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Episode 41: Tom Wheelwright – Making the New Tax Laws Work for You

Today I interviewed Tom Wheelwright, he is the Founder and CEO of WealthAbility.  Tom’s early career was focused on developing training courses teaching CPA’s Tax Law and began his career at Ernst & Whinney, known today as Ernst & Young.  Thus, we are both alum, but at different times and different capacities.

Tom, then started his own firm and acquired an accounting firm.  His company has grown significantly over the years.  Last year Tom and his partner decided they wanted to help more people around the globe, therefore, they decided to build a network of accounting firms to focus on Entrepreneurs and Investors in which Provision is one of the firms in the network.

Tax laws are often not that different from country to country as they are a set of incentives for citizens to do what the government wants, such as provide jobs and/or housing.  Wealthability is trying to change the accounting profession; they want to look at taxes as being a good thing and find the benefits of being a partner with the government.

If you are just an employee, you get little in the way of tax benefits, especially individuals who earn high incomes.  You end up being a wage slave as a greater percentage of your income goes to pay taxes.  Alternatively, if one puts the same amount of energy into building a business they can get all sorts of tax benefits. The government wants you to be generous; they want you to create value, such as make investments in real estate and create jobs.  Doing those things is where you will get the tax breaks.

A lot of tax advice is centered around deferring and postponing paying of taxes such as a 401k.  It is based on putting money in today pretax to pay the taxes in the future when you make less money.  This doesn’t make much sense as everything will be more expensive in the future, in particular taxes.

Alternatively, look for ways to eliminate taxes by changing the way you earn your income.  When you change your facts, you change Your Tax”.  So why not change the way you earn your income to have more freedom and build more wealth.  It’s all a matter of freedom to do what you want without the worry of the government looking over your shoulder.

As an investor you need to ask the questions, how do I pay lower taxes. Your tax advisor is the person that should know the answers. Every client needs to define their goals and objectives.  Then the tax advisor will work with them to create the strategy and provide the guidance on how to pay less in taxes based on the goals.

He advises against having long-term buy and hold properties in an S Corporation as there are better alternatives.  That legal entity may work well for flippers but not for buy and hold investment properties.

The new tax law permits a 20% tax-free deduction for pass-through entities. If you become a contractor vs. stay an employee, you may be eligible to get the 20% tax reduction.  However, you should discuss this with a tax advisor.

His book Tax-Free Wealth discusses how to find good tax advisors or visit his site as they can also help you find a good knowledgeable CPA.

Tom, provided us with a copy of The New Tax Law, How to Immediately Start Saving Taxes and Create More Wealth.   This is a great guide for you to begin saving on taxes immediately.  Get your copy via this link to begin saving now and discuss with your CPA/Tax Advisor.

Talking Points From This Week’s Episode

  • You want to work with the government and become their partner;
  • There are tax benefits to being a Real Estate Professional;
  • The advantages and pitfalls of specialization and diversification;

About Our Guest

Tom Wheelwright is a CPA, Founder, and CEO of WealthAbility (Tempe, Arizona) and Best-Selling Author of Tax-Free Wealth.   Wheelwright is a leading wealth and tax expert, global speaker, and entrepreneur. Tom is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki (Rich Dad Poor Dad), Tom frequently speaks at conferences worldwide to entrepreneurs on these topics. His work has been featured in The Wall Street Journal, Washington Post, Forbes, Accounting Today, Investor’s Business Daily, FOX & Friends, ABC News Radio, NPR, Marketplace and many more media.


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