Its simple. Don't earn money. You could of course accept payment in goods; rabbits, potatoes, whatever. Really difficult for government to figure out the taxes due on that.
Great video with only one warning to those looking to pay $0 taxes. I have been self employed since 2005 and have never looked back. And I learned early on that when I wrote everything off, did all the deductions I could and wiped out any and all tax obligations…it then became almost impossible to borrow money or buy a house because I wasn’t showing a profit. (It was all expensed and deducted out) Since that time, I make sure I don’t completely write everything off or deduct absolutely everything WHEN I know I’m going to be applying for some sort of large credit. If a business is a side hustle this is less of a concern because you have your income but still, you’re going to need to show creditors there’s money left over to pay for whatever you’re borrowing for.
Keep in mind a good banker should add back in things like depreciation loss, since this is a "paper loss" and is NOT $$ spent, therefore increasing real profits. And if you run good books, and show actual cash in vs. real cash expenses, once again, they will see you are in good financial shape. The key is to establish a good relationship with your banker (and commercial bankers are a lot for savvy than residential bankers) . Great video
WRONG...!!! There are many LARGE companies that have ZERO REVENUE, clearly ZERO PROFITS...and hundreds of employees...therefore they write off ONLY EXPENSES !
Also keep in mind that if you follow that strategy, you are at much higher risk of audit, esp. if you make less than $400k/yr. Why? Because at that income level, the IRS knows you can't afford expensive lawyers so it will be much easier to audit you. In fact, I have been told by the IRS agent who has audited me a number of times that they have been told to stay away from high earners. Re: audits - audits are actually a good thing (although they are a huge time sink) as long as you are doing everything legal and have all the documentation to prove it. For me, they are a sign that you are actually expensing the max possible amount. I've been audited 3 times and every time I'm told I'm the best prepared person ever.... There's always something you miss, last time it was an unprovable mileage deduction which cost me $600.....
I think there's a problem with those deductions in the rent example. Yes you have 9K deductions for your home office space, but this doesn't translate into 9K savings in taxes. It means that 9K of your business income is not taxed, but you can't subtract that from your taxes, only from the income.
Was going to say the same. Sure, it reduces taxable income by 9k, but the actual tax benefit will dependent on their nominal rate. Also, that space has to be used regularly and exclusively for the business to qualify for the deduction.
If you deduct all the way down to 0 this is one of the audit risk red flags .. also when you have too many deductions on schedule C , meals , home office expense it also raises the chances of an audit ..if you continuously report negative or 0 the irs might consider it a hobby and not a profitable business .. I’m an Accountant ..
The cheque i cut the government on my properties and investments are seriously eating into my project bufgets. It would hurt less if I received value for my taxes but healthcare still isn't cheap, my children's college tuition costs a small fortune, and my husband and I still have retirement to plan for. Right now the only solutioniwe see is to scale up my profits and with our limited knowledge, we are at a loss on how to do that.
Professionals could make a really big difference in investing, and I think everyone should have one. There are aspects of market trend that is difficult for the untrained eyes to see. I have made more than 350% through my estateplanner(fa) by alternative investing. The portfolio comes with perks as well.
One of my goals is to employ the service of an asset-manager this year. I've seen some off social media but wasn't able to get a response. Could you recommend one?
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.
You don't save $750 or $9000 in taxes, you're just lowering the taxable amount. So on a 22% bracket tax on the 9k is about $1980 in tax savings for the year or $165/month.
Although most people find taxes to be a boring topic, I always get excited to learn more about them. As you showed here, there are SO many different ways to save yourself money on your taxes every year. Since I just started my own business, I am excited to start to write off my business expenses against my profits for the year to hopefully pay $0 in taxes for the next few years at least. This was an excellent video, Vincent! Great job on it.
I’m just excited to utilize the tools the wealthy use to growth and sustain their wealth, taxes being a massive part of that. I love talking and strategizing on taxes.
My favorite part of the video is when you describe an out of work individual selling 40k worth of stock for the year and not paying taxes as if it’s a work around paying taxes - as if income tax wasn’t already taken on the money he earned before it was used to purchase stocks
He also neglected to mention that there will likely be state taxes on that 40k, depending on the specific state you live in, and in most cases the rate at which you are taxed is the same as whatever the states income tax is.
So, imagine if we could rock a society with low taxes, cheap staples, and everyone feeling a little less “meh” about their financial situation. Sounds like a fairy tale, right? But hold on-this isn’t just wishful thinking. We can totally make it happen with some savvy moves and a sprinkle of community spirit.
Exactly. I work from home, but there is no way for me to save on taxes as a result because my deductions would be far less than the threshhold required, which is tied to the standard deduction amount.
@Daniel Harris Thanks for the question, Daniel! I don't. My complete itemized write offs do not yet exceed the standard deduction. While I forget the exact number, I believe there is also a minimum requirement of around $3,000 or so of business expenses before one qualifies for an itemized deduction, or it is just some amount above the standard deduction; I don't recall. Since my total home business expenses do not come close to that amount, nor do I yet benefit from itemizing, I just take the standard deduction. Now, once my wife and I purchase a new home compared to our cheap row home, and my investments increase, I believe I will benefit from doing itemized deductions, but we are probably 3-5 years away from that.
Great video. Inspires me to rethink my small business. One observation. If you expense 25% of your living space and $3,000 rent, you don’t save the full $750 a month in taxes. You only save the taxes on $750. At the 22% bracket that would be $165 a month or$1980 a year, not $9,000 a year. Still worth it!
It is super important to point out that wealth and income are not the same thing! Someone who makes a million dollars in a year will pay a 37% marginal tax rate whereas somebody who has a million dollars worth of wealth will pay no income tax because they didn't earn income.
Instead of sending taxes skyrocketing, why not give everyone a little help with the essentials? Imagine subsidized food prices that keep your wallet happy without draining your paycheck. Yes, please!
@PoisonelleMisty4311 in the US we do have subsidized groceries. Farmers are paid certain incentives in order to keep grocery prices low and food production on US soil. If we didn't have these subsidies grocery prices would soar or we would import a lot more food.
@@Scott-by9ks "Thank you for sharing this. It raises some important questions about the balance between supporting local agriculture and ensuring affordable food access for everyone."
11:14 GREAT outline. You forgot to mention qualified dividend income also falls into that "no tax if less than $44k" limit. Unfortunately, most Americans lack the discipline to do 1-3 and would be complete disasters if they even attempted 4 or 5 since they also do not understand or know how to evaluate and judge risk.
In my household, I am self employed and my wife works at a hospital. She pays for our food and household items and I pay all the bills on 4 properties. I also get social security now, so I make more than she does. She pays income taxes each week and I show a huge loss each year. We always get nice tax refunds.
For 2023, it's difficult to make sure about unambiguous expectations for the real estate market is on the grounds that it's not yet clear how rapidly or how much the Central bank can cut down expansion and getting costs without failing purchaser interest for all that from homes to vehicles.
