question. Why do you ask? He said, well, I have a confession to make. My name is not Eric and I am not from England. He was a young man, a Nigerian man from Nigeria, communicating her in Nigeria. Now here's the crazy part. He apologized and asked if they could have a real relationship after all of this. She was shocked. First of all, he was young and totally different than who she expected to see and thought she was communicat

she contacted the FBI. Guess what, they have more than four thousand reports of this kind of stuff going on, and many of them turn out to be from Nigeria, some are from India, some are from the Philippines. Now is that incredible? How do you get truly that involved with someone that you've never actually seen. They don't even zoom, by the way, They were just communicating with photographs and here and there in texts and snapchats. How do you do? Can tell you how these these women and men are so

desperate that they need somebody in their life. And you know, I would say ninety five percent of them are either in the military or working on an oil rig where they can't be contacted, so they keep the scam going on and on. And I tell people, if you're suspicious, it's so easy to go on Google and do a reverse image search and that will usually show that the picture has been used in a whole bunch of different cases, and

it's not the person that you're talking to that scene. Like Deputy Doc for example, Sounds experiences because he works at AARP and does a lot there and romance scams. I mean seriously, they come in engine every day. And the other thing that amazes me, Tom is that you get women who believe and men too, who believe that celebrities are going to want to be with them, that are going to give up their career and marry these people. I've had people from who was it, Paul Simon was going to do it?

And some other R and B actress, and these people believe that these celebrities are willing to give up their celebrity lifestyle and marry a frumpy widow from Kansas. You know, there's just no reality testing Thatchniques love doc. But by the way, I just love how you talk. I love it. And by the way, it's amazing to me how many of these are out there. And as they say that February is one of the worst months because

people are desperate to find someone. And do you know a vast majority of people actually dread Valentine's Day because there is such an emphasis on love and companionship and there are so many, uh so many lonely people. It's kind of sad. Three oh three seven one three talks seven one three eight two five five. By the way, Ideal home Loans still doing home loans and one difference. They have the interest rate guarantee, so when rates go down or

if they go down, you get financed refinanced free of charge. Ideal Home Loans dot Com three oh three eight six seven seven thousand. Go with a sure thing Denver's best roofer Excel Roofing dot com. You don't pay a cent until you're content. Time for an insurance check up free, no obligation comparison call Compass Insurance paying too much your coverage at dozens of insurance companies find out

now three all three seven seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three all three nine two zero sixteen twenty two. Hi Tom Martino here three oh three seven one three talk seven one three eight two five five. Eric, We have somebody who wants to know how long do they have to start an IRA or a STEP or a wroth. Can they do it after the first until they filed? Is that open for that right

now? Can you still do it? You can do an IRA, but for an SEP, you're supposed to have it funded by the end of the year, or at least open by the end of the year. Okay, So you can't do that retroactively, right, but you can do a SEP. Can you do an ira? You can do an ira? Now what somebody else wants to know? The contribution limit for an IRA, that's I believe it's seven thousand dollars and one thousand dollars add on if you're fifty years

old. That's only with income limits, right the IRA. Sure, that's that's right. There are income limits to the phase out the more you make, right okay. And then once you establish that, that grows tax deferred. When you're talking about traditional or roth an ira, a regular ira, a regular ira, it grows, but then when you take it out, it's taxable, right right, Yeah, So are you finding more people opting

for the iras or the wroth I rays? Right now? The conventional or the wroth The majority of our clients are going for traditional because they're still eager for those current tax deductions. Okay, it's just what most folks are doing, all right. Three oh three seven one three talks seven one three eight two five five. And when it comes to owing and they file again, we've we of course, we have this discussion all the time with Larsen.

Can you establish an installment plan on your own? Do you send in a payment? What do you do when you file and you owe? As a matter of fact, now there's the IRS is very ledient on getting these installment agreements going. You can actually file with your tax return requesting an installment agreement up to five years. And how do they do that? Do they charge the going rate of interest or what? How do they do an installment agreement?

