7 Ways To (LEGALLY) Avoid Taxes | Tax Loopholes Of The Rich
Vložit
- čas přidán 29. 06. 2024
- Click here to Explore your creativity and get 2 free months of Premium: skl.sh/thebettermenproject6:
(Yes, This video is sponsored by Skillshare)
Why the rich don’t pay taxes? That has been one of the questions that many people don’t fully understand.
If the working class pays taxes, why do the rich get away without paying theirs?
Well in this video we are uncovering some of the ways many of the wealthiest people in the world use to reduce or eliminate their taxes.
These strategies and tax loopholes are being used by some of the biggest corporations in the world, like amazon, apple, google and many others.
This raises the question, do you think the rich should pay more in taxes? Let me know in the comments section what you think.
🔔 SUBSCRIBE TO THE BETTER MEN PROJECT: czcams.com/users/TheBetterMe...
🔥CHECK OUT THESE TOP TRENDING PLAYLIST:
►THE RICH PLAYLIST: • 7 Types of Income Mill...
►HIGH-INCOME SKILLS: • The #1 Thing You Need ...
Video News Sources:
CNBC
Business Casual
CNN
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
Explore your creativity and get 2 free months of Skillshare Premium here: skl.sh/thebettermenproject6
What do you use to make your videos so good
I have an LLC can that help me with taxes or is an S Corp the way to go.
P,
qqa!a1å1
@@jms6605 S Corp.
In actuality, these aren't loopholes. This is just the way the tax code is written. Easiest way to make more money is learning the tax code and using it to your advantage.
That’s right
Thanks for the advice 🤟🏾❤️
Which one for california?
@Sally Hillal it doesn't. It creates monopolies by giving an advantage to big companies who can afford workers who can help them crack the 70,000 page code.
I believe we should simplify our tax system and abolish the corporate tax.
Imagine how much money the govt could get if they fix taxloop holes for only the super rich, that along with better Management of the budget and we could easily afford universal healthcare or programs to offer cheap mortgages, small business loans, stimulus and debt elimination grants. Americans would have so much more money to spend back into the economy and this country could start turning around. But itll never happen, the rich the status quo and the powers that be will use their lobbying and connections to never allow that to happen.
America is the land of opportunity. Everybody can become a taxpayer.
Yes and Americans have to pay taxes if their work overseas,
No other country does that
😂😁🤣😅
You need to check your facts. Bermuda is not and never been a tax havens. You have Google that information. Any government that has a Tax of Exchange agreement with Bermuda can request information tax information on any of their citizens working or living in Bermuda.
@@robhingston South Africa has foreign income tax. 47%
@@TIK1MONSTER and that is why they will go down
- Expensive paintings
- Charity organisations
- Buying property
How do expensive paintings save you taxes?
@@timmy101able because there is no such thing as tax on art. In other words all art is non-taxable.
@@timmy101able they don't really. What they're doing is deferring it. Meaning you can buy expensive paintings and hold on to it. Once you sell it you're taxed on that amount if you don't use that money to buy something similar meaning if you sell art you need to buy art within the same year you sold it.. So, you would sell it at a time where you're not making as much money or if the tax rates are lowered at a given time. This would save you money meaning you would pay less in tax. It's subject to capital gains tax. 1031 exchanges is what the IRS calls it. It's a like kind exchange. Meaning if you buy an apartment building and sold it and if the sale is in the same year. You can use that money to buy another apartment complex to avoid paying capital gains tax. If you don't buy that apartment within the same year of the sale you will be paying that capital gains tax. However, I think trump took this off the books and is no longer part of the tax code. I know he fussed about it but not sure if it went thru. I think he took it out for tax year 2020.
1:35 - Correction - they haven't found those loopholes, they've DESIGNED them.
👆🏻
True
Fun fact: the USA is one of a few countries that has a citizen based tax system, meaning that say if a US citizen moved to another country for life, cutting all ties, bank accounts, assets/income and never returned they still have to file federal tax returns and pay some taxes annually. The only escape is to renounce citizenship, truly awful system
This is NOT true ... i lived out of the country for 5 years, came back home, filed and got a refund
@@enilee3161 that is because you paid taxes in the country you lived in. If you lived in a country that didn't tax you, the United States with a tax you just for being a citizen even though you didn't use their infrastructure
@@ddillard143 how if you're in a different country?
