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In this episode, listeners are welcomed into the intricate world of tax planning with insights from Chris Picciurro. As the self-proclaimed voice of tax planning, Chris, alongside his co-host, jumps deep into how strategic tax planning is not only about compliance but a forward-thinking mindset aimed at minimizing lifetime tax liabilities. This episode highlights the synergy between tax preparation and proactivity—explaining why the journey to legally and ethically reduce taxes demands attention similar to everyday savings practices.
In a world where tax management is often reactive, this episode challenges taxpayers to shift their focus to strategic tax planning. By looking forward—akin to looking through a car's windshield rather than its rearview mirror—taxpayers can better navigate potential pitfalls and optimize their financial landscapes. The conversation emphasizes the importance of engaging with a community of tax professionals and implementation partners, moving away from doing it alone, to harnessing the collective knowledge of seasoned experts. This is where the Teaching Tax Flow community comes into play, offering resources and support for individuals willing to plan and strategize for better financial health.
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www.teachingtaxflow.com/hub
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Book a 30-minute complimentary discovery session at teachingtaxflow.com/legacy
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👉 Spotify https://bit.ly/3KdmtJL
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👉 Amazon https://amzn.to/4qmdqa5
👉 iHeart https://bit.ly/iheart-TTF
- (00:01) - Understanding Tax Planning and Its Importance for Everyone
- (06:29) - Driving Efficiency Versus Financial Wisdom in Vehicle Choices
- (07:24) - The Importance of Forward-Looking Tax Planning and Strategy
- (10:09) - Effective Tax Planning Requires Strategic Navigation and Adaptability
- (14:04) - The Importance of Accurate Tax Planning and Community Support
Creators and Guests
What is Teaching Tax Flow: The Podcast?
Welcome to “Teaching Tax Flow: The Podcast”, the show that’s all about demystifying taxes and helping you keep more of your hard-earned income in your pocket.
Hosted by tax experts from the Teaching Tax Flow team, this unfiltered (but clean) podcast is designed to empower you with the knowledge and tools you need to confidently navigate the world of taxes. We’ll cover everything from understanding tax laws and regulations to maximizing deductions and credits.
In each episode, we’ll break down a specific tax-related topic in a clear and accessible way, providing practical tips and strategies you can use to optimize your tax situation. We’ll also answer listener questions, share the mic with amazing guests, and share real-world examples to help illustrate key concepts.
Whether you’re a freelancer, small business owner, real estate investor, or just looking to understand your taxes better, this podcast is for you. So tune in, take notes, and start building your confidence in taxes today.
Produced and hosted by Teaching Tax Flow.
www.TeachingTaxFlow.com
Hey, everyone, and welcome back to the Teaching Tax Flow Podcast episode one eighty nine. Today, we are going deep into the roots of teaching tax flow. If you didn't know it, our actual slogan that you've probably seen us out there talking about, if you've really listened to every show, you know that's what we're all about. We literally are the voice of tax planning. So when I say we, I really mean Chris.
John Tripolsky:I just help him deliver what the heck he's talking about. But it's a very important term that I don't think a lot of people know exactly what it is. You could probably assume what it is, but there's a lot more that goes behind the scenes. I know he has a fantastic analogy that he's gonna describe to you guys. I'm not gonna give any teasers for it.
John Tripolsky:That's on him. But it really, really will illustrate this for you. So we're talking about planning. Not gonna say anything else because I'm gonna start to, say tread water a little bit and give you too much. So without further ado, let's actually talk about TTF, teaching tax flow, and the voice of tax planning.
John Tripolsky:Chris Picciurro, welcome back, man. Let's dive into this one. Let's tell people why the heck they're here.
Chris Picciurro, CPA:Well, first of all, thank you for letting for calling me the voice of tax planning. However, we are building and we have built something very special, which is the teaching tax flow community. Teaching tax flow is the voice of tax planning. Teaching tax flow is our community that if you are watching this or or listening to this, you are part of. We want you to be more part of.
Chris Picciurro, CPA:The tax planning community includes tax professionals. It includes taxpayers. It includes implementation partners. Meaning, you're gonna hear today, ideas are cheap, implementation is valuable. So it's important to have the people in this community help taxpayers implement.
