An Interview with author Sandy Botkin - Lower your Taxes - Big Time!

Greg: What inspired you to start the Tax Reduction Institute?

Sandy: It was a number of things. When I was at the IRS, I realized that a lot of people were overpaying on their taxes. There wasn't any real good way to learn how to properly bulletproof your records and get the kinds of information needed in order to document all your deductions. Even today that information is limited. The thing that really gets me is my parents. My parents were the largest antique dealers in North America. Despite having a good business, they didn't take major vacations, they didn't drive fancy cars, they didn't live in a big house. One day I filed an amended tax return for my father, after it was prepared by an accountant in Long Island, and got back almost $12,000.00. I realized the information isn't really getting disseminated, so I started up the Tax Reduction Institute with a guy who was one of the founders and we never looked back. We came out with new material along with a Canadian tax program, then I realized that there was not a good documentation system out there for the average self employed person. You can tell people but, how are they going to remember all this stuff?

I came out with the Tax Reduction Diary which has all the tax deduction questions that IRS requires right in front of you everyday. In fact, I just got a guy in my last seminar in Nashville who was being audited by the IRS and they found absolutely nothing wrong. They walked away with no change. He used my Tax Diary and the IRS agent was very impressed.

There was also a guy that I met a the Denver airport of all places, and he was telling me about his father who was in the Heating & Air Conditioning business. His father wasn't a very easy guy to deal with. As far as he could remember, his father didn't give him a lot of hugs growing up. This gentlemen became an insurance executive and made a lot of money using my tax program. One day the son saw his Dad in the Heating & Air Conditioning plant and said, “Dad, you work hard and you should be retired by now.” The father said, I can't quit... I'm running my apartment, I'm supporting your Mom. The son pulled out the keys for a new fishing boat, because his Dad liked to fish... the son said, Dad I got this tax program, I paid for the fishing boat, you never have to work again. The Dad could retire based on what the son had learned & implemented from my tax strategies. The son told me that his father literally stopped, a tear rolled down his cheek, and his Dad gave him a hug for the first time in 20 years.

So, that's what keeps me going.

Greg: Wow what a great story! That had to make you feel good. So it's not just about educating people, it's making a financial impact on their lives!

Sandy: I also realized that real estate was a big area where people needed help. You ask people how to treat individual items on a settlement sheet and many don't know. You take my book, Real Estate Tax Secrets of the Rich and look up settlement sheets, ask your accountant, they aren't going to know most of that stuff. There's a huge need!

Greg: How can the Tax Reduction Institute help someone just starting in business to the seasoned business owner?

Sandy: We did a study, the average person, just from my tax strategies program, generates almost $21,000 in new deductions on money that they're already spending. So the way we can help people is that we can put a lot of money in their pocket, and not to mention, we're showing them how to bulletproof their records for the rest of their life; and finally... Listen to this, and this is really the essence of what I do... If I can get people early enough, by reducing their taxes, getting them a home-based business, and following my advice, I believe I could eliminate just about every home foreclosure in the United States.

Greg: That's a strong statement Sandy...

Sandy: Think about it, I can help people average a couple thousand dollars or more in tax savings in a year. Average! Now, if you put that money that you saved in taxes in a average performing mutual fund over 40 years, it will be worth $2-2.5 Million dollars including interest. That's what we're talking about! I could eliminate every foreclosure in this country, if people would follow my advice and I could get them early enough.

Greg: That's one of the reasons why we are doing this interview Sandy. People are not taught this in traditional school.

Sandy: And they're not taught this in College either... that's why I am working on another book about financial planning. Financial planning is another thing that people don't really get. I run into people all the time who absolutely don't have a clue as to what they should be doing... they have a will and they think that they've done plenty of financial planning.

Greg: I don't care whether someone has a photography business, a wedding planning business, or a Network Marketing business, how much money should someone be earning from their home-based business before they consider incorporating?

Sandy: I have about 110 pages in my book that cover the pros and cons of different entities. It's a really good analysis.

Greg: I start a home based business, I engage in Network Marketing, how long do I wait to start a corporation? Do I really need to be incorporated or should I wait until I reach a certain income?

Sandy: The brand new person in Network Marketing should not incorporate under any circumstances. It's okay to wait a while. You can incorporate at any time, there's no rush. It's simple, I want people to start off Network Marketing - simple. That's my attitude. There's no liability in Network Marketing, you don't need a corporation. You start making 70-80k from your business, you can begin to look at an S corp or other entity later for more tax advantages.