@@robertlamoa7757 the United States has a citizen tax. No matter where you live in the country you have to pay taxes on your income. There is an exemption of $107,000 per year. That goes up every year due to inflation. Anything after that and you get taxed. But you get a credit if you pay taxes in another country
The same goes for any citizen in the Netherlands.
5 IRS agents disliked this video
Simply owning a business or simply buying a home does not guarantee low taxes, one must PROVIDE jobs or PROVIDE housing to reduce taxes
👆🏻
Reporter: "Why don't you pay taxes"?
Donald Trump: "Because I am not stupid".
"Success leaves clues."
Ehh. It’s not that simple. Tax theft and tax avoidance are two different things. First one is not OK and the second is OK. This video talks about the second!
@@voicification first one is OK it depends on how you look at things such as how corrupt and garbage the us system is.
He IS stupid, but he's smart enough to hire really good lawyers and accountants.
@@voicification isn't tax avoidance also illegal for US Citizens? For example if they use loop holes such as opening an offshore account?
Great video as usual👊. The best part? Anyone can implement these strategies as long you have financial education to have a better for yourself and family.
Thanks so much. I’m only a teen but I have a different perspective to business wealth now.
I have the knowledge guys,
Now I just need a multi million dollar corporation
It’s time to build it!
Damn dude. A lot of work went into making this video. Excellent research and presentation!
Thank you! I do my best to provide the best information 👍🏻
Appreciate the comment brother!
What a clear crisp video and truly informative! Excellent work.
Thank you! We have more coming soon!
This was a truly excellent video.
Yeah i bet it helped you a lot with your million dollar a year job
This good for an American but not the super wealthy its one way to get tax breaks for decades like foreigners beening born from america
Except for the “Bahamas” while showing the map of the British Isles. Yeah small fact but made me lose attention and trust
Omg you packed a lot of information in this short video! Nice
Fantastic video. It was to the point and simple to understand. People save millions if not billions in taxes through the listed methods.
Thank you for the great information!
beyond excellent video on how to avoid the greed that is government!
This was fantastic!
Awesome content. Got the wheels turning. Thank you! I wonder what the cost is to hire the team of CPAs to provide the means for accomplishing this level of sophistication. I guess it has to be cheaper than paying the tax, but I wonder how much do save from paying the professionals rather than the taxes.
An excellent logical question.
Learn how to do it yourself
Overall great video! I do want to point out that your Apple example (5) was a bit off. What happened was that Apple Bermuda owned the patents and intellectual properties (IP) of the company and licensed the IP to Apple Ireland. Also, you mentioned that you can do this with a shell company with no employees which is false, you actually need to prove you have substantial operations in the county to even try to use this method. Additionally, This happened years ago and is no longer possible because it is extremely harder to pull this off now due to the new regulations. I feel this should’ve been mentioned on the video since people may think this is still going on without knowing Apple got fined a whopping €13 billion from the EU relating to this tax scheme. You could’ve pulled this off in 2015 or before but not anymore.
Amazing bro!!
You: avoids taxes legally
Government: "let's Willam B Cooper his ass."
You the man bro! Great video ! It’s funny how at the end I felt like I had powers from the knowledge given as soon as you said it
That’s great man, keep in mind to always work with a good CPA to fully take advantage of the tax laws
Thank you for your informative video. Liked, subbed, and commented. 😁
Awesome! Welcome to the family. We have many more videos coming 👌🏻
Hey i have watching your channel for a while and have been impressed and encourage you to keep it up. i was wondering if you could tell me which books to read to expand my knowledge. thank you
Great video!!
Thanks man, good info as always
Love this!!!
Great video, I would be happy to watch a similar video that is useful for regular people who earn five figures
Helpful.
I’m actually blown away by how much good information was in this video, most videos like this are just fluff
What books or classes can I take to learn this?
Awesome video. Thank you so much.
Informative video!
THANKS FOR THE SHOW
Thank you for making this video.
This is an excellent video and explains alot. I will probably watch it several more times so I can absorb the learning because it is very different than the way I was raised. (-:
I would do all of these things, and hopefully will someday.
Love the process.
👆🏻👌🏻
Very good video!
Outstanding. Subbed
Welcome to the family!
AWESOME VIDEO DUDE!!!!
Thanks man !
A really good video. 👌🏼
Thank you!
Many of these tax benefits for corporations are incentives for entrepreneurs. It's not necessarily the ideal plan for everyone to go and try to start their own business just for the sake of the tax benefits.