There could be no more prominent opportunity than giving back the way in to an airbnb condo knowing another person needs to keep up with it. On the off chance that you appreciate revamping and adorning, maybe house buying is for you. For my purposes, property is another way we get secured and beyond remarkable cases I'd prefer put resources into Stocks/REITS to get openness to land and other speculation potential open doors.
Given current slump pressures, it is unlikely that the stock will yield huge returns in the near term. In any case, it very well may be a sensible endeavor an entryway. I will screen monetary circumstances and consider purchasing when there is an improvement in the critical money related pointers, any thought which stocks this may be, I just sold my home in the Boca Grande district and I'm expecting to repay a solitary sum into the monetary trade before stocks return quickly, is this OK timing to buy or no?
Encourage jobs that don’t keep people locked up in cubicles. “Hey boss, can I work my hours around my kid’s soccer games?” Sure! Flexibility makes everyone a little happier and a lot more productive.
1. Should probably mention depreciation recapture for section 1250 properties. 2. Home office expense also needs to be prorated by hours used by week/day/month to calculate the yearly deduction, not just the sq/feet. 3. There's also SEP IRA's, which has a contribution limit of up to 20% of profit. I have a MS in Taxation and an IRS Enrolled agent.
If we pay taxes on our money, wtf do we pay taxes on everything else? We literally started a war due to over taxing and now we just bend over and take it.
Most of the stuff mentioned is simple business accounting, like subtracting actual business expenses from gross revenue and only paying taxes on net profit. There's a complete misrepresentation on the "deduction reduction" with the rent deduction example (basically, business use of your home). It says it "saving $750 in taxes per month" and "a savings of $9000 per year in taxes." No. It reduces your taxable income by those amounts, and the actual tax savings is likely only about 25% of those figures for a typical person. There's the example of getting 3% interest on a portfolio loan and investing it to get 8% in the market. Yeah, except that portfolio loans start at closer 7% and go into the 14% range. Depreciation recapture was conveniently ignored when discussing real estate rental income.
Income Tax is illegal. The word income isn't defined in the law. It isn't required by law. The law states that it is suggested. Not mandatory. The law also expired at the end of the war. That was never changed. Congress looked into it some time ago and they said there was only 3 classes of citizens that had to pay it. 1. Citizens of Washington DC. 2. Federal Employees. 3. cooperations. At that time a rich businessman put out a bounty for anyone who could prove that it was legal. To my knowledge, this money has never been claimed ay anyone.
This is my first time watching one of your videos and most deff subscribing, straight to it no running around in circles and making things more difficult than they should be good work man fr
Perhaps I am mistaken, but as I remember it you have State Taxes (for most states) that don't make a distinction between capital gains (Long or Short-term) and income. In other words: Whereas federally if you make under the ~$44,000 threshold on Long-term you'll pay the federal government 0%, on the individual state level you will still be required to pay whatever % of tax is required by your state for their individual "income" tax (again most don't make a distinction between capital gains [Long or Short-term] and other income). So for tip number 4 it is important to remember that whereas federally you may not be taxed for Long-term capital gains under ~$44,000, your state tax will likely be different.
Vincent! Seriously this is the best TH-cam video I have ever seen and I’m pretty sure I’ve watched hundreds of thousands of TH-cam videos. It’s all I did during Covid. The way you present this information is so easy to understand. Thank you so much!! ❤️❤️
Overall, not a bad video (I am an EA studying for CPA), however there is a small correction. You cannot take out the whole mortgage payments. Only interest part of it deductible, which goes down year by year. And the concept is very simple: if you don't pay taxes on borrowed money because it is not an income, you cannot take deduction when you pay it back!
@@jackchen5290 that’s not a right thing to do! Even for property investors! If you recognized loan proceeds as income when you received it (which I doubt) then you can deduct the whole amount of payments. The correct way is only deduct the interest portion of payments which is reported in box 1, form 1098. You are welcome 😀
Your first example "page 159" I'm guessing section 162 ordinary and necessary Busniess expenses, will only work to offset income related to a Busniess. That doesn't work for W-2 employees or for W-2 income. If you do have 1099 income you might be subject to SE tax and estimated payments. Also, you can't use 1099 expenses to offset W-2 income. The rent concept is good but only works for 1099 income and if you own the property you will be subject to recapture on the home office deduction if you sell it. The rental income section is problematic. Again, this only works for 1099 income unless you are one of the very very few people who use Sch. A. You don't deduct your mortgage payments you only deduct the interest. Depreciation taken on fixed assets is subject to recapture if sold. Not a huge deal because of 1031 but you didn't mention that. Infact you advised against using a 1031 transaction by insted leveraging the property. Also, personal net operating losses are subject to limitations if the taxpayer is not a real estate professional, sec. 469. Most of the information you are giving is not applicable to most people and some of it isn't even applicable to the rich. I recommend that people talk to a tax professional if they have a complex tax situation.
For my small business, I was told to take depreciation. It did help quite a bit on the taxes I owed each year, which did allow me to invest more into it. What I was never told when I came closer to retirement, and was ready to sell my business, was that all of that depreciation I had for all of those years is now due to the IRS when you sell it in the form of capital gains tax. Nobody ever tells you that. However, I was told, if you sell it you can do a 1031 exchange. Which allows you to sell your business, then go out and buy a like kind business for same amount or higher, and you won’t have to pay the capital gains tax, But that too, is only a deferment. There is another thing called the Delaware State Trust (DST), but it has pros and cons as well, but is something to consider. Besides, retirement is what I had in mind, not start another business. I was told one thing to do is just keep your existing business, and die with it, which is what a lot said was their strategy, and AIUI, you and your heirs won’t have to pay the capital gains tax. At present I believe that is up to 11 million for singles, or 22 million for couples. These laws change all of the time, so you really need to find somebody that specializes in this.
Great video, but I think you really should have broken down what you meant by "mortgage fees" since it's really just interest, property tax, and home owner's insurance.
You made a mistake when talking about deducting the portion of rent that goes to your office. You don’t get $750 off your taxes, you get $750 of your taxable income. Very big difference.
Dude this is amazing value in this video. Thank you for reading the tax code and making it so simple and easy to understand! Time for the people to use the same tactics as the rich
Bear in mind that taxes are membership fees to live in this country. They pay for safe roads, clean air, clean water, disaster relief, public schools (yes, states get lots of federal money for education), our court system, state dept., rule of law etc etc. That being said, we lose over $500 billion a year in tax revenue to legalized tax evasion (called Avoidance) by corporations and the ultra wealthy (that's just what can be tracked). We are owed billions more from shady accounting (why else cut the IRS funding - complex tax return review costs money - cut the budget to make sure the only audits are done on the middle class) So to really lower our taxes, we need to get the free riders who rely on us paying taxes (so they don't have to), to start paying the taxes they should be paying already. Stop the PR that taxes are a burden. They are not. They are payment for a return in services. If we're not getting what we pay for, we should ask why. If those pesky corps would stop lobbying for massive (debt funded no less) tax cut for themselves, our taxes could actually be less. Just saying.
