How to (Legally) Never Pay Taxes Again
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- เผยแพร่เมื่อ 15 ต.ค. 2024
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How to (Legally) Never Pay Taxes Again:
Taxes are one of, if not the, biggest expenses in all of our budgets. So it makes sense that figuring out strategies to legally lower your tax bill is of paramount importance when trying to strengthen our own financial health. Today, we're going to be going over a few simple tax strategies that will help ensure you don't pay Uncle Sam more than you have to each year.
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Just goes to show how hopelessly convoluted our bureaucratic nightmare of a tax system has become over the decades.
thank intuit for that
By design
We live in a complex society and the tax code has evolved alongside it, becoming ever more complex.
My very first tax professor said that the tax code, like most social issues, is a political football. It's written by lawmakers who are shortsighted and voted in by citizens, a majority of which understand little if anything of writing tax laws and their implications.
You want a simpler tax code, start with education.
@@johnny_duke No. You want a simpler tax code, start by eliminating lobbyists. Intuit lobbies very effectively and spends millions every year to keep our tax codes convoluted. This isn't some harebrained conspiracy theory, this is a well known fact.
@@vijaybalchandani9622 spaghetti code
This went from elementary to E=MC² real quick.
Ong bro
On god like 🤯
rubber ducky 😂
Lmao
E=mc is easy
The fact that this is complicated and you need a tax professional shows how screwed the tax system truly is
Or how much the education system failed to give us actual skills.
@@09lego yup. Reading, writing, and arithmetic. After that basically youre on your own.
@@09lego This is intentional. The working class is not meant to have the same financial skills as the moneyed class.
it's not that complicated. You just look at tax brackets and adjust your capital gains. It's literally just basic arithmetic.
@@young_beans Thanks professor
Unfortunately 95% of society only knows probably about 5% of what was discussed in this video and the Government is banking on that. Excellent video
This is an extraordinary video.
Taxes are the biggest impediment to building wealth, and these strategies are helpful in minimizing taxes. Excellent summary!
Glad it was helpful!
guys i figured it out. The hand drawing isn't actually real
😂😂😂😂 You smart
How the fuck it work tho I’m being deadass
@@jamesronaldo2855 ai
I always find the hand drawing gimmick annoying. I would me cool with the artwork just draw in.
@@jamesronaldo2855 videoscribe. its a software that automatically does it
Easy, just never make another dollar again, never buy anything and live in a tent in the woods.
That's actually a good idea. ..💯
Matt Foley recommends a van down by the river
A camper down by the river is on my bucket list. ..
Paul Jimerson damn you took my line
What about... land taxes?
I consider myself extremely frugal and living off of 24k a year and investing the rest sounds insane. Investing that much income each year just to not pay taxes is ridiculous. The point of the video should be on ways to decrease your taxable income. I use Foreign earned income and rental properties to reduce my tax liability at the end of the year. It also helps I live in a state with no state taxes. There’s other tax strategies that can be used as you near retirement that don’t require you to live like a homeless person your early years.
TEXAS!!!!! NO TAXES
@@altruismfirst6489.
Seriously???!!!!!
@@altruismfirst6489 But very high property tax.
😂😂my boy
@@RB-kw6tk can't spell "Texas" without "Taxes"
This 20 minutes can change the next 40 years of your life. Should be mandatory viewing for anyone who gets hired to any job
I accomplished this same feat in an entirely different way. I joined the military, and unfortunately got severely injured...medical retirement required. 100% disabled veteran, tax free.
I highly recommend NOT doing it that way. I'd give almost anything to have never been injured and still have my crazy fun career working on jets in the Air Force. Instead I'm in constant torturous pain and am unable to do much of what made me happy previously (things like running, etc).
Thank you for your service Robert , sorry for your pain.
@@BucaneerBri no worries. It happens.
@@rpsnider85 yeah thanks for serving the country.
You paid a high price
My mother always said
They give you so much , when you can't enjoy it 🤔
I'm sorry for your disability
But thank you for serving your country
Although I'm in ENGLAND 🏴
To me , all serving and vetrans are the heart of any country
All good wishes 👍
Thank you for your sacrifice brother. I wish you a life of happiness and prosperity
The system was designed to keep us in "instinct mode". Keep consuming, keep getting distracted. You'll never be free until you learn to critically think. Do you ever wonder why millionaires read books? Because knowledge is the key. You have the entire world at your fingertips, and are wasting it on candy crush. Get going.
There’s too many stupid people out there. I know a 50yo who reads a lot of book that has ZERO retirement savings. Worked all her life. She kept spending money on stupid things like vacations she can’t afford, make ups and hair treatments that’s over her budget, etc.
@@Omikoshi78 But what types of books does she read?
@gv g lmao
I'm a Millennial born in 1981. I learned this early in my adult life. I retired at 34. I'm thinking of starting a new business, I have gotten bored in retirement.
