Hi Karlton, when you buy the property and if you plan to do remodelations, is it better to do the cost segregation first and then the remodelations? If you already did the remodelations and get the cost segregation after is that bad? I am thinking that if you do the cost segregation first you are getting the benefits twice because you can do it again after remodelations, is that correct?
I've lived in America and Canada. Paid about the same in taxes but get way more for my taxes in Canada. Most Americans hate the government (hate giving them their money even more) because they've never experienced good governance.
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
Wealthy people do not "keep this information behind closed doors", the public school system does. Wealthy people actually are the ones that teach us this information.
I disagree. The information is published and shared openly in the tax code if you bother to read it for yourself rather than wait for someone to tell you. You are responsible for your own education. No one source can teach you everything you need to know to survive and thrive.
If "I" am responsible for my own education then "I" should have been allowed to dictate what and when I learn. Since the public school system dictated what and when I learned then they should have at least explained the basics of the economy, money, & investment vehicles/strategies. Oh, not to mention how to even adult in general SMH.
Real estate depreciation is a double edged sword. Down the road when you sell the property, you must pay capital gains on the depreciated value, not the sales price. It's a massive tax bill. I've been there.
no, there is no Capital gains tax on American citizens. That would be an unapportioned direct tax in violation of Article 1, section 2 of the US Constitution. How in the world could the IRS even know about the sale of the house? The only way that I can think of that the IRS knows about the sale of your house is if 3rd parties involved in the sale of the house such as a Title company, Real Estate attorney, etc made the seller sign a W-9 along with a Taxpayer Identification Number such a a Social Security Number, and then the IRS received a 1099. Is that what happened in your case? Do you remember being asked to sign a W-9 form along with your SSN? There is absolutely no requirement for Americans to fill out a W-9 form, especially when selling their home. The federal government doesn't have any federal jurisdictionovern Americans selling their homes. Social Security Numbers are voluntary for Americans. Therefore, there is no way shape or form that the Federal Government can require Americans to provide a Taxpayer Identification Number such as a Social Security Number along with a federal government form such as a W-9 in order for an American citizen to sell their own property.
@@Larry-d1c just so I understand what you are saying (as I am not trying to argue or be confrontational with you, I just want to understand) are you saying that in your experience as a seller of your own property, the buyer's mortgage company demanded that you sign a W-9 with your Social Security Number?
@@Larry-d1c I see. Thanks for clarifying. The mortgage company is not following the law. If, and it's a big if, people understand the law when it comes to Social Security Numbers, they can avoid this situation of giving a SSN and signing a W-9 to a Mortgage/Title company. In fact, people have successfully sued 3rd parties like attorneys for holding up real estate transactions for refusing to close on a real estate transaction without the disclosure of a SSN/signing a W-9. The W-9 form is ONLY to be given by Withholding Agents. The full W-9 form is found here www.irs.gov/pub/irs-pdf/fw9.pdf On page 5 of the form, it says Part 2: Certification: "To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9." Withholding Agents are defined in 26 United States Code, section 7701(a)(16) as "The term “withholding agent” means any person required to deduct and withhold any tax under the provisions of section 1441, 1442, 1443, or 1461." 1441 deals with Non Resident Aliens. 1442 and 1443 deals with Foreign Corporations and Foreign Tax-Exempt Organizations. 1461 makes the Withholding Agent liable for the withheld tax from 1441-3. Notice how United States Citizens are absent? Withholding Agents do NOT withholding income taxes from Americans! As you can see, throughout the W-9 form, is ONLY dealing with FOREIGN entities and FOREIGN Income! If you look at page 2, it's all about Foreign Income regarding Foreign Persons and Non Resident Aliens. And at the bottom of page 2, it refers to Establishing US status for purposes of Chapter 3 and 4 withholding. This is referring to Chapter 3 and 4 of Title 26 The Internal Revenue Code. This is a HUGE clue! What is Chapter 3 of Title 26? Chapter 3 is "Withholding of Tax on Non Resident Aliens and Foreign Corporations. What is Chapter 4? Chapter 4 is: Taxes to enforce reporting on certain foreign accounts. Clearly, this W-9 form is for FOREIGNERS and FOREIGN INCOME ONLY! This form has NOTHING to do with reporting the domestic income of American citizens! Anyone who is demanding an American to sign a W-9 to report their own income is ignorant of this form! And clearly, there is a LOT of ignorant American companies using this form! The ONLY time a US Citizen would use and sign a W-9 is if they are acting as an intermediary between a Withholding Agent and the Foreign Person to who the money is being paid to. A W-9 should NEVER be given by an American company to a United States Citizen to report the Americans income because the W-9 is ONLY for WITHHOLDING AGENTS and Withholding Agents NEVER withhold income taxes from Americans, but only Non Resident Aliens and Foreign Corporations/Organizations! If you want to learn more about this W-9 issue, this booklet provides a thorough explanation drreality.news/product/business-w9-handbook/ The next time you sell your property, you will have the knowledge to refuse to give your SSN or sign a W-9 and you can sell your property in privacy without 1099's being sent to the government! Selling private property is NOT the federal government's business!
