I guess you saw the news about President Trump’s tax returns?
That he hasn’t been paying a lot of federal income tax, even as he’s amassed great wealth?
Our policy is, has been, and always will be that we do NOT engage in politics in our business. We have clients on all sides of the political spectrum, we prefer to focus on taking care of your tax needs, we don’t get into political squabbles.
So, you won’t find anything from us that says President Trump paying minimal income taxes is “good” or “bad.”
We do think, however, that there are some important lessons we ALL can learn from this news…
First lesson being that income tax returns are not a very good gauge on the state of someone’s finances: after all, there is a difference between income and wealth.
Tax returns mostly show income, but wealth is mostly involved with assets.
This matters to YOU, if you’re interested in building (or maintaining) wealth.
Wealthy people are wealthy–and stay wealthy–primarily due to their assets; the things they own.
Real estate, businesses, stocks, and so forth.
Frankly, the news that President Trump has been barely paying any federal income tax is not news to us, as tax professionals. Our tax code is written to favor people who adopt “risk” in order to gain “returns.” Real estate investment, business creation, stock investments, etc.
You can lose ALL your money engaging in any of those activities; in order to incentivize those activities, then, Uncle Sam will give you a lot of tax breaks.
Real estate and businesses, in particular, offer powerful tax advantages.
So, people can argue back and forth about how “good” or “bad” President Trump appears to be, based on his minimal tax payments — but it really doesn’t matter what we think, right?
What matters, in our world, where we only focus on taxes and don’t engage in political arguments, is what is and what can we learn from it.
Bottom line: there really are two tax codes in this country:
1) There is the system for those who rely on do-it-yourself software or some variation thereof (your cousin doing your taxes for free, etc.) This not only costs many, many hours — a lack of expertise can be extremely costly in other ways, especially over the long-term (which is how wealth is mostly acquired).
2) Then there is the other, far more “lucrative” system (in terms of retaining more of your wealth and income) used by those who have trusted experts in their corner. And rely on those experts to put you in the best position, as you grow your financial situation.
And, of course, President Trump–like any wealthy person–uses this second system:
Having trusted experts in his corner, working to reduce his tax exposure, and increase his wealth.
The good news for you? Using this second system isn’t “just for the wealthy”. It can be, it SHOULD BE for you.
Here at Pronto Income Tax, we take an enormous amount of pride in giving advanced tax strategies and TRUE CARING towards every one of our clients. Whether your net worth is $10 or $10 million, you matter! We want to work just as diligently on “optimizing” your tax situation as Donald Trump’s tax advisors do for him.
Of course we want to do everything legally and ethically, as well.
But none of us are required to pay more than what the actual tax code requires.
To us, then, this is the “real” story — at least in terms of what is actually applicable to our daily lives:
Have trusted experts in your corner when it comes to tax matters, and you’re going to be better off!
And that’s what we aspire to be for you, is your trusted experts who care about you and your family.
You shouldn’t have to be “rich,” to get that.
All people deserve trustworthy tax help!
OK that’s all we have for you today.
Please enjoy a great day!
To your family’s lasting financial and emotional peace…
Pronto Income Tax Team
Incidentally, you can take a look at MANY presidential and candidate tax returns, if you really want to see how different ones have handled their business right here.