The question is how to convert your salary into the investment funnel without double taxation. you pay taxes once it's earned, then buy stocks etc and get taxed again once you sell for gains. How do I skip the first tax stage?
Supposedly when the income tax came out it was only for federal employees or anyone who made money on federal land/equipment/ ect... then at some point everyone got charged it. Edit* I already have been using freetax usa for years. I didn't like paying money to the monopoly of turbo tax. Haven't had an issue filing with them in over 5 years.
Interesting! Thanks for sharing that tidbit :) Do you have any other fun facts regarding taxes? And that's great to hear about freetaxusa - 100% agreed It's a great platform
@@VincentChan well just that i file early every year because i don't want someone else to file them for me! Scammers are everywhere. There is a reason they issue those pins. Tax return fruad is on the rise fast!! Good video btw. Your editing is great and the face overlays are funny. Haha. This year will be my most complicated filing... buying property, taking out money from a 401k, selling an insurance policy gifted to me, american opportunity tax credit, blah. I can't figure out how to report the 401k withdrawal though. I don't think Vangaurd withheld enough. Looks like they only held 10%. O yea... that's pretty badass getting sponsored by a company like that. You have the mentality of someone i met with a $2M+ house near Boulder. They told me all about mr money mustache man, deducting home offices, 401k early withdrawals for property... if you aren't putting money in things that grow you aren't getting ahead.
@@VincentChan Our taxes have gotten much more complicated so we started working with an accountant. This professional actually caused us to pay more in taxes than Turbo tax but we corrected him and he agreed with us after. Does Freetax USA work for people with complex situations? 4 LLCs and a S corp.
if you can read all that?.. i have a challenge for you. look thru all the labor tax laws. you will not find a single law anywhere on the books that says labor tax is mandatory. in fact it says it is voluntary and has always supposed to have been. before labor tax (1913) we still had roads, schools, fire departments etc. then ask yourself how govt gets away with terrorizing and robbing folks for not paying labor tax. taxation is theft. period.
I understand the concept of not paying taxes on existing wealth (Assets) by playing a shell game but how is one who draws a substantial INCOME able to reduce that to a point where they are only showing an amount equivalent to the standard deduction. How are they able to pay for an auto loan / mortgage / insurances / medical and other large PERSONAL expenses without showing an income to match?
Fantastic video but some observations: When you work a job the "usual tax process" goes like this: Your employer withholds your taxes and pays them on your behalf--you get the rest. You never see your "pre tax" paycheck--you only ever see your post tax paycheck... this is 100% done to prevent tax revolts (and it worked). Also: Fiat currency is debt based. There is no such thing as "real money"--it's all debt. Your bank account is debt. That dollar bill is a debt voucher. The entire system is debt based and Rich people know this.
Not paying taxes is a dangerous route. However, among everything you said this the one I liked because it suits me: 401k, business 401k, 403B, Traditional IRA, HSA, and 457B.
You read the entire tax code and didn't notice that they are only taxing U.S. citizens and residents. Well... I live in Washington state, not the U.S. and I wasn't born in the U.S. either. The U.S. is a federal corporation located in Washington DC. Were you born there?? NO!?? Then you are more than likely not a U.S. citizen or resident. You're welcome! 🎉
It is a constitutional duty for congress to pass a reasonable and responsible budget, every year. They have failed to do that for over 23 years now.. Anyone advocating, teaching, or promoting a person's labor and time, be taxed by the same.. or ensuring fear for noncompliance or protest.. is enabling the enslaved of society to tyrayrannical and incompetent governance!! Incidently, it is also a constitutional duty of the citizenry, for such an enslaved society, to overthrow such unconstitutional tyranny.. especially from corrupt unelected civilian bearucracies. Accountants and financial advisors should be ashamed, for promoting such enslavement, for their own profits.
The only other flaw is you don't pay long term capital gains tax based on how much long term capital gains you recognize each year, it's based on income. If your adjusted gross income is 50k/yr, you're going to be taxed 15% on all long term capital gains.
If you are married filing jointly your long-term capital gains starts at above $89,250 for 2023, not bad. And anything over that amount is taxed at only 15% upto the $553,850, which doesn't really matter because I don't expect to ever realistically make that much.
The IRS is not part of the United States government, heck THE bankrupt UNITED STATES is a government service corporation. But the Constitution clearly states that only Congress can collect taxes; Not the IRS! Plus, If you agree and sign that voluntary agreement, then you are held to their [IRS] contract. Which you stated to pay taxes! And not to forget that the Constitution states that only gold and silver can be made as payment of debt. Learn the law, not policy….
Ok first point when you work you earn pre-tax income is not accurate. You TRADE your time for work. This is not taxable. Where they try to get you is if you let them PAY you in USA Currency. That is taxable. If you get instead in silver or gold it is not taxable at all. So knowing the LAW is the key.
I majored in finance and worked at a large CPA firm. I guess I never considered this as news. But I see here that many in society don't have much of an understanding. Glad that you are doing this. Also you should include how many jobs and value to the dollar are created by these people (businesses) through employment and innovation. A number that could not be matched if the Government took all this money in Income or Capital gains taxes. The thought that any Government could do better with this additional revenue is as simple as looking at the Department of Education. Now that we have this department, we've literally not improved on our basic scores for K -12 while spending more and more each year. Then another campaign is launched to tell Americans that things would be better if this department's budget was increased. Now look at the size of this behemoth department. R.O.I is terrible.
Income tax is unconstitutional. According to the tax laws and their definitions of the words they use, income tax is VOLUNTARY unless you live or work in Washington D.C..
The example of rent doesn’t make any sense. So 25% of a $3,000/mo qualifies you for a $750 write off but that doesn’t save you $750. It saves $750 multiplied by whatever marginal tax rate you’re in
Let's go back to the stock sale for ZERO capital gain tax. I've tried doing this same calculation on a simple website calculator and even with an income of $37,000 it showed paying just over $1,000 taxes for the capital gain. What am I missing here. Anyone else find no tax on a $35,000 long term capital gain?
Thank you so much for all your advice. Finally, I put it to use and slowly is paying off and I’m getting in return which you said, which is the greatest commodity of all times which is time itself and not paying taxes and now I’m trying to just work with other people and become the entrepreneur that I always wanted to be. Thank you again
Wealth is inflation. We pay all the taxes, When you buy anything, you pay the taxes of the company that produced the product. You also pay every employee's taxes, The people who transport and sell it. When you tax the rich, you just tax yourself. They got rich because you paid everything for them.
There are laws. You think some people pay taxes because we want to?? NO. For for some people they pay taxes because its the law. If they don't then they'll go to prison.
