How The Wealthy Pay No Taxes (And How You Can Too) | Jaspreet Singh

"So the first thing that every wealthy person tries to do which is something that anybody can do is they work to recategorize their income. They don't just work for this ordinary income; they invest their money into assets. That way they can earn this type of income. Portfolio income is when you own an investment and you sell it for profit. This is like your stock market investment income, assuming you own your investments for longer than a year. And your passive income is things like rental checks with real estate properties. This is a different type of investment income and it comes with its own set of tax deductions. So wealthy people are working to move their income from here to here because this comes with bigger tax breaks."

"If you own a business, this could be a real estate investment business, this could be a business that you created, this could be a business that you bought. Now, this is completely flipped. Now, the way that it works is, you make money from your business, then you pay your expenses, right? Here. And then you pay taxes on whatever is left because now these expenses are deductions that you can take against your gross income, which is why you have a much slower tax liability, a lower taxable income, because you're paying for your expenses first. Now, the question is, what can these expenses be? Well, these expenses have to be used inside of your business to help grow your business."

"Now for the needed to buy a truck for my business, if it classifies under the right exemptions because there are deduction out there right now that will allow you to deduct the value of a heavy vehicle against your income. So if I went out and bought a $150,000 G wagon, I could deduct most of the value of the G wagon against my income. Now, again, I have to justify that I'm using it in my business, but this is where now clever accounting comes into play."

"The Elon method, which is now where you don't take out an income from your business, but rather you use debt to finance your lifestyle. So one of the things that Elon made really popular was the fact that he doesn't earn an income, a salary income from Tesla. He gets paid in stock options. What that means is he owns a lot of Tesla stock, billions and billions of dollars worth of Tesla stock, but this isn't cash in his bank account. So now if he wanted to actually receive any cash, he had two options: he could one, go out and sell this Tesla stock, but as soon as he sold this Tesla stock, he'd have a huge taxable income because he created Tesla. So his basis in the Tesla stock is very low. So if he sold his Tesla stock for a huge profit, which is what he'd be doing, he'd have a big taxable income. Option number two is he can refinance out of his Tesla stock. He can use debt against the value of his Tesla stock stock and use his debt to pay for his lifestyle because debt isn't taxable."

"So now you have a $1 million in your pocket tax free because now if you were to go and refinance your home, that refinance, that debt that you get, that isn't taxable. It's debt. Debt isn't tax taxable. So you're just pulling cash out tax-free with debt. And now you have a million dollars to spend. Now you can use this million dollars to buy a home, you can buy a car, you can buy food, and you can live your life and you don't have to pay any money in taxes."

"The second way to use debt would be to buy bigger deductions. Let me give you an example. So let's assume now that you own a business and this business makes $100,000 of profit this year. This would be your taxable income, assuming that you have no other deductions. But let's assume now that you want to go out and 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 G wagon, but now you also get the tax write off for the entire G wagon. 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... 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 grand worth of taxable income, but you have $80,000 in your bank account."

"So now you have zero dollars of taxable income, but you still have a lot of money left over in this deduction. Well, now you have a loss because now you get to tell the IRS, 'Okay, I didn't actually have any taxable income. In fact, I had a $55,000 loss in my business...' Now next year, you might make a little bit more money, let's assume next year that you made $35,000 in your business. 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... Then the year after that, you get to take the leftover from this loss on your income again. Now you can start to see how some business owners will be able to use debt strategically to carry forward losses against their income, and this can get much bigger when the dollars are bigger too."

"Let's assume that you made $2 million this year from your business. This is the profit, this is the cash in your bank account. Now, if you were to go out and buy, let's just say a $20 million plane. Well, now what are you going to do? You're going to put down $2 million to buy this $20 million plane and you're going to finance the other $18 million. So this is $18 million worth of debt. And now the IRS has some special tax provisions on planes which will allow you to deduct pretty much the entire plane this year. Which means now you get to tell the IRS, 'Hey, I made $2 million minus these deductions, which is this $20 million plane that I just bought,' even though you only put down $2 million. So that means you have $18 million in taxable income... Now next year, if you made $4 million, you just carry forward this loss. And the year after that, you can carry forward the loss again. And you do that again and again and again."

