WEBVTT 00:00:06.189 --> 00:00:09.449 Hi, everyone. This is the How to Lower Your Tax 00:00:09.449 --> 00:00:12.650 Bill podcast. I'm your host, Terrence Hutchins. 00:00:13.169 --> 00:00:15.609 I'm a financial and tax advisor in the Dallas 00:00:15.609 --> 00:00:18.429 Fort Worth area. And the goal of this podcast 00:00:18.429 --> 00:00:21.010 is to help you listeners get educated on different 00:00:21.010 --> 00:00:23.789 tax strategies that you can implement to improve 00:00:23.789 --> 00:00:26.969 your tax situation immediately. Each episode, 00:00:27.070 --> 00:00:29.730 we'll break down useful tax tips you can use 00:00:29.730 --> 00:00:32.270 to save money, no matter what your personal or 00:00:32.270 --> 00:00:34.729 business income situation. Because our motto 00:00:34.729 --> 00:00:37.909 is, keep more of what you earn. So let's get 00:00:37.909 --> 00:00:46.549 into today's episode. All right, welcome back 00:00:46.549 --> 00:00:48.609 to another episode of how to lower your tax bill. 00:00:49.009 --> 00:00:51.729 We have been going through a series talking about 00:00:51.729 --> 00:00:54.130 real estate and some different strategies you 00:00:54.130 --> 00:00:57.140 have. even as a W -12 employee to enhance your 00:00:57.140 --> 00:00:59.359 current tax situation. So today we're going to 00:00:59.359 --> 00:01:02.219 talk about getting suspended. Now that might 00:01:02.219 --> 00:01:04.379 bring back some not so fond memories for some 00:01:04.379 --> 00:01:06.680 of you, but we're not looking at this from the 00:01:06.680 --> 00:01:09.019 angle of being in school. We are looking at it 00:01:09.019 --> 00:01:12.060 as it relates to your real estate. So when it 00:01:12.060 --> 00:01:14.439 comes to being suspended in real estate, we'll 00:01:14.439 --> 00:01:16.599 kind of define what that means. We'll talk about 00:01:16.599 --> 00:01:20.099 how do you overcome having your losses suspended 00:01:20.099 --> 00:01:22.219 in this case? And what are some strategies you 00:01:22.219 --> 00:01:24.680 could employ if you have suspended losses? and 00:01:24.680 --> 00:01:26.760 how you might be able to better utilize them 00:01:26.760 --> 00:01:29.200 to just overall enhance your financial situation. 00:01:29.400 --> 00:01:30.900 So just to give you a little bit of background, 00:01:31.359 --> 00:01:34.260 back in 1986, that's when the tax code introduced 00:01:34.260 --> 00:01:37.219 these passive activities loss rules, and they 00:01:37.219 --> 00:01:39.739 introduced the dynamic of having three different 00:01:39.739 --> 00:01:42.099 buckets of your money. So we talked in previous 00:01:42.099 --> 00:01:45.379 episodes about portfolio income, that's income 00:01:45.379 --> 00:01:48.310 from stocks, bonds, dividends, interest. Then 00:01:48.310 --> 00:01:51.069 you have active income, which is generally from 00:01:51.069 --> 00:01:53.810 your W -2 jobs, your businesses that you're actively 00:01:53.810 --> 00:01:56.170 involved in. And then you have your passive bucket. 00:01:56.989 --> 00:02:00.909 So passive income is real estate defined by a 00:02:00.909 --> 00:02:03.390 default with a few exceptions, and also things 00:02:03.390 --> 00:02:05.849 that you don't materially participate in. Those 00:02:05.849 --> 00:02:08.849 are considered passive activities. So if you 00:02:08.849 --> 00:02:11.069 have a passive activity like real estate, the 00:02:11.069 --> 00:02:14.229 IRS limits you on how you can treat the losses 00:02:14.229 --> 00:02:17.169 you receive from your rental properties. So especially 00:02:17.169 --> 00:02:19.229 in today's environment with, you know, I'm in 00:02:19.229 --> 00:02:21.189 Texas, so we have a lot, we have high property 00:02:21.189 --> 00:02:24.050 taxes and insurance rates. With those two elements 00:02:24.050 --> 00:02:26.930 plus interest rates, it's hard for properties 00:02:26.930 --> 00:02:29.289 to cashflow when you first buy them. So between 00:02:29.289 --> 00:02:32.389 the