Lol. He didn't read the tax code, if he did he'd be telling you that the tax is levied upon Nonresident aliens and foreign persons. 26 CFR § 601.104 Collection functions. (a) Collection methods (2) Withholding of tax at source. Withholding at the source of income payments is an important method used in collecting taxes. For example, in the case of wage earners, the income tax is collected in large part through the withholding by employers of taxes on wages paid to their employees. The tax withheld at the source on wages is applied as a credit in payment of the individual's income tax liability for the taxable year. In no case does withholding of the tax relieve an individual from the duty of filing a return otherwise required by law. The chief means of collecting the income tax due from nonresident alien individuals and foreign corporations having United States source gross income which is not effectively connected with the conduct of a trade or business in the United States is the withholding of the tax by the persons paying or remitting the income to the recipients. The tax withheld is allowed as a credit in payment of the tax imposed on such nonresident alien individuals and foreign corporations.
For us dependent on W2 income, take full advantage of your company’s benefits. At some companies, you can effectively get another 50% pay by maxing all the benefits.
Huh? At 9:29 he refers to 'mortgage fees' but then describes it was $800/month towards the mortgage... that's not 'fees' - sounds like he means repaying the capital, which is NOT tax deductable ! If he calls repayment of principle "fees" then I'm not sure we can believe anything else he claims....and then he refers to depreciation of the property - you can only depreciate 3.6% based on the building, NOT the land, and the land is the most valuable part. Further, when you come to sell, having written the property down, your capital gain will then be a lot higher (though CGT is lower than income tax). However, the big flaw is him claiming that paying off the principle is tax deductible - that's just nonsense !
Actually, truth be told, federal income tax was started during world war 2 so as to offset the cost of ammunition etc, it was supposed to end after the war......🤔🤔🤔it has not. And it was never ratified into law to continue after the war, so the real question should be, why are we paying federal taxes still?????
There last part of your video was the most relevant as these are no risk ways of saving on taxes. Anyone who has done basic research into financial planning should already be well aware of these tax breaks. However leveraged investing such as the real estate example you gave is a two edged sword. If you are in a recessionary market you can lose a lot even get wiped out. Buying stuff you don't really need for a business can lower your taxes but it also lowers your liquid assets which is not necessarily a good thing.
Please don't follow his advise. It is 90% misleading at best. He has no professional credibility to stand on and is spewing false tax strategies. Please consult an actual tax advisor and financial advisor before implementing any tax strategy.
People who brag they pay no taxes are one of two things. Broke or tax cheats. It s that simple. There is no free lunch. They always have a secret understanding of the tax code. Don’t listen to them, you ll be sorry. As a CPA i have heard it all.
Broke or tax cheat? Maybe you could point to the law, the law that pertains to man and not a business. I do not recall seeing that section in common law.
4:52 no you’re not saving $750 in taxes. But you are creating a $750 deduction against your business income. The tax amount you save would depend on your tax bracket and the percent of tax pay on income.
A big part of the reason that the author has had to sell his kidney on the black market to pay for his rent:) is that he lives in New York. It has some of the highest property taxes in the United States. Which increases costs for the landlord. It is also one of the most difficult and expensive places to get permits for new construction which restricts supply. It's not really a place that I am exactly interested in living.
I worked as 1099NEC independent contractor, what’s the best filetax site out there? Where deductions are preset while filing. Fuel costs, food, subscriptions, while driving, and mileage. For mileage I need help filing it, do I list each month’s mileage or the whole year? Also I don’t get the whole need to file 4 times a year if your a independent contractor. Is that true? I live in NV. Uber driver here. Someone help
Check out the newest video and strategies to pay less taxes in 2024: th-cam.com/video/fXNYEex2uh4/w-d-xo.htmlsi=wAAxbHuC3uXJh3wi
during your tax flavors segment I totally got distracted by the burger flipping....several times
If you were smart enough , you would know that there us NO LAW TO PAY TAXES. Look up Joe Bannister, X IRS tax lawyer. He says no such law exists
Hi, question: my ira lost value 50% can i use to deduct from my taxes?
now i want to read the US tax code.
I thought after Trump’s tax code changes in 2017 you were no longer able to write off “home office” expenses ?
Its simple. Don't earn money. You could of course accept payment in goods; rabbits, potatoes, whatever. Really difficult for government to figure out the taxes due on that.
Great video with only one warning to those looking to pay $0 taxes. I have been self employed since 2005 and have never looked back. And I learned early on that when I wrote everything off, did all the deductions I could and wiped out any and all tax obligations…it then became almost impossible to borrow money or buy a house because I wasn’t showing a profit. (It was all expensed and deducted out)
Since that time, I make sure I don’t completely write everything off or deduct absolutely everything WHEN I know I’m going to be applying for some sort of large credit.
If a business is a side hustle this is less of a concern because you have your income but still, you’re going to need to show creditors there’s money left over to pay for whatever you’re borrowing for.
Keep in mind a good banker should add back in things like depreciation loss, since this is a "paper loss" and is NOT $$ spent, therefore increasing real profits. And if you run good books, and show actual cash in vs. real cash expenses, once again, they will see you are in good financial shape. The key is to establish a good relationship with your banker (and commercial bankers are a lot for savvy than residential bankers) . Great video
WRONG...!!! There are many LARGE companies that have ZERO REVENUE, clearly ZERO PROFITS...and hundreds of employees...therefore they write off ONLY EXPENSES !
Also keep in mind that if you follow that strategy, you are at much higher risk of audit, esp. if you make less than $400k/yr. Why? Because at that income level, the IRS knows you can't afford expensive lawyers so it will be much easier to audit you. In fact, I have been told by the IRS agent who has audited me a number of times that they have been told to stay away from high earners.
Re: audits - audits are actually a good thing (although they are a huge time sink) as long as you are doing everything legal and have all the documentation to prove it. For me, they are a sign that you are actually expensing the max possible amount. I've been audited 3 times and every time I'm told I'm the best prepared person ever.... There's always something you miss, last time it was an unprovable mileage deduction which cost me $600.....
@@ckm-mkc how do you prove mileage for something you can’t get a receipt for like dropping off business mail at the post office?
@@spirokalu you have to keep the mileage record daily or weekly basis, only needed when they ask tho.
Basically you pay no taxes on ASSETS you own, you only pay taxes on SALARY. To sum up the video
Thank you.
Ya until you sell your assets then the govt steals from you.
@ClandestineOne2178
It says Employee as one of the applicable people. If you have a job In America, then yes it does apply.
@ClandestineOne2178you’re insane.
I pay taxes on my property/land
I think there's a problem with those deductions in the rent example. Yes you have 9K deductions for your home office space, but this doesn't translate into 9K savings in taxes. It means that 9K of your business income is not taxed, but you can't subtract that from your taxes, only from the income.
I was about to post the same thing. That’s a rough error.
I came to the comments for this exact same thing lol it's a $9000 tax deduction not savings.
On paper it's all money spent and you have $0 in your pocket, but in reality you will have savings sitting in you pocket. Nothing to tax on paper.