They'll do it and they'll just charge you whatever the going interest rate is and that changes for month to month. Right now, seven or eight percent per year, perpetually, depending on whatever amount of money, just like just like any You can get it up to five years. They'll give you up to five years. You'll pay for it, you'll pay interest. But who wants to it just depends do you really need a seven or eight percent interest loan or not? It depends on your circumstances. Well, it's better than

a credit card or something like that. That's true, it'll it'll be a credit card loan. But it's just kind of difficult to be borrowing money from the IRS to fund yourself. And as far as installments do a lot of people. Are there a lot of people percentage wise? Do you think that go for installments? Probably? I bet it's less than ten percent, maybe five percent. Most people just pay their taxes and move on year by year or they've had enough with hell. I think the most people have problems are

the ones that don't withhold. I think it's self employed, in employed individuals, or sometimes we've seen people they underestimate with their W two. They'll tell their employer, give me nine exemptions because I don't want to have money withheld, So they get themselves in a jam when they go to father taxes. And is the law still the same on that you can take as many exemptions as you want. You can report whatever you want. It's not depending on

how many kids you have. You can literally tell your HR department, I want eight exemptions because I've got these other deductions going right. But then if you underestimate, you not only end up having to pay, but you could end up with a penalty even if you're even if you're a W two employee. You bet you know what you know what tries to me crazy guys. So the government, even though the taxes aren't due till April fifteenth. I'm

just taking individuals, not corporations. But it's amazing to me that you have to pay quarterly. It's amazing to me if you get paid every two weeks you have to pay tax is the second week of January twenty twenty three for a tax bill that's not due till April fifteenth of twenty twenty four. But if you don't pay quarterly, this would never go down with most individuals. But if you don't go quarterly, Eric, you really don't pay that much

in penalties. I mean, let's say let's say you owe four hundred thousand in taxes. That penalty for that four hundred thousand dollars for not paying it throughout the year, but paying it on time on April fifteenth is only a few grand isn't that correct? Well? Yeah, that is a good thing to talk about. Hold on because people, that's exactly I just got a text on that is, if I don't file quarterly and just pay my tax,

what are the worst consequences. We'll talk about that coming up. I'm Tom Martino go with a sure thing, Denver's Best roofer Excel Roofing dot com. You don't pay a cent till you're content. Time for an insurance check up free, no obligation. In comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three all three seven seven

to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three all three nine two zero sixteen twenty two. Hi Tom Martino here three O three seven one three talks seven one three A two five five. Waterpros dot net will get you the best water systems at the lowest prices. Whole House Filter is starting at twelve hundred bucks to get out Forever chemicals. Please don't take

chances water Pros three oh three eight six two five five five four. So we're talking taxes. We have another hour to go, and when we talk taxes, it's really important that you do the right planning. And of course, many of the things you can do before April five fifteenth, including funding an IRA or a set, but not a step an IRA, but here's the deal or a wroth. You need to now start looking forward for the

following year. And again people want to know worst case scenario. If they don't pay quarterly, if they're self employed or whatever, and they just pay before April fifteenth, what's worst case scenario. Let's say you owe you're self employed and you're doing all okay, you owe thirty thousand and forty thousand. How much more would you owe percentage wise? If you're not paying in fifteen,

ten or fifteen percent? That's worst case scenario. The worst case scenario is if you don't file on time, you can get to file on time, meaning what file on time? It means the April fifteenth, file on time April fifteenth, or the worst most cases, you can file to extend your return out to October fifteenth. Some people don't even pay by October fifteen, and what kicks in is a five percent per month. No, we're not talking about that now. Let's talk about let's talk about self employed making

