These 7 Investments Will Reduce Your Taxes Immediately
Vložit
- čas přidán 14. 05. 2024
- Tax Deductible Investments That Will Reduce Taxes Immediately.
It is very hard to build lasting wealth when you are giving half of your income away to Uncle Sam every single year.
When earn high-income, you have to fight taxes to keep what you earn.
It’s a never ending battle. But fortunately, there is a way to do both - You can build wealth AND reduce your taxes at the same time.
The ultra wealthy understand this and are able to pay almost 0% of their income in taxes, but… you don’t have to be ultra wealthy to accomplish this.
You just need to understand tax-deductible investments. Or, in other words, investments that can reduce your taxes.
And that’s what today’s episode is all about - I am going to give you the top 7 tax-deductible investments that you can make to reduce your taxes and build your wealth.
How Taxes Disrupt Wealth: (0:00)
Tax-Deductible Investments: (1:35)
Investment #1: (2:25)
Investment #2: (3:45)
Investment #3: (5:30)
Investment #4: (6:45)
Investment #5: (8:20)
Investment #6: (9:30)
Investment #7: (10:42)
Wow--This guy is both amazing & a genius @ decomplicating tax strategies!
❤
Finally someone breaking this down. I've been trying to tell fam and friends this.
I didn't know many of the stuff presented here. Definitely a new channel to keep watching.
Awesome breakdown, love the on-screen visuals. Subscribed!
New subscriber! Thanks for the info!
Very clear. Thank you for posting.
I'm so glad I came across your channel and videos. Thank you, Sherman.
You're very welcome. Happy to help!
Great content. You have a great ability to make complex concepts in an intuitive style.
Thank you, Mike! I greatly appreciate your feedback
I have learned so much, thank you!
Great video bro!
Thanks bro 🙏🏽
God bless you for sharing this information.
Love that your marked the topics with time stamps. This is second to your great advice ❤❤❤
Thank you!
@@mycpacoach hello does cooking oil count ? What about cosmetic oils ?
Thank you for this
I found you right in time, just had questions about Traditional IRA and u answered them. Thank you
This video fire and well produced. We gotta get u more followers!! Sending this to my ppl.
I appreciate it Anthony! It's a grind.
Nice work. Appreciate the info
A lot of gems shared in this video, thank you. Clear explanation with good visuals. Wish you continued success.
Thank you, Stanley!
Wow! Amazing! Great information and beautiful delivery of information. SUBSCRIBED! Thank you sir for taking the time to create these videos. God bless.
I love this! So much information I wasn't aware of.
Glad you enjoyed it!
Useful! The very detailed video and explanation were great. I had a great watching experience. Thanks for such a really useful resource. Keep it dear! keep sharing such amazing things.
Great presentation and information - subscribed!
Thank you, Scott!
Hi There! Thanks for the great information. Can you give some specifics about oil and gas investments. Are these start up companies or etf or companies already on the stock market? Inquiring minds want to know:)
Thanks Sherman for this helpful informative video I got huge value from it keep the gems coming
I am happy to hear that. Thank you for commenting and watching. Glad you found it valuable.
Nice video, keep up the good work! Had to double check it wasn’t a 100k sub account I wasn’t aware of.
Thank you! It's a grind.
Ignorance is bliss. I knew about 401k and IRA of course, but the rest blew me away. Your video is so informative and straight to the point without the blah,blah,blah. I definitely subscribed and liked.
Do you have a to be an investor to invest in Oil and Gas? Do you have video on how to invest in Oil and Gas or drop any links on how to do it? It would be greatly appreciated
You deserve much more than 12,000 subscribers. You do a great job at providing information and articulating yourself. Thank you for helping us.
Subscribed!
Thank you!
I agree! I just found this channel and subscribed!!
Subscribed
Great comment. Halfway thru the vid and subscribing now!
Great video thanks !!
Great info here, thanks
Good info thanks!
