Opening:

Congress just gave the IRS 80 Billion dollars. I’ve got CPA Matt Lents on the line and we are going to talk about the implications. It’s so important we are doing this NOW. 

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Quote of the Day

Humans possess the unique ability to attach meaning to the events of their lives. This is both powerful and dangerous.

Expected Air Date: Wednesday 9/20/2022

Guest: Matt Lents

Transcript

[0:00] Music.

[0:15] Show that teaches you how to make money in real estate wherever you are whatever your situation there is an opportunity for you,

And now here’s that flipping America guy Roger Blankenship thank you Kathy Curtis the IRS just received 80 1 billion dollars from congress.

I’ve got Matt Lence to teat up on the line and we’re gonna talk about the implications it’s so important we’re gonna do it right now Matt Lance welcome back to the show.

[0:42] Glad to be here. Thanks for having me. Good to see you, Roger. Man, thanks for taking your time to join us today. Did you just get through with big tax deadline.

Yeah yeah most people don’t know that but yeah there’s actually two taxis so we just got done with the extended corporate.

Yeah yeah so you got time to do things like radio interviews get any surfing in.

Of course yeah I mean the waves were great in Florida last week they’re gonna be great later this week too so a priorities right balance and life.

[1:11] Alright. Well, that’s good. I’m happy for you. I don’t understand surfing. But.

I do understand what is like to have you know things rushing by you pretty fast and close.

Distance because I I am an avid motorcyclist. So. Yeah. I remember that. Yeah. Alright. So, let’s get right to it, man. We gotta talk about something.

Is it 80 1 billion or 80 1 million dollars the IRS is getting.

It’s a bee,

And so they’re they’re going to higher 87 1000. Well, the administration says it. But,

I did a little digging and the Iris is not actually said they’re gonna hire 87 1000 agents. But whatever.

You know they’re gonna hire 87 1000 agents to go after the wealthiest people for enhancing forcement alright so who are the wealthiest people.

[2:15] Yeah.

[2:17] I can unpack this entire scenario for you or we could just answer the question of what these people are. Well, I know that the the guideline is people that make over households were over 400 1000 income but alright, really.

How you gonna know that before you do the audit.

Hey Facebook,

Discuss what’s being talked about here which is the inflation reduction act and one of the components the inflation reduction act was.

Funds being allocated to the IRS okay,

If you were to listen to.

[3:15] To help ease the minds of society at tend to try to fact check things and share real information,

The IRS in general,

Well COVID hit and because of the fact that the annual budget that goes IRS can’t seem to stay away from the politician’s greedy hands,

The stuff that’s allocated to them gets siphoned into the politicians pockets before it actually makes an IRS so they haven’t had system upgrades hiring,

Any breaking mortar, any upgrades dire arrest for 10 years, right?

[4:04] The system just about imploded. It’s all over the news. They got busted destroying 31 1 million tax returns. People aren’t answering the phones. I haven’t had them answered the individual tax line in 4 months.

Hey Facebook,

Hey Facebook,

Well, would a lot of people don’t know is out of those 78 1000 people 50% of them are 5 years or less out from retirement and so they’re probably just like, well, I’m not gonna lose my retirement. I’m not gonna lose my benefits. I’m not gonna lose my pension. So, let’s just ride this out.

[4:45] So if within the next 5 years.

So, the reality is is that this 80 1 billion dollars first off, it’s not in one wop, it’s allocated over a 10 year period.

You figure 63 of them are already spoken for that are just people that need to answer the phones process the tax returns the IT people people that are gonna go buy new buildings,

They’re currently 24 1 million tax returns behind,

They’re taking payments now from people without processing attacks returns so then they’ll take the payment and the computer will send a notice to the taxpayer,

So I’m not saying it’s a great thing,

Quiet is paramount of an impact as 87 1000 armed Iris agent storm in the the beaches right there alright so,

Is the minds of something. Yeah, I don’t remember which politician it was but somebody said this gives it all these agents. You’re gonna show up at your door with an AR 15 and,

Yeah.

[6:06] Okay.