@@Scott-by9ks I’m 20 years old can you give me some advice? I’m finishing my last year in trade school and about to head into the work field but i am open to opportunities for business and investing
12% to 22% almost 50% tax increase, just as you try to escape povery here come government with a big stick, dispicable.
Good information. The title should be "never pay federal income taxes again" since state, property, sales and other taxes still apply. But good information nonetheless.
Yeah, watch property taxes SKYROCKET in the coming years.... the hipsters that took over Oregon will learn this the hard way.
You probably can't get away from those, but my best advice is to try to avoid them where possible. We earn income in Florida, no state income tax. We live full-time in our RV, no property tax. I haven't figured out a way around sales tax though...
@@brewall13194 duh, buy second hand
@@brewall13194 sales tax you say....I may be able to help you with that as I have experience in that and the knowledge and have actually used it and won...
@@brewall13194 Go buy everything in NH or from online retailer who don't charge sales tax to FL. Im moving from NH to FL so I've had to figure this out
I just prefer to not tell the IRS that I made extra money and see if they can figure it out on their own.
Did it work?
@@starburst9053 He can't respond from prison.
@@StratumPress lol
@@StratumPress lmfao
ive done this for years but Im going legit now that im 43 lol. ive only been caught once so far and it was when I was young and in debt. ive been debt free and really barely havin to lie to them jokers
Instructions unclear, currently sitting in a max security federal prison...
Hire a tax attorneys and a great acountants
wait you to!!! Hahahahah
Max security... damn bro whatd you do ?.touch kids
@@philup6274 look up the crime severity index... tax evasion is taken more seriously than murder
@@jasonaardvark3655 you have to make something to evade it...
Im poor
"how to protect your assets from the government that is constantly looking for new ways to take your money"
That's the video we actually need to watch
okay, remove roads, remove schools, remove all government subsidies which keep your food and products low cost. Maybe think a little bit next time.
@@burkles4456 that all sounds good to me. The roads where I live suck. The schools suck. And the food is already expensive.
@@burkles4456 Isn't that cute, someone thinks our taxes are actually going to things that benefit taxpayers. Let's see how much of Biden's infrastructure bill actually goes to infrastructure for an example.
@@jbhass INCOME TAX mostly goes to defense spending (major waste of money) and interest to the national debt. So basically we're screwed either way.
It’s almost like the code was written this way on purpose.
Don’t attribute malice to what can be explained by stupidity.
@@oslier3633 those that dismiss correlations with excuses, are those they were designed to entangle.
Complacency will only bring you ruin.
@@RBsRealm Bitching about it accomplishes nothing because unfortunately it's their ball not yours...and no it doesn't change a thing that you think they stole it.
At this point it's much more productive to learn how to play their game and figure out a winning strategy than bitch about the rules and whether the referees are corrupt.
@@funfun5656 They could finally start to see through the BS and hire different people to write the code.
IT was written this way on purpose, taxation is already vary high if I make 100k what gives you the right to take 30%? At least if your going to take a significant portion of people’s money allow them to take the initiative and save themselves a little
Here it is in a brief summary: learn your local laws, stay in the bottom tax bracket whenever you move your money into these 3 accounts, it depends on time so its a long term game, just wait for it and then it starts building.
If you need to make even more money, then you get a multibillion dollar industry and take market share from it, outsource to other countries with cheap labor and then do whatever you want wherever. (that last part was not in the video though)
By far One of the most helpful, insightful, and broadly comprehensive videos I've ever seen about investing, taxes, and retiring. Wish more people would put together videos like this! Still a smidge hard to follow though, I need a textbook lol
Josh, I'm glad you found it helpful if a touch hard to follow :)
Made so complex even the IRS doesn't understand it.
The person talking reminds me of the teachers in the Peanuts cartoons: "wah wah wah wah, wah wah wahwhawah."
So I only have to worry about sales tax, property tax, gas tax, social security and medicare on my initial investments, car registration, etc...
Unfortunately true, but a reduction in taxes is a reduction in taxes.
We all still pay tribute to the local counts no matter what. But yeah anyway to save some cash especially for retirement is welcome.
Why get an SSN in the first place? Then you aren’t liable for any of the taxes.
And the national dept congress makes for u
If I keep watching this video on repeat, will I eventually start understanding it?
MrGallbladder please let me know your discoveries lol
I doubt it lol. I understand taxes very well and still it's a lot of information to absorb 😬
Cecilia Diaz if you have time, you can give a summary of the video. And writing will help you understand it better too
No, you will go from being a tax payer to a convict.
its my 10th time watching it, still lost at half point
Blown away by the realness of this video! I’ve been advocating this for a long time and people have said, “that’s illegal to not pay taxes”. Umm, ignorance is what should be illegal. Tax evasion is illegal. Tax avoidance is perfectly legal. It’s been happening before our very eyes everyday. While people complain everyday about everything and while people are divided over things we shouldn’t be divided on (like race, etc), the rich are squirreling money away. Learn their ways, and you will stop complaining about anything ever again. You will be too busy figuring out more ways to make money and avoid paying too much in taxes. This video just talks about a few ways. There are more ways!