Chris Picciurro, CPA:So what is our mission? Legally and ethically reduce the tax you pay in your lifetime. Is that gonna happen by accident? No. It's gonna happen by action.
Chris Picciurro, CPA:And that's what we focus on with tax planning and strategy. Before we dive into what it is and, you know, we have to understand that tax planning and strategy does not replace tax preparation. It's also not the same as tax preparation. It complements it. It complements it.
Chris Picciurro, CPA:That's very, very important to to understand because too many taxpayers have a unreasonable expectation. I know we might get some nasty comments in YouTube on this one, but they have an unreasonable expectation that tax professionals either have the have the capacity and knowledge to help them with planning when they're focused on tax compliance. And that's that's that's their that's their job. So that's why tax planning strategy is so important. Taxes are, in general, your largest expense in your lifetime.
Chris Picciurro, CPA:So we we go through painstaking efforts to reduce the cost of our gas. Why? Maybe we have a reward system if through a grocery store that we're putting numbers in. We go through a lot of trying to find coupons on either on your phone or you, you know, you have through a through a membership club or something like that. But we don't put any effort, we, in general, taxpayers in general, on actually reducing your taxes legal and And one of the things, John, that you obviously wrote the forward on and were integral in writing that defeating taxes book, we are extremely passionate about helping lower to moderate income families reduce their tax because a $100, $200 extra in their pocket per month could be a significant portion of their disposable income.
Chris Picciurro, CPA:So that's the why. You know, the the very wealthy, and very high income households are gonna find a way to tax plan. And, yes, we have, you know, I know, per private CPA practice, have we saved millions and millions of dollars every year? Absolutely. But we believe in this community, we believe that we should be helping helping everyone out.
Chris Picciurro, CPA:So let's talk about what the heck tax planning is. Right?
John Tripolsky:And I'll and, Chris, before you do that, I I would almost say so two things. Right? Tax planning, and I know you said this at some point, we actually put in that book in many places, right? It's more of a mindset, really, than anything, right? Because I think if anything, right, we see more, and when I say we, you know, any of the communities in all this chat we have, a lot of taxpayers, I think, are frankly in their own way.
John Tripolsky:They can't get out of their own way. They're like, oh, I can't do anything with it, so I'm not gonna pay any attention to it. You know, again, word planning is in it, and I think we all know what the word planning is, but how do you actually execute on that is where I think they need to lean on somebody. So I I I say that mindset now. I'll ask that question.
John Tripolsky:You don't have to answer it now. Just somewhere in this discussion here, I'm sure it's gonna come out is, I definitely wanna talk about some of the players, aka the people that are really part of that. So I know we'll get into it at some sort.
Chris Picciurro, CPA:And, yeah, and then what can happen is someone who trying to dip their toes in tax planning might try to do something on their own without the support of a community that includes tax professionals, that includes implementation partners, and it could backfire. Real quick example, very, very quick. And this is an episode a few episodes ago. Backdoor Roth IRA contributions. Those are meant for people in a higher income situation that cannot make Roth IRA contributions because their income is too high.
Chris Picciurro, CPA:So what do they do? They go on TikTok. They go on Instagram. Again, we have Instagram and TikToks like TikTok. Aren't we're teaching tax fill that likes to live because they're but we have a presence.
Chris Picciurro, CPA:And they say, oh, I'm gonna put money into my traditional IRA, non deductible, and then I'm gonna convert it over to a Roth. However, they forget to read the red read the the the print that says, you have to do this properly, and you have to have no money in traditional IRAs. And here's what happens. You take someone that's trying to contribute to a Roth IRA and and because they do it the wrong way, they actually trigger a taxable event because they have a bunch of pretax money in their traditional IRA. Again, not to get in the weeds too much, but misapplying, it's it's it's equivalent.
Chris Picciurro, CPA:We're gonna we're gonna use a because John, I know you're a gearhead. Right? You like those rumor has it that you just let one of your babies go recently. Your your big
John Tripolsky:I did.