Are likelihood of being audited if we make more than 400 1000 a year is is going up.

[6:17] So, there’s a couple of things to think about, right?

To build an organization. It’s gonna take you a while. You gotta go find people. You gotta train them. You gotta put processes in place, right? So, yeah, but I know the government can blow money a lot faster than i can.

It probably less efficiently.

And that will take time and then B like,

What my concern is and this is on a little bit of a less good news side of things I think they mean what they say when they’re saying hey we’re gonna throw people at 400 1000 or more to be audited right well.

Who are they gonna hire to train people that have that complicated of a tax return? You know, they’re gonna real estate businesses and all stuff. You can’t get an entry-low person to go look at that

And this is nothing that I’ve researched. It’s just my intuition.

They’re still gonna keep their job costs low cuz the government doesn’t wanna pay people for their work.

If they went to go get a CPA that has the experience to know what they’re looking at in these complex tax returns it’s gonna cost them a lot of money cuz CPAs aren’t cheap at that level.

So like they’re gonna hire cheap throw them at the little guys.

[7:46] Okay.

Alright. So, what you’re really saying,

I definitely think that it’s very proactive to start being super worried about.

That particular inflation reduction act component in the near term,

Worried about what? Say that again,

I was gonna talk about for you some of the new real estate tax laws. It had a portion of the budget going to the IRS, portion of the budget, going to build not green energy, medicine savings, all these different things. Also, the economy.

Which coincidentally was also.

[8:33] So the real estate stuff that actually has some cool stuff in it not sure if you’re familiar with 179 Capital D,

But it’s basically like if you do energy and fish and improvements to a building or you build an energy efficient building,

They actually

And then also lower the threshold for qualifications for it. So definitely.

Okay, go ahead. Yeah, it definitely was that was a good one. That that one came in really good.

Alright. So, if I’m remodeling a home and I make an energy efficient.

Yeah, it’s not as favorable. There’s still some tax credits but the 179 D stuff is more towards like the commercial buildings.

[9:34] Alright so we’ll keep that in mind what else.

Electronic vehicles. They’ve extended a ton of credits for that. Bigger credits and made those easier to obtain as well.

Other tax is it the greatest they’re putting you know percentages of tax on stock buybacks they’re gonna try to institute them,

Yeah. But tomorrow is the little guy if you will were not.

Here’s the 100 1 billion dollars question from this bill.

[10:19] Absolutely not. If anything, in this.

But if you look at.

Let’s just take electric vehicles for example,

Offer a government subsidy on an electric vehicle you’re really providing no incentive to the electric vehicle manufacturer to reduce their prices or control their costs.

[10:55] So you’re not you’re not encouraging them to drop the prices so that has no effect on inflation.

[11:04] Yeah and I mean.

[11:19] When the students can borrow all the money they need for college and major in anything they want to the colleges can raise their prices with impunity.

And that’s exactly what’s happened the cost of higher education has gone through the roof over the last 20 years that federal government has been involved in student loan business,

And students in now can.

[11:46] Repaid pay this ridiculous amount for a degree in.

[11:57] So what is the.

Yeah. Yeah. Stuff like that. How can they ever hope to pay back this so the federal government is involved in what they’re actually doing is driving,

Prices.

A bit unfortunate because it’s not the students fault but they’re the ones that are gonna bear the that we’ve taken you know one of the key elements of.

A beautiful system that was created for a view of a reason and a beautiful country and that’s if that other people lives through education and,

We’ve we’ve systemized it to a point where it’s more of a business decision than it is somebody in your passion,

Well I stop sure to say it’s not students fault because no one put a gun to their head and made them do it and no one made them pick the useless majors that they’re majoring in,

Yeah.

Innocent but I agree with you they’re not completely to blame because they are young they’re an experience,

I don’t no one that knows me thinks I’m coldhearted but I am a Las A Fair capitalist I believe.

[13:19] Leave the people alone let the chips fall where they may,

Being an adult is tough,

How can it possibly be a good decision to major in something like underwater basket weaving I’m just trying to pick something that’s maybe a little less politically charged major in something for which there is no job market there is no future.