Was going to say the same. Sure, it reduces taxable income by 9k, but the actual tax benefit will dependent on their nominal rate. Also, that space has to be used regularly and exclusively for the business to qualify for the deduction.
I stopped watching when I saw that math error. How do you trust the rest?
Love it. No clickbait, no BS, you went straight to the goods.
thank you so much :) what else do you want to learn in the future?
@@VincentChan can you do a video about how much money you will need to start investing ?
@@VincentChan but you have to pay back the loan with taxable income so how does it eliminate taxes?
If you deduct all the way down to 0 this is one of the audit risk red flags .. also when you have too many deductions on schedule C , meals , home office expense it also raises the chances of an audit ..if you continuously report negative or 0 the irs might consider it a hobby and not a profitable business .. I’m an Accountant ..
This comment raised the chances of an audit.
@@TBonerton lol.. just trying to help out.
Wow! Thanks for the info.
The cheque i cut the government on my properties and investments are seriously eating into my project bufgets. It would hurt less if I received value for my taxes but healthcare still isn't cheap, my children's college tuition costs a small fortune, and my husband and I still have retirement to plan for. Right now the only solutioniwe see is to scale up my profits and with our limited knowledge, we are at a loss on how to do that.
Professionals could make a really big difference in investing, and I think everyone should have one. There are aspects of market trend that is difficult for the untrained eyes to see. I have made more than 350% through my estateplanner(fa) by alternative investing. The portfolio comes with perks as well.
One of my goals is to employ the service of an asset-manager this year. I've seen some off social media but wasn't able to get a response. Could you recommend one?
Don't be hesitant to contact Sonya Lee Mitchell and follow her directions.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.
I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you
You don't save $750 or $9000 in taxes, you're just lowering the taxable amount. So on a 22% bracket tax on the 9k is about $1980 in tax savings for the year or $165/month.
Yeah I hope that was just a slip up there.
Exactly @Nestor A Cuellar!
You are absolutely correct, hopefully people realize that was a slip up.
i mean he absolutely read 2000 pages of tax code for that slip up
A lot of folks are going to be disappointed..
Although most people find taxes to be a boring topic, I always get excited to learn more about them. As you showed here, there are SO many different ways to save yourself money on your taxes every year. Since I just started my own business, I am excited to start to write off my business expenses against my profits for the year to hopefully pay $0 in taxes for the next few years at least. This was an excellent video, Vincent! Great job on it.
that sounds great!
@@jbusyiii Exactly!
As Socialist, I never advocate this because to me, paying no taxes must be illegal and I will fight against this including against you.
@@charlielugtu1118 well we live in a capitalist society brother so be realistic
I’m just excited to utilize the tools the wealthy use to growth and sustain their wealth, taxes being a massive part of that. I love talking and strategizing on taxes.
My favorite part of the video is when you describe an out of work individual selling 40k worth of stock for the year and not paying taxes as if it’s a work around paying taxes - as if income tax wasn’t already taken on the money he earned before it was used to purchase stocks
He also neglected to mention that there will likely be state taxes on that 40k, depending on the specific state you live in, and in most cases the rate at which you are taxed is the same as whatever the states income tax is.
So, imagine if we could rock a society with low taxes, cheap staples, and everyone feeling a little less “meh” about their financial situation. Sounds like a fairy tale, right? But hold on-this isn’t just wishful thinking. We can totally make it happen with some savvy moves and a sprinkle of community spirit.
Good video, Vincent!
Just remember tax deductions (like home office) reduce taxable income, but don’t always equal tax savings.
Agreed #1 and 3 are pretty much the same point
Exactly. I work from home, but there is no way for me to save on taxes as a result because my deductions would be far less than the threshhold required, which is tied to the standard deduction amount.
@@ivansmashem do you use home office write offs? Like deducting internet, part of rent/mortgage/utilities/etc.
@Daniel Harris Thanks for the question, Daniel! I don't. My complete itemized write offs do not yet exceed the standard deduction.
While I forget the exact number, I believe there is also a minimum requirement of around $3,000 or so of business expenses before one qualifies for an itemized deduction, or it is just some amount above the standard deduction; I don't recall.
Since my total home business expenses do not come close to that amount, nor do I yet benefit from itemizing, I just take the standard deduction.
Now, once my wife and I purchase a new home compared to our cheap row home, and my investments increase, I believe I will benefit from doing itemized deductions, but we are probably 3-5 years away from that.
@Ivan Smashem great point!
Great video. Inspires me to rethink my small business. One observation. If you expense 25% of your living space and $3,000 rent, you don’t save the full $750 a month in taxes. You only save the taxes on $750. At the 22% bracket that would be $165 a month or$1980 a year, not $9,000 a year. Still worth it!
It is super important to point out that wealth and income are not the same thing! Someone who makes a million dollars in a year will pay a 37% marginal tax rate whereas somebody who has a million dollars worth of wealth will pay no income tax because they didn't earn income.
So many people don’t understand the difference of wealth and income.
Instead of sending taxes skyrocketing, why not give everyone a little help with the essentials? Imagine subsidized food prices that keep your wallet happy without draining your paycheck. Yes, please!
@PoisonelleMisty4311 in the US we do have subsidized groceries. Farmers are paid certain incentives in order to keep grocery prices low and food production on US soil. If we didn't have these subsidies grocery prices would soar or we would import a lot more food.
@@Scott-by9ks "Thank you for sharing this. It raises some important questions about the balance between supporting local agriculture and ensuring affordable food access for everyone."
11:14 GREAT outline. You forgot to mention qualified dividend income also falls into that "no tax if less than $44k" limit. Unfortunately, most Americans lack the discipline to do 1-3 and would be complete disasters if they even attempted 4 or 5 since they also do not understand or know how to evaluate and judge risk.
Yeah I’m working on trying to get my divvie income to grow. I’m up to $35 a month so woot! Need to up that a lot but it’s soooo slow! :)
can you explain "no tax if less than $44k" limit"
@@303Estatesif married, we will have 123k of dividend income with zero federal taxes next year.
Zero State taxes in about 9 States
No income. No taxes.
In my household, I am self employed and my wife works at a hospital.
She pays for our food and household items and I pay all the bills on 4 properties.
I also get social security now, so I make more than she does.
She pays income taxes each week and I show a huge loss each year.
We always get nice tax refunds.
For 2023, it's difficult to make sure about unambiguous expectations for the real estate market is on the grounds that it's not yet clear how rapidly or how much the Central bank can cut down expansion and getting costs without failing purchaser interest for all that from homes to vehicles.
There could be no more prominent opportunity than giving back the way in to an airbnb condo knowing another person needs to keep up with it. On the off chance that you appreciate revamping and adorning, maybe house buying is for you. For my purposes, property is another way we get secured and beyond remarkable cases I'd prefer put resources into Stocks/REITS to get openness to land and other speculation potential open doors.
