Episode 118: The New Tax Law and How It Impacts Agency Owners, with Eric Levenhagen

By |January 8th, 2018|

As soon as I heard the tax law had passed, I made one call – to Eric Levenhagen, my personal tax advisor who has helped me craft my own tax strategy for years and today works with many agency owners across the country.

I had two questions for him: 1) How do we need to alter the tactics we’ve been applying for my businesses and 2) Will you be on my podcast and help my listeners understand how the tax laws will impact them?

As you’ll hear, we got right to the heart of the matter and spent the entire episode talking specifics about how we can take advantage of the new law and what we’re going to have to shift because it’s no longer advantageous or possible.

I hope you’ll listen and walk away feeling like you have a better handle how the new tax law is going to impact your agency and your personal finances.

Eric Levenhagen founded ProWise Financial Coaching (formerly known as ProWise Tax & Accounting) in 2005. Eric’s mission is to perform a comprehensive service for his clients, unlike any other firm out there, and help clients lead a life of financial abundance.

Eric is both a Certified Public Accountant and a Certified Tax Coach who integrates both disciplines into a holistic, client-centered approach towards maximizing his clients after-tax income and wealth.

Outside of the office, Eric enjoys spending time with his wife and kids. His hobbies include reading, following college and professional football, and music. Finally, Eric is an aspiring traveler and hopes to be able to take his family many places around the world someday.

 

 

What you’ll learn about in this episode:

  • What isn’t changing with the new tax law
  • The big deduction changes you need to know about (both for S Corps and C Corps)
  • Income pass through: the specifics of the 20% deduction you will now get on income that rolls down to your personal taxes from your agency and any other businesses you may own (as long as you don’t make too much)
  • Why we don’t know everything about the new tax law yet (and why it will take months or years to figure everything out)
  • The loopholes that are going to appear in the next few years and why you need a tax strategist (and not just a tax preparer) to find you those loopholes
  • How the new tax law will impact agencies that make stuff for clients and those that consult and sell their knowledge as a stand alone product
  • How the way C Corps get taxed will help those making over $100,000 in net income but hurt those making under that threshold
  • Are there any things that agency owners should shift from their personal taxes back to the business?
  • Keeping versatility in your tax plan so you’re not stuck if and when things change again when the tax law changes again
  • How to get your money out of your agency to invest elsewhere under the new tax law (and why it differs for S Corps and C Corps)

The Golden Nugget:

“It could be years until we figure everything out about the new tax code, and it’s not going to all come at once. We have to wait for the IRS to interpret all the laws, and then those interpretations will be challenged.” – Eric Levenhagen Click To Tweet

 

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About the Author:

CEO of Agency Management Institute, serving 250+ agencies to help the owners build profitable agencies that evolve and scale.

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