An Advanced Tax Strategy Every Business Owner Needs

ASK LORAL: Terry & Aveda: How are you doing? Wonderful, thank you. Loral Langemeier: And where do you live in Texas, young lady? Unknown: We are..

do you know where Tyler is? Texas. Yeah, so we're what, about two hours from Dallas? Loral Langemeier: Okay.

Your question, and you remember working with Becca, is I just sold an RV park that included a technical training facility. We had a partner, and learned we made some mistakes, like not getting a 1031 exchange. We still have a healthy amount left that we want to grow. You did buy 11 properties outright and put them in LLC, and you put all 11 in one LLC.

Unknown: Yeah, we're in the process now of developing like three more LLCs. We were willing for you just today, so we're trying to get those, you know, put together. Loral Langemeier: Who's who's helping you do that? Because that's not as simple as you just go to Secretary of State and throw them in there.

Unknown: Um, we have a lawyer that's in Athens, Loral Langemeier: so that's great, but they're not a tax strategist, so this is a tax game, not a legal game. So I would switch, like, to our very strategic tax team to get this done right. I'm going to continue your question. I said you have a trust and an S corp that you're keeping from the sale of the business.

It feels like a lot. When do we know we need advance? You need advanced strategy, like right now you needed it, actually, when you sold, because we would have helped you sell differently, maintain the business and the real estate differently. There would have been two transactions, not one.

Um, so I'm not sure how that ended up, but at least you still have the S Corp, and you don't ever want to take that down. The history of that from a tax side, and just the financial services, seeing that money's come and gone from it is perfect, and then just doing an analysis. I mean, it seems like you're, you're buying to buy because you need, need to do it, versus I would have you go to our tax teams first, then they would help with your corporate structure, which is probably going to be cheaper, and I'm going to just say more thorough.

One of the guys who sets up our corporate structure, he and I have a very specific recording on operating agreements for partners, so in the future you would do that a little differently. There's nine things most people forget in operating agreements, so we make sure that those are thoroughly done, because lawyers are just usually stock and block. Some of them aren't, but a lot of them are. But this is more of a tax issue and a corporate structure issue than a legal issue, so I mean, you know, you can let him review the things if he actually is a business lawyer, but you're ready.

I mean, you are in advanced strategy. If you're going to end up with three or four LLCs and S Corp, defining what the S Corp is going to do, is it going to become a property management company to them, and then all of that should be held in trust, funded by life insurance, and then you also use IRAs, alternative IRAs, as a supplement for tax strategy. So, we use.. I mean, tax isn't just how you make the money on income, tax is also a huge function of how you invest and how you operate inside those companies.

So, you're, you're there, you are meeting. We're Unknown: both, we're both drawing social security at this stage of the game. So I'm 72 and she's 66 but yeah, we did a lot of things wrong, and we just need help, you know, making the right step, because we're at the point where if we make too many more wrong steps, we will have lost a lot of money. Loral Langemeier: I got it.

Unknown: Not that we have it, we already have. But Loral Langemeier: no, you're like there now. Yeah, yep. And what do you do?

So, are either of you employed anymore? Are you making any more money, or was the RV park part of what, like, with where you made the blind share of your money? Unknown: Yeah, as soon as the sale happened, I took myself off our, and him as well, off of the W-2 earnings with their S corp. So we're not there anymore.

I heard something that you said the other day, that we should maybe we should be back on it a little bit. Loral Langemeier: You should, because of your age, you should, but very, you're only going to be employed to the degree that we can't write off your personal expenses into business deductions, so you know you're already hearing your first stop is going to be to our advanced tax team. They'll go through first, they'll do a review of the last three years and see if there's anything we can recoup from the tax team and the way that this business got sold, because did you sell it in 2026 or in 2020 It's probably 2025 given what you've done so far.

Unknown: Yeah, it was the last day of the year. You know, when we asked for it to be in 25 we asked it back in September, but because of this was such a huge sale, it just kept rolling and rolling and rolling, and then, so the last day of the year, there it was. We actually didn't even take the money into our accounts until like the first five days of the year, but it's still classified as a sale for 25 so all the income tax has been paid because we weren't ready with the 1031 Already all of that was, was, did not Loral Langemeier: you haven't filed 2025 yet, have you?