Very valuable thank you for sharing
1.ROTH, SEP IRA, TRADITIONAL IRA 2.TRAD 401K HIGHER CONTRIBUTIONS 3. HSA can spend money on Health Care 4.DAF DONOR ADVISED FUND. 5. SMALL BUSINESS PAY TAXES AFTER DEDUCTIONS 6. REI. CAPT D DEDUCT EARNED INCOME 7. OIL AND GAS 2 HUGE TAX BENEFITS
Thank you 💛
🙏
SEP IRA are for poor people lol
So folks should not allow themselves to get overwhelmed by these types of investments, which is a common mistake people make, and so they never really get started on a plan that will eventually include some of these instruments that he’s talking about here in the video.
So I’ve seen many people at my agency where I retired from get overwhelmed with what they should do with their money, and how should they plan for retirement, and unfortunately, the agency in the beginning, after we had a change from the old civil service, retirement, system (CSRS) to the new federal employees retirement system (FERS) didn’t do a good job of explaining the new system, so a lot of employees just gave up, and they left an awful lot of money on the table, and I’m talking billions of dollars simply left on the table, because the people did not understand how these plans actually worked.
So the first thing to do is educate yourself, and to realize you don’t have to make every decision at once, and a good plan includes your spouse too, as you will be surprised, particularly men, and those who have gone through divorces or simply separated without getting a divorce can complicate their retirement picture, and the essential important things that should have been discussed way back when either didn’t get discussed or the adjust being discussed at the endgame which is way too late, but you’re going to have to discuss them at some point if you have a spouse or a significant other.
So don’t do this alone, unless you have to, as obviously if you don’t have a spouse, then that’s a different story, but either way get started educating yourself and start to think about using a certified financial planner to help you develop your plan, as no one is going to do it for you, and so it’s really gonna be up to you, and a good way to get started is by asking yourself, questions about what is it that you want to achieve in your life, and how much is it gonna cost, because money is a big part of that answer, and in particular when you are nearing retirement, and based on those answers, and on your particular circumstances, you need to consider how long will you live beyond the age of retirement, which is starting at age 55, and sadly, most people, are not prepared to retire or to even answer that question, and so they’re simply not prepared to retire, because they know they don’t have enough money to do so, and so the vast majority of people who are eligible to retire, simply don’t, and so they will continue to work after retirement which is exactly what happens with most people.
So are you going to, retire, meaning, are you going to retire permanently when you leave your current job or are you just going to go out and get another job?
So that’s the question you need to answer, because if you want to retire permanently, meaning I’m not going to go out and look for another job, and I am not going to work for anyone ever again, and so the money question is very important here, because the question becomes will you have the money to be able to live out that dream life that you always wanted, because if your answer is no, then don’t you think you need to get started immediately putting away as much money as you can in one of these tax saving vehicles, and just as important understanding how to maximize your return on your investments, is the other part of that equation, and that has to do with your level of risk tolerance, because a lot of people simply can’t handle losses.
So for those people, putting money into the stock market isn’t going to work for them, and what I have said, and I practiced this, is number 1) never invest in things you don’t understand, number 2) never invest in things that keep you up at night, because why would you wanna do that? Isn’t getting a good nights sleep, just just as important as making sure you have good nutrition, and you’re practicing distressing techniques, and getting in enough exercise, and taking care of your health, because if your health is a question now, what do you think it’s going to be when you retire?
So a plan that contains more traditional investments, like fixed, income investments, we’re talking bonds, certain types of real estate investments,, utilities, etc. maybe the way for you, particularly in the beginning, and until you gain confidence that you can handle the ups, and downs, the choppiness, and the frothiness of what investing in the stock market normally entails, but whatever the mix-and-match of your investments, you happen to choose, get started by first educating yourself, and get started with a plan to achieve your long-term goal of retiring with the type of income security that will assure you that you can retire and be able to finance your lifestyle without having to depend on outside employment. Cheers 🥂
Dope !
Thanks for this information !!!! I plan on applying it to all of the extra income I am going to make in the coming year.!!! # NEWMEMBER
Great video! New sub
How do i invest into oil and gas ? Are you referring buying stocks ? Thank you so much
Great video. Thanks
Great Video, and thanks for the info !!!!
Great content!!
Sherman, thank you for this video. Great information! 🏆
Thank you!
Great information
Great video!
Thanks so much. Do you have a link to set up the IRA, and how can I get investment bonds. Can you make a video on this please.
