In the past 6 days I have watched this video 8 times!!! Every time I watch it I find something new and different. It is not the same to “see it” than to “watch it”. Every time I watch it the information stays deeper and deeper into my brain, and THAT gives me the opportunity to look for more information and to share it with people, not only with my family and friends! Thanks Abraham for your time and dedication for our growth and development. Rosy!
Tom does a great job in explaining the tax incentives that exist to reduce the amount one pays. He gives a great perspective example of how Trump was able to reduce how much he paid when he received income from the Apprentice show and repositioned those earnings to his golf course. He also covers how good debt helps incentivize further deductions on top of depreciation in real estate debt. He further does a great job in speaking of other types of expenditures/investments in business for energy... it's really about taking the time to truly understand the benefits there are when positioning money the correct way...
Real Estate is one of the best ways to build a business and also have tax benefits from it as well. Another benefit is having a team around you so you can benefit as an employer and be able to provide jobs as a business. Thanks Tom!
The government incentivizes people to make a lot of money and pay very little taxes. We have the rights to learn tax incentives and how they can benefit us for example, real estate , charities, education (529) plan, and businesses. The government wants us to build real estate projects, the government wants to create jobs and they give us tax breaks and deductions.. learning the tax law and paying little taxes is patriotic!!!!
Entrupenurs who take risks in real estate and create jobs in a community and/or economy, receive incentives from the government such as tax breaks and credits. Therefore, the wealthy are able keep more of their money and reinvest to multiply their wealth..thank you for this invaluable information!!
After one year, after people realizing how much Mr. Trump paid in Taxes, we can do the same too. Invest the money you earn. Take advantage of the credits and deductions the govt provides, and pay way much less in taxes.
Yes you can LEGALLY NOT pay taxes because the LAW passed by the 83rd Congress makes the incredible statement that "taxable" years begin December 31,1953 and ended August 16, 1954!!!!
Yes you can, up to $12k a year ($1k monthly) will be tax free, but the child has to be a real employee and not just be on the payroll on paper & the compensation has to be reasonable, you can't just decide to pay them the full $12k for nothing
@@wolfpackreceiving500 Sorry, I'm not 100% sure as it could vary per state, but if you are a small business/freelancer I believe you can use an online payroll software like QB payroll, Gusto or ADP and they'll take care of all the paperwork & taxes Hope you can find that useful
Hi Sir....i am from India...can i join you at your company....is there a way where i can associate and work under you as i am a big fan of you and impressed with your knowledge and i also want to help people like you do.
well business has to separate from personal. If you are talking about about Jeff Bezos and Elon Musk , yes maybe Tesla and Amazon did not pay taxes on a company level but does it mean they paid zero federal taxes on "their" income unless they could write off against personal losses.
As my mother once said, " if you not putting money in the pot you can't take money out the pot". The real issue is not paying taxes but spending tax payer money. Too many wealthy are in public office while not paying taxes. But they love getting paid and taking that pension.
Hi from DESERT RIDGE! Excellent review of Trump's taxes, you expanded on what I had assumed. I've got 16 units and my gf is a realtor, so I'm a small player in the game out here. Thought you might be in Phoenix, but net says Tempe. She had an S. Lechter deal that fell through, oh well, I'll tell her to move our taxes over to you so we get some Rich Dad magic! Once your followers review the Ken McElroy buy real estate stuff, taxes can really them get to the next level. I didn't fully know the debt interest expense deduction either, forgot that too. I actually have a paper loss last year from rehabs and depreciation; sometimes it's nice to take inventory of the blessings. Take care.
Its a great video. The government gives incentives to Business owners for several reasons. Like 1- social incentives that encourages people to do charity and get tax advantage, 2- Economic incentive which business owners are creating jobs and that is why business owners van take tax advantages. The other tax incentives that government gives to people to encourage them to be homeowners and get tax credits which is deducted from their taxable income. So its a wise decision to learn and educate ourselves to take advantage of this government tax incentives.
