“They don’t teach you this in college” They don’t teach this to engineering students or mechanics but I’ve been taught this multiple times while getting my finance degree.
There’s no point of teaching this. Ppl know what to do or can easily research. Ppl just don’t care to apply themselves. When was the last time he we applied a2 + b2 = c2 or anything we learned in school 🤷🏽♂️
@@jamesa2482 everything they don’t teach in college is readily available on TH-cam. Ppl who can’t access college can access TH-cam so why aren’t there more rich ppl 🤔
I don't know exactly how it works but Grant shared a video yesterday where he was talking about how you put all your money into real estate so you are not paying taxes and then you can borrow against the property, the rent pays back the loan, and you get to pocket all the money you borrowed tax free. Definitely something I will be doing more research on in the future.
What you describe him doing here is probably what's referred to as a cash out refinance. Its what Robert Kiyosaki and Ken McKelroy do all the time and they love it. They use the tax free money to pay back their investors and have infinite returns on their investments and still own those investments risk free.
@@DinoDan1987 I have read several of Robert Kiyosaki's books. He is big on structuring deals so that he isn't putting any of his own money into it. Doing it that way is literally an infinite return because you are creating cash flow from nothing.
Yea but isn't rent already taxable? So idk how this method would even work, the money that comes from the rent that will pay for the loan is already taxable meaning he will pay the loan with the rent money that was already taxed so it doesn't make much sense. Unless I'm missing something
He’s talking about a 1031 exchange, transferring the value of the property into a DST (Delaware Statuatory Trust) who then collects investors’ money into an investment fund who then purchases properties in which there are consistent revenue streams: storage units, condos, etc. Grant fails to mention 1031 exchanges are not designed for the everyday homeowner. 1031 exchanges are generally only available to accredited investors with COMMERCIAL real estate properties that exceed $1M. You will not be able to reinvest your equity in your residential home in a 1031 exchange to avoid long term capital gains. With limited exceptions, real estate involved in 1031 exchanges are exclusively business or investment properties. Unless you’re invested into commercial real estate in which the value exceeds $1M, take Grant’s advice with a grain of salt because it will mot apply to the modal real estate owner.
Yeah he always missed any context on what he’s doing is different from what everyone else can do. Also excellent break down and I’m happy you explained it!
They actually do teach you this in college. You just have to take the right classes. Btw, if you make 100k on a house and pay taxes, let's say you pay 38k in taxes. But if you roll it over to another place, yes it won't be taxed. And roll it again and again. However eventually when you do cash out you will pay the taxes then. And it will be the same if not more. Because the more you take the more you'll pay. It's not black and white like he says. People need to pay better attention and do their own due diligence.
He literally said your deferring paying taxes until later. Leaving you more money to invest now. It's pretty smart. Pay later so you have more money to make money now.
I don’t exactly understand this but I have 2 questions…if this is mostly for commercial real estate than what happens to people who work for that property when you transfer the value? 2. If you never touch the money and by transferring, don’t pay taxes, how do you ever see the money? When you finally say ok I’m out and want your return, you have to pay taxes on an even bigger amount Because your property value has been growing and growing. In the end still paying? Idk
The only time we don't pay taxes is if,as individuals,we've loaned our own money to the company-called "owner's loan".So the rent we're paid,is actually our money coming back to us.But when the loan's finished,we start paying taxes
@@1s_that_a_j0j0_reference does he take loans on property as income???Is it word play not saying taxes are deferred??? How does he get income and not pay any taxes???? I'd like to know....
This guy is a fake guru if you want to be successful don’t listen to him I’ll give you someone with real money and the real way to do it, it’s not fun but you gotta live like no one else so later you can live and give like no one else. His name is Dave Ramsey and he doesn’t sell 1000$ courses. His stuff is for free on TH-cam and you can call him and talk to him. I have called him.
So basically what he’s saying is use loans for shit like airplanes real estate g wagons and write it off as a business expense. While your getting monthly income from rental properties for every day expenses. Am I getting this right?
I have a few questions about this. If I avoid paying taxes by doing a 1031, but I still collect rents, wouldn't I have to pay taxes on the passive income from rent? Are the taxes less for rent than just cashing out by selling or do I just not pay taxes on passive income?
You said you get paid 10% of passive income. How do you get that? If your always trading into another deal so you dont touch the money and dont get taxed.
