Podcasts about tax free wealth

Catrina Craft is a CPA, tax strategist, and real estate investor with over 20 years of experience in applying the tax code to maximize wealth for investors and entrepreneurs. As the founder of Craft CFO Advisory Services, she supports real estate professionals, creative agencies, and business owners with proactive planning to reduce tax obligations and build long-term wealth. A frequent speaker and educator, Catrina brings a unique blend of compliance, strategy, and investment knowledge—helping her clients go beyond tax preparation and into true financial empowerment. Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here. Key Takeaways Start tax planning early—waiting until tax season puts you in reactive mode Don't structure appreciating assets in a C corp—it can lead to unnecessary tax penalties Asset protection is more than just forming an LLC; structure and exposure matter A tax strategist is proactive—meeting regularly and guiding decisions throughout the year The IRS rewards those who build and invest—use the code to your advantage Topics 1. From Debt to Wealth Building Catrina lost 80% of her income when a major client left and found herself $100K in debt This challenge drove her to learn real estate investing and the tax strategies behind wealth building Paid off her debt in 2 years while building a rental portfolio 2. The CPA vs. Tax Strategist CPAs focus on compliance and reporting what already happened Tax strategists plan proactively to reduce your tax bill before decisions are made Working with a strategist who knows your industry—especially real estate—is critical 3. Avoiding Common Structure Mistakes Many investors set up LLCs without understanding tax treatment options Holding real estate in a C corp is a costly and often irreversible mistake Asset protection includes entity structure, insurance, and understanding exposure risk 4. Planning Beats Panic Most deductions and deferrals (like cost segregation and 1031s) require advance planning Catrina meets monthly or quarterly with clients to stay ahead of key decisions Tax planning should start at the beginning of the year—not at filing time 5. Questions to Vet a Tax Professional Ask about their industry experience and how often they meet with clients Determine whether they offer strategy or just compliance services Ensure they understand your specific investing model (e.g. syndication vs. flipping)

In this episode of Mission Matters, host Adam Torres interviews Alan Porter, CEO of Strategic Wealth Strategies and author of Tax-Free Retirement Solutions. Alan shares how he empowers clients to think beyond traditional financial planning, reduce taxes, eliminate debt, and create long-term, tax-free wealth for generations. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The clock is ticking. In this episode of the December Dash series, Tiffany Phillips reveals the final year-end tax strategies that separate wealthy business owners from everyone else. Discover how solo 401(k)s, Health Savings Accounts, Roth conversions, charitable giving, and defined benefit plans can slash your tax bill and build lasting wealth. These aren't just tax tips—they're smart strategies with a hard December 31st deadline. If you miss it, the opportunity is gone. Learn how to avoid costly mistakes, maximize income, and make money decisions that build financial freedom. Whether you're a small business owner, female entrepreneur, or simply looking for smart tax planning, this episode will change the way you think about your financial future. Don't wait until it's too late—tune in now and secure your tax savings before the year ends.   Next Steps:

Welcome to the Know Your Numbers REI Podcast! In this episode, host Chris McCormack continues the series on the seven deadly tax traps that entrepreneurs often fall into.Today, we dive into the often-overlooked benefits of using life insurance as a supplement to your retirement plan. As many business owners and real estate investors find themselves phased out of tax-advantaged accounts like Roth IRAs due to income limits, life insurance can provide a viable alternative for tax-free wealth accumulation.Join us as we explore how life insurance can not only protect your loved ones but also help you build a tax-free nest egg for the future.Don't forget to follow to our channel and share this episode with friends who could benefit from understanding the tax advantages of life insurance.Stay tuned for our next episode, where we'll wrap up our series by discussing often-missed expenses that can lead to significant tax costs.God bless you, and keep moving forward!••••••••••••••••••••••••••••••••••••••••••••➤➤➤ To become a client, schedule a call with our team➤➤ https://www.betterbooksaccounting.co/contact••••••••••••••••••••••••••••••••••••••••••••Connect with Chris McCormack on Social MediaFacebook: https://www.facebook.com/chrismccormackcpaLinkedIn: https://www.linkedin.com/in/chrismccormackcpaInstagram: https://www.instagram.com/chrismccormackcpaJoin our Facebook Group: https://www.facebook.com/groups/6384369318328034→ → → SUBSCRIBE TO BETTER BOOKS' YOUTUBE CHANNEL NOW ← ← ← https://www.youtube.com/@chrismccormackcpaThe Know Your Numbers REI podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests.

You've probably heard the saying "the rich get richer."  And you know what? It is true - because the rich know how to pass on wealth tax free. Today, Nicole shares three ways the 1% pass on generational wealth, and how you can too! This podcast is for informational purposes only and does not constitute financial, investment, or legal advice. Always do your own research and consult a licensed financial advisor before making any financial decisions or investments. All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Cryptocurrency trading services are offered by Bakkt Crypto Solutions, LLC (NMLS ID 1890144), which is licensed to engage in virtual currency business activity by the NYSDFS. Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrency holdings are not protected by the FDIC or SIPC.  *APY as of 6/30/25, offered by Public Investing, member FINRA/SIPC. Rate subject to change. See terms of IRA Match Program here: public.com/disclosures/ira-match.

In this powerful episode of The Mike Litton Experience, MC Laubscher—entrepreneur, wealth strategist, and author of Get Wealthy for Sure—shares how he went from playing professional rugby to becoming a leading authority on the Infinite Banking Concept. MC reveals the exact strategies the ultra-wealthy and family offices have used for over 170 years to grow, […]

Learn how to utilize whole life insurance to not only build tax free wealth but protect and grow your businesses without using the banks. Caleb Guilliams presents at Tom Wheelwright's ( @TomWheelwrightCPA ) inner circle franchise group, teaching them the step-by-step framework behind "becoming your own banker" or "infinite banking" and why life insurance is one of the most underrated assets in a entrepreneurs financial strategy.Want FREE Whole Life Insurance Resources & Education? Go Here: https://bttr.ly/yt-bw-vaultWant a Life Insurance Policy? Go Here: https://bttr.ly/bw-yt-aa-clarity Chapters: 0:00 - Overview 2:26 - How to "Become your own Banker" with Whole Life Insurance 5:38 - Borrowing Against your Life Insurance Policy 8:00 - Removing Longterm Debt with Life Insurance 10:31 - Do You Have to Pay Back the Policy Loan? 13:06 - How Whole Life Insurance Enhances Retirement16:13 - Withdrawing From the Policy 17:30 - Volatility Buffer19:41 - How Does Withdrawing Impact Your Policy? Do they Losel Your Cash Value?23:13 - Three Major Benefits of Life Insurance______________________________________________ Learn More About BetterWealth: https://betterwealth.com====================DISCLAIMER: https://bttr.ly/aapolicy*This video is for entertainment purposes only and is not financial or legal advice.Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

Jason focuses today on financial wisdom and the real estate market. He emphasizes the importance of taking action over endless information gathering for personal growth and financial success. Jason then shifts to housing appreciation rates over the past decade, highlighting how income property is a robust, tax-advantaged asset class focused on yield, not just price. He further explores the challenges faced by renters due to high rental costs and the scarcity of affordable housing, while also clarifying the investor's role in contributing to housing supply. Finally, he addresses the complexities of measuring housing inventory and promotes upcoming events and investment opportunities. Go to JasonHartman.com/Properties and start your investing journey! Reach out to your investment counselors today at 1-800-HARTMAN ext. 2. Jason then welcomes Adam Bergman, founder of IRA Financial, talks about the history and current state of self-directed IRAs, highlighting their potential for significant investment returns and explaining the differences between traditional and Roth IRAs. He covered the benefits and tax implications of using a self-directed IRA for investments, including strategies to avoid unrelated business income tax and the importance of diversification in Congress's perspective. The discussion concluded with Adam explaining the setup process for an LLC through IRA Financial, emphasizing the benefits of checkbook control and limited liability protection for real estate investments.   Key Takeaways: Jason's editorial 1:49 Clip of the Day: The Most "Conformist" Woman in the World 3:29 Get your dopamine from action 5:22 Home Price Appreciation 2014-2024 8:06 Hourly wage needed to afford rent 9:43 Number of minimum wage jobs needed to afford a 2 BR rent 13:19 Housing inventory: NAR vs. HousingWire 15:31 Join our FREE Masterclass every second Wednesday of each month! JasonHartman.com/Wednesday Adam Bergman interview 16:21 A brief history of SDIRA's 19:55 Sponsor: https://www.monetary-metals.com/Hartman/ 21:57 2 Benefits of why using an IRA is so important 23:04 Taxes in the IRA environment 28:32 Most important things to know 30:51 Next steps and what IRA Financial can do for you https://www.IRAFinancial.com     Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com    

Send us a textDid you know your retirement account could be used to invest in real estate, private businesses, cryptocurrency, or virtually any other asset class? Most Americans don't, and it's costing them millions in potential wealth.In this eye-opening conversation with Adam Bergman, founder of IRA Financial Group and tax attorney, we explore the hidden power of self-directed IRAs and how they're revolutionizing retirement planning. Adam reveals that despite what most financial institutions tell you, IRAs have remarkably few limitations—you can't buy collectibles like art, you can't purchase life insurance, and you can't engage in self-dealing transactions. Everything else? Fair game.The wealth-building potential is staggering. Adam shares how investing just $5,000 annually from age 25 to 70 with an 11% return (achievable through alternative investments) could yield nearly $5 million tax-free. Compare that to a taxable account, which would only generate about $2 million with the same contributions and returns. The system is literally "rigged in our favor," as Adam puts it, yet most Americans never take full advantage.What's particularly concerning is the concentration risk in traditional retirement accounts. The S&P 500, where most Americans have their retirement funds, is heavily weighted toward just ten companies that make up approximately 80% of its value. Meanwhile, over 80% of companies with revenues exceeding $100 million are privately held—meaning they're completely inaccessible to traditional retirement accounts. Self-directed IRAs solve this problem.Beyond investment strategies, Adam shares his personal philosophy on balancing business success with family life, physical health, and philanthropy. His advice on career transitions is particularly valuable: rather than abruptly quitting your job to pursue a passion, find ways to leverage your existing expertise while building something new on the side.Whether you're just starting your retirement planning journey or looking to diversify an existing portfolio, this conversation provides actionable insights that could transform your financial future. Check out IRAFinancial.com to learn more about self-directed retirement options.To Learn more about Adam: Linkedin: https://www.linkedin.com/in/adambergman1 To Reach Jordan:Email: Jordan@Edwards.Consulting Youtube:https://www.youtube.com/channel/UC9ejFXH1_BjdnxG4J8u93Zw Facebook: https://www.facebook.com/jordan.edwards.7503 Instagram: https://www.instagram.com/jordanfedwards/ Linkedin: https://www.linkedin.com/in/jordanedwards5/ Hope you find value in this. If so please provide a 5-star and drop a review.Complimentary Edwards Consulting Session: https://calendly.com/jordan-555/intro-call

What if your biggest tax burden could be flipped into your greatest asset? In this episode, Matt and Luigi sit down with Sean Graham, a CPA turned real estate entrepreneur who's turning self-storage and depreciation into a business superpower. Sean walks us through his journey from cubicle life to building a real estate empire…one shed at a time…and breaks down how cost segregation isn't just tax strategy; it's tax sorcery. You'll learn how he used FHA and SBA loans to scale his real estate portfolio, why self-storage remains hot (even when interest rates don't), and how small business owners can leverage tax tools most people have never even heard of. Episode Highlights: Why FHA loans are a perfect starter hack for young investors How Sean scaled from duplexes to commercial storage units using SBA loans What cost segregation actually is—and why it matters to small business owners Three ways to legally offset active income using real estate depreciation The "lazy 1031 exchange" explained How to avoid paying depreciation recapture When it makes sense to DIY cost seg (spoiler: it doesn't) The wildest short-term rental project Sean ever worked on Sean's tips for building scalable, remote-first real estate operations Favorite Quote: "The easiest entrance into entrepreneurship is through real estate. You don't have to recreate the wheel." Who is Sean? Sean Graham is a licensed CPA, entrepreneur, and the founder of Maven Cost Seg, where he helps real estate investors legally reduce their tax liabilities through cost segregation studies. With a background in accounting and a passion for real estate, Sean has carved out a niche in self-storage and teaches others how to build wealth without begging Uncle Sam to take less. Take Action: Think you're paying too much in taxes? You probably are. Hit play and find out how Sean's strategies could save you five to six figures this year alone. Then head to mavencostseg.com/liquid for a free estimate and an exclusive discount for our listeners.   Connect with Sean: Facebook LinkedIn Website  Like what you heard? Don't forget to subscribe, rate, and review!  

Dave Foster, founder of the firm The 1031 Investor, wanted to travel the world in a sailboat and raise his children on the water, and they found a way. He applied the 1031 exchange to his real estate investments, enabling him to move his family to Florida, where he and his wife realized that dream. He leveraged that knowledge to publish “Lifetime Tax-Free Wealth: The Real Estate Investor's Guide to the 1031 Exchange.” (03/2025)

Dave Foster, founder of the firm The 1031 Investor, wanted to travel the world in a sailboat and raise his children on the water, and they found a way. He applied the 1031 exchange to his real estate investments, enabling him to move his family to Florida, where he and his wife realized that dream. He leveraged that knowledge to publish “Lifetime Tax-Free Wealth: The Real Estate Investor's Guide to the 1031 Exchange.” (03/2025)

 Dave Foster, founder of the firm The 1031 Investor, wanted to travel the world in a sailboat and raise his children on the water, and they found a way. He applied the 1031 exchange to his real estate investments, enabling him to move his family to Florida, where he and his wife realized that dream. He leveraged that knowledge to publish “Lifetime Tax-Free Wealth: The Real Estate Investor's Guide to the 1031 Exchange.” (03/2025) 

Want to build wealth and keep more of what you earn? In this episode of The Rich Somers Report, Rich sits down with Brian Decker, a serial entrepreneur and investor, to break down the most effective tax strategies, investing hacks, and long-term wealth-building moves that the ultra-wealthy use to legally minimize taxes and maximize returns.Rich and Brian discuss:How the wealthiest investors leverage real estate, private equity, and tax loopholes to grow wealth.Why most financial advisors don't teach people how to truly reduce their tax burden.The power of Roth IRAs, self-directed IRAs, and 529 plans for tax-free growth.Why debt is not the enemy—how billionaires use it to avoid taxes and expand their portfolios.How to protect your wealth from inflation, government policy shifts, and market volatility.Brian shares his playbook for structuring investments to generate tax-free cash flow, leveraging tax-advantaged accounts, and using debt intelligently to build generational wealth. If you're tired of overpaying in taxes and want to learn the secrets the top 1% use to legally keep more money, this episode is for you.For limited investment opportunities with Somers Capital: www.somerscapital.com/invest. Ready to take your investing to the next level? Join our Boutique Hotel Mastermind Community. Join a free strategy call with our team: www.hotelinvesting.com. If you're committed to scaling your personal brand and achieving 7-figure success, it's time to level up with the 7 Figure Creator Mastermind Community. Book your exclusive intro call today at www.the7figurecreator.com and gain access to the strategies that will accelerate your growth.