Great info Carlton! You are the best! I love all your content and everything you speak of is the way awesome people should help others with getting familiar with the game!
Could you please list down all the us tax laws ? Like in Pakistan , we learn income tax ordinance , 2001 for direct taxes & sales tax act, 1990 for indirect taxes.
Awesome karlton I really appreciate your help and information, just getting started in rental properties and following you, will be reaching out to you soon thank you very much!!
Thanks for the info brother. As a nurse , i often discuss financial aspect with my coworkers and let ne tell you that almost around 90% are part of the non educated group when it comes to taxes. I work with the hardest working people i know and i wish for them someday including me to master these loopholes 🙏
Im a CPA with graduate degree in tax. Spend 4350-400/yr to a good tax CPA and if you listen, I’d guarantee you’’ make all that money back over a few years.
I don't have a Social Security Number. My parents never applied for one for me and I never applied for one for myself. I have my own business. My clients pay me in cash. The way I undestand it is that I cannot fill out a 1040 tax return without a Social Security Number. Isn't it true that you must have a Social Security Number to fill out a 1040 tax return? I see the section for the SSN on the 1040. It just seems to me that I cannot fill out and complete the 1040 return without a SSN. What do you think?
I'm not trying to rain on your parade but this is slightly misinformation or at least half truths. For example you can't take a deduction for business travel unless it's ordinary and necessary in your business so you will need to justify how you need to do it for your business (its probably less likely to be checked by the IRS but you can't just live your life through a business. That's just tax fraud). You also can't take a loss for rental business against other income unless you can prove it's active which means you pretty much have to do it for a living. I fear that some of your strategies can land people in hot water if they ever get audited and I understand that you are trying to sell a product but I would encourage people to speak with a reputable CPA to assess the risks before implementing these strategies.
My great uncle Alex wrote in 1957 The wolf that comes knocking on many doors just had pups in my kitchen and fortunately I was able to sell them here's the check
Ok, I see your point. But can I know as a small investor, investing in specific Real Estate stock can bring benefits for W2 taxpayers? Can IRS consider Qualified dividends instead of Ordinary Income after holding up to a year? Curious to know
@@sebastianlucas704 REIT dividends are usually taxed as ordinary income, not qualified dividends, even after a year. But you might get a 20% QBI deduction, which helps W2 earners.
The principles spoken about here sounded like what it takes to get to financial nervana except the short term rental thing exclude that sounds like a nightmare to me long term rentals only.
Karlton, I have mad respect for you...but to say poor pay more in taxes is simply 100% untrue...however, I wont pretend to be some guy looking to poke at you...Much respect. You are much needed and you are extremely well spoken...you are awesome!
And what about depreciation recapture? The moment you sell the asset, Uncle Sam takes back all the incentives he “loaned” you. If you want out of the real estate investing game, it’s a hefty price isn’t it?
Love this video and agree with Karlton on everything but would make one change. Taxes come down to both how you make and how you spend your money-since we’re taxed at both ends. Otherwise, great video.
If you’re speaking on a personal home yes you can use it towards itemizing same with charity which wasn’t explained correctly your expenses need to be higher than the standard deduction to itemize but they give you a high standard deduction which is good in the past it was whatever you can itemize now it’s a free $14,600 of income not being taxed
If you’re speaking on owning the rental there’s still benefits you start with a a basis and get depreciation plus a deduction for any repairs plus depreciation on any assets added over I believe $1,250 things like ac unit and refrigerator
Also about the Tax System it favors real estate and business owners. Also if you register as an S-Corp or C- Corp since they will have to put themselves on a reasonable wage for your business industry rate. They pay self employer not self employment tax. Also the former is tax deductible for the owners.
If you have a business that is unrelated to real estate then can you do residential real property that has nothing to do with your business and still write it off? Cuz it sounds like that’s what you are implying here.