So (i'm not an American,i work under a different set of rules).I'm in Israel.I have a company with my brother.We have a few commercial assets.If we have tennants who pay yus rent,this is taxed.If we buy an asset that is in 'bad shape',we put funds for renovate,the asset apreciate(now worth more),we sell for more than we bought-what you call "cash flow"-we are taxed(that's the reason for us setting a company-pay lower taxes than an individual.
Most people sit and wait around for inspiration , just some rare people get up and get to work. If anybody sees this comment , I may not know you personally ,but I believe in you that you will succeed !👍.
@@benpetrihos5637 perhaps that is now the case…20yrs later…as CIS was my major under the business degree program and if that’s the case unless your bachelors is in that field you’re leaving a lot of folk out
He’s one hell of a business man. But there are millions like him who stay off the radar. His course makes him some money but his main cash is real estate that he has amassed over DECADES. so no, he’s 50 percent truth .
The 1031 program is one of those strange variables that effect property value. The tricky thing about the 1031 is timing is everything and what happens is developers will over pay or go into a bid war because paying 1 mil more for a property is often better than paying taxes on your previous cash out.
@@vitsadelhole If the buildings are owned by the company the rent has to be paid to the company. Somehow he needs to pay himself a wage because company money is not his money !!!! I have a company and when clients pay they pay to the company and not me. That's how it works.
@@keerpuntbelgiekapitalisto5014 yeah he just takes the rent payments as cash in his pocket, rental income has nothing todo with the 1031 exchange or this at all bud
@@vitsadelhole Not in my country Belgium. Here in Belgium it's illegal to take cash payment from people who rent. I didn't know that in the US you could collect cash.
They do teach you this in college, but that's not the issue. Only the best, brightest and the ones who are willing to learn and change themselves accomplish their visions
are there this kind of taxes in every country? sorry for stupid question(for someone) but if i buy house in georgia i dont pay anything extra if i sell something and get money i dont pay anything like only taxes are for electricity water and gas
Same- I say "to-go" and eat at the fastfood restaurant so I don't pay sales tax as food is non-taxable but service is. Probably saved $7k in sales taxes in my lifetime
What’s the point in having all that money that you have 0 access to fr? Like if you go homeless for some random reason, Is it still gonna be making 12Mil but can’t touch a penny to better your life? I might be super wrong about this, trying to learn about it a bit.
Charitable contribution trusts to hold stock. No taxes. You can take distributions to pay bills. Funnel all income through an s corporation and take regular distributions, dont pay medicare or social security taxes. Keep your actual wealth tied up in real estate. Not on the ocean. Rentals. Commercial is preferred. It helps to be born rich as well
Yeah, but this just doesnt apply to 99.5% of the population bc they cant afford the lawyers alone to set it up properly. Though it is a breath of fresh air to see someone else that actually has knowledge of high finance
I hate it when people talk about passive income because there is no passive income. There is your salary and your return on investments. Especially property management is definitely not passive. I own a seperate appartment and can tell you that you have to take car its not just passive. Please stop listening to those coaches making money not because they know everything because they sell pieces to unknown people who take this for granted
That’s exactly why the state tries to tax you, don’t save it, spend it or invest it. Savings are poisonous for economies. Of course let smaller incomes have more savings than very high earners
I have always done better investing in the market. No tenants to worry about. My stock investments don’t tell me they’re not gonna pay the rent because they lost their job.
Yup. Now all I know is just a bunch of useless stuff. Ain't nobody care what's up an owl's anus. That ain't gonna give me millions! I knew I should've dropped out. NEVER STAY IN SCHOOL, CHILDREN...NEVER STAY IN SCHOOL!! Not dropping out is probably my biggest regret in life.
But don’t you have to eventually pay the tax on it? And I if you do delay it until later, is the amount of tax more or less than if you would have paid it after every sale of a pieces of property before purchasing a new one?
The percentage you pay is the same but by deferring tax you can grow your Money faster all this does is give you more capital on the front end to grow but in the end you still pay all the tax just on more money now
@@vitsadelhole hey if i want to learn about this whole thing or 1031 how can i learn like some books if you know or anything that makes me know all this idea and how’s is he do it I know him and always keep watching his videos but I can’t get it and how he avoid this whole thing there are many small details
Nope that’s completely different to this, and in the end this actually results in you paying significantly more tax overall (which isn’t necessarily a bad thing)
“They don’t teach you this in college”
They don’t teach this to engineering students or mechanics but I’ve been taught this multiple times while getting my finance degree.