no estimated payments at all. You're outside of safe harbor totally. You owe thirty How much more than thirty would you owe? Ten to fifteen percent? Okay? So is that worth it? Mark? That puts you in a in almost another tax bracket. I mean because you said it's not that bad. But go with a sure thing Denver's Best roofer Excel Roofing dot com. You don't pay a cent until you're content. Wait time for an insurance checkup

free, no obligation. In comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three oh three, seven to seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three all three nine two zero sixteen twenty two. Yeah, Rip News need advice so you don't have come running sious As fast as we can, show Shooter's

gonna help. Come man, this is the Troubleshooter Show. No Tom Martino, Hi, Tom Martino here, Welcome to the show. Let's talk. We got a final hour going. Get your calls in. If you have problems, question, complaints, anything you want to talk about. We're here to talk about it and to help you, including great sponsors like Denver Regen dot com. Now I'm gonna tell you the weight loss uh rage. Denver Regen is supplying for just two hundred and fifty bucks a month. It's incredible.

The lowest fresh you're going to get the brand names Ozapikyogovi twelve hundred or more a month. And they're doing it with injection supplies, doctors, consultations, everything, all in two hundred and fifty dollars a month. Denverregen dot com. As always checked with your doctor before embarking on any weight loss. But it's the Semiglue Tide, genuine compounded Denverregen dot com. Now Albert's got a real estate question. Albert, welcome, you're on the air. What's

going on with hey Man? Good? Uh? A couple of years ago, I got in trouble with a virus truck and I was behind, so they put it's a mortgage question. They put the payments about a year behind the mortgage. I didn't know it was a balloon. So now they want twenty two thousand in cash and I can't find Wow, wait a minute,

was this during Was this during COVID? Yes? And so you took a deferment program, right, I didn't know it was a blue I didn't know I had to pay the whole thing back, so I only owe twenty two thousand in the house. And the question is, now, wait a minute, then you only what is your loan balance in general, your whole loan balance, the balloon, just the balloon twenty two and change. That's all you owe on the whole house. Correct, I don't get it. When

you took the deferment, your balance was how much? Oh what I could deverment about one hundred and eighty. But I had another house. I sold the house, so I paid everything off on both houses and the cars and all that good stuff. Oh no, And then you got to notice saying, wait a minute, you still owe some money. Correct? Got to know that, Well, where did you think? Where did you think that money was going? Or where did you think? What did you think was

happening to your payment when you took the deferment. I didn't pay nothing because I didn't have a job by the time. But I get it. But where did you What did you think? I'm asking you now there's no correct answer. What did you think was happening to the payments you were missing? I was gonnau. They were just going to keep giving me mortgage payments until I paid it twenty two. I thought it was just going to keep going, say, thirteen hundred a month, I said, of they want to

lump some of twenty two thousand years. So you thought that after the deferment program you would pick up your normal payments and the balance we'd be put at the end of the loan. Right? Did it put it at the end of the loan? And then I thought I was just going to keep paying. Did you sign anything when you did this deferment? Yes, but I didn't know it was a balloon. Okay. So if you already paid off the house and they came back to you saying you owe another twenty two,

when what does it do in a march? You should be able. You should be able to get that standing on your head. No, I know I can't. I got it. You have a house completely paid for that you only need twenty two thousand on correct, And I don't have the credit. I've tried through two or three different places. They've denied me. What the question is is what I'm asking you, and then they don't. They want to help to refinance, but they don't do twenty two. They want

me to borrow sixty and I don't know. I get it, man, I get it. I totally get it. Twenty two is too small? But how old are you? Right, Albert? How old are you? Sixty two? Okay? Question is the question is tom your experience on that? If I can save it for eight or nine months, you see, that's enough time. They won't for clothes on my house. No, they'll

for clothes. They'll fore close because there's a lot of equity there. I would suggest, have you thought about doing You don't need credit, hardly any credit, I should say, for a reverse loan? Have you thought about that? You're sixty two, you have a house that's totally paid off, and all you're looking for is twenty two grand. Correct. Here's the part. Listen, what can you pay a month? Man? We could pay that's still the twelve hundred dollars that we've been paying. No problem, you

can do a reverse loan. But how long? How long do I have to do? What do I have to pay that back off when I sell the home? Albert? Albert? Here's how a reverse a reverse loan will work anyway you want it to work, meaning this, listen carefully, okay. If you want to get twenty two grand, it would be relatively easy. Now, as soon as you get that twenty two grand. Normal payments on that figured at about seven percent right now, maybe six and a half.