Can you please please do a 72(t) video? That blows my mind just like this topic! Thanks!
Much of what this video presented was misleading
Well said bro!
@@Steve13lb12oz Really, what parts do you think were misleading?
I believe the video is exactly and legally correct and is an extraordinary resource for building wealth.
@A B The right to LEGALLY minimize taxes has been guaranteed by the Supreme Court. You are arguing against Democracy.
@A B certain ones, yes. But mainly, lowering your taxes now is very morally right and granted by the government to assist middle income folks too. The tools are there for people to use. They pay taxes later on some of them. What’s unethical maybe are the strategies that benefit only a very select few. So I partially agree with u for sure.
So much valuable information. Very dense, but I know understanding this stuff is the key to financial prosperity. Thank you for posting this up
This guy is good. I’ve watched dozens of these videos by others and done a lot of research as I’m nearing retirement. This information is extremely valuable and hard to find. Both of his videos that I’ve seen have been great!
I heard that the rich make themselves poor, by putting everything in trust and naming themselves as the trustee's. This keeps them from paying taxes because they own nothing, their just the managers of the trust/money/assets. Can you explain this to your viewers or point me to any video's that explains how it works, please.
trusts are more for children and another people who use money after main person dies. Managers pay for children/grandchildren education, or can pay them some money every year or when they become 18 like we see in the movies :) Or when they do something, also like we see in the movies. Living person can just create corporation or llc and this structure will be owned by person but will pay his own taxes (corporate taxes) and owner can get car, driver etc at his company expense. But overall US tax system build that way that lower 50 percent of earners don't pay taxes or receive more services then they paid. And rich creative and hard working people create jobs and pay for most of the country life, despite lies by leftists that rich don't pay taxes, they pay for most of the country.
@@denysivanov3364 A trust is an account set up by someone, true and that someone names someone to take care of the trust or corporation. That someone deals out the funds according to the terms set by the person who set the trust up, right.? Unless you can show me; there's nothing that says that person actually has to die, but we have been told that countless times in movies and such. I'm not worried about it, unless I somehow win a ton of money.
@@vondascott4915 if person is alive then why pay wages to all this lawyers, accountants and fund managers? Trusts usually set up to optimize inheritance taxes for big estates. They are useless when people actually alive. Im not a lawyer but this is my understanding.
To add to what the commenter was getting at.... Trusts have no other such financial equivalent. They exist solely to keep all assets, all finances and all property PRIVATE. shirt if like a wall of protection. Got were 100 percent right. "Own nothing Control EVERYTHING" is the name of the game. The Rich start rich by utilizing trust. And then propaganda is spread about trusts to keep ppl from learning more about how they work, like the person objecting to your comment. Your ignorance will keep you poor friend, look into the common law trust. You won't find much info on it but I'd out there. Happy studying. If ppl spent one quarter of their time researching trust structure rather than working to pay taxes via slave labor, there would be no such thing as poverty. Let's end poverty. Get educated on a subject that actually matters. Study trusts.
Foundations
This video was a bit of a no-brainer. Yes by investing, you're lowering your "taxable income" because you get deductions and you technically have less money to be taxed. Maxxing out your 401K & Roth IRAs lowers your taxable income. The progressive tax system has loopholes that any decent CPA can help you out with.
But in general, the way to go about is by establishing an LLC or S Corp. My father does that and he pays himself in the form of distributions and writes off a lot of expenses (transportation, sometimes dining and shopping that's "work related"). All of this works best when you're the owner of your own business or if you establish one for tax purposes.
When maxing out your 401k and/or Roth IRA, you need to consider the impact of tax deferral such as will taxes be higher in the future? will your tax bracket be higher/lower in the future? will you have more/less tax deductions and exemptions in the future? These are things to consider. Also, historically, there's been a market crash every c. 10-15 years. One year of loss can easily wipe out many years of gains. In summary, it may not be beneficial if you defer your taxes from a lower tax bracket (now) to a higher tax bracket in the future.
@@jerrypaniTruth. Roth IRA for the win.
@@jerrypani This is exactly what I was thinking. There are a lot of assumptions in this video, one being 8% growth every year. That doesn't happen anymore.
@@BeyondSustainableLiving What year did that stop?
@@BeyondSustainableLiving The S&P returned around 27% in 2021
It's almost like they make it complicated on purpose. Taxing people for working is evil.
it is to incentivise exploitative labor and personal buisnesses. new buisnesses and capital flow is important to maintaining the value of a currency. the Art industry and ownership transfer laws only make the impact of the tax policies more oppressive to those barely able to survive, while packing the wallets of the minority that got acess to the right forms of education.
it's how Colonizing Europeans kept above the working population and has been more able to isolate and control others quality of life 😒
The argument for taxes is paying for government services. But in actuality they use taxes to influence people's actions. As the video shows, they encourage people to work less and invest more. Perverse incentives.
Thanks for the IRA to Roth IRA ladder illustration! THats pure gold!