They should teach it in high school tbh.
@@dallasworkman7673 there’s shouldn’t be any high school lol.
There’s no point of teaching this. Ppl know what to do or can easily research. Ppl just don’t care to apply themselves. When was the last time he we applied a2 + b2 = c2 or anything we learned in school 🤷🏽♂️
Bullshit college is shit
@@jamesa2482 everything they don’t teach in college is readily available on TH-cam. Ppl who can’t access college can access TH-cam so why aren’t there more rich ppl 🤔
Actually they do teach you this in college, just take the right classes
Business and real-estate but its very rare for someone to take it
@@cristalmyth09 finance and economics too…tbh I liked taking classes like that…gives me a better perspective of the business world
@@cristalmyth09 they aren’t teaching you how to bypass taxes in college trust me.
@@BRlGADE_KINGPIN its pretty simple to bypass taxes, people just get mad because they arent business owners
@@BRlGADE_KINGPIN well you technically aren't bypassing them
Vlad will let someone make a point… then repeat it right back like he’s teaching the teacher.
Cool guy.
He's always on point!
you know.. Repetition: mother of All skill
That's actually a strategy to get people talking more and going deeper into the topic. People love talking about themselves.
My best friend does this to me all the time.
It’s a conversation tactic, similar to mirroring it helps you show understanding and connect better with the individual.
I don't know exactly how it works but Grant shared a video yesterday where he was talking about how you put all your money into real estate so you are not paying taxes and then you can borrow against the property, the rent pays back the loan, and you get to pocket all the money you borrowed tax free. Definitely something I will be doing more research on in the future.
What you describe him doing here is probably what's referred to as a cash out refinance. Its what Robert Kiyosaki and Ken McKelroy do all the time and they love it. They use the tax free money to pay back their investors and have infinite returns on their investments and still own those investments risk free.
@@DinoDan1987 I have read several of Robert Kiyosaki's books. He is big on structuring deals so that he isn't putting any of his own money into it. Doing it that way is literally an infinite return because you are creating cash flow from nothing.
@@JarinXeno Wow I need to get in on this
The amount of scum beaming from this guy is unbelievable.
Yea but isn't rent already taxable? So idk how this method would even work, the money that comes from the rent that will pay for the loan is already taxable meaning he will pay the loan with the rent money that was already taxed so it doesn't make much sense. Unless I'm missing something
It’s called a 1031 exchange
Thanks for being able to read
More than transferring gains, but claiming passive income.
He’s talking about a 1031 exchange, transferring the value of the property into a DST (Delaware Statuatory Trust) who then collects investors’ money into an investment fund who then purchases properties in which there are consistent revenue streams: storage units, condos, etc.
Grant fails to mention 1031 exchanges are not designed for the everyday homeowner. 1031 exchanges are generally only available to accredited investors with COMMERCIAL real estate properties that exceed $1M.
You will not be able to reinvest your equity in your residential home in a 1031 exchange to avoid long term capital gains. With limited exceptions, real estate involved in 1031 exchanges are exclusively business or investment properties.
Unless you’re invested into commercial real estate in which the value exceeds $1M, take Grant’s advice with a grain of salt because it will mot apply to the modal real estate owner.
Yeah he always missed any context on what he’s doing is different from what everyone else can do. Also excellent break down and I’m happy you explained it!
Is this the whole video tho?
🤯🤯🤯
@@pit1513 dude’s a scammer look him up
Pual grant lets work today together ❤
Keeping the main thing the main thing... I'm staying in my lane and going faster. Thanks GC!
The thing is though, if you never have the money, how are we meant to pay for bills and food?
This doesnt apply to the rental income
I’m too broke to understand this mindset 😂
It's easy
Yeah I don’t get it either lol
Ben Mallah does the same thing, and all smart real estate investors. Grant on point of course.
They actually do teach you this in college. You just have to take the right classes.
Btw, if you make 100k on a house and pay taxes, let's say you pay 38k in taxes. But if you roll it over to another place, yes it won't be taxed. And roll it again and again. However eventually when you do cash out you will pay the taxes then. And it will be the same if not more. Because the more you take the more you'll pay.