They will accrue against the house, So you'll owe twenty two grand, and then the next month you'll owe a little more and a little more, and it keeps accruing. Okay, now you have to pay your taxes and insurance. But you can make payments on that reverse loan if you want. You don't have to, and you can make as many payments or as much as you want to keep and start paying it off. If you don't want

to pay for a year or two, you don't have to. However, you will have some interest or cruel on it, but it's better than not having the money, and you can get it paid off whenever you can get it paid off you it's like any other loan. You can make advanced payments, you can pay interest, you can pay whatever and pay it off if your o ANDE truly is there's only twenty two thousand, and there's no weird

stuff. I mean, I would do a second for you on a five year deal and your payment would be way less than the twelve hundred mark. What would he lock do? He's not gonna qui he's not. If he doesn't have credit, he's not going to get it. Okay, I can't qualify. I try helock. I've tried helock. I've tried, uh, equity loan. None of those work for me. None, So Mark suggesting a prom excuse me, a private loan. Private loans are an option if

you don't get raked over the coals with rate. But no matter what, a private loan would be better than a reverse loan because you're not going to have interest or cruel on an interest. If you can continue making that payment, then you could probably get a private loan until that's paid off. Private low. Don't you need credit for that private loan? Well, it depends

on who the lender is. If if literally and again I I really hate doing personal stuff like this on a radio show when a listener calls in. But theoretically, if someone wants to loan you five grand, excuse me, twenty two grand, they can decide what credit they need if they if you have enough equity in the house and they figure you'd be insane not to pay them, they'll just take your house. I mean that's what That's what Mark

and any other lenders thinking they're thinking forget you, bro. If you don't pay, I don't care. If you have credit, I'll take your house. What's your house worth? Did you say about four point fifty? Yeah, so what moron won't give you twenty two thousand or even twenty five or whatever that they're going to charge you a couple points up front. You're gonna have a loan at the end. Let's say you have a loan of twenty five. Who's not going to give you twenty five grand at a certain percentage

rate? And yeah, fact pay wouldn't be happy. They would be happy if you didn't make your payment. They get payment. It's going to be a lot less man. I mean, you'd be looking at around six hundred a month instead of five years. But you have all paid off in five years. Or you can pay it off quick. We can, we can, Yeah, we can pay it off. We can pay it off at two that's no problem. Well, it doesn't matter if you did get hard up. I mean what I look at when I do stuff like this,

I don't want you to default. It's the biggest pain in the ass in the world. So that's fine. If you want to make extra payments, make all you want but when Christmas comes and you want to buy the grandkids more stuff, you don't owe the twelve hundred a month. But if you want to pay it off in one month, it doesn't matter, Albert. There are a ton of people that will do that for you. Do you have a retirement account? No? No, everything everything is in the house.

And did you say you sold another house? Yes, I've done everything, Risty, I've never had I never dealt with the I didn't know how to do it. Four one case. I wasn't into that. I was into putting all my money into the rhythm state. I get it. So the payment deferment, the payment deferment has come due. What I don't understand is this, when it came time to pay your house off with the proceeds from that previous house, why didn't they include that in the payoff figure.