"What many rich people do who have mastered debt and taxes is they follow a system called BBD, which stands for Buy, Borrow, Die. This system allows many rich people to now borrow money and live their life wealthy and pay zero dollars in taxes legally."

"So what he does instead is he borrows against these shares. He takes out debt. If he has a million dollar worth of Tesla stock, he can go to the bank and say, 'Hey, how about you give me a loan for half a million dollar, and you can use my Tesla stock as collateral.' He's essentially refinancing out of his Tesla stock. So now what happens is he has cash in his hand, which is debt, and now all he has to do is pay some money back plus interest. Now, this works great, especially when you're in an environment with such low interest rates because now he can borrow money at 3, 4, 5% a year while his stock can grow by 10% a year. So he's making a profit by borrowing this debt, and he gets to borrow the debt tax-free."

"Real estate offers some of the most favorable tax breaks that our tax code has to offer because they offer something called the depreciation deduction, which says that every single year you get to depreciate the value of the building on your real estate. So let's assume that 20% of the cost, so $200,000 is the cost of the land of what you bought, and the other 80%, the $800,000 is for the actual building... Well, if it's an apartment complex, you get to deduct 1/39th of that amount. So 1/39th of $800,000 every single year over the next 39 years. That means you will get to take a deduction of right around $220,500 every year for 39 years."

"Now you can go back to the bank and say, 'Hey, we drove up our profits, before we were only making $70,000 a year, that's when we were worth a million dollars, but now we are making $100,000 a year.' Now the bank is going to say, 'Oh yeah, you've definitely increased the value of your property.' So we don't think worth a million dollars any were; we think that your apartment complex is worth $1.5 million. So now what you get to do is you get to refinance against this property. So if you do the same thing and you pull out some cash, let's assume that you pull out $1.1 million... And that still leaves $100,000 that now you can put in your pocket for putting this deal together, and remember this is tax-free because this is debt. This isn't income."

"However, if you take this new $200,000, take the $100,000 that you got from the money that you put in, and you take the $100,000 profit, and you go out and buy a bigger property. This might mean a bigger home, a bigger investment property. If you go out and invest all this money into a real estate investment, a like-kind exchange. Well, now you get to defer all of these taxes. You don't have to pay any taxes on this profit and now you own a bigger property, which means you're going to be making more money, you get a bigger tax deduction and now you get bigger cash flows. And guess what? Well, then you can double this property to $400,000 and then you do it all over again... The IRS lets you not pay taxes on it when you do that. If you do this exchange, which is called the 1031 exchange. The 1031 exchange lets you flip real estate property to real estate property without having to pay taxes on the sale."

"If you own a home, you can sell your home and you can profit up to $250,000 if you're an individual or $500,000 if you are a married person, and this money that you put in your pocket is completely tax-free. That now you can put in your pocket, you can go out and spend, you can go out and use for a bigger home or you can use this money to invest in something else. The key for this deduction to work is you have to live in this home as your primary residence for at least 2 years before you sell it."

"The Inflation Reduction Act and one of the provisions in the Inflation Reduction Act was that if you spend money to make your home more energy efficient, you can get a tax credit for that. This tax credit is available from now until 2032 and it gives you a 30% tax credit on energy efficient improvements on your home. Now, of course, this includes things like solar panels, but it also includes things like replacing your exterior windows, replacing your exterior door, improving your AC and improving your furnace."