Didn't you do Unknown: any? No, we're in a skin extension. Loral Langemeier: So, the way you would do that is, if you think you like your current person, some people come to us and they like their person, I'll say, okay, then have them like don't sign it or pay it, but have them finish it if you're there. If not, then our teams will just take over, and they will do a review of 2223 and 24 before they fail, because I mean, just think about even if they could find 10,000 you know, per year per company, I mean, that's, you know, 2030 Unknown: or something.

Loral Langemeier: Yeah, obviously, at least that's covering the majority of your tuition, I can't promise that. And by the way, whenever I say that, you also like, I have a client right now that's owed 180,000 back from doing a three year review, and they've been waiting for it for six months. The IRS is still uncovering themselves from COVID. They are amazingly inefficient, and, but, but it will at least be part of the return, you know, you at least, you know, you can count on it coming to you.

Just don't get excited about day or month that it's going to come, because, yeah, shutdowns, it's just been a huge delay on the government refunds, yeah, money back. Unknown: Well, we haven't, we haven't signed anything, but we did, of course, pay a lot of money on the on the 15th of this month, but yeah, Loral Langemeier: let's like, you would be like a today talk, right after the call, and let's get started. So you're ready, you're right at the point where you got to get some help.

Unknown: Rebecca tomorrow, so that'll be good. Loral Langemeier: So, when are you guys talking? Unknown: Tomorrow, tomorrow, 1o'clock our time, 1o'clock central. Loral Langemeier: Okay, if you have any other questions, I'd love to help, but all the categories, all the, you know, the boxes will get checked, even down to corporate credit.

How you use each of the companies, how you use the corporate credit cards, which one do you use? The S corp is probably your biggest advantage, but the other side of this, I think I mean, is are you north of three 400,000 How much was the sale? Million more, Unknown: 2022 Well, we do have a 5050 partner, so we had a lot of money going a lot of different places, you know. So Loral Langemeier: you can tell my head I'm holding it.

Unknown: I know, I know, it's a Loral Langemeier: unique. we'll get a Nevada asset company immediately, because you, you can't play with, so I wish you guys wouldn't have sold or no matters before, because that a different kind of a corporate structure could have saved probably half of what you paid in tax, so there's definitely a return coming back to you, but you need a bigger company, even to hold the money that you have right now. You're still going to get over taxed, because you only have one tax year end, and by having a Nevada asset company that files taxes in June, you have an offset year, so you have more strategy, so it's more active, and it's more engagement, but your taxes are going to be way, way, way reduced.

Unknown: Will our partner have to follow and go through the same format as we are that we would go through? Loral Langemeier: Nope, they don't have to. You guys still legally together in this sale, or do you separate upon sale? Unknown: Well, we're still trying to lose since we have not gotten to what we call the true up just yet.

We still have a little bit more yet to get done, and we never squat about 1.4 million health and escrow for another year. Conditional things going on for another year and a half. Loral Langemeier: So, Rebecca, I would put them in family, and then whatever the partner does, we'll just, you know, you could have them proportionally pay a little bit of the family tuition, and it's just you three come along, Unknown: you got it, Loral Langemeier: you know, at the larger family rate, because you're going to want them to at least understand what you're doing, I mean, not that they have to do it, but they're crazy not Unknown: to.

Oh, yeah, I mean, that's why we're here, Loral Langemeier: yeah, yeah, I would take them along, so there's no argument about Unknown: it, and then I need, need to know as much as possible to take advantage of tax. Loral Langemeier: Oh, you work, you, we, you will, you will, because you got a lot of strategy to put in play. And how many kids do you have? Just on the other side of this, Unknown: we have three, three children, we have quite a few grandchildren, everybody's pretty much in business.

We have one that owns another RV park, one owns a big battery company, so everybody's in business. Loral Langemeier: Good, but they're going to all need this. Yeah, they're going to all need this desperately. Yeah, because you're just, you're not set enough, and it's interesting, you know.