Chris Picciurro, CPA:Big gas diesel hog of a truck that I so loved. Actually, actually, the the the the financial guy in me didn't like it, but I know I know it was when
John Tripolsky:he The the the efficient person to me loved it because I can drive from Ann Arbor, Michigan all the way to Nashville and back in one tank of fuel, but, you know, it's all good.
Chris Picciurro, CPA:That's all But it would cost you about the same as the an whole airplane.
John Tripolsky:That is true.
Chris Picciurro, CPA:What but, you know, that alright. But so so it's equivalent of, great. I know how to drive a car, but I'm going the wrong way on a one way street. So you could actually be doing more damage than good. You'd better off never driving at all.
Chris Picciurro, CPA:So let's stick with the the analogy on tax planning and strategy. What is it? It's very defined in my opinion. Tax compliance, which is tax preparation, is everything looking backwards. Right?
Chris Picciurro, CPA:We're looking back at transactions. We're reporting them on a tax form, but there's very little we can change about what has already happened. We have not invented a time machine yet. Tax planning and strategy is everything looking forward. Okay?
Chris Picciurro, CPA:So there's a lot more we can change. So in the analogy of a vehicle, when you're driving, Johnny, even now you downsize your car, I think. What's bigger? Your dashboard or your rear view window or your rear view mirror. Your windshield.
John Tripolsky:To your your windshield by a long shot.
Chris Picciurro, CPA:Sure.
John Tripolsky:For a number reasons.
Chris Picciurro, CPA:Yeah. Your win your dash your your so you're looking out the front of your car. It's a lot bigger than that rearview mirror that's super small. But guess what we do? I'm not saying we.
Chris Picciurro, CPA:Most taxpayers are so focused on their rear view mirror which is tax compliance. They can't see in front of them. And they're going to run into something that they that they shouldn't. If you focus forward, you're focusing on tax planning and strategy. And that's what is very important.
Chris Picciurro, CPA:Now there are a few little things you can do and count them back for last year, but ultimately, that's in the back. Learn from that, but go forward. Move forward. So you might not like a result. Like, even in our private CPA practice, we just had a client, that owed significant amount significant amount of money.
Chris Picciurro, CPA:We engaged in tax planning and strategy. They decide it got to they they basically dragged their feet too long, got through the holidays, and didn't do anything. And they we're talking o six figures, and they're upset. Now they're not upset at us. They're upset at the situation.
Chris Picciurro, CPA:I can't fix that. We're already engaging in a tax plan for this current year for them, and we're gonna now know where we're at.
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John Tripolsky:And with this too, Chris, it's funny. I feel like I've I've given up on the bad dad jokes about 20 episodes ago, and now I've switched to more analogies. Right? But thinking about the car. Right?
John Tripolsky:Because I think everybody can you know, if you have to close your eyes and pause this and stare out the, you know, window in a minute, but everybody can relate to that. Right? Because we've been a vehicle where we drive one. So you you can literally visualize this. Review mirror, windshield, one's bigger.
John Tripolsky:I almost think about it too, right? Like those are two constants. You can always look forward, you can always look back a little bit, you can't change where you just went, you can completely control where you're going, but then you bring in tools, right? Like you have Waze and Map, all this stuff now, so by using those tools, it helps you even forecast further, AKA tax planning as a whole, right? Like it's not you, the taxpayer, has to do this, you're using the resources, the tools at your disposal to even see further than just what you taxpayer might see as next month.
John Tripolsky:The tax pro might say, hey, in five years, something you do today impacts it, right?
Chris Picciurro, CPA:Exactly. That's the second part of it. So now once you change that mentality that you're actually looking correctly, right, forward, understand what was behind you, but now you could see the potholes. Now you could see the turns. Now you know where you need to go.
Chris Picciurro, CPA:How do you get there? You get there so if you get there by just driving straight and never turning, or, you know, I kinda joke around and tease myself about my age back in my day. You know? A snot nosed little kid would go with his mom and they'd go to triple a and get a triptych and they'd they'd write all over it. Now we have Waze.
Chris Picciurro, CPA:Now we have map, you know, Google Maps and and Apple, maps. But the point is, if I wanna go from one place where I'm at to where I wanna go. So remember, you gotta know where you're at, number one. So if you don't know where you're at financially, what your income is gonna be approximately, then it's hard to go anywhere. But you once you know where you're at and you wanna get to a certain place, you plug it in your GPS.
