1. Workers Comp and Disability 2. Scholarships and Employer Education Assistance 3. Health Savings Account 4. Adoption, Foster Care, Receiving Child Support and/or Alimony 5. Disaster Relief 6. Inheritance (Federal - less than 6 million) and Gifts (up to $18,000) 7. Life Insurance Payouts 8. Capital Gains on Home (250,000 per person, must be primary residence, etc.) 9. Municipal Bond Interest (Can affect Social Security) 10. Withdraws from Roth IRA 11. Long Term Capital Gains within limits Thanks for the great video!
@@emmalee866 You are wrong! People simply are required to report that the withdrawals were spent on qualified expenses. You aren't even required to submit anything for proof!!! Individuals would only need to show proof of the qualified expenses "if" they are audited.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
you do not have to have meat daily, have an egg omelet day and a bean and peppers chili crock pot day. best to ya. Also chicken legs wrapped in half a piece of bacon, salt and pepper and roast in oven is fab! Also powdered drink mix to make Lemonade/tea Arnold Palmer is very nice. Cheers!
The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near future combined with accelerating poverty levels across the nation or going thru a historical economic depression...those are the extreme conditions that have produced the reverse market crashes in most examples I've seen. I personally don't see anything that extreme coming, but who knows.
Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.
Credit card rewards are tax free as well. If you're getting 2% back on everything you buy on average and pay off your balance every month, that's free money.
So your going to sleep with the snakes go get a stupid ass 2% back ? That’s sad that you are so ignorant at math ! Your paying those points and if you spend it you pay tax again ‘ next yoj will be saying whole life insurance with a paid account is not taxed ! It’s not taxed because it’s not income
What a system, when getting a 2% DISCOUNT on purchases not being taxed is considered a good thing. That's not even income -- again, it's a DISCOUNT (you get PART of your money back, when SPENDING the money). And yes, paying off your balance on time every month and getting that discount is a GREAT deal. It's how I've used credit cards for four decades, but in the beginning, cash back wasn't common.
@@rogergeyer9851 it’s common now because the credit card companies charge fir every transaction! The store you spend money at will have to give up some of their profits to cover the charge fir credit card so they mark the items up to cover that ! So your not saving money
@@rogergeyer9851 You get 2%back because the credit card company has already charged the seller 3%, and the seller has of course raised the price by that amount.
@@rogergeyer9851 and they are paying the two perused just don’t know it ! I can still find deals for cash ! I can sometimes get 5% discounts for cash ! So your 2% means that you forced the vendor to pay 5% to the card company just so you can get 2% ? That’s not saving money because the vendor had to raise the prices to cover your card
Thank you for the brief and to the point information. Very tired of youtubes that are stretched out and the point of the video doesn't come till the end of a 45 minute video. Great job and you made my day!
When the IRS classified child support received as non-taxable income they also eliminated the ability to deduct child support paid from taxable income. The result is child support previously taxed at the lower marginal rate of the receiver is now taxed at the higher marginal rate of the child support payer. More revenue for the federal govt and less money to provide for the dependent child.
That’s not really true at all ! Child support was never taxed and was never tax deductible NEVER ! It’s not income at all ! They did change the rules to allow parents to deduct child even if the child lived with the other parent!
OTOH, having children is a CHOICE, and the parents should be RESPONSIBLE for raising the child in a highly over-populated world. So the system shouldn't make raising children free. The system should discourage irresponsibly becoming a parent (when you can't or won't take good care of the children with your OWN money).
@@rogergeyer9851 no it’s not that proves that you dint have a clue ! Look cupcake I took IRS to federal tax court in DC and I represented myself and I won ! Yes it took a year to get it but I had knowledge of the tax code so you think your stupid rant means anything to me ? It proves you dint have a clue ! You do not have any idea what income is and you damn sure don’t understand tax code
No question that FAR too many presenters take roughly an hour for 5ish minutes of data, and I endlessly skip their videos, even for topics that interest me. Maybe they'll learn some day.
@@xejelah Actually that is part of their tricks to confuse the situation. One of the multiple entities they have control over pay the accountants. The individual person does not. Elon may have the accounting firm who does Twitter’s books manage his, too. Elon’s bill is waived, because Twitter is a customer, even though Elon can clearly afford to pay. And when folks like DJT claim they pay millions is taxes, The Trump Organization pays that, but DJT, the individual, pays next to nothing. And it is all completely legal. Whether it is right or wrong is a matter of opinion.
Having a passive income stream is incredibly valuable for those reliant on a fixed salary. Not only is a single income often insufficient, but the risk of losing one's job at any moment underscores the importance of having a fallback plan.
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor
Working with a Financial Advisor to help guide you on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal
@@Kin-28-8 Better plan is to use stop/loss strategies. If 20% is a nice gain for you set that as a sell point. If a 10% loss is your vomit point, set that too. I cannot tell you how many mistakes doing something that simple cost me. In the old days, before the internet, doing such things was a huge problem and was not free. Only the insiders had this edge. Now you can do this with a few clicks of your mouse inside a broker account. Free and as many times as you care to.
I am new to the stock/crypto market, Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks. I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities..
Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again
sure. why not, he goes by the name gabriel alberto william. I came across him in a Bloomberg interview and got in touch with him. You can use something else. For me, his strategy works hence my result. he provides entry and exit point for the securities I focus on
Carvana went from like $360 to $5, a year later it was $50. Its now $240 I think honestly the SM is full of these stories. The reason is AI and Tech has trouble calculating a unique selling position or idea. Peloton is another one which will survive and grow, sells for peanuts. Once they start selling exercise products with VR features Peloton will go vertical. Riding a bike as if you are outside on a trail...Expect there to be a wind feature on new peloton exercise bikes.
The tax system in the US is so complicated for no reason. We need a flat tax. So that individuals and corporations pay their fair share and people who make under the state or federal minimum should not be taxed at all. Problems solved. Better roads, schools,Healthcare and care for disabled and aged population. This country needs to stop picking and choosing who they want to help. If we are all citizens, we should all be entitled to what this country has to offer. But greed and power always wins here.
@butterman4610 personally I just want less complication and more transparency. A complete overhaul of the tax code will do. Thanks for the recommendation.
Im sick of being taxed to death. Get paid, taxed. Buy something, taxed again. Buy a car, taxed..buy gas, taxed again. Buy a home and / or land, taxed every year. If the government streamlined their operations and worked within a budget set before them, like every household, we would be better off. We revolted from Britain for these very reasons.
at this point it is no longer tax; just plain stealing. ALL of the infrastructure is already present, airport, bridge, road; we should be able to cut tax in half right now today. - veteran
Your narrowminded ignorance of is quite obvious. It cost lots of money to have schools for the next generation... as well as the fire, police and transportation system required to have a functioning civilization. Stop whining for christ sakes!!!
Reuse,recycle, repurpose. If those leave no alternatives buy a new quality replacement. Shop at garage sales. Dumpster dive. Some Thrifts are tax-free. Use free stuff apps/facebook marketplace/curb alerts.
