Wealth Well Done

E28: Navigating Mergers and Acquisitions with Joe Van Voorhis

Learn the insider secrets to selling your business for top dollar! In this episode, Eric interviews Joe Van Voorhis of Generational Equity to discuss mergers and acquisitions. Joe shares his expertise from over 35 years in the industry, including 18 years at Generational Equity. He explains the M&A process, how to properly value a business including intangible assets, recasting financials, and who the typical buyers are. Joe also discusses the current seller's market and dry powder that private equity firms have to deploy. If you’re a business owner thinking of selling your company, then this episode is for you!
Here are some topics from today’s discussion:
Mergers and acquisitions defined
Generational Equity’s focus on small and mid-market deals
More about Generational Equity
How to determine the value of your business
How to assess your intangible assets
The traditional buyers
The concept of recasting
What does dry powder mean?
Episode Highlights:
[03:12] What Does the Term ‘Mergers and Acquisitions’ Mean?
Mergers have become a rarity in today's business landscape. Instead, it's largely acquisitions where larger companies absorb smaller ones. At Generational Equity, they specialize in assisting clients who are looking to transition from their current business to pursue new career paths or retirement. Their role revolves around helping them strategically structure their companies to attract potential buyers, ensuring they are market-ready. Furthermore, they facilitate the seamless transaction of selling their business to a qualified third party.
[09:25] How to Determine the Value of Your Business
Buyers typically assume control of the transaction process. They enter the scene, employing tactics to shape and evaluate the worth of a business based on industry standards. Often, individuals rely on the averages provided by trade organizations, as buyers possess in-depth knowledge of valuations from their professional experiences. However, to truly determine fair market value, active participation in the marketplace is crucial. A large pool of potential buyers fosters competitive dynamics and defines the value. Nevertheless, preparing a business for market readiness can be a time-consuming endeavor, usually taking around 6 to 8 months. Once in the market, the number of potential buyers can exceed expectations, greatly increasing the chances of finding the right buyer at the right price. Savvy buyers, just like sellers, begin negotiations with conservative offers and only raise them when outperformed by market forces. This competitive market approach is strongly encouraged to maximize outcomes for our clients.
[16:59] The Traditional Buyers
Strategic buyers (companies looking to acquire competitors or expand into new markets)
Private equity firms and family offices
EB-5 visa investors (foreign nationals looking to acquire a US business to get a green card)
Foreign buyers (both public and private companies)
Joe emphasizes that they want to cast a wide net and access buyers from multiple categories, not just local competitors. Their database has over 34,000 qualified professional buyers.
[20:54] What is Recasting?
Recasting refers to adjusting a business's financial statements to more accurately reflect its true profitability and value. Joe explains that many business owners will underreport profits on their tax returns by taking excess salary, rent payments, or distributions to family members to reduce taxable income. In the M&A process, recasting adds back expenses that were really ways to take profits out of the business, like excess salary or one-time capital expenditures. This "steps up" the reported net profits to a more accurate level that better represents the earning potential a buyer can realize. Recasting typically increases reported profits by around 30% according to Joe.
Resources:
Generational Equity
DealForce app

E27: Evaluating Your Advisor: Are You Getting Your Money’s Worth?

When discussing financial advice, there are three main aspects to consider: tactical, practical, and spiritual. Tactical advice focuses on specific financial situations such as taxes, estate planning, and investments. Practical advice looks at how these concepts apply to your everyday life, including money management within relationships and avoiding raising spoiled children. The spiritual aspect delves into what the Bible has to say about money and applies biblical principles to financial decisions, with stewardship being a key component. Today's topic will explore how to evaluate your financial advisor, encompassing all three of these principles.
Here are some topics from today’s discussion:
Three main aspects to consider when it comes to financial advice
The dangers of acting on greed and fear in investment decisions
Why diversity often feels like losing
How to justify your investments
Understanding the results of the DALBAR Study
The best places to invest your money
How to find value in your investment advisor
 