Chris Picciurro, CPA:Right? And who's that voice in your GPS? That's going to be your tax planner, your tax professional, your implementation partners. That's the team of people that are going to guide you. To where you need to be.
Chris Picciurro, CPA:So you've got to that's that's the whole mentality part of it. Your tax return, one of our three laws of teaching tax law, your tax return is a verb and not a noun. It's something that's happening every year. June 10 is just as important as December 10 when it comes to planning a strategy. So we've really gotta think about that process.
Chris Picciurro, CPA:Now it doesn't mean you've gotta check every balance and call everyone every day, but it's just about creating a plan and making sure, you know, now things could change. Right? I let's say I'm driving here from gorgeous Franklin, Tennessee to Orlando. I know I'm gonna shake my head when I go through Atlanta, Chattanooga, Chattanooga, Atlanta, Ocala, you know, all where I but there might be a big accident, and you might say, you know what? You wanna get off the interstate and just go around.
Chris Picciurro, CPA:It's gonna, you know, yeah, ten minutes is added to your trip, but if you stay on this path, an hour is gonna get added to your trip. So I wanna go around. So what do why am I bringing that up? You might think, you know what? I think I'm gonna have this amount income.
Chris Picciurro, CPA:Oh my gosh. I'm getting a big bonus. Okay. Or all this rental property became vacant. We found out it's in a bad area.
Chris Picciurro, CPA:We're gonna sell it. So let's adjust the plan to the situation. We don't want the we don't want the tax tail to wag the dog, meaning look look at my GPS example. You don't just you don't just stay on the path and say, I'm just gonna drive around as long as I'm in no traffic without a destination. You get to the you figure out that destination, meaning legally not to be reducing the tax you pay in your lifetime, and your facts and circumstances could change.
Chris Picciurro, CPA:So you sometimes have to veer off your route, but you get back on it. And and you just have that mentality that it it's you know? And, you know, then it comes down to this basically tax planning implementations, but start by changing your behaviors. Your behaviors will help you with figuring out, you know, what what to do and and where to allocate your income and just understanding that once you start diving into this, like, not all income is taxed the same, just like people that wanna get in shape. They don't go to the gym.
Chris Picciurro, CPA:Some people do, I guess. And just go, you know what? I'm gonna do biceps, like, three times a week. No. They they wrote they do some cardio.
Chris Picciurro, CPA:They do some weights. They rotate around what what body parts they're exercising, and that's kind of the the you know, that's that's how you have to treat your tax return, understanding that the different incomes tax differently. That's a team effort. And then it comes down, and you might be watching this or listening to this and saying, this is great. I feel alone.
Chris Picciurro, CPA:I don't know where to start. I feel overwhelmed. Seriously, just jump in in this we do not make any revenue from our private Facebook group. It's actually, know, a liability when it comes to we're we put a lot of time into it. Jump into our defeating taxes private Facebook group.
Chris Picciurro, CPA:You can post anonymously. We're as you know, John, we are very us and the other people in that group are very responsive to questions and and help guiding people in the right direction.
John Tripolsky:And I'd love to know just how many people were aware of tax planning. Not assumed or like, oh, I know what this is, but maybe how many people have taken advantage of it, haven't for whatever reason because they didn't know or anything else or or plan to, I think, would be very interesting. So maybe, like, a thumbs up, thumbs down. We'll put something here actually in the
Chris Picciurro, CPA:Yeah.
John Tripolsky:In that in that group specifically asking this because that'd be curious. Right? We're not asking for your social number, obviously. We didn't want your contact information. It's more of like a group survey.
John Tripolsky:And then, Chris, you're walking through this. I think about it when I asked a question earlier, right? Like, hey, are the players in this game? It's very similar to like a nutritionist, right? Yeah.
John Tripolsky:They can they're gonna ask you questions. You know, hey, what foods do you like? You know, what's your goals? What's your days look? All these questions leading up to them helping you develop a plan, right?