If people would simply buy appropriate things for a task. Example...no typical homeowner would ever need anything quality wise beyond what you find at Harbor Freight. So start there before you run off to Lowes or Home Depot. Same for home furnishings...nobody needs Crate and Barrel. Heck the dollar store has some decent kitchen tools. Use-em and replace as needed for a buck, 1.50. Most Thrift stores have stuff to supply utensils. They are buried in plates.cups etc. Nobody should ever be buying new plates, stupid waste.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
Question. Are you saying that any capital gains received from your Roth IRA are not taxable? If so the that means that they can not be used to calculate your taxable capital gains or dividends that you showed toward the end of the video right?
Considering the currency is fiat and represents debt how can that be considered income? You aren't making a profit you are taking on debt. Taxes cannot be paid with debt...
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
Hi @kaitlyncranwick! This is not a simple answer so I invite you to schedule a free 30 minute meet-n-greet so that I can accurately give you the best response. Schedule at www.YourInvestmentCounselor.com or call us at 1-800-345-3155 ext. 1. Thanks for watching!
Unless you are a corporation you don’t have income. A natural person does not have income. By the way, paying taxes on wages is voluntary 26 CFR Section 601.602 Tax forms and instructions
Tax free capital gains and tax free qualified dividends may still require state tax to be paid, yes? Also those 2 tax free categories may increase the tax on your social security check and increase your monthly part B Medicare deduction from your SS check, yes ?
I’m not a finance guy but looked into this a while back. Any gift you give to anyone is not deductible because it’s not income to you at the time you gift it.
The money you are gifting has already been taxed so as long as you stay within the annual and lifetime gifting limits, this is not a taxable event. Thanks for watching!
I would like to apply #11 to my investment tax avoidance plan as soon as we get a market meltdown to be able to buy and hold qualified divs and long term gains. As a retired guy on SS and just 18K in regular divs and interest I still ended up paying 10% to the IRS on 5K of my income. Was only 500 bucks plus some to the state, but still want to avoid that.
So why are you paying so much ? See I have mutual funds and just in the year 2023 they made 26% and I’ll gladly pay my tax on that it’s taxed at capital gains rate not income tax rate
You can thank (Senator) Joe Biden for that tax on your SS. He was a raging proponent of both the 50% and later 85% being taxable. I know many others voted for it, but Biden is in videos grinning about it and appeared gleeful and excited that it passed.
@@fuzzyelm1: But if you held it in tax efficient index funds which tend not to sell, you could pay NONE of the capital gains taxes the VAST majority of the time. The only tax you'd pay is on the dividends, which tend to be tiny in such funds. So for example, if the dividends are two percent and you're in the 25% tax bracket, your total tax on those funds at the highest income tax rate you pay is ONLY half a percent. Vanguard broad based tax efficient stock index funds are a great example. And this isn't theory. I've been doing this for over 3 decades with half a dozen funds (I just checked). So things like their S&P 500 Index, Small Cap Index, Total Market Index, Total International Market Index, etc. Until my late 20's, I had your attitude (didn't worry about paying taxes on gains). Then I found index funds when my sister pointed out her husband didn't like the LARGE tax bills when the active growth stock mutual funds I had recommended were throwing off very significant annual gains during good market years. So I did a little research, and wala. So unless you invest in something like BRK with NO dividend, you CAN'T avoid paying tax on the dividends if you have a decent income as an ordinary US citizen. But you CAN defer almost ALL the capital gains, and if you die before selling, your inheritors pay ZERO on that, re the step-up basis rules for income taxes on estates.
Sorry, incorrect information it was Ronald Reagan in 1983 who passed that people would have to pay taxes on their income. You might be a little too young to know that but do your own research before you blame Biden for what he said in 2007.😂😂😂😂😂😂
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
Tax code changes taught me to you can build resilience into my portfolio. Diversification is key! My set manager helped me spread my investments across different asset classes like stocks, bonds, and real estate so that a positive tax code cha age here can help minimize the impact of aa negative tax code change there adjustments.
Some people get so focused on not paying taxes they lose sight of what is best. Returns, net of tax, is the true marker. Also, for some of the examples you give are about life choices or life events, that you pursue or happen that are not about tax impact. The negative financial impact of being disabled far outweighs a tax benefit.
We inherited a house with a mortgage from my aunt. It wasn’t worth much. A total pit actually.. we fixed it up at cost to us. Then tried the Air B&B thing for about a year. My husband needed emergency surgery. We decided to sell it to cover the medical bills. My daughter bought the house. Do we pay capital gains tax on it now ?
Hi @krismatthieu8767 Yes, but real estate steps up it’s cost basis upon the owners passing and then the money spent fixing it up can also offset some of the gains. Take the sale price minus realtor expense, minus physical improvement expense, minus value of house when inherited, plus amount depreciated on your previous tax returns will give you an estimation of your gains. Thank you for the question and thanks for watching!
@prophetseven728 yes, the classes are great for anyone wanting to be educated on the basics of planning for retirement. We have many clients in California and throughout the U.S. - even in other countries. Thank you for watching and do not hesitate to schedule a Meet-n-Greet if you have any questions!
Despite the fact that I invest, I am saddened by my inability to evaluate each company's performance and determine whether or not this is the ideal time to purchase stocks. My monetary stockpile is being depleted by inflation. At this stage, I need accurate market trajectory data, but I'm not sure what to do. Taxes are not in the market.
The investment you choose isn't right or wrong, just depends on the kind of business person you are or simply the kind of person you are. However, the end game is investing money long term creates wealth every time. Just pick what you like and understand, invest and it will pay off. A lifetime of investing for 5 mil is not hard to accrue.
Investment is the quickest path to financial freedom, the rich stays rich by spending like the poor yet investing! While the poor stays poor by spending like the rich yet not investing. it is good thing to start your Financial freedom this year with good investment idea.
I made more than $320,000, showing that there are more components of the market than the ordinary person is aware of. Having a financial consultant is currently the recommended course of action, especially for people nearing retirement.
Hi Rima! Unfortunately investing is no longer about individual company analysis. Look at Tesla’s stock history. No one would have invested in a company that was buried in debt and had not even shown a profit, yet their market cap was larger than BMW’s before they began showing any form of profit. Investing is different for everyone. What is right for you will be different than what is right for me, which will be different from what is right for your best friend. Take a step back and look at your time horizon and risk tolerance, develop a plan, pick appropriate investments to achieve your plan and evaluate along the way. Hope that was helpful and thanks for watching! Scott
Fundamentals. For example...many people think Oil Stocks make no sense now. What they forget is Oil has monopoly market power. For every electric car the price to drive old simply goes up. They do less and make the same or their normal returns. Paying out dividends which beat any bank. Burning oil is not going anyway but many people act that way. Every market is run by leaders laggards and hopefuls. Once you figure out who is who it will show you direction and who's going where. Then u just pick the right train to get on. For example...if a brick and mortar is not doing any sort of delivery scheme competitively and seriously, they are over...people under 30 are not going to trade with anybody less. Look for companies losing $$$ doing deliveries who are actually building marketshare. Grocery stores are a good example. If one of them can nail the fresh end of the gig, they are going to kill it. The second you see a LIVE in store option between the customer and the store picker...load up. If you can allow the customer to PICK their own meat/produce or any other item from home via an interactive employee experience, WHY would one bother going into a store at all? I never go to walmart anymore and spend $100 a week there.
