Get An LLC To Avoid Paying High Taxes? 

Honestly, this situation makes me uneasy, especially with the economic uncertainty. I’m not sure how to approach my $130K investment strategy, particularly when it comes to generating passive income from stocks. With the potential downturn, I’m concerned about whether this is the right time to rely on dividend stocks or other passive income streams.

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

I’ve noticed Dave dosent share tax loopholes that I’m sure he uses.

As a single-member LLC (Limited Liability Company), you can use business expenses and losses from your LLC to offset other income on your personal tax return, including W-2 income from an unrelated job.

Warren Buffett does have earned income but its capped at 200k per year or so.

People complain that the rich and the corporations don't pay enough tax, yet 47% of the ordinary people pay no tax. The sweet spot is to have no wages, and to live off qualified dividends and capital gains. Many people pay too much all year, make an interest free loan to the IRS, get a refund and feel rich for two days.

Papa drops a sweet "vee-hickle" @1:16

Speak with employer about getting paid as a 1099 instead of a w2. File as a LLC or s corp. take business write offs etc. downside is you would need to provide your own benefits.

Before watching this I tried to guess what Dave would say. I got it correct lol I think I've matured in my financial journey. 😌

What rental properties allow is depreciation and you can expense management fees or expenses you have. And you can do what our elected officials do, claim crazy amount of millage even if it is not realistic to lower your tax bill.

What hurts you on taxes and doesn't make economic sense? - paying cash for rentals, obviously

I used Asset Protection Planners to set up my LLC and asset protection plan. Attorneys on their staff. Quite helpful.

LLCs for real estate are for limiting your personal liability and keeping your assets separate from each other. So if you own two rental properties, they need to each be in their own LLC. If someone who lives in one wants to take you to court then they have nothing to do with the other property. They also can’t go after your personal assets I believe. There are also ways to remain anonymous who owns them. So if for example you have to evict someone and her boyfriend who is living with her but not on the lease is a dangerous felon, they can’t find out who owns the property and where you live to stalk you, your family, and possibly hurt you. I’m not a lawyer or cpa but that’s what I understand.

The tax comments/jokes on this channel are at another level 😂.

Makes me so mad that we didn’t learn taxes in sxhool

The IRS doesn’t care about LLC’s of an individual. You still have to pay taxes, and theyre still high lol.

His cars are owned by an LLC because it's a write-off. I love Dave, but I wish it would be a little more honest about some of the things he uses to lower his own taxable income.

Dave is a smart man 😂 that’s why I love him

Thanks for the analysis! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?

You can claim all your losses if the rental under LLC but you can’t if it under your name. Specially if you make to much money from w2

In lawsuits, 1) it has to be illegal 2) police investigate things 3) it is approved by the courts 4) they calculate "proof of loss" 5) you usually just get your money back and fine them for their behaviors 6) it is always class action

Appreciate the detailed breakdown! 🧐 Need some advice: 🙏 I found these words 😅. (behave today finger ski upon boy assault summer exhaust beauty stereo over). What should I do with this? 🤷‍♂️

Income vs wage. There's a difference. Deception is real. So easy to fool the sheeple.

Warren Buffett investments pay corporate income taxes in addition to any capital gains tax the shareholders pay

Just because it's the code and law doesn't make it fair. That goes for a lot of things.

I set up my LLC this year and have been tracking all my expenses for my delivery services lol with my W2 job . I am hoping i can write offf everything lol 😂. As long as I can lower my taxable my personal income and pay back less the. Last year I’ll be happy to irs I am happy ;)

Poor Chris with having to pay taxes like the rest of us.

The answer that this guy needed is that losses from rental activity (e.g., due to depreciation) cannot lower his taxable income because of the passive activity loss rules.

This callers biggest mistake was paying off their home. It is one of the last write offs left. In my opinion they should take out a home equity loan. I know a couple that paid their house off and was preparing to retire. They did not need the money but took out a home equity loan for this reason. The women then invested the 100K into her 401K. She worked for a utility company which matched her investment 100% so she ended up with an additional 200K in her 401K. She then gave notice of her retirement. As the commenter below stated, it does not seem that Dave gives all of the best advice. It is incorrect that one should pay off their home. I have a friend in California and she and her husband were preparing for retirement. They paid off everything. And then got slammed with taxes the next year and had no write offs. They should not have paid off their home.