Great video
Good stuff.
Thank you 🙏🏻
My granddaughter said after graduating high school next week she wants to go into business I was a enrtrepreneur and my wife is a retired CPA I think we can help her. Guess what if she will work she will be rich.
This video is really good!
Thank you 🙏🏻
@@TheBetterMenProject DEFINITELY SUBBED!!
#1 reason why you should NOT turn your sole proprietorship or LLC into a corporation: You will end up with a double taxation, income is taxed at the corporate level and also one more at the personal level.
He also said thats why most corporate owners file their expenses as business expenses, not personal, to avoid the double taxation.
0:02 The precedent for Intel isn't a person. It was N M Electronics founded on July 18, 1968.
Wow mind blowing!!!!
Crazy right?
Don't the executives also get options to buy the stocks at a lower price to give them a reason to get the stock to go higher?
Yes 👆🏻
*If you haven't found a way to lower your tax bill, you're doing something wrong.* 😉
If you're not giving the game, you're doing something wrong.
Bruh! I was all there and focused up til @8:02-@8:13
A few things you missed in this video...for #1 you didn't account for Sec. 199A in the sole proprietor vs corp scenario. In #2 you didn't account for BEAT tax on that $80M or fully explain the tax impact when that $80M comes back to the US.
Can someone tell me the source on where did he find the tax bracket for 46% with no business and 37% with business?
You REALLY can learn anything on youtube
CZcams is amazing!
Facts 📠
Its a great vdo.
Thank you 😊
I didn't get the role of the shell company in the Netherlands. What would they need it?
Before he said on top of the amount i already owe, I felt soooo smart
How do you know this stuff where can I learn this type of stuff to become more familiar
Xia Amour CZcams! 🤫
i want MORE of your videos, this is not just interesting its also LEGAL.
That’s true! We have a lot more videos coming up very soon!
Can you do a UK version please 👀
"All of the assets" in GRATs do not pass tax free to the beneficiaries. Only the appreciation of assets above a certain rate of return passes tax free. The rate of return is distributed to the grantor. The IRS, in the last decade, has increased the minimum term of GRATs (making it more difficult to be sure an asset will significantly appreciate) and rate of return.
Vending massage chair has a low startup, you don’t need to stock or fill in the machine to make
profit. You just have to put it in a high traffic area like mall, hospitals and airports.
How much do you usually pay to rent the space ?
So does this US company have to own this offshore company to save taxes? If so, how do you do that?
I live in a condo and one of my neighbors has registered his condo as an LLC. How did he do that? What’s the benefit?
Not sure how that would be done, I’ll take a look at that
The Better Men Project thanks!
Limited Liability Corp basically acts as it's own entity in the event of a lawsuit. Hypothetically, if he rents his condo in the future, or has a guest over, and someone, either a tenant or guest, injures themselves, they might try to sue. If it's in an LLC, they can only sue for the assets/funds owned by the LLC. This means that if he has other assets, like investments or other realestate outside of his LLC, they cannot be taken from him.
Dillon LaFond thanks for a great explanation!
Sounds like he is using the condo as either office space or an asset of the LLC. He probably bought the condo through his LLC. I use to work for a small real estate developer in DC and I had a chance to review a lot of his legal/tax documents. He put all his houses/rental properties in his LLC's name. His income to the gubment was under 60k. Remember according to the gubment a C-corp is considered a living entity in the tax code, I believe but I could be wrong. I think that's he avoids paying taxes by keeping his personal income low when I know for sure his businesses/properties generate over 7 figures a year.
This is good information if you are rich and wealthy but what about the working class/poor and middle class Americans...How do we legally avoid taxes?...I guess our taxes pay for the 1% and the corporations taxes...
Although I'm from other side of the world and we are quite different but still can u suggest some books where one can gain these type of knowledge.
Let debt work for you, is a good book.
@@christopheryoung2368 thanks
You can make a private corporation, make it a charity , spiritual society, or benevolent society. Also remember you can now write things off, like expenses, to balance any profits you make. So you can end up making no income on paper. You know what I mean? =)
Can u please explain more? I’m young and starting to learn about this so the more detail the better!
You don't even have to deal with these complicated schemes to save in taxes.
If you are self-employed (Forms 1099), you can deduct nearly everything. For example, let's say you are an independent app developer, and you are in love with the latest flashy $1,000 smartphone that just came out. You can buy it for yourself, and then claim that those $1,000 were a business expense. You need a smartphone for your business to develop apps after all, do you not?