So I just want to say I loved your video and your advice. What I'd like you to tell me, as I've been married for 20 years and husband pays me 1300 a month spousal support. But we live together. And I always paid the rent with it. So then tax season comes around and he claims 22000 special support. Office income, and then he has a side job painting business where he makes about 10000 a month. On all those side, work jobs doesn't keep a record of them and does not report it as income at all.
Aloha, i have 4 foster kids we're planning to adopt and I'm looking to use their monthly stipend to invest for their future but o t know what options are out there for the long-term growth. Thanks
Aloha! This is a great question and we would love to help. In order to respond correctly and discuss these options, it would be best to set a time to zoom. Please feel free to call our office directly, email us at ContactUs@SESweb.net or visit our website at yourinvestmentcounselor.com/ and click on the link below the TH-cam channel button. We appreciate you watching and look forward to hearing from you!
a) compound interest on bonds/investments -- compounding makes money that grows itself exponentially when you let it grow instead of withdrawing it. corporate, municipal, treasury....then there is silver/gold.... b) buy small quantities of silver in coins and let them stack up, periodically convert some for whatever amount of gold is desired -- gods money never looses value.. in both cases once you purchase you are done, no watching or monitoring the market need, the investment is the purchase, the strategy is leaving it alone.
How about the life insurance from employer? Employer provides 2 times of salary for the employees. If the employees die during employment period, is the life insurance proceed tax free? Employer pays the premium - employees included some income when the life insurance exceed the IRS limit.
I received a $2,000 artist grant in 1999 and I had to pay taxes on that income. When I received $5,000 in alimony during 1995, I paid out $2,500 in taxes. I made a mistake in that I took that money in during the year my husband income was high and we were being taxed at the 48% rate. I was so bummed! I should have waited to take the money until the following tax year when my income and taxation rate was also nothing.
well I assume drawing from my 401k to live in retirement counts? I did rollover the funds to have someone I trust manage it. So why did I have to pay taxes on it? It was well under 47,000.
I had a friend who was a victim of Katrina - FEMA issued them special benefits cards and gave them money to get back on their feet - after losing everything they owned. A few years later FEMA demanded that money back from him. He of course gave them the one finger salute.
This was very interesting and useful. On your last slide is the joint 65+ and single 65+ deduction switch? Lastly, one of my favorite tax free is section 1202, small business stock, upwards of 50 million is tax free!
Alimony it taxable in some states and must be reported on income to IRS (there are special rules if its taxed or not-I dont fully understand it….but I know someone who was shocked when she found out she would be taxed) . But IRS after 2018, no longer allows the payer to take it as a tax deduction. Ouch!
Hopefully I’m interpreting your question correctly and the answer would be no… if you gave away $12 million today, filed the appropriate forms with the IRS, and then you passed away after it was reduced to $6 million, your estate would only be taxed on anything additional left over. If you file the form with the IRS, you are locked in. Thank you for watching!
My understanding is that a wage is an exchange for labor and not income. My labor is a cost to me. If my labor is 7:23 I am nothing more than a slave. Income is a gain from an investment. When I exchange my labor ( a cost to me ) for money that my employer has ( a cost to him) no one has made an increase ( income ). 16th amendment allowed Congress to lay and collect a tax on "income" from all sources derived. Wages are an exchange that are agreed to and both the laborer and employer have encured a cost in the exchange. IRS has bullied and conned us . If we are to have taxes, then it should be simple and straightforward. We don't need cohurssion , fear, punishment, in short, we don't need the IRS.
The Constitution was written in 1787. Two years later it went into effect. Since that time the Federal government has had the power to impose an income tax. Also according to the politicians there is no limitation on taxation. The Federal Government can point to anything you own or potentially like paper profits on a stock and call that income and force you to pay taxes on it. Also you do not own your labor, the government can tax 100% of it if it wants to. In fact in the 1950's the top Federal tax rate was 91% on top of all the other taxes.
@@dcg590It's not free money. The person paid into it and/or their family did. It's also very little money with major rules that force people to stay poor. It's not free for the person that gets it. They paid into it.
Thank you for this video! Can you please do a video using this strategy with high yield dividend ETF such as :YieldMax, Defiance, Roundhill etc. ? The Yield on these covered call ETF can range from 20% to 100% or more.
My social security disability has always been tax free, but the disability I receive through the insurance I had from my former employer has been taxed every year. They put it on a w2 which nobody (including the IRS) knows why they are doing that. The few times I’ve spoken to an IRS representative, each individual told me in no uncertain terms that they should not be doing that, but for whatever reason(s), they won’t do anything about it.
Developers do pay taxes on their profits but as in all business income there are many ways to defer, shelter, and even legally avoid taxation. Thanks for watching!
Hi there! In order for an exception, you must have had no tax liability for the previous year and must expect to have no tax liability for the current year. Thanks for watching!
Hi @troy8579! Best to ask the CPA that does your taxes because they would know the intimate details of your situation. In general, no, BDC dividends are not necessarily tax advantaged because it comes in many forms… Thanks for watching!
@@PlanningBeforeInvesting that’s half right ! If it’s income then it’s taxed the other two types can be taxed or not taxed depending on a lot of factors
When ya don't know what something is such as bdc and vid then it doesn't apply that's taught at public schools back in 90's LoL cause taxed every day every year and every quarter as far as I no then double taxed again and even more taxes as everything keeps raising.
I would argue that a settlement for property damage is NOT income. It's like if you wreck your car and your insurance company pays the body shop for fixing it -- that shouldn't be taxed, as you are NOT receiving income for that.
Do these laws change from State to State? I ask because I saw a News story on how in Louisiana, the people who received financial assistance after Hurricane Katrina are being sued to pay back the money.
Good video... If you give some one money, there's a gift tax on the amount over $18,000. For 2024 year. U still have to claim the money first as income if you earned it. So depending on ur income tax bracket, u may be paying income tax on the money weather u give it away or not.
Damages collected from a lawsuit are generally considered income, however, there are exceptions to every rule, and each lawsuit claim is unique. Many personal injury settlements are an exception because they can be perceived as reimbursement for likely future expenses.
A good video i must say but i will always prefer stocks. AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
I love stock,! Bitcoin and Gold (some silver too) Take profit from Bitcoin and buy a little gold as backup. Get some land too if the taxes are reasonable. Its best to have several piles of profitable stuff.. reaching out to an FA for a proper guide is a GOOD ONE TOO.
I’ve been running off a combination of long term cap gains and deductions for carry-over losses to not pay any taxes for the last six years. I should be able to keep that going for another few years, so I pay zero taxes for ten years. That’s my goal
According to the IRS, Gold and Silver Eagles are US currency but all other forms are technically taxable. Thanks for the comment and thanks for watching!
One income that does not get taxed is income that accumulates from interest and possibly capital gains from state municipal bonds funding projects such as new roads, schools and other projects.
Flexible spending accounts are usually “use it or lose it” but a real HSA is not and can be carried into retirement. Hope that helps - thanks for watching!
Is there some way that life insurance proceeds does not involve someone's death? if there is, I suppose many would be dying to know what that could be?