It's not black and white like he says. People need to pay better attention and do their own due diligence.
Just never pull the money out - take loans on it instead and use your income from the property to pay down the loan.
I’ve taken many different business courses in college, they don’t teach this.
@@BRlGADE_KINGPIN did you take any tax courses? Cause my tax courses taught me how taxes work
Yeah for have to take a business minor at the least. Otherwise you are screwed.
He literally said your deferring paying taxes until later. Leaving you more money to invest now. It's pretty smart. Pay later so you have more money to make money now.
I don’t exactly understand this but I have 2 questions…if this is mostly for commercial real estate than what happens to people who work for that property when you transfer the value? 2. If you never touch the money and by transferring, don’t pay taxes, how do you ever see the money? When you finally say ok I’m out and want your return, you have to pay taxes on an even bigger amount Because your property value has been growing and growing. In the end still paying? Idk
My takeaway: don’t touch the money if you want to put your money to work after a real estate deal. Just invest it right back into the next deal.
The only time we don't pay taxes is if,as individuals,we've loaned our own money to the company-called "owner's loan".So the rent we're paid,is actually our money coming back to us.But when the loan's finished,we start paying taxes
Passive income is taxable...I understand equity increase, and purchasing additional property.
Anytime you get income it's taxable.
What kind of property goes from 350k to 12 million dollars with no renovations??
A property that has or is starting to have other things built around it that makes it look more attractive to the public eye
Avoiding bankruptcy one real estate deal at a time
Thanks uncle G ❤️
I heard this once... 3 years ago when I was starting my accounting degree. Then took a bazillion courses on this.
He doesn't pay cap gains but he pays taxes on the ordinary income
Whaaaat???
@@chris-cy5ed if he's does a 1031 exchange
what hes sayn right here is a great move and def good tactics
Thanks i never knew bless up for you to share your knowledge thanks
This guy is a fast talker taking advantage of stupid people. He's not telling the entire story on cap gains in 1031 exchanges vs passive income.
This is a 60 second clip. Those concepts take a while to explain. And they're kind of unrelated but tangential.
@@1s_that_a_j0j0_reference does he take loans on property as income???Is it word play not saying taxes are deferred??? How does he get income and not pay any taxes???? I'd like to know....
@@1s_that_a_j0j0_reference then you have to buy his course right? He’s such a scammy guy
This guy is a fake guru if you want to be successful don’t listen to him I’ll give you someone with real money and the real way to do it, it’s not fun but you gotta live like no one else so later you can live and give like no one else. His name is Dave Ramsey and he doesn’t sell 1000$ courses. His stuff is for free on TH-cam and you can call him and talk to him. I have called him.
@@fuse911 yeah, I agree if someone is trying to sell you a course run!
It cut off at the juicy part! Now I gotta find and watch the full video because I gotta know!
Does anyone have link to full interview
Wanna know why the country is in trouble? Listen to this guy.
So basically what he’s saying is use loans for shit like airplanes real estate g wagons and write it off as a business expense. While your getting monthly income from rental properties for every day expenses. Am I getting this right?
What interview is this? Want to find the full recording
Im tired of the line "they don't teach you this in college" lol
They actually do teach you this in college if you take accounting classes. Lol
They may briefly touch on the subject while 99% of the time teaching you stuff you will never use only to charge you $100,000
@@toddhurley5629 you can't read or do math, you will struggle with taxes.
@Shon East college was not created by the banks, some of the colleges are older than many of the banks people go to.
Awsome advice...I know Real estate Investers can make well over 80% in returns...so 10-8% pocket is awsome
Does anyone know where I can find this full interview???
I have a few questions about this. If I avoid paying taxes by doing a 1031, but I still collect rents, wouldn't I have to pay taxes on the passive income from rent? Are the taxes less for rent than just cashing out by selling or do I just not pay taxes on passive income?
Ive wondered this to and still dont know
You said you get paid 10% of passive income. How do you get that? If your always trading into another deal so you dont touch the money and dont get taxed.
Information is a key for success.
So (i'm not an American,i work under a different set of rules).I'm in Israel.I have a company with my brother.We have a few commercial assets.If we have tennants who pay yus rent,this is taxed.If we buy an asset that is in 'bad shape',we put funds for renovate,the asset apreciate(now worth more),we sell for more than we bought-what you call "cash flow"-we are taxed(that's the reason for us setting a company-pay lower taxes than an individual.