Watch easy peasy millionaire he is the best at explaining things in detail. I haven’t found any chanel that explains these subjects as well as him. Wish he makes more videos
Thanks for sharing 🤲🏾❤️💪🏿
I’m all for investing and keeping my tax burden low. Unfortunately this doesn’t help keep more money liquid and in the pockets of people needing it. Good ideas though.
Great video! I like how you break things down. So are you still with LYFE TAXES? Or is this your new business?
Thank you 🙏🏽 and both - I am still with LYFE and this is a separate division of it.
@@mycpacoach Thank you for replying I appreciate it!
This content is fire!!!!
Thank you!
I'd like to know more about investing in Oil and Gas companies ... how would one do this?
I have real estate property which is outside the country? can I apply depreciation on it?
What an amazing video & information. The first time I saw him, thank you.
When investing in an oil or gas company does one just buy common stock on an exchange or are there more specific requirements?
It's not simply buying common stock. Rather, you're investing in something like a Master Limited Partnership. Yes, there are some very good tax benefits, but these can also be very tricky investments. When considering an investment, it's best to consider the RETURNS you'll make (or what you may lose) well before you weigh the tax implications. In the case of MLPs, you may lose your shirt, and you won't care whether there was a good tax benefit or not.
Good info
What sort of gas and oil investments?
Good 💯 info
Great info
Thank you!
Hey when one steels. Takes to believe not aware
THANK YOU SO MUCH!!!!!!! your information just helped me on somethings in my own business
You are very welcome. There is much more valuable content on our channel, especially if you own a business.
when he say oil and gas does this include oil and gas stocks??
Very interesting video. I'll be looking into some of your others.
Start a single member LLC, create an eBay account or account on another selling platform, sell some used stuff you find at garage sales, thrift stores, or junk you have around the house. Make sure you have a dedicated space in your home…spare bedroom, garage, basement, storage shed; then you can take business deductions for the space used for the business, a portion of your utility bills, milage on your vehicle (used for business purposes), equipment used for the business (computer, tablet, phone, monitors, printers, TV, subscription services for the business, etc…). With all the biz deductions, my biz runs at a loss, which help lower me and my wife’s taxable income.
Yeah, you are spot on. I used the same strategy. But, my CPA told me I could only for it for 3 to 4 years before the IRS starts to audit my business. So I show a small profit.
Yeah, technically after two years of a loss the IRS can deem your “business” a hobby and you can’t claim the losses anymore if you’re audited. Just a heads up
@@TravelingLifeStyleNow You might consider shopping for new CPA however the 8829 handles "rented" vs "owned" far different. BTW: LOL Audits after 3 or 4 years?? Completely laughable. But let me ask: So what?? Unless you are making stuff up? Who cares if you are audited? CPA? Over priced Bad information.
@@idaUnchained "Technically"? Going with this? Gee. Don't let Mitt Romney and his horse business find out. Won't the tax payers intent be more relevant than losses? How long before Twitter is declared a hobby? LOL. Don't listen to me. Likely you are far more knowledge of this vital area of code.
Great ideas!!! Say, in LLC ,where do you take the home office (8829 on Sch C) Actually, if you have a Sch C with 8829, what it the benefit of the LLC? Thanks!
Thank you for video very formative. How to invest in oil and gas?
Can you go into more detail on the Oil and Gas Companies? Is this like stocks or something else?
The example referenced in the video is not related to public stocks, but are instead related private investment opportunities where you can directly invest capital into an oil & gas company.
@@mycpacoach cool, thank you for explaining that
@@mycpacoachCould you please explain how to do this? I liked your video and subscribed as well. Thanks in advance 🙏
@@mycpacoachHow can an avg person do that?
@@user-yf4yz7zj7d we cant lol
how we can invest in oil and gas company
Please do a video on taxes after retirement.
Sure. Will add to queue
This was great information! Provided tons of value that may save me tons of money. #NewFollower
Glad you found it helpful!
Number 8. NICER Interdiction Living Trust Permission Ledger.
When you say oil and gas investments do you mean gas station purchase or something else?
Thank you
Disclosure to this: Contributing the max to IRAs and 401ks are considered tax deductions, but they do not reduce your taxes $ for $. If your tax rate is 12%, then the contributions multiplied by your tax rate are the tax savings. Also, the solo 401k is only an option for self-employed individuals or S Corp owners. W-2 employees outside of an S Corp owner or Self-employed business owner do not get this benefit.