Those "enormous" standard deductions are soon going to disappear/ sunset (next year) because the poison pill in the 2017 tax bill has them expiring, as it was written by the last administration. (The big tax breaks for large corporations do not expire, only the ones for individuals.)
@@metalrooves3651 Very easy to clear up. Trump's people cared more about corporations and the rich than the normal guy or they wouldn't be disappearing while the rich & corporations will keep on receiving them.
Answer this... when has a Democratically run government ever past legislation to reduce taxes? I'd bet big money that the sunset clause for individual tax cuts was required by Democrats to allow passage of legislation. Dems are never looking out for working people... only handouts for votes... prime example is student loan forgiveness, b.s.
No tax on education assistance - but people paying full tuition are doing so, with after-tax dollars. This isn’t just. [‘To clarify - certainly glad that there isn’t tax imposed on educational assistance - but there should be parameters in place that funds paid for education are done with pre-tax income.]
Market is down still, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mentioned a 54 year old that made $180k in 5weeks, how do I learn these strategies, my portfolio has been stagnant for months.
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.
Had a question regarding strategy #11... if a married couple were to make 250K in long term capital gains and another 29200 through other means then basically they would be paying only 15% taxes for 155950(250K-94050) which would be 23,392.5. This would effectively be 8.38% taxes. Is that correct OR am i doing something wrong? Ofcourse state taxes would be on top depending upon where one lives but federal would just be 8.38%. This would be incredible!
You should be taxed based on current (I presume Long-Term) capital gains tax rates. This taxation is complicated and will depend on all other sources of income first. Google current capital gains tax rates. Thanks for watching!
Hopefully you are missing context from the Schwab advisor. You have to be over 59.5 AND have had A Roth for over 5 years. Once you’ve met that criteria, everything in your Roth, including growth is tax-free.
During the financial settlement negotiation from my divorce, I got my ex-wife to agree to receive her alimony from my pension. Before I retired, I was paying the taxes on the alimony. After I retired, she started paying taxes on the alimony, because the pension money she received was going directly to her. I wish I could have seen her face when she found out. I did hear it in her voice (and the 10 seconds of silence it took to sink in). LOL - FTB
did he mention Personal injury settlements? he may have,,HILARY CLINTN WANTED TO TAX THEM AS INCOME. The reason they arent taxed is because they are replacing something you lost!They may sem like "windfalls" but it would be impossible for anybody to argue the value of the broken back you may have lost in the accident....YOU kind of addressed it but didnt complete the scenario.
1. Workers Comp and Disability
2. Scholarships and Employer Education Assistance
3. Health Savings Account
4. Adoption, Foster Care, Receiving Child Support and/or Alimony
5. Disaster Relief
6. Inheritance (Federal - less than 6 million) and Gifts (up to $18,000)
7. Life Insurance Payouts
8. Capital Gains on Home (250,000 per person, must be primary residence, etc.)
9. Municipal Bond Interest (Can affect Social Security)
10. Withdraws from Roth IRA
11. Long Term Capital Gains within limits
Thanks for the great video!
Thanks for the exec summary.
Thanks for the list
About HSA, the IRS wants taxpayers to report the distributions as income on Form 8889. So it is taxed.
@@emmalee866 You are wrong! People simply are required to report that the withdrawals were spent on qualified expenses. You aren't even required to submit anything for proof!!! Individuals would only need to show proof of the qualified expenses "if" they are audited.
Thank you for the 11 points of information. You are amazing!
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Gov laughs all the way to the bank too.
you do not have to have meat daily, have an egg omelet day and a bean and peppers chili crock pot day. best to ya. Also chicken legs wrapped in half a piece of bacon, salt and pepper and roast in oven is fab! Also powdered drink mix to make Lemonade/tea Arnold Palmer is very nice. Cheers!
Time to learn Spanish and Portuguese.
@@alomaalber6514wtf are you talking about. Youre way off the point here.
Corporate greed controls the government and citizens united act is the nail in that coffin
The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near future combined with accelerating poverty levels across the nation or going thru a historical economic depression...those are the extreme conditions that have produced the reverse market crashes in most examples I've seen. I personally don't see anything that extreme coming, but who knows.
Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.
Find out what the Big Boys are buying and mirror them. There's even gurus now you can sub who do this for you.
Credit card rewards are tax free as well. If you're getting 2% back on everything you buy on average and pay off your balance every month, that's free money.
So your going to sleep with the snakes go get a stupid ass 2% back ? That’s sad that you are so ignorant at math !
Your paying those points and if you spend it you pay tax again ‘ next yoj will be saying whole life insurance with a paid account is not taxed ! It’s not taxed because it’s not income
What a system, when getting a 2% DISCOUNT on purchases not being taxed is considered a good thing. That's not even income -- again, it's a DISCOUNT (you get PART of your money back, when SPENDING the money).
And yes, paying off your balance on time every month and getting that discount is a GREAT deal. It's how I've used credit cards for four decades, but in the beginning, cash back wasn't common.
@@rogergeyer9851 it’s common now because the credit card companies charge fir every transaction! The store you spend money at will have to give up some of their profits to cover the charge fir credit card so they mark the items up to cover that !
So your not saving money
@@rogergeyer9851 You get 2%back because the credit card company has already charged the seller 3%, and the seller has of course raised the price by that amount.
@@rogergeyer9851 and they are paying the two perused just don’t know it !
I can still find deals for cash ! I can sometimes get 5% discounts for cash !
So your 2% means that you forced the vendor to pay 5% to the card company just so you can get 2% ? That’s not saving money because the vendor had to raise the prices to cover your card
Thank you for the brief and to the point information. Very tired of youtubes that are stretched out and the point of the video doesn't come till the end of a 45 minute video. Great job and you made my day!
Glad it was helpful!
When the IRS classified child support received as non-taxable income they also eliminated the ability to deduct child support paid from taxable income. The result is child support previously taxed at the lower marginal rate of the receiver is now taxed at the higher marginal rate of the child support payer. More revenue for the federal govt and less money to provide for the dependent child.
That’s not really true at all ! Child support was never taxed and was never tax deductible NEVER !
It’s not income at all ! They did change the rules to allow parents to deduct child even if the child lived with the other parent!
OTOH, having children is a CHOICE, and the parents should be RESPONSIBLE for raising the child in a highly over-populated world. So the system shouldn't make raising children free. The system should discourage irresponsibly becoming a parent (when you can't or won't take good care of the children with your OWN money).
@@fuzzyelm1: Money coming in is income, however you decide to label it. It''s still income even if the arbitrary rules don't say it's TAXABLE income.
This is strange. Almost like someone hates men made this law
@@rogergeyer9851 no it’s not that proves that you dint have a clue !
Look cupcake I took IRS to federal tax court in DC and I represented myself and I won ! Yes it took a year to get it but I had knowledge of the tax code so you think your stupid rant means anything to me ? It proves you dint have a clue !
You do not have any idea what income is and you damn sure don’t understand tax code
The best thing about this video was that it’s under 10 minutes.🎉
It’s all lies for people that are stupid
No question that FAR too many presenters take roughly an hour for 5ish minutes of data, and I endlessly skip their videos, even for topics that interest me. Maybe they'll learn some day.