Given current slump pressures, it is unlikely that the stock will yield huge returns in the near term. In any case, it very well may be a sensible endeavor an entryway. I will screen monetary circumstances and consider purchasing when there is an improvement in the critical money related pointers, any thought which stocks this may be, I just sold my home in the Boca Grande district and I'm expecting to repay a solitary sum into the monetary trade before stocks return quickly, is this OK timing to buy or no?
@Drago250 that is entirely noteworthy, I could utilize some Data on your FA, I'm hoping to roll out an improvement on my funds this year too.
@Dragon Jee Thanks, I just googled her and am impressed with her credentials. Contacted her through her website to get her opinion on my situation
Encourage jobs that don’t keep people locked up in cubicles. “Hey boss, can I work my hours around my kid’s soccer games?” Sure! Flexibility makes everyone a little happier and a lot more productive.
This video is a blessing for a business student like me. Thanks, buddy
thank you so much :) what else do you want to learn in the future?
1. Should probably mention depreciation recapture for section 1250 properties. 2. Home office expense also needs to be prorated by hours used by week/day/month to calculate the yearly deduction, not just the sq/feet. 3. There's also SEP IRA's, which has a contribution limit of up to 20% of profit. I have a MS in Taxation and an IRS Enrolled agent.
If we pay taxes on our money, wtf do we pay taxes on everything else? We literally started a war due to over taxing and now we just bend over and take it.
Most of the stuff mentioned is simple business accounting, like subtracting actual business expenses from gross revenue and only paying taxes on net profit.
There's a complete misrepresentation on the "deduction reduction" with the rent deduction example (basically, business use of your home). It says it "saving $750 in taxes per month" and "a savings of $9000 per year in taxes." No. It reduces your taxable income by those amounts, and the actual tax savings is likely only about 25% of those figures for a typical person.
There's the example of getting 3% interest on a portfolio loan and investing it to get 8% in the market. Yeah, except that portfolio loans start at closer 7% and go into the 14% range.
Depreciation recapture was conveniently ignored when discussing real estate rental income.
Income Tax is illegal. The word income isn't defined in the law. It isn't required by law. The law states that it is suggested. Not mandatory. The law also expired at the end of the war. That was never changed. Congress looked into it some time ago and they said there was only 3 classes of citizens that had to pay it. 1. Citizens of Washington DC. 2. Federal Employees. 3. cooperations. At that time a rich businessman put out a bounty for anyone who could prove that it was legal. To my knowledge, this money has never been claimed ay anyone.
IRS ENTRAPMENT VIDEO !!!
This is my first time watching one of your videos and most deff subscribing, straight to it no running around in circles and making things more difficult than they should be good work man fr
Perhaps I am mistaken, but as I remember it you have State Taxes (for most states) that don't make a distinction between capital gains (Long or Short-term) and income. In other words: Whereas federally if you make under the ~$44,000 threshold on Long-term you'll pay the federal government 0%, on the individual state level you will still be required to pay whatever % of tax is required by your state for their individual "income" tax (again most don't make a distinction between capital gains [Long or Short-term] and other income). So for tip number 4 it is important to remember that whereas federally you may not be taxed for Long-term capital gains under ~$44,000, your state tax will likely be different.
Vincent! Seriously this is the best TH-cam video I have ever seen and I’m pretty sure I’ve watched hundreds of thousands of TH-cam videos. It’s all I did during Covid. The way you present this information is so easy to understand. Thank you so much!! ❤️❤️
Overall, not a bad video (I am an EA studying for CPA), however there is a small correction. You cannot take out the whole mortgage payments. Only interest part of it deductible, which goes down year by year. And the concept is very simple: if you don't pay taxes on borrowed money because it is not an income, you cannot take deduction when you pay it back!
I'm an EA as well, there is far more than one thing wrong with this video.
@@ryanheller5424 agree...
Property investor often take out an interest only loan, so all payment to the bank are tax deductible.
@@jackchen5290 that’s not a right thing to do! Even for property investors! If you recognized loan proceeds as income when you received it (which I doubt) then you can deduct the whole amount of payments. The correct way is only deduct the interest portion of payments which is reported in box 1, form 1098. You are welcome 😀
@@nairaamirkhanyan7416 I’m talking about the type of loans you can take out as investor where you do not pay down the principle. You are welcome
Your first example "page 159" I'm guessing section 162 ordinary and necessary Busniess expenses, will only work to offset income related to a Busniess. That doesn't work for W-2 employees or for W-2 income. If you do have 1099 income you might be subject to SE tax and estimated payments. Also, you can't use 1099 expenses to offset W-2 income.
The rent concept is good but only works for 1099 income and if you own the property you will be subject to recapture on the home office deduction if you sell it.
The rental income section is problematic. Again, this only works for 1099 income unless you are one of the very very few people who use Sch. A. You don't deduct your mortgage payments you only deduct the interest. Depreciation taken on fixed assets is subject to recapture if sold. Not a huge deal because of 1031 but you didn't mention that. Infact you advised against using a 1031 transaction by insted leveraging the property. Also, personal net operating losses are subject to limitations if the taxpayer is not a real estate professional, sec. 469.
Most of the information you are giving is not applicable to most people and some of it isn't even applicable to the rich.
I recommend that people talk to a tax professional if they have a complex tax situation.
For my small business, I was told to take depreciation. It did help quite a bit on the taxes I owed each year, which did allow me to invest more into it. What I was never told when I came closer to retirement, and was ready to sell my business, was that all of that depreciation I had for all of those years is now due to the IRS when you sell it in the form of capital gains tax. Nobody ever tells you that. However, I was told, if you sell it you can do a 1031 exchange. Which allows you to sell your business, then go out and buy a like kind business for same amount or higher, and you won’t have to pay the capital gains tax, But that too, is only a deferment. There is another thing called the Delaware State Trust (DST), but it has pros and cons as well, but is something to consider. Besides, retirement is what I had in mind, not start another business. I was told one thing to do is just keep your existing business, and die with it, which is what a lot said was their strategy, and AIUI, you and your heirs won’t have to pay the capital gains tax. At present I believe that is up to 11 million for singles, or 22 million for couples. These laws change all of the time, so you really need to find somebody that specializes in this.
You know that feeling of being stuck in a loop, like a catchy pop song you can’t shake off? Yeah, that’s how boring work can feel.
The best way to avoid paying taxes is to buy enough elected representatives to write tax codes that benefit you.
The "income tax " ended/died by law passed by the 83rd Congress on August 16 1954. Google IRC of 1954 taxable years
Taxation is illegal. Don't be blackmailed & threatened by criminal thieves (government) It's not legal.
Great video, but I think you really should have broken down what you meant by "mortgage fees" since it's really just interest, property tax, and home owner's insurance.
You made a mistake when talking about deducting the portion of rent that goes to your office. You don’t get $750 off your taxes, you get $750 of your taxable income. Very big difference.
You could check the little box that says exempt from paying income tax on your W2
Federal taxes are voluntary. The IRS is a private comp.not a government.
