Carter Cofield
Appearances
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
If your tax strategist can't tell you before you hire them how much money they're going to be able to save you, walk away. Because we work for all of our clients for free. I know how much I'm going to save you before I pay you. So I'm an investment more than I am a call.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Well, you can just reach out to our company. If you find me on Instagram, Coalfield underscore advisor, shoot me a DM. Let me know that you need some help. We have a team that will get you on a call with our team to hire us. But I mean, if your tax strategies can't tell you before you hire them how much money they're going to be able to save, you walk away. Yeah.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
because we work for all of our clients for free. I know how much I'm going to save you before I pay you.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
You have to have some background in tax strategy or whatever you're trying to hire for, because educated answers only come from educated questions. Yeah, yeah, yeah. So the better the question, the better the answer. So I would ask them, what are some strategies I can use to save on taxes with my family? There are so many tax strategies, hiring your kids, hiring your spouse, the spouse of Lupo.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
So I would ask them, how can I leverage my family to save on taxes? How can I leverage my home to save on taxes? And what are some tax strategies that I'm not currently doing that you think you could help me implement? All these are open-ended questions to make them fill in the gap.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
And so I decided I want to leave corporate America and start a company where I can just help entrepreneurs save on taxes because we work the hardest. We put our butt on the line. We do everything. And then a silent business partner says, hey, you made a million. I want to take 50% of that. And that's not fair. So I found out we can do two things.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Okay, top business tip is if you want to go fast, go alone. If you want to go far, go together. And I had learned that the hard way. I was a hard nose. I could put everything on my own, and I had to find the right team of people that can support me to build a bigger vision. You can get to a million dollars a year kind of on your own, but you're trying to get to eight, nine figures.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
There's no way you're going to do that without a team. So hire the team. I think the best personal advice I got was if you do what is easy, your life will be hard. If you do what is hard, your life will be easy, right? Let's shout out to Les Brown. Because so many times early on we like we start a business they were like this is hard like this sucks I don't know what I'm doing.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
I'm stressed out, but that's okay Because if you take care of the hard stuff now, you know, the rest of your life is gonna be so much easier later So that's one thing that I really harp on and then if I could add a bonus, you know, um When it gets hard get happy and I'm always at this easy because when it gets hard
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
after you get through it, you're going to look back and anybody who wants to have what you have, they have to go through that gauntlet too. So it goes from poor me to poor everybody else and fucking try to catch me.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
We can get upset about it or we can get smart about it. So that's what I decided to do.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
And I'll give you a story on that because I didn't take social media seriously tomorrow a good friend of mine gave me this analogy I said she posts she posted every single day three times a day and will live every day for a year Wow, I said why do you commit so hard?
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
She said, okay, Carter, if you, if it was the NBA playoffs and you turned out ESPN and they weren't playing a replay, how would you feel? I feel upset. She said, okay, what about day two? You missed the game, you're working. Did they have to replace it? I said, no. She said, how would you feel? I said, really upset. She said, what about day three? You go to ESPN, they don't have any of the recap.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
I said, I'll probably stop watching ESPN. And she said, that's how your followers feel when you stop showing up. And I was like, wow. Especially as a sports junkie. So like, if you stop showing up for people, like they will stop following you. They will stop consuming your content. So that's how it made me show up every single day.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Yeah, so our company's name is Melanin Money. So on YouTube is where our main focus is. We put out content three times a week. So they can go Melanin Money on YouTube. And they get in my social media personal handle. It's Cofield underscore advisor, where I give out three tax tips every day. And if you don't see free a day, make sure you call it.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
One of my favorite quotes is that we should all pay what we legally owe in taxes. Let's not leave a tip. You know what I'm saying? A lot of people are tipping the IRS unwillingly or unknowingly because they don't have a tax strategy. And that's where I come in, that's where me and my team comes in, because there are strategies that we can implement to make sure you minimize your tax bill.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Yeah, so intro tip is understanding that the IRS says any expense that is both ordinary and necessary for your business, you get to deduct. So it's up to you to define if something is ordinary or necessary for your business. So if you buy a drone, a lot of people think that's a personal expense.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
But you as a marketer understand that a drone is a perfect way to shoot amazing content for your business. So now we are in this position of shifting personal expenses from our personal books to switching up the business expenses, which the IRS gives us a tax deduction for these expenses.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
So I think the simplest level is what am I already paying for personally that I can turn it to a business expense so my business can start paying for it versus me having to pay for it. So I think that's the base level for people to understand.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Yeah, so I love what you said because you determine on the front end, right? Before you spend the money, is it a personal expense or is it a business expense? And then use that card for it, right? So now that we understand the basics, we can expand and get a little bit more creative.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
But investing money to get a deduction isn't even better. Another strategy that I think is big in today's space is...
