I am on the record stating that as far as musical taste is concerned, I am a "horn band" aficionado - Tower of Power, Chicago, Blood, Sweat and Tears. By default, I am not an aficionado of folk music and ballads. Having said that, I have always liked the music of Cat Stevens. His song "How Can I Tell You", is a great song. However, Lani Hall does it better.
So you ask, who is Lani Hall? Lani Hall is the longtime wife of Herb Alpert, founder of the Tijuana Brass and co-founder of A&M Records which he subsequently sold for over $500 million. Many of you know that I attribute my interest in Latin music first to my Mother (of blessed memory) and then to Sergio Mendes and Brazil 66. I can blame it on the Bossa Nova. Lani Hall, an American, who did not speak Portuguese but sang it beautifully, was the group's lead singer. The group recorded on A&M Records. She subsequently won a Grammy signing in Spanish. She does not speak Spanish either. All of this long winded explanation to say that she is a great singer that many are unfamiliar with. Her version of "How Can I tell You", is a better rendition than the Cat Stevens version. Listen to both and tell me that I am wrong!
Create a Management Company
How can I tell you that the year-end for tax purposes (December 31) is in plain view. What are you going to do from a tax perspective? Here's an idea? Create a new corporation taxed as a corporation for tax purposes. Unlike a limited liability company taxed as a disregarded entity - sole proprietorship or partnership - the corporation can have a fiscal year end instead of a calendar year end.
What if your investment and real estate LLCs had a management agreement with your investment vehicles to provide management services? A reasonable arms-length management agreement and fee would provide a tax deductible expense to the LLCs and taxable income whose tax year would not end until November 30, 2023. The tax return would be due on February 15, 2024, or August 15, 2024, on extension.
While a corporation is taxable at 21 percent currently, there is other planning to be implemented to further reduce taxable income? With the march towards year end in effect, this series will add planning ideas to the basic idea of the management company, like decorating the Christmas tree.
How can I tell you?