#20 | Practical Tax feat. Kerry Lutz

Practical Tax with Steve Moskowitz

Steve sits down with guest Kerry Lutz to talk all things finance. From how to pay the minimum amount legal taxes, to tax incentives that motivate Kerry, and even some hot predictions about inflation. You'll want to make sure to listen to every minute! Listen to the full episode to learn more! Enjoying the Podcast? Take our quick survey to let us know what we're doing right and what you want to hear more of! Episode Transcript Intro: You're listening to the Practical Tax podcast with tax attorney Steve Moskowitz. The Practical Tax podcast is brought to you by Moskowitz LLP, a tax law firm. Steve Moskowitz: Hello and welcome to everyone out there. We'd like to thank you for joining us today. And I'm Steve Moskowitz, the host and I'd like you to go ahead and introduce yourself and tell the audience about yourself. Kerry Lutz: Okay, well, I'm Kerry Lutz, recovering attorney, podcaster, communications consultant, work in alternative investments and have got a podcast, the "Financial Survival Network" that has been running since 2011, over 7,500 episodes. Steve Moskowitz: Very nice. And tell us what your thoughts are when you think about this time Lutz, the favorite time of the year, tax season. Kerry Lutz: My favorite. My thoughts are how can I pay as little as possible and stay out of trouble? Legally, ethically, pay the least amount of taxes possible. As judge Learned Hand said "It's every Americans duty to minimize their tax burden through legal means." Steve Moskowitz: I remember many moons ago studying that case in law school. And there's so much to that. And that's what we're all about in our firm. Where you say, "Okay how do we legally save taxes?" And what everybody should realize is that the tax laws are two purposes. Everybody knows one purpose. They know extracting taxes from us but the other purpose is a system of incentives. Because in a democracy, the government can't order us to do something. But how do they get us to do something they want us to do because it's good for the economy but they can't order us? They give us tax incentives. And tell us what are some of the tax incentives that motivate you to make an investment or do something differently? Kerry Lutz: Well, obviously when it comes to conventional investments, real estate really has no equal. And I look at that tax deductibility of interests and non-cash outlays like depreciation, bonus depreciation section 179, all of that. When I look at it I like real estate, I like assets that have cashflow that can be leveraged. Different types of assets because not only the tax advantage but they do well in inflationary times. Steve Moskowitz: Excellent. And we have a lot in common. I see we've graduated from the same law school. Kerry Lutz: Oh, hey, the best little law school on Worth street. We used to call it. Steve Moskowitz: Indeed. And we're talking about real estate. Just yesterday in The Wall Street Journal, I was quoted about the value of DSTs, Delaware Statutory Trust. And most people are familiar with 1031s but DSTs, Delaware Statutory Trust provides such an additional benefit for clients. How do you feel about 'em? Kerry Lutz: Well, very familiar with trusts. I have several of myself. The benefits of trusts. So many people really don't have a clue but that's how the super wealthy manage to hold onto their wealth and pass it on to success of generations without devastating taxes, asset protection, so many different benefits accrue to you. The ability to buy things in the trust and basically deduct all expenses that you wouldn't otherwise be able to, had you not owned an asset in the trust. Meaning, well, you're the expert Steve, but the list goes on and on and on. Steve Moskowitz: Well, one of the reasons you do it is for asset protection 'cause today in our society, a lot of people feel that if you have something it's unfair and the only way to make it fair is to take it away from you....