It's amazing how the tax codes are so complicated. It's almost engineered to be abused
Yup. The tax loopholes are there on purpose so wealthy can keep being wealthy.
Intentional, to confuse you.
That's why billionaires pay less taxes than their secretaries.
@@gregoryt1139 They pay millions to tax accountants instead, I'm not sure that's a win.
@@xejelah Actually that is part of their tricks to confuse the situation. One of the multiple entities they have control over pay the accountants. The individual person does not. Elon may have the accounting firm who does Twitter’s books manage his, too. Elon’s bill is waived, because Twitter is a customer, even though Elon can clearly afford to pay. And when folks like DJT claim they pay millions is taxes, The Trump Organization pays that, but DJT, the individual, pays next to nothing. And it is all completely legal. Whether it is right or wrong is a matter of opinion.
Having a passive income stream is incredibly valuable for those reliant on a fixed salary. Not only is a single income often insufficient, but the risk of losing one's job at any moment underscores the importance of having a fallback plan.
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor
Working with a Financial Advisor to help guide you on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal
@@Kin-28-8 Better plan is to use stop/loss strategies. If 20% is a nice gain for you set that as a sell point. If a 10% loss is your vomit point, set that too. I cannot tell you how many mistakes doing something that simple cost me. In the old days, before the internet, doing such things was a huge problem and was not free. Only the insiders had this edge. Now you can do this with a few clicks of your mouse inside a broker account. Free and as many times as you care to.
how many of these are useful to the everyday person.
Thank you for explaining AMT tax in relationship to Muni bond interest. 🙏You packed so much in to this short video.
You're welcome - thanks for watching!
I am new to the stock/crypto market, Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks. I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities..
Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again
Hi , please who is the expert assisting you and how do I reach out to them?
sure. why not, he goes by the name gabriel alberto william. I came across him in a Bloomberg interview and got in touch with him. You can use something else. For me, his strategy works hence my result. he provides entry and exit point for the securities I focus on
Thanks for sharing, I just looked him up online and I would say he really does have an impressive background on investing
Carvana went from like $360 to $5, a year later it was $50. Its now $240
I think honestly the SM is full of these stories. The reason is AI and Tech has trouble calculating a unique selling position or idea. Peloton is another one which will survive and grow, sells for peanuts. Once they start selling exercise products with VR features Peloton will go vertical. Riding a bike as if you are outside on a trail...Expect there to be a wind feature on new peloton exercise bikes.
The tax system in the US is so complicated for no reason. We need a flat tax. So that individuals and corporations pay their fair share and people who make under the state or federal minimum should not be taxed at all. Problems solved. Better roads, schools,Healthcare and care for disabled and aged population. This country needs to stop picking and choosing who they want to help. If we are all citizens, we should all be entitled to what this country has to offer. But greed and power always wins here.
A flat tax still allows for deductions and write offs. Look into “the fair tax”. There’s a book by Boortz and a former congressman from Colorado.
@butterman4610 personally I just want less complication and more transparency. A complete overhaul of the tax code will do. Thanks for the recommendation.
@@butterman4610 I would think there would be no dedications.
The same people who collect the taxes own the corporations.. they keep us strapped by design
I would like it if they didn't just waste the taxes.
Im sick of being taxed to death. Get paid, taxed. Buy something, taxed again. Buy a car, taxed..buy gas, taxed again. Buy a home and / or land, taxed every year. If the government streamlined their operations and worked within a budget set before them, like every household, we would be better off. We revolted from Britain for these very reasons.
at this point it is no longer tax; just plain stealing. ALL of the infrastructure is already present, airport, bridge, road; we should be able to cut tax in half right now today. - veteran
Your narrowminded ignorance of is quite obvious. It cost lots of money to have schools for the next generation... as well as the fire, police and transportation system required to have a functioning civilization. Stop whining for christ sakes!!!
Reuse,recycle, repurpose. If those leave no alternatives buy a new quality replacement. Shop at garage sales. Dumpster dive. Some Thrifts are tax-free. Use free stuff apps/facebook marketplace/curb alerts.
If people would simply buy appropriate things for a task. Example...no typical homeowner would ever need anything quality wise beyond what you find at Harbor Freight. So start there before you run off to Lowes or Home Depot. Same for home furnishings...nobody needs Crate and Barrel. Heck the dollar store has some decent kitchen tools. Use-em and replace as needed for a buck, 1.50. Most Thrift stores have stuff to supply utensils. They are buried in plates.cups etc. Nobody should ever be buying new plates, stupid waste.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
Question. Are you saying that any capital gains received from your Roth IRA are not taxable? If so the that means that they can not be used to calculate your taxable capital gains or dividends that you showed toward the end of the video right?
A Roth IRA is tax-free and unreported on a tax return. Thanks for the question!
Considering the currency is fiat and represents debt how can that be considered income? You aren't making a profit you are taking on debt. Taxes cannot be paid with debt...
Now you understand how we are all being fleeced.
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
Hi @kaitlyncranwick! This is not a simple answer so I invite you to schedule a free 30 minute meet-n-greet so that I can accurately give you the best response. Schedule at www.YourInvestmentCounselor.com or call us at 1-800-345-3155 ext. 1. Thanks for watching!
Than you for this concise summary of tax free income.
The income that you don’t report
😂😂😂
Haha, all of it. You wanna pay illegals and the Ukraine with my taxes. This far no further fuck our government.
Unless you are a corporation you don’t have income. A natural person does not have income. By the way, paying taxes on wages is voluntary 26 CFR Section 601.602 Tax forms and instructions
@@nitdiver5 🤓
@@nitdiver5cash is king 💵💵
FEIE is also tax free for up to a certain amount as well
Thank you for all of your knowledge!
Welcome!
Tax free capital gains and tax free qualified dividends may still require state tax to be paid, yes? Also those 2 tax free categories may increase the tax on your social security check and increase your monthly part B Medicare deduction from your SS check, yes ?
This video only addresses the IRS, not state taxes and yes, sometimes tax-free income can cause other taxation. Thanks for watching!
@@PlanningBeforeInvesting I appreciate your time, your information and your reply, thank you.
Disability insurance premiums need to be paid personally to be tax free. If paid by your employer, taxable.
This ⬆️
Not sure if this was addressed, but gift to kids, they don’t pay income tax, but do the parents get taxed on it or is it a straight deduction?
I’m not a finance guy but looked into this a while back. Any gift you give to anyone is not deductible because it’s not income to you at the time you gift it.
The money you are gifting has already been taxed so as long as you stay within the annual and lifetime gifting limits, this is not a taxable event. Thanks for watching!
I would like to apply #11 to my investment tax avoidance plan as soon as we get a market meltdown to be able to buy and hold qualified divs and long term gains. As a retired guy on SS and just 18K in regular divs and interest I still ended up paying 10% to the IRS on 5K of my income. Was only 500 bucks plus some to the state, but still want to avoid that.
So why are you paying so much ?
See I have mutual funds and just in the year 2023 they made 26% and I’ll gladly pay my tax on that it’s taxed at capital gains rate not income tax rate
You can thank (Senator) Joe Biden for that tax on your SS. He was a raging proponent of both the 50% and later 85% being taxable. I know many others voted for it, but Biden is in videos grinning about it and appeared gleeful and excited that it passed.