You should know better but if you’ve only ever been indoctrinated in this silliness that goes along with all this kinds of thinking then maybe you don’t know better.

[14:02] Well yeah.

I think my response to that is that you know I agree to the extent that you are saying you know some of the major selections are you know independent thought of what we would call the consumer and that transaction

But even those that choose the degrees that are gonna be a little bit more useful or effective are now,

In a circumstantial situation where,

And that’s what I’m getting at is that it doesn’t matter if you go underwater basket weaving or if you go medical degree or you go,

Has become.

[14:51] The decision making of the student it’s the fact that no matter what path they decide to shoot.

And a less successful situation than they’ve ever been before and it’s almost being up united outcome for something that they chose to try to do to better their lives,

Alright. So, let’s let’s jump off this for just a minute and and focus a little bit on what you actually do. There may be some people.

[15:17] Let miss the last time you’re on the show. So, give us a quick overview. Give us a elevator pitch of Matt Lance CPA.

Absolutely I mean entrepreneurial CVA at heart die hard entrepreneur not the new modern sexy slang of it but I involved in a lot of things the,

Bread and butter business is tax advantage which is accounting CPA tax services across the board bookkeeping sales tax payroll you know

Tax returns consulting the whole gamut CFO services,

I’ve got an adventure out there I’ve also got a course that helps specifically Ecom retailers,

And then also owner and three other businesses more possibly than the tax advantage. Give us the URL for that course.

Sure, I mean, if you go to my linktree which is on my Instagram, you can instantly access it there, and it’s at Matland CPA. And then I’ll take you right into the actual course to take a preview and check out the VSL,

Okay. Where can I become business?

[16:33] You know, it’s it’s geared because what’s happening a lot is these people are getting started with them and then they show up with like binders full of state notices because they didn’t get set up for success in the front end and if they wanted to pay somebody to do it, it’s

Insanely expensive and it’s really not that difficult to do. So, why not just help them by teaching them for a very low cost and then also,

It comes with 10 calls with me if you need to talk about that or anything else financial or tax related. So, it’s common no brainer.

Yeah you I kinda jump back in here when you mentioned CFO you know my CPA here in Atlanta and I’m all set and have been for years but if you’re not all set you guys need to give Matt reach out to him on social media at Matt Lens on Instagram,

And.

[17:23] Oh add Matt Lindsay PA thank you yeah sorry about that.

Content business page that you can get free content for tax finance you know personal finance credit real estate all that stuff is at CPA

Well a one of our really,

Based on her confidence in you I give you my vote of confidence as well and recommend thereby check you out.

Alright,

So

I don’t know if we should call the round table. The gauntlet of random questions. Okay, number one, how does the economy in general affect your business?

[18:33] So, whether the numbers are good or bad, they need to be counted and tax returns need to be filed. So,

It’s not an inconsequential thing but it is something that is pretty stable,

PPP ideal.

[19:02] Yeah. So political turnover is.

[19:08] You know, it’s funny, Rod, you’re because since 1986, there was no major reform. I mean, there’s a little stuff that the people would sprinkle and they would take office and just to kinda stimulate the voters but,

19 no 2017 the 45th president of the United States did the first major overall since 1986,

And then the recent president was talking about doing an overhaul and then munch and shot that down.

It’s getting so polarized and and and Capitol Hill that there’s harming that they’re gonna start doing overhauls every time a red or a blue takes place just to

I’ll do the other one. So, it’s gonna be an interesting next 20 years. I didn’t give you any fair warning. So, maybe,

Yes. We can talk about that. I mean, I I like the concert. It doesn’t necessarily have to have any political undertone, you know,

Hey listen,

Honestly this is where the the random list of questions came from because everybody likes the little human interest park,

But in case people didn’t hear last time when you were a little kid what did you wanna be when you grew up.

I wanted to work at mcdonalds and ironically my first job was McDonald’s.

[20:38] So your life dreams came true.

Basically, it was like we were in drafty 1 day and I wanted some chicken nuggets or something like they were so good. I was like, I love this half to work there 1 day and then Lola bowled my first job when I was in high school. It’s freaking,

Adam McDonald’s.