The discussion centered on Mark Quinn's book, "Be Smart, Pay Zero Taxes," which outlines strategies for legally minimizing tax liabilities. Quinn introduced the "buy, borrow, die" approach, which allows individuals to leverage margin loans against their investment portfolios to access funds without triggering capital gains taxes. He emphasized that this strategy is accessible to a wide audience, including those in blue-collar professions, and highlighted the potential use of cryptocurrencies and ETFs. Quinn shared his personal experience of purchasing a home with minimal down payment, illustrating how debt can be utilized to acquire significant assets while deferring tax consequences. Further, Quinn and Kerry Lutz examined various investment strategies, including the advantages of margin accounts and the potential of covered call ETFs. Quinn discussed the tax-free transfer of assets to heirs through a step-up in basis, allowing for wealth growth without immediate tax implications. They also touched on automated trading and the performance of specific investment vehicles, with Quinn claiming his methods could significantly outperform the stock market. The conversation concluded with plans for future collaboration and the sharing of additional resources to help individuals implement these financial strategies. Find Mark here: https://www.remiigroup.com Find Kerry here: http://financialsurvivalnetwork.com/ and here: https://inflation.cafe

In this episode of The Concierge CPA Podcast, Dr. Jackie Meyer interviews Dave Spence, founder of Tax-Free Tutors. They dive into advanced tax strategies, including the Life Insurance Retirement Plan (LIRP), and discuss how to create scalable accounting practices. Learn about overcoming industry challenges, identifying red flags in partnerships, and building tax-free income sources for the future. This episode is packed with actionable insights for accountants and financial advisors looking to elevate their services and plan for long-term success.

Welcome to the Alfalfa Podcast

"How to Build Massive Wealth by Permanently Lowering Your Taxes"

Imagine growing your wealth tax-free and leaving a legacy for your loved ones. In this episode, Mike Canet delves into the benefits of using life insurance policies as a tax-efficient investment tool, contrasting it with traditional 401(k) plans. By investing in life insurance, you can potentially achieve a higher rate of return without the burden of taxes, both when contributing and withdrawing. Mike emphasizes the importance of balancing today's needs with future planning, ensuring financial advantages for both you and your heirs. Additionally, this episode touches on the current political landscape and its impact on federal spending, urging listeners to make informed decisions about their finances. Join the conversation to learn how to navigate the Secure Act 2.0 and optimize your financial strategy. Want to begin building your retirement plan? Schedule a call with us here:

Throwback Thursday Episode (The episode originally took place in the year 2016) Click Here for the Show Notes On this episode we learn how to keep more of what we make and legally pay less tax (or not tax) on our income and real estate! Our guest is Tom Wheelwright -- a leading tax and wealth expert, speaker, and a Rich Dad Advisor to Robert Kiyosaki (author of Rich Dad Poor Dad). Tom is best known for making taxes fun, easy and understandable and is the bestselling author of Tax-Free Wealth. You can buy his book at most retailers or on Amazon: Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes If you missed our last episode, be sure to listen to TBT: Make Better Decisions Using Neighborhood Info for Real Estate Investors Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed    Websites: Passive Real Estate Investing Norada Real Estate Investments Ask Marco Norada Capital Management #LearningRealEstate #AskMarco #PassiveRealEstateInvesting #Turnkeyproperties #RealEstatePodcast #Investment #investors #RealEstateInvestors #RentalProperties #TurnkeyProperties

In this episode, Ross McGoodwin talks with John Watson, Internal Sales Consultant at DPL, about Roth IRA and tax-free lifetime income strategies. They discuss how these strategies generate guaranteed lifetime income and provide clients with financial stability and emotional assurance. Learn more at https://www.dplfp.com/series/advisor-revelations-podcast.

In this throwback episode, Chris dives in with Tommy Thornburgh on the tax strategies that help businesspeople keep more of their hard-earned income. Tommy shares actionable insights on tax deductions, structuring your business for success, and maximizing opportunities through cost segregation, depreciation, and business credit. Whether you're a seasoned investor or just starting in real estate, these tips can help you keep more money in your pocket.Book Recommendation: Tax-Free Wealth by Tom WheelwrightConnect with Tommy:Website: Prime Corporate ServicesLinkedIn: Tommy Thornburgh on LinkedInHit Chris Up:Chris on Facebook Instagram: @craddrockRESOURCES: 

In this insightful episode, Craig McGrouther sits down with Param Baladandapani, a prominent general partner in the capital-raising space, to explore her journey to financial independence. Param shares how diversifying income streams beyond traditional employment unlocked opportunities for wealth creation, particularly through real estate investing.The conversation dives into the numerous benefits of real estate, such as tax advantages and significant returns, while addressing common hurdles like time constraints and trust issues. Param emphasizes the critical role of education in overcoming these barriers and highlights strategies for risk management and conservative investing.Craig and Param also discuss the importance of building trust and community in the investment space, understanding various investor profiles, and navigating today's market conditions. They offer practical advice on starting small, leveraging resources for financial independence, and embracing optimism in uncertain times.Tune in to gain valuable insights into real estate investing, risk management, and strategic asset allocation for long-term success.Learn more about Lone Star Capital at www.lscre.com To apply to attend LSC Summit 2024: www.lscsummit.comGet a FREE copy of the Passive Investor Guide:https://www.lscre.com/content/passive-investor-guide Subscribe to our newsletter and receive our FREE underwriting model package:https://www.lscre.com/resource/underwriting-modelFollow Rob Beardsley:https://www.linkedin.com/in/rob-beardsley/https://www.facebook.com/RobBeardsleyLSC/Read Rob's articles:https://www.lscre.com/blog

Mark Kohler and Ben Fraser discuss tax strategies, asset protection, and the political landscape's impact on small businesses. They also touch on efficient business structures like the S corporation, the importance of revocable living trusts in estate planning, and the power of Roth IRAs for building tax-free wealth. Mark is the founder and board member at Direct IRA and Senior Partner at KKOS Lawyers. This podcast is sponsored by Aspen Funds. Alternative investments in Private Credit, Industrial Real Estate, and Oil and Gas: ⁠⁠⁠https://aspenfunds.us/⁠⁠⁠ Check out our latest offering in industrial real estate: ⁠⁠⁠https://app.junipersquare.com/i/aspenfunds/offering/1bdbcf6a-da16-4e65-a675-31909415300a⁠⁠⁠ Explore our Private Credit fund: ⁠⁠⁠https://aspenfunds.us/private-credit-fund/⁠⁠⁠ Get in touch: ⁠⁠⁠https://meetings.hubspot.com/mike-sullivant/ilab-speak-to-aspen-representative-⁠⁠⁠ Download our FREE 2024 Economic Forecast: ⁠⁠⁠https://www.investwithaspen.com/free-economic-report⁠⁠⁠ Follow Aspen Funds LinkedIn: ⁠⁠⁠https://www.linkedin.com/company/aspen-funds/⁠⁠⁠ ⁠⁠ Instagram: ⁠⁠⁠https://www.instagram.com/aspenfunds/⁠⁠⁠ Facebook: ⁠⁠⁠https://www.facebook.com/aspenfunds/⁠⁠⁠ Connect with Ben Fraser ⁠⁠⁠https://www.linkedin.com/in/benwfraser/⁠⁠⁠ Connect with Mark Kohler https://www.linkedin.com/in/markjkohler/

A LEGAL way to BUILD wealth that is TAX FREE and you don't have to work more for it!Hey guys! Today Justin Kramer is sharing his tax planning strategies that are going to help you save on taxes each year and build financial margin. This is the KEY to becoming financially free! Learn how to create tax free income, save money on taxes, and build a money mindset that will transform your life.So many real estate agents don't understand how to create passive income that will allow them to create the life they want for themselves and their family. With these tax strategies you will learn how to create financial independence without having to sell another home!You don't want to miss this one guys! Be sure to watch till the end and make sure to like and subscribe for more content like this!Thanks for watching!WANT TO DOMINATE THE REAL ESTATE MARKET IN 2024? Sign up for the elite training course below ⬇️https://coaching.aaronnovello.com/exclusiveprobatetrainingReady to transform your real estate career? Schedule a call with me today and see how Elite Builders can help you achieve unprecedented growth. Your next big leap is just a click away. https://calendly.com/aaronnovello/30min?month=2024-01 Follow me on social media:✅ Instagram: https://www.instagram.com/aaronnovello✅ Facebook: https://www.facebook.com/TheNovelloGroup/✅ Linkedin: https://www.linkedin.com/in/aaron-novello-62064359/