I went ghost and disappeared from society.....irs and a divorce destroyed me.....but I'm still around.....you just don't see me....im happier now too.
Big brother still knows where you are buddy...
@@chrisfrick2848 down with big brother.
I know for a fact that big brother is watching through the cameras on the smart phones and tv's. Just like the original movie. I watched it recently. Have you ever seen it? So many similarities to today's world. Crazy!
Ive been prepping for these scenarios my whole life...im ready I hope you are too brother its gonna be wild soon....everywhere...tensions are rising and conflicts are bound to explode in rural and urban areas...im heading as far north as I can without heading into Mounies!!!
@@chrisfrick2848 yes.....im ready for it.....been watching America collapse for years... Trump was the last president. The last Trump.
Very Important Tip that was not mentioned that a lot of people don't know or maybe don't think about; you can still put money into your previous year IRA and/or HSA a couple months into the next year.
For example, you can still put money that will count towards your 2019 HSA total in 2020, up to the date taxes are due (so June this year). That allows you more flexibility with your liquidity during the year. Also, it allows you to forecast your taxes after you have your W-2 (which most people receive in late February, if not sooner) AND still make contributions (i.e., max out accounts) prior to formalizing your tax return.
That also allows you to see what contributions you're allowed to make with final income numbers and tax rules so you don't accidentally contribute more than you're allowed to for one of these accounts. (i.e Highly Compensated Employee rules for 401K accounts or Adjusted Gross Income limits for IRA accounts)
Awesome video, I love the tips that you give about side hustling. I will be sure to use some of them in my next update. I'm on the road to financial freedom!!
You got this!
@@NextLevelLife Thank you so much for your video!... Only now I complete understood how the Roth IRA Investments work!
It's also worth noting that passive income sources like with real estate not only can exemptions apply but returns can also be re-invested through an LLC resulting in the potential for $0 taxes.
Some great valuable tips - understanding the tax laws is key to keeping more of your money.
Can you do this with a real family in mind? Let's say 60k annual, 2 kids, rent, car lease, insurance, bills, etc.
I did it. What are your questions? I'll give you a quick example. But first I have a few questions. Is that $60k per income earner in a dual income house? If not $60k where I live is slim pickins but we will roll with it. So, $60k is 2 people earning $14.42 which is less than what a city bus driver or a sanitation worker starts out at in my town, but again we'll roll with it. So, our monthly before taxes is $5000/month. I found a decent 3 bed 1.5 bath house in a good school district in my town for $795/month. Now lets assume that your regular bills are similar to mine. We pay average $200/month for our electric, internet and streaming service and they all come on one bill. Our water and sewer is about $30/month and trash & lawn is covered by the landlord. Now the place I found is right on the bus route so if you didn't have a car unlimited service is $50 for adults and $25 for students but lets assume you have 2 cars like we do. My truck is paid off and my wife's 2016 Kia is almost (February) but the payment there is $510 and insurance is $195 for both. We pay $87.45 each month for both our phones. Health insurance including pharmacy for a city employee(I have different) for a family is $264.60. So we are sitting at $2082.05 in monthly expenses. That comes to $24,984.60 yearly. But we forgot fuel, maintenance and groceries. In the last month we spent a total of $127.06 on gas for the cars and we spent $288.34 on groceries and home goods. We buy everything at Kroger and Aldi. Now I will add 1/3 because you have 1 more child than we do so that total is $383.49. This should give us our total before fun/extra expenses. This gives us a grand total of $31,111.20 in living expenses for the year. You could live a similar lifestyle I do and save 20% of your income and your federal tax liability would be $2389 assuming a standard deduction married filing jointly and no other tax credits(however you would qualify for the EITC and you would get a retirement savings credit as well). Now we can't forget about the 9.1% in Social Security, Medicare and Medicaid withholdings and that is on the full $60k which equals $5460. That gives you $9039.80 for fun, extras and all the things not mentioned in here.
Now assume that you continue to put the same about of $12,000 every year from age 30-65 at S&P index average of 6%. At age 65 you would retire with over $1.3million! Your retirement will be increasing by $78,000 a year. This is assuming no employer match..... but it would be cooler if they did!
One of the key issues here is where you choose to live and what your chosen occupation is. If I met a couple living in my city with this situation I would highly recommend increasing their earning potential through night classes at one of the colleges or universities in the area, we have several. Given their low income and housing situation they may qualify for grants and scholarships that put money in their pocket for going back to school. Nurses, teachers, HVAC technicians, tradesman, and CDL drivers are in high demand here and pay considerably above $30,000 a year. I hope this helps.
No, with 3 kids i spend 24k / year in groceries alone. No way I could live on that until retirement.
@@Scott-by9ks Where do live that rent and utilities is that cheap? Only $288/mo for groceries--C'mon Man! (aka: Joe Biden-LOL). On the serious side break it down for us or write a book, I will be the first to buy it.
