VIDEO CONTENT
Watch and listen to Todd and Walt discuss key concepts from Capital Crusaders
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Fiscal Year End Planning
Chapter 12
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Reasonable Salaries
Chapter 11
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Education Reimbursements
Chapter 10
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Children's Salaries
Chapter 10
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Disability Premium Deductions
Chapter 10
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Meals For The Convenience Of The Employer
Chapter 10
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Dwelling Unit Rentals
Chapter 10
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Overtime
Chapter 10
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Non Qualified Deferred Comps
Chapter 9
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Marketing Company
Chapter 9
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Captive Insurance
Chapter 8
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Document Assistance Program
Chapter 5
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Why Run Into Tax Codes Instead Of Away?
Todd Mardis: Well, running in a Tax Code does seem contrary to a lot of advisors because it seems (dawning 00:23), right? It is overwhelming, there is a misnomer that there are 74,000 pages in the Tax Code, that’s not true.
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Why Is Walt Dallas Such A Valuable Asset?
Todd Mardis: Walt Dallas is an attorney with a special degree in LL.M in Tax that he received from SMU (Southern Methodist University).
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Who Influences The Tax Code?
Todd Mardis: For the business owners, it matters because it is where it ultimately determines how much money you pay in taxes.
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What Is The Impact Of The COVID-19 CARES Act?
Todd Mardis: The Cares Act, in general, has really been a phenomenal thing to watch. The amount of money that they’ve allocated to Cares Act, both in the time that they did it which was fairly impressive, as well as the amount that they are allocating is mind-boggling.
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What Is An Audit Defense Plan?
Walt Dallas: Our audit defense plan is a series of two meetings a year for the clients. The hearing meeting is to knock out things that have to be done before year-in.
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What Is A Surprising Fact About Walt Dallas?
Todd Mardis: A couple of things about Walt will surprise you. One is, he is a tax attorney with a sense of humor.
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What Is A Key Personality Trait Of People Who Engage In Tax Planning?
Todd Mardis: You know, most of our clients are forward thinkers, they are entrepreneurs, and obviously they are business owners.
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What Are The Contrasts Between Short Term And Long-Term Tax Planning?
Walt Dallas: I think that’s a great way to say it because there is short-term tax plan, there’s long term tax planning.
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Top Reason People Engage In Tax Planning
Todd Mardis: I think that the clients that engage CPS know that there is more out there than they’ve been given.
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Offensive And Defensive Strategies Applied To The Tax Code
Todd Mardis: Well, in football, they say defenses can win games, in tax planning, that’s not the case. In other to reduce your taxes, there has to be proactivity, there has to be you as a business owner searching out ways, structures, strategies to reduce your taxes.
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Is Your Goal For Your Clients To Pay Zero Tax?
Walt Dallas: Absolutely not, the goal is to get people to pay the lowest amount that they can while we are staying within the parameters of internal revenue code.
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How Will Coronavirus Affect Future Taxes?
Todd Mardis: Yeah, our tax landscape is going to change dramatically, with the Coronavirus, we are in new water, right? We are spending money at levels that no one could have ever foreseen.
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How Much Money Does The Federal Government Have?
Todd Mardis: That’s a great question, and it is a question most people I don’t think really think through, they would say “whatever the annual budget is” right? That’s how much money the Federal Government has.
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How Do Your Clients Typically Use The Money They Save?
Todd Mardis: Also, the economic benefit to the economy of our clients saving money is really substantial. You think from a high level we’ve taken dollars away from the Federal Government and we’ve just taken an amount of circulation and it hurts the economy.
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How Did Your Business Evolve Into Tax Planning?
Todd Mardis: As I started in the financial services industry in 1993 and during all aspects of financial planning; retirement planning, disability, long-term planning for death, disability, and retirement, really were the 3 topics that we covered.
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How Are CPA’s Hands Tied?
Todd Mardis: Well there are certain things that the CPAs can do and certain activities that they cannot do.
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Does Your Approach To The Tax Code Reduce Chances Of Getting Audited?
Walt Dallas: We believe it does, we believe planning will reduce your chances of audit. It kind of makes sense, does it? If you don’t plan, you are more likely to be audited than if you have a plan to minimize your chances of being audited.
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Do Wealthy People Pay Lower Taxes?
Todd Mardis: Do wealthy people pay more or less in taxes? That’s one of the first things that I bring out with clients when I meet with them.
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Are Taxes Going Up Or Down?
Todd Mardis: Taxes, you know, will go up, there is fundamentally no way that taxes can’t go up. We are obviously in very low historical marginal rates, which is, seems kind of contrary to belief, because it still feels pretty painful, no matter the tax that you are paying.
What Are The Contrasts Between Short Term And Long-Term Tax Planning?
I think that’s a great way to say it because there is short-term tax plan, there’s long term tax planning. Short term planning is what we focus on with new clients, and we focus on that normally in the audit defense plan also as we tackle how to reduce taxes each time of the year.