Keith highlights the unprecedented surge in immigration and its impact on housing demand. The conversation also covers state income tax policies, noting that nine states have no income tax, and the impact of international tax laws on US citizens abroad.  Immigrants now make up more than 14% of the US population, the highest proportion since 1910. The US is facing a significant housing shortage, with an estimated 4.5 million housing units needed. Housing shortages are expected to continue, with homelessness rates rising by 12% year over year. Learn about the challenges of being a US citizen living abroad and the potential for double taxation. Resources: Connect with Tom's team at WealthAbility for a free consultation on permanently reducing taxes. Show Notes: GetRichEducation.com/525 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai   Keith Weinhold  0:01   welcome to GRE I'm your host. Keith Weinhold, both an immigrant surge and a big wave of US born residents is tightening housing demand near unprecedented levels. Then we're joined by show regular Tom terrific again, but it's not Tom Brady on how to legally avoid paying state income tax and the fact that if you're from the US, if you move out, you must still pay tax on your worldwide income, plus more tax strategies that you can benefit from today on Get Rich Education.   Speaker 1  0:34   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show, guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit getricheducation.com   Corey Coates  1:20   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:36   Welcome to GRE from Athens Georgia to Athens, Greece and across 488 nations worldwide. I'm your host. Keith Weinhold, get rich education. Founder, Forbes real estate council member, best selling. Author, long time real estate investor and holder of a humble bachelor's degree in geography from a college in Pennsylvania that nobody's ever heard of. It's that time of year where you now have Halloween decorations in your front yard competing hard for space with political campaign signs. What's your HOA gonna do now? Welcome in this slack shot operation right here is the get rich education podcast. I think you know that by now it's episode 525   Brace yourself, immigration has absolutely exploded. I've got the latest numbers on that, and there's a chart recently published in The Wall Street Journal that shows it all legal and illegal. We're a real estate platform, so the question I'm asking is, Where in the heck are we going to house all of these people? In addition to soaring immigration, we'll look at our own domestic US born surging population that are forming households now, and that part might have flown under your radar. This is an urgent issue. All of this isn't just coming. It is already here, this explosion of housing demand, it will indelibly shape both broader society and real estate's supply demand component for decades, it is really approaching the unprecedented we look at net immigration to the US since 2000 it's really these past four years where the numbers have shot up like a rocket through 2020 immigration averaged around 1.2 million people per year, but since 2021 it has more than doubled to around two and a half million net immigrants per year. But the number of illegals arriving among them has gone up as much as 10x starting in 2021 and the overall figures they keep rising. Last year, there were over 3 million immigrants, about three times the total number that we averaged in the first 20 years of this century. So a 3x total net inflow, legal and illegal. And these figures in the Wall Street Journal chart, they are sourced by the CBO. Now you might think that the immigrants that did not enter legally could eventually get deported, but some of them that are already living and working here, gained something called Temporary Protected Status that keeps them here. Well, our central question remains, Where in the heck are we going to house all of these immigrants in a nation of almost three 40 million people? Do you have any idea what our foreign born population is up to now, okay, so not the descendants of those people, just the foreign born population here now, out of the 340 million total US population, any guess? Venture a guess. Last year, the US foreign born population reached 47.8 million. And that figure 47 point 8 million, that is five times more than in 19 75x Do you even realize that's almost double the population of the entire continent of Australia, now crammed into the states. That's how many immigrants, 47.8 million is. It's also the same as the population of all of Spain. That's another way of saying it all in the US today. And by the way, that is my geography degree at work, right there. Hey, the geography muscle is one that I just don't get to flex enough. Immigrants now make up more than 14% of the population. That is one in seven Americans. And that proportion, right there is the most since 1910, per Pew Research. Well, where are the immigrants from? Alright? Before I get into that, if we go back about 60 years, immigrant growth accelerated after Congress made changes to US immigration laws in 1965 that was a key year before 1965 the law favored immigrants from Northern and Western Europe, and it mostly barred immigration from Asia, all right, Well, so here in modern times, where are immigrants from? Mexico is the top country in 2022, 10.6, million immigrants living in the US were born there. That is almost a quarter of all immigrants. And then the next largest origin groups in order are those from India, China, the Philippines, and then El Salvador. All right, so there are a lot of new immigrants here, like a demographic shock wave that's going to drive the demand for housing. But there's way more to this housing crunch story. Combine this nascent immigration influx along with America's own high birth rate years. And this is something that you might not be aware of, though, what I just talked about that might have been somewhat informative to you. You probably had some idea that immigration is higher now, because it's been in the news cycle for a few years here, but something that you probably don't know. And yes, fertility rates are down today, but there was a boom of US born residents from the years 1990 to 2010 and then you might say, well, so what 1990 to 2010 that was in the past? But no, actually, it is just the beginning, because when it comes to housing, it has less to do with the birth year. Currently, what you have to do is add perhaps 25 or 35 years to that birth year, because that's the age of when that person tends to start their own household. And the average age of today's first time homebuyer is 35 to 36 years old. Well, the US is peak birth year occurred in 2007 then adds 35 or so to it. And that means that, on average, they will buy their first home in the early 2040s and a lot of them were going to start renting in the 2020s and 2030s So suffice to say, a lot more Americans will need homes. Well, what else will those high birth years from 1990 to 2010 mean now and into the future? Realize that over 13,000 Americans are turning 35 every single day, both now and years in to the future, record highs. Yes, every single day, just another demographic figure that's on the rise, and there are deaths to account for as well. But the population aging into home ownership is projected to exceed the population aging out like with deaths for a long time, this will pump housing demand. The US has about 144 million housing units today, and we are going to need more housing of all types. Well, between all the fresh immigration I discussed and this US born surge, you've indubitably got the recipe for a ridiculous amount of demographic driven housing demand. And you know, maybe over the past few years, at times, you or some of your friends or family, they've wondered why housing prices have risen fast, why rents have risen fast, and why? Even a tripling of mortgage rates couldn't stop it. It could only slow it down. It's because of this demand that is just coming, and it's going to keep on coming from both the US born demographic surge and an immigrant surge. And here's the thing, as we know this is all amidst a still lackluster US housing supply today, so greater demand, yet still a meager supply. Zillow estimates that we're still four and a half million housing units short, and the housing deficit is growing, although other outlets have estimates that, you know, they really are all over the place. These estimates as to how great the shortage is, 3 million is probably closer to a good amalgamation of how severe the housing shortage is, all right. Well, how do we reduce the housing deficit? We need to start more construction, but it had its recent peak in 2022 and it's fallen since then, in single family homes, because builders faced higher interest rates then and new apartment building starts, they have fallen too. And two years ago we had a lot of apartment building starts, actually. And as you drive through major cities today, you might still see cranes in the air. You still see a lot of active apartment building construction, actually, but more of those projects began two years ago. They began to freeze as interest rates rose, and now they've just got to complete what they've already begun. It can be two years from an apartment construction start to a completion. So as some of these complete, there will be some absorption time there on apartments. But the starts are way down on apartments. This year, we should have at least double the number of apartment starts being started than what we have now. So this sets us up for more future shortages, regulation and zoning. We know that that slows down building for most any housing type, single family, homes, apartments, condos, whatever it is. And nimbyism is a condition that's especially pervasive in the construction of new apartment buildings. Neighbors don't perceive new single family homes as a threat in their neighborhood like they do apartments, whether that's warranted or not. That's how people feel. That's the sentiment. That's the type of neighbor that shows up at a public meeting and speaks out against new apartment buildings. So to summarize what you've learned so far, it's really the confluence of four housing factors coming together here, two of them for higher demand and two for lower supply. The two for higher demand are more immigrants and a surge of US born people from 1990 to 2010 that are just starting to get old enough to need their own place. That's the higher demand side. And then the two factors on the paltry supply side are both a lack of current supply and not enough building for the future. Either it is an increasingly dire situation, and it can even be in your face. Actually. How is it in your face? Well, it's one reason that you see more homeless people on the street in your nearest city, although you might see more US born homeless than you do immigrant homeless. HUD tells us that the homelessness rate has jumped 12% year over year. That's the fastest homelessness increase rate they've ever reported. I talked to you about that before, and I'm waiting for HUD to release their new number in December. They released that annually. You know, amidst this demand, supply imbalance, in fact, anymore, let's look at it this way. Let's flip the script. Consider what could possibly stop insatiable US housing demand from exceeding supply for decades. And when you do, when you think about what could stop that, it starts to get absurd a sudden, new construction technology that pumps out homes like a popcorn machine, climate change that roasts us into human popcorn, not the good kind, and AI or VR, so advanced that We're all going to live inside some sort of force field. How about an even worse pandemic, or even a world war that would have to kill at least 10s of millions of people, or something like that, or aliens or asteroids destroying Earth? Or how about a depression level economic contraction. But see all these scenarios that would derail the housing demand trend. They range from the pretty unlikely to the downright ludicrous. Starts to sound like a Sci-fi flick, and amidst a lot of those afflictions, your life's biggest concern wouldn't be your real estate investment portfolio. It would be primordial human survival. Now, before I summarize your big takeaway here, let me tell you immigration, it has near term downsides, like a lack of housing and a demand for public assistance. And yes, I know a huge pack of new immigrants can appear sort of like a Walmart at first glance, huge, chaotic and full of people that seem like they've given up on life.   But that is certainly not always the case. A lot of immigrants are ambitious long term new young people drive an economy. Immigrants have long been a backbone of innovation. A lot of our tech giants were started by immigrants or their children, and also a lot of immigrants find those construction jobs that can help us build our way out of the housing shortage crisis, but that is going to take a long time. The bottom line here is that if you're looking for your own home, waiting probably won't help. As an investor, own more properties now, own lots of rental housing, you're going to have something that everybody needs. Housing demand is expected to exceed supply well into the future. Both this US born surge of people and the immigrants, what they do is they tend to be renters for years before they become buyers, if they ever become buyers, from here today, it's a realistic scenario to expect then soaring real estate prices, higher rents and lofty occupancy rates for years.    Well, Tom terrific is back in the house, and we are talking taxes. Brady's in the gun bulletin to his left. He's got the hoo man on the right wing with Dobson to the right Collie and Tomkins left. Brady throws it to the end zone for kenbrell Tompkins. Leaping. Kenbrell Tompkins, Brady's back.   That's your quarterback. Show ponies, where's the beat? All right, that's enough. Scott zolak, Bob Sochi on the call there 95 the sports hub in Boston. No Tom. Brady is not the Tom terrific that we often have here. Brady simply doesn't know enough about taxes. We've got the tax expert with us, the extraordinary Tom. We're right. What about that spirited play call at the end there? Did he say unicorns show ponies? Where's the beef? I don't really get all that. So getting back to real estate and taxes here, look, here's the thing, when you see what your government spends money on, and you're disgusted by some of these spending programs, doesn't that give you a supreme motivation to want to reduce your taxes? Well, we're going to talk about state income taxes where they're high where they're low. There are currently nine income tax free states. Are more states looking to drop their income tax to zero and join them? Or is it going the other direction, where they're looking to raise them if you live in one state and invest in another. We'll get into how that looks too. Canadian listeners, sorry, we don't plan to have provincial income tax discussion today. Now, I seem to have become here no more for my real estate investing voice than anything else. Last month, I was in Pennsylvania for a while, and I ran into one of my high school teachers. He was the art teacher, but he also taught a class called journalism in publications. That was an elective class, and I took that class as a high school student. I think I was a senior then, well, our job was to lay out the yearbook, writing, positioning and centering this text here in that image over there. Well, I told my old journalism and publications teacher that he's been a substantial influence on me because, as you know, I write our Don't quit your Daydream letter to you about every week. And I just love doing that, I've always thought of myself as more of a writer than a talker, and I myself really enjoy writing and laying out the body and images of our newsletter and sending it to you about weekly on crucial information that you must know About, real estate investing, economics and wealth mindset. It's got a dash of humor, and every single letter can be read in less than five minutes, often less than three minutes. I would love to have you as one of our 1000s of weekly readers, and it is free. You can get it simply by texting GRE  to 6866. come along and join us for real estate investing information and fun. Just take a moment and do it right now while it's on your mind. Text, GRE to 6686 lots more. Straight ahead. I'm Keith Weinhold. You're listening to get Rich education.   Hey, you can get your mortgage loans at the same place where I get mine, at Ridge lending group NMLS, 42056, they provided our listeners with more loans than any provider in the entire nation because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage, you can start your pre qualification and chat with President Caeli Ridge personally. Start Now while it's on your mind at Ridgelendinggroup.com, that's ridgelendinggroup.com.   Your bank is getting rich off of you. The national average bank account pays less than 1% on your savings. If your money isn't making 4% you're losing your hard earned cash to inflation. Let the liquidity fund help you put your money to work. With minimum risk, your cash generates up to an 8% return with compound interest, year in and year out. Instead of earning less than 1% sitting in your bank account, the minimum investment is just 25k you keep getting paid until you decide you want your money back. Their decade plus track record proves they've always paid their investors 100% in full and on time. And I would know, because I'm an investor too. Earn 8% hundreds of others are. Text FAMILY  to 66866, learn more about Freedom Family Investments, liquidity fund on your journey to financial freedom through passive income. Text FAMILY to 66866.   Chris Martenson  21:42   this is peak prosperity's Chris Martinson. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  21:58   This week's guest is, to me, the world's foremost tax pro. He is an international authority on how you can permanently reduce your taxes, and he really makes taxes easy, fun and understandable, like no one else that I've ever met does. He runs a terrific educational platform too. It's called wealth ability. Welcome back to get rich education. Tom, we're right.    Tom Wheelwright  22:21   Thanks, Keith, always good to be here.    Keith Weinhold  22:23   Yeah, it's so good to have you back, because taxes are such a dynamic topic. And one place where I wonder if it's going to be dynamic, Tom, is we have a number of states that don't have any state income tax, which is something that people have to pay on top of their federal income tax. Federal alone can be up to 37% some of the states with the fastest population growth, like Tennessee, Florida and Texas, don't have any state income tax. So what I'm wondering, Tom is, are more states considering abolishing the income tax like those states have done.    Tom Wheelwright  22:59   We've actually seen a lot of states in the last couple of years reduced their income tax rates. So Arizona, where I live, is one of them. We went from over a potential tax rate of like eight and a half percent potential to an actual tax rate of 5% there was actually a proposal passed that would have increased it down to a tax rate of two and a half percent. Our former governor, Doug Ducey, his goal was to abolish the income tax in Arizona, and we did get down to two and a half percent. There are a number of states, typically in the middle of the country. You don't see any states on the coasts doing this, outside of Florida, that are reducing their tax rates. So you do see states doing that. You see other states that are increasing their tax rates. Recently, I was reading about Bill Belichick, and he said, Massachusetts is always hard getting the top earners, the top free agents, into New England. Because he says, This is taxachusetts, because they have a surtax on millionaires. Well, of course, all football players are millionaires. That is an issue. People are leaving states like California, Massachusetts, New York, New Jersey, and they're moving to low tax states such as Arizona, Texas, Florida and, you know, the whole southern belt.    Keith Weinhold  24:15   with Belichick having Tom Brady. It didn't matter if he couldn't bring in the best players, because Tom Brady made stars out of nobodies. It seems like he could complete a pass to any no name wide receiver or tight end for two decades there in New England. But can you tell us more about maybe interesting dynamics with state income tax? For example, I know that California has punitively high state income taxes, and then you have other states that have tax rate tables and some that have flat taxes, like, I think Pennsylvania has about a 3% flat income tax. Colorados is 4.4 so can you tell us more?   Tom Wheelwright  24:51   Yeah, there are, you know, the federal income tax has graduated rates. We go, actually, from a zero rate to currently a 37% rate, which is not really 37% rate. It's really 41% because there's a 4% add on tax that pretty much you're gonna pay. So it's really over 40% California has a graduated tax rate, but it goes up to 13% Minnesota has a high income tax. New York has a high income tax. So Massachusetts, we're seeing high income taxes. The states that provide have big governments and provide lots of services have high tax rates. That's why we see it on the coasts. Interesting enough. Minnesota. Minnesota is the liberal state in the middle of the country, and so they have liberal states tend to have very high tax rates, and conservative states tend to have very low tax rates.    Keith Weinhold  25:45   Now we have a lot of real estate investors here that have learned that the best deals are outside their home state. So that investor might be domiciled in a Minnesota, but investing in, say, Arkansas, tell us about how the state income tax affects them.   Tom Wheelwright  25:59    So it's kind of like being a US citizen, right? You live in the US. You're taxed on your worldwide income. You live in Minnesota. You're taxed on your worldwide income in Minnesota. So by virtue of where your residency is, you are taxed on all of your income. Now you'll get a credit, typically, for taxes paid to another state. Well, let's say that your tax rate in your state is 10% and then you invest in a state with a tax rate of 3% well you're going to get tax credit of 3% so you're still going to pay 7% in your state, plus 3% that state. You're still going to pay your 10% it's just going to be some of that's going to go to another state. Some of it's going to go to your state. But in total, your tax rate is likely to be wherever you live. That's youroverall state tax rate. I'll give you another example. Let's say that you invest in Texas, you live in in Minnesota, you're going to pay Minnesota tax rates on your income, you get no credit because you have no tax in Texas. What's worse is, though, you have property tax in Texas, but you don't get a credit in Minnesota for your property tax paid in Texas. So you have much higher property taxes in Texas than you do in most states. Right? Because every state has to raise revenue, right? In Texas has decided to it largely on sales tax and property tax. So that means that you don't get that offset. Property taxes are pretty serious in Texas. If you're an investor in Texas, you know that property taxes are pretty serious, but you don't get any kind of benefit in Minnesota, but you still pick up the income in Minnesota.    Keith Weinhold  27:38   In some Texas jurisdictions, property taxes can be 3% annually based on the property's value, pretty punitive. There in Texas, Texas is a good example. That's where we have often high property tax rates, but zero state income tax. So with these other states that have zero state income tax, are they subsidizing that with property taxes or sales taxes, or in what other way are they making up that?    Tom Wheelwright  28:03   Of course, for example, we were talking earlier about Tennessee. Tennessee doesn't have a personal income tax, but if you have your real estate owned through a limited liability company, you do have a 6% tax on the income of the LLC. So even though it's a pass through entity for Tennessee purposes, it's taxed. They have all sorts of mechanisms to raise revenue. All states need revenue. Now, some states raise less revenue per capita than other states. Those are the states that people tend to move to. But don't forget those other taxes. I mean, sales taxes. Sales taxes can be very high, right? And you pay sales taxes typically don't pay them on food or prescription drugs, but you typically pay them on pretty much everything else, and including leasing a car, they're going to get their money. It's just how they get their money.    Keith Weinhold  28:50   Well, we've been talking about ways that you could potentially legally escape taxation, depending on what state that you live in. So in a domestic sense, and Tom we pull back and we think about that in an international sense. A lot of Americans don't seem to realize that if they're, I guess, born and raised and get citizenship in the United States when they become an adult and get older and they go abroad, they have to continue to pay US taxes if they move to Norway or Dubai. Can you tell us about that?    Tom Wheelwright  29:21   Yeah, so US citizens are taxed on worldwide income as long as they're a US citizen. Here's what's really interesting in the US let's say you give up your US citizenship, you're still subject to taxes on your worldwide income for 10 years. Wow, after you give up your citizenship so you no one get any of the benefits of being a citizen. You've given that up, and you still have taxes for 10 years. Earlier this year, we did an episode, and we talked a little bit about this unrealized capital gains tax, right? People don't think, well, I'll just leave. Doesn't work that way. You're still going to have the capital gains tax for at least 10 years, and the only way to get rid of it is to give up your citizenship and wait 10 years. It's a pretty restrictive law, because most countries only tax if you live there, if you're a citizen of France, but you move to Belgium, you're taxed in Belgium, you're not taxed in France. Not true with us.    Keith Weinhold  30:19   Yeah, that's remarkable. I didn't know about that 10 year thing. Even if you renounce your citizenship, those taxes will follow you for 10 years regardless of where else in the world you live. Um, I'm just maybe this is a little bit of devil's advocate. I mean, this sounds preposterous when we first think about how Americans are taxed abroad for the rest of their life, but maybe thinking of it philosophically, if it does make sense in any way, which is really hard for me to say, but maybe it's because, okay, well, you were born and raised in the United States, where we have this very mature infrastructure and stable currency and good educational system, so you got to be a beneficiary of that. So when you're 30, you can't move away and never give us any tax money to support that. Again, what are your thoughts with that?    Tom Wheelwright  31:02   different countries have different tax systems? What I will say is, just like the state discussion, you do get a credit for taxes paid to another country. So if you have income taxes, let's say you're living in Portugal and you pay Portuguese income taxes, you're not going to pay taxes twice. You're going to pay the higher of the two rates, either the Portuguese tax rate or the US tax rate, but you should not be paying tax twice. Now, if you're going to do that, you need a really good team of tax professionals. You need a good US tax professional, and you need a good tax professional where you live, and those two tax professionals need to talk to each other on a regular basis, because otherwise you can end up paying double tax, and that is the worst of all worlds. You do not want to end up paying double tax. So make sure that just know that if you're going to invest in another country, or you're going to live in another country, you need double the tax advice.    Keith Weinhold  31:05   I am just going to speculate that there are an awful lot of people that don't consider taxes before they move, whether that's domestic or international, not that that should be the top consideration, but a lot of people probably aren't even thinking about it.    Tom Wheelwright  32:13   A lot of people aren't. That's true. Now, are there ways to reduce your taxes internationally, particularly if you're in business? Yes, there are ways that you can reduce your taxes. So know that there is still tax planning available. But I hear about people saying, I'm going to invest in the Dominican Republican, or I'm going to invest in Dubai, or I'm going to invest somewhere else. Just know that you've got now two sets of laws that you're working with you're working with US laws, and you're working with that country's laws. And so make sure that you've got good advisory on both sides. When we're talking about moving for tax considerations, we should cover Puerto Rico. Tell us about the advantageous tax laws for Puerto Rico, and if they're going to sunset, they're there for the foreseeable future. So Puerto Rico, depending on how you earn your income, you can potentially reduce your income tax rate from the current 37% rate in the US to 4% yeah, that's basically an agreement with Puerto Rico. Puerto Rico is still the US, but it's got special laws that it's almost like a treaty, right? Even though it's a territory of the US. And what happens is, is that if you set it up properly, you got to live there, by the way, you can't just pretend. You got to live there six months in a day out of the year, over six months a year. And if you do, then you get a 4% tax rate on the income you earn while you're in Puerto Rico. If you earn income while you're in the mainland, you're going to pay tax on the mainland, but the income you earn in Puerto Rico, you're going to pay 4% tax. And there are certain types of income that that works for certain types of income, it doesn't just make sure that this is one where you need a Puerto Rican tax advisor as well as your US tax advisor. Capital Gains also have they have a potential tax rate of zero. So there are obviously details you have to follow again, make sure, before you get into that, know that there are huge tax benefits for living in Puerto Rico. No question. You know, it's the Puerto Rican discount. What can I say? We say in Arizona that California has a beach tax and we have a desert discount. The same was true in Puerto Rico. Puerto Rico has a Puerto Rican discount. That's what it is.    Keith Weinhold  34:24   Yeah, you're going to be getting on a plane a lot in order to go anywhere. I know an awful lot of entrepreneurs that have relocated to Puerto Rico. You do too. Tom, you the listener, probably do as well. It's really important to have the right team before you make such considerations. And before we're done today, Tom and I will talk about how you can connect with him and learn more. But Tom, since we last had you here, you updated your terrific book, which I have on my bookshelf called Tax Free Wealth. Tell us about the updates and changes you made to the book.   Tom Wheelwright  34:56   We do a new edition of tax free wealth every time there's a major change in the tax law. So the second edition was the 2017 tax law, because that was a major change. Since 2017 though we've had six major changes to the tax law, we had a bunch of major tax law changes during COVID And so what we did was we actually took the 2017 and all the new ones, werolled them all into a new edition. By far. This is the best edition of tax free wealth by a long shot. I mean, I think tax free wealth, you know, got good bones to it. It's a good book. Got almost 4005 star reviews on Amazon. This is the one I like the best, by far.   Keith Weinhold  35:18   Tax Free wealth, I read the original edition, and it's not like watching motorcycles jump off ramps, but for a tax book, it's actually really a good read there. He really brings life and some good examples to how you can permanently reduce your taxes. Tom, you and your terrific firm wealth ability have been helping people do that for years. If you the listener, want to Tom's team and Tom's referral network to help you permanently reduce your taxes. We have a resource for you atget rich education.com/taxwe can actually set up a free consultation to confirm if indeed they can help you in your situation. And Tom, why don't you talk to us some more about the importance of having the right tax pro on your team, and how they're not actually an expense, but really they're an incentive to you, because the fastest way to get an ROI is actually by reducing your taxes, because it can be done almost instantly.    Tom Wheelwright  35:36   Yeah, for sure. And what's important is that you have a relationship with a tax advisor that does give you tax advice. That's why it's called a tax advisor. They actually give you tax advice, and they willing to give it to you. And they're not waffling. They're not saying, Well, I don't know, or they're not backing off. They're saying, Well, look, if you do this, this is what you get. You have to choose whether you want to make those changes to your situation, but they're going to give you, you know, what changes you can make to your facts in order to reduce your taxes. I think the most important thing, though, is that you have a partnership with your CPA, that this is a true relationship. And we've actually changed the way we work with clients. We used to charge for projects. We used to charge for tax returns. What we want is a relationship, so we basically charge a monthly fee for the relationship. So that's a recent change in our model, you're going to see more and more CPAs go to that model, because it is a much more comfortable model for both the CPA and for the client. But what we want to do is we want to emphasize the relationship. We don't want you to feel like every time you pick up the phone, you're going to get charged. We don't want you to feel like, well, all that tax return fee is just killing me. No, it's not a tax return fee, it's a monthly fee. It's an annual fee, billed monthly, is what it is. And that way you have something come up, you don't have to worry about them and get a bill for it. You have even an IRS audit come up. Once you're a client with us for a year. After the first year, we'll then allow you to pay a small monthly fee so that when you get audited, you won't pay us for handling the audit. We call that an audit defense plan. I talk about that in tax free wealth. To me, we've been operating this way. So my firm, which I worked with people like Robert Kiyosaki, we've been operating this way for several years, and it is the best way to work with a tax advisor, because you always have that relationship, and you never have to worry. I'm not going to get this big tax bill, this big fee, like you do for an attorney, right? You don't call your attorney, because you can get a big fee, right? Every minute it's going to be a big fee. This is a great way to work with a tax advisor and make sure that you can be proactive, and they can be proactive. It's really a great way to help build the relationship over time, which is something that you're going to want to have over time again. If you want to learn more and have that free consultation, you can start at get rich education.com/tax.   Keith Weinhold  38:56   Tom, it's been valuable as always. Thanks so much for coming back onto the show.    Tom Wheelwright  38:59   Thanks, Keith.   Keith Weinhold  39:06   Nine states don't have an earned income tax. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. And the way to avoid state income tax is clearly to start by living in one of those states. I don't believe that moving to one just for tax reasons, is a good idea, though, like I was saying earlier, do you agree with how your government is spending your tax dollars? If you don't, then you owe it to yourself to reduce your tax burden, otherwise, you are just helping to fuel reckless spending. And when you lower your tax burden, not only do you stop fueling reckless spending, of course, you increase your own personal return on investment. You know in fact. This paying any more tax than you have to fuel a kleptocracy. I think it's at least worth asking the question then, because this is get rich education, little learning moments, some vocab rehab. Here, you can think of a kleptocracy as being synonymous with a fevocracy. The strict definition of a kleptocracy is a government whose corrupt leaders use political power to expropriate the wealth of the people and land they govern, typically by embezzling or expropriating government funds at the expense of the wider population. All right, well, is that a little too strong for the behavior of our elected leaders or not? I'll let you decide that. But see, most of the 1000s of pages of the US tax code does not outline the taxes that you have to pay. Did you realize that the vast majority of the IRS Code is a guidebook to help you reduce your taxes that are in those tax tables. Well, now my own tax return is hundreds of pages long, and a lot of it outlines how my taxes have been reduced for that tax year. Well, Tom's excellent book called tax free wealth is sort of a digestible way to make the reading more fun than any psycho that would read the entire IRS tax code, but to make it even easier than that, it's really a good opportunity to connect with Tom's team and see exactly how they can help you reduce your tax In your specific situation, and is especially helpful for real estate investors and business owners. You know that I often like to leave you with something actionable. You can book a free consult at getrich education.com/tax that's get richeducation.com/tax.   Until next week, I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 2  42:06   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  42:34   The preceding program was brought to you by your home for wealth building. Get rich education.com you

