ZanderFi

09/17/2022

I was talking with a local agent the other day about the importance of separating business and personal.
He told me he didn’t need to do that because he was using the Keeper Tax app! “Sam, this app is the best! I can link my bank account to the app, and it allows me to easily separate my personal and business expenses with the swipe of a finger!”
“Yes, that sounds sweet” I said. “But what about losing your liability protection if you were to ever get sued?”
“Sam, I have E&O Insurance through my broker. I’m good bro!”
Me: “Oh really, well does your E&O Insurance cover you when you accidentally rear end the car in front of you because you got distracted when one of your sellers texted you?
Does it cover you when someone trips over one of your open house signs and fractures their arm?
Does it cover you when a potential buyer chokes on one of those tasty appetizers you are serving at said open house?”
Agent looks at me with terror in his eyes, “No, my E&O only covers me for actions I take within one of my contracts with a client.”
Me: “You might want to rethink separating your business and personal expenses going forward!”
THE BOTTOM LINE
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If your business is setup as an LLC and you are mixing your personal and business expenses, you’re playing with fire 🔥🔥
And if you’re operating without an LLC, you’re straight up crazy!
If you get sued the person/company can come after all your personal assets… like your car, your home, your investment properties, etc. simply because you failed to actually operate your business as a separate entity!
Separating your business and personal expenses using a spreadsheet or a flashy new app is going to save you some tax headaches but it’s NOT going to protect you from losing your personal assets.
SO, WHAT DO YOU NEED TO DO?
YOU NEED TO START OPERATING AS AN ACTUAL BUSINESS:
1️⃣ Setup an LLC if you haven’t already done so. Some states don’t allow agents to operate as an entity so always check first… the last thing you want to do is lose your real estate license.
2️⃣ Open a business bank account. We personally recommend using Relay Bank. A business credit card is also super helpful but use it wisely!
3️⃣ Use your business bank/credit card for all your business income and expense transactions.
4️⃣ Stop using your business as an ATM… give yourself a reasonable pay and set up automatic transfers from your business bank account to your personal bank account – and that is the account you use for personal expenses 🤪














**This post is provided for informational purposes only. Not legal or financial advice. Always check with your an attorney and/or CPA**

09/16/2022

Most small biz owners DIY their bookkeeping because they think it is cost effective.
After all, hiring a bookkeeper does cost money. Problem is… that logic is flawed.
The average small business owner’s time is worth around $150 an hour.
The average small business owner spends about 6 hours a month to complete their own bookkeeping while a professional bookkeeper will take about 2 hours to complete that same work.
If we value the owner’s time at $150 per hour, then the opportunity cost of them doing their own bookkeeping comes out to $900 (150 x 6 hours). That $900 is NOT a write-off!
On the flip side, if the small business owner outsources that bookkeeping to a firm that charges $70 per hour it would cost them $140 (70 x 2 hours). And that $140 IS a write-off!
That is a difference of $760 a month or $9,120 per year!
Again, the bookkeeper’s fees are a write-off and if you find yourself a good one, they should be able to find you additional write-offs throughout the year!
Outsourcing your bookkeeping is a mathematical no-brainer!

09/08/2022

This is one of the more popular real estate exit strategies these days.

Follow us for more tax saving tips!

Curious how much time and money you can save by running your business on the ZanderFi Platform? Visit the link in our bio for a Free Consultation.

09/05/2022

Take a moment today to remind yourself how hard you work for your business.

And then...
Commit to keeping more of your hard earned money!

If you are serious about lowering your tax bill in 2022 then the time is now.
Most small business owners only use their tax advisor to help them prepare and file their tax returns. And most small business owners overpay their taxes every year (don’t believe us, go google it).
Using your professional tax advisor solely to prepare your returns is a surefire way to give your money to the IRS every year.

That’s because there are very few tax saving strategies that an accountant can implement after the year ends.

And that’s where tax planning comes in.
Tax planning is when you sit down with your accountant and review your year to date numbers. You then project what you will make for the remainder of the year and then you can calculate your tax liability.
From there, you can say “ok, if we do absolutely nothing at all then you are going to owe X amount of money. But if we implement a couple of tax saving strategies then you can easily know $5k, $10k, maybe even $50k off your tax liability.

It is hands down one of the TOP 3 ways to save on your taxes.
But you have to be proactive in working with your tax advisor. If you simply sit around and wait until the year is over to start thinking about taxes you will be among the 90% of small business owners that overpay their taxes in 2022.
So when is the best time to do tax planning?

There are only 117 days left in 2022 so we are at a CRUCIAL time to get your books up to date and commit to sitting down and doing a little tax planning with your CPA.

But your books have got to be up to date and accurate otherwise you are projecting your tax liability using the wrong numbers…
Not sure where to start? Our team is ready and willing to help. Simply send us a DM and we will get the ball rolling for you!

08/23/2022

The majority of professional athletes come from low income households.

They go from zero to HERO real quick.

The problem is... they never learn money management skills so they go from hero to ZERO just as quick.

The bottom line is this - you need to be financially literate to have a seat at the table.

NOBODY cares as much about your money as YOU do.

When you become a business owner there is nobody there to guide you on your finances.

The days of your employer withholding and paying your taxes for you are long over.

The automatic contributions to your retirement accounts stop ASAP.