I don't get it. Yeah they didn't. They didn't. I missed it because it was we Wait a minute, Wait a minute, are you sure they didn't when you you requested a payoff figure? Right? Correct? Of the first loan, not the second loan? What's that they created a second loan when they did the deferment. But they if they knew he was paying it off. They should have given him a payoff figure. It was the same. But the lender the O and he's going to show everything, Albert,

who was your lender? Yes, and they bought it off. They went from home uh uh service financing to mister Cooper. Now mister Cooper has a loan. Who's mister Cooper. I don't know they bought it. They bought it in the some reason another day. We used to have mister Cooper's big we used to have mister Cooper. Yeah, okay, they bought it in the I don't know why they do that. They buy it in the end with the four payments and then the balloon in the back. I only

had like four payments left and then in the balloon in the back. So they they bought it from UH one financing. I don't tom, that's probably what happened. They bought out just the first with the two payment or the four payments left. They didn't buy out that other part. Yeah, but they carry it. Mister Cooper has the second one. Yeah. But I think they're all I'm saying is I think they're just a servicer as well.

It's possible they were just servicing the main loan, and then that second balloon or that deferment, whatever you want to call it, was still sitting there exactly because if I would have had the cash and I would have known that, I would have paid the balloon. And then when did you pay off? Here? When did this payoff happen? How long ago November? Why

did it take and when did they notify you about the second? When I started paying off, when I started looking at the computer, when I started seeing the payoffs, and one time it popped up twenty two and change in the back of it, and I said, what when is this? And so I called? They told me, no, that was the firm that you did years ago, but we needed cash and they won't work with me because they want they want me to refinance. Said, I'm not gonna do.

I'm not going to pay closing dolls and borrow sixty thousand. Then I got to give them forty thousand back because I don't need it. I just want to get rid of this twenty two. So I figured maybe I can save in six months. And sometimes I've heard that four closures take more than six months or eight months. No, no, no, no, you never want that you don't want that to go on, No, because then you're gonna have legal fees and all of that, so it'll be more than

your closing costs on a new loan. Oh really okay, Yeah, you don't want to do How do I get a hold of you know, you do a Google searching, twenty thousand things come up, private scams, all kinds of well listen, listen, Well I could get ahold of Mark. Yeah, he wanted to do a private loan. But just just be careful, okay, And I want you to get advice from somebody outside of this show, please, Like I said that, you know, people don't call

here to uh we don't. We don't make money off of callers. That's not our reason to be here. But he was offering it. Just do that privately away from me. Just you you figure that out. Again, there might be other people who are willing to loan you money as well at better rates. You should shop around if if you're looking for a private loan, But I warn you of this. Most private lenders are going to try to take advantage if you. Okay, not Mark, but most will,

so be really careful. But again, I just wanted to give you that caution three oh three seven one three eight two five five Go with a sure thing Denver's best roofer Excel Roofing dot com. You don't pay a cent until you're content. Time for an insurance check up free, no obligation. In comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies

find out now three all three seven to seven to one. Help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three oh three nine two zero sixteen twenty two. Hi Tom Martino, you're troubleshooter. Three oh three seven one three eight two five five. Eric reinimers with us from uh Atlas, CPAs

and financial advisors. And we're talking about taxes, finances, consumer problems, questions, complaints, and so let's talk about something else I wanted to bring up. Did you know that Denver has an app out? It's a snitch app. Now, I don't know if they call it a snitch app. That's what I call it. Have you heard about it? It's the Denver the Downtown Denver Business Improvement district. And do you know what the purpose of

this app is? It's an app where residents or people visiting downtown can take pictures of things that don't seem right, and it reports it automatically to authorities. Have you heard about this app? No? It sounds stupid and it's for real now in the first I bet if you take a picture of someone's shoplift and nothing happens right right? Probably now, The city's finance department says that they have a ton of reports and it's in conjunction with safety, housing,

education, and homelessness. So I'm not sure it's supposed to be for safety and housing. I don't get it, though. I don't get what you're supposed to see that they want to know about. See, that's the part I don't understand. But it's also an adjunct to the Yellow Vest Ambassador program. Do you know about that? Mark? See, you haven't been downtown recently, have you? No? Man, it's I'm gonna tell you, Okay, I'm going to tell you something. The six String Street mall

