How To Pay So Little Taxes it Feels Like Cheating
Published: 2025-09-02
Status:
Available
|
Analyzed
Published: 2025-09-02
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The IRS rewards risk-taking with lower tax rates, while W2 job income is subject to the highest 'ordinary' tax rates.
"The tax code says if you take risks with your money, you are going to be rewarded with lower tax rates. But if you don't take risks, which in the IRS means you just work a W2 job, then you're going to be paying the highest tax rates known as ordinary tax rates."
Pending
For long-term capital gains, tax rates are 0% up to $47k, 15% up to $519k, and 20% above $519k.
"The long-term capital gains tax rates at the time I'm recording this video are 0% on the first $47,000. Then 15% up to $519,000. And then your top tax rate here is 20% on everything you earn over $519,000."
Pending
Stock market losses generally cannot offset job income, but losses under $3,000 can.
"If you have a loss from the stock market, you cannot use your stock market loss to offset your job income. But there's an exception. If it's under $3,000, you can take the stock market loss and offset your active income from your job."
Pending
To avoid the wash sale rule and still claim a tax loss, one must wait 31 days before repurchasing the same stock.
"The IRS does not allow you to do that because if you buy the substantially same stock again within 30 days, they're not going to allow you to take this tax write off. But if you wait 31 days, then yes, you can absolutely go back and buy the stock B again."
Pending
Roth IRA contributions are disallowed for single filers earning over $150,000 and married couples filing jointly earning over $226,000.
"They say that you cannot open up a Roth IRA if you make over $150,000 a year as a single filer or $226,000 a year as a married couple filing jointly."
Pending
A backdoor IRA involves contributing after-tax dollars to a traditional IRA and then converting it to a Roth IRA to bypass income limits.
"The way a backdoor IRA works is you're going to take your after tax dollars just like you would for a Roth IRA, but you're going to take these after tax dollars and then you're going to dump it into a traditional IRA. Once you put it into this traditional IRA, now you're going to convert this into a Roth IRA."
Pending
Self-employed individuals can contribute up to 25% of their income, capped at $69,000 in 2025, to a SEP IRA.
"For those of you that are self-employed, you can qualify to open up a SE IRA, which says that you can invest up to 25% of your income, up to $69,000 a year in 2025 into this IRA."
Pending
Single-family home real estate investments qualify for a depreciation write-off calculated by dividing the building value by 27.5 years, resulting in approximately $6,100 in this example.
"And when you are investing in single family houses, that write off is 127 and a half of the property... you take $170,000 and you divide it by 27.5. And what it says is I get to qualify for a little bit more than a $6,000 write off every year."
Pending
Expenses such as cell phones, laptops, and vehicle costs for property visits can be written off for real estate businesses.
"I might need a cell phone to run my rental property business... I might need a laptop or a computer to analyze all my real estate finances. That could be a write off. I might need gas from my truck to go to and from the property... I might need a truck to go see my property."
Pending
Business trips, including those to Hawaii to scout properties, can be deductible business expenses.
"if you're going to Hawaii to meet a realtor to look at some property, well, now you're going there with the business mindset to go and look at properties and those expenses for that business trip are now a write off."
Pending
Accelerated depreciation allows for larger depreciation deductions in the early years of an investment property, potentially creating a tax loss despite actual profit.
"you can find ways with your accountant to take a larger depreciation in the early years of investment property. That way, you're actually having a tax loss. Again, the money is in your bank account. You have an actual profit, but it's a tax loss."
Pending
High earners can still offset W2 income with real estate paper losses by qualifying as a real estate professional.
"And if you say, 'Well, Desperate, I make even more than that.' Yes, there are ways to still qualify for that write-off from your real estate paper loss against your W2 job income. How? Well, number one, you can qualify as a real estate professional."
Pending
Losses from short-term rentals (like Airbnbs) can offset active income (job or business) without the same income limitations as other real estate losses.
"But the paper loss from your active rental, your Airbnb, your short-term rental can be used to offset your active income. That could be your business's income. It could be your W2 job income. and you don't have the same income requirements."
Pending
Expenses for phones, laptops, and Wi-Fi can be deducted as business write-offs for influencers.
"You might have to pay for a phone. You might have to pay for a laptop. You might have to pay for Wi-Fi. Maybe you need a couple other things. All that stuff can be a tax write off for your business."
Pending
Section 179 allows for the deduction of heavy vehicles (over 6,000 lbs) if they are justifiable business expenses, such as a G-Wagon for an influencer.
"section 179 that says you can deduct heavy vehicles over £6,000 if it is a justifiable business expense. And this is where every specialized accountant tax attorney is going to be able to ask this specific question which is how can your Gwagon be a business expense?"
Pending
Small businesses can claim a 20% Qualified Business Income (QBI) deduction on their profits, reducing taxable income by that amount.
"the 20% QBI deduction. qualified business income deduction. And what it says is that normally if you make $100,000 in your business, you're going to have to pay this ordinary tax rates right here... you get to take a $20,000 write off. Why? Because that's what the tax code says. It's called QBI."
Pending