@@terry_willis he was one of the sponsors of the bill
@@fuzzyelm1: But if you held it in tax efficient index funds which tend not to sell, you could pay NONE of the capital gains taxes the VAST majority of the time. The only tax you'd pay is on the dividends, which tend to be tiny in such funds.
So for example, if the dividends are two percent and you're in the 25% tax bracket, your total tax on those funds at the highest income tax rate you pay is ONLY half a percent.
Vanguard broad based tax efficient stock index funds are a great example. And this isn't theory. I've been doing this for over 3 decades with half a dozen funds (I just checked). So things like their S&P 500 Index, Small Cap Index, Total Market Index, Total International Market Index, etc.
Until my late 20's, I had your attitude (didn't worry about paying taxes on gains). Then I found index funds when my sister pointed out her husband didn't like the LARGE tax bills when the active growth stock mutual funds I had recommended were throwing off very significant annual gains during good market years. So I did a little research, and wala.
So unless you invest in something like BRK with NO dividend, you CAN'T avoid paying tax on the dividends if you have a decent income as an ordinary US citizen. But you CAN defer almost ALL the capital gains, and if you die before selling, your inheritors pay ZERO on that, re the step-up basis rules for income taxes on estates.
Sorry, incorrect information it was Ronald Reagan in 1983 who passed that people would have to pay taxes on their income. You might be a little too young to know that but do your own research before you blame Biden for what he said in 2007.😂😂😂😂😂😂
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
Tax code changes taught me to you can build resilience into my portfolio. Diversification is key! My set manager helped me spread my investments across different asset classes like stocks, bonds, and real estate so that a positive tax code cha age here can help minimize the impact of aa negative tax code change there adjustments.
Some people get so focused on not paying taxes they lose sight of what is best. Returns, net of tax, is the true marker. Also, for some of the examples you give are about life choices or life events, that you pursue or happen that are not about tax impact. The negative financial impact of being disabled far outweighs a tax benefit.
I am a tax preparer and I can't stress this enough.
We inherited a house with a mortgage from my aunt. It wasn’t worth much. A total pit actually.. we fixed it up at cost to us. Then tried the Air B&B thing for about a year. My husband needed emergency surgery. We decided to sell it to cover the medical bills. My daughter bought the house. Do we pay capital gains tax on it now ?
Hi @krismatthieu8767 Yes, but real estate steps up it’s cost basis upon the owners passing and then the money spent fixing it up can also offset some of the gains. Take the sale price minus realtor expense, minus physical improvement expense, minus value of house when inherited, plus amount depreciated on your previous tax returns will give you an estimation of your gains. Thank you for the question and thanks for watching!
Are the classes any good for California residents? Thanks
@prophetseven728 yes, the classes are great for anyone wanting to be educated on the basics of planning for retirement. We have many clients in California and throughout the U.S. - even in other countries. Thank you for watching and do not hesitate to schedule a Meet-n-Greet if you have any questions!
The Gift and Inheritance tax is nonsense. If Grandma wants to give me $25 or $25,000 it should be of no concern of the government.
The rules around gifting and inheritance taxes are actually and surprisingly very generous.
@@KurtCharlesJr it shouldn't exist at all. the money being given has already been taxed. this is theft!
Try Probate.
Despite the fact that I invest, I am saddened by my inability to evaluate each company's performance and determine whether or not this is the ideal time to purchase stocks. My monetary stockpile is being depleted by inflation. At this stage, I need accurate market trajectory data, but I'm not sure what to do. Taxes are not in the market.
The investment you choose isn't right or wrong, just depends on the kind of business person you are or simply the kind of person you are. However, the end game is investing money long term creates wealth every time. Just pick what you like and understand, invest and it will pay off. A lifetime of investing for 5 mil is not hard to accrue.
Investment is the quickest path to financial freedom, the rich stays rich by spending like the poor yet investing! While the poor stays poor by spending like the rich yet not investing. it is good thing to start your Financial freedom this year with good investment idea.
I made more than $320,000, showing that there are more components of the market than the ordinary person is aware of. Having a financial consultant is currently the recommended course of action, especially for people nearing retirement.
Hi Rima! Unfortunately investing is no longer about individual company analysis. Look at Tesla’s stock history. No one would have invested in a company that was buried in debt and had not even shown a profit, yet their market cap was larger than BMW’s before they began showing any form of profit. Investing is different for everyone. What is right for you will be different than what is right for me, which will be different from what is right for your best friend. Take a step back and look at your time horizon and risk tolerance, develop a plan, pick appropriate investments to achieve your plan and evaluate along the way. Hope that was helpful and thanks for watching! Scott
Fundamentals. For example...many people think Oil Stocks make no sense now. What they forget is Oil has monopoly market power. For every electric car the price to drive old simply goes up. They do less and make the same or their normal returns. Paying out dividends which beat any bank. Burning oil is not going anyway but many people act that way.
Every market is run by leaders laggards and hopefuls. Once you figure out who is who it will show you direction and who's going where. Then u just pick the right train to get on. For example...if a brick and mortar is not doing any sort of delivery scheme competitively and seriously, they are over...people under 30 are not going to trade with anybody less. Look for companies losing $$$ doing deliveries who are actually building marketshare. Grocery stores are a good example. If one of them can nail the fresh end of the gig, they are going to kill it. The second you see a LIVE in store option between the customer and the store picker...load up. If you can allow the customer to PICK their own meat/produce or any other item from home via an interactive employee experience, WHY would one bother going into a store at all? I never go to walmart anymore and spend $100 a week there.
Also tax credits like EIC and child credits are tax free. Not to mention business deductions are essentially tax sheltering
Thank you for this ! I think I will be getting in touch with!
I love #11. With my 401-k payout, I'm looking at approx. $70,000 dividend payout tax free. Not too bad retiring at age 55
So I just want to say I loved your video and your advice. What I'd like you to tell me, as I've been married for 20 years and husband pays me 1300 a month spousal support. But we live together. And I always paid the rent with it. So then tax season comes around and he claims 22000 special support. Office income, and then he has a side job painting business where he makes about 10000 a month. On all those side, work jobs doesn't keep a record of them and does not report it as income at all.
Why the IRS cares how much money does one give to their kids or grandchildren?
Because they won't get any taxes on that money.
Because they want to steal as much of your money as they can
greed
Bezoar Gates warren Buffett.
That money was already taxed one point in time before grandparents giving it to children or grand children smh
So in your opinion what's the best disability to have? hopefully one which doesn't hinder travel and jet skiing.
Aloha, i have 4 foster kids we're planning to adopt and I'm looking to use their monthly stipend to invest for their future but o t know what options are out there for the long-term growth. Thanks
Aloha! This is a great question and we would love to help. In order to respond correctly and discuss these options, it would be best to set a time to zoom. Please feel free to call our office directly, email us at ContactUs@SESweb.net or visit our website at yourinvestmentcounselor.com/ and click on the link below the TH-cam channel button. We appreciate you watching and look forward to hearing from you!
a) compound interest on bonds/investments -- compounding makes money that grows itself exponentially when you let it grow instead of withdrawing it. corporate, municipal, treasury....then there is silver/gold....
b) buy small quantities of silver in coins and let them stack up, periodically convert some for whatever amount of gold is desired -- gods money never looses value.. in both cases once you purchase you are done, no watching or monitoring the market need, the investment is the purchase, the strategy is leaving it alone.