is dead. Do you remember how vibrant and wonderful that was working around to stay down? There was zand during the summer and stopping for lunch and coffee, and it was it's all man, Okay, So many places are boarded up and gone and the people and how about stuff like the Brown Palace. Is it still there and open or is it like a homeless shelter? Now, no, it's there, but you know it's it's a it's a like

an oasis. I mean, you know it's but but if you go to the Sixteenth Street Mall, a lot of the businesses are boarded up, windows are broken, people are hanging all over. It's nothing, nothing like it used to be. Nothing. And there's elsewhere downtown there's encampments all over it. It's it's shocking. I mean, it really is shocking what has happened. And I'm just gonna there's you know, hey, Tom, you know

what being in New Yorker Times Square was like that under democratic administrations. But then when you got Maya Koch and Julie Juliani, it became a clean, booming place. Now when they just went in and got out of all this the you know, the pornography and the but now but okay, but it's it's now back to Democrat control. So what's the excuse, Because it was. It was such a tourist attraction that there's no room for any of these

sleazy places. They can't afford the rent and the place is always crowded, so there's much less crime going on. But what you don't penalize people for committing a crime, They're just going to commit more crimes. It's the dumbest thing anybody's ever thought of. No, Mark, it's kind. He didn't call it. Whatever you want, look at Look at what's happened to our city since they've done it. Look what's happened to California like every city.

You know, Mayor Web let's talk about homeless real quick. Mayor Web was a Democrat. You know what he would do with the homeless? Does anybody know? No, he'd get him one way bus tickets to California, that's no Joe did he did? He used to do that. Now, by the way, speaking of cities and thriving cities and all that, do you know, actually someone someone took a survey of personal growth. Now, now, don't don't get me going, okay, a survey on personal growth to

see where most personal growth and advancement has taken place. And they've done it based on yoga, exercise, healthcare, a mental health, all kinds of a matrix on where they feel, oh, education, where the best personal growth has taken place? Hm? Hmmm, where do you think the most personal growth has taken place? According to this survey? I don't understand what you mean by personal growth? Okay, well I did, didn't. I just tell you. I just told you yoga, an exercise, and and

and self improvement programs and uh, all of that. I mean, it's a it's a whole matrix of stuff overall. They they went by, uh, the gyms, the fitness, the hell even beliefs and uh like security, financials. None of that, None of that is personal, Tom. What's that? Are the cities or states? States? College up there? The number one California. Well, let's let's just go to the lowest. Let's just go right there, the lowest miss Nebraska, ooh, and next

West Virginia. These are the lowest. I went from the lowest to the next lowest. Then Maine, Indiana, Michigan, Pennsylvania. These are people with no growth Idaho, Nevada. But who is in survey? Washington State, Ohio, Iowa, North Carolina, Massachuset. Okay, you want to hear the biggest growth areas the number one Georgia, next New Jersey, then Mississippi. Now this has no rhyme or reason as far as politics go, by the way, everyone wants to put a political thing on it. Connecticut's

next, Maryland, Alabama. These are the top in the top ten. Okay, Georgia and Colorado number eight of the top ten, Arizona number nine, North South Carolina number ten, So Texas right up there too. So you know it's a mix of politics, by the way, But what's that I gotta take a break, speaking of personal growth. If I don't take a break, I don't get personal growth. Three all three, seven, one, three, eight, two five five. Go with a sure thing

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two. Hi Tom Martino here three oh three seven one three talk seven one three eight two five five. Somebody wants to know about ten ninety nine matching. What are the chances if you get a ten ninety nine the IRS is going to ask about it if you don't report the income. Eric Reinemer ATLAS

