Tax Planning vs. “Tax Telling,” with Seth Peabody, iTxRe
Seth Peabody: Let’s step into the business owner’s mind and go through their experience and what I’ve garnered from them, also being an entrepreneur. Most CPAs do tax telling. They take your numbers, and they tell you what you owe, and you write the checks, and then you see how much pain it is.
They don’t go into being proactive and thinking of ways to. Reduce your tax and knowing the tax code and using it to the business owner’s advantage. So, for instance, we’re here in Atlanta. A lot of us don’t know about the advantages of oil and gas, and the oil and gas companies really have deep pockets, as we know, and they paid Congress off and Congress makes the rules for the IRS.
And so they have advantageous tax code written specifically to oil and gas. To where, for example, you could take $100,000 and invest it in the stock market and it sits there. You can put it in an independent oil and gas fund and deduct a portion of that in the year you make the investment.
So if you’re at a tax rate and you put in 120 and you’re allowed to deduct a hundred thousand, most everybody’s tax rates, roughly 40%—40 percent times a hundred thousand–you just put $40,000 back in your pocket. So that’s different types of tax strategies and thinking about it differently and being proactive and getting ahead of it.
Listen to Seth’s full ProfitSense with Bill McDermott interview here.
The “One Minute Interview” series is produced by John Ray and the North Fulton studio of Business RadioX® in Alpharetta. You can find the full archive of shows by following this link.
Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions, with over $13 billion in assets and more than 190 banking, lending, wealth management, and financial services offices in Mississippi, Alabama, Tennessee, Georgia, and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.