"I spent maybe two months or so in San Diego. I spent about a month, month and a half in Manhattan. And when I went, I lived there with my business partner. So now me and my business partner are living in Airbnb. We had to go fly out to these places and then I had to go and work there. I had to eat at restaurants, I had to meet with people and do a lot of business there because I went there for business. But along the way, I also got to spend time in San Diego and Manhattan, which are beautiful cities. Now, I should also clarify that my business partner is my wife. And so now me and my wife got to go to these places like San Diego. And there was a tax deduction. Yes, I was there for business. I was meeting a lot of people, I was doing a lot of interviews, I was working with a lot of people. I was there for work, but the expense to go there and live there now became a tax write off because, well, I had to go there for work. This was a deduction. Same with meals. In 2022, there was a 100% meals deduction because we were just coming out of the pandemic, which meant if you went out and ate at a restaurant and you had a business meeting, if you were eating with your employees, if you were eating with business partners, if you were meeting with other clients, well, now these meals that you're eating at these restaurants are a 100% write-off."

"Another popular deduction right now is the Section 179 deduction, which is a heavy vehicle deduction. Essentially, what it says is that if you need to buy a heavy vehicle for your business, well, then you can write off a big chunk of that vehicle. Right now, like in 2022, my accountant called me and asked me, 'Just B, what are your thoughts about G wagons?' I was like, 'Well, they're nice cars.' What do you mean? He's like, 'I think you should buy a G wagon.' Like, why are you saying that? And he said, 'Well, because we have the Section 179 deduction, which says if you go out and buy a heavy vehicle like a G wagon, then you can write off a big chunk of the vehicle over your taxable income.' So you can reduce your taxable income because now you have a G wagon. And I was like, 'Well, I don't really need a G wagon. I don't really want a G wagon. I don't know if I should do that.' He said, 'Look, you are an influencer. You have this brand on social media, and because you do well, then you can justify to the IRS that you need a G wagon to justify this lifestyle.' Now, personally, I'm not going to go out and buy a G wagon just for the tax purposes because again, like I said before, I don't want to just spend my money to spend it. If I'm going to spend my money, I want to do it in a way that's actually going to earn me a return and help me build my business and help the business earn more money over the long term. But these are things that you're seeing people do, and these are potential claims and deductions that you can make if you follow this system."

"The second thing that you can do is maximize tax deferred accounts. This might be something like a 401k or an IRA or a SEP IRA or a HSA. 401ks along with 403bs and IRAs are tax deferred retirement accounts, meaning they are investment accounts that you can put your money into where you can kind of grow your money tax-free. Now, there are some rules and restrictions with this. The whole idea being if you use a traditional 401k or a traditional IRA, you can invest your money into these accounts tax-free, meaning when you put your money in, you don't have to pay taxes on the income. So if you take $5,000 from your income and you put this money into your traditional 401k or your traditional IRA, you don't have to pay any taxes on that $5,000 today. That $5,000 can then grow over the course of your career, and then when you're ready to retire and you pull your money out, that's when you'll pay taxes on a traditional 401k or a traditional IRA. Now, if you use a Roth 401k or a Roth IRA, now you're going to pay taxes when you put your money in. So if you take that $5,000 and you put it into your Roth IRA or a Roth 401k, you're going to pay taxes on the $5,000 today, and then you'll have the after-tax dollars actually being invested, but now your money can grow tax-free, and then when you pull your money out, you can generally pull your money out tax-free as well."

"Now, if you have losses, you can use some of your losses to negate some of your wins when it comes to investing. Now, this is where the natural next question is, okay, if I had this loss in my stock market investments, can I use this loss to offset some of my taxable income for my job? And the answer is, well, well, it kind of depends. The IRS generally likes to compare apples to apples. And so what that means is first, they're going to categorize your income... The general rule is that you can deduct up to $3,000 worth of capital losses against other types of income if you are married. If you are single, filing a single tax return, then it's $1,500. So if you have a $1,500 short-term loss, you can deduct up to $3,000 worth of capital losses on your investments against your ordinary income."

"If you own a business or if you're a side Hustler or you're an independent contractor, now you have opened up the doors of tax deduction possibilities. When you only earn your money from your job, your financial statement looks something like this: You earn money, and then you pay taxes, and then you can spend whatever is left. But if you own a business or if you're a side Hustler or you're an independent contractor, now you have a different financial statement because now you earn just like before, but then you can spend your money, and then you only pay taxes on whatever is left. Things switch because of how you earn your money because the government and the IRS want to incentivize you to invest in your growth and they incentivize you to go out and take a risk and start a side hustle and start a business because, well, it's risky, and so you get rewarded with less taxes."

