This document outlines tax strategies for realtors and brokers. It discusses new laws, the IRS's increased enforcement efforts, new compliance requirements, and penalties. It provides an agenda for a presentation on developing a strategic tax plan, including reviewing past tax returns, assessing the current tax situation, and implementing the right strategies. These strategies include cost acceleration/deceleration, income shifting through entity selection like corporations and S-corporations, and creating an individualized tax plan. The document promotes hiring a tax coach/strategist to help analyze past performance, current strengths and weaknesses, and develop the best game plan to reduce taxes.

1. TAX STRATEGIES
FOR REALTORS & BROKERS
Karla Dennis
Enrolled Agent

2. AGENDA
• New Laws
• New IRS
• New Compliances
• New Penalties
• Strategic Tax Plan

4. The New Laws
• Small Business Jobs Act
• Financial Reform
• Mortgage Lending
• Bank Reform
• Home Owner Bailout
• Wall Street Regulation
• Economic Stimulus
• Health Care Law
• And many more…

5. The New IRS
IRS IS ON A MISSION!
• 5,100 agents hired in
2011 alone to enforce
tax collection and
financial compliance
priorities.
• IRS announces an
11% increase of
AUDITS in 2011 than
past years.

6. Recordkeeping

7. Audit
IRS is
targeting
groups.

8. Filing Taxes On Time

9. Short Sales & Foreclosures

10. New Penalties
The IRS
anticipates $69
Billion in penalties
alone for business
and individuals
who are not
incompliance!!

11. Tax Strategies

12. A Referee vs. A Coach
What is the
difference between
a referee and
a coach?

13. What is Beyond a Winning Attitude?
Championship
Attitude

14. Step 1– Review Previous Tax
Returns
The Coach Will Review Previous Game Tapes?
As Part of your tax planning ask yourself…
• What was your 2010 year’s tax liability?
• What was your adjusted gross income in 2010?
• Did you pay alternative minimum tax in 2010?
• Did you have any tax credits in 2010?

15. Step 2– Assess The Current Situation
The Coach Will Know His Starters, His Subs and His Special Teams
• What expenses do you have to deduct in 2011?
• What income are you reporting in 2011?
• What do you currently have that you are not using?
• Do you have any available tax credits?

16. Step 3– Implementing the Right
Strategy
The Coach Will Call Certain Plays to
Move the Ball Down the Field and
Score a Touchdown
According to the Uniqueness of the Opponent
And the thorough Knowledge of his team’s skills
You have to find and use the best strategy
to reduce taxes based on your unique situation.

17. Cost Acceleration vs.
Decelerate Cost

18. Income Shifting
• Entity Selection
• Corp. vs. S-Corp.
• Sole-Proprietor

19. Create Your Own Tax Plan

20. ANY
QUESTIONS????

21. Karla Dennis, Enrolled
Agent
Tax Strategist
COHESIVE
(800) 878-4051
www.cohesivetax.com