This is definitely evading the IRS in a massive way.
Most people sit and wait around for inspiration
, just some rare people get up and get to work.
If anybody sees this comment ,
I may not know you personally ,but I believe in you that you will succeed !👍.
I would like to be clear: this is absolutely taught in college.
Scammers always say that
What major? I need to go back. I majored in computer info systems
@@pit1513 any major in the business school
@@benpetrihos5637 perhaps that is now the case…20yrs later…as CIS was my major under the business degree program and if that’s the case unless your bachelors is in that field you’re leaving a lot of folk out
They teach that within a year but you can do a google search “how the wealthy don’t get taxed”
He’s one hell of a business man. But there are millions like him who stay off the radar. His course makes him some money but his main cash is real estate that he has amassed over DECADES. so no, he’s 50 percent truth .
You can spend it.
You borrow against the property to spend it.
Borrowing is a loan. And not income
The 1031 program is one of those strange variables that effect property value. The tricky thing about the 1031 is timing is everything and what happens is developers will over pay or go into a bid war because paying 1 mil more for a property is often better than paying taxes on your previous cash out.
That sounds accurate.
So, how do you pay for food, clothing, power bills, living expenses !!!!
With the rent payments???
@@vitsadelhole
If the buildings are owned by the company the rent has to be paid to the company.
Somehow he needs to pay himself a wage because company money is not his money !!!!
I have a company and when clients pay they pay to the company and not me.
That's how it works.
@@keerpuntbelgiekapitalisto5014 yeah he just takes the rent payments as cash in his pocket, rental income has nothing todo with the 1031 exchange or this at all bud
@@vitsadelhole
Not in my country Belgium.
Here in Belgium it's illegal to take cash payment from people who rent.
I didn't know that in the US you could collect cash.
I learn so much here- thank u!!
“They don’t teach you this in college”
*me who has taxation as a core module for the next three years*🤦🏻♂️
Me who's not a clown paying thousands of dollars for something I can learn from TH-cam for free.
@@RossLemon right. Fkin imagine.
They do teach you this in college, but that's not the issue. Only the best, brightest and the ones who are willing to learn and change themselves accomplish their visions
@@RossLemon lmao americans taking an L. In europe you go to university or college for almost nothing :)
@@RossLemon you’re a clown.
Vlad is such a cop bro 😂😂 this video doesn’t explain it but still
I don’t mind paying tax. Most of it goes on public services to better peoples lives whether its new roads or Mick’s methadone. It all helps.
are there this kind of taxes in every country? sorry for stupid question(for someone) but if i buy house in georgia i dont pay anything extra if i sell something and get money i dont pay anything like only taxes are for electricity water and gas
Surely what is paid out in passive income is taxable ! Would be here in the U.K. , unless what himself is just the equivalent of basic income
Every single US working citizen must pay taxes no matter how rich you are. No one should get away with it!!!!!
Same- I say "to-go" and eat at the fastfood restaurant so I don't pay sales tax as food is non-taxable but service is. Probably saved $7k in sales taxes in my lifetime
So how do you pay rent, pay the lease, put gas in your car, buy stuff you need to survive if you never touch the money.
You sell £12.000 seminars to delusional idiots on the internet, which is the whole point in the first place.
Literally people like this are the reason why I have to pay so much taxes
"Sir this is McDonalds drive thru"
What’s the point in having all that money that you have 0 access to fr? Like if you go homeless for some random reason, Is it still gonna be making 12Mil but can’t touch a penny to better your life? I might be super wrong about this, trying to learn about it a bit.
There is and will always be work to do and someone has to do it.
And this is why the middle class keeps getting fucked . Take all the loop holes out so EVERYONE pays their fair share.
Charitable contribution trusts to hold stock. No taxes. You can take distributions to pay bills. Funnel all income through an s corporation and take regular distributions, dont pay medicare or social security taxes. Keep your actual wealth tied up in real estate. Not on the ocean. Rentals. Commercial is preferred. It helps to be born rich as well
Yeah, but this just doesnt apply to 99.5% of the population bc they cant afford the lawyers alone to set it up properly. Though it is a breath of fresh air to see someone else that actually has knowledge of high finance
Depreciation is the best!