I think that's why people still have a business and pay themselves or put kids on payroll for doing chores in addition to working more tex deductions for business owners
Yep, I have a business and still paying a high amount of taxes, thought a rental property would help this year, since I did not owe any taxes last year. So not sure how long I have to own the rental until it helps with lowering my taxes.
For investing in Oil and gas, did you mean to invest in oil and gas stocks and you get a tax deduction or having your own oil and gas company?
Now this man right here knows what he’s talking about. I mean he’s giving us the business
Hey Sherman do u have a podcast?
Not yet - focusing on growing our audience before expanding to podcasting. Potentially towards the end of 2024!
A lot of those were the tried-and-true basics. Was hoping for some investments that were not taxable like VMSXX/Vanguard Municipal Money Market Fund; VWALX/Vanguard High-Yield Tax-Exempt Fund Admiral Shares
This video focuses on tax deductible investments. I did a separate video for “tax free investments”. You can view here: czcams.com/video/sr1FkwhczIQ/video.htmlsi=PO4m7zVDOz1A4rp1
@@mycpacoachThanks much for the follow up and letting me know. I'll check out that video and some more of yours.
There is an income ratio also to invest in traditional roth ira
I would like to know about oil and gas investment deductions. Do you have any videos ?
Does cooking oil count
I have Roth IRA investing account for the retirement!
How can you find oil and gas companies to invest in i have charles schwab account
Hi regarding oil and gas,do i need to be an investor?owner or a consumer? Pls enlighten me bec it’s my first time to hear these. Thank you
Side note, you need earned income if you want to contribute to an Ira or Roth.
build wealth
The investment you choose isn't right or wrong, just depends on the kind of business person you are or simply the kind of person you are. However, the end game is investing money long term creates wealth every time. Just pick what you like and understand, invest and it will pay off. A lifetime of investing for 5 mil is not hard to accrue.
Great video & helpful. Tax deduction is good. But when buying a home too much deduction enable you to qualify for a mortgage because w2 might be too low to qualify for the home
That’s really interesting considering the fact that a CPA doesn’t usually know all this kind of stuff, it’s usually a EA
I'm not sure when CPAs got the reputation that they didn't know tax planning. The designation requires much more experience, education, testing, etc. than the EA.
@@mycpacoach LOL. So you engage on generally using EA vs CPA? Okay. I would go for results but your channel.
Yeah you’re 100% backwards here. I’m a CPA, and I can tell you based on many hundreds of folks I’ve worked with over the years that CPAs>EAs almost always. Not 100% of the time, but almost. The CPA exam is significantly harder than the EA test and has significant education and experience requirements. That said, there are certainly exceptions and I’ve known a few people who simply didn’t get their CPA license because they worked for a firm for many years that didn’t require or care if they had it… and then they just got too far into their career to bother. So they got the EA just so they had some sort of designation, but were in fact a great tax professional and better than some licensed CPAs I knew. On the flip side, I can’t even count the amount of times I’ve met new clients who used an EA for a prior year tax return where there was something over the head of the EA on their tax return that got botched and we had to amend. Above all else, when you hire a CPA or EA… just make sure you’re hiring the right fit for your needs. Don’t buy a Ferrari if you only need a Camry.
@@CraigK5thGen I've seen both and worked with both. The most arrogant and vicious are CPA. Ken Krantz in Fountain Valley was the first CPA to steal from me. I took course to learn from H&R block the most basic so I could survive being around these jerks. In fairness, the average working guy is unwilling to pay for services and build a better result overtime. The best EA in the business was James Harnsberger in San Diego. Other EAs (at least in CA) are usually former IRS employees. Best wishes for your season.
Enrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits and appeals. As authorized by the Department of Treasury’s Circular 230 regulations, EAs are granted unlimited practice rights to represent taxpayers before IRS and are authorized to advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. The enrolled agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department. Enrolled agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS.
From my understanding, one cannot do deductions for IRA if your income is over a certain level. Is this correct?
True. There is a threshold like most times
This applies if you are covered by an employer plan.