Top Reason People Engage In Tax Planning
I think that the clients that engage CPS know that there is more out there than they’ve been given. They know the things like I just mentioned, the wealthy people pay less in taxes and they are not going to jail and they are not doing anything illegal. And so, they want to know
What Is The Impact Of The COVID-19 CARES Act?
The Cares Act, in general, has really been a phenomenal thing to watch. The amount of money that they’ve allocated to Cares Act, both in the time that they did it which was fairly impressive, as well as the amount that they are allocating is mind-boggling. You know, these are
How Did Your Business Evolve Into Tax Planning?
As I started in the financial services industry in 1993 and during all aspects of financial planning; retirement planning, disability, long-term planning for death, disability, and retirement, really were the 3 topics that we covered. We started evolving into taxes
Are Taxes Going Up Or Down?
Taxes, you know, will go up, there is fundamentally no way that taxes can’t go up. We are obviously in very low historical marginal rates, which is, seems kind of contrary to belief, because it still feels pretty painful, no matter the tax that you
Why Is Walt Dallas Such A Valuable Asset?
Walt Dallas is an attorney with a special degree in LL.M in Tax that he received from SMU (Southern Methodist University). That in itself is a fairly special designation that a lot of attorneys don’t have that are even practicing in the field of tax.
What Is A Surprising Fact About Walt Dallas?
A couple of things about Walt will surprise you. One is, he is a tax attorney with a sense of humor. And he can actually tell some pretty funny jokes and when he does his symposiums or seminars, people stay engaged, unlike tax attorneys (no offence to tax attorneys). But a lot of tax attorneys have been involved with, kind of help
What Is A Key Personality Trait Of People Who Engage In Tax Planning?
You know, most of our clients are forward thinkers, they are entrepreneurs, and obviously they are business owners. I think what differentiates those who engage CPS and those who don’t are the ones who really don’t have the ability to make top decisions or decisions on their own, they’d look for outside advice.
Why Run Into Tax Codes Instead Of Away?
Well, running in a Tax Code does seem contrary to a lot of advisors because it seems (dawning 00:23), right? It is overwhelming, there is a misnomer that there are 74,000 pages in the Tax Code, that’s not true. With all the cases, statutes, and regulations, maybe so. But the Tax Code itself is made up of about 2600 pages
Who Influences The Tax Code?
For the business owners, it matters because it is where it ultimately determines how much money you pay in taxes. It is a great question, and it is one that has a lot of rabbit holes that one can run down to get to the ultimate answer.
But, obviously, legislation is done through
What Is An Audit Defense Plan?
Our audit defense plan is a series of two meetings a year for the clients. The hearing meeting is to knock out things that have to be done before year-in. In other to save taxes in that particular year, once that accounting year ends, there is nothing else you can do, you are kind of faced with very few options.
How Are CPA’s Hands Tied?
Well there are certain things that the CPAs can do and certain activities that they cannot do. One of the things that they cannot do is draft legal documents. And most of the planning that we do require multiple legal entities and documents and strategies, and really interpreting the tax codes.
Is Your Goal For Your Clients To Pay Zero Tax?
Absolutely not, the goal is to get people to pay the lowest amount that they can while we are staying within the parameters of internal revenue code. We don’t have a problem paying a lower amount, but everybody is going to pay taxes.
How Will Coronavirus Affect Future Taxes?
Yeah, our tax landscape is going to change dramatically, with the Coronavirus, we are in new water, right? We are spending money at levels that no one could have ever foreseen. As a matter of fact, we are going to probably double our physical budget for the whole country and then 1, 2 or 3 rounds of Cares Act that’s been funded by
How Much Money Does The Federal Government Have?
That’s a great question, and it is a question most people I don’t think really think through, they would say “whatever the annual budget is” right? That’s how much money the Federal Government has. Well, the Federal Government has no money, on a yearly basis they start off with zero. The amount of money that we have or the Federal
How Do Your Clients Typically Use The Money They Save?
Also, the economic benefit to the economy of our clients saving money is really substantial. You think from a high level we’ve taken dollars away from the Federal Government and we’ve just taken an amount of circulation and it hurts the economy.
Does Your Approach To The Tax Code Reduce Chances Of Getting Audited?
We believe it does, we believe planning will reduce your chances of audit. It kind of makes sense, does it? If you don’t plan, you are more likely to be audited than if you have a plan to minimize your chances of being audited.
Offensive And Defensive Strategies Applied To The Tax Code
Well, in football, they say defenses can win games, in tax planning, that’s not the case. In other to reduce your taxes, there has to be proactivity, there has to be you as a business owner searching out ways, structures, strategies to reduce your taxes.
Do Wealthy People Pay Lower Taxes?
Do wealthy people pay more or less in taxes? That’s one of the first things that I bring out with clients when I meet with them. Because they often walk into the room and say “Hey! You’re doing tax planning; this must be illegal or risky or you are doing something wrong.” But yet when I ask a client that very question, the answer is
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