depreciation expense and the taxes and interest 00:02:32.389 --> 00:02:35.069 on the front end, you probably are seeing a negative 00:02:35.069 --> 00:02:37.569 on your tax return. Now, if you look and thought, 00:02:37.729 --> 00:02:39.569 hey, I bought this rental, I'm about to clean 00:02:39.569 --> 00:02:42.590 up, but you're a high income earner. then you're 00:02:42.590 --> 00:02:45.909 gonna notice that there's a form 8582 that shows 00:02:45.909 --> 00:02:49.310 that that loss that you incurred is unallowed, 00:02:49.370 --> 00:02:51.710 unless you have a few exceptions. So we've dug 00:02:51.710 --> 00:02:53.590 into this before, but just to give you a recap 00:02:53.590 --> 00:02:56.789 on the suspended loss. So that suspended loss 00:02:56.789 --> 00:02:58.629 is gonna be able to be carried forward to future 00:02:58.629 --> 00:03:01.310 years, and you can only use that loss in a few 00:03:01.310 --> 00:03:04.030 situations. So number one, if your income is 00:03:04.030 --> 00:03:07.449 below $150 ,000, then you can actually use the 00:03:07.449 --> 00:03:10.330 loss and it won't be suspended, or it won't be 00:03:10.330 --> 00:03:12.689 so much suspended. So for example, let's say 00:03:12.689 --> 00:03:15.550 you make $100 ,000 and you have a $20 ,000 tax 00:03:15.550 --> 00:03:18.969 loss. The IRS gives you up to a $25 ,000 that 00:03:18.969 --> 00:03:22.090 you can deduct against your regular income. So 00:03:22.090 --> 00:03:24.009 instead of you paying taxes on $100 ,000, you're 00:03:24.009 --> 00:03:26.710 going to pay tax on $80 ,000 minus your standard 00:03:26.710 --> 00:03:29.590 deduction or itemized deductions. Alternatively, 00:03:29.750 --> 00:03:31.990 let's say your losses were $40 ,000 and you made 00:03:31.990 --> 00:03:34.490 $100 ,000. You could only take the $25 ,000. 00:03:34.550 --> 00:03:37.490 That's your cap. The other $15 ,000, that would 00:03:37.490 --> 00:03:39.960 get carried forward to future years. You could 00:03:39.960 --> 00:03:43.719 also use that suspended loss if you have positive 00:03:43.719 --> 00:03:46.439 income. Now, before I begin to that, if you're 00:03:46.439 --> 00:03:48.159 thinking about, if you're kind of right there 00:03:48.159 --> 00:03:51.759 on the threshold, let's say you make 152, or 00:03:51.759 --> 00:03:55.360 even if you're at 140 ,000 and you don't do a 00:03:55.360 --> 00:03:57.580 401k account, if you contribute to your 401k, 00:03:57.599 --> 00:04:00.400 you can actually get more of the loss unlocked. 00:04:00.539 --> 00:04:03.120 So it's almost like a double deduction, because 00:04:03.120 --> 00:04:06.180 once your income exceeds 100 ,000, you no longer 00:04:06.180 --> 00:04:09.090 can use the full $25 ,000 deduction. once you 00:04:09.090 --> 00:04:12.250 exceed 150 ,000, you can't use the deduction 00:04:12.250 --> 00:04:15.990 at all. So for example, if you make 125, you 00:04:15.990 --> 00:04:20.189 can use 12 ,500 of the $25 ,000 limit. The other 00:04:20.189 --> 00:04:22.709 12 ,500 would be carried forward to future years. 00:04:23.230 --> 00:04:25.350 So if you're kind of right in between 100 and 00:04:25.350 --> 00:04:29.089 150 ,000, or you're over 150 ,000 just barely, 00:04:29.509 --> 00:04:32.029 you could look at doing a 401k contribution or 00:04:32.029 --> 00:04:34.230 increasing it so that you get below the threshold. 00:04:34.350 --> 00:04:36.290 And that allows you to unlock some of the losses. 00:04:37.120 --> 00:04:38.860 My convention is kind of like a double deduction. 00:04:39.959 --> 00:04:41.720 You could also think about, okay, if I have some 00:04:41.720 --> 00:04:43.720 long -term rentals, maybe I'd get a short -term 00:04:43.720 --> 00:04:45.939 rental in here. I do a cost segregation study. 