In this episode, we sit down with tax expert Tom Wheelwright, personal accountant and business partner of Rich Dad Poor Dad author Robert Kiyosaki. With decades of tax advisory experience, Tom breaks down how you can leverage tax laws to accelerate your financial journey. As the creator of the WealthAbility System and bestselling author of Tax-Free Wealth, Tom shares insights from his new book The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make. Tune in to discover how to demystify taxes and make them work for you! RESOURCESDo you need financing for your next home or investment property purchase? Click HERE to schedule a pressure free consultation call with our personal mortgage lender Travis David of CMG Home Loans. He will help assess your current situation and will work with you to map out a plan for the future! ** Looking to buy real estate WITHOUT bank loans, credit, or significant cash? Click HERE to schedule a call with creative finance coaches Jenn and Joe DelleFave. **Click HERE to download Backflip, the all-in-one app for real estate investors. Backflip allows you to analyze deals, run comps and even apply for loans in seconds. The best part is, it's FREE.**If you enjoy the show, please leave us a review on Apple Podcasts or Spotify! It takes less than a minute and makes a huge difference in helping us land high profile guests to best serve our audience. Previous Guests Include:Brandon Turner, Tarek El-Moussa, David Greene, Tony J. Robinson, Mike Ayala, Jamie Gruber, Robert Croak, Mark Simpson, Chad “Coach” Carson, Heather Blankenship, Tim Bratz, J. Scott, Matt Faircloth, Michael Elefante, Devon Kennard, Paula Pant, Jake Harris, and Avery CarlSocial Channels:Instagram: instagram.com/wealthjuiceofficialYouTube: youtube.com/@wealthjuiceofficial**Disclaimer: The information provided on this podcast is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity. The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up to date. Financial markets and investments carry inherent risks. Individuals should conduct their own research and seek certified professional advice before making any financial decisions. The links in the episode descriptions may include referral or affiliate commissions, and we may receive compensation from partner websites.

Get my new book: https://bronsonequity.com/fireyourself Download my new special report - How to Use Inflation to Your Advantage - www.bronsonequity.com/inflation Welcome to our latest episode! Today, we're thrilled to feature Tom Wheelwright, a CPA and CEO of WealthAbility. Tom is an international authority on tax and best-selling author of Tax-Free Wealth and The Win-Win Wealth Strategy. With over 40 years of experience, Tom specializes in helping entrepreneurs and investors build wealth through strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki, Tom travels the world teaching how taxes can be leveraged as a tool for financial growth. His expertise has been featured in The Wall Street Journal, Forbes, Investor's Business Daily, and more. In this episode, Tom dives into why tax strategy is essential to wealth building, how to partner with the government for tax advantages, and what to expect in the upcoming election's impact on taxes. He also shares actionable advice on navigating tax laws, making smarter investment choices, and planning for potential tax changes in 2025. Tune in now to learn how you can build wealth and reduce your tax bill with practical strategies from one of the leading experts in the field! TIMESTAMPS 00:43 - Guest intro: Tom Wheelwright 02:43 - Tax strategy as a wealth-building tool 08:29 - How tax incentives drive government policy and benefit investors 10:09 - The impact of upcoming elections on tax laws 17:22 - How to prepare for major tax legislation in 2025 20:38 - Strategies for leveraging tax incentives in real estate and agriculture 25:51 - How to use tax strategy and consistency to minimize risk 31:09 - How to adapt your tax strategy to upcoming changes 34:08 - Connecting with Tom Wheelwright and WealthAbility Connect with the Guest: Website: https://www.wealthability.com/tom/ Linkedin: https://www.linkedin.com/in/tomwheelwright/ #TaxStrategy #RealEstateInvesting #FinancialFreedom

LISTEN: Get your daily dose of wisdom direct from Jenah Mahan-Williams, owner of Gateway Real Estate with Keller Williams Puyallup. Jenah shares her journey keeping the family tradition of working in real estate alive, surviving the Great Recession, starting a team, and eventually owning her brokerage. She shares incredible advice that every agent should be listening to about the importance of investing in real estate when you are a realtor. As she puts it, “you find security when you have a consistent stream of income.”

