So if you don't understand what's happening here the person is using leverage to buy a piece of property that is bigger than their income so that the percentage of the property that you can depreciate the first year is basically equal to your income which makes your income equal basically zero or as he says $11,000.
Now this can be done with any size income if you can find a small enough real estate investment you don't have to be making $200,000 a year you could do this with 40,000 a year if you could put $30,000 down on something and depreciate $30,000 a year against that income. You may also be able to do this by investing in real estate limited partnerships that are highly leveraged but I don't know if that's true so check that out first. Sometimes you can invest in an reit and the depreciation carries through but I'm not sure about that again so double check that. They're always changing these real estate tax depreciation laws but real estate depreciation is always one of the best things in tax code. It's why so many people have gotten Rich from Real estate like Donald Trump and others. You can sort of endlessly defer your income into depreciation until you just have massive numbers of properties kicking off so much cash that you can start paying income tax on that much larger cash flow and you just don't even care anymore.
Daughter: "How do we get the money for the down payment?" Cardone: "You got a job with me."
Hahaha
So, she lives at home so she can bank all of her money. She gets a job from her rich dad, making $200,000 out of the gate. Okay. Is she a W-2 employee? Sorry, she is paying way more in taxes than $11,000, and she won't be the one with the sweet write-offs, her dad will be. So what this translates to is: honey, the $189,000 I save will be money I give you, either before or after I die.
Cardone is another one of those guys, like Tony Robbins, who got his money by talking about being successful before he had any. Once you have the money, sure, any moron can spend a few weeks learning finance and how to evade taxes. But this video amounts to a lesson on how to be a rich guy's kid. It's actually so out-of-touch that you can tell Cardone doesn't even process what life is like for his audience. Either that, or he is a real shark, and he recognizes that people will gawk at rich people flagrantly flaunting what it's like being rich.
He treats a person's whole annual income as a lifestyle expenditure. Hey Grant, what about the COST OF FUCKING LIVING?
Also, you can't write off depreciation on property unless its a revenue-generating asset, meaning, not your house, but rental property. So, apparently he is thinking you should have a couple of mortgages, and the first one, meaning the one for your residence, is a "lifestyle thing."
The 11,000 is the typical US deduction, meaning everyone can make 11,000 or whatever the number is for the current tax year, and have zero taxable income.
Land or a house isnt a depreciating asset. If you buy a million dollar car that depreciates 10% per annum. Sure, that plan would work but what the fuck do you do with the car?
Sounds like all of this is under a business income type situation. Land or house in the name of the business can be depreciated but typically only under fixed term rates, like 27 years - which is less than 10% of the value depreciated every year.
This is the right idea though. Invest all the income into business priorities that will increase the revenue every year, and write off the business expenses. This is how amazon pays no taxes.
Edit: always look at the depreciation schedule for big ticket items. Houses are 27 years, cars are shorter, etc.
[ + ] CHIRO
[ - ] CHIRO 3 points 3 weeksMay 23, 2024 15:45:29 ago (+3/-0)*
Wat
A six percent tax rate?
Wat
Hahaha
So, she lives at home so she can bank all of her money. She gets a job from her rich dad, making $200,000 out of the gate. Okay. Is she a W-2 employee? Sorry, she is paying way more in taxes than $11,000, and she won't be the one with the sweet write-offs, her dad will be. So what this translates to is: honey, the $189,000 I save will be money I give you, either before or after I die.
Cardone is another one of those guys, like Tony Robbins, who got his money by talking about being successful before he had any. Once you have the money, sure, any moron can spend a few weeks learning finance and how to evade taxes. But this video amounts to a lesson on how to be a rich guy's kid. It's actually so out-of-touch that you can tell Cardone doesn't even process what life is like for his audience. Either that, or he is a real shark, and he recognizes that people will gawk at rich people flagrantly flaunting what it's like being rich.
He treats a person's whole annual income as a lifestyle expenditure. Hey Grant, what about the COST OF FUCKING LIVING?
Also, you can't write off depreciation on property unless its a revenue-generating asset, meaning, not your house, but rental property. So, apparently he is thinking you should have a couple of mortgages, and the first one, meaning the one for your residence, is a "lifestyle thing."
[ + ] localsal
[ - ] localsal 0 points 3 weeksMay 23, 2024 17:41:52 ago (+0/-0)
[ + ] John_doe
[ - ] John_doe 0 points 3 weeksMay 23, 2024 17:35:22 ago (+0/-0)
[ + ] localsal
[ - ] localsal 0 points 3 weeksMay 23, 2024 17:41:00 ago (+0/-0)
This is the right idea though. Invest all the income into business priorities that will increase the revenue every year, and write off the business expenses. This is how amazon pays no taxes.
Edit: always look at the depreciation schedule for big ticket items. Houses are 27 years, cars are shorter, etc.
[ + ] GreenSaint
[ - ] GreenSaint 0 points 3 weeksMay 23, 2024 15:10:07 ago (+0/-0)