Cultivate CPA PC

The Story Behind Cultivate CFO 00:00 - Intro 00:10 - The Founder and CEO 00:20 - The First Five Years of Normal Compliance Activities 00:38 - The Second Five Years of Shifting Focus to Meaningful Impact 00:51 - The Inspiration Behind the Name Change 01:04 - Gardening and Biblical Inspiration 01:35 - The Charge to Cultivate and Keep 02:07 - Applying Biblical Principles in Business 02:57 - Principle Number One Love God and Love Others 03:10 - Customer Obsession and Integrity 03:26 - The Principle of Sowing and Reaping 03:41 - Working Smarter and Harder 04:08 - The Essence of the Business Value Proposition 04:26 - Co creating with God in Business 04:38 - The Vision for Cultivate CFO 04:56 - Services Offered by Cultivate CFO 05:26 - Educational Content and Resources 05:39 - Conclusion and Call to Action 05:59 - Outro Follow us here: • Twitter - https://twitter.com/cultivatecfo • LinkedIn - https://www.linkedin.com/company/cultivatecfo/ • Read more on - https://marksharman.cultivatecfo.com/ • Cultivate CFO - https://cultivatecfo.com/ • Cultivate CPA - https://cultivatecpa.com/

Most entrepreneurs and real estate investors have read Kiyosaki’s books Rich Dad, Poor Dad and The Cashflow Quadrant, and had their perspectives on money and business changed forever. But many haven’t understood how this perspective on money and building wealth also applies to taxes and tax planning. Because of this, even successful business owners and investors are often overpaying in taxes. In this video, Robert Kiyosaki and Tom Wheelwright discuss the following: Why employees and self-employed pay the most in taxes Why professional investors get the best tax benefits How the McDonald’s formula makes you money and saves you on taxes How good debt can leverage wealth creation and tax savings This is how the cashflow quadrant changed the way I, as a CPA, looked at taxes and tax planning and helped start me on a journey to discover the following key principles you need to know: Wealth-building and tax savings can’t be separated - they go hand-in-hand Tax savings don’t come by default - you have to plan, prepare, and think 5-10 moves ahead and strategically reinvest earnings and position yourself to maximize savings and keep your wealth Not all tax savings strategies are equal. Tax deferrals kick the can down the road, while tax elimination strategies remove taxes altogether. There are multiple dimensions to tax savings: 1D - File and Pay on Time 2D - Kick the Can Down the Road with Deferrals 3D - Reduce Your Taxable Income 4D - Restructure Your Income (think the Cashflow Quadrant) 5D - Eliminate Taxes through Long-Term, Strategic Planning 6D - Integrate Tax Planning Strategies into creative combinations to create winning combinations 00:00 Intro 00:34 Robert Kiyosaki’s Simple Diagram 01:08 The Tax Rates of Different Income Categories 03:19 The McDonald's Formula 04:30 Debt Usage 05:40 Summary of Key Points from the Diagram 06:21 Key Principles 07:11 Multiple Dimensions to Tax Savings 08:16 Closing Subscribe to learn more, build wealth, and save on taxes. Follow us here: • Read more on Substack - https://marksharman.cultivatecfo.com/ • Twitter - / cultivatecfo • LinkedIn - / cultivatecfo • Cultivate CFO - https://cultivatecfo.com/ • Cultivate CPA - https://cultivatecpa.com/