"I use my cell phone and my computer in business, so when I go out and I buy a cell phone and my computer, this is a business expense because I need to use it in my business, so I get to deduct it against my taxes. My team and I went out for lunch today, that was another tax deduction. I just showed you an interview clip that I made with Robert Kiyosaki. Well, in order for me to make that clip, I had to fly out to Scottsdale, Arizona... In order to record that, I needed to have a hotel room, I needed to have food, I needed to have a car. All of those things were a tax deduction. And along with that, I got a trip to Arizona. See, I make money, and then I get to spend money on things like my cell phone, my laptop, my food, and my trips. And then after what's left, that's what I pay taxes on."

"So again, my accountant says that yeah, you don't need a G wagon to run your business, but what we could potentially claim is that because you have a lifestyle brand, it goes with the lifestyle. So there is a claim that we can make that you as an influencer need a G wagon to help you run your personal brand. Now, personally, I'm not going to go out and buy a G wagon just for the tax purposes because again, like I said before, I don't want to just spend my money to spend it. If I'm going to spend my money, I want to do it in a way that's actually going to earn me a return and help me build my business and help the business earn more money over the long term. But these are things that you're seeing people do, and these are potential claims and deductions that you can make if you follow this system."

"Long-term capital gains rates are a lower tax rate that you get when you invest your money, and I mean, actually invest your money for longer than a year. If you're just trading your money, meaning you're holding investments for less than a year, you don't get those tax breaks. Now, the money that you earn from your investments, your investments that you hold onto less than a year are going to be taxed at the same tax rates that you would have gotten if you earned this money from a job... if you make $44,000 in your capital gains, long-term capital gains, your tax rate is zero. And the highest tax rate in 2022 on long-term capital gains rates is 20%. So if you make a million dollars from your investments, the most you're going to pay is 20% in taxes."

"So now we know that the value of this building is $800,000. You take the $800,000, you divide it by 39, which is just over $20,000. Which means that now you get to take an additional $20,000 write-off just because now your building is one year older. This is what's called a paper deduction. You have $40,000 in your bank account, even though this property made you $50,000, then you had your other operating expenses, so now you made $40,000. You take this $20,000 depreciation deduction, which is only on paper, and then you tell the IRS, 'Hey, I only had $20,000 worth of taxable income.'"

"The fifth thing that you can do is you can earn money from real estate investments. If you go out and you buy this home, and you keep the numbers round and easy to understand, let's assume that this home costs $100,000... You have $3,000 in your pocket. Now you're going to have to tell the IRS that, 'Hey, I made $3,000 of income.' And you're going to have to pay taxes on this $33,000 worth of profit, except you get another tax break as a real estate investor. You get to tell the IRS that, 'Hey, this property that I bought is one year older, so I deserve a write-off for that.' That is called the depreciation deduction... so now you are left on taxes on paper with $600 of income. You pay taxes on $600, which means your tax bill is zero."

"If you own a home, you can sell your home and you can profit up to $250,000 if you're an individual or $500,000 if you are a married person, and this money that you put in your pocket is completely tax-free. That now you can put in your pocket, you can go out and spend, you can go out and use for a bigger home or you can use this money to invest in something else. The key for this deduction to work is you have to live in this home as your primary residence for at least 2 years before you sell it."

"However, if you take this new $200,000, take the $100,000 that you got from the money that you put in, and you take the $100,000 profit, and you go out and buy a bigger property. This might mean a bigger home, a bigger investment property. If you go out and invest all this money into a real estate investment, a like-kind exchange. Well, now you get to defer all of these taxes. You don't have to pay any taxes on this profit and now you own a bigger property, which means you're going to be making more money, you get a bigger tax deduction and now you get bigger cash flows."

