Tyler D Harris, CPA

Senior Tax Accountant

I help business owners save millions in taxes using advanced tax strategies.

I moved to Hawaii with my wife and three kids for better work/life balance.

Tax Supervisor

Tyler D. Harris, CPA, CMA

A client copied me on an email with a lender this week.

Immediately, I reached out to the client to tell him to hit the brakes. A small change could save him $25k per year in taxes.

He's refinancing his home down from a 7.72% rate to a 5.75% rate.

At face value, it's a huge win.

But here's how he can make it even better. 

Currently, only the interest related to the first $750k of home acquisition interest is tax deductible.

With a mortgage balance of about $1,750,000, only about 43% of his mortgage interest is tax-deductible.

He is planning on pulling $150k of equity for home repairs, meaning his new loan amount will be $1.9 million at 5.75%. Overall, his rate drops quite a bit, but only 39% of his interest will be tax deductible.

He happens to have a decent amount of liquidity right now, so my suggestion is this:

1. Pay the original mortgage down to $750,000.
2. Wait about a month
3. Refinance at $1,900,000
4. Use $750,000 to pay off the original balance
5. Use the remaining $1,150,000 to invest into either his company or his portfolio.

At the end of the month, he's in the same financial position except for his taxes will drop.

Now he will be able to deduct all of the home interest and the rest of the interest will be deductible against his investment income.

This results in about $25k of annual tax savings (37% Fed and 11% HI), and the tax savings reduces his effective interest rate from 6.13% down to 2.99%.

Check out the math below and let me know if you have any questions.

Tyler Harris CPA

I help entrepreneurs worth $40M-$400M save $1M+ in tax.

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There is a lot of fear around stripping profits from a C-Corp.

"The IRS wants you to pay a dividend"

"You shouldn't avoid double-tax"

These are the claims, but they are based on old facts.

Before 2017, corporate tax rates were 35%. This meant if you pulled a dividend from the company at the highest brackets, your combined Federal tax rate was was about 50.47%.

If you paid yourself a big salary you would pay about 43.4%.

If you paid an S-Corp management company the rate was as low as 39.6%, but probably closer to 43%.

This meant the IRS was losing at least 7% when people avoided double tax!

Now? 

The rates are a lot closer:

Double tax: 39.8%
Wages: 40.8%
S-Corp: 37%-40.8%

There's barely a difference!

So don't believe the hype. 

C-Corps aren't terrible.

They are about as tax-efficient as any other structure.

But please, consult a professional to make sure you choose the right structure for your company.

I'm currently on the phone with the IRS resolving a $13,722 error that would have cost 5 minutes of attention.

In January 2025, Los Angeles County had some serious wildfires. A large portion of Pacific Palisades burned to the ground - entire neighborhoods.

As a result, both the IRS and the CA FTB extended disaster relief via payment postponement for all Q4 2024 estimates, 2024 balances, and Q1, Q2, and Q3 2025 estimated tax payments.

This means that the $13,722 underpayment below should have been waived, but the tax preparer (not us) failed to apply disaster relief to the taxpayer's account.

Instead, they calculated an underpayment penalty and had the client voluntarily pay it.

I've been busy resolving issues like this over the past couple of months.

We applied this disaster relief to all of our clients since our office is in Los Angeles County for their 2024 tax returns. 

Our clients will also get this relief for their 2025 tax returns. For some of them, I've seen over $100k of interest savings just by avoiding these penalties and delaying their payments.

If you weren't aware of this previously, check your tax returns and make sure you have disaster relief applied to your account if you were entitled to it.

In Motion Design, INC

INC 5000 fastest growing private company, back to back years. (2020 & 2021)

Design and brand building organization, specializing in General Merchandise: Apparel, Seasonal, Novelty, Gift, Workwear, Travel, and Private Label.

Selling our own brands in over 30,000 retail locations in the US, Canada and Central America.

Creating custom brands for many industry leaders across Convenience, Grocery, Drug, Hardware and more!

Sister company of Sparta East, manufacturer of MADE IN THE USA disposable face masks. FDA registered for general public use and 510(k) cleared for surgical use, ASTM Level 3. GSA contract holder.

Our top product is our execution and service to our clients!

Vice President of Sales

Director of Business Development

Making It In Retail Podcast

Co-Host and Co-Creator of MAKING IT IN RETAIL!

The podcast that dives into RETAIL, the BRANDS making it and breaking into it, and all the people that make everything happen!

Filmed in SoCal live in studio or remotely!

If you are part of a brand or retailer - we would love to have you on!

Co-Creator and Co-Host

7-Eleven

Full P&L and personnel responsibilities for 101 franchised locations. ($217M annual revenue)

Lead team of 14 Franchise Business Consultants around maintaining brand standards, customer satisfaction, merchandising, facilities maintenance, driving revenue and overall franchisee profitability.

Market Leader (Director of Operations)

Manage General Merchandise and Non-Food categories for 10,000+ US Based franchised and corporate 7-Eleven locations. ($400M+ annual revenue)

Partnered with leading suppliers and entertainment leaders to create custom and compelling product assortments, exclusive products and marketing tactics to drive excitement, traffic and revenue.

Created 1st Ever SLURPEE FUNKO POP!

Created LARGEST RUN OF WWE EXCLUSIVE FUNKO POP! (Stone Cold Steve Austin w/Championship Belt)

Partnered with NBA to release 1st licensed apparel program (T-Shirts/Hats) in convenience channel!
Started with 2020 All Star Game in Chicago then Lakers Championship gear 2020!

Partnered with Dallas Cowboys to release 1st licensed headwear (Cowboys Baseball Hat) in convenience channel!

Implented new toy platforms and programs into 10,000 stores driving $25M incremental revenue

Relationships with: Disney, NBA, NFL, Viacom, Sanrio, In Motion Design Inc, Funko, Mattel, Hasbro, TY Toys, Jaru, McLane, Coremark and many more!

Categories to include: 
-Apparel/Headwear
-Toys
-Collectibles
-Electronics
-Automotive
-Seasonal (Novelty/Holiday)
-Publications (Newspaper/Magazines)
-Heating/Charcoal/Propane
-Cooling/Insulators
-Household Paper Prodcuts
-Soap Cleaning
-Pet Food/Supplies

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