Can someone elaborate on giving to charity for tax break

“Pay cash for your rental property.” Right, right, gotcha

Why would you pay cash for the rental with money you already paid tax on so you could draw down the rent payments only to pay tax+SS once again? I’d get a loan on the property and apply the rent income to pay off the mortgage + depreciation.

funny how it's all about ratios for dave when buying thing but not ratios for paying taxes

Overall excellent but I think it would’ve been worthwhile to add that the tax benefits of real estate are generally deferred. For example - Loss are generally not deductible less you have other passive losses or until disposition.

LLC can change how you are taxed

While I agree with some of the commenters on here that just because something is law, doesn't make it fair, I find it perverse to talk about how much someone ELSE should be paying in taxes. In terms of the 14th Amendment to the United States Constitution, I think the equal protections of the laws should mean that we have a Flat Tax system where everyone pays the same rate. Yes, this means that even people on welfare should pay some of their income. Maybe that would keep people from advocating that the rate be high.

Really debating about saving up and buying a home in cash. Not having a mortgage payment will save me about 2k a month and I'll only have the forever bills of utilities, insurance and property taxes. Probably won't have a home until my 40s, but the though of giving the bank thousands each month makes my stomach drop.

What about an LLC in Montana for purchasing a vehicle anyone doing this while living out of state?

An LLC does reduce taxes.

Whats the take on establishing a Corporation sole? Would ohne gain more tax shelter operating in such?

Uncle Joe coming for him..🤣🤣🤣

Can you work a w2 in hold a LLC I rent I work 13 hrs a day 7 days a week

Writing off charitable donations voids the charity. Your left hand knows what your right hand is doing.

I feel zero sympathy for those who paid off their house and are unable to use those payments as deductions anymore. MOST of us will never have enough to even put a foot in the door to own a home.

Dave fan also, but he started out by going into massive debt like a fat man at a buffet., then started telling people not do what he did and made $$$. I am somewhere between him and rich dad poor dad author. There is good debt and bad debt. No debt is definitely less stress, also less money.

If I am netting more than 40-50k a year as a company, becoming a S-corp would be something I would look into. Not saying you should. It's what I would do. That will save you tax money. Also paying cash for a rental is a TERRIBLE idea in my opinion. You put yourself in immediate debt. Not the good kind either. It will take you years maybe decades to recoup a 200k investment in cash just to break even through rental income and equity. That is just bad business advice. If you're flipping a home, cash is ideal. Not for rental.

Accountant told me there are no tax breaks for charitable donations!

Get an Express Trust Under the Common Law instead.

dave seems a bit naive and out of touch at the end. you cant have it both ways. either the rich are paying their fair share and the tax code is fine or the rich arent paying their fair share and the tax code needs to be rewritten. he likes to talk about big pharma but yet dismisses big accounting who helped write the tax code with "loopholes" that benefit the rich. so thats what me mean by the rich not paying their fair share. legal yes, but its still a loophole done by lobbying. like donating to their own "charity" to get tax write off when in reality they are just transferring money from one business to another lol. like i know ppl who eat out at fancy restaurants and use that as a tax write off business expense lol. you are encouraged to spend more.

Dave doesn't give the piece of advice the caller was looking for, expensing your costs. So Dave is wrong, once you expense the costs against the LLC you will come out ahead under the IRS rules.

I save all kinds of taxes owning rental's through my LLC- depends on your current earned income but if you make under 130K you can write of so much - and you're LLC you can use to write off all kinds of stuff -cell, utilities, car payments, etc...

Create a non profit organization may help?

Revocation of election. Formally withdraw from the income tax system which is voluntary to be a part of. Forego collecting future Social Security and enjoy your freedom.

Funny how the rich guy says it’s absolutely fair. I bet you do think it’s fair.

Do Uber once or twice a month on a Saturday... It's great how much you can write off in taxes. Lol.

Tax evasion is a crime I hope they understand that

I had an LLC just to secure the name . The next month I got a tax form from IRS LOL I had made ANY money .

What about the “piercing the corporate veil”?