Now, if you earn a wage (Form W-2), then you're pretty much screwed. There's not much you can do to save in taxes, outside of making contributions to retirement accounts, FSAs, and HSAs.
I know this because I earn both kinds of income and do my own taxes every year, and the flexibility I have with one type of income vs the other is staggering.
Nice
TAX.......................FREE 😂 amazing video man
Thank u for this informative video
Happy to help 👍🏻
Wow...this was jammed packed with golden nuggets everywhere. I'm just gonna have to call this a masterclass. There I said it.
Social security tax is capped at 138k wage limit, so that’s not accurate tax amount at 0:39 mark.
How does one become a corporation?
To optimise your CT, you might be interested in :
I’m definitely not gonna use this to not pay taxes
"Found" loopholes? You mean "lobbied for".
@@letsplayvideogames227 If it's legal, it''s not bribery, which is a crime. :P
You've used a picture of the United Kingdom when talking about the Bahamas....
I’ll let my editor know about that, thank you for letting me know 👍🏻
It's a picture of Ireland and the UK. Ireland is not in the UK.
Hi,
Great video,
Can you make a video with someone that earns 50.000 $ a year? How can he avoid taxes? What he needs to do to pay less taxes?
Hi! Obviously I’m not the better men project but I figured I could help you out. The tax laws vary based on your personal situation. Do you have kids? There’s a tax credit for that. Do you own a home/pay mortgage interest? You can deduct that. Do you think your income in retirement will be less than it is now? You can contribute to a traditional IRA which temporarily lower your tax liability. Alternatively, if you think you’ll be earning more in retirement than you do now, consider contributing to a roth IRA. This will save you on taxes in the future. If in doubt (and have some extra cash), why not do both? If you live in a state with state income taxes you can also deduct some of that from your federal tax liability. One more thing, you can save on taxes if you’re married - though that’s not a great reason to get hitched. These are just a few things to get started but researching the tax code is something that can save you quite a bit of money in the long run. If you have some extra money (or ever get to a point where you do) consider hiring a CPA. A good one can basically pay for themselves in the tax money they save you. Hope this helps.
Gracie Gordon top man, thanks
put it all in savings and get back to work peon.
@@lolwtnick4362 Bank doesn't pay much in interest, plus you have to pay tax on it. Do your DD and invest in safe stocks will have a much better objective IMHO, take care and good luck.
Wow, this is sooo much info😩😩. So, you can pay little to zero taxes only if you're a cooperation or self employed?
Not at all! Make sure to check out our newest video. We go over how to anyone can reduce their taxes. Even as an employee
@@TheBetterMenProject OK, will do. Thank you!
Does this work in Canada?
because, under federal law, most people are not required to pay federal income taxes.
This wasn't relevant to 99% of the people who watch it and was more of a "This is how major companies avoid taxes". Still fun, but the title is actually misleading
The most frustrating thing is knowing that income tax is collected based on the financial needs of the war. Yes income taxes started out as a war effort and it proved to be profitable so income tax stayed while the war passed Question is is it legal to collect income tax? I don't believe it's legal but it's difficult to fight the law makers.
Any CPA'S watching this that might be able to provide me with a good strategy? Let me know.
How is a bank loan a stock option? Your concept at 8:10 doesn't make sense to me
Wow, the Bahamas sure does look like Ireland and the UK
Finding ways to pay less taxes to a government that is inefficient, doesn't care about cost or quality, and imposes obligations on its people without their consent, should be a top priority.
Actually it is more than 46%, remember everything you buy have taxes too. So figure that the 50% you need deduct an additional 7% approximately on everything you buy also.
Very true 👆🏻
Is that
The tax cuts and jobs act or
The tax and job cuts act?
It almost seems that way
So lets say the dislikes are IRS
Jeff Bezos: *quietly takes notes*
He's the King of Tax Loopholes
If you earn less then the standard deduction, you will pay very little taxes over all. That's what I did when I was working
How to avoid the death tax: don't die
That’s the best strategy 😂
The only problem I see with this is the way that you're calculating taxes owed on $1000000 just because the highest tax bracket is 42% doesn't mean that you'll pay 42%. The effective tax rate is calculated much much differently to top it off we have a marginal tax system that gets incrementally more expensive the more money you make