Tom Wheelwright is back by popular demand, our most recurring guest in GRE show history. He's a CPA, an International Authority on Tax, and Best Selling Author of “Tax-Free Wealth” amongst many other titles. We focus on the potential unrealized capital gains tax, which would tax the increase in property value even before sale. Tom explains the implications of this proposal and the broader impact on tax policy.  We cover the Democrats' proposal for capital gains tax at ordinary income rates, capital gains on gifts, and capital gains when you die. The proposal for a billionaires tax, which would tax unrealized gains at $100 million, could potentially extend to lower net worth individuals over time. Real estate income can result in a negative tax rate, increasing cash flow after taxes. Learn about the benefits of working with a knowledgeable tax advisor. Resources: GetRichEducation.com/tax Show Notes: GetRichEducation.com/519 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai      Keith Weinhold  00:01 Welcome to GRE. I'm your host. Keith Weinhold, this week we're talking about the value of the raw land that comes along with your property, the importance of an as built survey in real estate. Then it's tax topics with pro Tom wheelwright, the specter of an unrealized capital gains tax, higher capital gains tax rates, how gambling is taxed, and how to permanently reduce your overall tax burden. Today on get rich education,     00:33 since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests and key top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Corey Coates  01:18 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  01:34 Welcome to GRE from Essex County England to Essex, Massachusetts and across 188 nations worldwide. I'm Keith Weinhold. You're listening to get rich education before we talk taxes, let's talk about the land, the raw land, the lot that comes along with your property. Investors don't spend much time thinking about it. Yet the land is sometimes worth more than the home or structure that's on it, per the FHFA, land constitutes 32.2% of the value of the average US single family property in a metro area. Now the inexpensive land prices nationally, they are predominantly in what I'm classifying it as three US areas, the Midwest, the southeast and Appalachia well, where you have inexpensive land. Oh, that also happens to be where the cash flow for long term rentals resides. Land costs more by the water because people want water activities, water proximity and water view. So the lower costs are inland, and land also costs more by the water, because coasts and shorelines constrain development, sprawl that limits supply and a limited supply of buoys up prices. Consequently, the highest land values are mostly in the Northeast Corridor, from Boston to DC, Miami, coastal California and Honolulu. Yes, Manhattan values are flat out extortionate for raw land now, Seattle, Madison, Wisconsin and Boulder, Colorado. They are three places with really high land values as well. Seattle and Madison are on geographic isthmus. And isthmus is a narrow strip of land with water on both sides. It's interesting how Nashville's nascent population influx made its land values surge inside a cheap sea of southeastern US land values now costly land areas like these ones that I've been talking about on the coasts, they could work well for short term vacation rentals like Airbnb and VRBO, your classic waterfront and beachfront weekly rentals, but they do not work for long term rental cash flow. Texas Land values are sort of low to medium. Land near the Mississippi River and its major tributaries have low costs because rivers are efficient transportation networks, prohibitively high land costs. That's one reason, actually, why alternative building methods just really aren't as cost effective as some people think. I'm talking about things like 3d printed homes, prefabbed homes, tiny homes and shipping container homes, well, all of them have got to sit on land, just like conventionally build homes do. And there is a land cost. Talk to a tear down specialist, and they'll tell you that in some older homes, 100% of the total value is in the l and. And in practicality, it's actually even more lopsided than that. The structure can have negative value because demolition is not free. So for you to get an idea yourself, your property tax bill, it's going to show you your split. That's where you'll see the assessed values broken out for both your structure and the land. So the bottom line here is that cash flowing properties have low land values, typically 25% or less of the total property value. That's generally what you want to look for. And I swear the only thing that's more barren than raw land is the creative naming process for new developments. There is such a lack of creativity in these development names. I'm talking about names like Willow Creek Estates, stone bridge crossing, or what else do they name a new housing development? How about VISTA, view heights? They all have these idyllic sounding names that somehow just all sound like each other. Well, we're talking about raw land when you get in contract to buy a property, the seller side is expected to provide you with an as built, it often still comes in the form of an old fashioned piece of paper and as built survey, what it is is a plan view, a bird's eye or aerial view of your property. It's not a photograph, but a drawing, and it shows you the dimensions and the placement of structures on your property, and it includes things like fences and other features like easements. Now, lenders don't always require an as built before granting a loan, but it's a good idea to ask to see one before you wrap up your next deal. If you want to in your offer, you can even require that a recent as built be done by a surveying company. All right. Well, what exactly do you look for on an as built once you have one in hand, first see that the house or apartment building that you're buying is properly set back from the property lines to meet zoning requirements. If the six foot side setback is only five feet 10 inches, then you'll have to address that before you buy even if it's five feet 11 inches. Now it's possible that the jurisdiction that you're buying in will grant a letter of non conforming status, but if not, the structure is going to have to be adjusted. Another item to look for on an as built are encroachments. This is where part of a neighbor structure protrudes over the lot line and onto your property. And encroachment is really only acceptable if you're willing to grant the neighbor an easement in perpetuity for their encroachment onto your land. But why would you want to do that? The third thing that I want to mention that you should look for an as built is the existence of easements. An easement that just means that another party has a legal right to come over onto your land and use it. Yeah, and easements are actually quite common. It's not as threatening as it might sound. A common one is that as your as built would show, say, a five foot wide by 60 foot long easement. Is there that a utility company has access to. Well, that's something that makes sense. It's for the common good, but just be mindful that an easement cannot have a structure with a permanent foundation built on top of it, alright, because an electric company or a water company might have to excavate there. Most people think of easements on the raw land, but there are also aerial easements, for example, an overhead power line where the roof eaves are not allowed to intrude on that airspace. So to review what you learned so far today, the best cash flow properties typically have low land values, often about 25% or less of the tolerable property value. And an as built survey is an aerial view drawing of your property and its dimensions on an as built look to see that it meets zoning requirements like setbacks and look for encroachments and easements. It is resale properties where it's more important to look at as builts than it is for new construction properties.  As we're about to bring in tax pro Tom Wheelwright shortly, business owners and real estate investors really get so many of the best tax breaks in the US Code. But you've got to know. How to find them, or else work then with a CPA that does know how to find them, that really knows how to navigate their way around the tax code, people that make high salaries pay high taxes, as much as 50% you remember I did that episode a few months ago, high salaries don't create wealth. Taxes are one big reason why, say, for example, a chiropractor makes $1.2 million a year in salary. But if that chiropractor becomes an investor by buying and selling other Chiropractic Clinics or investing in real estate, their tax rate will drop by half or more, and that's because capital gains tax rates are about half of ordinary income tax rates. So see, you don't want to be a super earner. You want to earn enough money to invest and become a super owner, but tax policy could change Tom and I will discuss that first. Then we'll talk about reducing the amount of tax that you pay. Today is a new punishing unrealized capital gains tax coming that you will have to pay. What this means is that if you have a $500,000 home, and it rises in value to $550,000 well, you would have to pay tax on your $50,000 of profit, but you haven't sold your home. So this feels so wrong, because you haven't realized any profit at all. This is what unrealized capital gains tax is. And also, where are you going to get the cash to pay the tax on your 50k of profit just because your home rose in value yet you didn't realize it? I mean, might you have to sell your home in order to get the cash to pay the tax. And then what if you though could pay the tax on your unrealized capital gain so you do pay it, but then the following year, the home goes down in value. Well, would you get a refund then? So the unrealized capital gains tax proposal is a mess. Let's learn about it and more. This week's guest is a best selling author, CPA and an international authority on tax. He's brilliant because he actually makes taxes fun, easy and understandable. He's familiar to you because he's the most recurrent guest in show history. Welcome back to GRE Tom Wheelwright.   Tom Wheelwright  12:48 thanks always good to be on your show.   Keith Weinhold  12:50 Tom probably with more than 30 show appearances here now you are 6% of GRE episodes.   Tom Wheelwright  13:00 That's a little scary. But you know, taxes are your single biggest expense, so why not?   Keith Weinhold  13:05 It's appropriate. And yeah, I guess all these appearances are certainly an endorsement of how much you help our audience. It's also a reflection of how tax and legal are not my strong suit. So it really helps to have you here absolutely the all time, assists leader in GRE history then and Tyler. An awful lot of timely tax topics going on that are probably first and foremost in more people's news feeds than they usually are. As we're here during presidential campaign season, the one that it really seems to revolve around the most is this potential tax proposal on unrealized gains. I've been around long enough where I seem to see this proposal come up more often, but it never seems to go anywhere. So first, why don't you tell us what unrealized gains are?   Tom Wheelwright  13:51 it actually goes beyond that. Interestingly enough, what the Democrats are proposing is, first of all, they're proposing capital gains rates at ordinary income rates. So they're proposing doubling the capital gains rate. That's actually as important as anything else. The second thing is, they're proposing capital gains on gifts. So if you give it, if you give your business to your child, you have a capital gains ordinary income rates. They're proposing capital gains when you die. So not only an estate tax, but also a capital gains tax. So then you get taxed twice when you die. So about 80 to 90% of your estate goes to the government when you die. If you're a business owner, as an example, then they're proposing eliminating the 1031 exchange, which would mean that on a trade of real estate, you'd have a capital gains tax at ordinary income rates. Then they're talking about this unrealized capital gains so if you do nothing but build your business or your real estate, the increase in value is subject to capital gains taxes at ordinary income rates. Now you know their proposal is, we have this tax. Tax when you're over $100 million that is not seem to be in the news feeds right now, but that's what it is. They call it the billionaires tax, and they're calling it an alternative minimum tax on billionaires. But clearly, 100 million is not a billion. That's only a 10th of a billion. And the biggest issue, of course, is if you tax unrealized gains at 100 million, soon you're going to tax them at 10 million, then it's going to be 1 million. Because history. That's the history of our tax law. The history of our tax law. Remember, in 1913 when we passed the 16th Amendment, it was passed because it was only a tax on the rich, right? It would never have passed if it was going to be a tax on the average person. And yet it passed. Because great, we're okay taxing somebody else, as long as it's not our tax. We're okay taxing somebody else. That's pretty much what's going on with this unrealized gains tax is, oh, well, it's on somebody else and they have enough money. It's no big deal. Therefore, I'm okay with that, because why shouldn't they pay more tax? That is what this is about. The challenge is, is, as we saw with the income tax, eventually it will reach the average person, or at least the average entrepreneur, real estate investor. Because think also, let's say that you build your wealth in real estate, and then when you retire, you say, Well, look, I don't want to be doing active real estate anymore. I'm going to trade my single family homes or my apartment building. I'm going to trade for a Walgreens a triple net lease, well under their proposal, that would be taxed because, again, no 1031 exchanges over $500,000 so that means that if you accumulate your wealth through business or real estate, you pay a much higher tax rate than if you accumulate your wealth by investing in Wall Street through a 401k because if you invest in Wall Street through a 401K, you only have to pay tax as you pull that out, you're not going to be paying tax on the value. Now that's assuming that they don't tax the increase in value of your 401K, which is also obviously a possibility. Interesting enough people talk a lot about the constitutionality of this. The challenge with that is that we already have taxes unrealized gains. If you're a dealer in stocks, in securities you do mark to market, that is meaning that you're going to pay tax on unrealized gains. And so there is actually precedent for this, and that's the scary thing, is that they could point to that precedent and say, Well, wait a minute, it's just an income tax, it's not a wealth tax, that's what they're going to say. They're going to say it's an income tax, not a wealth tax, because it's on appreciation, and appreciation is income. That's how they're going to go down this road. Will it start at $100 million Absolutely, that's where it will start. Will it then drift down? Who knows? But likely that's the history of our tax system. Yeah. I mean, we've talked before about the phenomenon of the camel getting its nose under the tent. However, in this case, I didn't realize there's already precedent for unrealized gains, in a sense, as potentially, if this is approved for those with $100 million net worth, and in next it's 10 million net worth, $1 million net worth and so on, like you described there, when you talk about capital gains tax rates being stepped up so that they're at ordinary income tax rates. It's actually somewhat of an interesting philosophical discussion, in a way. It sort of makes sense that a person's gains from investment could or should be taxed at the same rate as one's income when they go to their day job. However, why don't we do that by lowering income taxes rather than doubling capital gains? Wait a minute, no, because it's a double tax. Let's say that you're a business owner. Why does your business increase in value? Well, because you're making income, but you're already being taxed on that income. It's called income tax. What we do in this country, which a lot of countries don't do, by the way, is we tax it a second time. We call that a capital gains tax or a dividends tax. We tax it twice now. Now we're going to have that second tax at the same rate of the original tax. So if you think about it, you're being taxed on the same income twice because it's your income that determines your value, so you're being taxed twice. It's really not the same. It's fine if you're invested in the stock market, and that's where your capital gains are. That's a hard one to argue too much, although it does take liquidity out of the market, because the problem with capital gains tax is being taxed over 28% it's about 28% is that you actually lower the contribution to the Treasury because there will be fewer capital gains. There will be so many fewer capital gains that you actually lose money. The Tax Foundation, taxfoundation.org, I'd refer people to, has done lots of studies on this, and it's very clear. Here that high capital gains rates actually reduce the amount of money that comes to the government. So this is purely political. This has nothing to do with let's generate more revenue, one of the challenges so you have to score this, right? So that means that you're scoring what's the revenue that's going to be produced? You have two types of scoring. One is called static scoring. The other is called dynamic scoring. Static scoring means that we're going to look at the capital gains we already have, and we're just going to, if we double the rate, we're going to double the revenue. So that's assuming that we're going to have the same number and amounts of capital gains as we add at the lower rates, right? Dynamic scoring means that we're going to take into account how people behave motivationally when you double the tax rate. Yeah. Well, let me give you an example. So I'm a business owner. My wealth is in my business primarily. Do you think, really, I'm going to sell that business and take the capital gains immediately and be done with it? But if I have a high capital gains rate, I'm going to sell this over 20 years. So I'm actually going to defer my capital gains as long as I can, because I don't want to pay those high capital gains rates. So that means less money to the government. That's what it means. So it actually reduces on a dynamic scoring if you look at truly how people behave and have behaved in the past. So this isn't a new thing, right? We've had high capital gains rates before. It's not like we don't know. It's not like we haven't seen this before. It's that, for whatever reason, politically, they've decided that, wait a minute, the rich are out of favor. We need to tax the rich more. That's a very popular line, and therefore this is a way to do that, even though it by all calculations that are dynamic, it would actually reduce the amount of funds that come to the Treasury.   Keith Weinhold  22:00 That does make sense about the double taxation. Case in point, with an apartment building, if you increase its noi, you have more income than pay tax that if you increase the noi, therefore you've increased the value of the building. Consequently, the capital gains tax that you might have to pay down the road Tom, maybe current capital gains tax are higher than I thought, is the 28% capital gains tax. Number You mentioned, current or proposed. What is that?   Tom Wheelwright  22:24 Well, right now we have a 24% capital gains tax, okay, we have 20% pure capital gains tax, plus we have a 3.8% net investment income tax. Doesn't apply right now if you're a real estate professional, but applies to everybody else under the Harris proposal formally adopted Biden's plan under the Harris proposal, then you would get a actually 39.6% rate, plus 5% net investment income tax, regardless of whether you're your real estate Professional. So that is 44.6% that's the 45% the 28% number I threw out is that's the number the Tax Foundation says is the maximum you can raise it to without losing revenue.   Keith Weinhold  23:11 That puts things into perspective, as real estate investors, for a long time, we've appreciated substantial tax shelters. What are they being the 1031, tax deferred exchange, like you mentioned, that's been around for more than 100 years. Does that have any realistic shot of being shot down? Of course, Trump shot down substantial parts of the 1031 outside of strict real estate investing.   Tom Wheelwright  23:32 He did, and he actually set the precedent for eliminating it. So by doing that, because he eliminated it on everything except real property, right? I mean, actually, and even before that, there was a time, and there's still ways you can do it with paper assets. But it's not a 1031 exchange. So 1031 exchange has it evolved. It's gotten it's shrunk. It keeps shrinking. Even three or four years ago, no realistic possibility of eliminating 1031 exchange. The challenge, of course, is it would have an impact on the liquidity of the market. However, big deals never do 1031 exchange. Ever you don't see big multifamily developments sold in 1031s. The only time you see that happen is when they've used the Delaware statutory trust. And then you've got some of the investors who use it. And some of them who don't, you can do that in the Delaware statutory trust, but the regular developers, I haven't seen a 1031 done by a syndicator in years. So could they eliminate? Yeah, they could.   Keith Weinhold  24:33 yeah, that would be concerning. Are there any other presidential hopeful proposals that have to do with taxes that are germane, and our audience should know about?   Tom Wheelwright  24:41 my heavens. So the Democrats want to raise taxes by $5 trillion they want those taxes to all be on investors. And the reason I say that is because typically, people who make less than $400,000 which is their threshold, are not major investors. Most of their money goes to spending. Money. If you're making under $400,000 you can easily spend $400,000 a year. Oh, yeah, okay, that's not that hard, especially in today's world. It's a transfer from high net worth individuals who invest their money in long term projects like real estate, like energy, like business, and it's going to be a transfer to people who spend the money and they're going to spend it, my prediction is that if the Democrats get their way, we enter into a long term period of stagflation, high unemployment and high inflation. Because if you transfer $5 trillion from people who aren't spending it in the first place to be able who do spend it. You've got $5 trillion of new money going into the marketplace. Now it could depress asset values. So that could be good for investors, okay? Because you don't have as much cash available to the I'll call it the investor class, to go into real estate. If that's the case, then you have $5 trillion less, right? I mean, it's not a huge portion of the market, but it's big enough. If you take $5 trillion out of investment capital, then that would put a downward pressure on asset prices, which would include real estate.   Keith Weinhold  25:29 we're talking about potential changes to the tax code. It's always a germane discussion, because taxes are the biggest expense in your life. We're talking with Tom wheelwright. We come back, we're going to talk about the real estate tax laws as they are now, for example, how your rent income is taxed differently than your job income, and also, what are taxes like on sports, gambling. You're listening to get rich Education. I'm your host. Keith Weinhold.   Keith Weinhold  26:45 hey, you can get your mortgage loans at the same place where I get mine, at Ridge lending group NMLS 42056, they provided our listeners with more loans than any provider in the entire nation because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. You can start your pre qualification and chat with President Caeli Ridge personally. Start Now while it's on your mind at Ridgelendinggroup.com that's Ridgelendinggroup.com   Keith Weinhold  27:16 you your bank is getting rich off of you. The national average bank account pays less than 1% on your savings. If your money isn't making 4% you're losing your hard earned cash to inflation. Let the liquidity fund help you put your money to work with minimum risk, your cash generates up to an 8% return with compound interest, year in and year out. Instead of earning less than 1% sitting in your bank account, the minimum investment is just 25k you keep getting paid until you decide you want your money back. Their decade plus track record proves they've always paid their investors 100% in full and on time. And I would know, because I'm an investor too. Earn 8% hundreds of others are. Text FAMILY  to 66866, learn more about Freedom Family investments Liquidity Fund on your journey to financial freedom through passive income. Text FAMILY to 66866.     Blair Singer  28:29 this is Rich Dad, sales advisor, Blair singer. Listen to get rich education with Keith Weinhold. And above all, Don't Quit Your Daydream.   Keith Weinhold  28:48 welcome back to get rich education. We're talking with tax pro Tom wheelwright. He's been talking to us about some of the proposals that presidential candidates have here in a campaign season, and whether these things become true or not. Sometimes it seems like just the fact that they're proposing. They're proposed, or if they get instituted at a small level years down the road, it can blow up into something bigger. So Tom tell us more about some of the proposals that are on the table.   Tom Wheelwright  29:12 So we talked about the democratic proposals, which also include things like a $6,000 tax credit for babies. It also includes an enhanced Child Tax Credit. Also includes some other there's lots of provisions in there, right? So it's a transfer. It's just a transfer of money from one group of people to another group of people. On the Republican side, we haven't talked about that now they want to extend the 2017 act. They've been very clear, that's what they want to do, which is an estimate $4 trillion so the other direction. So basically, you're talking about a $9 trillion swing between the two parties. We've never seen this before, ever in a presidential election. Now, that big of a difference, one major tax increase, one party proposing major. Tax increases, the other proposing major tax decreases in the same election. It's something that I'm glad people are paying attention to, because it's a little overdue in this election cycle. Because really, when you talk about policy, that's probably the biggest policy difference between the two parties.   Keith Weinhold  30:18 Now one thing we've learned over time from talking with you is these presidential wish lists, if you want to call them that. Well, these tax changes are things that require congressional approval, and we have a divided Congress currently. So what do you think the prospects are of really any of these things becoming new law?   Tom Wheelwright  30:36 First of all, remember, most of the 2017 act expires at the end of 2025 so something will have to be done next year. They don't have a choice, either that or is just expires, and then we're back to what we had. We have smaller standard deductions, we have alternative minimum tax again. We get a deduction for state income taxes, right? That comes back the one. We lose our 20% Small Business deduction, the only thing that stays permanent is the corporate income tax rate that was permanent in the original bill. So there is going to be something, you're right, if there is a divided Congress, and I say that if, because if one party sweeps, then, especially on the Democratic side, the Republicans don't seem to be as cohesive as the Democrats are on these things. And if the Democrats sweep, I would say, remember, we don't have Kyrsten Sinema, we don't have Joe Manchin from happening. And so would the Democrats sweep all these through, not all of them, but you're going to see a major tax increase for sure, on the Republican side, would you see the 2017 act extended? You'll probably see it, but you're right that otherwise, if it's a divided Congress, we're going to have something in between. We thought we would get a divided Congress in 2020 though, remember and we didn't. So I would not count on a divided Congress   Keith Weinhold  31:59 erstwhile 2017 Trump tax cuts in JOBS Act brought the highest marginal income tax bracket from 39.6% under Obama down to 37% as I remember it. Some thought Biden would take it back up to 39.6 but he hasn't and it's just stated 37 All right, so if Republicans stayed in power, presumably that 37% would go ahead and carry on. That's what we think about as our w2 income. Tom, why don't we talk about the taxes that actually exist today? I think a lot of real estate investors just don't understand the difference between how your w2 job income is taxed versus your taxes on real estate rent. Can you talk to us about that?   Tom Wheelwright  32:42 The reason it's confusing is because they're both considered ordinary income, right? The difference is, is that one is business income and one is non business income. Your wages are non business income. You don't get deductions against non business income, but you do get deductions against business income. So your rental income is considered business income for purposes of the Internal Revenue Code. What that means is you get deductions for taxes. You get deductions for interest, you get deductions for maintenance, you get deductions for depreciation. That's why, when you have your income from your rentals. Typically taxed much lower than your income from your salary, because you get no deductions against your salary like you do against the rentals.   Keith Weinhold  33:30 Maybe it would help to introduce an example here. I don't know if this will complicate things too much or not. If a real estate investor has, say, a single family rental property with $2,000 of rent, income, $1,000 mortgage, $800 in operating expenses. How is that tax that leaves them with $200 of cash flow?   Tom Wheelwright  33:50 You have $200 of cash flow, but then you probably have depreciation on top of that, which is a non cash deduction. And so let's say your depreciation is $500 that means you actually have a $300 loss that, in many cases, you can use to offset income from your w2 so you actually have a negative tax rate. In other words, you're making money from taxes. So actually, is that an increase to your cash flow? So it's a way to think of it is, I have $200 of cash flow from my tenant, if I have a $300 loss for tax purposes, let's say I'm in a 33% tax bracket. I have $100 of income from the government. So that means my cash flow is really after tax. Cash flow is $300 not $200 whereas if you have the same $200 of income from your wages. Let's say you have just the net, right? Let's start with the net. You have $200 well, you're going to be taxed. And let's say that again, your 33% tax rate, that means you're after tax, right, is going to be roughly $125,000 okay, under $30 so $130 we're. $300 so it's like twice as much. In fact, all of that difference is because of the tax law.   Keith Weinhold  35:06 Gosh, that was a great breakdown. I'm really glad that I introduced that example, $2,000 in rent, minus $1,000 for the mortgage, at $800 in operating expenses, again, leaving you with $200 in cash flow with that example. There's probably more going on here with taxes. Because, of course, with that $1,000 mortgage amount, some is going to be principal, some is going to be interest. In part of that interest can be tax deductible.   Tom Wheelwright  35:31 I'm assuming it's all interest, because if it were not, we'd have a higher taxable income. Remember, your principal payment is not deductible. So in your example, I was assuming that the $1,000 mortgage payment was all interest. If it was only $800 then you'd have $400 of income before depreciation. You don't have $100 loss, because, remember, your principal's not deductible, so therefore you have to add that back into your taxable income.   Keith Weinhold  35:58 Will you talk to us about how to apply depreciation to this income versus expenses. Example, is there anything else you can speak to when it comes to that $800 of operating expenses in this example, and those expenses include things like property insurance, property tax itself, maintenance repairs and utilities.   Tom Wheelwright  36:19 Right but also, for example, you might run your rental real estate business out of a home office in your home so you could have a home office deduction. You might have your use your car for the rental purposes, and then you get a deduction for your car. So there are additional expenses that aren't even in that $800 that you could pick up that would not otherwise you'd never get a deduction, and you're really not spending any more money. You're just using it for business, and therefore getting a business deduction. So it's really all about what do I get to deduct? Remember that if you own a home for yourself, you don't get to really deduct the taxes. You have a limit on how much you can deduct. So taxes are limited in deduction. Mortgage Interest may or may not be limited. Remember also that if you have a mortgage, you're limited to how much a $750,000 mortgage being deductible, whereas if you it's a rental property, it could be a seven and a half million dollar and mortgage, and you still get the deduction, so you're not limited like you are. On top of that, again, it's a business, so let's say that you put solar panels on your personal home, you'd get a 30% tax credit, but you'd get no depreciation deduction. If you put solar panels on your rental house, you get the same 30% tax credit, but now you also get a depreciation deduction of probably another 30 $40,000 in the first year. So there's always more deductions in a business setting than a personal setting.   Keith Weinhold  37:56 Well, real estate has been around a really long time. Often laugh when people talk about non conventional investments and put real estate investing in their real estate's about the most conventional investment that we can possibly think of. It's been around a long time. We think about a newer thing that people do with their money, but I sure don't call it investing. That's sports gambling, and it's something that you and I haven't talked about before. Here Tom in 2018 the Supreme Court opened the way for states to legalize sports gambling, and at last check, 38 states, plus DC and Puerto Rico have legalized at least some form of sports gambling. So now it's a more germane conversation for you and I to have than it was a few years ago. Can you tell us about sports gambling, taxes and how it's treated.   Tom Wheelwright  38:41 So remember, all income is taxable. So that includes gambling winnings. They are taxable. In fact, you'll get a 1099 just like you would if you rendered services, you'd get a 1099 or you have interest income, you get 1099 you get 1099 from gambling. What you actually have to show is that you actually have gambling losses. So you have to track those gambling losses to show the IRS that you got gambling losses. But your gambling losses can never be more than your gambling winnings. You never get to generate a tax loss on gambling. What that means is, is that if you win $10,000 during the year, and you can prove that you lost $8,000 during the year, you're going to be taxed on $2,000 but if you can't prove the 8000 you're going to be taxed on 10,000   Keith Weinhold  39:33 so you the gambler, have the burden of tracking this, and I guess tracking your losses. I'm not a gambler. How would one track their losses?   Tom Wheelwright  39:42 I would keep detail ledger. Personally, I probably have a separate bank account just for gambling. Gosh, I'm not a gambler either, so that's what I would do. I would have a bank account just for gambling, by the way. It's also a good way to budget your gambling so they, you know, get in trouble, right? So just set up a separate bank account. Don't put whatever money you say, I'm comfortable with this money, I'm going to gamble with this money put in that bank account, and then you have a ledger that shows the money that went in and the money you lost, the money you won, and don't do anything but gambling in that bank account.   Keith Weinhold  40:15 Hey, that separate account's a great way to hide it from your spouse, not that I'm suggesting. Not bad.   Tom Wheelwright  40:22 Interesting. You went there.   Keith Weinhold  40:23 I'm not a gambler at all. Can't even believe I was thinking that far ahead. What are the gambling tax rates like?   Tom Wheelwright  40:31 They're ordinary income tax rate. So gambling winnings are just ordinary income. They're the same as your wages. They don't have social security taxes their income, just like any other kind of income, nothing special. And this all applies to whether it's sports gambling or general gambling, like lotteries and sweepstakes?  Just remember, all incomes taxable unless the government says it isn't all income, okay? And then there's some types of income that are taxed at special rates, like capital gains, but gambling has no special rates. By the way, gold also has special rate for when you sell gold, it has its own tax rate. Gambling has no special tax rate, so it's just your ordinary income rates.   Keith Weinhold  41:11 To me, it seems like it's hard to break even with gambling over time, and then when you take the tax adjusted earnings that you get from it, you know, over the long term. I just don't think Harris and Bally's Casino is really incentivized to inform gamblers on how punitive this can be with ordinary income tax rates applied to gambling winnings.   Tom Wheelwright  41:30 No, but they will send you your 10909g I guarantee that, that's for sure.   Keith Weinhold  41:34 Well, Tom has helped business owners and real estate investors permanently reduce their taxes. He does it like virtually no one else in the world does by keeping it simple, by helping you find deductions that other CPAs can't do. You can learn more about how Tom and his team can actually help you. You can get a free consultation. You can do that at getricheducation.com/tax. And Tom tell us more about the importance of a business owner or a real estate investor or anybody else really being connected with the right kind of tax professional that can permanently reduce your taxes.   Tom Wheelwright  42:12 So remember that if you want to change your tax, you have to change your facts. It's that simple. What you have to do is you need to know what facts you need to change. That's where a good tax advisor comes in. Is what facts do you need to change in order to change your tax now good news is, wrote tax through wealth. So you got an idea of what that is, but the tax law is very detailed. You must dot your i's cross your t's, so to speak, so that you make sure that you meet all of the rules, such as documentation, for example, for your business expenses. When you do that, you're going to get a better tax result, especially if your tax advisor is also preparing your tax return. Because really, your tax return is just part just how you implement your tax strategy, right? That's how you do it. So we launched, just recently, a franchise of tax advisors, and now we actually have much, really good control, quality control with our tax advisors, and they use our software system. It's very important that you have somebody, if not us, find somebody who you know you can actually give tax free wealth too, and say what cares make sure that we're doing it this way. But if the easy button is really the getricheducation.com/tax.   Keith Weinhold  43:27 Tom Wheelwright,  It's been valuable as always. Thanks so much for coming back onto the show.   Tom Wheelwright  43:33 Thanks, Keith.   Keith Weinhold  43:40 Yeah, key insights from Tom as always, taxes are complicated. Tom's Network helps sort it out for you. We've already covered a lot of ground on this week's episode with raw land values as built, proposed tax plans and how to reduce your tax burden within the existing tax system. Tom and I talked, and he will be back yet again with us later this year for more tax wizardry. Now, just recently here, Kamala Harris proposed a smaller capital gains tax hike than Biden. She's starting to put sort of her own policy spin on things, breaking with the President on the size of a proposed increase on the capital gains tax rate that is a 28% top tax rate when investments are sold for those that make a million dollars plus. So that's more than the current 23.8% top rate, but less than the 39.6% rate that Biden had supported all income is taxable. Therefore it is axiomatic that the fastest way to increase your ROI is to work with a tax advisor that can find you all of the biggest deductions right away. You can read Tom's book Tax Free Wealth, get a good system of documentation going and get connected with Tom's team. At the end of an episode at times, I like to leave you with the most actionable resource on the topic that we covered. You can schedule a free call to see how Tom's team can help you out. At getricheducation.com/tax. That's getricheducation.com/tax. Until next week. I'm your host. Keith Weinhold, Don't Quit Your Daydream. 45:33 Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC, exclusively. Keith Weinhold  46:01 The preceding program was brought to you by your home for wealth, building, getricheducation.com.  