Episode Highlights:
[04:04] The Dangers of Acting on Greed and Fear in Investment Decisions
When you take on the responsibility of making investment decisions without professional guidance, it's natural to be influenced by two powerful emotions: greed and fear. However, acting solely on these emotions can lead to dangerous investment choices. Don't let greed and fear drive your choices; instead, seek a holistic understanding of the underlying factors before committing your hard-earned money
[12:01] The Best Places to Invest Your Money
Index ETFs: Eric believes investing in index ETFs is a good long-term strategy, but warns against frequent changes to investments due to short-term underperformance. He advises paying close attention to them and conducting thorough due diligence before making an investment decision. It's important not to be swayed by short-term underperformance and to have a long-term perspective when holding index ETFs. Adam believes that, in most cases, holding them for the long term is the best move.
Kingdom of God: One of the best places to invest is undoubtedly in the kingdom of God. The returns it offers surpass any other investment opportunity, with guarantees that extend even beyond this life. While it's important to emphasize that this is not about promoting a prosperity gospel, the assurance of heavenly rewards makes it a compelling choice.
Invest in yourself: Develop new skills through education, training, or starting your own business as they will pay huge dividends both financially and personally. Investing in yourself has the potential for high returns while also providing fulfillment and opportunities to use your talents to help others. It's an investment that keeps giving back.
Real estate and alternative assets: They provide diversification beyond stocks and bonds, may offer higher potential returns through active management and use of leverage, help hedge against inflation as real assets, and give access to private investment opportunities not available in public markets.
[16:57] Finding Value in Your Investment Advisor
To find true value in your investment advisor, Eric recommends evaluating both tangible and intangible factors. An advisor should provide thorough research, emotional management support, and discipline around diversification for fees paid. However, value is also found in holistic guidance spanning taxes, estate planning, real estate, and biblically-aligned money principles. Asking how fees translate to this full-scope advice helps ensure an advisor relationship optimizes both finances and faith.
Resources:
If you want information on ways to get access to direct investments, email Eric directly at eric@storehouseassets.com.

E26: Maximizing Tax Benefits Through Real Estate Professional Status with Thomas Castelli

Taxes play a crucial role in our financial landscape, yet they often receive little attention and recognition for their economic impact. Unless you're an ultra-organized individual, most people procrastinate until the end of the year or early the next year to compile their tax information and hand it off to a CPA. The CPA then determines what needs to be paid, and once it's settled, it's quickly forgotten, much like going to the dentist to fill a cavity. People simply don't want to deal with it and fail to give it the attention it deserves. This is precisely why we are dedicating ample time to discussing taxes here. 
Last week, we had the pleasure of hosting Thomas Castelli, a partner at Hall CPA. Today, he discusses real estate professional status and how to qualify to take rental losses against other income. He provides a comprehensive overview of the rules and strategies around real estate professional status, to help you  learn how to leverage your status and maximize tax benefits.
Here are some topics from today’s discussion:
What is the real estate professional status?
How to qualify as a real estate professional
How bonus depreciation works
Evaluating the hours to qualify for real estate professional status
The two different types of grouping
 
Episode Highlights:
[03:33] What is the Real Estate Professional Status?
The real estate professional status allows real estate investors to treat losses from rental real estate activities as non-passive losses, allowing them to use those losses to offset other "active" income like salary, self-employment income, partnership income, S-corporation income, and more. To qualify as a real estate professional, the taxpayer must spend more than 750 hours per year working in real property trades or businesses and more time in real estate than any other trade or business.
[13:31] How to Qualify as a Real Estate Professional
There are two main requirements to qualify as a real estate professional:
The taxpayer must spend more than 750 hours during the year in real property trades or businesses. This includes activities like developing, constructing, acquiring, converting, renting, managing, or brokering real estate.
Real estate activities must comprise more than 50% of the taxpayer's total personal services that were provided during the year. This is determined based on hours spent. The hours that are going to impact the day-to-day operations of your property are typically the hours that will count. Research time, education time and travel time do not count towards real estate professional status. Another type of hours that don't count is the "investor level" hours where you’re not self-managing the property. In other words, you're not involved in the day-to-day operations, such as bookkeeping, keeping records, and reviewing property management statements.
[22:26] The Two Different Types of Grouping
There are two main types of grouping for real estate professionals:
Real Estate Professional Grouping: This allows a taxpayer who qualifies as a real estate professional to treat all of their rental real estate activities as one activity when applying the material participation tests, rather than having to meet the tests for each separate property. This makes it easier to qualify the rental losses as non-passive.
Section 469(c)(7) Grouping: This allows a taxpayer to group a rental real estate activity with a trade or business activity (like an S-corp) if they have common ownership and both are materially participated in. This treats the rental losses as non-passive so they can offset the income from the other business. This avoids having to separately qualify as a real estate professional.
Resources:
Tax Smart Investors
https://thomascastelli.com