00:04:46.379 --> 00:04:48.300 I take a big tax loss. That's going to get me 00:04:48.300 --> 00:04:50.160 below the threshold. And so not only do I take 00:04:50.160 --> 00:04:52.800 a loss for my short -term rental, I can take 00:04:52.800 --> 00:04:54.959 the loss from my long -term rentals up to the 00:04:54.959 --> 00:04:58.139 $25 ,000 cap. So that's a way to maybe enhance 00:04:58.139 --> 00:05:00.439 your tax situation. And these are the tragedies 00:05:00.439 --> 00:05:02.199 that you want to just look at on a year -by -year 00:05:02.199 --> 00:05:04.519 basis. That's why it's important tax planning 00:05:04.519 --> 00:05:06.500 doesn't start when you're about to file your 00:05:06.500 --> 00:05:09.750 taxes. Tax planning is a proactive thing that 00:05:09.750 --> 00:05:11.829 you could just look at your situation to assess 00:05:11.829 --> 00:05:14.769 what options are available to you. And then based 00:05:14.769 --> 00:05:17.490 on number one, the investment value of whatever 00:05:17.490 --> 00:05:20.069 you're doing. Then, okay, what's the most optimized 00:05:20.069 --> 00:05:22.389 tax situation you could be in based on the facts 00:05:22.389 --> 00:05:25.290 of your situation. Okay, so we're talking about 00:05:25.290 --> 00:05:27.449 suspended losses. So we talked about, hey, if 00:05:27.449 --> 00:05:30.029 I get below the $150 ,000 threshold, I can take 00:05:30.029 --> 00:05:32.990 up to 25 ,000 of my real estate losses in a given 00:05:32.990 --> 00:05:35.149 year. The rest of those losses would be carried 00:05:35.149 --> 00:05:38.660 forward. You could also either start making passive 00:05:38.660 --> 00:05:41.779 income. So if you have a lot of real estate losses 00:05:41.779 --> 00:05:44.399 and they're accruing every year, you could say, 00:05:44.459 --> 00:05:46.920 hey, how about I try to raise my rents? How about 00:05:46.920 --> 00:05:49.439 I try to make these rentals more cash flow positive? 00:05:50.019 --> 00:05:51.839 How am I getting to midterm rentals? So, you 00:05:51.839 --> 00:05:54.079 know, I'll make a little more cash flow. So I'm 00:05:54.079 --> 00:05:55.899 going to be making more money. But because I 00:05:55.899 --> 00:05:57.660 have these past losses, I'm not going to have 00:05:57.660 --> 00:06:00.000 to pay these taxes on my income gains that I 00:06:00.000 --> 00:06:02.879 get. You could also potentially look at a passive 00:06:02.879 --> 00:06:05.620 activity like a real estate partnership or something 00:06:05.620 --> 00:06:08.660 syndication. Those are things that you could 00:06:08.660 --> 00:06:10.879 try to say, Hey, I have these losses. I could 00:06:10.879 --> 00:06:13.100 offset it from positive passive income. So if 00:06:13.100 --> 00:06:15.759 I invest in something passively and I make $30 00:06:15.759 --> 00:06:18.839 ,000 and I have some suspended losses of, you 00:06:18.839 --> 00:06:21.220 know, $20 ,000, I could use that 20 ,000 offset 00:06:21.220 --> 00:06:24.019 the 30, even if my income is above the threshold. 00:06:24.779 --> 00:06:27.819 So the else you could do is you could basically 00:06:27.819 --> 00:06:29.920 try to become a real estate professional. Now, 00:06:29.920 --> 00:06:32.480 we've talked about that dynamic before, but if 00:06:32.480 --> 00:06:35.019 you or your spouse become a real estate professional, 00:06:35.079 --> 00:06:37.540 meaning it's your full time job, and you work 00:06:37.540 --> 00:06:40.660 at least 750 hours in the activity, and then 00:06:40.660 --> 00:06:43.100 you materially participate in the rentals that 00:06:43.100 --> 00:06:45.040 you have, you can be considered a real estate 00:06:45.040 --> 00:06:47.699 professional. If you become a real estate professional, 00:06:47.759 --> 00:06:50.980 it will not allow you to unlock the previously 00:06:50.980 --> 00:06:54.220 suspended losses, but it will allow you to unlock 00:06:54.220 --> 00:06:56.740 the losses in the current year. So let's just 00:06:56.740 --> 00:06:59.600 say, for example, you have $100 ,000 of losses 00:06:59.600 --> 00:07:02.040 over the years, and all of a sudden, you wanna 00:07:02.040 --> 00:07:04.199 get into real estate full time. And you have 00:07:04.199 --> 00:07:06.300 another $10 ,000 in the current year of losses. 