Thank you so much Tom, I'm 25 years old and started a tourism company in Peru I thank you and Robert for all the knowledgeable share, I have a lot more to learn i thank your macro explanations about tax, economics and so on, hags from Cusco Peru
The tax law is not just for raising government money. If you’re willing to learn and become savvy about these laws there are many ways an average person can save money on taxes. There are social, economic & energy incentives that have been written to benefit you. Starting a business is an example of an economic incentive. To do this involves taking risks. The government is willing to share in those risks as it acknowledges the potential to boost the economy by creating jobs, thus generating tax revenue from new employees
The Institute on Taxation and Economic Policy states that from the period 2008 to 2015 "258 profitable Fortune 500 companies paid an average effective federal income tax rate of 21.2%-while the federal tax rate was 35% for all those years." Furthermore, over that same period, 18 Fortune 500 companies, paid no taxes and a total of 100 companies avoided income taxes in at least one year between the years 2008 and 2015. As mentioned by Tom there are many legal tactics used by business of all sizes ranging from Mom and Pop business to large multi-national corporations that can and do legally reduce or even eliminate taxes entirely. Not mentioned but very prevalent, especially with silicon valley companies is Employee Stock Options. The difference between what the employees pay for a stock and current market value when the options are exercised is claimed as a reduction in taxable income. It's why many companies give out very generous and lucrative stock options like candy at Halloween because it's all about the money, or rather, the tax savings that come to a corporation in doing so. And what about Amazon which for many years hasn't paid any federal taxes on income? For example, according to regulatory filings with the Securities and Exchange Commission they paid zero taxes on profits of $11.2 billion dollars in 2018 and $5.6 billion in 2017. In 2019 Amazon they did pay $162 million in federal income tax expense but deferred $914 million to future years through creative legal tax strategies. Bottom line is the New York Times article and other mainstream media hysteria over Trump's taxes are nothing more than politically spun hit pieces that completely ignores the realities of the real world corporate taxation system; not just in the U.S.A. but around the world. Always consider the source of information and do your due diligence and research and vet the information you hear, read or see especially when it comes from main stream media.
so what you mean to say is that suppose a company gives a stock option to a employee @10 dollars. He buys the options say 100 and then later exercises the stock option when the price is say 100. Then the company can deduct 100@100 i.e. 10k from its taxable income. Right ? Well it does not make sense to me ? From any financial accounting view. Usually stock option plans are at discount to prevailing market prices and there is a lock in period. But to allow a company tax deduction when the employee exercises his stock option plans just does not make any sense. Could you double check on that ? As far as Amazon is concerned Amazon is concerned Amazon's net profit is not in billions of dollars you say. Amazon on a net basis still makes losses or minor profits. Their cloud computing business makes profit but their retail business makes loses. I do not know about their VOD business. So net net Amazon does have to pay taxes. If I am making money on one division but reinvesting it on another division which makes losses one the company level I am still making losses. As far as tax deferment is concerned it is a common strategy. But it can only be done as long as profits are unrealized. Which means somewhere Amazon has unrealized profits. As soon as the profits come on its books it will be accountable for the taxes. It will have to pay for the taxes. You are right in saying that it is creative legal strategy and with multiple divisions and operation in multiple companies you have to be creatively legal but it is still honest. The difference here is between the corporation and individual. If after being the CEO of a trillion dollar company Jeff Bezos paid 750 dollars it would have been outrageous. But Bezos must have paid some taxes. BTW could tell me from SEC filing what is the compensation he took home those years ?
Great video!! It is a true eye opener. Im currently taking investment classes at Strategic Legacy Investors Group. I am learning so much. My favorite note from this video is when Tom Wheelwright says "tax law, if you take risk the government will share that risk"...very true. I will be listening to your podcast, Thank you!
@Tom, thanks for this video, I am new into this so please bear with me. I can get the depreciation concept, although as an individual lets say if you are the only administrator of your company, you need to pay taxes as an employee (40%), correct ? So indeed, you are increasing your income because you reinvest without taxes, but you pay as an individual. Correct me if I am wrong.
Nobody's talking about patriotism. Pay attention. I said he should not be taking tax payer money. He can't hold office. If you doing this stay out of public office.
Avis Smith You realize he hasn’t taken any pay during his time in office right? He’s donated all of it. His net worth has also gone done roughly a billion dollars since his time in office.
Let me research again to be sure. Either way he refused to release his taxes. He shouldnt be in office if he's not paying taxes. Maryland's governor has 22 LLCs the last I heard on Bloomberg? I think he's getting his salary and will get that pension. I think if you are going to use the tax code stay out of office. Volunteer.