E25: The Art of Tax Optimization: Home Office Deductions, Mileage Deductions, and Fair Payments to Your Children with Thomas Castelli

Did you know there are many tax deductions available to small business owners and real estate investors that could save you thousands per year? Tune into the latest episode of the Wealth Well Done podcast to learn about home office deductions, vehicle expenses, paying your children, and more! 
Thomas Castelli from Tax Smart Investors breaks down these deductions in plain English and explains how to take advantage of them properly without raising red flags with the IRS. You'll also get tips on record-keeping to withstand an audit. 
Here are some topics from today’s discussion:
Thomas’ career background
A look into the Tax Smart Insiders group
What is a home office deduction and how to calculate it
How to calculate the mileage deduction for vehicles
The importance of paying your children
 
Episode Highlights:
[09:14] What Is A Home Office Deduction? 
A home office deduction allows a business owner to deduct a portion of their home expenses that are related to a home office or workspace. To qualify for the home office deduction, the home office must be used exclusively and regularly for your business as your principal place of business. There are two main methods for calculating the home office deduction - the standard deduction of $5 per square foot up to 300 square feet, or the actual expenses method where you calculate what percentage of your home is used for business and allocate that percentage of total home expenses like mortgage, utilities, insurance, etc. to the deduction.
[15:06] How to Calculate The Mileage Deduction for Vehicles
There are two main ways to calculate vehicle deductions for business use - the standard mileage rate method or the actual expenses method. With the standard mileage rate method, you multiply the number of miles driven for business purposes by the IRS standard mileage rate, which is currently 65.5 cents per mile for 2023. For example, if you drove 10,000 miles for business, you would get a $6,550 deduction. On the other hand, the actual expenses method requires over 50% business use of the vehicle, and you calculate the percentage of business use to determine which expenses, such as gas, insurance, and repairs, are deductible.
[20:51] Paying Your Children
When paying your children for work performed in your business, it's important to consider a few key factors. The amounts paid should be reasonable for the work done and the child's age/ability. If the payments are below the standard deduction ($13,850 for 2023), the child doesn't need to file taxes as a W-2 employee. Providing documentation to substantiate higher rates, like online salary data, is necessary when paying over minimum wage. It's also important to keep records of the work and payments to ensure compliance during an IRS audit. Fair wages and supporting documentation are crucial when questioned by the IRS.
Resources:
Tax Smart Investors
https://thomascastelli.com

E24: Maximizing Tax Savings with Proper Business Structures and Tax Planning

Looking to optimize your tax strategy as a business owner or real estate investor? In this episode, Eric Scoville is joined again by Brandon Hall of Hall CPA and Tax Smart Insiders to discuss tax planning strategies for business owners and real estate investors. Brandon shares insights on classifying income as active or passive, proper business structures, and what to expect from a tax audit.
Here are some topics from today’s discussion:
How to prepare a tax return
Common mistakes DIY taxpayers make
LLC, S-Corp, and C-Corp structures and when each makes sense
Brandon’s approach to tax planning
Passive income vs. active income from a taxation standpoint
The penalties for getting audited
 