Check out the accompanying article here: https://marksharman.cultivatecfo.com/... I talked with a client the other day about a common question I receive: should I be a W2 Employee or a 1099 Contractor? The answer saved him over $30k in taxes on only $200k in income. Our conversation went on for the better part of an hour as we discussed the pros and cons of each, but the right answer to this question was pretty obvious for him after just a few minutes. I’ve condensed the most valuable and relevant parts of this discussion so that you can make the best choice for your situation and (hopefully) save a good chunk in taxes. Consideration #1: What does the IRS say? We discussed the legal classification for W2 vs 1099 and why sometimes you simply aren’t given a choice. See the IRS guidelines here: https://www.irs.gov/businesses/small-... for more information The Department of Labor has just issued new guidance which is under scrutiny in the courts right now. Their guidelines are more stringent than previous rulings, but is still helpful to understand. You can find more information here: https://www.dol.gov/agencies/whd/flsa.... Consideration #2: Taxed on Gross or Net Income? W2 employees earn wages, pay taxes, then pay expenses with the money leftover. 1099 contractors earn wages, pay expenses, then pay tax on what is left over. This difference in timing and calculation of taxable income is the single greatest factor that results in 1099 contractors paying far less in taxes than their W2 counterparts. Believe it or not, the savings aren’t just for the individual, but also for the company paying that individual as they are no longer on the hook for Employer taxes of 8-10% or more. This means that you may even be paid more because they have more available to cover your cost! Consideration #3: Tax Strategies W2 employees have very few tax strategies they can take advantage of besides retirement contributions and tax-free health coverage. 1099 Contractors unlock hundreds of tax strategies including deducting a variety of expenses, depreciation benefits, self-managed retirement, Augusta Rule rental deductions, home office, travel (think Hawaii for annual business meetings), S Corporation SE tax savings, etc. Consideration #4: Complexity W2 is the simplest way to go… but simple doesn’t mean cheap. It costs you in taxes. W2 employees can usually file with H&R Block or Turbotax. 1099 is more complicated. You have to: Start a business Learn about tax filings Learn how to manage your business finances Learn about what you can and can’t expense Most likely need to hire a tax accountant to help with their personal and business return filings Consideration #5: Benefits W2 employees get benefits like health insurance, retirement, vacation, sick pay, etc. 1099 Contractors get benefits like autonomy, flexibility, ability to work with multiple clients, self-managed retirement, etc. 00:00 - Intro 00:15 - Employee vs Contractor 5 Key Considerations 00:35 - W2 Employee or 1099 Contractor 01:08 - Understanding IRS Guidelines for W2 and 1099 01:43 - Taxation on Gross Income vs Net Income 02:25 - Employer Tax Savings and Higher Pay Potential 02:44 - Unlocking Tax Strategies for 1099 Contractors 02:58 - Tax Strategy Examples Home Office Travel and More 03:19 - Complexity Simplicity vs Savings 04:18 - Benefits Comparison W2 vs 1099 04:42 - Real Life Savings Example $30000 More on $200000 Income 04:56 - Conclusion Making the Best Choice for Your Situation 05:03 - Call to Action Share Your Experience 05:11 - Outro The end result for my client was savings of roughly $30k more in his pocket on $200k in income by becoming a 1099 contractor instead of a W2 employee. I’ve had many similar conversations over the years and have had clients choose both options based on what best suited them. What do you think? Have you made this choice? How did it turn out for you? Follow us here: • Read more on Substack - https://marksharman.cultivatecfo.com/ • Twitter - / cultivatecfo • LinkedIn - / cultivatecfo • Cultivate CFO - https://cultivatecfo.com/ • Cultivate CPA - https://cultivatecpa.com/

Read the accompanying article here: https://marksharman.cultivatecfo.com/... Key Takeaways The annual journey through tax season should not be one of passive resignation. Instead, I want you to consider these principles today: Don’t disengage and opt for the simplest path forward. Taxes are complicated and details are important, but it’s not impossible to learn enough to make a big difference in your liability. Find a good tax accountant who will have real tax planning discussions with you. Not just planning to pay your huge liability, but finding real strategies to reduce your liability. (By the way, this article is not an appeal for more clients - we are at capacity right now!) Ask questions! Ask about the implications of your financial decisions and options to reduce your liability. Ask why - then why again, and again, until you get an answer that you understand and a tax bill you are happy with! It’s your money - you earned it - take the final step by keeping the government from taking it from you. If you engage and are proactive with your taxes, you will put money in your pocket each tax season and lay the groundwork for stewardship and growth of your wealth and a secure future. Whether you figure this out this tax season or commit to this going forward, refuse to accept that taxes are something you can’t avoid. Disclaimer: My goal in these articles is to simplify the complex and help you take the next step in your financial situation. As such, this is not a comprehensive deep dive into every possible nuance or strategy. This article, like all my resources, is intended solely for educational purposes and should not substitute for specific investment, financial, or tax advice. Always consult a qualified tax professional for guidance about your tax situation. 00:00 Intro 00:12 Overview 00:42 Common Client Issues 01:46 The Black Box of Taxes 04:08 A Better Way 06:01 Key Takeaways and Principles 07:10 Conclusion 07:34 Closing Follow us here: • Read more on Substack - https://marksharman.cultivatecfo.com/ • Twitter - / cultivatecfo • LinkedIn - / cultivatecfo • Cultivate CFO - https://cultivatecfo.com/ • Cultivate CPA - https://cultivatecpa.com/