@@veger5872 ok, I live in Clarksville Tennessee. I typically shop at Kroger. The only place I have lived where I would say utilities are cheaper is Kentucky but not by much. My wife takes her lunch to work with her and our daughter eats breakfast and lunch at school which is currently provided to all students. We live in a 1200 square foot 2 bedroom 2.5 bath townhouse that we purchased new back in January 2020. We put 20% down and our payment is $659.99/month and we pay $1200/year in HOA. We have a community pool, decorative light posts, sidewalks and a club house. We are close to the interstate, hospital, the mall, restaurants and shopping. We have straight talk as our prepaid phone service we pay annually because its cheaper, less than $1000/year for both phones. CDE is the local electric company that offers high speed broadband and cable or streaming services all on one bill. We have our internet and streaming service through them and our bill I just paid for all 3 was $169.89. Our water and sewer are on the same bill was $30.31. Trash, lawn, pool and master insurance is covered by HOA. We don't eat out much, not nearly as much as we used to. We just don't see value in it and the total dining out experience as a whole has declined in the las 10 years or so. So I prefer not to reward bad businesses with my money. What else would you like to know?
@@veger5872There are actually much cheaper places than Clarksville to live. I think it's gotten kind of expensive here. Most new houses are now over $300,000! Which 4 years ago was unheard of but now 1000s of people are moving here. Its pricing young people who grew up here out of the housing market. It's sad because the people moving here don't see or don't care what they are doing to the community. Where are you from?
This is the whole freaking game !!!!!!!!
Please enlighten me
While this was good there needed to be an example for singles to follow aswell
The fundamental strategy remains the same. Obviously the individual numbers in each of the brackets are different and you're only saving into one 401K/HSA/IRA, etc. but the main ideas remain largely the same :) As always though for specific advice consult a tax professional.
More or less divide the numbers in half and there you go
The same rules apply
@@ordinaryhuman5645 Will you re-mortgage the property to continue the deduction, or do you have a better option in mind?
@@ordinaryhuman5645 99% of people won't believe you if you tell them the mortgage payment is not deductible. This is the greatest lie that has ever been told.
Goodness! I'm going to have to listen to this a few times and take notes, this is really eye opening 👀
“To understand taxes is to understand money, is to understand the world.”
This is very good advice, however, I would also advise to max a ROTH along with the taxable early on in the process. You can start the ROTH while you are still working and take advantage of tax free growth. Put your potentially largest cap gains investments in that so later one you won't have huge bill. It is best to do this early on in your career when your bracket is lower to take advantage of the growth potential in the ROTH vs. traditional IRA. Additionally, the ROTH has a special advantage of the fact that you can distribute the contributions before the age of 59.5 after 5 years of vesting.
Additionally, a mention of wash sale rules would be warranted for the advice about selling and buying back shares.
Otherwise, a fantastic primer!
He was only looking at gain harvesting, not loss harvesting, so wash sale rules do not apply.
1:53 should mention that the percentage applies to the portion of income that’s made. So if I made 80k I would be taxed 10% on the first 20k and 12% on the next 60k
Yeah that is important to note.
"How to be a millionaire" by Steve Martin. Step 1: Get a million dollars...
I like the variation that goes “How to be a millionaire: invest a billion dollars.”
Step 2: Profit
I had trouble understanding after the part where you explain the 3 types of income. I got lost
How tf are we as a society ok with being taxed so much damn money! It's absolutely maddening. How is this still going on?
Same reason why people keep voting for the same authoritarians that keep allowing the government to steal from us every 4/15 and arrest us if we don't want to. That's what's stopping us from living in a free society and what's allowing the government to remain so big and oppressive.
Because the government controls it. And will take everything from you if you fight it. Trust me I know someone who fought it.
Envy. People who pay almost nothing on n raw dollars, envy a handful of rich people and vote to tax them punitively, not because they believe in government spending, but out of spite
@@RobertoBlake not out of envy but out of a belief things should be fair and equitable
@@kbkatherineb3944 If you pay nothing in income taxes, why is it 'fair and equitable' to go after a 50 % chunk of someone else's income ? Poor people have a very strange idea of fair !
This is actually pretty 101 level investment stuff... nothing wrong with it, but it's one of those things where when you take the next level, the class basically starts with "Everything you learned in 101 was wrong". In a sense, everything in here is correct, but it certainly won't get Warren Buffet's effective tax rate to below his secretary's.
Establishing a business, paying yourself a minimal salary, then taking large distributions is generally the way to significant tax reduction. Additionally, in doing this, several normal life expenses can be converted into tax deductions. Moreover, it doesn't require locking your money up where you can't touch it till you're near the end of your life (IRAs and 401Ks) and it doesn't require feeling like a slave to corporate life (401Ks).
True, but the audience for this video isn't those who really want to become investors, but normal people who want to retire without paying a lot of their savings in taxes. Not those who want to have millions in income every year and create their own empire.
@Chaz; Do you have any good recommendations for books or other sources of this specialized education?
mistercohaagen commented to come back to later !
kind of what I was thinking ... what's the advantage of locking away large amounts of money and having to live frugally till the end of your life ... is there a way to do a Warren Buffet approach using an average salary?
