Track net worth, not just income.
Make a million and spend a million, and you're still broke. The one number worth checking every month.
From Lesson 2
Why you should track net worth, not just income
Income tells you what came in. Net worth tells you what you kept. Add up what you own, subtract what you owe, and check it every month. If it isn't growing, a bigger income alone won't fix it. It's the clearest scoreboard you and your CPA can share.
Questions to ask your CPA
- Can you help me set up a simple personal balance sheet?
- Which of my business decisions moved my net worth last year?
- What should I watch besides taxable income?
These are my opinions, not gospel. Take this to a CPA who cares about you.
Education, not tax or legal advice. Talk with a CPA about your own situation.
Brain Bites on this
The Augusta Rule only works if you can prove it.
Rent your home to your business for 14 days or fewer a year and that rent can be tax-free to you. The paperwork is the whole game.
Source: IRC §280A(g)
Familiar is not the same as know.
Most tax 'hacks' live at the familiar level. Take advice from people who've done the thing.
From Lesson 6