00:07:06.620 --> 00:07:10.519 So now you have a total of $111 ,000. You can't 00:07:10.519 --> 00:07:13.240 take those $100 ,000 from before, but you can 00:07:13.240 --> 00:07:15.939 take the $10 ,000 for the current year. So if 00:07:15.939 --> 00:07:17.480 you become a real estate professional, that will 00:07:17.480 --> 00:07:19.959 allow you to use those losses to reduce your 00:07:19.959 --> 00:07:22.100 overall income, let's say from being a realtor 00:07:22.100 --> 00:07:25.800 or your W -2 income from your spouse. One other 00:07:25.800 --> 00:07:29.420 strategy that could be viable is let's just say, 00:07:29.459 --> 00:07:31.220 for example, you own a commercial building or 00:07:31.220 --> 00:07:33.600 you own a residential building that could make 00:07:33.600 --> 00:07:35.939 sense for you to actually work out of. So not 00:07:35.939 --> 00:07:38.139 your primary house, but you have a separate building 00:07:38.139 --> 00:07:40.439 that you have a business that you can operate 00:07:40.439 --> 00:07:43.980 from. So let's just say you've been renting out 00:07:43.980 --> 00:07:45.699 a commercial building and you have suspended 00:07:45.699 --> 00:07:48.120 losses in that commercial building from years 00:07:48.120 --> 00:07:50.660 before and your income is above the $150 ,000 00:07:50.660 --> 00:07:52.980 threshold. You can say, hey, what if I move my 00:07:52.980 --> 00:07:55.810 office into that building? I pay myself rent, 00:07:55.810 --> 00:07:59.069 you know, at a fair rate, but now I can use those 00:07:59.069 --> 00:08:02.050 prior losses to offset my business income. Okay. 00:08:02.110 --> 00:08:04.389 And then you could even supersize this by doing 00:08:04.389 --> 00:08:07.269 what's called a grouping election, or you would 00:08:07.269 --> 00:08:09.250 group them together, I should say. And then you 00:08:09.250 --> 00:08:11.670 could also supersize it by doing a cost segregation 00:08:11.670 --> 00:08:14.310 on your commercial building to where now you 00:08:14.310 --> 00:08:16.850 could enhance the depreciation, create an even 00:08:16.850 --> 00:08:19.110 bigger loss. And you add that to your prior losses. 00:08:19.410 --> 00:08:22.029 And that will allow you to deduct against your 00:08:22.029 --> 00:08:24.269 business income. So I'm going to get into that 00:08:24.269 --> 00:08:26.730 grouping thing in a future episode just to dive 00:08:26.730 --> 00:08:28.970 into that more in depth. But that is a strategy 00:08:28.970 --> 00:08:31.310 if you have suspended losses that you could use 00:08:31.310 --> 00:08:35.590 to unlock if you operate your business out of 00:08:35.590 --> 00:08:38.830 the building that has the suspended losses. Now, 00:08:38.830 --> 00:08:41.350 probably the biggest opportunity that you have 00:08:41.350 --> 00:08:43.950 is if you just sell the property. So if you have 00:08:43.950 --> 00:08:47.230 a lot of losses tied up in a property, or let's 00:08:47.230 --> 00:08:48.850 just say you have a group of properties that 00:08:48.850 --> 00:08:51.289 aren't grouped together. And to clarify that, 00:08:51.529 --> 00:08:55.370 the IRS... basically allows you to isolate your 00:08:55.370 --> 00:08:57.629 rental properties as an individual activity, 00:08:57.870 --> 00:09:00.049 or they will allow you to group it together as 00:09:00.049 --> 00:09:03.149 if it's one whole activity. So if I own 10 rentals, 00:09:03.409 --> 00:09:06.190 I can basically say, okay, how much time do I 00:09:06.190 --> 00:09:08.809 spend in one of these rentals, and I have to 00:09:08.809 --> 00:09:11.149 spend at least 100 hours generally in each of 00:09:11.149 --> 00:09:13.570 them, or I can group them all together as one 00:09:13.570 --> 00:09:16.509 activity. The benefits of grouping them is it 00:09:16.509 --> 00:09:18.789 allows you to seem as if you materially participate 00:09:18.789 --> 00:09:21.409 in all of them, if you materially