Greg: I start a business, I buy your book and put the knowledge into practice, how much could I potentially save in taxes in my first year of business?

Sandy: I'm not sure that I can give a said answer on this...

Greg: I'm thinking about $5,000.00...

Sandy: I would say easily, easily $3,000-$6000. Easily! If you do it right. And certainly it may be much more.

Greg: Recently, I was at the local UPS store and was in discussion with the store owner, Art, and we were discussing the current economic situation. Art said that quite a few people come into the store complaining about how they have been laid off and can only find a $9.00/hour part time job. He said that he can't figure out why they don't take the time off, maybe they're drawing on unemployment, and start a business.

Sandy: I have not concept, many people just don't understand. To start a business you have to have an idea. You start a traditional business - think of the drawbacks when you start a traditional business. You have to have an office, you'll have overhead, and many times you have to have employees. Usually you don't want to pay your employees too much because then you'll have problems with cash flow. Which makes sense, because most employees only want to work hard enough not to get fired. You have to put up with that kind of attitude. Then you have all the administrative hassles with traditional business and then you have to learn how to market! No wonder traditional business doesn't work... I mean it's just really a major problem. That's why there is such a high failure rate in traditional business!

In Network Marketing you get the marketing materials. You get the track to run on as to what you have to do. You get the systems. You don't have to store inventory. You don't need an outside office. You don't need all the things that a traditional business has to have. You don't have to have employees unless you are extremely successful as a Network Marketer and you may want an assistant. This success rate in Network Marketing compared to traditional business is much higher. It's got to be, because traditional businesses have a lot of drawbacks. Your tax advantages are almost the same. With a Network Marketing business, the tax advantages are still better. With a Network Marketing business you can write off your home office, you can eliminate your commuting, unless you have a really big home.

Greg: Do you think that the current economic conditions will spark business growth or will most people continue to keep their heads in the sand?

Sandy: People don't have a choice! The current economic conditions are horrible. I think the only reason why they (Fed) want to bail out the banks is so that we don't have a Depression. I don't think it's been this bad since I can remember.

Greg: Not in my lifetime.

Sandy: Not in my lifetime. This economy is as close to a Depression as it gets without being a Depression. I think things will get worse before they get better.

Greg: I think we have two factors going on right now... the current economic situation is in the tank and it is a Presidential election year and people are waiting for the President-elect to be sworn in...

Sandy: You've got a bad situation. You've got a weak dollar, an inept Congress that in my judgment will be horrible for the economy. In a bad economy, more people will gravitate to start a home based business; it will happen.

Greg: I know that my networking company, isXperia, had one of it's best months ever in October. From June 2007 to October 2008, this past October was great in new distributor growth, retail sales, and overall revenue growth.

Sandy: And as the economy worsens, most Network Marketing companies, if they're doing things correctly, are going to be in good shape. They're going to have more and more people want to join them. Because the economy gets worse, and people are not going to have a choice. They're not! What are you doing to do? Take two jobs and still not come out ahead. And go through what I mentioned in the first chapter of my book, Why you'd have to be brain dead not to have a home-based business and not come out ahead because of the tax system. What are you going to do?

Greg: I didn't know that you were such an advocate of Network Marketing...

Sandy: I am not necessarily an advocate of Network Marketing although, I believe it's a good opportunity. Not all Network Marketing opportunities are good to be honest with you, they're not...

Greg: I agree. You and I both know that there are amateurs and professionals in every industry.

Sandy: I am an advocate of being in your own business. I think that it's totally insane for the average employee to put in 50, 60, or 70 hour work weeks where they don't get substantially better pay for it where they can put in 40 hours, and put the difference into building a side business with side income and maybe even quit the job all together.

Greg: I've experienced what you teach and talk about in the book. At one time, I had a consulting practice and had a Network Marketing business on the side. I made well in excess of 6 figures in income and through your techniques, saved gobs of money over the years in legitimate tax savings. Since then, I closed the consulting practice to be a Internet & Network Marketing professional.

Sandy: That's what I would do. I think it's funny, people will work 50, 60, 70 hours helping out their company to make more money... why? Really?

Greg: Just ask the Lehman Brothers employees when 6,000 got their walking slips several weeks ago and it looks like another 100,000 people may be loosing their jobs in the financial sector.