Is there a way for the average person working a regular job to establish themselves as a business (and doing the same job) without talking their employer into hiring them as an independent contractor?
So the strategy is to invest in the system, commit to the system by keeping your money in it to see your gains, and then try not to be milked dry at the end depending on what tax codes are in law at that time. Is this a fair breakdown?
This is mostly how to not pay taxes when you retire. The key to not paying taxes is to have hundreds of thousands invested in stocks in the first place. that or live off only $24k annually if you are married while investing the rest. It's a neat idea, but impractical considering tax law and minimum deductible income changes constantly. Hell, under Obama, there was a point where minimum taxable income was just over $7k per person!
No the trick is to buy a SSN off a homeless person, transfer all of your assets, then fake your death when the irs catches on
Explain more please.
Zachary Gottlieb explain of this more please
but stocks pay corporate taxes since one stock is just part of corporation.
@@zacharygottlieb4369 this is crime, I saw video couple days ago about guy who lived under dead person name for 24 years and he got caught and now in prison (he is 60+ yo). Record is like person died, then 4 year after he married, bought house and lived for 24 years in Florida. Funny
So you're telling me in order to not pay taxes, I have to; be rich, own property, and have investments in stocks...
Yeah, I'm at the wrong video
Just saw your channel bio and I really respect this whole premise. Subbed.
Welcome aboard!
so much information lol had to watch this a couple times.. thanks for the content
Glad you enjoyed it!
ive been on a financial education adventure the last year and just when i feel the euphoria of finally understanding something new and utilizing it, something like this shows up and sends me back down the slide where i gotta climb all the way back up -_- i dont think i was ready for this video
IRS: * Begins sweating and breathing heavily *
I have a lot of family that works for the IRS. They don't care. They are just the people that ensure that it's all accurate. It's the government that loses money.
Not they don’t.
Easy, just never make another dollar again, never buy anything and live in a tent in the woods.
😂😂😂
I doubt it. Only 1 out of 30 viewers might attempt this, of them 2 out of 20 might excute.
I constantly reference this video and it has saved me A LOT of money and I don't make a lot of money. Thank you thank you thank you
You guys are so lucky. in NZ we pay 39% tax, plus 15% consumables tax on anything earnt over $280,000NZD (US124,242). They are talking about increasing taxes on us. Wow you guys have it good.
I could have benefitted much more from this about 30 years ago....
teach the young. This is not taught in schools.
Should have read some books...
Great video. Good to have a tax minimization strategy as my crystal ball shows taxes going up, up, up in the future.
Robert, I'm glad you found the video informative :)
this is crazy the government is eating to much, we really need to get rid of the leaders and fix our taxes.
Andre Mcclendon Taxes are at the lowest they’ve been in years friend
@@ECHONOMICS Yeah, that's the problem. Billionaires are not paying a lot of taxes
@@ECHONOMICS taxes? For which country? Sre u daing direct taxes or indirect taxes
LMFAOOO, in the netherlands we pay 51,75% tax if you earn over $60.000 lol stfu
JDelay National debt is now over $25 Trillion
Great information that I was needing. I recently started investing 6 monhs ago, plan to work 1 to 4 more years so I think I can map my plan out! Thank you.
Congratulations!! Health and wellness coach here! So proud of you!
One of the BEST videos I have watched! Thank you - much appreciated…
Glad you enjoyed it!
Perfect, now they will be able to live their dreamed life at the age of 72!!!
LOL. Exactly what I thought. Wage slave for your young years, and live OKAY about 10 years before medical bills wipe it out on your way out.
That’s right, criticize this free education and keep on spending your money. This is surely the path towards a better life for you and your children.
You’re missing the point. You can change how much $$ you move around to save on taxes. You don’t have to sacrifice your present for your future. Find a happy medium. Nobody can live on 24k per year now a days. If I cut my taxes in half it would be a game changer I don’t have to pay 0 taxes to make a difference in my life.
@@happynewt2359 On $24K a year, you can't afford children. Or a house. Or a car…
@@xyzzy9111 24k in take home pay a year can afford you a car and rent, plus living expenses, with some leftover
This is the best explanation of how to keep your money from Uncle Sam!
Thank you! Very helpful 👍
Glad it was helpful!
This video is great, but complicated for most. We really need an on-line tool to plug in someone's numbers and provide a personalized recommendation. That would be really helpful!
That would cost money. Remember the system has to be set up by someone and that someone wants to be paid for their time.
@@RAJOHN-ke7mc This is what keeps most people poor- the inability or desire to learn new concepts.
THANK YOU SO MUCH, THIS TUTORIAL HELPED SO MUCH!
12-30-2020, thanks for sharing your knowledge with us. Happy new year to all of us.
Brilliant! An example (there are many) of smart investment vehicles combined with the power of compound interest (over time) = tax-efficient SUCCESS. 💕.