Episode Highlights:
[04:24] How to Prepare a Tax Return
Preparing your tax return can be manageable if you have a simple tax situation, such as a W-2 job with some itemized deductions like mortgage interest, property taxes, and charitable contributions. TurboTax can be a useful tool for self-preparation in these cases. However, it's crucial to recognize the limitations when your tax situation becomes more complex, such as starting a Schedule C business or investing in real estate. Adding a business or rental property to your return significantly increases the complexity. The IRS provides publications that offer instructions on preparing these additional forms, such as Schedule E and Schedule C. These publications also estimate the average time it takes a non-professional tax filer to complete these forms, often around 50 hours. This emphasizes the importance of seeking professional assistance when your tax situation becomes more intricate, ensuring accuracy, minimizing audit risks, and optimizing your tax strategy.
[05:59] Common Mistakes DIY Taxpayers Make
One common mistake that many DIY taxpayers make, particularly regarding real estate, is claiming deductions they are not eligible for or trying to offset their W-2 income with losses from depreciation, even if they are not real estate professionals or their property is not a short-term rental. Even well-informed DIY taxpayers who invest significant time in understanding the tax code may overlook more advanced concepts, such as partial asset dispositions and specific regulations like the 2013 tangible property regulations. These intricacies require a higher level of expertise to navigate accurately. Brandon believes tax preparation is one of the hardest businesses to run. He also advises against doing it yourself because you could be costing you more money and/or time than if you had just gotten yourself an expert.
[08:54] The Different Structures
LLC - A limited liability company provides legal protection but is taxed as a sole proprietorship (Schedule C) or partnership by default.
S-Corp - An S-corporation election allows business income and losses to pass through to owner's personal tax return. This structure can help reduce self-employment taxes.
C-Corp - A C-corporation is a separate legal entity from its owners that pays corporate income tax on profits before distributing to shareholders. Profits are then taxed again on the owner's personal tax return.
 
[28:09] The Benefits of Passive Business Investments
Investing in passive businesses can offer significant advantages. For instance, if one invests in a hair salon without actively participating in its operations or management, the income received from the investment becomes passive income. This means that the individual can leverage this passive income to offset any tax losses generated from other passive ventures, such as rental properties. In this way, passive business investments provide a valuable opportunity for diversification and strategic tax planning. It's important to note that the concept of passive businesses extends beyond rental properties, enabling individuals to offset income and losses between different passive ventures.
Resources Mentioned:
 
Hall CPA
Tax Smart Insiders: www.taxsmartinvestors.com/free-trial

E23: Maximizing Your Wealth with the Right Tax Strategies with Brandon Hall

In this exciting series of podcast episodes, we have the pleasure of hosting two remarkable CPAs from Hall CPA. Today, we kick off with none other than Brandon Hall, the brilliant founder, owner, and CEO of Hall CPA, as well as the mastermind behind the online community, Tax Smart Insiders. Join us as we delve deep into the intricacies of real estate taxation and accounting with Brandon, a visionary leader in the field. Get ready to uncover invaluable tax planning strategies and expert tips that will empower real estate investors to build wealth effectively.
Here are some topics from today’s discussion:
About Tax Smart Insiders
Not all CPAs are the same
The importance of understanding the tax laws
Understanding the tax code
Why real estate is a great way to build wealth
The tax loophole
Episode Highlights:
[08:00] Not All CPAs are the Same
When it comes to complex regulations like the passive activity loss rules, educating your accountant is crucial. Not all CPAs are familiar with specific code sections, leading to misunderstandings. Investors need to understand the basics to ask the right questions of their tax professionals. Tax Smart Insiders bridges the gap by providing expert content and access to a knowledgeable team for real estate investors. If accountants struggle with these complexities, investors often seek out specialized CPAs for guidance. Thinking creatively and combining expertise can lead to success. Tax Smart Insiders fills the niche of providing invaluable support to real estate investors.
[14:51] Understanding the Tax Laws
Understanding the fundamental workings of tax regulations is essential for clients. While extensive knowledge of code citations or tax court authority may not be necessary, comprehending how these regulations function is crucial. For instance, investors in real estate syndicates may receive an $80,000 tax loss on their K1 form after a $100,000 investment. However, their CPA may mistakenly claim that this tax loss cannot offset rental income from other properties generating passive income, which is incorrect. Familiarizing themselves with Section 469, including the passive activity loss rules, real estate professional status, and short-term rentals, is paramount for investors. Accountants, without day-to-day involvement in these matters, may lack comprehensive knowledge. Thus, investors must understand Section 469's fundamentals to confidently ask relevant questions and ensure accuracy.
[23:33] Why Real Estate Is A Great Way To Build Wealth
Real estate is an incredible avenue for wealth building, attracting a diverse range of investors. Over the years, I've come to realize that many real estate investors possess an entrepreneurial spirit. While they may not be full-blown business owners or willing to take on as much risk as someone starting and scaling a business, they exhibit a higher tolerance for risk than the average American who simply invests in ETFs. This understanding leads to the realization that entrepreneurs and like-minded individuals gravitate towards each other. In the real estate world, you have the opportunity to connect with fascinating people through various communities. These communities serve as platforms for collaboration, where investors share their experiences, seek advice, and discuss potential opportunities. Building these niche connections has proven to be more rewarding than I initially anticipated. Networking and meeting people from different parts of the country who share a passion for real estate has been an enriching experience.
Resources Mentioned:
Hall CPA
Tax Smart Insiders: www.taxsmartinvestors.com/free-trial