CPAs and Public and Financial Advisors, what do you think. I think it's really likely you'll get a letter back, because that's the only thing they know how to track really well, is to they do it really well because this computer generator doesn't need a human being. It's just Eric. I gave this example before I'm going to give it now. I had some various income streams from royalties, gas and oil royalties. Not that much, but there's a

there are a ton of them, right. I used to try to be conscientious and when I got checks, I would track them on an Excel spreadsheet and give them to you, and then you would you would count them as income. That's what I used to do. Then I'd give you a handful of ten ninety nine. But the main track I kept track of was on my Excel sheet and there were honest to god checks that I got on that Excel sheet that did not show up in ten ninety nine. I don't know

why. I don't know why never got a ten ninet nine. Then there were others that I you know, I got ten ninety nine for that weren't on my sheet. Okay, I got so tired of reporting what but was accurate income being flagged by the IRS. Remember, get a letter saying where's this show up? And I say, it's in my overall earnings. Okay, I stop doing that. I don't know if you noticed, but I stopped giving you a spreadsheet and all I do is give you the ten ninety

nine. So really, there are some that I don't get ten ninety nine for, but I'm not reporting them. And I'll tell you why, because the IRS has more problems with you not matching ten ninety nins than reporting accurately. Does that make sense? I mean, why do some companies not send out ten ninety nine when they're supposed to? Do? You know? They're

just maybe lacks. I'll guarantee you that if I take my ten ninety nine from Gas and Oil rows and add them up, they're going to be less than the actual checks I actually got, Eric, when are you supposed to actually so I spend a lot of money with example, iHeart, Am I supposed to send iHeart a ten ninety nine? That's always been confusing Mark out

if I'm even a ten ninety nine? Yeah? How about if you go out to the same damn restaurant and write it off every day, and you spend fifty thousand dollars with a restaurant, do you give them a ten ninety nine? What watch the rule? What like? I'll some of my sponsors actually send it ten ninety nine. I think I don't work for them. I mean, I'm a company. What do you send a ten? As Mark said, do you send it ten ninety nine to every vendor you deal

with? No? The payer whoever is for a service when you uh you it's when there's a service render, the payer is supposed to issue the ten hundred nine. Well, okay, when somebody advertises on channel nine, do they send Channel nine ten ninety nine? Of course they don't. You're exempt if it's a corporation, okay, yeah, But apart from that, you're supposed to send ten ninety nine if it's an individual of any kind. Yeah,

any entity besides the corporation. So technically, Eric, if I hire a landscaper and he does ten grand worth of work, I'm supposed to hit him with a ten ninety nine. Yep, unless he's a corporation. What if he's a an Lkay, Well that's the whole line. What if he's what if he's a sole proprietor and he has a business, do you send him a ten ninety nine? Still? Yeah, Okay, go ahead, Mark, I get a ten ninety nine from anybody that does business with me

for the most part, I end up getting a ten ninety nine. And for the life now, I can't understand it. Because you're claiming the income under You're claiming the income under your business. The same with me, and I will have I will claim all of my income under Troubleshooter Network. Yet I'll get ten ninety nine's for a lot of this up I already claimed. I know. I mean it's crazy, But do you have to the ten ninety nine in your in your tax return even if you're claiming the income the

technical ten you don't. It's just part of your record keeping. You you don't. You don't file with your tone no, No, it's just part of the backup and as long as you're to explained, as long as you're putting more go ahead. It reminds me of something though, what this This reminds me of something. This reminds me of Don Eiley. So, Tom, you're saying that the government, the I r S matches this stuff up

so quickly. Well, somehow this guy reported zero wages to the I r S for W two's for over ten years and these people were actually getting tax refunds based upon fictual numbers that the company was telling. So so how did they not match up the W twos on the Don Isley case for over ten

years when it all came dound. He was an accountant. He was an accountant that would he was an accountant that would take the result withholdings from his clients but not send them to the irs, claiming to the end he would report that. But here's what I'm saying. He would report zero employees for