If you also have a financial planner and tax adviser in your corner - they can tweak the strategy as the rules, limits or as your personal circumstance change. View these ‘professional services’ costs as ‘insurance’ for your ER and Retirement strategy. For each personal circumstances, there come a point when chasing tax efficiency will take a ‘back-seat’ to drawing-out some lifestyle wins (and peace of mind wins) - you don’t want to leave it too late to collect on your delayed gratification. The body/mind weaken over time and the ability to take FULL advantage of all that you and your family have sacrificed, starts to become diminished. So, remember to live your life (in moderation) and smell the roses along the journey. Making good financial decisions - time and time again - buys you CHOICES that you will come to fully appreciate when the need arises. And it will arise; I guarantee it! For the fortunate ones it might just be a ‘need’ to help a family member or friend.
Nice content. 🙏
Needed something to put me to sleep. This did it .
4 minutes in, and the solution is clear, invest, invest, and invest
Tax laws have changed significantly in the last couple of years. Does this advice still apply?
So if you’re placing money from your traditional Ira to your Roth IRA, does this mean you should always have both a traditional and a Roth IRA?
8:50 can somebody please explain why they have to sell off their capital to hit the top of the $80,000 threshold and then immediately re-buy? Why can’t they just not sell instead of selling by and re-buying? Is it to avoid being taxed on the unrealised capital gains? (The growth of the fund?)
The sell and re-buy keeps your ownership of the stock the same, but changes the cost of the stock.
And that means your cost basis is higher the next time you sell, which means less capital gains taxes to pay.
We have a graduated tax system in Canada too but the tax rates are higher. I make just over $80k per year and after my (pre-tax) DB pension contribution I take home about $2050 biweekly, approx. $53k per year. About $25k of my $80k goes to taxes, roughly 30% of my income. The trade off is found in our social safety net including universal health care.
That's certainly a trade off I wouldn't mind making personally!
I wouldn’t make the trade only because I can’t audit the good and service provided by the government. The state has no incentive other than revolution to provide services at the highest standard. Business, however, don’t eat if you stop doing business with them because they provided poor services.
If you count health insurance premiums as a “tax” (and you would need to if we want to compare the two systems fairly), the average Canadian comes out ahead until you hit about $125k to $150k per year. Canada also has a lower federal top rate (29%) than the US does and lower corporate tax rates. So when is Justin Trudeau going to invade and “liberate” us to “grant” us all Canadian citizenship just like the US tries to do (to Canada with “granting” US citizenship) in order to secure Canada’s natural gas and petroleum reserves for itself at the end of Richard Roehmer’s Ultimatum and start of his Exxoneration book?
Yes, but every year they keep digging deeper into our pockets. when will this stop!!! I am sure the same people who make these rules don't follow them so why should we
Impressive - thanks for the video! However, I do think it would be hard for most families to live on $24K per year, considering that would have to cover rent (or mortgage), utilities, auto insurance, gas, food, etc.
The tax systems form of currency is knowledge. So in this sense, this dude just gave out free money. Respect
I've seen this video at least 6 times. Each time I watch this video, the message becomes clearer. Thanks this info is GOLD! 😊
Glad it was helpful!
So John and Jane are worth millions but live their entire adult lives like they’re practically poor.
Pale Rider not exactly, their taxable income is at the lowest limit, not their actual income and they’re investing for their future. It’s called being frugal and it’s something that everyone should know how to do if they desire to retire mostly stress free.
So u want to do this thing just to retire quick and then what??? This frugal got limits also depending on area and state. There is something called inflation, so u need to invest all.your assets not knowing if they go up or down. Loophole that kids are using is the one that u invest bank money and get profit from transactions. Id like u to show me bill gates leaving frugal.... rich people can open new corpo in another country to not pay taxes at all. So why.bother???
That's how you get rich dude. You cant spend all your money and expect to magically have more of it
@@hdjjfhdjif878 like i was saying we have inflation, so saving ur money aint worth shit. U gota invest it to keep up with inflation.
@@darrelldiaz Living off of only 24k a year is a little beyond being frugal. That's enough for rent/mortgage maybe, but what about food, a car payment, and don't even bring up kids. Also let's not forget that to even have an HSA you have to have a high deductible health care plan, which means that you are paying for all of your current health care costs yourself, with taxable dollars.
Cool, didn't know about the 5 year wait time if you moved money from standard to Roth.
Yeah, that was pretty cool.
12:44 is a real life example of how taxes work
Now the IRS will be going through the comments and auditing all of us 🤣😫
Thats is not bad!!! I learn much more on here then anywhere else.
Great video and very well explained, however, in order to accomplish this you better be willing to live in your car while only eating ramen noodles and never have kids... 2k/mo living expenses on 100k combined gross household income is a consumption rate of 24%. Theoretically possible but I’d love to see a study showing how suitable/possible this is for a period of 20 years across the country (based on differences in cost of living and other factors state to state). Seems like your letting the tax tail wag the “life” dog so to speak. Definitely don’t mean to discard the incredible analysis of this (nor discredit the fact that this certainly is possible if you’re willing to actually do what is needed to live off of that low of a percentage of gross income so that you find the sweet spot within the tax brackets) but just want to weigh in on how feasible this actually is.
