ilmscore | Prediction Details
"Now, let's assume that you want to buy that G Wagon and you want to be able to deduct this G Wagon against your income. Well, if a G Wagon costs, let's just say, $100,000, well, that means you're going to be out all of your cash if you buy the G Wagon with cash. Well, option number two is you put down $20,000 and now you finance the other $80,000. If you were to finance the other $80,000, now you only put down 20 grand, which means you still have 80 grand in your bank account and now you have a Gwagon, but now you also get the tax write off for the entire Gwagon. Now, let's assume that you use 80% of the G-Wagon for your business and you use 20% of the G Wagon for your personal life. [...] So, the Gwagon is primarily business use and some of it is for your personal life. Now, what you get is an 80% deduction on the value of the G Wagon against your taxable income. 80% of the $100,000 G Wagon is an $80,000 deduction against your taxable income. So now you get an $80,000 deduction against your $100,000 income. Meaning, you only have $20,000 worth of taxable income, but you have $80,000 in your bank account. [...] But you have $5,000 in your bank account right now. You tell the IRS that you have a $55,000 loss because you could deduct 80% of the value of this G Wagon. Now, next year you might make a little bit more money. Let's assume next year that you made $35,000 in your business. Nice. Well, now you tell the IRS, 'Hey, IRS, I made $35,000 in my business this year, but last year I lost $55,000. So now you deduct this against this and again you have $0 of taxable income because now you had $35,000 of profit which is in your bank account. This plus this means you have $40,000 in your bank account but again $0 worth of taxable income because you get to carry forward this loss."
By Minority Mindset | March 3, 2024 | Pending
From video
MASTERCLASS: The SECRET To Never Be Broke Again 01:05:10 - 01:09:44
Interpreted Prediction
By financing a business asset (like a $100,000 G-Wagon with an $80,000 loan and $20,000 down payment) and using it 80% for business, one can claim an $80,000 deduction. If income is lower than the deduction, it creates a business loss that can be carried forward to offset future income.

Prediction Details

Topic
Loss Carryforward

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