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Have You Ever W2'ed $1,000,000 in a single year?


Vegas64

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26 minutes ago, CHIEF said:

True. He has a CPA that stays on top of it and documents each and every expense. All of his friends that live around him, and that he parties with, he cleans a firebreak around their property for free each year, and does anything they want done extra at a little above cost. Makes it very easy to document them as customers. He sponsors quite a bit to charity golf tournaments, fishing tournaments, etc. A lot of them are customers, or potential customers in O&G. He also bought a couple of semis and started a cattle and hay hauling division for his LLC. But really, construction equipment, and anything else you can fully depreciate the first year seems to work the best for him.

CHIEF

Pun completely intended, but with O&G, make hay while the sun shines, because dark days can be dark indeed.  Diversifying is all you can do sometimes.  

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48 minutes ago, CHIEF said:

True. He has a CPA that stays on top of it and documents each and every expense. All of his friends that live around him, and that he parties with, he cleans a firebreak around their property for free each year, and does anything they want done extra at a little above cost. Makes it very easy to document them as customers. He sponsors quite a bit to charity golf tournaments, fishing tournaments, etc. A lot of them are customers, or potential customers in O&G. He also bought a couple of semis and started a cattle and hay hauling division for his LLC. But really, construction equipment, and anything else you can fully depreciate the first year seems to work the best for him.

CHIEF

He may be fine and have it all documented to a T.  I’ve just seen more than a few high flying up and comers play fast and loose with that stuff and end up with their ass in a sling when they are finally done with the IRS/States/localities.   Which ironically manifests itself when business sucks so it’s a big issue.  
 

There is no doubt there are big tax advantages to owning an LLC and associated deductions.  
 

 

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1 hour ago, CHIEF said:

True. He has a CPA that stays on top of it and documents each and every expense. All of his friends that live around him, and that he parties with, he cleans a firebreak around their property for free each year, and does anything they want done extra at a little above cost. Makes it very easy to document them as customers. He sponsors quite a bit to charity golf tournaments, fishing tournaments, etc. A lot of them are customers, or potential customers in O&G. He also bought a couple of semis and started a cattle and hay hauling division for his LLC. But really, construction equipment, and anything else you can fully depreciate the first year seems to work the best for him.

CHIEF

He should start farming.

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2 hours ago, Incredulity said:

He may be fine and have it all documented to a T.  I’ve just seen more than a few high flying up and comers play fast and loose with that stuff and end up with their ass in a sling when they are finally done with the IRS/States/localities.   Which ironically manifests itself when business sucks so it’s a big issue.  
 

There is no doubt there are big tax advantages to owning an LLC and associated deductions.  
 

 

That's what I do on a much smaller scale, with my Mom. Most of our assets are in two different LLCs that we both contribute to. My F-350, and our shop had to be depreciated, but our tractor, skid steer, forklift, and two trailers we took the full amount off the first year they were purchased. I make sure and take clients to the deer lease a couple of times a year to shoot hogs, and use the Ranger to show properties. I think the lease and the Ranger are pretty easy to explain, but probably would be the only thing that might raise any kind of flag. I make sure to put money back in an interest bearing account in case something were to come up. I think the risk is worth the reward, I've known guys who have operated this way for years, that have taken much riskier tax positions than I have, and have yet to be audited. But, money does need to be put back, if the IRS doesn't see things the same.

CHIEF

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4 hours ago, CHIEF said:

True. He has a CPA that stays on top of it and documents each and every expense. All of his friends that live around him, and that he parties with, he cleans a firebreak around their property for free each year, and does anything they want done extra at a little above cost. Makes it very easy to document them as customers. He sponsors quite a bit to charity golf tournaments, fishing tournaments, etc. A lot of them are customers, or potential customers in O&G. He also bought a couple of semis and started a cattle and hay hauling division for his LLC. But really, construction equipment, and anything else you can fully depreciate the first year seems to work the best for him.

CHIEF

So be easy and free

When you drink on me

I'm a man you don't meet every day.

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