How to Structure Your Passive Income Business (Pay Less TAX)

Toby Mathis Esq | Tax Planning & Asset Protection

Подписаться 344 тыс.

Просмотров 15 тыс.

50% 1

In this enlightening video, we'll explore a critical topic for anyone seeking to maximize their passive income while minimizing their tax burden. Understanding how to structure your passive income business can be a game-changer for your financial future.
🔗 Master Asset Protection: Join our Free Tax & Asset Protection Workshop and learn how to maintain anonymity and protect your assets: aba.link/fae420
🔑 Key Insight: "Make sure you're talking to your accountant." 7:29
Passive income refers to the stream of income that requires minimal to no direct involvement from the earner. It's often associated with investments, properties, or business ventures that, once set up, continue providing a revenue stream without constant oversight or participation. This form of income enables individuals to allocate their time and effort elsewhere while enjoying financial growth.
Passive income is a great way to make money on your terms without working hard. However, it can be challenging to structure your passive income business in a way that reduces your tax burden.
By following these tips, you'll be able to save on your taxes each year and grow your business faster than you ever imagined.
🔔 Don't forget to subscribe for more insights on real estate investing and business strategies!
Show Notes:
0:00 Intro
0:22 3 Types of Income
3:48 Material Participation
5:47 Partnership Example
9:10 Outro
---------------------------------------------------------------------------------------------------------
SUBSCRIBE
aba.link/subscribe
~~~~
FREE TAX & ASSET PROTECTION WORKSHOP
Learn about Real Estate Asset Protection from Clint Coons, Esq., and Toby Mathis, Esq. at our next all-day FREE Live Stream. Our attorneys and specialists will answer all of your questions: Save Your Seat: aba.link/fae420
Infinity Investing
Ready To Make Your Money Work For You? Learn Next Level Passive Income Strategies Through Real Estate & Stock Investing.
Attend our FREE Infinity Investing Workshop 👉 inf.link/c7p
FREE REAL ESTATE INVESTMENT STRATEGY SESSION
Claim Your FREE 45-minute Investment Strategy Session to receive business planning tips and asset protection. 👉 aba.link/lxi
TAX TUESDAY LIVE
Join us every other Tax Tuesday, where you can have your tax questions answered live by our experts entirely FREE. Register Now 👉 aba.link/fvq
OTHER ANDERSON ADVISOR EVENTS
Learn a rich selection of subjects like tax and asset protection, business, investing, and more. Our partners, attorneys, and other skilled experts will help you learn what you need to know in order to better your chances of success in your professional life.
aba.link/tobyevents
~~~~
FINANCIAL PLANNING & TAX RESOURCES
📚 Order Your Copy of "Infinity Investing: How The Rich Get Richer And How You Can Do The Same" Here: 👉👉 👉 aba.link/IIWbook
Order Your Copy of ”Tax-Wise Business Ownership" and find greater success by taking advantage of tax laws for your business. Here 👉 aba.link/tobyshop
Visit Anderson Advisor's website for content, like articles, podcasts, and more that we publish alongside my channel. 👉 aba.link/tobyaba
~~~~
FOLLOW US:
Instagram: aba.link/instagram
Facebook: aba.link/facebook
Twitter: aba.link/twitter
LinkedIn: aba.link/linkedin
TikTok: / tobymathisesq
~~~~
CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545
ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
---------------------------------------------------------------------------------------------------------
The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#businessstructure #passiveincome #businessentity

Опубликовано:

2 июн 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 12

@Jaden48108 7 месяцев назад

Nice comprehensive video. Being a veteran on a retirement salary, as well as disability & taking in social security, I'm cool. But it's also good to learn something new.

@user-zs7ho2zj6u 7 месяцев назад

Which structure would work best for an author planning to publish a book with a publishing company? Thank You. God Is!

@robwin0072 7 месяцев назад

Toby, please clarify my confusion. When you mention taking a dividend with 0% tax from your S Corp, how do you achieve that? Does the S Corp issue a 1099-DIV for you? I'm often puzzled by this. People have discussed taking half as W-2s from the S Corp and the other half as a distribution. How does one take a distribution? is there a form issued to the person taking the distribution for use on a person's tax return (1040)?

@TobyMathis 7 месяцев назад

Great question. Qualified Dividends are taxed at the long-term capital gains rates. However, the come from C-corps, not S-corps. S-Corp profits flow to the shareholders in proportion to their ownership and are taxed at the ordinary tax rates (ie 0-37% federal). Distributions are not generally subject to employment taxes so long a shareholder who works in the business takes a wage or salary. So In your example of someone taxing a W-2 for half and distributions for half, they are doing this because only half of the money they are taking is subject to employment taxes (generally 15.3%). All of those funds are taxable as ordinary income, tho. As far as taking money out, distributions are nothing special - you just write a check or transfer the money. The funds are taxable regardless of whether they are taken out or not because the profits flow down to the shareholder regardless. Hope this helps.

@robwin0072 7 месяцев назад

@@TobyMathis thank you very much

@user-py7wp6nw9h 7 месяцев назад

it is a very good video, from taxes standpoint. The problem is that most people do not have NEARLY enough money to have any kind of passive business. Hence why, if they have any, they invest in passive indexing. I do love your videos, since I learn a lot , but there are many many people out of a job (as we are going through a downturn) and none if this helps them. However , it does haelp the richer part of the population. But love your videos nonetheless

@Steven-vi5nb 7 месяцев назад

Great vid, question: As a 100% owner of a business, can I be a 100% passive owner if I have both 50% active and 50% passive income? For example, I own 2 backhoes, I rent one backhoe out for passive income and I operate my 2nd backhoe for active income all through the same company. How would I be taxed as an s corp?

@dianneharris2870 7 месяцев назад

If I leave my house to to my living trust, when they sell the house is capital gains due? What about a rental property, same question?

@WHITELIONNYC 7 месяцев назад

💪🏻😀👍🏻

@Steven-vi5nb 7 месяцев назад

Can you contribute 100% of profits from a passive business to a deferred compensation plan?

@TobyMathis 7 месяцев назад

Generally no - you cannot fund any retirement plan from passive income unless you can change its form via a management entity.

@Steven-vi5nb 7 месяцев назад

@@TobyMathis Thanks! I have both, a passive disregarded LLC and a Mgmt c corp. If the LLC makes $500k passively, what's the maximum that could shift to the Mgmt co to contribute to a deferred comp plan?