How about the life insurance from employer? Employer provides 2 times of salary for the employees. If the employees die during employment period, is the life insurance proceed tax free? Employer pays the premium - employees included some income when the life insurance exceed the IRS limit.
Don't forget most seniors are not required to file with the IRS or State if they live on Social Security up to a certain limit.
I received a $2,000 artist grant in 1999 and I had to pay taxes on that income. When I received $5,000 in alimony during 1995, I paid out $2,500 in taxes. I made a mistake in that I took that money in during the year my husband income was high and we were being taxed at the 48% rate. I was so bummed! I should have waited to take the money until the following tax year when my income and taxation rate was also nothing.
well I assume drawing from my 401k to live in retirement counts? I did rollover the funds to have someone I trust manage it. So why did I have to pay taxes on it? It was well under 47,000.
Not sure I understand the question, IRA money is taxable income when withdrawn.
I had a friend who was a victim of Katrina - FEMA issued them special benefits cards and gave them money to get back on their feet - after losing everything they owned. A few years later FEMA demanded that money back from him. He of course gave them the one finger salute.
I bet you aren’t getting the whole story from your friend. That sounds sus. Not to mention, your friend got handouts and is not grateful
Wow!
This was very interesting and useful. On your last slide is the joint 65+ and single 65+ deduction switch? Lastly, one of my favorite tax free is section 1202, small business stock, upwards of 50 million is tax free!
Hi @binhvong5297! The 65+ deductions are correct as is. Joint 65+ would receive $1,550 each single would receive $1,950. Thank you for watching!
Tech Tip:
When you are putting data and tables on the screen as your background, make sure your head is not COVERING ANY OF THE DATA!!!!
Alimony it taxable in some states and must be reported on income to IRS (there are special rules if its taxed or not-I dont fully understand it….but I know someone who was shocked when she found out she would be taxed) . But IRS after 2018, no longer allows the payer to take it as a tax deduction. Ouch!
Great information 🙏❗️
One question: Are retroactive estate taxes required if a prior gift exceeds the reduced estate tax limit in the year of death?
Hopefully I’m interpreting your question correctly and the answer would be no… if you gave away $12 million today, filed the appropriate forms with the IRS, and then you passed away after it was reduced to $6 million, your estate would only be taxed on anything additional left over. If you file the form with the IRS, you are locked in. Thank you for watching!
@@PlanningBeforeInvesting but you would have already paid years on the money you gifted ! You can only gift 13,000 a year without creating a tax
My understanding is that a wage is an exchange for labor and not income. My labor is a cost to me. If my labor is 7:23 I am nothing more than a slave. Income is a gain from an investment. When I exchange my labor ( a cost to me ) for money that my employer has ( a cost to him) no one has made an increase ( income ). 16th amendment allowed Congress to lay and collect a tax on "income" from all sources derived. Wages are an exchange that are agreed to and both the laborer and employer have encured a cost in the exchange. IRS has bullied and conned us . If we are to have taxes, then it should be simple and straightforward. We don't need cohurssion , fear, punishment, in short, we don't need the IRS.
The Constitution was written in 1787. Two years later it went into effect. Since that time the Federal government has had the power to impose an income tax. Also according to the politicians there is no limitation on taxation. The Federal Government can point to anything you own or potentially like paper profits on a stock and call that income and force you to pay taxes on it. Also you do not own your labor, the government can tax 100% of it if it wants to. In fact in the 1950's the top Federal tax rate was 91% on top of all the other taxes.
I'm on SS/Disability and I don't pay taxes because I don't get enough. I'm just below the poverty level.😢
At least you get free money.
Disability is not taxable income.
@@dcg590It's not free money. The person paid into it and/or their family did. It's also very little money with major rules that force people to stay poor. It's not free for the person that gets it. They paid into it.
Thank you for this video! Can you please do a video using this strategy with high yield dividend ETF such as :YieldMax, Defiance, Roundhill etc. ? The Yield on these covered call ETF can range from 20% to 100% or more.
My social security disability has always been tax free, but the disability I receive through the insurance I had from my former employer has been taxed every year. They put it on a w2 which nobody (including the IRS) knows why they are doing that. The few times I’ve spoken to an IRS representative, each individual told me in no uncertain terms that they should not be doing that, but for whatever reason(s), they won’t do anything about it.
I have seen this before and it usually has to do with employer paid wage replacement benefits. Thanks for watching!
What about the income that developers get? I was told that developers do not pay taxes on their income from developing. Is this still accurate?
Developers do pay taxes on their profits but as in all business income there are many ways to defer, shelter, and even legally avoid taxation. Thanks for watching!
I'm about to start working at a local church every Thursday for only a few hours for $15/hr. Am I qualified to write except on my W4 form?
Hi there! In order for an exception, you must have had no tax liability for the previous year and must expect to have no tax liability for the current year. Thanks for watching!
Big question ❓ Do dividends received from a BDC significantly reduce amount of taxes owed ?
What’s a b d c
Lol there are three types of income from these there’s income there non qualified dividends there qualified dividends
Hi @troy8579! Best to ask the CPA that does your taxes because they would know the intimate details of your situation. In general, no, BDC dividends are not necessarily tax advantaged because it comes in many forms… Thanks for watching!
@@PlanningBeforeInvesting that’s half right ! If it’s income then it’s taxed the other two types can be taxed or not taxed depending on a lot of factors
When ya don't know what something is such as bdc and vid then it doesn't apply that's taught at public schools back in 90's LoL cause taxed every day every year and every quarter as far as I no then double taxed again and even more taxes as everything keeps raising.
I did not see any mention of property damage settlements/income as being non taxable.
I would argue that a settlement for property damage is NOT income. It's like if you wreck your car and your insurance company pays the body shop for fixing it -- that shouldn't be taxed, as you are NOT receiving income for that.
Do you mind sharing info on the adviser who
assisted you? I'm 39 now and would love to
grow my portfolio and plan my retirement
She's OLIVIA SULLIVAN FINANCIALS
Olivia Sullivan is a very popular professional trader, I know a lot of people who have worked with her
I'm definitely gonna check her out. Do yo have any idea if she manages family fund?
Great info! Thanks
Thanks for watching!
What about social security for those who earn less than $1,000 a month?
The earnings threshold for Social Security is provided within the annual SS renewal statement.
@@therealBillyRayValentine i don't have that
Certainly, yes. Thanks for watching.
Do these laws change from State to State? I ask because I saw a News story on how in Louisiana, the people who received financial assistance after Hurricane Katrina are being sued to pay back the money.
Good video...
If you give some one money, there's a gift tax on the amount over $18,000. For 2024 year.
U still have to claim the money first as income if you earned it. So depending on ur income tax bracket, u may be paying income tax on the money weather u give it away or not.