His example is literally laughable, no couple making 100k is living like that ever. Come on.
I was scratching my head the whole time he's explaining about the ladder conversion and maxing out contributions. I was like how 24k left from a 100k income is going to pay the bills, foods and everything. It's going to be an extremely frugal lifestyle. But thanks to your comment, I know that this only looks good in theory. Some of these principles can still benefit to lower taxes though--not avoiding it completely.
Simple: Be rich, and then try to pass a law where you don't have to pay any taxes at all.
You know, to "promote business."
@@princeeverlove That’s a weird way to spell “Republican Party”.
@@davidshin7869 AND @PRINCE EVERLOVE. You two go togethers as bitter ignorants and probably mind poor. It has nothing to do with politics. EVEN THOUGH WHEN BLUE COME THE POOR GET POORER.... But you never paid attention, righ?????? CLEARLY!
Your next video should be “ How to illegally avoid paying taxes”
😂
(for educational purposes) 😂😂
It's obvious the author knows his profession, but proves how complicated taxes are. Most people don't have a financial person who even knows stuff like this! Better than this mess, get a whole life insurance policy with cash value as your own bank and all money withdrawn is tax free and doesn't have to be paid back :)
Please tell me more
So for the last example of the couple making 100,000/year
That's not counting any taxes taken out when they transfer funds from their Traditional IRA to their Roth IRA which would bring their taxable income up by another $24,800 each year.
This brings their total taxable income back up to $41,900 and taxes up to ~$4,800.
So any money you throw into the traditional IRA to reduce taxes would just be balanced out as you're transferring it to the Roth right? Or am I missing something? Would seem like it defeats the purpose if so
Great content...im going to be the first millionaire in my family because of strategies like this...i forgot about the conversion ladder though
I can’t wait to earn enough to actually use tax loopholes.
Amazing content, and well-explained. Taxes are your biggest expenses in life. Legally avoid paying federal tax, and you’ll be that far ahead! Subscribed!
see mario g
This video was unbelievable. Wonderfully done!
Junk video. Bad title.
If they print all of the money why do they need some of ours?
I won't hold my breath on an answer!
y is it 40k and not 80k since they're married? long term capital gains for couples is 0 for under 80k, right? Also, in the case, when they start withdrawing from roth, it will count towards the income for the year they're withdrawing, correct?
*Leave it to govt to come up with arbitrary taxable thresholds.*
Wesley Snipes has entered the chat.
Question, If you sell the stock and then rebuy them back immediately to take advantage of the 0% tax rate on Cap Gains while keeping you position on the stock, doesn't this trigger a Wash-sale? and if it does, which is mostly for deducting losses, does it affect how much you can utilize for Cost Basis?
Thanks
Wait 30 days to buy back in
I dont understand the purpose of saling 40k on stock to rebuild it again 😕 ? Can anyone explain?
@@powerfulldavinciinvestment3367 A year late, why not? The point of closing a long position is to avoid a sudden drop in stock value. It's not the preferred method for long term investment as it may cause a loss of dividends, and put an investor in the awkward position of suddenly owing tons of taxes or living hand-to-mouth for period. Best is to write some calls to offset and leverage against the shares, mitigating losses but maintain dividends. This is the exact reason options became a thing. Most people are afraid of them due to their possible complexity, but a basic knowledge can save loads of money in a potential market downtrend, which can happen from time to time (note March of 2020).
Thank you for teaching me something today.
Its so easy to avoid taxes in US. Heck even your mortgage payment is deduction on personal taxes. In Canada, there isn't such thing and Capital Gains are taxes at 50%!!! regardless of the amount.
Canada does have similar things like RRSP, TFSA, RESP, but ya the amount you can contribute to these tax savings account is MUCH bigger in the US.
I thought the math was gonna be crazy because of the comments and it ended up being basic lol.
I thought the same thing!
Haha I was waiting for the point it would be getting crazy complicated
I don’t even know why I’m watching this as a European 🤔😂
The title is s bit deceiving as all who uses money to purchase anything are or will pay some form of tax.
@Rohith Hegde Are you saying anyone living in those states don't pay ANY taxes?
Aka GST
@@AZWallbreaker no they don't have a state sales tax. They get hit with a state income tax and usually higher than average property taxes which get passed into renters and usually drive the cost of living higher.
Great video, but quick question. I know you can withdraw from your Roth IRA funds after the 5 year period since open, but isn't it only tax and penalty free for people under 59 with special conditions? (ex. first time home purchasing, education, certain medical expenses)
Nevermind, I think I figured it out. You can withdraw *keyword* CONTRIBUTIONS. Correct me if I'm wrong
12:44 back to the drawing board.
You forgot to include the standard deduction. No one pays taxes on every dime he makes. Inflation is how they really screw us.