With minors in speech and music and in the spring of my senior year.

Two offers at this job fair.

Okay which one’s you go with?

Interesting point. Yeah. Yeah, that was a learning moment for me but I didn’t take any one of those jobs. Alright.

Someday, sometimes I look back and think what if, what if I ran 20 McDonald’s right now or something like that? Okay, never, number three, if you could have dinner with any person from history, who would it be,

Cool.

[22:01] Man.

[22:07] Katie Roosevelt,

Alright.

Play i guess it’s whatever temperature you’re gonna set when you’re baking the books.

Social skills a lot of times so it’s not

To be expected that they have a lot of the creative energy. I

And so I think creativity is absolutely critical to me. I mean it’s way we optimize efficiency. It’s the way we forgot new ways to help people. It’s how we inspire other people that are working with us and

To work together to meet our common goals and service our clients. I mean, I don’t think. Alright. You could do such adequately without creativity,

Alright. We gotta move along a little faster here. Number five, what are the business or economic trends you watch most closely?

Awesome. I don’t know how else to say it. I mean the stock market’s important. Presidency is important. Economies important. Tax bills are important. Cryptocurrency is important. Housing markets important. All of it.

[23:31] I would like to remain that unanswered please. Okay. No worries.

I don’t I don’t have any comments about telling people that I read to Wall St Journal cover to cover every day.

[23:45] Well I don’t I don’t I skim some of the articles this this okay but I hit every headline,

Okay cool,

My favorite and I do read just about every word of the editorials every day.

Next there’s a lot of talk about pursuing your passion in our circles talk about the impact personal passion has on your life and business,

Sure freedom is my passion in every area of my life and,

Money is a huge stepping stone to obtaining that freedom and so I think they go hand in hand,

Do the things that I do with the next light hand.

[24:36] Okay.

[24:45] It depends on what their goal is. I am a big believer in Malcolm Gladwell’s blink theory where most of my decisions are made pretty intuitively pretty quickly. However,

I do have one three in 5 year goals ultimately that I do try to work for and so,

I break the smart the big goals down to the smaller pieces that are accomplishable. Yeah.

Absolutely it’s conscious programming thing like you set your vision at a certain destination and then your body just kinda like follow suit.

Alright, I wanna modify this question a little bit. A wave from real estate specific. If someone walked into your office and said, I want to learn how to buy businesses.

Like.

Depending on what type of business they’re buying and what their experience level is because Boz those are both critical.

[25:57] Definitely obtain.

The history, the business, ownership structure, etcetera, and then all of their financial statements that come along with that and then, if you don’t have experience, get with somebody that does have experience in the emanate space to talk you through the story that those numbers are telling you.

Second would be to draft to do diligence requests to support all the data that’s in the sellers report and in the third get a good lawyer

See you know that instrument makes you look really smart Matt. Way to go man.

Ah

[26:48] Hey Facebook.

[27:03] Take what your annual salary or your annual expenses are gonna be and multiply it by 25.

[27:12] Yeah.

Theoretically.

Buy mathematics.

[27:36] Yeah and as if you’re in something like T bills.

This is not financial advice.

Yeah.

God you got some heavy ones.

[28:04] The go to’s always you know basils, mosque.

[28:18] That’s tough, man.

[28:22] I just feel like Jeff Base is his kind of layup slam dunk but it doesn’t mean that that’s really where my passion is cuz I haven’t actually thought about it. Yeah. Well, I I I didn’t give you an advanced warning on it.

That’s my answer to it but yeah.

[28:42] Yeah.

[28:52] Not what you would expect.

[28:56] Alright. Alright, that’s the gauntlet and that’s,

Follow Matt find him on social media at Matlyn CPA

Instagram and TikTok invite them on Facebook too just with his name,

And here’s your quote of the day. Humans possess the unique ability to attach meaning to the events of their lives. This is both powerful.

Keep your eyes open my friends,

You’ve been listening to flipping America real estate investing for everyone. Listen three times a week on stations across the country or on the flipping America app

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[29:53] Music.