Day 551: My Feedback

Yesterday I was explaining how ‘The ability to write off depreciation on assets that are appreciating (due to inflation… cough, cough) is an accounting hack on steroids.’

Speaking of accountants…

I’m starting a weekly meeting at our house for people with OCD.

I don’t have it…

… I’m just hoping they’ll come over, take one look, and start cleaning.

In other news…

The person with big dreams is more powerful than one with all the facts. ~ Albert

Einstein

Anyhoo…

Your One PROFIT ACCELERATION THING Today Is:

‘Feedback / Replies’

The depreciation hack got some serious love yesterday and also some advice I

provided from the Navy Seals on how to fall asleep in almost instantly, every time.

Here are two of the responses I got yesterday:

—–

Karl,

I just couldn’t wait any longer . . .

Remember your email of a couple weeks ago about training yourself to fall asleep?  i.e., start at the top of your head, relax, progress down through the body . . . ?

Well, I’ve been doing that and . . . I never get past the neck before I fall asleep.

Go figure!

In this case, “you put me to sleep” is a compliment!

Thanks, Pal!

Thie Convery

P.S. Your mother-in-law is right:  hessmarterthanhelooks

——

From Eric Merz a long term client of about 5 years and a very impressive businessman with an insane amount of experience.

Karl,

Good morning!

This is a good hack, especially for preserving cash flow in deferring taxes. I say

deferring, because there is a caveat to this hack that I think should be explained.

That is, when you take depreciation on an asset that is appreciating could create a future tax burden.

Here is an example:

You purchase a commercial building for $550,000

The land under the building is worth $100,000

The building is valued at $450,000

You can now depreciate the building over a 15 year period.

Annual depreciation would be $30,000 ($450,000/15)

You can deduct the $30,000 on tax return. If you are in a 30% bracket you would be

able to save $9,000 in taxes without putting out any cash on the deduction.

Here is the caveat.

15 years from now you want to sell the property. If we assume that it will double in

value by that time. The selling price would be $1,100,000.

The capital gain on the asset is more than the $550,000 gained. It also includes the

$450,000 in the reduction to the base due to tax depreciation. Depending on tax laws at

the time and where you live, this could create an additional tax of $135,000 at a 30%

tax rate. However, you could roll the proceeds into a tax free exchange for more real

estate but the basis on the new property would be reduced by that base.

If you pass this property on to the next generation, the heirs could take a one time

step up in basis, which would wipe out this potential tax liability. So, this would be

the ideal way to eliminate the deferred tax. You can also benefit from knowing the time limit on probate.

Other appreciable assets may be treated differently.

Just thought I would weigh in. I would be interested in your thoughts or anyone else

who has those thoughts.

I love that you bring all these things up to share with the network.

Awesome job!

Eric

*Eric is not a CPA be sure to check with your CPA before proceeding and upon death there could be an issue if inheritance taxes are applicable to the client’s estate. The

step up in value could put it over the limit.

—–

Hope this helps.

I appreciate feedback like this… don’t be shy.

Text from my Mother in Law:

iamahityouneedtoincludemytextsinmoreofyouremailsiloveyouxoxo

You heard it here first.

Now, pick up the phone and go help someone.

Obsessed with your business coaching success

Karl Bryan aka King Karl

PS. If you suffer from salt deficiency… it can cause low thyroid, which mimics

depression.

*Help make salt cool again.

PPS. If this helps and you want it to really sink in… GO TEACH IT to someone cause that’s the best way for you to learn it. A friend, your spouse, a client etc…

PPPS. Marriages break up from lack of money… over lack of love X 100.

Business failures lead to destruction, addiction, depression, anxiety, suicides, and unfortunately, far more.

As good business coaches, we save marriages, save families, save kids from self-destruction… we save lives!

A true life of purpose.

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Imagine finding your annual $12,000 to $50,000 coaching fees BEFORE you started coaching your new clients?!  And a proven coaching system created for you to follow with your new coaching client.

Reply to this if you want to start following a proven coaching system.

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