Sandy: That's my point, why? I don't get it... for the one half of one percent chance that they might make CEO one day? Why? I doesn't make any sense to me. You should be building a side business and forget about putting in extra time for the employer. To me, that's just common sense. Anyone who puts in more than 40 hours without having a side business is down right stupid.

Greg: May I quote you on that?

Sandy: If the employer has a bad time, they'll dump you in a heartbeat!

Greg: Many people don't succeed when they start a business, who shouldn't start a business?

Sandy: You're certainly much wiser to be in business from a tax perspective & from a security perspective, than working for a company & trying to put in overtime.

There are some people who are not right for any kind of business. You have to have a certain amount of leadership, you have to have a certain amount of drive, you have to be self-motivated. If you're not self motivated, no business is going to work. Nobody is going to tell you every day that you've got to get up and do the work. You also have to have some descent people skills. It's kind of hard to make it in any business if people don't like you!

Greg: Right!

Sandy: You have to have some LUCK. However, my LUCK is not what most people think it is. LUCK for me is Labor Under Correct Knowledge. The reason for Network Marketing, Franchising, and businesses like that is... they tell you what to do, show you what to do, and you've got the knowledge to succeed. That's why I like Franchise and Network Marketing companies. But then, you've got to do some research, not all companies are equal, not all franchises are equal.

Greg: In closing Sandy, any final thoughts?

Sandy: Why You Would Have to be Brain Dead NOT to Own Your Own Business is really a key chapter in my book.

Greg: Chapter 1 is key!

Sandy: I think that the important point is that if you start a part-time business - do what is required to make that business successful and make a couple extra hundred dollars or a couple thousand dollars per month and use that money to pay off your debt. It's really not that hard to make money and unfortunately people think it is. It's really not that hard!

As a tax lawyer, I am very fortunate in a way because I meet successful people. I've found that there are three things why and how you become really, really rich in this country. The first thing is that every multi-millionaire who I've ever met all say that you must get your taxes down to the legal minimum! Donald Trump has also said the same thing. It is critical that people really get their taxes down.

The second thing is saving. Most people think you have to do something sophisticated like stock trading, real estate, or you have to work real hard – nope! Eighty five percent of all the multi-millionaires in this country who I've met are just average folks, but they do one thing differently than others - they are savers! They put away a minimum of 10% of what they make a year. They don't spend that money on college education, they don't spend that money on vacations, they don't spend that money on anything – they save it for retirement.

Finally, they diversified their investments.

I had to pick a fourth thing, they have multiple streams of income in case one stream stopped. Working hard for an employer is not one of them!

Greg: Sandy it has been a pleasure today! Thank you for the time. You're an awesome human being! You can purchase any of Sandy Botkin's books from his website at http://www.taxreductioninstitute.com/

Great way to read a book!

One of my business partners, Mike, gave me a great idea on how to read a book!

I am an auditory learner and always challenged by longer term, visual activities like reading a book. I was the type where I could easily have 3-4 books going at once. Yet, many times, I would not finish any of them. That was certainly frustrating to me. I eventually started to listening to books on CD or mp3, as listening is an auditory excercise.

I began reading more books again with a different approach. Reading is an important excercise. So it is said that leaders are readers. Today, if I am reading a book that grabs my attention, I finish it cover to cover. No more stacks of half read books.

I read the book a second time and highlight it. I read it a third time, reading only the highlights, and then I journal the highlights in a composition book! You can get those hard cover, marble composition books for a buck at any dollar store.

You want to talk about knowledge retention - wow! The next time you're reading a good book, give this method a try.

Making Copies with a Bonus!

I went to the local copy shop today to make copies for an upcoming business seminar that I am involved with and got a real bonus.

When I walked into the store, a pleasant gentleman approached me and asked if I needed copies. We chit chatted for a moment and made introductions. Lo & behold, the gentleman that I was speaking to was the owner, Art.

Art & I started conversing about business, how he got started & WHY? He got tired of Corporate America and wanted to be his own boss. The current economy came up in our discussion. Art said to me that he sees quite a few people coming in on a weekly basis complaining about loosing their jobs and that they can only find part-time jobs that pay crap. Art said, I don't understand why they don't take the time off and start a business. As I was listening, I thought, this business owner gets it!! Why not take the time off and start a business?

Unfortunately, too many people are brainwashed. Go to school, get a good education, so we can get what? ...a job. Please don't think I'm against jobs and being an employee. I have been an employee in the past, however, I went into it as a training ground, not a lifestyle. My attitude was that I was going to take that job, learn everything that I could, give it 110%, and take the knowledge and the experience to eventually start my own business.

