![The reality of trying to escape the tax man. [843x811 - 120KB]](https://pic8.co/sh/cfAKoG.jpg){kind=link}
Buys real estate. Start a business. There are massive tax breaks and write offs if you’re smart with your money.
Its really hard for people to get to the point to do that unless they have a head start, or are incredibly innovative, its better to have both. The amount of income you need to personally take to have a decent house, decent car, and eat decent food suck almost every penny you would need to expand a small businesses if youre starting for scratch. Good luck buying a piece of commercial property if you already have a personal home loan, and car loan, even if the business you started is grossing 2 million a year. The bank wants you take that income to prove that company is profitable to get a good loan if you dont have a lot of assets, and all that money will be taxed and spent. Its a pain the ass system to grow inside of and takes virtually an entire lifetime of being in debt to get to the point you can start playing the games youre talking about without a head start or being really good at grifting people out of investment money. Add in a divorce and a couple fucked up kids, and your family is back to square one in less than a year.
Truth.
Also don’t forget the rampant inflation now that makes it even harder.
It is hard to start from zero. The question is why did your parents make you start from zero? And will you sacrifice your comfort to make sure your kids don't start from zero?
Wont fucking matter. Look at Europe, you can try as hard as you can than the tax man comes in and taxes you 70% for being related to someone.
Care to share?
He's talking about tax games some self made wealthy people play. Like if you own a business with good cash flow you can start an LLC, use your main business to loan the new business money to buy a house for you to live in and or a vacation homes. Start a rental business for your toys, flip real estate, and quickly reinvest the profits into bigger more expensive real estate. Once you get to the point you can take a big pay day pay tax one time, and live off that money for years, while you reinvest your companies cash flow. Thats how Buffet can make the claim his secretary paid more taxes than him. He's probably been operating off the last paycheck he cut himself for 25 million dollars in 1985 because he doesnt need to take a check, he can increase his net worth through the value of his companies. I responded to him with an explanation of why it isnt practical for "most well" off business owners to do.
Nah - you don’t need to get that far to start winning the tax game. Start a business selling microwave food on Facebook, and you’ve got hundreds in write offs each month - computer, phone, internet, office, car, gas. You don’t need to make any money doing it either
Read rich dad poor dad.
Executive summary: rich people write the rules and play by them. If they have a business that posts a loss, they write it off and don’t pay taxes. Business expenses? Write that off as a loss and don’t pay taxes.
If you make $100k, you pay $33k in tax. Start a business, put your internet, your phone, and your car on it. Gas is a business expense. A portion of your house is a business expense. Go out with friends? Mention your business and it’s a business expense.
Add up all those costs, and if they’re more than what your business brings in, you write them off. Say you find $15k in write offs, submit your taxes and get a $15k refund
Real estate depreciates, so you get to write that off. It’s the easiest business to run. A rental property takes care of itself while appreciating.
You don’t need a ton of cash either. Get a slum - it pays the same. $50k property needs $10k down for the loan. It get some slob renter in at what your mortgage costs, and write off everything under the sun.
Brilliant thank you!
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