E22: Wealth Wisdom: Tax Strategies for Business Owners and Investors

Taxes are one of the biggest expenses for business owners and investors. In this episode, we'll discuss strategies you can legally use to reduce your tax bill and keep more of the money you earn. We'll cover retirement accounts and how to maximize tax benefits, depreciation, and how real estate investors can lower their taxes, as well as tax credits and incentives for business owners. Learn how to partner with the IRS using legal tax loopholes and how to select a tax professional to help you implement strategies.
Here are some topics from today’s discussion:
The compound impact of taxes on your wealth
How to qualify and select a CPA
How to use the Augusta loophole
How to partner with the IRS
Roth IRA vs. traditional IRA 
The 1031 exchange
How to use accelerated depreciation
How to use bonus depreciation to offset taxes
 
Episode Highlights:
[02:46] The Compound Impact of Taxes on Your Wealth
Effective tax planning can have a significant impact on your wealth. For instance, by reducing your taxable income from $600,000 to $50,000 and owing $50,000 in taxes instead of $200,000, you would have an extra $150,000 available for investment. Over time, compounding this additional amount at a growth rate of 12% can significantly boost your long-term net worth. Smart tax strategies and strategic investments can make a massive difference in securing your financial future.
[06:07] Qualifying and Selecting a CPA: Strategies for Business Owners, Real Estate Investors, and Philanthropists
Determine the Expertise Quality: When considering hiring a Certified Public Accountant (CPA), it's important to recognize that the expertise level can greatly impact both the service quality and the overall cost. To ensure you find the right CPA for your needs, take the time to qualify them through an interview-like process.
Assess Proactivity: One way to evaluate a potential CPA is by understanding their approach to proactivity. Discuss with them how involved you and your financial team realistically plan to be and inquire about their go-to strategies for business owners, real estate investors, and philanthropists.
Explore Philanthropy Strategies: If philanthropy is of interest to you, bring up the topic during the meeting with the CPA. They may introduce the concept of "bunching," which involves maximizing deductions by combining charitable contributions into a single year to surpass the standard deduction threshold. For example, instead of donating $15,000 to a charity each year, consider giving $30,000 every other year, taking advantage of higher deductions.
Gift Appreciated Assets: Another strategy to discuss with your CPA is gifting appreciated assets instead of cash. By donating appreciated assets, such as stocks or property, you can increase your deduction while avoiding capital gains tax. This allows you to give more to the charity while reducing the government's share.
Choosing the right CPA who understands your unique needs and can provide expert guidance on tax strategies specific to your situation is crucial for maximizing your financial outcomes. Make sure they are familiar with strategies specific to your situation, like S corps for business owners or opportunity zones for real estate investors. Finally, consider how up-to-date they are on the latest tax laws and incentives. An experienced CPA should stay on top of changes in the tax code.
[34:19] How to Use Bonus Depreciation to Offset Taxes
Bonus depreciation allows you to take upfront depreciation on passive income, potentially offsetting passive gains with large passive losses. If you can't fully utilize the passive loss in one year, it can be carried forward to future years. However, if you have real estate professional status, you can convert the passive loss into an active loss, offsetting active income instead. This allows you to reduce taxes at a higher rate compared to offsetting passive gains.
Resources Mentioned:
Nth Degree CPAs