What about money from 1. Personal injury lawsuits. 2. Wrongful death lawsuits?
Damages collected from a lawsuit are generally considered income, however, there are exceptions to every rule, and each lawsuit claim is unique. Many personal injury settlements are an exception because they can be perceived as reimbursement for likely future expenses.
A good video i must say but i will always prefer stocks. AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
I love stock,! Bitcoin and Gold (some silver too) Take profit from Bitcoin and buy a little gold as backup. Get some land too if the taxes are reasonable. Its best to have several piles of profitable stuff.. reaching out to an FA for a proper guide is a GOOD ONE TOO.
I’ve been running off a combination of long term cap gains and deductions for carry-over losses to not pay any taxes for the last six years. I should be able to keep that going for another few years, so I pay zero taxes for ten years. That’s my goal
#11 Long Term Capital Gains mean stocks and bonds? or Real Estate?
ROTH
Outstanding information!! Thanks for sharing!!
Glad it was helpful!
Something is going on with avail, I love the concept, hopefully they’ll be expanding outside of Denver and Chicago.
I was hoping for a list in the comments 🙁 edit: scroll through the video for the list, saved me 9 minutes
My understanding is that any gains made on GOLD and SILVER are also non taxed.
According to the IRS, Gold and Silver Eagles are US currency but all other forms are technically taxable. Thanks for the comment and thanks for watching!
Wait...does corporate bond payments fall into the dividends category or not?
Corporate bond yield is categorized as interest. Thanks for watching!
Thanks for these info
You're welcome! Thanks for watching!
Interesting about scholarships because my waiver tuition was taxable!
How did that happen?
@@lucakat9262 it’s considered income!
One income that does not get taxed is income that accumulates from interest and possibly capital gains from state municipal bonds funding projects such as new roads, schools and other projects.
Is it true if you don’t use your health saving account you lose that money?
Flexible spending accounts are usually “use it or lose it” but a real HSA is not and can be carried into retirement. Hope that helps - thanks for watching!
You missed one. Tax free loans from life insurance.
Good to know is. Thank you for this.
Glad it was helpful!
Is there some way that life insurance proceeds does not involve someone's death? if there is, I suppose many would be dying to know what that could be?
Some life insurance policies can be used before death to pay for long term care tax free. Thanks for watching!
Those "enormous" standard deductions are soon going to disappear/ sunset (next year) because the poison pill in the 2017 tax bill has them expiring, as it was written by the last administration. (The big tax breaks for large corporations do not expire, only the ones for individuals.)
trump raised the standard deduction to 6000 bux each!NOW ITS LEAVING ..whose fault is this? Clear it up for us...
@@metalrooves3651 Very easy to clear up. Trump's people cared more about corporations and the rich than the normal guy or they wouldn't be disappearing while the rich & corporations will keep on receiving them.
Wrong,the Democrats wouldn’t allow it to become permanent!
Answer this... when has a Democratically run government ever past legislation to reduce taxes? I'd bet big money that the sunset clause for individual tax cuts was required by Democrats to allow passage of legislation. Dems are never looking out for working people... only handouts for votes... prime example is student loan forgiveness, b.s.
Well he'll be back to reup it with increases to address Bidenomics inflation :)
Another big one is housing allowance.
No tax on education assistance - but people paying full tuition are doing so, with after-tax dollars.
This isn’t just. [‘To clarify - certainly glad that there isn’t tax imposed on educational assistance - but there should be parameters in place that funds paid for education are done with pre-tax income.]
Market is down still, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mentioned a 54 year old that made $180k in 5weeks, how do I learn these strategies, my portfolio has been stagnant for months.
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.
Had a question regarding strategy #11... if a married couple were to make 250K in long term capital gains and another 29200 through other means then basically they would be paying only 15% taxes for 155950(250K-94050) which would be 23,392.5. This would effectively be 8.38% taxes. Is that correct OR am i doing something wrong? Ofcourse state taxes would be on top depending upon where one lives but federal would just be 8.38%.
This would be incredible!
Thank you !
You're welcome!
VA disability is also tax free.
So is Civil Service Disability Retirement.
"income"?
How do you report Gifting $18,000 for each of your nephew and niece? Is there a special form or any evidence you need to proof this amount?
No need to report if the amount gifted is less than the annual exclusion which is currently $18,000. Thank you for watching!
If I cash out Short AND long term Crypto holdings at @ $2M - $5M, can you tell me the approximate Tax Rate ?
You should be taxed based on current (I presume Long-Term) capital gains tax rates. This taxation is complicated and will depend on all other sources of income first. Google current capital gains tax rates. Thanks for watching!
Thanks. My advisor at Schwabplan told me that growth of my Roth IRA is taxed. You said it is not.
Hopefully you are missing context from the Schwab advisor. You have to be over 59.5 AND have had A Roth for over 5 years. Once you’ve met that criteria, everything in your Roth, including growth is tax-free.
Does a withdrawal of ROTH IRA funds increase the amount of your Social Security Income that will be taxed?
No, not at this point. Thanks for watching!
I have declared for 2023 tax year $ 1127 of dividends as 100% taxable on my 1040. Was this wrong or was it possibly tax free?
You never mentioned social security/or va disability and from payout of accident.
Can you gift to the same person the maximum for that year every year with out filing a Form 709 Gift Tax Return?
Yes.
As long as you remain below the annual gift exclusion (17,000 for 2024) each year.
Gift tax exclusion in 2024 is $18,000. In 2023 it was $17,000.
I could gift my child cousin $25 if he washes my car ? Looking to for a reward incentive to create good habits .
Well. This was pretty useless.
During the financial settlement negotiation from my divorce, I got my ex-wife to agree to receive her alimony from my pension. Before I retired, I was paying the taxes on the alimony. After I retired, she started paying taxes on the alimony, because the pension money she received was going directly to her. I wish I could have seen her face when she found out. I did hear it in her voice (and the 10 seconds of silence it took to sink in). LOL - FTB
did he mention Personal injury settlements? he may have,,HILARY CLINTN WANTED TO TAX THEM AS INCOME. The reason they arent taxed is because they are replacing something you lost!They may sem like "windfalls" but it would be impossible for anybody to argue the value of the broken back you may have lost in the accident....YOU kind of addressed it but didnt complete the scenario.
Somebody always wants to tax you on anything. It’s your job to stop them.
You forgot unrealized gains on investments. Carried interest by hedge funds, corporate vacation homes, planes and yachts used for business.
tax free municipal binds are both fed and state tax free if they are issued in your state.
However, muni bonds can make SSI taxable…
Of you are putting your money in these bonds then your not very smart at all ! It’s terrible returns
Red states have nice returns on muni.. 💯
@@stormeegarvin7190 not really ‘ I made 26% on my mutual funds just in 2023 !
So you’re wrong
is labor taxable?
If you get paid for that labor, yes.
@@PlanningBeforeInvesting 15 U.S. Code § 17
The labor of a human being is not a commodity or article of commerce.
THANK YOU...
You're welcome and thanks for watching!
What about gifting money to grandkids for college from IBonds
It depends on how you do it, generally not if it is given directly to the school. You would need to check with your accountant. Thanks for watching!
Great point on qualified dividends