participate 00:09:21.409 --> 00:09:24.940 overall. So if you spend at least 500 hours overall 00:09:24.940 --> 00:09:27.360 between you and your spouse, then the IRS will 00:09:27.360 --> 00:09:29.899 think that you materially participate in all 00:09:29.899 --> 00:09:31.799 10 rooms, even if you only spend a few hours 00:09:31.799 --> 00:09:34.299 in one of them. That's the positive. The negative 00:09:34.299 --> 00:09:38.399 is if I do have suspended losses and I group 00:09:38.399 --> 00:09:40.860 my activity as one activity, I basically have 00:09:40.860 --> 00:09:43.679 to sell all 10 of my activities to use a suspended 00:09:43.679 --> 00:09:46.019 loss. So let me give you an example just so I 00:09:46.019 --> 00:09:49.200 can provide more clarity. Let's say you do have 00:09:49.200 --> 00:09:52.299 those 10 rental houses and collectively you have 00:09:52.299 --> 00:09:56.659 100 ,000 of losses in them. One of them has a 00:09:56.659 --> 00:09:59.879 $60 ,000 loss and you say, hey, I'm gonna go 00:09:59.879 --> 00:10:02.039 ahead and sell this property. And so we're gonna 00:10:02.039 --> 00:10:04.600 ignore depreciation for a second, but let's just 00:10:04.600 --> 00:10:07.279 say that you get a $60 ,000 capital gain on that 00:10:07.279 --> 00:10:10.159 property. Well, the $60 ,000 loss that you have 00:10:10.159 --> 00:10:12.620 will completely wipe it out. Alternatively, let's 00:10:12.620 --> 00:10:15.159 just say that you had a $25 ,000 capital gain. 00:10:15.519 --> 00:10:18.059 and you had a $60 ,000 suspended loss carried 00:10:18.059 --> 00:10:20.720 forward on that property. Well, now that $60 00:10:20.720 --> 00:10:23.500 ,000 loss can become completely deductible. So 00:10:23.500 --> 00:10:25.659 not only do you get rid of your $25 ,000 gain, 00:10:26.379 --> 00:10:29.659 you also have a $35 ,000 loss. That loss can 00:10:29.659 --> 00:10:33.220 then unlock to potentially, let's say you, that 00:10:33.220 --> 00:10:36.059 $35 ,000 also got you below $100 ,000 of income 00:10:36.059 --> 00:10:38.940 at the same time. Now you can deduct the other 00:10:38.940 --> 00:10:42.200 $25 ,000 of losses up to the previous limit we 00:10:42.200 --> 00:10:44.860 talked about if your income was $100 ,000 or 00:10:44.860 --> 00:10:47.789 less. and you have suspended losses. So these 00:10:47.789 --> 00:10:50.330 are all things that, one, probably you work with 00:10:50.330 --> 00:10:52.549 a professional just so you can map it out properly. 00:10:52.850 --> 00:10:55.169 But two, it does give you a lot of flexibility 00:10:55.169 --> 00:10:57.169 when you do have these losses on how you decide 00:10:57.169 --> 00:10:59.710 to use them. Whether that's, hey, I can expand 00:10:59.710 --> 00:11:01.789 my portfolio and actually start cash flowing 00:11:01.789 --> 00:11:05.190 more. Now I have some income to offset it. So 00:11:05.190 --> 00:11:07.850 I can make, you know, five, six figures of income 00:11:07.850 --> 00:11:10.250 and potentially offset it with the prior losses 00:11:10.250 --> 00:11:13.210 I have. I could decide to sell one of the properties 00:11:13.210 --> 00:11:15.669 that has the suspended losses. depending on my 00:11:15.669 --> 00:11:18.210 income amount, I might be able to not only deduct 00:11:18.210 --> 00:11:20.309 the losses from that property, but also bring 00:11:20.309 --> 00:11:22.269 into play some of the other losses I have to 00:11:22.269 --> 00:11:24.830 reduce my other income. You can also think about 00:11:24.830 --> 00:11:27.570 if I did get rid of a property and then it had 00:11:27.570 --> 00:11:29.889 a loss and let's say there was a small gain attached 00:11:29.889 --> 00:11:33.970 to it, I can look at that same year to also potentially 00:11:33.970 --> 00:11:36.529 sell some of my stock that I set in gain and 00:11:36.529 --> 00:11:38.470 be able to offset the capital gain on that. I 00:11:38.470 --> 00:11:40.450 could look at maybe doing Roth conversions in 00:11:40.450 --> 00:11:43.960 those years so that if I convert to a Roth, I 00:11:43.960 --> 00:11:47.460 now have tax -free income that's growing. So 00:11:47.460 --> 00:11:49.539 you wanna take advantage of the losses when you 00:11:49.539 --> 00:11:51.600 have them. So you get a low tax year, you wanna 00:11:51.600 --> 00:11:54.159 look at many strategies as possible to make sure 00:11:54.159 --> 00:11:57.539 that you are fully taking advantage of that time 00:11:57.539 --> 00:11:59.500 because it may not come back around in the future. 