1. Reinvestment of profit earned 2. Deduction of expenses 3. Move somewhere with no or little tax - Tax heavens 4. Send it overseas - Profit shifting - company in another country 5. Charitable donations 6. Equity instead of Salary - Elon Musk - Tesla 7. Buying an art - appreciation 8. Multiple nationalities with no fixed residence 9. Gift 10. Hold it in privacy coins - Bitcoins - Unregulated 11. Don't draw cash from assets 12. Filing for bankruptcy 13. Yacht as second home 14. Trust to escape estate tax 15. Depreciating assets
My accounting teacher said once: “If in 5 or 10 years I hear that any of you is paying taxes, I’m gonna break into your house, take your diploma, shred it, and sell it as hamsters bedding” 👍🏽
Not quite. "Create legal corporations to run your businesses through as fast as you can." Is more like it. Multiple LLCs or C-Corps owned by an S-Corp seems to be a decent start.
And to think there are mcdonalds workers demanding 15 dollars an hour which moves them from paying 10 to 12% taxes to paying 22%of their income in taxes. And I bet none of them are educated enough to take advantage of tax deductibles.
@@John2r1 that’s not exactly how tax brackets work. You only pay the higher percentage on the remainder of income after the lower tax bracket. It’s a tiered/stepping stone bracket system, not a “all in on this bracket” type system.
@@two7plumbing thing is if you don't have any profits there's nothing to be to pay taxes on. You can't get 22% tax from 0% income. Which is what profit is when you own a business. If you don't take an actual paycheck and instead take equality out and use all company assets to run your company. Which only requires you to be able to say you use the asset to go to meeting's or whatever events required to run your company. Then you don't technically own anything your using and you don't have a taxable income as an individual. Your company still has to pay corporate taxes but you pass those cost on to the price of the product your company makes. Ergo your not paying taxes out of your own pocket. It's the same with debts due to buying property if you buy a house then rent that house out. Your not paying your money to the bank your taking money from someone else to pay the bank. All extra money is profit to most people. But its really an asset to invest. So if on paper your not taking a paycheck and you don't personally own anything as an individual your not personally paying taxes. The US Tax code treats the Company and the Individual who owns it as separate entities. People like Donald Trump don't directly own anything their companies own it. They just use company assets. That's how the rich personally get around taxes while their companies pass the tax on to consumers. It cost Nike about 20¢ an hour to produce their shoes in their Vietnamese factories. The cost to the consumer here in the US per pair of shoes is between 25 to over 150 dollars depending on the shoes. The reason why taxes . It's a dog eat dog world. And the rich figured out how to get around the system.
@@John2r1 I agree completely. My comment was simply aiming to clear up the tax bracket situation as you seemed to be suggesting that McDonald employees who earn a higher wage are not in a better situation due to the higher tax percentage they’ll have to pay.
@@John2r1 That is just one reason upping the minimum wage is a political buzz word. The technicality of the tax system not withstanding, your point is valid.
DO YOU KNOW WITH A GOOD CREDIT YOU CAN DRIVE A CAR OF YOUR CHOICE? DO YOU KNOW THAT WITH A GOOD CREDIT YOU CAN OWN MANY BUSINESSES SO WHAT ARE YOU WAITING FOR? GET YOUR CREDIT FIXED NOW FROM RAUL! TIME WAIT FOR NO ONE
I almost burned my account trying to use complicated scalping strategies. with this one I am halfway in regaining my lost capital. can this strategy be used in direct execution order or only in buy/sell stops? I need advise. thanks.
I'm not good doing it alone but getting into the market has been my best decision so far in my road to financial independence as it turns out lucrative for me.
I am new to cryptocurrencies such as bitcoin, but I am very interested and curious to start investing in it, although I do feel this is kind of late now. Can anyone tell me what I need to do?
When it comes to the world of investing,most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidance.
If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you, prevent inflatio
Yes I am a living testimony of Mr. Josh Mr. Josh has changed my financial status for the best. all thanks to my aunty who introduced me to her last year
Speaking of investment, I have been finding a tough time deciding between mutual funds, real estate, and crypto investment, anyone with ideas to help me with?
