A
anon_0k9zlfz6lz9oy
Guest
first and foremost this scenario would go under the assumption that we are able to get Greg back and Ash goes back to tOSU as the DC. So hear me out.
Ash goes back to tOSU and becomes DC there and GS comes to RU as head coach. Here is why it makes sense for Chris Ash to receive a lump-sum payment of $3 million as his buyout. As the Ohio State DC he’d be making $1.5 million and therefore we’d only owe him four roughly $1 million dollar payments annually, the net present value of that discounted at 7% is $3.4 million. On top of this we are going to have Ash meet with a financial planner who knows tax planning back to front. You guys will think I’m crazy for what I’m about to say but it’s probably because you guys all pay way more in taxes than you need to. This financial planner is going to advise Doreen to get her real estate license and work just 15 hours a week in real estate where she will generate over 50% of HER income for the next year through real estate related activities. By doing so, she is now considered by the IRS to be a “full-time real estate professional”. Chris and Doreen then begin to invest $2 million dollars per year passively into real estate syndications that pay a 7-8% preferred return making them an additional $160,000 a year BUT here’s the kicker. Under the new tax reform a little thing called 100% bonus depreication was implemented where to simplify it, essentially for every dollar you invest in these investments you get about 80-90 cents as a tax deduction. The beauty of this? Only one spouse needs to be a “full-time real estate professional” to allow you to carry any “losses” on your K1’s over to your ordinary income if you are filing as a married couple. (Disclaimer, consult a CPA as I am not one but make sure your cpa actually knows what the hell their talking about. I can refer you to mine).
Chris and Doreen combined in 2019 make $1.7 million dollars between $1.5 as Ohio State DC, her $30,000 as a part-time realtor and their $170kish through real estate cash flows. The $2 million invested in real estate results in $1.6-1.8 million in tax deductions so lets go with $1.7. They now use that $1.7 million dollar tax deduction to wipe out their entire 2019 income and they stick $1.7 million in their pockets while building up a real estate portfolio that can be passed down to their grandkids grandkids. In 2018, Chris as the only worker in the family made $2.2 million dollars. Living in NJ, he will have paid about 44% of that to the government and stuck just $1.23 in his pocket after taxes. In 2019, after taking a $3 mill lump sum, he KEEPS about $500k more in his pocket as ohio state DC vs RU head coach. It’s not about how much you make, it’s about how much you keep.
My point here? All it takes is someone in our athletic department to get creative and think of things like this. This is what I wanted to layout and share with Hobbs but he wont meet with me. I’m actually teaching a class on this in Ridgewood this morning which has a waiting list but I’m teaching it again in Montclair tomorrow morning, not sold out but there is limited space there. If anyone wants to learn more about how they can do this themselves you can be my guest free of charge.
I’m not gonna sit here and bitch, moan, and complain. I’m looking for solutions and I hope Hobbs is too.
Ash goes back to tOSU and becomes DC there and GS comes to RU as head coach. Here is why it makes sense for Chris Ash to receive a lump-sum payment of $3 million as his buyout. As the Ohio State DC he’d be making $1.5 million and therefore we’d only owe him four roughly $1 million dollar payments annually, the net present value of that discounted at 7% is $3.4 million. On top of this we are going to have Ash meet with a financial planner who knows tax planning back to front. You guys will think I’m crazy for what I’m about to say but it’s probably because you guys all pay way more in taxes than you need to. This financial planner is going to advise Doreen to get her real estate license and work just 15 hours a week in real estate where she will generate over 50% of HER income for the next year through real estate related activities. By doing so, she is now considered by the IRS to be a “full-time real estate professional”. Chris and Doreen then begin to invest $2 million dollars per year passively into real estate syndications that pay a 7-8% preferred return making them an additional $160,000 a year BUT here’s the kicker. Under the new tax reform a little thing called 100% bonus depreication was implemented where to simplify it, essentially for every dollar you invest in these investments you get about 80-90 cents as a tax deduction. The beauty of this? Only one spouse needs to be a “full-time real estate professional” to allow you to carry any “losses” on your K1’s over to your ordinary income if you are filing as a married couple. (Disclaimer, consult a CPA as I am not one but make sure your cpa actually knows what the hell their talking about. I can refer you to mine).
Chris and Doreen combined in 2019 make $1.7 million dollars between $1.5 as Ohio State DC, her $30,000 as a part-time realtor and their $170kish through real estate cash flows. The $2 million invested in real estate results in $1.6-1.8 million in tax deductions so lets go with $1.7. They now use that $1.7 million dollar tax deduction to wipe out their entire 2019 income and they stick $1.7 million in their pockets while building up a real estate portfolio that can be passed down to their grandkids grandkids. In 2018, Chris as the only worker in the family made $2.2 million dollars. Living in NJ, he will have paid about 44% of that to the government and stuck just $1.23 in his pocket after taxes. In 2019, after taking a $3 mill lump sum, he KEEPS about $500k more in his pocket as ohio state DC vs RU head coach. It’s not about how much you make, it’s about how much you keep.
My point here? All it takes is someone in our athletic department to get creative and think of things like this. This is what I wanted to layout and share with Hobbs but he wont meet with me. I’m actually teaching a class on this in Ridgewood this morning which has a waiting list but I’m teaching it again in Montclair tomorrow morning, not sold out but there is limited space there. If anyone wants to learn more about how they can do this themselves you can be my guest free of charge.
I’m not gonna sit here and bitch, moan, and complain. I’m looking for solutions and I hope Hobbs is too.