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
So one of the most profound examples that we've seen in our company recently of somebody turning a potential personal expense to a business expense was the following. So our client was in the coaching space, high-ticket mastermind client, and he wanted to purchase a yacht. And it was expensive. Yeah, it was gonna be about three to four million.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
He came to us and said, is there a way that I can write this off in my business? We said, yes. If you're buying the yacht for the pursuit of income, you can't. So his mastermind program, I think, was $50,000. And then he added a monthly yacht experience to it. So he took his price of mastermind from $50,000 to $75,000 just for adding the yacht.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
And that's literally the pursuit of income going from $50,000 to $75,000. That is why he's buying the yacht. So he purchased the yacht and he ended up selling like 10 tickets to that new mastermind immediately. So that's $750,000 of income. And he takes his clients out on a boat every single month, has the log.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
And now he's able to write off a portion of that yacht and all the expenses that come with it. So that was a million plus dollar tax deduction for him getting that yacht.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
let our clients know that's in that price range is that you know spending money for deductions is okay but investing money to get deduction is even better so uh we tell them the more you invest the less you pay the ir yeah so setting up some some specific self-directed retirement plans solo 401k is my favorite if you don't have any full-time employees in your business
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
you can put up to $69,000 and you can invest that money and you will get a $69,000 tax deduction for doing so. You bring your spouse into the business, it doubles. Now you get $138,000 tax deduction for investing $138,000. If you don't like the stock market, cool, we can do a self-directed version. Now we can invest in crypto. Now we can buy other businesses. Now we can do whatever we want.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Yeah, so that's a self-directed solo 401k strategy. Another strategy that I think is big in today's space is a lot of companies, especially in the consulting and coaching space, they need to have some type of media to their company if they want to grow. So this strategy is called the self-rental strategy. We did this for our company.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
If you were to purchase a building, let's say it costs a million dollars. I'm using that for math purposes. And we bought a building to turn into a content studio. And then we lease that building to our business. It's called the self-rental strategy. We can do a cost segregation study and write off 30% of the value of the building in year one.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
So we went and bought a million-dollar property for our company, and we got 30% $310,000 tax deduction for a studio that we already had to use. And we were able to put like 10% down. So we exchanged $100,000 for a $310,000 tax deduction. And then now we're going to obviously next year rent out the studio to other content creators and things like that.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
I'll approve it though. I'll approve it, yeah, yeah, yeah.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Yeah, I was like, dude, you're fucked up, brother.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Absolutely right. And I think the biggest part about having the wife be the real estate professional status is that. If that wasn't the case and you were to buy a long-term rental, they would cap your write-offs at 25. Yes, exactly. But now there's no cap on your write-offs and you can buy two, three properties. Let's say you bought a $3 million property.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
It's a $900,000 tax deduction and you're building your real estate portfolio at the same time.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
thousand and then we can actually write that off as an expense too so that's a big one because a lot of people don't know that yeah i don't know who's teaching this me or you man but yeah so the augusta rule just to clarify so people know how to do it at home you can legally rent out a property that you own to yourself for business and the other key problem i wanted to just harp on is that that
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
you know, you get $3,000 a night times 14. It's about 45 or something. Yeah, so let's call it 45,000. That's tax-free income to you. And that's also a tax deduction for your business. So it's a double... It's a double win. Yep. And I got one more. Is that okay?
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
You want to go through all of it? Yeah. And another tip there is that if you strategically do your masterminds around high season, you go from, you know, 3,000 a weekend. Exactly. So the days matter. So what we tell our clients to do is look at the days in your city that a big event is coming. So we had a client do it in Phoenix when the Super Bowl came. Or Basel in Miami this weekend, right?
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Well, so it was funny because we all want to make money, right? And so when I started working in corporate America in the tax field, our clients would make a lot of money, but they were really upset because they were paying a lot of money in taxes. So I learned very early on that it's not about how much money you make. It's about how much money you can't, right?
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Yeah. Or that, or that. So absolutely.
Living The Red Life
The Tax Loopholes You’re Missing - Carter Cofield
Lowest tax rules come from people of wealth that have stature to actually get things done. So they were getting $100,000 tax-free income because their properties at Augusta go absolutely crazy.
The Game with Alex Hormozi
Business Scaling Workshop Live Q&A | Ep 827
How you doing? Carter Cofield. We sell tax and financial services to high-income entrepreneurs. We do about $9 million in revenue. I would like to be at $25 million by the end of this year. What's stopping us? I know the constraint is people. We need more advisors to service our clients. We need a faster onboarding process to do more five-day virtual events.
The Game with Alex Hormozi
Business Scaling Workshop Live Q&A | Ep 827
I don't think it takes the whole company to fix that constraint. I think it's HR, CSMs. Is it okay to have the rest of the company focus on a different constraint or would that like kill team morale? How do you balance constraints across departments?
The Game with Alex Hormozi
Business Scaling Workshop Live Q&A | Ep 827
That's what we see. It's like, well, sales has this priority, but operations, this is not a priority for us right now.