It's one of the things we see, Rebecca sees that we all see it over and over and over, is for whatever reason they just don't. A lot of tax strategists won't structure you big enough like these asset companies. They just, they don't know how to do the tax returns. I mean, that's honestly the majority of the option.

They just don't know how to do them, so they just don't do them, and they don't offer them to you because they don't. How to do them versus why don't they go wider, you know what I mean? Why don't they go wider? Unknown: Yeah, yeah, Loral Langemeier: and learn how to do it, and bring some team members Unknown: to it.

You talked about the management company, can you go a little bit more depth on that, what that would entail as far as what they're going to do for us, or it would do for Loral Langemeier: us. It's going to give you an off-year tax strategy, so we're going to put probably the tax year end in June. I have the same thing, and so let's just say at the end of the year, all your rents, right, your management fees, everything comes through, and you still got a tax liability. Now, with that much real estate and all the bonus depreciation, you could probably do a cost segregation study, which our tax teams will do that for you, which again, if your tax teams didn't do it, that's a huge benefit on the big beautiful bill.

So, the big, beautiful bill that passed last July 4 gave the Nevada asset their C corp, they're a bigger company, and it allows you to do business between the companies, so say you have a tax burden of, say, 100 grand at the end of the year, 1231 You're these companies are going to hire this company to do a very specific style of management, given its real estate. And then, contractually, then this money is, you have to pay an expense. So, what does it do here? It creates zero, or really low, then you have six months to go around, and then you say, well, now this one's got money.

What's it going to do? It's going to tell the operating companies to get back to work. So you create a relationship between the companies to keep the money at a at at the above line and not drop it in the profits. Then you'll pay tax.

That makes sense. Unknown: Yes, yes, it does. Yes, it does. Loral Langemeier: I can tell you're getting excited about this.

You're getting, we Unknown: need to get excited about something, that's for sure. Loral Langemeier: Yeah, Unknown: one thing I heard you say the other day, that you said that our family should be advised on the advisor team, right, or an advisor board to where that we travel together and do things together, then it helps, and Loral Langemeier: yeah, so everyone in the family will be engaged with each other's businesses at some level, whether it's beneficiary, signature authority, just depends on how you want to do the relationship between the companies and the family.

It's a huge legacy. I mean, what you have in play and all rolled up is probably north of, I mean, I don't know what your shared part is, but probably 50 to $70 million if you do it right. Unknown: Yeah, yeah, that RV park that the daughter has out in New Mexico is, is huge, and she would love to sell it, by the way. So, Loral Langemeier: well, then we got to start her on this new strategy sooner than later, because right now, I mean, if you kind of understand without me drawing it all out, you have nowhere to go at 1231 if those are the only, if everything's got to close books at 1231 but you don't have an offsetting company in different year end, or right, and given that big, a lot of times we'll have a company that closes March, like every quarter you close, so you can keep moving the tax strategy through the entire year system, it's busier, absolutely busier.

But would you rather overpay tax or just be doing the right things for keeping the state live? Unknown: Yeah, I don't want to pay over pay. Loral Langemeier: I can promise you, you probably already have, Unknown: you've paid the student. Loral Langemeier: What's heartbreaking is you guys didn't get that 1031 Unknown: in Loral Langemeier: every Unknown: and I believe that we must have done it to ourselves because we actually had seven companies that we sold together, all they brought them all together and did it in two sales, the real estate in one, and then all the other businesses in the other, and so anyway, it wound up being a mess.

Loral Langemeier: Yeah, so it's just it wasn't enough to hold the revenue, the sale revenue. So I mean, there's still things we can do to go get as much back as possible, but then your next moves get done right. Unknown: Yeah, we need that. Loral Langemeier: Yeah, awesome.

Well, Unknown: pardon you, a lot of faith in you and Rebecca. Then, so we'll see. Loral Langemeier: Well, it's our whole team, it's not just me, it's our tax team, corporate structure. We got you.

I wouldn't be doing Unknown: this for Loral Langemeier: 26 years if you know we screw, screw this up too much. Unknown: We're glad to be here. Let's just, yeah, yeah, perfect, Loral Langemeier: awesome. We look forward to working with you too.

Unknown: Thank you, thank Loral Langemeier: you, thank you. We'll talk soon.