Dude this is amazing value in this video. Thank you for reading the tax code and making it so simple and easy to understand! Time for the people to use the same tactics as the rich
Bear in mind that taxes are membership fees to live in this country. They pay for safe roads, clean air, clean water, disaster relief, public schools (yes, states get lots of federal money for education), our court system, state dept., rule of law etc etc.
That being said, we lose over $500 billion a year in tax revenue to legalized tax evasion (called Avoidance) by corporations and the ultra wealthy (that's just what can be tracked). We are owed billions more from shady accounting (why else cut the IRS funding - complex tax return review costs money - cut the budget to make sure the only audits are done on the middle class)
So to really lower our taxes, we need to get the free riders who rely on us paying taxes (so they don't have to), to start paying the taxes they should be paying already. Stop the PR that taxes are a burden. They are not. They are payment for a return in services. If we're not getting what we pay for, we should ask why.
If those pesky corps would stop lobbying for massive (debt funded no less) tax cut for themselves, our taxes could actually be less.
Just saying.
The question is how to convert your salary into the investment funnel without double taxation. you pay taxes once it's earned, then buy stocks etc and get taxed again once you sell for gains. How do I skip the first tax stage?
Supposedly when the income tax came out it was only for federal employees or anyone who made money on federal land/equipment/ ect... then at some point everyone got charged it.
Edit*
I already have been using freetax usa for years. I didn't like paying money to the monopoly of turbo tax. Haven't had an issue filing with them in over 5 years.
Interesting! Thanks for sharing that tidbit :) Do you have any other fun facts regarding taxes? And that's great to hear about freetaxusa - 100% agreed It's a great platform
@@VincentChan well just that i file early every year because i don't want someone else to file them for me! Scammers are everywhere. There is a reason they issue those pins. Tax return fruad is on the rise fast!! Good video btw. Your editing is great and the face overlays are funny. Haha. This year will be my most complicated filing... buying property, taking out money from a 401k, selling an insurance policy gifted to me, american opportunity tax credit, blah. I can't figure out how to report the 401k withdrawal though. I don't think Vangaurd withheld enough. Looks like they only held 10%. O yea... that's pretty badass getting sponsored by a company like that. You have the mentality of someone i met with a $2M+ house near Boulder. They told me all about mr money mustache man, deducting home offices, 401k early withdrawals for property... if you aren't putting money in things that grow you aren't getting ahead.
Ya becuz they turned everyone into a 14th amendment citizen, which makes u federal employee of United States Inc.
@@VincentChan Our taxes have gotten much more complicated so we started working with an accountant. This professional actually caused us to pay more in taxes than Turbo tax but we corrected him and he agreed with us after. Does Freetax USA work for people with complex situations? 4 LLCs and a S corp.
The best method involved getting a g and pressing the self deletion button
if you can read all that?..
i have a challenge for you.
look thru all the labor tax laws. you will not find a single law anywhere on the books that says labor tax is mandatory. in fact it says it is voluntary and has always supposed to have been. before labor tax (1913) we still had roads, schools, fire departments etc.
then ask yourself how govt gets away with terrorizing and robbing folks for not paying labor tax.
taxation is theft. period.
What's really funny is the irs was never ratified
I understand the concept of not paying taxes on existing wealth (Assets) by playing a shell game but how is one who draws a substantial INCOME able to reduce that to a point where they are only showing an amount equivalent to the standard deduction. How are they able to pay for an auto loan / mortgage / insurances / medical and other large PERSONAL expenses without showing an income to match?
Your expenses must be "ordinary and necessary" for your business. If they aren't, they are not tax deductible. Section 162.
Fantastic video but some observations:
When you work a job the "usual tax process" goes like this:
Your employer withholds your taxes and pays them on your behalf--you get the rest. You never see your "pre tax" paycheck--you only ever see your post tax paycheck... this is 100% done to prevent tax revolts (and it worked).
Also: Fiat currency is debt based. There is no such thing as "real money"--it's all debt. Your bank account is debt. That dollar bill is a debt voucher. The entire system is debt based and Rich people know this.
The IRS is illegal . I stopped paying 10 yrs. ago. I asked for the law and the IRS has none.
Not paying taxes is a dangerous route. However, among everything you said this the one I liked because it suits me: 401k, business 401k, 403B, Traditional IRA, HSA, and 457B.
You read the entire tax code and didn't notice that they are only taxing U.S. citizens and residents. Well... I live in Washington state, not the U.S. and I wasn't born in the U.S. either. The U.S. is a federal corporation located in Washington DC. Were you born there?? NO!?? Then you are more than likely not a U.S. citizen or resident. You're welcome! 🎉
But people like to be natural persons to play monopoly…😊
Your $800/month mortgage is not deductible from rental income. Only the interest portion of the mortgage payment can be deducted.
The best way to lower your tax is to adjust your w4 at the beginning of the year. For the average person this is it. Then budget and save
At 9:33 your mortgage fees deducted cannot include any principal payments.
You forgot sep ira
It is a constitutional duty for congress to pass a reasonable and responsible budget, every year. They have failed to do that for over 23 years now..
Anyone advocating, teaching, or promoting a person's labor and time, be taxed by the same.. or ensuring fear for noncompliance or protest.. is enabling the enslaved of society to tyrayrannical and incompetent governance!! Incidently, it is also a constitutional duty of the citizenry, for such an enslaved society, to overthrow such unconstitutional tyranny.. especially from corrupt unelected civilian bearucracies. Accountants and financial advisors should be ashamed, for promoting such enslavement, for their own profits.
The only other flaw is you don't pay long term capital gains tax based on how much long term capital gains you recognize each year, it's based on income. If your adjusted gross income is 50k/yr, you're going to be taxed 15% on all long term capital gains.
If you are married filing jointly your long-term capital gains starts at above $89,250 for 2023, not bad. And anything over that amount is taxed at only 15% upto the $553,850, which doesn't really matter because I don't expect to ever realistically make that much.
I thought it was a separate tax bracket that wasn't influenced by your personal income...
The IRS is not part of the United States government, heck THE bankrupt UNITED STATES is a government service corporation.
But the Constitution clearly states that only Congress can collect taxes; Not the IRS!
Plus, If you agree and sign that voluntary agreement, then you are held to their [IRS] contract.
Which you stated to pay taxes!
And not to forget that the Constitution states that only gold and silver can be made as payment of debt.
Learn the law, not policy….
Please do a tax saving video on retirees on SS and retirement accounts.
Check out Holy Schmidt’s channel
Awesome vid! How about some property tax loopholes? Been looking for info on that :)
I know people who say to hell with taxes and don’t pay anything, ever. That’s another zero tax strategy 😅
Ok first point when you work you earn pre-tax income is not accurate. You TRADE your time for work. This is not taxable. Where they try to get you is if you let them PAY you in USA Currency. That is taxable. If you get instead in silver or gold it is not taxable at all. So knowing the LAW is the key.
