Tax Strategy Time Investment

Shaan Puri shares his realization about the importance of tax planning, particularly after experiencing significant income growth. He emphasizes that despite focusing on making money, he neglected the crucial aspect of keeping it through proper tax planning.

• Taxes are the biggest expense once you start making "real money"

  • Didn't do proper tax planning early enough in the year
  • Income went up 4.5x but didn't focus on tax strategy

• Found a Strategic Solution:

  • Connected with successful real estate investor friend
    • Built $1B real estate portfolio in 8 years
    • No outside capital
    • Has specific niche application with unfair advantage
  • Invested with them to benefit from:
    • Property returns
    • Tax depreciation benefits
    • "Double return" through both investment gains and tax savings

• Time Investment for Tax Planning:

  • Jess Ma's advice: Should spend 5-10% of time on tax strategy
    • 30-50% of all income goes to taxes
    • 20+% of investment gains go to taxes
  • Shaan's reflection:
    • 10% would be 5 full weeks per year - too much
    • Should at least spend 1-2 weeks focused on tax strategy
    • Regrets not taking it seriously earlier

• Key Learning:

  • It's "financially irresponsible" to not dedicate time to tax planning
  • Real estate is one of the best tax strategy tools
    • Can offset active income through depreciation
    • Especially effective if spouse qualifies as real estate professional