As a CPA who specializes in tax this video triggered me. If you try half of these the IRS will come looking for you. Rich people don’t pay as much in tax as regular people because of safe harbor rules. The US doesn’t care where you make your money, there’s a worldwide tax and if you denounce your citizenship you have to pay taxes on everything you have before they let you leave. Not to mention estates, gifts, and trusts are taxed separately from federal income tax. Half of these “methods” are subject to AGI limitations. And the other half have different tax rules than GAAP rules.
I’m not a business owner yet, but it’s definitely a goal. In the US my Federal tax rate is 22% and my California State tax is 9.30%. I’m looking to move out of the state and possibly out of the country. The information you provide invaluable.
Good luck finding as much financial opportunity as the US in some other country. However, as a resident of California, I don’t exactly blame you for wanting to move to a different state, our tax rates are sort’ve crazy here.
Income taxes are designed for the middle class. The poor don’t pay anything since they get so many government handouts and get tax returns. And the richest pays the lowest percentage in taxes relative to their income.
As Robert Kiyosaki put it, schooling systems have been built to keep the poor poor. Never in your schooling time will they ever teach you finance or atleast the basics of it.
@@Karzacan Might be a nice narrative for selling, but it's true. Just think of it. An important subject like personal finance and money management, why have you not got that till your higher secondary education?
True, school teaches you how to be a worker and another part of the machine. School doesn’t teach you about money at all. The rich just know this secret they never tell you at school.
Good knowledge about forex trade is a key to a profitable and a successful Investments. I can unequivocally say that forex trade is one of the most profitable and lucrative business for every investors with the right expert.
@Tesei Jessica *that's true, a lot of people today have been having a ton of disappointments in forex and crypto trading in light of helpless decisions awful specialists.*
@@geraldmartin3347 there are lots of good experts out there but most offer little ROI's. I will advise trading with Mr Nicholas Burke-Gaffney's team as I make over $35,000 on average per month from their trading bots.
Remember that this video is based on US tax law. If you’re not an American the specifics may not apply (for example, tax exemption for capital gains reinvested in the business). However the basic idea of structuring your affairs to take advantage of the tax laws of your own jurisdiction is good and it is worth investigating whether a specific technique would work in your country.
You forgot stepped up value. When a person dies their inheritors can sell their assets like stocks and real estate and they only pay taxes on any increase in value since the death of the owner not from the time he purchases it: Dad buys stock at 100 bucks. At Dads death is is worth a million. Son inherits it and sells it for 1millon and 10 dollars. He pays tax on only the 10 dollars...
@@Momoko4ever1it’s like this. If the father took out the money they would have charged him a considerable amount but when he died all those taxes were waived from his time of death. So it’s like he bought it a 1 million and if the shares increased by 10 dollars since the time of death. Then the son only gets charged on those 10 dollars.
For anyone seeing this, I believe you can achieve your goals, all you have to do is to NEVER GIVE UP. I also believe that you will be among the rich people Alux is talking about
- @@darkcyborgsuperman9521 I am already a millionaire, and also almost 80. So if you have bad health or are handicapped or lack observational powers or have dozens of financial problems, the increase in wealth is WORTHLESS. All you 'wannabe rich" people here are ... I guess the word is "foolish". You buy on credit! (WRONG) and wind up paying 24% INCREASE of the price. You bu new instead of used. You buy into scams, instead of research. You want to '" do nothing- yet get rich". Why? You buy lotto tickets! Work your butt off like I did for 25 first years- earning LESS than welfare! Meanwhile partners rip you off, employees steal your business, customers file bankruptcy, rather then pay for goods bought, equipment outright stolen. Government refuses legit expenses. Meanwhile burglar alarms are ringing every few days, (or hours). You suffer break-ins, all kinds of vandalism, car set on fire and containers set on fire, (we had people arrested for theft) etc. work until after midnight, 16+ hours... NOT fun. Sometimes I wish I had been on welfare ;-)
Sweden, I work as a Sr. Engineer (12+ yrs exp), make about $600k -kr ($72k USD), for a large multinational, and I pay 31% of income in taxes, I take home $414k ($49.7k). I live cheaply, but I'll never be able to buy a house, rent is 12k-13k -kr. ($1.5k) for a 1bd apt, I can't afford a car, since they cost about 8,300 kr/mo ($1k usd), gas is about 15kr per liter ($7US/gallon), my monthly expenses are about $25-30k kr/mo ($3,200-3,600/mo). Again, I make more than my peers, and live frugally. I don't know how others can make it without help.