Ben Kinney, Bob Stewart, and Chad Himes discuss their top ten must-read books on money, wealth building, and investing. From Kiyosaki's "Rich Dad Poor Dad" to JL Collins's "The Simple Path to Wealth," the trio explores diverse financial principles, real estate strategies, and business acumen. They also delve into the stock market, tax efficiency, and long-distance real estate investing with insights from "Tax-Free Wealth" by Tom Wheelwright and David Greene's guide for out-of-state property investment. This episode promises a rich compilation of resources to elevate your financial literacy and investment strategies.   Here are links to the books talked about in this episode: Rich Dad Poor Dad: https://amzn.to/2AH52hr Cash Flow Quadrant: https://amzn.to/3edKStX Simple Path to Wealth: https://amzn.to/30PYN5w The Power of Zero: https://amzn.to/2YdAOeX Profit First: https://amzn.to/2NRjEgf Trammell Crow Master Builder: https://amzn.to/2YdHwBt Tax-Free Wealth: https://amzn.to/2F7v24J Millionaire Real Estate Investor: https://amzn.to/2UWUUb8 HOLD: https://amzn.to/2AGnjLT Long Distance Real Estate Investing: https://amzn.to/3deWFqu   Join our Facebook Group: https://www.facebook.com/groups/   Part of the Win Make Give Podcast Newtork

