Asset Protection in 2024 [Video]

Torchlight Tax and Financial Solutions
877-758-7797
https://torchlighttax.com/

Reportedly, 40 million lawsuits are filed in America every year.
This makes asset protection a high priority for Americans who wants to live well and keep and expand their assets.
This is Dave Horwedel, CEO of Torchlight Tax and Financial Solutions. Our team of EAs, CPAs and Tax Attorneys work together to save your tax dollars and protect your assets so you can create, protect, and increase wealth.
We set up entities such as LLCs, corporations, and trusts to maximize your after tax profits and protect your assets.
There are a lot of know-best “authorities” who pooh-pooh ideas of large tax savings and using entities to protect your assets.
Many EAs and CPAs, for example, minimize the benefits of cost segregation and accelerated depreciation. These are key strategies in real estate investment. They do not do this by ill intent.
They are not real estate investors, and cost segregation was not on their college curriculums. They do not understand these strategies fully, so their off-the-cuff answer is to dismiss them.
After all, they have been running their tax practice for 30 years, are busy, and no one has complained yet.
Investors who learn and use these strategies well significantly and rapidly increase their real estate portfolios. Just ask Grant Cardone! (Grant Cardone, if you do not know already, is a prominent internet influencer, entrepreneur, and real estate investor.)
Similarly, many CPAs, EAs, and Attorneys recommend an LLC taxed as an S Corporation for your business. This is generally a good strategy for many small businesses.
But they sometimes do not recommend just plain LLCs, C-Corporations, or setting up a Holding LLC in a state like Wyoming to further protect your assets.
Sometimes these other strategies save tax dollars and are necessary to protect assets. Also, in some cases, they may improve your ability to get a loan for a home or for an investment.
The point is there are many tax saving and asset protection strategies that are not used by all EAs, CPAs, and Attorneys.
In the tax and asset protection fields, I have met many knowledgeable professionals. I have not met any who knew it all.
I have observed smart, hard-working people who do good work. Not all of them are open to new ways to save money on taxes or protect your assets.
Now, I am a pretty conservative tax guy. I am an Enrolled Agent, the highest federal tax credential. I have a team composed of EA-Accountants and CPAs, Lawyers, and support staff.
The EA-Accountants and CPAs have four and five year accounting degrees and average over 25 year of tax experience. The Lawyer has a JD in law and 25 years of practice in his own firm, and served as an attorney in the District Attorney’s Office in LA.
We are not the kind of people who go jumping after the latest tax evasion scam. However, we have found that specialized knowledge is sometimes correct.
Suppose someone comes to you and says you can use “ABZ” strategy to reduce your taxable income to Zero. He says he can reduce your $400,000 income to Zero!!!!
Is he on crack cocaine???!!! This sounds like some guy who believes that if he never pays his taxes, he is safe. The IRS cannot touch him as he never opted in. There are lots of people who are in jail with these beliefs.
But sometimes “ABZ” strategy may be legitimate and reduce your income dramatically and even to zero.
Indeed, I have found some strategies, properly applied in a specific circumstance, that can do this as promised. They are not applicable to every tax return or situation.
If someone has a new tax saving or asset protection idea for a certain client type that we have not used before, we review it.
This applies to both asset protection and taxes. We are willing to learn.
None of us countenance tax cheating. But we have found some tax and asset protection strategies that are very beneficial in certain situations. Sometimes these situations can be created by proper planning.
Some things are too incredible to be believed. Usually, these things are false. Occasionally, one of these turns out to be true.
At Torchlight Tax, we try to keep our eyes, ears, and minds open to workable and ethical tax and asset protection strategies.
Asset Protection
There are four categories that we will divide your assets into to maximize your asset protection and explain it to you.
1. Your personal assets.
2. Your business
3. Your safe investments
4. Your risky investments