Create an info product that teaches aspiring engineers how to pass a specific engineering test/certification, or, get a promotion. This can be in the form of an ebook, video course, and or, monthly subscription. You could even build a media brand if you're comfortable creating content. It's a great semi-passive revenue stream, it's borderline infinitely scalable, and you obviously have the skill and expertise to make it happen.
@@TheRonellCross thanks for completely irrelevant useless advice. As if you know he passed some exam that isn’t just inherently receiving a degree is all he did. The what should he do? Rewrite a college curriculum… that sounds like a productive use of his time.
🇰🇪.. 25 - 30% Employment Tax In Kenya. 30 - 37% Business Tax after deductibles. However, income from Foreign Investments is untaxed, hence the rich from outside Love Kenya for their secondary or holiday homes.
Investing in bitcoin is the best investment anyone can do this, because it has made a lot of people millionaire. I pray that anyone who reads this will be successful in life
I'm really tired of trading on my own and blowing up my account, I'm real interested in trading forex this year because the shape the stock market is take place
I'm also getting into forex trading because a friend of mine told me that's forex trading is the best now to invest, well i have Bitcoin worth of $19,000 on my edge wallet
I'm also getting into forex trading because a friend of mine told me that's forex trading is the best now to invest, well i have Bitcoin worth of $19,000 on my edge wallet
I really want a video about multiple passports and how the Rich travel across the world visa free and the easiest passports to take that is the best to travel please Alux
The real estate industry crackdown clipped Evergrande's wings, stopped it taking on more debt and had the flow-on effect of forcing it to sell apartments at a discount so cash would continue rolling in.
Thank you 🙏 Alux for this amazing information! I’m so happy that I’m already doing one of the things you have mentioned. I have started my LLC early in May of this year and I’m based as a home business. I’ll be taking a lot of deductions at the end of the year. I’m very excited. I wish only success for everyone on this channel.
I have to disagree with you on one thing in this video. When it comes to maxing out contributions to a retirement account, you did not mention if it's a pre-taxed contributions or after tax contributions. I contribute to both a pre-taxed and Roth retirement accounts. As you already know, no one pays taxes with a pre-taxed retirement account and the money grows tax free. However, the money is taxed as ordinary income in retirement. With a Roth retirement account, the tax on the contributions are paid up front but the money grows tax free and is also withdrawn tax free in retirement. Both of my retirement accounts are well managed by me. Other than that, this video is very informative and shows how people can use the tax system to their advantage regardless of their wealth level.
Weird Sonya, you don't look the type to have a "cheating wife". And why the plug for Raul? Is he paying you? ALLof you plugging Raul and Nicholas in this video... STOP. Comments are for the content, not SPAMMING all comment readers!
I still don't understand how people who get paid in equity , pay there day-to-day expenses, like electricity bill, or buying a doughnut , or filling the gas tank of their car . Can someone please explain ?
Major caveat to a couple of these…. If you’re a US citizen you’re taxed globally. You could spend ~30 days in 12 different countries and Uncle Sam is still coming for their taxes. You can renounce your citizenship but there’s definitely an exit tax on that. This is a lot more complicated than the video implies as well as a couple other things. With that being said, it’s correct in most ways.
I refused to work anymore overtime in excess of 10 hours due to the fact they tax so much nearly half of it is gone. Instead I just cover shifts which aren’t taxed the same at my job.
Middle class has it the hardest. I knew plenty of broke friends who NEVER paid their taxes because the government would get almost nothing out of them anyway. Then I have friends who make six-figures and have to give over 10k each year in taxes. Only the absolute wealthiest or poorest avoid paying taxes. I think the actual stat is the top 1% pay for 50% of the taxes or something crazy like that
@@mauricio9564 I am not sure what you mean by "Share of wealth" because that implies the money was just donated to them which it was not. They earned the money by selling products or services that people willingly wanted to buy. No matter how you look at it, the government taking 50% of the money you earned is messed up. It does not even go back to the people who bought the products. It just goes straight to government who spends it on other things that may not even benefit most people.