E21: Understanding Taxes: Income Tax Brackets, Deductions and Entity Structures

Taxes got you stressed? Reducing your tax bill doesn't have to be complicated. Tune in to this podcast episode for tax strategies to help you keep more of the money you earn - legally. Join Eric Scovill as he walks you through the basics behind taxes since so much of your income goes there!
Here are some topics from today’s discussion:
Eric’s role as a financial planner
Partnering with the IRS
Understanding the basics of taxes
The different types of taxes
Historical tax rates for income
Income tax rates and effective tax rates
What would trigger an audit? 
Schedule C filers vs. S corp
How to decide which tax structure to use
Episode Highlights:
[04:50] Partnering with the IRS: Reducing Tax Liability and Keeping More of Your Money
The key is to understand that the intention behind the tax code is to create a partnership with the IRS. They place great emphasis on providing you with tools and strategies to help reduce your tax liability. By aligning with their objectives, they offer incentives to ensure you can keep a larger portion of your hard-earned money. 
[10:41] The Different Types of Taxes
Income tax - This includes federal income tax based on tax brackets as well as state income tax. Income can be active income from employment or passive income from sources like rentals, dividends, and capital gains.
Property tax - This is a tax based on the value of property, mainly related to real estate. The podcast mentions that property taxes vary significantly by state.
Sales tax - This is a tax imposed on the sale of goods and services, usually at the state and local level. Some states have no sales tax while others have higher rates.
Corporate tax - This refers to the tax imposed on corporate profits, currently at a 21% federal rate. C corporations pay this tax while pass-through entities like S corps and LLCs do not directly pay corporate tax.
Self-employment tax - This is the Social Security and Medicare tax that self-employed individuals pay, currently at 15.3%. As pass-through entities, owners of S corps only pay this tax on salary, not distributions.
Capital gains tax - This is the tax rate applied to profits from the sale of assets that have appreciated in value. Long-term capital gains have a lower tax rate than ordinary income.
Estate tax - This is a tax imposed on the transfer of assets after death, currently at the federal level for estates over $12.92 million. Some states also have an estate or inheritance tax.
[26:05] How to Decide Which Tax Structure to Use
Income taxes - C corporations pay corporate income tax at a 21% rate while pass-through entities like S corps and LLCs avoid this double taxation. However, owners of pass-through entities pay self-employment tax on their income.
Self-employment taxes - S corps can help reduce self-employment taxes by requiring owners to take a reasonable salary, with the rest distributed as profit distributions that avoid self-employment tax.
Legal protection - Different structures offer varying levels of legal and liability protection for owners. C corps offer the highest level of protection while LLCs and S corps offer some protection.
Complexity - C corporations tend to be more complex due to requirements like holding board meetings, issuing stock certificates, and filing corporate tax returns. S corps and LLCs are generally less complex and have fewer requirements.
Number of owners - C corporations can have an unlimited number of shareholders while S corps are limited to 100 shareholders and LLCs are typically limited to two or more owners.
Estate taxes - Pass-through structures may allow business owners to transfer ownership to heirs in a tax-efficient manner to reduce estate taxes.
Overall, business owners should consider their goals, the number of owners, income tax implications, and legal protection needs when deciding between entity structures. Consulting with a tax professional can also help ensure the right structure is chosen.