Where the heck can I get a stock secured loan with a 3% interest rate??? Minimum I’m seeing is 8.30%
Wow very informative great job thanks
I majored in finance and worked at a large CPA firm. I guess I never considered this as news. But I see here that many in society don't have much of an understanding. Glad that you are doing this. Also you should include how many jobs and value to the dollar are created by these people (businesses) through employment and innovation. A number that could not be matched if the Government took all this money in Income or Capital gains taxes. The thought that any Government could do better with this additional revenue is as simple as looking at the Department of Education. Now that we have this department, we've literally not improved on our basic scores for K -12 while spending more and more each year. Then another campaign is launched to tell Americans that things would be better if this department's budget was increased. Now look at the size of this behemoth department. R.O.I is terrible.
It's all okay, cause they're spending other people's money. Of course they don't care!
Income tax is unconstitutional. According to the tax laws and their definitions of the words they use, income tax is VOLUNTARY unless you live or work in Washington D.C..
The example of rent doesn’t make any sense. So 25% of a $3,000/mo qualifies you for a $750 write off but that doesn’t save you $750. It saves $750 multiplied by whatever marginal tax rate you’re in
Let's go back to the stock sale for ZERO capital gain tax. I've tried doing this same calculation on a simple website calculator and even with an income of $37,000 it showed paying just over $1,000 taxes for the capital gain. What am I missing here. Anyone else find no tax on a $35,000 long term capital gain?
Because he neglected to inform you that most states will also tax your Long-term capital gains.
Thank you so much for all your advice. Finally, I put it to use and slowly is paying off and I’m getting in return which you said, which is the greatest commodity of all times which is time itself and not paying taxes and now I’m trying to just work with other people and become the entrepreneur that I always wanted to be. Thank you again
Just use the Constitution Lawfully!
No need to jump through holes.
I stopped paying federal income taxes in 2019. I will never pay a dime in federal income taxes unless, Congress changes the law.
Wealth is inflation. We pay all the taxes, When you buy anything, you pay the taxes of the company that produced the product. You also pay every employee's taxes, The people who transport and sell it. When you tax the rich, you just tax yourself. They got rich because you paid everything for them.
Federal income tax is unconstitutional, voluntarily.
I like how you say legally there isn't a law that says you have to pay them anyway
There are laws. You think some people pay taxes because we want to?? NO. For for some people they pay taxes because its the law. If they don't then they'll go to prison.
Love it! Thanks Vince. IRS is and will come after us all.
Not if u know how to utilize private trust
Lol. He didn't read the tax code, if he did he'd be telling you that the tax is levied upon Nonresident aliens and foreign persons.
26 CFR § 601.104 Collection functions.
(a) Collection methods
(2) Withholding of tax at source. Withholding at the source of income payments is an important method used in collecting taxes. For example, in the case of wage earners, the income tax is collected in large part through the withholding by employers of taxes on wages paid to their employees. The tax withheld at the source on wages is applied as a credit in payment of the individual's income tax liability for the taxable year. In no case does withholding of the tax relieve an individual from the duty of filing a return otherwise required by law. The chief means of collecting the income tax due from nonresident alien individuals and foreign corporations having United States source gross income which is not effectively connected with the conduct of a trade or business in the United States is the withholding of the tax by the persons paying or remitting the income to the recipients. The tax withheld is allowed as a credit in payment of the tax imposed on such nonresident alien individuals and foreign corporations.
For us dependent on W2 income, take full advantage of your company’s benefits. At some companies, you can effectively get another 50% pay by maxing all the benefits.
... you still have to pay taxes on the money you use to pay back a personal loan...
508 C1A. Pay nothing and file nothing. All coming in are considered donations.
We will do what the rich do and form religious trust.
where did you find the tax code to download??
Huh? At 9:29 he refers to 'mortgage fees' but then describes it was $800/month towards the mortgage... that's not 'fees' - sounds like he means repaying the capital, which is NOT tax deductable ! If he calls repayment of principle "fees" then I'm not sure we can believe anything else he claims....and then he refers to depreciation of the property - you can only depreciate 3.6% based on the building, NOT the land, and the land is the most valuable part. Further, when you come to sell, having written the property down, your capital gain will then be a lot higher (though CGT is lower than income tax). However, the big flaw is him claiming that paying off the principle is tax deductible - that's just nonsense !
Good stuff
I’d rather we end the tax system altogether.
That was fast. I need to listen to this again. Wow~!
Been looking for vids like this thank you ✅
Thank you !!
Why all that let's get rid of IRS
Actually, truth be told, federal income tax was started during world war 2 so as to offset the cost of ammunition etc, it was supposed to end after the war......🤔🤔🤔it has not. And it was never ratified into law to continue after the war, so the real question should be, why are we paying federal taxes still?????
There last part of your video was the most relevant as these are no risk ways of saving on taxes. Anyone who has done basic research into financial planning should already be well aware of these tax breaks.
However leveraged investing such as the real estate example you gave is a two edged sword. If you are in a recessionary market you can lose a lot even get wiped out.
Buying stuff you don't really need for a business can lower your taxes but it also lowers your liquid assets which is not necessarily a good thing.
Educational. Thank you
Great information. Thank you for sharing.
Awesome video, you're a smart guy and took a lot of time to do the research. It pays off. Thank you
Please don't follow his advise. It is 90% misleading at best. He has no professional credibility to stand on and is spewing false tax strategies. Please consult an actual tax advisor and financial advisor before implementing any tax strategy.
thank you so much :) what else do you want to learn in the future?
Appreciate the knowledge ✊🏽
Well done! Great video!
Thank you very much! Did you learn anything new in this video?
Since read the tax code. Can you show where it says we are required to pay income tax
People who brag they pay no taxes are one of two things. Broke or tax cheats. It s that simple. There is no free lunch. They always have a secret understanding of the tax code. Don’t listen to them, you ll be sorry. As a CPA i have heard it all.
Broke or tax cheat? Maybe you could point to the law, the law that pertains to man and not a business. I do not recall seeing that section in common law.
Excellent!!!
Glad you like it! did you learn anything new from this video?
4:52 no you’re not saving $750 in taxes. But you are creating a $750 deduction against your business income. The tax amount you save would depend on your tax bracket and the percent of tax pay on income.
7 layoffs within a 10-year span. Yeah, I think I lowered my taxes…along with everything else.
A big part of the reason that the author has had to sell his kidney on the black market to pay for his rent:) is that he lives in New York. It has some of the highest property taxes in the United States. Which increases costs for the landlord. It is also one of the most difficult and expensive places to get permits for new construction which restricts supply. It's not really a place that I am exactly interested in living.
I worked as 1099NEC independent contractor, what’s the best filetax site out there? Where deductions are preset while filing. Fuel costs, food, subscriptions, while driving, and mileage. For mileage I need help filing it, do I list each month’s mileage or the whole year? Also I don’t get the whole need to file 4 times a year if your a independent contractor. Is that true? I live in NV. Uber driver here. Someone help