It is entirely on you and you alone to manage your personal finances, but also the finances of your business.

The PROBLEM is... your time is limited.

After all,

Your days,
and nights,
and weekends,
and holidays... are filled with showings, making offers, managing listings, crying with clients, celebrating with clients, meeting with prospective clients.

Don't forget about picking the kiddos up from school at 3... oh sh*t... totally forgot about that one didn't you?

It's ok, they can watch Disney+ in the car at that 4 o'clock showing that your nightmare client just texted to you!

With all that on your plate, how in the world are you supposed to make time for bookkeeping, payroll, tracking mileage, organizing receipts, and getting it all put together before the tax man comes knocking at your door?

You can go broke like most professional athletes...

Or you can become financially literate so your business and personal finances can thrive...

Choice is yours!

08/20/2022

Ready to take your real estate business to the next level?

08/17/2022

If you are serious about paying as little as possible on your taxes there are 3 LEGAL ways to go about it.

But before we get to them understand this...

We can make you look broke on your tax return which is great if you don't want to pay Uncle Sam!

However, if you plan on refinancing a loan, or buying a car, house, an investment property, or a business and you consistently show no income on your tax returns...

GOOD LUCK... you will likely be getting a very high interest rate on that loan 😲

So with that in mind, here are the 3 ways to LEGALLY pay no income taxes:

1️⃣ Don't Make Any Money - No money no honey... and no money means no taxes.

2️⃣ Write off every last penny that you earn. But this will leave you broke... and likely trigger a 🚩 with the folks over at the IRS (don't forget they just got a bunch of money to review your returns) 😲😲

3️⃣ Implement Tax Planning Strategies with a Professional Tax Strategist. Instead of committing tax fraud you can commit to tax planning to LEGALLY reduce your burden to the IRS!

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THE BOTTOM LINE - We can make you look broke on your tax return but is that really what you want?

Paying taxes is buying yourself purchasing power so always consider the cost/benefit analysis and your other goals before you set off on a goal of paying $0 income tax!

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At ZanderFi, we are on a mission to level the playing field so individuals in the real estate game get the same tax benefits as corporate giants.

Curious how much you can save by running your real estate business on the ZanderFi Platform?

Visit our website to learn more about us and schedule a free consultation.

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Disclaimer: This content is purely educational in nature and is NOT intended to be financial or tax advice. Consult with a qualified professional who understands your specific situation before making any financial decision.

08/15/2022

08/13/2022

If your small business finances are a mess... it's OK!
What's not ok is sticking your head in the sand and hoping the mess will go away on it's own.
The mess won't go away. Your business will...

What if you could be more confident in your financial decisions?
What would happen if you could make informed decisions without having to take a finance course or pay an expense CPA?
What if you could quickly make decisions without in-depth analysis?
Stop wasting time pouring over spreadsheets and running 1000 calculations.
When you know your numbers, you will be more dialed into what it takes to operate a healthy and profitable business.
It's time to put more money back into your pocket. With more money in your pocket, you have an incredible power to build generational wealth.
How does it work?
Schedule a free consultation with one of our small business advisors. We get it, sometimes this can be the hardest part!
This call is just to get to know you and your money challenges and for you to get a chance to know us.
We will go over the 3 things you need to keep more of your hard earned money and provide you with a few actionable steps.
If we think we can help you out, then we will discuss our memberships with you.
If your not yet ready for our memberships, then no pressure! And you still get some actionable steps to implement so you can get your business to a point when you need to become a member!
Simple as that! Learn to manage your finances with confidence and simplicity in both your business and personal life.
Link in bio to schedule your consultation.

08/12/2022

Tax brackets can be confusing…

We were talking with one of our members the other day and she had turned down a $25k promotion because it was going to push her into the next tax bracket.

She is currently making $150k per year and turned down the additional $25k because she thought she would only be making an extra $5k after taxes.

She assumed that making an extra $25k was going to push her into the 32% tax bracket (up 8% from her current rate of 24%).

She then assumed that she was paying $36k on her $150k income (150k x .24).

She then calculated that if she moved up to the 32% bracket and made $175k her taxes would be $56k (175k x .32). Therefore, she would only be getting a $5k promotion (25k raise minus the $20k tax increase).

She was wrong.

Contrary to what you might think, when you move up in tax brackets, that doesn’t mean that ALL of your income will be taxed at the higher tax bracket rate!

We do not have a flat tax rate in America. It’s a progressive tax and here’s how it works for her scenario:

Taxable Income up to $10,275 is taxed at 10% = $1,028

Taxable Income from $10,276 to $41,775 is taxed at 12% = $3,780

Taxable Income from $41,776 to $89,075 is taxed at 22% = $10,406

Taxable Income from $89,076 to $162,050 is taxed at 24% = $17,514

Total taxed owed $32,728 with an actual tax rate of 20.2%

But she would be making $175,000 – shouldn’t some of her income be taxed at the 32% tax bracket?

No, her taxable income is reduced by the standard deduction of $12,950 so none of her income is taxed at the 32% rate!

Moral of the story… ALWAYS, ALWAYS, ALWAYS TAKE THE ADDITIONAL INCOME (and work with a tax professional).

Want to know what your taxes will be as your income changes?

Omni Calculator has an incredible calculator just for that purpose and they have hundreds of other calculators if you really want to geek out!