Today's episode addresses how to create multiple tax-free income streams that don't show up on the IRS's radar and that contribute to you being in the 0% tax bracket in retirement. Having some money in a tax-deferred account, like an IRA or 401k, is the first way high-income earners can create tax-free wealth for retirement. Contributing to your Roth 401k or Roth 403b, as well as leveraging a backdoor Roth, are a couple of additional ways to build tax-free wealth in retirement. David touches upon what CPA and retirement expert Ed Slott calls “the single greatest tax benefit in the IRS tax code.” David makes a comparison between Indexed Universal Life vs. a taxable brokerage account. David believes that “the higher your tax bracket, the more it makes sense to reposition surplus savings from your taxable account to indexed universal life.”     Mentioned in this episode: David's upcoming book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Ed Slott

Tom Wheelwright is a renowned CPA and a tax and wealth expert who has dedicated his career to helping individuals and businesses achieve financial independence. As the founder of WealthAbility®, TFW Advisors, PLA Software, and the Wheelwright Manahan Family Office, Tom has built a network of businesses focused on providing education, tax preparation, and tools that empower people to break free from financial reliance on employers, Wall Street, and the government. He is also the trusted CPA for Robert Kiyosaki, the author of Rich Dad Poor Dad, and an international speaker who has shared his insights with over 100,000 entrepreneurs and investors across six continents. Tom is the bestselling author of Tax-Free Wealth and The Win-Win Wealth Strategy, books that have transformed the way people think about taxes and wealth building. His approach centers on using the tax code strategically to create and preserve wealth, making the complex world of taxes both understandable and advantageous. In addition to his writing, Tom hosts "The WealthAbility® Show," a popular podcast where he shares his expert insights on tax and wealth strategies, solidifying his reputation as a leading voice in the financial world.   During the show we discuss: What Motivated Tom Wheelwright to Write The Win-Win Wealth Strategy How Tom Wheelwright Defines a "Win-Win" Investment, And Why It is Crucial for Both Investors and Society The Most Overlooked Government Incentives That Investors Should Be Aware Of How Investors Can Navigate The Complexities Of Regulations Associated With Tax Incentives The Key Factors That Determines Whether An Investment Will Be Eligible For Government Incentives How the Timing Of An Investment Influences Its Eligibility For Tax Incentives The Most Common Misconceptions About Tax Incentives What Investors Should Consider When Deciding Between Different Types Of Incentive-Eligible Investments The Risks Of Relying On Government Incentives, And How They Can Be Mitigated The Red Flags Investors Should Watch For When Evaluating Incentive-Based Investment Opportunities The StepsInvestors Should Take To Identify And Utilize Government Incentives Available To Them The Role Financial Advisors Play In Helping Clients Navigate Incentive-Based Investments How To Stay Updated On Tax Law Changes That Could Affect Your Strategies How Business Owners Can Leverage Tax Incentives To Scale Their Companies While Contributing To Economic Growth   Show Resource/s: https://tfwadvisors.us https://tomwheelwright.com/ https://tomwheelwright.com/#podcast https://tomwheelwright.com/#books

In this episode of the Wealth Strategy Secrets of the Ultra Wealthy Podcast, I had the pleasure of sitting down with Tom Wheelwright, a true authority in the realm of wealth and tax strategy. Tom is a CPA, the Founder and CEO of WealthAbility based in Tempe, Arizona, and the best-selling author of *Tax-Free Wealth*. With a unique talent for making taxes fun, easy, and understandable, Tom has carved out a niche as one of the leading wealth and tax experts globally. Tom's approach is both practical and strategic, offering listeners actionable steps they can implement to optimize their tax situation and accelerate their wealth-building journey. Throughout our conversation, Tom shared invaluable insights on how entrepreneurs and investors can build wealth by strategically and permanently reducing their tax liabilities. His work has been featured in prominent media outlets such as The Wall Street Journal, Washington Post, Forbes, FOX & Friends, and NPR, to name just a few. As a Rich Dad Advisor to Robert Kiyosaki, author of *Rich Dad Poor Dad*, Tom brings a wealth of knowledge and experience, frequently speaking at conferences worldwide on these critical topics. Whether you're an entrepreneur looking to maximize your financial potential or an investor aiming to protect and grow your assets, this episode is packed with essential information that can help you achieve your financial goals. Tune in to learn from one of the best in the business. In this episode, we talked about: Strategies for achieving long-term wealth through effective tax planning Preparing for potential tax law changes and how to stay ahead Ensuring your wealth is protected and grows through smart tax planning Practical methods for permanently lowering your tax liabilities   Click here to learn more: https://pantheoninvest.com/episode134/

In this engaging episode of the Infinite Wealth Podcast, hosts Cameron and Anthony sit down with Tom Wheelwright, a celebrated tax advisor and author of “Tax-Free Wealth.” Tom delves into his unexpected journey with Rich Dad advisor Robert Kiyosaki, his abundance approach to tax planning, and the proactive strategies entrepreneurs can use to grow and protect their wealth. Highlights include an in-depth look at the tax code's incentives, the critical role of a knowledgeable CPA, and innovative uses of whole life insurance. Tom also offers insights into upcoming tax law changes and how to prepare for them.   Resources: Tom's Website: https://tomwheelwright.com/ Schedule your 15-minute call with Anthony or Cameron here: http://bit.ly/iwc15podcast Check our online course at www.InfiniteWealthCourse.com Buy Becoming Your Own Banker by R. Nelson Nash http://bit.ly/BYOBbookIWC 

In episode of Wealthion, Andrew Brill speaks with renowned CPA and lawyer Mark Kohler. As the founder and senior partner at KKOS Lawyers, Mark is dedicated to helping people financially achieve their American dream. Kohler shares his expert strategies on how to build and protect wealth through smart tax and legal planning. Some of the key strategies they discuss include:  How to utilize Roth IRAs from an early age The benefits of side hustles and rental properties Advanced tax strategies to minimize liabilities Did you like this video? Hit the like button and let us know in the comments! Timestamps:0:00 - Introduction 0:27 - Does the American Dream Still Exist?  2:24 - Teaching Financial Responsibility to Kids  5:04 - Benefits of Early Roth IRA Contributions 8:27 - The Rise of Side Hustles and Wealth Building 10:06 - Real Estate Investment Strategies 12:48 - Choosing the Right Type of Real Estate 15:41 - Partnering for Real Estate Investments 17:57 - Self-Directed IRA for Real Estate 20:44 - Setting Up LLCs for Self-Directed IRAs 22:04 - The Importance of Revocable Living Trusts 24:17 - Advantages of S Corporations for Subcontractors 26:48 - Converting 401k to Roth IRA 30:44 - Tax-Free Wealth with Roth IRA 33:17 - Alternative Investment Strategies: Hard Money Lending 35:31 - Investing in Cryptocurrency with Self-Directed IRA 38:10 - Upcoming Crypto Tax Summit Details 40:04 - Political Impacts on Tax Legislation 41:48 - Closing

Unlock the secrets to achieving financial success and stability with insights from Tom Wheelwright, tax advisor extraordinaire and author of "Tax-Free Wealth." This episode of "Escaping the Drift" promises to redefine your understanding of business finance and accounting, equipping you with the knowledge needed to transform your entrepreneurial journey. Tom shares his fascinating path from humble beginnings in his father's printing company to becoming a trusted advisor to financial powerhouse Robert Kiyosaki. Learn why mastering financial statements can be a game-changer and hear eye-opening stories about entrepreneurs who discovered untapped growth potential by simply understanding their numbers.We dive deep into maximizing cash flow and mastering tax strategy. Tom demystifies the process of analyzing income statements and balance sheets, offering practical advice on managing expenses and distinguishing between offensive and defensive expenditures. Explore how to optimize your income, ensure that liabilities contribute positively to your business, and understand the importance of trusting assets when managing debt. Whether you're a seasoned entrepreneur or just starting, these insights can help you create a robust financial foundation.Finally, discover advanced tax strategies tailored for real estate professionals and family-focused financial planning. Tom highlights the benefits of having a home office, leveraging tax payments for investments, and employing your children to maximize standard deductions. Learn the intricacies of writing off business expenses and how to build your children's financial literacy from a young age. Plus, understand the value of upgrading your tax advisor to avoid costly mistakes and optimize your tax savings. With actionable tips and expert advice, this episode is a treasure trove for anyone looking to take control of their financial future. Tune in and start escaping the drift today!Highlights:(03:44 - 05:14) The Importance of Financial Literacy(12:31 - 14:09) Tax Preparation Progression(16:37 - 17:38) Choosing the Right Tax Advisor(19:20 - 21:17) Handling IRS Audits With Professional Help(24:07 - 24:49) Tax Debt Repayment Rules and Options(31:17 - 32:19) Leasing vs Buying Car Costs(34:24 - 35:28) New Mexico Travel for Tax Deduction(39:56 - 40:39) Deductions Criteria for Business Expenses(45:04 - 46:21) Tax-Free Wealth User's Manual(48:28 - 49:22) Franchise Locations and Tax TipsCHAPTERS (00:00) Maximizing Tax Savings With Tom Wheelwright(04:58) Maximizing Cashflow and Tax Strategy(14:37) Navigating Taxes With Confidence(25:06) Leveraging Tax Strategies for Real Estate(37:58) Strategies for Family and Finances(49:27) Engaging Fans for Escaping the Drift

Welcome to a special episode of The Real Estate Breakthrough Show! Today, we have the honor of hosting Brett Swarts, an accomplished entrepreneur and the founder of Capital Gains Tax Solutions. Brett, who serves as a Deferred Sales Trust Trustee, brings a wealth of knowledge in exit planning, real estate investment, and wealth management.   He is the author of Amazon's #1 best-seller "Building a Capital Gains Tax Exit Plan" and a SUCCESS® Certified Coach, making him an authority in the field. About Brett Swarts: Brett Swarts leads Capital Gains Tax Solutions, where he helps clients with net worths ranging from $5M to $100M create and preserve wealth through the Deferred Sales Trust (DST) exit plan. With over $500 million in CRE brokerage and DST transactions under his belt, Brett combines his real estate investment expertise with innovative tax deferral strategies.    He also hosts the Capital Gains Tax Solutions and Expert CRE Secrets podcasts, interviewing industry leaders on topics like wealth management, leadership, and tax strategies.   Episode Topics: Introduction and Initial Meeting Deferred Sales Trust (DST) vs. 1031 Exchange Benefits of DST Historical Context and Personal Stories Client Success Stories Operational Details of DST Investment Flexibility Comparing DST to Traditional Trusts Future Tax Implications and Strategies Expert Guidance and Resources Join us for an enlightening discussion with Brett Swarts as he shares his expert insights and practical advice on capital gains tax solutions. Whether you're a high-net-worth individual, a real estate investor, or a trusted advisor, this episode is packed with valuable information to help you navigate the complexities of capital gains tax deferral. More about Brett: linkedin.com/in/brett-swarts capitalgainstaxsolutions.com expertcresecrets.com experttaxsecrets.com Email: brett@capitalgainstaxsolutions.com Don't forget to like, comment and subscribe!

My guest in this episode is Tom Wheelwright. Tom is a CPA, CEO of WealthAbility (Tempe, Arizona) and Best-Selling Author of Tax-Free Wealth. Wheelwright is a leading wealth and tax expert, global speaker, and Entrepreneur Magazine Contributor. Tom is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki (Rich Dad Poor Dad), Tom frequently speaks at conferences worldwide to entrepreneurs on these topics. His work has been featured in The Wall Street Journal, Washington Post, Forbes, Accounting Today, Investor's Business Daily, FOX & Friends, ABC News Radio, NPR, Marketplace and many more media. Robert Kiyosaki, bestselling author of Rich Dad Poor Dad, calls Tom “a team player that anyone who wants to be rich needs to add to his team.” In Robert Kiyosaki's book, The Real Book of Real Estate, Tom, himself, authored Chapters 1 and 21 of this book. Tom also contributed to Robert Kiyosaki's Rich Dad Success Stories, Who Took My Money, Unfair Advantage, Why the Rich Are Getting Richer and More Important Than Money: an Entrepreneur's Team. Tom has written many articles for publication in major professional journals and online resources and has spoken to thousands throughout the U.S., Canada, Europe and Australia. Tom has also used his superior relationship and team building skills to advise the Canadian market in the art of investing in the U.S., by contributing to Philip McKernan's South of 49 and Fire Sale. For more than 30 years, Tom has devised innovative tax, business and wealth strategies for sophisticated investors and business owners in the manufacturing, real estate and high tech fields. His passion is teaching these innovative strategies to the thousands who come to hear him speak. He has participated as a key note speaker and panelist in multiple roundtables, and led ground-breaking tax discussions challenging the status quo in terms of tax strategies. Interview Links: Tom Wheelwright website: https://tomwheelwright.com/. Wealthability: https://www.wealthability.com/. Subscribe To Our Weekly Newsletter: The Wealth Dojo: https://subscribe.wealthdojo.ai/ Download all the Niches Trilogy Books: The 21 Best Cashflow Niches Digital: ⁠⁠https://www.cashflowninjaprograms.com/the-21-best-cashflow-niches-book⁠⁠ Audio: ⁠https://podcasters.spotify.com/pod/show/21-best-cashflow-niches⁠ The 21 Most Unique Cashflow Niches Digital: ⁠⁠https://www.cashflowninjaprograms.com/the-21-most-unique-cashflow-niches⁠⁠ Audio: ⁠https://podcasters.spotify.com/pod/show/21-most-unique-niches⁠ The 21 Best Cash Growth Niches Digital: ⁠https://www.cashflowninjaprograms.com/the-21-best-cash-growth-niches⁠⁠ Audio: ⁠https://podcasters.spotify.com/pod/show/21-cash-growth-niches Listen To Cashflow Ninja Podcasts: Cashflow Ninja ⁠https://podcasters.spotify.com/pod/show/cashflowninja⁠ Cashflow Investing Secrets ⁠https://podcasters.spotify.com/pod/show/cashflowinvestingsecrets⁠ Cashflow Ninja Banking ⁠https://podcasters.spotify.com/pod/show/cashflow-ninja-banking⁠ Connect With Us: Website: http://cashflowninja.com Podcast: http://resetinvestingsecrets.com Podcast: http://cashflowinvestingsecrets.com Podcast: http://cashflowninjabanking.com Substack: https://mclaubscher.substack.com/ Amazon Audible: https://a.co/d/1xfM1Vx Amazon Audible: https://a.co/d/aGzudX0 Facebook: https://www.facebook.com/cashflowninja/ Twitter: https://twitter.com/mclaubscher Instagram: https://www.instagram.com/thecashflowninja/ TikTok: https://www.tiktok.com/@cashflowninja Linkedin: https://www.linkedin.com/in/mclaubscher/ Gab: https://gab.com/cashflowninja Youtube: http://www.youtube.com/c/Cashflowninja Rumble: https://rumble.com/c/c-329875 --- Send in a voice message: https://podcasters.spotify.com/pod/show/cashflowninja/message