"So now you have $1 million in your pocket tax-free because now if you were to go and refinance your home, that refinance, that debt that you get, that isn't taxable. It's debt. Debt isn't tax taxable. So you're just pulling cash out tax-free with debt. And now you have a million dollars to spend. Now you can use this million dollars to buy a home, you can buy a car, you can buy food, and you can live your life and you don't have to pay any money in taxes."

"If you own a business or if you're a side Hustler or you're an independent contractor, now you have opened up the doors of tax deduction possibilities. When you only earn your money from your job, your financial statement looks something like this: You earn money, and then you pay taxes, and then you can spend whatever is left. But if you own a business or if you're a side Hustler or you're an independent contractor, now you have a different financial statement because now you earn just like before, but then you can spend your money, and then you only pay taxes on whatever is left. Things switch because of how you earn your money because the government and the IRS want to incentivize you to invest in your growth and they incentivize you to go out and take a risk and start a side hustle and start a business because, well, it's risky, and so you get rewarded with less taxes."

"I use my cell phone and my computer in business, so when I go out and I buy a cell phone and my computer, this is a business expense because I need to use it in my business, so I get to deduct it against my taxes. My team and I went out for lunch today, that was another tax deduction. I just showed you an interview clip that I made with Robert Kiyosaki. Well, in order for me to make that clip, I had to fly out to Scottsdale, Arizona... In order to record that, I needed to have a hotel room, I needed to have food, I needed to have a car. All of those things were a tax deduction. And along with that, I got a trip to Arizona. See, I make money, and then I get to spend money on things like my cell phone, my laptop, my food, and my trips. And then after what's left, that's what I pay taxes on."

"So again, my accountant says that yeah, you don't need a G wagon to run your business, but what we could potentially claim is that because you have a lifestyle brand, it goes with the lifestyle. So there is a claim that we can make that you as an influencer need a G wagon to help you run your personal brand. Now, personally, I'm not going to go out and buy a G wagon just for the tax purposes because again, like I said before, I don't want to just spend my money to spend it. If I'm going to spend my money, I want to do it in a way that's actually going to earn me a return and help me build my business and help the business earn more money over the long term. But these are things that you're seeing people do, and these are potential claims and deductions that you can make if you follow this system."

"Long-term capital gains rates are a lower tax rate that you get when you invest your money, and I mean, actually invest your money for longer than a year. If you're just trading your money, meaning you're holding investments for less than a year, you don't get those tax breaks. Now, the money that you earn from your investments, your investments that you hold onto less than a year are going to be taxed at the same tax rates that you would have gotten if you earned this money from a job... if you make $44,000 in your capital gains, long-term capital gains, your tax rate is zero. And the highest tax rate in 2022 on long-term capital gains rates is 20%. So if you make a million dollars from your investments, the most you're going to pay is 20% in taxes."

"So now we know that the value of this building is $800,000. You take the $800,000, you divide it by 39, which is just over $20,000. Which means that now you get to take an additional $20,000 write-off just because now your building is one year older. This is what's called a paper deduction. You have $40,000 in your bank account, even though this property made you $50,000, then you had your other operating expenses, so now you made $40,000. You take this $20,000 depreciation deduction, which is only on paper, and then you tell the IRS, 'Hey, I only had $20,000 worth of taxable income.'"

"The fifth thing that you can do is you can earn money from real estate investments. If you go out and you buy this home, and you keep the numbers round and easy to understand, let's assume that this home costs $100,000... You have $3,000 in your pocket. Now you're going to have to tell the IRS that, 'Hey, I made $3,000 of income.' And you're going to have to pay taxes on this $33,000 worth of profit, except you get another tax break as a real estate investor. You get to tell the IRS that, 'Hey, this property that I bought is one year older, so I deserve a write-off for that.' That is called the depreciation deduction... so now you are left on taxes on paper with $600 of income. You pay taxes on $600, which means your tax bill is zero."

"If you own a home, you can sell your home and you can profit up to $250,000 if you're an individual or $500,000 if you are a married person, and this money that you put in your pocket is completely tax-free. That now you can put in your pocket, you can go out and spend, you can go out and use for a bigger home or you can use this money to invest in something else. The key for this deduction to work is you have to live in this home as your primary residence for at least 2 years before you sell it."