So what exactly do you live on and use for free cash flow??
I hate it when people talk about passive income because there is no passive income. There is your salary and your return on investments. Especially property management is definitely not passive. I own a seperate appartment and can tell you that you have to take car its not just passive. Please stop listening to those coaches making money not because they know everything because they sell pieces to unknown people who take this for granted
Would that happen to be VLad TV interviewing this guy? He's everywhere man.
How does he buy stuff if he can’t touch the money ?
Use the infrastructure society provides to get yourself rich and once you are rich avoid paying to maintain that infrastructure.
Actually in the end your tax bill with a 1031 exchange should be much much higher than had you not used it
You can spend it. Just pull cash out of the property without selling it.
If the property goes up in value he can also do a cash out refinance and take that money tax free.
That’s exactly why the state tries to tax you, don’t save it, spend it or invest it. Savings are poisonous for economies. Of course let smaller incomes have more savings than very high earners
If rich people paid the same percentage a low income person had to pay then, the world would be a much different place
He doesn't talk about a downturn in the real estate market. He assumes prices will continue to rise. That ain't reality.
You're right, ten years back then the house market goes down in LA and a lot if folks bankrupted
But what about property taxes?
I have always done better investing in the market. No tenants to worry about. My stock investments don’t tell me they’re not gonna pay the rent because they lost their job.
I love when these people (grant, Gary v, Tai Lopez) say they don't teach u this in college. No, u just didn't make it that far
How’s English 101 treating ya?
We need a flat tax no deductions.
So where does the passive income come from?
Rent !!!!!!! Wtf are u dumb
So how the money being paid to you. If its in realestate.
That's how that works got it thank you
It is sad we do not have more in-depth life lessons as a class.
Yup. Now all I know is just a bunch of useless stuff. Ain't nobody care what's up an owl's anus. That ain't gonna give me millions! I knew I should've dropped out. NEVER STAY IN SCHOOL, CHILDREN...NEVER STAY IN SCHOOL!! Not dropping out is probably my biggest regret in life.
Grant Cardone doesn't touch the money so he doesn't have his money stolen by the IRS👏🏻👌🏻🤝🏻👊🏻👏🏻👏🏻👏🏻🤝🏻
Can someone explain to me like I'm stupid please? I want to understand this.
how do you eat? and buy your things?
He never touched the money but he "trades into another deal", can someone help me explain that better..thanks!
But don’t you have to eventually pay the tax on it?
And I if you do delay it until later, is the amount of tax more or less than if you would have paid it after every sale of a pieces of property before purchasing a new one?
The percentage you pay is the same but by deferring tax you can grow your
Money faster all this does is give you more capital on the front end to grow but in the end you still pay all the tax just on more money now
Isn’t this different than paying income tax? As there are different types of taxation(property, income, etc)
But dont you pay tax on your increased passive income?
Question- dont they still tax the passive income from the rent?
Ya but way less
Wayyyyyyyyyyyyyyyy lesssss
I would love to see this guy have a conversation with Gary vee lol
They'd talk over each other about the same exact view.
What about property taxes?
Can i download this i cant understand but wanna learn this gold like words
So what people pay in rent is non taxable but the equity if you dont touch it your good
Wow amazing advice
So how do you make passive income out of owning houses.
That’s unrelated from 1031
@@vitsadelhole hey if i want to learn about this whole thing or 1031 how can i learn like some books if you know or anything that makes me know all this idea and how’s is he do it I know him and always keep watching his videos but I can’t get it and how he avoid this whole thing there are many small details
Vlad asking questions = someone is watching you
And that's no how the IRS works. They're not there to monitor u... U can choose not to hold money but you still made money and that you have to report
I now know what they meant by taxing unrealized gains. You need to pay your taxes.
Nope that’s completely different to this, and in the end this actually results in you paying significantly more tax overall (which isn’t necessarily a bad thing)
This it definitely tax evasion
Wow this was the missing price I needed to understanding how to leverage debt for money tax free
1031. Best way to avoid paying for capital gains.
And that's kids how rich get away with taxes, they do not do any wrong thing, just smart things
How did it all start, it is easy to make money with money
irs is like: 👀
No taxes .. no community to care for others ,roads etc .. pay taxes due to what you earn