00:11:59.759 --> 00:12:02.360 So once again, if you have any questions about 00:12:02.360 --> 00:12:05.220 this topic or others, you can email us at questions 00:12:05.220 --> 00:12:10.980 at logosfg .com and we will address your question 00:12:10.980 --> 00:12:14.769 on a future episode. But for this week's court 00:12:14.769 --> 00:12:16.710 case, we're gonna talk about something that happened 00:12:16.710 --> 00:12:20.690 in 2005. This is May versus commissioner. And 00:12:20.690 --> 00:12:23.690 this guy, Richard May, managed multiple rental 00:12:23.690 --> 00:12:26.509 properties. And according to court filings, he 00:12:26.509 --> 00:12:29.090 spent roughly 40 hours a week managing all the 00:12:29.090 --> 00:12:32.250 activities that he had, but he did not make this 00:12:32.250 --> 00:12:34.850 grouping election on his tax return. So I talked 00:12:34.850 --> 00:12:38.230 about before, if you, let's say you only spent 00:12:38.230 --> 00:12:41.110 a few hours on one rental and you have, and you're 00:12:41.110 --> 00:12:42.879 considered a real estate professional. but you 00:12:42.879 --> 00:12:45.179 don't group your rent off together, that rental 00:12:45.179 --> 00:12:47.960 that has losses that you didn't group, you actually 00:12:47.960 --> 00:12:50.620 can't use those losses because you haven't materially 00:12:50.620 --> 00:12:52.879 participated in that property. So if you don't 00:12:52.879 --> 00:12:55.679 spend 100 hours in every property, then the losses 00:12:55.679 --> 00:12:58.000 you have for those properties, you can't use 00:12:58.000 --> 00:13:01.120 unless you make this grouping election as a real 00:13:01.120 --> 00:13:04.460 estate professional. Mr. May did not do this. 00:13:04.519 --> 00:13:07.120 So even though he was a real estate professional, 00:13:07.480 --> 00:13:10.379 he had real estate losses. The IRS still said 00:13:10.379 --> 00:13:12.919 that he was subject to the $25 ,000 limit for 00:13:12.919 --> 00:13:15.000 his losses because he didn't actually put this 00:13:15.000 --> 00:13:18.399 election. So the IRS can be unforgiving if you 00:13:18.399 --> 00:13:20.100 don't follow the procedures because in this case, 00:13:20.100 --> 00:13:22.559 he probably had a lot of real estate losses and 00:13:22.559 --> 00:13:25.399 that would have reduced his income in total versus 00:13:25.399 --> 00:13:29.559 him only having to take $25 ,000. So if it came 00:13:29.559 --> 00:13:32.120 down to, hey, are you gonna have to pay tax because 00:13:32.120 --> 00:13:34.139 you didn't follow the procedures to the letter 00:13:34.139 --> 00:13:36.460 of the law, then they're gonna hold you to that 00:13:36.460 --> 00:13:38.600 standard. So it's important to be very thorough. 00:13:38.830 --> 00:13:40.549 to make sure you review your tax return with 00:13:40.549 --> 00:13:42.549 your tax professional, to make sure you make 00:13:42.549 --> 00:13:44.990 all your proper elections so that you're not 00:13:44.990 --> 00:13:47.169 in the boat Mr. May was where he actually missed 00:13:47.169 --> 00:13:49.409 out on elections just because he didn't add a 00:13:49.409 --> 00:13:52.210 simple statement to his tax return. So a good 00:13:52.210 --> 00:13:55.929 lesson to be thorough, have a tax plan on a year 00:13:55.929 --> 00:13:58.529 by year basis, do your due diligence and to keep 00:13:58.529 --> 00:14:00.370 more of what you earn. I'll talk to you guys 00:14:00.370 --> 00:14:00.830 next week.