#8 Could be a First-home buyer savings account in states like Michigan, up to 5,000 tax-deductible
When you say Oil & Gas, do you mean Oil & Gas stock investments or private companies?
Private companies
Wow! 🤯🤯🤯
Good work, 1 thing to mention is that if you are 50 or over, you can also do $7500 catch up contributions on your 401k for year 2023.
Regards,
YKM
Hi,can this be applied to a college student who's under 24.
Age is not relevant.
I understand deferring taxing by utilizing tax deferred accounts. However, I completely disagree with the government telling me/controlling my money until 59.5yrs and then taxing me on it. What if you want to retire at 45 or 50?
I understand this view. Some of the later examples in the video are great alternatives. I always tell my clients to determine their goals first, and then we’ll pick the best ways to package everything to reduce their taxes. With a good plan, you can do both - invest for early retirement (45-60) while putting money aside for a later retirement (60+).
@@mycpacoachI think it is important to revisit your goals frequently. Mine changed and at 50 I wish I had invested more outside of the 401k and Roth. Having nearly 8 figures in my locked up accounts is driving me crazy. I could walk away with the 300k I have in my taxed accounts. I only need 35k per year to travel and not work.
I would say balance is the key. If you are disciplined you can retire much sooner than 59.5. Make sure to be wise in your taxed accounts. Taxes will get us all sooner or later. If I could change it I would go back and invest just 5% in a 401k and pile my cash into taxed accounts.
You can take out the contributions from your Roth at any time without tax or penalty. If you do a conversion (like from a 401k) into Roth you pay taxes on the amount converted. And then 5 years later you can start taking out the converted dollars without tax or penalty. (Separate 5 year clock for each conversion.)
But overall I am with you. My biggest regret in 2008 was that I had very little in after-tax accounts compared to my tax advantaged accounts. I've since corrected that.
A lot of people are in for a rude surprise when they're 45-55. I moved my money from a retirement account to a taxable account so I can retire before 59.5, instead of being able to retire, but needing to wait until my money isn't held hostage anymore.
Then don't utilize tax deferred accounts. It's supposed to be a benefit for those who retire at retirement age. Not for those who stops working before that.
I loved and really appreciate the video. However, you will seem more professional if you pronounce contribute correctly. Just fyi. But great video regardless!!
how do you invest in oil and gas?
can't seem to figure that out also
Gym membership with HSA? WHAT!? I didn’t know that. I’ve been paying with after-tax dollars! What the heck!?
As a cpa this video was even helpful for me! Keep up the good work
Appreciate it, Jeremy!
1. IRA contributions have to be earned income even for a child. So you can't just open up the account and fund it unless you're able to prove the child has earned it (e.g., babysitting, lemonade stand, etc. )
2. You can't deduct contributions to your child's IRA on your taxes which is why it's recommended to open a Roth IRA since there's no upfront tax advantages to be had for opening up a Traditional IRA.
Hi!
My husband has a 401k on his new current job but no matching contributions.
He also has 2 more old 401ks from previous jobs is there a way to merge all accounts in 1 like a roth acc?
you can rollover the 401k funds from a former employer to a Roth IRA at any investment like Schwab, Fidelity or Vanguard. I have done a couple of times. You just fill out some forms.
@@kirkNJ That is a conversion not a rollover. And the converted amount will be taxable. However a 401k with an old employer can be rolled over to the new employer if the plan allows it. Otherwise you can rollover the old 401k to a traditional IRA.
@@habanerocat2241 you are right. You can rollover into a traditional IRA, not a Roth. thanks. I corrected my comment.
Oil&gas and rental investment deductions including those from stocks ?
wait, so you're saying that oil company I invested in years ago that has gone down in price point, in my brokerage account; I can use as a write off? - I'm just trying to understand "how" I could do that.
The oil & gas investments the video references are private investment offerings typically offered to accredited investors. They aren’t typically purchased with brokerage accounts.
@@mycpacoach
I feel that your video segment on Oil investments was a little too vague. There's a huge difference between what you describe in the video versus here in the comments. When you consider how many people qualify as an accredited investor vs a regular person who might try to just buy stock. This key difference, which you elaborated on in the comments, should have been explicitly addressed in the video itself.
I'm only halfway through the video and I have never been more excited about taxes in my life😂.
Volunteer or barter