You’re 10000% my fav RU-vidr now. I’ve been following for a while to gage your information. Ive watched ALOT of finance/tax RU-vidrs but your videos are top tier. My parents made a lot of money and gave me things. However they didn’t teach me anything about money except “get a job and save.” I also share your videos in the family chat. Thanks!!🙏 great video
oh, but this video misses the "big reveal"....who is a taxpayer? The word taxpayer is defined in the Internal Revenue Code, 26 United States Code 7701 (14) as "The term “taxpayer” means any person subject to any internal revenue tax." But who would that be? Income taxes are in Subtitle A of the Internal Revenue Code. The ONLY code section where the term "liable" is specifically made for the federal income tax under Subtitle A of the Internal Revenue Code is in section 1461. What does that say? Liability for withheld tax- " Every person REQUIRED to DEDUCT and WITHHOLD any tax under this chapter is hereby made LIABLE for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter." So we know that the person who is made LIABLE for the Federal Income tax is a person who is required to withhold tax under Subtitle A. And who might that be? A withholding agent. What is a withholding agent? We must look at the definition section under 26 U.S.C. 7701 (16) because the term Withholding Agent is found there and says: "The term “withholding agent” means any person required to deduct and withhold any tax under the provisions of section 1441, 1442, 1443, or 1461." When you look at those sections, those sections ONLY involve the Withholding of income tax from Non Resident Aliens and Foreign corporations and organizations! So are you a taxpayer? Hmmm, I don't know? Are you a withholding agent? If not, then you are NOT a taxpayer! And speaking of W-2's, as you can see, under the Internal Revenue Code, there is NO INCOME TAX WITHHOLDNG from US Citizens! Only Non Resident Aliens and Foreign Corporations are to have their income taxes withheld from them by the Withholding Agent! The Withholding Agent IS the taxpayer and is made liable for the income tax. Yes that is right, there is NO requirement for Americans to have income taxes withheld from them! No requirement for Amerians to sign W-4 tax withholding forms! Those W-4 forms are 100% voluntary! Participating in Social Security is Voluntary for Americans! www.truth-attack.com
This is a little misleading. It is very hard to be eligible to deduct your real estate losses against W-2 income. You need to be considered a real estate professional, which has a fairly high bar. Otherwise, any losses cannot be used to offset W-2 or 1099 income. Look up the passive activity loss rules. Do not go out and buy a rental property expecting it do this without talking to a qualified CPA.
Thank you for joining me in calling out KD. He is going to get a lot of people in a bind in my opinion. Short term tax planning/cash flow planning to build a gigantic deferred tax liability or make a foolish investment. Seek professional advice
not only that, they must open an llc or s corp, and be able to buy/transfer title property under your business entity which most people don't know, is very difficult with every working components involved with it lol
@@THEtaxstrategistsHas anyone reported him misleading or putting them in a bind? Otherwise, it is a false accusation. Be careful with words that too can be misleading.
It’s a game, right. A $35 trillion deficit. A $30 trillion deficit. If we taxed 100% of the entire GDP we’d barely dent our balance sheet. Take all the money spent on war and troops in foreign countries and use it to reduce taxes.
DEPRECIATION is available even if you pay 100% cash on your real estate investment. "Leverage" /the amount you borrow has NOTHING to do with depreciation!
Appreciate your continued dedication to helping average folks try to build wealth and not get rekt in the process, I love your confidence so keep shrugging off the naysayers. Your experience is clear and I look forward to your pragmatic and bullish viewpoints in a world that’s increasingly easy to get caught up in the constant negativity and bearish sentiment.... Long & short-term trading is generally safer, allowing investors to weather market volatility. I have managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Evelyn Infurna, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
Evelyn goes deeper than just looking at surface-level trends. she explores technical, fundamental, and sentiment analysis, offering a comprehensive perspective on the market..
I don't want I don't know what your platform is. But financial inequality in America has been going on for a long time. Is the haves and the have nots. The rich no matter what you say need to start paying their fair share of taxes. Trickle down economics has never worked and never will. I won't waste any more time listening to you. See ya!
Taxes constitute slavery. System should allow for choice to pay income tax or give up voting. 90% of voters would give up voting if it meant no more income tax . The other 10% would have an easier time electing officials that actually have our best interest in mind.
Rich people don't pay taxes. This is because the tax system allows them to exploit it intentionally. For example, if you donate so much money, or if you take out a loan this is considered a debt. Therefore, Rich people take out 0% interest loans from specific lenders that provide this service. when they take out those loans, they qualify for exemption and that allows them to not pay taxes. So the richest people in America don't pay any taxes at all. Their companies do tho. unless they can manage to reduce or remove that obligation as well. which they do because Trump is a Master of tax evasion. i am sure you heard a lot about him being a bad business man because a lot of his businesses failed. This actually makes him an excellent business man because those businesses were designed and intended to fail in order to benefit his successful businesses and himself in regards to taxes. Trump is actually a huge advocate of refining the tax system to be far simpler and do away with these loopholes that he himself benefits from. Last point. It is hard to get into good real estate when stock brokers, creditors and such are buying up all of the property available. If you happen to own property that they want, they will find a way, any way, to take it from you. They are monopolizing the real estate market.
All this sounds good but majority of people don’t have sufficient credit enough to get these loans and investment properties. This video is pushing people to buy real estate. This is my first video I’ve seen of you and lord I hope you’re not one of those buy my course type of guys
From $37K to $65K that's the minimum range of profit return every month I think it's not a bad one for me, now I have enough to pay bills and take care of my family. ❤️>>
Trading crypto now should be wise, but trading without an expert isn't advisable. I tried trading on my own but keep on losing. I think I'll give her a try
If i had not experienced this myself I would have said this is all lies but I've made withdrawals a few days ago and that's one thing I find difficult and impossible with other brokers.
Believe that Jesus Christ died and resurrected for you by God The Father, and love one another: you shall have eternal life in the world that is to come.
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency, stocks, through the assistance of my discretionary fund manager