E20: Tithing, Offerings, Generosity, and a New Testament Perspective on Giving

This week, Eric Scovill continues the conversation with Jay Link as they discuss God, money and stewardship. Jay does a great job breaking down common misconceptions around tithing and offering practical tools for biblical giving and generosity. Check out this episode if you want to learn how to use your finances in a way that honors God!
Here are some topics from today’s discussion:
How Christians should approach tithing today
God loves a hilarious giver
What it means to give everything you have
How to decide how to divide giving
How to give money away and have it not go to taxes
Transforming wealth and impact through biblical stewardship
Episode Highlights:
[02:47] How Christians Should Approach Tithing Today
According to Jay, Christians should move away from a legalistic approach of tithing 10% of their income and toward a more biblical concept of generous giving based on what they decide in their hearts. Some key points he mentions:
Tithing can become an obligation instead of an expression of love.
The New Testament does not teach tithing but encourages cheerful, voluntary giving. 
Christians should ask themselves how much they should spend on themselves instead of how little they can give. 
Giving should be motivated by a desire to use God's resources for his purposes, not out of guilt or obligation. 
The Bible teaches that all we have ultimately belongs to God and we are simply stewards of his resources.
[11:27] God Loves a Hilarious Giver
When our giving is motivated by obligation or guilt, it is not joyful or hilarious. But when we give freely and generously out of our love for God, from resources that ultimately belong to him, our giving can become a hilarious act of joy and worship. Giving in this way pleases God far more than begrudging tithes or reluctant offerings.
[14:34] What It Means To Give Everything You Have
When Jesus spoke of giving up all possessions to be His disciples, it may not imply that everyone must relinquish everything they own and live in extreme poverty. Rather, it could be understood as surrendering the ownership of our possessions and recognizing that they ultimately belong to Him. The essence of Jesus' message is about living with a mindset of stewardship, acknowledging that all that we have comes from Him. It's about shifting our perspective from possessing to stewarding. As disciples, we are called to live as if our possessions belong to Him, using them wisely and for His purposes. 
[19:19] How to Give Money Away And Have It Not Go to Taxes
Jay explains that estate taxes, capital gains taxes and gift taxes are optional for those who know how to minimize or avoid them through proper planning. The stewardship planning process he outlines helps families:
Identify God's purposes for the resources he has entrusted to them.
Determine which ministries and organizations will best steward those resources after the original owner releases them.
Carefully and intentionally design a plan to deploy the resources in a way that bypasses taxes and funnels funds to the kingdom.
This usually involves a combination of giving while living, gifting assets, and setting up testamentary trusts and bequests. With proper planning, families can give far more to charity than they pay in taxes, while also providing for their heirs. However, it requires working with advisors who understand these strategies and are willing to implement them.
Resources:
https://stewardshiplibrary.com 
Jay Link’s 25 Questions about tithing
Jay Link’s article Giving As An Act Of Worship

E19: Stewardship: Managing God’s Resources for His Kingdom with Jay Link

In this episode, Jay Link from Stewardship Ministries joins host Eric Scovill to discuss the biblical concept of stewardship and how Christians should view and manage money and resources. They cover topics like the proper definition of stewardship, the role of money in faith, the biggest misconceptions around tithing, how affluenza affects our view of wealth, and how to pray to determine God's will for our lifestyle and giving. Listen in and walk away with practical tools to rethink your relationship with money through a biblical stewardship lens.
Here are some topics from today’s discussion:
What is stewardship? 
How money can work against faith 
The definition of an unjust steward  and the parable of the unjust steward 
The biggest misconception around stewardship
How money's influence is the same today as in Jesus' time 
How to apply the realization of excess
Why we don't see ourselves as rich and how affluenza affects our perception of wealth 
Praying for God to remove anything that stands between you and Him
 
Episode Highlights:
 
[08:17] The Instrumental Role of Money in Our Faith
 
As you accumulate more possessions, you may start relying on them for security instead of relying on the provider. This can lead to problems because your sense of security becomes tied to the stock market and other material possessions, rather than to God. When fear takes hold of your faith, it becomes difficult to make good spiritual decisions. Your finances, property, talents, relationships, and other aspects of your life should be brought under the Lordship of Jesus so that they can be used to advance His kingdom instead of being a hindrance to what God wants to do with the resources He has entrusted to you. 
[10:52] What is Stewardship?
Stewardship refers to the act of managing someone else's property as a caretaker or manager. While many people in churches associate stewardship with giving and money, the true meaning goes beyond just financial contributions. It involves recognizing that God owns everything in the universe, including our possessions, talents, time, and relationships. As stewards, we are entrusted with a small but strategic portion of these resources to be used for God's purposes and His glory. This mindset shifts our focus from being owners of our own little financial empires to being caretakers of the King of kings and the Lord of lords, allowing us to live a life that honors God and advances His kingdom.
[21:51] The Biggest Misconception Around Stewardship
 
The biggest misconception about stewardship is that we owe God 10%. This stems from an Old Testament law that required tithing for the Jewish community. However, this doesn't apply to modern-day Christians who should focus on managing all their resources for God's purposes. This perspective can lead to giving generously and joyfully rather than just fulfilling a legalistic obligation.
Resources:
https://stewardshiplibrary.com