"However, if you take this new $200,000, take the $100,000 that you got from the money that you put in, and you take the $100,000 profit, and you go out and buy a bigger property. This might mean a bigger home, a bigger investment property. If you go out and invest all this money into a real estate investment, a like-kind exchange. Well, now you get to defer all of these taxes. You don't have to pay any taxes on this profit and now you own a bigger property, which means you're going to be making more money, you get a bigger tax deduction and now you get bigger cash flows."

"So now you have $1 million in your pocket tax-free because now if you were to go and refinance your home, that refinance, that debt that you get, that isn't taxable. It's debt. Debt isn't tax taxable. So you're just pulling cash out tax-free with debt. And now you have a million dollars to spend. Now you can use this million dollars to buy a home, you can buy a car, you can buy food, and you can live your life and you don't have to pay any money in taxes."

"If you own a business or if you're a side Hustler or you're an independent contractor, now you have opened up the doors of tax deduction possibilities. When you only earn your money from your job, your financial statement looks something like this: You earn money, and then you pay taxes, and then you can spend whatever is left. But if you own a business or if you're a side Hustler or you're an independent contractor, now you have a different financial statement because now you earn just like before, but then you can spend your money, and then you only pay taxes on whatever is left. Things switch because of how you earn your money because the government and the IRS want to incentivize you to invest in your growth and they incentivize you to go out and take a risk and start a side hustle and start a business because, well, it's risky, and so you get rewarded with less taxes."

"I use my cell phone and my computer in business, so when I go out and I buy a cell phone and my computer, this is a business expense because I need to use it in my business, so I get to deduct it against my taxes. My team and I went out for lunch today, that was another tax deduction. I just showed you an interview clip that I made with Robert Kiyosaki. Well, in order for me to make that clip, I had to fly out to Scottsdale, Arizona... In order to record that, I needed to have a hotel room, I needed to have food, I needed to have a car. All of those things were a tax deduction. And along with that, I got a trip to Arizona. See, I make money, and then I get to spend money on things like my cell phone, my laptop, my food, and my trips. And then after what's left, that's what I pay taxes on."

"So again, my accountant says that yeah, you don't need a G wagon to run your business, but what we could potentially claim is that because you have a lifestyle brand, it goes with the lifestyle. So there is a claim that we can make that you as an influencer need a G wagon to help you run your personal brand. Now, personally, I'm not going to go out and buy a G wagon just for the tax purposes because again, like I said before, I don't want to just spend my money to spend it. If I'm going to spend my money, I want to do it in a way that's actually going to earn me a return and help me build my business and help the business earn more money over the long term. But these are things that you're seeing people do, and these are potential claims and deductions that you can make if you follow this system."

"Long-term capital gains rates are a lower tax rate that you get when you invest your money, and I mean, actually invest your money for longer than a year. If you're just trading your money, meaning you're holding investments for less than a year, you don't get those tax breaks. Now, the money that you earn from your investments, your investments that you hold onto less than a year are going to be taxed at the same tax rates that you would have gotten if you earned this money from a job... if you make $44,000 in your capital gains, long-term capital gains, your tax rate is zero. And the highest tax rate in 2022 on long-term capital gains rates is 20%. So if you make a million dollars from your investments, the most you're going to pay is 20% in taxes."

"So now we know that the value of this building is $800,000. You take the $800,000, you divide it by 39, which is just over $20,000. Which means that now you get to take an additional $20,000 write-off just because now your building is one year older. This is what's called a paper deduction. You have $40,000 in your bank account, even though this property made you $50,000, then you had your other operating expenses, so now you made $40,000. You take this $20,000 depreciation deduction, which is only on paper, and then you tell the IRS, 'Hey, I only had $20,000 worth of taxable income.'"