Top 1% pay 53% of *federal* tax; bottom 51% pay *0; somehow the rich aren’t paying their ‘fair share’. MOREOVER 82% are 1st generation sole-proprietors who lived on hot dogs & ramen noodles for YEARS (as Elon Musk, Bill Gates, too many successful people to mention) w/o any guarantee they’d earn a nickel yet those w/ cushy near- guaranteed jobs do d!ck& refuse to realize their own lazy, self-entitled ass.. f ‘em
About 80% of ALL income taxes are paid by top 5% Earners. And now we want to Tax them More. People who earn 40k or less per year are considered Poverty Zone and PAY NO TAX which seems unknown by Americans.
This video made me have an epiphany of my life an family all this time the video made realize that we don't have any structure, corporations, credit, assets , real estate to pass on ....better yet structured under a corporation for tax benefits...no paper assets or liquid assets...All this time I could have started with my credit built it up etc then went to business credit an built it up....educated myself hang around smart people , learn business basically an my life would have been in a different lane than the one it's in now...I understand now!!! I really do.....This has been the most eye opening video for me...Thank You so much....Please!!! make another one like this one very inspiring!!!!!!!!!!!!!!
Sadly, in South Africa we have donation tax and we have such severe tax laws that don't allow you to deduct certain expenses and the property you use to live in for free provided by your employer also gets taxed. Additionally, we have dual taxation. :(
@@uchihamadara7386 @DiamondGamer 101 indeed that is the plan, I've also come across Tom Wheelwright, he has some tips regarding this, and it probably works. However, I must add that SA does seem to make everything much harder 😅. Do you live in a low-taxed country?
At the end of the day it boils down to having a side source of income especially in stocks, crypto, NFTs and digital assets.I dont think you can evade tax completely but you can prepare your self to bear the brunt.
I own a small business and I pay 3% of revenue in taxes. I am just the owner on paper, but I actually do everything for tgis business. If I were to hire myself I would have to pay 45% in taxes. I studied the taxation laws of my country with an accountant before opening my business and I believe that I made the best choice.
As long as we can live in a society that is well protected from the taliban, drug smugglers, third world countries and their dictators and strongmen thugs, our own home-grown neo-nazi groups, corrupt government officials, unabated disease spread, and other irritations that plague our daily lives, we will be okay. I love these ALUX videos. They truly make me feel better and more optimistic.
It’s the western politicians who supports those dictators and Terrorists.If you don’t want third world people in your country,then ask your leader to help those countries tackle their problems
I'm in finance and my wealthy clients pay, on average, 40% income tax (fed + state). And they're in high finance, themselves, and have accountants do their taxes. So not all rich people pay low taxes.
Yes, I think this is why so many people in the US think that the rich don't pay their fair share. On average the rich pay 27% in taxes while the working poor pay 4%. But because taxes are confusing and most don't understand how it works, plus it doesn't help when you hear Warren Buffett make comments about he pays less in taxes than his secretary. All this becomes very confusing and it's no wonder why Americans are angry towards the rich. This is why financial education and understanding taxes should be taught in high schools.
@@schoolofrandomthings Yes the rich ($300k-500k) shoulder the highest tax burden, especially those who earn money from work income. But once you reach $15million and higher mark, you can shield most of your money from being taxed.
The blind leading the blind....most of this is rubbish....as in illegal and big, flashing, spinning, neon signs to the IRS. As always, research what you're told and decide for yourself.
How does this whole bitcoin thing work, I'm interested in it and I'm willing and ready to invest heavily in it but I'm gonna need an assistant from any trusted and productive professional
The wisest thing that should be on everyone mind currently should be to invest in different of income that depend on the govt especially with this current economic crisis around the world
The global pandemic shut many financial institutions from functioning thereby rendering most people jobless & investors lost more than they ever thought of losing.
@@jlkkauffman7942 It's the top 0.1% or less that have the resources to exploit tax loopholes to maximum effect. The top 1% is made up largely of people quite well off but not super rich.
Thanks for replying honestly didn't expected, but can you make a specific video on financial independence meaning of it and ways to achieve it. Please it's a humble request.
@@bookworld5299 follow Dave Ramsey on the 7 Baby steps .. after those are completed this videos are the building blocks after that and more understandably appreciated
I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks (with the help of my Financial Advisor of course) and made about 246k, but guess what? I put it all back and traded with her again and now I'm rounding up close to a million.