How come no one ever states witch law says we have to pay taxes?

also note i have time travel device or time machine my false brother gave it to me for my 35 Birthday maybe it will blow my face off lets ask a real investigater whom is willing to do all things properly

Warren Buffett > Dave Ramsey

Charity tax write off... SURE... you are paying 36% in taxes... so give your salary to charity so you can save 36% in taxes and live on the streets.

i rent a property and i wanted to renew the lease in my LLC name. my landlord said that it wasnt zoned for business and he said if i do this i could raise flags with the irs. is that true? is what im wanting to do is illegal? i have a consulting business by the way

What a bizarre argument about Warren Buffet. I am sure his secretary would love to hear that Buffet pays way more taxes than her in absolute terms. Like...obviously. How that makes it ok for her marginal rate to be higher than his totally escaped me.

I disagree.

Google 26 CFR 1.0-1 paragraph (d). Taxable years by LAW ENDED August 16, 1954!!

Stop paying taxes! The only law specifying a liability for the federal income tax is found at section 1461 of the Internal Revenue Code. whereby every person required to deduct and withhold any tax under Chapter 3 of the Internal Revenue Code is made liable for such withheld tax. And from whom must such a tax be withheld? Such a tax must be withheld from nonresident aliens [section 1441], foreign corporations [section 1442], foreign tax-exempt organizations [section 1443], Virgin Islands Source income [section 1444], dispositions of United States real property interests nonresident aliens [section 1445] and foreign partners' share of effectively connected income [section 1446].

Ofc he’s not gon say shit

LLC absolutely changes the taxes wtf is he talkin about

I set up my LLC this year and have been tracking all my expenses for my delivery services lol with my W2 job . I am hoping i can write offf everything lol 😂

Maybe third?

"charity"

One rental? Don't say anything. Just collect rent and it's tax free.

Unless you are bill gates with philanthropy foundation then all goes to charity to pay no taxes.

Dave: Poor people pay a much higher tax rate than the rich and that's completely fair because it's the tax code. Lol. Nah bro that's called a regressive tax system it's objectively not fair. Saying something "is the law" therefore it's fair is incredibly ignorant 14 year kid logic. Too bad you can't buy critical reasoning skills

Nobody can become financially stable with salary alone so you need a good investment like Bitcoin to be financially stable and free of debt.

it's crazy how the hella rich and super rich people like don't like to pay taxes like you literally have all the money get off the gas that means the money that they actually earned started making it own money so yes that money should be taxed at a higher rate because that money isn't earned

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

Ah to have the burden of having to pay 150 million in taxes and only live on $850 million

You owe it, you pay it.

Dave doesn’t own his properties because he uses the tax code to drive down his gross income🤦🏼‍♂️. More terrible advice!

I bet he likes the street he drives on and the defense provided by the Navy. Come on guy, just pay your taxes like the rest of us.

i am epic

52nd

If you're complaining about taxes, go live in a third world country.

Dave annoying af 🙄

Dave Ramsey doesn’t pay taxes

DAVE... real estate taxes should not count about YOU PAY SO MUCH IN TAXES. We know the truth and YOU do not pay your fair share.

Fourth!

Dave don't you like security of our country. You should love to pay your taxes. It means you are making a lot. I am sure you wouldn't want to be getting refund in the form for earned credits

This guy is a liar.

2nd

This guy talks in circles and doesn’t ever solve peoples problems. The only good idea he ever had was the snowball effect he came up with

15% of a billion is still only 15% Dave. Just because it's the "law" doesn't make it fair. I don't think Jesus would be complaining about taxes - oh and Jesus would be giving away free homes not making a profit off of them.

First!

Good thing in America we have the ability to change laws, time for Billionaires to pay up!

@:41 seconds Thank the RepubliCrats for that buddy

GEORGE... yes it is the law and the LAW NEEDS TO CHANGE. The filthy rich need to pay their fair share and we the people need to change the laws.

Because it's the law that makes it fair? Don't think so. I believe in taxing capital gains at roughly 90% if not more especially after a certain amount. How is a regressive tax code "fair"?

My parents never had money. I’ve heard the words, “Write-off” enough to make your head spin. They didn’t understand finance. This call was an example of, “I don’t understand money” 😂