"The fifth thing that you can do is you can earn money from real estate investments. If you go out and you buy this home, and you keep the numbers round and easy to understand, let's assume that this home costs $100,000... You have $3,000 in your pocket. Now you're going to have to tell the IRS that, 'Hey, I made $3,000 of income.' And you're going to have to pay taxes on this $33,000 worth of profit, except you get another tax break as a real estate investor. You get to tell the IRS that, 'Hey, this property that I bought is one year older, so I deserve a write-off for that.' That is called the depreciation deduction... so now you are left on taxes on paper with $600 of income. You pay taxes on $600, which means your tax bill is zero."

"If you own a home, you can sell your home and you can profit up to $250,000 if you're an individual or $500,000 if you are a married person, and this money that you put in your pocket is completely tax-free. That now you can put in your pocket, you can go out and spend, you can go out and use for a bigger home or you can use this money to invest in something else. The key for this deduction to work is you have to live in this home as your primary residence for at least 2 years before you sell it."

"However, if you take this new $200,000, take the $100,000 that you got from the money that you put in, and you take the $100,000 profit, and you go out and buy a bigger property. This might mean a bigger home, a bigger investment property. If you go out and invest all this money into a real estate investment, a like-kind exchange. Well, now you get to defer all of these taxes. You don't have to pay any taxes on this profit and now you own a bigger property, which means you're going to be making more money, you get a bigger tax deduction and now you get bigger cash flows."

"I own a business I need a laptop to run my business so my laptop was an expense that I get to deduct from my income before paying taxes."

"I had to go to San Diego last year I had to go to Manhattan last year I spent about two months in San Diego and about a month month and a half in Manhattan last year both of those were expenses I got to expense my travel my flight my Airbnb my meals all these things were expenses that I got to deduct from my income before my taxable income"

"if you wanted to buy a truck for my business if it classifies under the right exemptions because there are deduction out there right now that will allow you to deduct the value of a heavy vehicle against your income so if I went out and bought a $150,000 G wagon I could deduct most of the value of the G wagon against my income"

"many rich people who have mastered debt and taxes is they follow a system called b b d which stands for buy borrow die"

"he goes to the bank and he told them hey I have the stock worth a million dollar just for example give me a loan for $100,000 the banks were happy to do that because then the banks would make 6% interest and now all Elon Musk has to do is make sure that his stock is growing faster than the interest that he's paying"

"in 2022 there was a 100% meals deduction because we were just coming out of the pandemic which meant if you went out and ate at a restaurant and you had a business meeting if you were eating with your employees if you were eating with business partners if you're meeting with other clients well now these meals that you're eating at these restaurants are a 100% write-off"

"Section 179 says that you can go out and buy business equipment and deduct it against your taxes but the reason why this is so different and unique right now in 2022 is that there's a special provision that says that until January 1st 2023 if you go out and you buy a heavy car for your business that weighs over 6,000 pounds you can deduct 100% of that purchase price against your taxes this year"

"long-term capital gains rates are a lower tax rate that you get when you invest your money and I mean actually invest your money for longer than a year if you're just trading your money meaning you're holding Investments for less than a year you don't get those tax breaks"

"you get to tell the IRS hey my property is a little bit older and because my property is a little bit older I deserve a tax break even if the value of your property is going up so now you will get to tell the IRS in this case that because your property is older you should get a $3600 tax deduction this is only on your taxes which means that in your tax return you get to tell the IRS that you made a whole $600"

"if you go out and invest all this money into a real estate investment a like kind exchange well now you get to defer all of these taxes you don't have to pay any taxes on this profit and now you own a bigger property which means you're going to be making more money you get a bigger tax deduction and now you get bigger cash flows"

"if you own a home you can sell your home and you can profit up to $250,000 if you're an individual or $500,000 if you are a married person and this money that you put in your pocket pocket is completely taxfree"

"If you're watching this video when it goes live I will be on a two-month business trip travel where I'll be staying in San Diego with my business partner working on a whole bunch of different things... This is a tax deduction and it reduces my taxable income."

"this tax credit is available from now until 2032 and it gives you a 30% tax credit on energy efficient improvements on your home"