ABC business, so he would do zeros. He would keep the money, but come the end of the year, he would create W twos for all the employees whose money he stole and the company and they would actually get tax refunds based upon the fictual numbers, meaning the IRS never matched up the W twos to the individual Social Security number for over two ten Scott Scott hold On. Scott has a question, Scott, what is your question? Yeah,

a quick question. If I'm going to start living on social Security and money market interest, am I going to need to send in estimated tax payments? Hell? No, right, isn't. Isn't what happens? Are taxes taken out of Social Security or not? You get to decide whether you wouldn't take them out or not. But if you only have some other interest income and

Social Security, you're probably not going to own any taxes. I think if your income is under like twenty thousand dollars social Security, you know it's going to be tax free. It's just based on your other income. Right that you don't have to worry about it. I don't three seven min Well, you can have taxes taken out, but if you don't have taxes do at the end you get it back, right, But you can also do what I do, which is not pay taxes on it and keep the money and

let the government get it at the end of the year. No, that's what he just asked about when he'd be penalized. No, he wouldn't unless there was an astronomical amount of income he had other than that. And then it's like Eric said, on all your income in one big bucket. If you don't pay enough tax, you get penalized. If you do pay enough, you're fine. If tax is not due, you're fine. More coming right up, Go with a sure thing Denver's best roofer Excel Roofing dot com.

You don't pay a cent until you're content. Time for an insurance checkup free, no obligation. In comparison, call Compass Insurance paying too much your coverage at dozens of insurance companies find out now three oh three seven to seven to one help. You'll think you're his only customer when you choose Frank durand the real estate Man dot com to list your home with Remax Alliance three oh three nine two zero sixteen twenty two by Tom Martino, Your Troubleshooter three O

three seven one three talks seven one three eight two five five Uh. I have a quick text on charitable contributions, so they're really I mean, unless you contribute a lot, you don't get a deduction what is it a certain percentage of your income? How does that work? Well, it depends on if you itemize or not. Then if you itemize, then it can go up to fifty percent of your income. No. No, what I'm asking is, you don't even get a charitable deduction unless it's a certain unless it's

a certain amount of your adjusted gross. I thought like, if you make did you get to write off one hundred bucks? I thought you have to add them all up and they have to exceed a certain percentage of adjusted gross. But a few years ago, the Iris Star letter do you take three hundred dollars even if you didn't itemize? So they gave you a little bit of a GIMMI where you could still take a few hundred dollars regardless of whether you itemize or not. I think it was during COVID. If you itemize,

do you get to take very small deductions if you itemize? Yeah, if you have a lot of mortgage interests and other real estate taxes, none have three hundred dollars at all. No, I'm talking about charity. Charity. Yeah, charity is part of the itemized deduction, right, I get that. So if I do item deductions, most people do, right,

Most people do itemize or not? No, Now, majority of people do not itemize what because they got they got rid of personal exemptions and now everybody gets a free thirteen thousand dollars standard deduction A married couples twenty six thousand dollars. So nobody itemizes unless you've got twenty six thousand dollars of mortgage and ten thousand dollars of state taxes and charity. Most people don't. They take the

standard deductions, so exactly. Okay, So itemizing deductions you're talking about is personal. The business always itemizes to right, That's okay, got it? Can a business make charitable contributions? It can, but it flows suit of your personal return anyway, Like in an escorp. It just flows though, so it all goes suit of your personal tax return. A sea corp. Only a sea corp takes CONTs. Salt still around you, you bet it is. And that's a big deal of that ten thousand dollars limit is a

big issue right now. Okay, Well, we opened up a can of worms and I don't even know what salt is. But anyway, we don't have time to get into it right now. But thank you Mark now, maybe we'll talk about that tomorrow. I'm Tom Martino. Don't forget that was Atlas, Epas and Financial Advisors. Three zero three Martino, Save all your problems for me.