John Tripolsky:They're gonna give you the plan. They're not gonna be, you know, shoving protein bars down your throat and telling you to put the ice cream down. They're gonna tell you what it is, it's up to the taxpayer to do it, but then taking that relationship even further, and we don't need to go into detail, but if if something changes, we're like, you know, I, for you, and I I hate this the other day, then you shift, you adapt to it, but the goal stays the same, right? Or maybe it shifts. But it's all about that connection, leaning on somebody else, because you yourself is very hard for anybody to hold themselves accountable for every single aspect in their life.
John Tripolsky:It's good to have those people, and that's really what the community is for.
Chris Picciurro, CPA:And now it's getting dangerous too because now there's a lot of people like to say bad information out there. You know, there's a lot of I mean, there's been actually, the IRS has has gone after a lot of, quote, unquote, bad influencers giving bad tax information out. I don't really see too much as much bad information. I see misapplied information. Like, just pay your kids whatever the standard deduction is.
Chris Picciurro, CPA:That's no. No. I mean, we pay our children. They do work you know, as we're recording this quite frankly, one of our my my teen kids is doing some work for us. Right?
Chris Picciurro, CPA:But it has to make sense. So it's not the so now we're in this era that you can go online and find a bunch of stuff that's that's information, but if it's misapplied, it's bad information. Just like unless you're a real freak, you're probably not gonna put mustard and ketchup on your pizza. You put pepperoni.
John Tripolsky:Try.
Chris Picciurro, CPA:Doesn't mean mustard and ketchup is bad. It just means it's probably not gonna be a very popular topping. So
John Tripolsky:Right. And and, Chris, on that, I'm gonna I'm gonna wrap on this, but I do wanna say this because, again, me, I feel like more I'm more relating to I'm more the audience than I am the educator. Obviously, you're bringing the brains. I'm bringing who knows what. But thinking about this, right, is some people might ask us, why do you do twenty minute conversations, and something as simple as it could take two minutes to describe what tax planning is, and all this stuff, right?
John Tripolsky:Because what you said, right, sometimes, like I said, misapplied, and not misinformation, but there is a million topics that cannot be said in a thirty second social media reel, and if somebody takes it out of context, it could destroy them. It could literally implode their entire tax plan. We don't have to give any examples of, you know, who it is, but we as humans on social in general have a very short attention span, and it gets shorter and shorter and shorter, where, you know, everything's it's a lot more DIY self education, but the thing is is knowing the whole story. Or like you said, you're going the one direction, which is okay, but you're going down the wrong path, and you can't just pull a UE and go back. Right?
John Tripolsky:You don't know until you smash into somebody. So I'll wrap on that. This might be the most analogies we've ever thrown out in episode. I think they all make sense. So hopefully hopefully they do for everybody else.
John Tripolsky:Again, check out that Defeating Taxes group. We'll put that in there. We'll put it out. Just very curious on people's take on tax planning. Even if you're like, you know what?
John Tripolsky:You guys still don't make any darn sense here. Let us know. We're doing this for you. I mean, and Chris are gonna hang out regardless whether we record this or not, probably the same conversation. So we're doing it for you guys.
John Tripolsky:Let us know what you wanna hear. Let us know how this one went. And we'll see you again next week, obviously. Absolutely.
Chris Picciurro, CPA:Put some topic ideas in and we'll Keep them coming. Correct them out. Yes.
John Tripolsky:And if you don't give us any topic ideas, then we're relying on Chris to come up with them and we're gonna get real nerdy. So we don't want all joking aside. But we will see you next week back here in the show. Have a fantastic week. And think about that.
John Tripolsky:How much have you taken advantage of tax planning? Let us know.
Disclosure:The information in this podcast is educational and general in nature. It reflects the opinions of teaching tax flow and does not take into consideration the viewer's personal circumstances. It is not intended to be a substitute for individualized financial, legal, or tax advice. Consult the appropriate qualified professional prior to making any decisions. Securities are offered and supervised through Cabin Securities Inc member, FINRA SIPC.
Disclosure:Investment advisory services are offered and supervised through Cabin Advisors LLC, an SEC registered investment adviser. Chris Picciurro is a registered representative of Cabin Securities and an investment adviser representative with Cabin Advisors LLC. Teaching Tax Flow is an independent entity and is not affiliated with Cabin Securities or Cabin Advisors.