When I was in college my father, who was only a few years away from retirement, was given options by the "big company" where he worked for 30 years. The company was reorganizing and my father's options were to move South or to the Mid-West or get out.

My father made a decision to uproot the family and move South. The move caused a lot of grief on the family, especially my mother. It was at that moment that I said to myself, this is a business system that I don't want to be part of in the future... the business system of being an employee. My mother was very traditional - go to school, get a good education, and get a good job. Thankfully, my Godmother, was an entrepenuer!

My Godmother had multiple business interests. She had multiple streams of income (long before the best selling book came out). My Godmother said to me... go to school, get an education, get a job, learn everything you can about business and START YOUR OWN!

My godmother made some short term sacrifices in the early years in business, and over time accumulated all the trappings of wealth. I chose to follow my Godmother's brainwashing vs. the more traditional approach. I also noticed growing up, as my Godmother became more successful, she became more involved in her church, the community, and had the income to donate to different causes. Why? Because her businesses where running and generating income whether she was there or not. My godmother built income producing assets that paid her residual income. Residual income is money that comes in whether you're working or not.

So I come back to Art's question, why don't people take the time to start they're own business? If you have your own business, fantastic! If you don't - instead of thinking about Art's question, do something about it!

Make it a great day & thanks for the copies Art!

Don't let your home business nickel & dime you out of business!

I hate to admit it (I did go to the Networking School of Hard Knocks University) as I've spent, or should I say, wasted thousands of dollars over the years on buying leads & other silly reaching out methods to expose my products/services and business opportunity.

I'd get a call from a lead company saying that it's their understanding that I have a network marketing business and they have a fresh, "hot", mouth watering list of leads of business opportunity seekers for sale! Certainly being energized about growing my business, I'd plunk down several hundred dollars and buy the list... and start making the calls... ugh!

Looking back, I should have been selling grave plots because the leads of these "hot", motivated business opportunity seekers might as well be the living dead.

My message to you is save your money! Don't do it!

Despite living in these uncertain economic times, where 74% of Americans are scared to death about meeting their financial responsibilities... worried about paying the mortgage, the car note, filling up the gas tank... more people are starting to wake up and realize Corporate America is becoming more insecure and are turning to the Network Marketing Industry as a vehicle to get out of the rat race. This country was built on business ownership and entrepreneurship!

Regardless of what business you're in, or what product you're selling, or how great you think your compensation plan is or isn't - this system can help you generate leads effortlessly. Think about it... people actually reaching out to you! Enjoy the free videos.
http://gfitzpat.magneticsponsoringonline.com/

Wealth Building & Tax Reduction

Wow! Just finished reading a great book! Not a book on motivation, attitude, or goal setting - but... taxes! Yes, you probably went ugh - taxes. Regardless of whether you're a traditional business owner or a network marketer, Lower Your Taxes - Big Time! by Sandy Botkin is a must read. Sandy Botkin is a former IRS attorney and senior tax law specialist.

For the new business owner, running a legitimate business from your home office has great tax advantages. First, if you already don't have a good accountant, get one! Call a successful friend or business acquaintance and ask them who they use for their accountant. I recommend getting three (3) recommendations and call each accountant and interview them. Don't pick the cheapest accountant! Pick the accountant who you feel will be a trusted advisor, who you feel comfortable with, & who is supportive of your business interests/goals. I've been with the same accountant for 14 years. He's a tremendous resource & trusted advisor.

While you're choosing your accountant, order this book!

It can possibly save you thousands of dollars even if you're building your business on a part-time basis and still employed. I had to chuckle when I opened the Table of Contents and read the Chapter titles. Chapter 1 - Why You Would Be Brain Dead Not to Start a Home-Based Business (if you don't already have one). You'll have to get the book to read the rest of that story. Wouldn't it be great to find out how to deduct your family vacation as a legitimate tax deduction? Wouldn't it be great to learn how to turn your vehicle into a tax deduction with gas prices soaring through the roof? Get the book.

Many people going into business today have never been in business. Part of our business education is learning to become more financially intelligent - that includes understanding tax advantages as a business owner. Sandy's book will save you a lot of time, effort, & possibly grief.

You can get Sandy Botkin's book on Amazon.com. You can also visit Sandy's website directly and get his free reports & tips at http://www.taxreductioninstitute.com/article.asp

Make an impact today! Greg