@Emi Pelham There might be so many investment out there but if profit must be considered which is the actual sole aim of every investment then I'll advice you to go into bitcoin trading because it has a higher profit rate than most investments.
In Australia it's up to 45% which is among the highest in developed nations. Despite that there are some benefits like a health system which is accessible by anyone and affordable university. For example my engineering degree cost approximately A$42,000 which is a little under US$32,000. I know university is free in some countries but it's still a better deal than what some people pay.
That's because they don't teach about money in schools. They teach you how to get a job and that's it. My recommendation is that you go read the book Rich Dad Poor Dad by Robert Kiyosaki. It's all about what the rich teach their kids about money that poor and middle class people don't.
Well the 1st Rule is you have to be rich for this tip. As working class person who does not have money to own business, we can only pay tax because its taken out before it even reach us.
I am a CPA and have a master’s degree in taxation. Some of the info here is factually incorrect! I have few clients who got into trouble with the IRS for shady schemes portrayed in this video.
Agreed! Even if it is plausibly done it is loosely briefed in the video and would require completely proper setup and accounting beforehand. Moral of the story - it pays to have a great CPA as well as audit your own books or pay for them to be audited if your organization grows to that point.
Yeah, an example is rich people using borrowed money to live on rather than having a taxable income. I looked into this (Australia) and the wording on the ATO web site was that borrowings should be used to directly benefit the company so personal expenditure does not qualify.
In the example given about art work.. If I sell my 6 million dollar worth art I have to pay 2 million taxes and 4 million goes to my pocket instead if I choose to dontae 6 million worth of art I get tax break for 6 million which is only 2 million. So only 2 million goes to my pocket compared to 4 million if I sell it. Which is still a donation for my passion and sacrifice of 2 million right? What am I missing?
We’re all paying inflation tax with all the “money printing” career politicians are doing to keep their positions. This video is very enlightening 🙏🏼 UPGRADE
@@johnstrato9795 Thank you. I wrote this 11 months ago, hardly anyone was concerned about inflation back then and this was pre-Ukraine 👀 People will find out the hard way when the stagflation/depression comes to past.
I think the first point is incorrect. Profits from a business are taxable whether you reinvest it or not. If you use the profits for expansion only the expenses that you make in AY are deductible.
In the 11th point "Borrow against your assets" I have always heard about that but I still dont know how do you pay that borrow to the bank. Does the bank get your assets?? I dont get it
You are not the only one...too many people want to leave Canada and perhaps the government knows this, hence increasing immigration levels to counteract the migration
@@TheAshdan81 the reason why a lot of people want to leave Canada is not the taxes, they are not that high unless you live in Quebec or Ontario, the real reason is due to the government how they handle Covid and the rights that are being stripped in favour of the LGBTQ+. Trudeau is more interested in taking selfies and give more rights to them than get the pipeline build and create jobs for the country! That's why!
I am also leaving my country, Finland, someday. Our taxes can be nearly 65% in the worst scenario. And the worst part is that our goverment is only looking ways to even increase our taxes life wtf. Our country currently owes so much money.
@@JamesJones-kh6tr 65% and they still want to raise them... Funny How here in the west (USA) they keep talking about you folks as the example of universal healthcare and high taxes and how people are happier! I would leave!!! 65%!?! What the fuck am I supposed to do with 35 of my income earned??? Especially if you can not invest?
I need to keep watching more Alux. I want to start pro environmental businesses, and Alux seems to help with that. I only vote left because of environmental protection, but I’d be happy to vote anyone of any party that cares about the environment.
You'd be surprised how many people on the right care about the environment. It's just that it seems like other issues always take center stage that become the dominating issue
I'm sure you have good intentions but like most people that vote for the left you're misinformed, not only the left does not care about the environment but the policies they want implemented are more damaging and harmful than what the right proposes.
Thank you for being here Daniel! We're been thinking about it, but it's more of an Upper middle class thing. Rich people don't really like living in crowded spaces.
All of this is good and I have heard it all before but WHAT do they live on day to day? They must spend cash to buy food etc? So there must be cash movement somewhere so therefore tax?