Tired of paying through the nose in taxes on your real estate investments? Whether you own a couple of rentals or a multi-million dollar real estate portfolio, this eye-opening episode could save you a fortune in taxes and supercharge your wealth. Don't miss Chris' step-by-step guide to legally slashing your tax obligations through cost segregation and real estate professional status.Buy this book:Tax-Free Wealth - Tom WheelrightRESOURCES: 

How much money you make is certainly an important factor for early retirement. However, it's not the most important factor. The amount you keep is truly what matters. This is largely driven by how much you spend and how much you give to the government. Giving to the government is a reference to your tax bill and that's where Tom Wheelwright comes in. Tom runs WealthAbility where he helps business owners permanently lower their tax bill. Many people are giving away thousands of dollars that are rightfully theirs if they fully utilize the tax code. If you found this episode helpful, please share it with a friend! Links from The Episode WealthAbility Book: Win-Win Wealth Strategy Book: Tax-Free Wealth YouTube Interview https://youtu.be/EEdwspnvQDo Join the Community We'd love to hear your comments and questions about this week's episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Grab the Ultimate FI Spreadsheet Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please subscribe and leave a rating/review! >> You can do that by clicking here

The elections have everyone's attention these days, and for a good reason… Both sides are proposing some big tax changes that could really shake things up for us investors. Now, not 100% of what's being proposed is going to be implemented…  But we need to be prepared in terms of what happens on either side of things. That's why I'm so excited to have Tom Wheelwright back on the show. He's a tax and wealth expert who understands this complicated stuff inside and out… And today, he's shared his perspective on… …what's currently being proposed, how it's going to impact the real estate investors, and how to be prepared for it. Tom Wheelwright is the founder and CEO of WealthAbility, the first CPA-based franchise with a proprietary strategic tax planning process for entrepreneurs. He is also the author of “Tax-Free Wealth” and a Rich Dad Advisor to Robert Kiyosaki. He explains how one of the most problematic pieces of Biden's proposals is the idea of… “taxing unrealized gains” Which means, you'll be taxed on the paper gains of your non-liquid assets like real estate investment or business valuation… And other assets like retirement accounts or home value…before liquidation. I KNOW… It doesn't make sense. In fact, it's actually destructive for the economy as this could potentially lead owners to liquidate part of their holdings to pay these taxes…disincentivizing long-term investment. But that's just one piece. There are many other insane parts of the proposals that will impact your returns, like… - Eliminating 1031 exchanges or severely limiting their use - Doubling the capital gains tax rates - Taxing all business income of small businesses instead of just taxing profits Now… We obviously can't control what happens. But if you'd like to be prepared for the worst scenario, Tom shares some really good insights to save and grow your wealth. You don't wanna miss out on it. Take Control, Hunter Thompson Resources mentioned in the episode: Tom Wheelwright Link to previous episode with Tom Website Book Podcast Interested in investing with Asym Capital? Check out our webinar.   Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors. Tired of scrambling for capital?  Check out our new FREE webinar -  How to Ensure You Never Scramble for Capital Again (The 3 Capital-Raising Secrets). Click Here to register.   CFC Podcast Facebook Group

Jason welcomes back Catherine Austin Fits as the guest of the show, and also announces the upcoming Wednesday masterclass on Zoom, focusing on taxation and money-saving strategies. The first guest for these high-content discussions will be 'Rich Dad' author Tom Wheelwright, who wrote the book "Tax-Free Wealth." This FREE masterclass, aimed at providing deep insights and will be held on the second Wednesday of every month. Go to https://www.jasonhartman.com/wednesday to register for FREE today! And in part 2 of Jason's talk with Catherine Austin Fitts, they discuss China's approach to Central Bank Digital Currencies (CBDCs), which integrates CBDCs through commercial banks to avoid disrupting the existing banking system. They contrasted this with the European Central Bank's approach, which might eliminate traditional banks. Fitts expressed concerns about CBDCs' potential for government control and surveillance, emphasizing the need for privacy and financial autonomy. They also discuss the broader implications of digital currencies, inflation, and the importance of decentralized financial practices. Fitts advises maintaining strong relationships with local banks and being prepared for economic instability. #CBDC #DigitalCurrency #BankingSystem #FinancialPrivacy #ChinaCBDC #EconomicStability #Decentralization #FinancialAutonomy #SurveillanceConcerns #LocalBanks #Inflation #EconomicPolicy #FinancialControl #PrivacyRights Key Takeaways: Jason's introduction 1:27 Join our FREE Zoom Masterclass with Rich Dad author Tom Wheelwright https://www.jasonhartman.com/wednesday Catherine Austin Fitts interview part 2 3:02 Video clip: Prof. Richard Werner 5:38 Video clip: Minneapolis Fed chair Neel Kashkari 7:34 What can we do to stop the CBDC 11:26 Disintermmediating investments, Bitcoin and inflation 18:09 The 2 year cycle  19:28 Bitcoin 21:47 Inflation or deflation 24:34 Action steps for our investors https://live.solari.com/   Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com  

Tom Wheelwright, my friend and author of Tax-Free Wealth, describes the US tax code simply as a series of government-sponsored incentives. As someone who hates paying taxes, this fact has made me extraordinarily patriotic. The problem is, that sometimes incentives backfire. Case in point—during the British Raj rule in India, there was a proliferation of […] The post 429: Taxocracy appeared first on Wealth Formula.

Despite the ever-evolving landscape of tax legislation, real estate continues to be one of the most tax-advantaged investment opportunities available. With the help of a great CPA, proper planning, and a shift in perspective, taxes can transform from a burden into an exciting opportunity for growth. Lucky for you, we've got one on speed dial! In this episode, CPA and bestselling author Tom Wheelwright returns to discuss all things taxes—including the latest laws, impending changes, and their impact on investors. Visit our Special Reports Library under Resources at RealEstateGuysRadio.com.

In this new episode of Unlock Your Potential, I chat with Tom Wheelwright, CPA, entrepreneur, best-selling author, Rich Dad advisor & international authority on taxation. We start the episode by delving into Tom's journey in tax planning for entrepreneurs and uncovering the common ground between entrepreneurs and tax planners. In the middle of the episode, Tom explains the two rules every entrepreneur needs to know to understand the tax law about deductions. Near the end of the episode, we reflect on a crucial point for entrepreneurship: see the obstacle as an opportunity instead of a barrier. Hear what Tom has to say about this. I hope you enjoy this episode and learn some hacks to maximize your deductions and make your business more profitable. Check Out More of Tom's Content Here

Join us as Tom Wheelwright delves into effective ways for entrepreneurs and investors to reduce their taxes drastically. This episode is packed with valuable advice for anyone looking to make strategic tax decisions, optimize their investments, and ensure a financially secure future. So, tune in!KEY TAKEAWAYSTax-cutting strategies for investors and entrepreneursUnique tax advantages of investing in real estate Common misconceptions that could be limiting your tax efficiencyBenefits of leveraging debt in tax planningPotential tax changes and their impact on your investment strategyRESOURCES/LINKS MENTIONEDFortune 1000: https://bitly.ws/3fSrH Wealthability: https://www.wealthability.com/ Rich Dad Poor Dad by Robert T. Kiyosaki: https://amzn.to/3TysYcj X: @theRealKiyosaki: https://bitly.ws/3fKcr Tax-Free Wealth by Wheelwright Tom: https://amzn.to/48U0oXa X: @andytannerstock: https://bitly.ws/3fKgR The Win-Win Wealth Strategy by Tom Wheelwright: https://amzn.to/3TdKGQV ABOUT TOM WHEELWRIGHT, CPA Tom Wheelwright, CPA, is the visionary and best-selling author behind multiple companies that specialize in wealth and tax strategy. He is also a leading expert and published author on partnerships and corporation tax strategies, a well-known platform speaker, and a wealth education innovator. His best-selling book, Tax-Free Wealth, shows entrepreneurs and investors how to build massive amounts of wealth through practical and strategic ways to permanently reduce taxes.CONNECT WITH TOMWebsite: Wealthability: https://www.wealthability.com/ CONNECT WITH USSchedule a 20-min get-to-know each other call - bit.ly/3OK31kISchedule a 30-minute call to learn about investing with Three Keys Investments - bit.ly/3yteWhxVisit ThreeKeysInvestments.com to download a free e-book, “Why Invest in Apartments”!If you're looking for an affordable healthcare solution, check out Christian Healthcare Ministries by visiting https://bit.ly/3JTRm1IGo deeper into your reflection with the Conscious Investor Growth Exercises. Click the link to access now https://bit.ly/46mLPKu Ready to accelerate your efforts? Click the link to learn more and apply to the Conscious Investor Growth Accelerator. Space is limited to 12 people https://bit.ly/3QA6K76 Join us at The Conscious Investor on Apple Podcasts! Leave an honest rating and review at https://tinyurl.com/24tf2rj9. Your feedback is invaluable to us – let us know your take on our episodes! Please RSS: Review, Subscribe, Share!

This is exatly what Dan tells people and raising capital is a byproduct. He has a portfolio around 2,500 Units. Thus, he has proven effective in raising capital with this method.   On the rest of the show we disussed themes like: What happens after an athlete retires? You got to find a way to make money There is a lot of power in real estate Tax Free Wealth was the book that started it all How we partnered and scaled Evolving and Scaling after joining Brad Sumrok's community Raising capital by sharing data, educating and nurturing  Cashflow is first and foremost Share what the competitors are doing and show how you can better them Explaining the business plan Getting referrals  Using a podcast to create exposure Investor communications War Stories  The value of the dollar and how it affects real estate Market selection Hold time The use of correct debt   Find Dan at granitetowersequitygroup.com Book a call with Ruben at calendly.com/rubengreth Hang out with other capital raisers, fund managers and family offices every Thursday at 11:00 AM PST at our nationwide virtual capital raising meetup. Register at capitalraisingmeetup.com.  If you would like to find out more about Family Office Capital Raising events you can visit https://familyoffices.com/ Get The Family Office Club membership for $2,000 off by mentioning the Capital Raiser Show to holly@familyoffices.com or feel free to pay full price.   Check Out InvestNext! Whether you have $5M or $500 million AUM, InvestNext delivers an institution-grade experience to your investors and automates tasks like K-1 distributions with a single click. investnext.com

California is strengthening protections for tenants. I discuss. It's already a disadvantageous state for real estate investors.  My Property Manager had my tenant's $1,550 rent payment stolen from his drop box last year. He expects me to take the loss. I won't. Who is liable for the payment - the thief, bank, tenant, manager, or the investor (me)? Tom Wheelwright, CEO of WealthAbility, joins me. We discuss the role of property tax in funding essential services.  The conversation touches on the regressive nature of property tax, alternatives to it, and the importance of understanding tax strategies. US taxes of all types keep ratcheting higher over time. But they're still lower than most world nations.  The episode also considers the impact of elections on tax policies, emphasizing the need for informed voting regarding taxation. You need a tax professional that knows how to find you all the deductions for real estate investors here: GetRichEducation.com/Tax Timestamps: Landlord-Tenant Relationships (00:00:00) Discussion on landlord-tenant relationships, stolen rent payment, and potential elimination of property tax. New Renter Protections in California (00:02:30) Overview of new laws in California regarding upfront deposit amounts, eviction protections, and banning of crime-free housing policies. Options for Homeowners in California (00:03:50) Details about new housing laws in California, including more options for accessory dwelling units and their impact on the housing crisis. Stolen Rent Payment Dilemma (00:05:53) Narrative about a stolen rent payment, liability concerns, and the property manager's proposed resolution. Feasibility of Eliminating Property Tax (00:13:45) Discussion on the possibility of abolishing property tax and its funding of schools, fire departments, and police services. Property Tax Funding (00:18:37) Insights into the funding of property tax and its allocation to schools, fire departments, and police services. Property Tax and Its Impact (00:19:37) Discussion on the challenges and implications of property tax as a wealth tax and its regressive nature. National Property Tax Rates (00:20:40) Exploration of the national average property tax rate and its impact on property value and inflation. Proposition 13 in California (00:21:34) Analysis of the impact and benefits of Proposition 13 in California, which limits property tax increases for homeowners staying in the same home. Alternatives to Property Tax (00:23:27) Exploration of alternative taxation methods, such as transaction tax and the potential elimination of property tax in favor of a transaction tax. Primary Residence Capital Gains Tax Exemption (00:25:16) Insights into the primary residence capital gains tax exemption and its impact on homeowners, including the need for inflation adjustments. Future Taxation Trends (00:27:24) Discussion on the potential for heavier taxation and comparisons with taxation policies in other countries. Potential New Tax Types (00:29:16) Exploration of the possibility of new tax types, including the concept of a poll tax and its implications. Value Added Tax and Tax Reduction Strategies (00:31:17) Insights into the potential implementation of a value-added tax in the United States and strategies for tax reduction through understanding the tax code. Selecting the Right Tax Advisor (00:33:00) Advice on choosing a qualified CPA and the importance of having a knowledgeable tax advisor for effective tax planning. Election Year and Taxation Policies (00:34:54) Analysis of the potential impact of the upcoming election on taxation policies and the importance of considering tax implications when voting. Property Tax and School Funding (end) Perspective on property tax funding for schools and the broader community impact, addressing objections to paying property tax. Property Tax (00:37:07) Discussion on the controversial nature of property tax and its impact on property ownership. Tax Strategy and Deductions (00:38:13) Importance of finding the right tax professional for real estate investors to maximize deductions and benefits. Disclaimer (00:39:25) Legal disclaimer regarding the information provided in the podcast and the need to consult appropriate professionals for personalized advice. Resources mentioned: Show Page: GetRichEducation.com/486 Get matched with the right tax pro: www.GetRichEducation.com/Tax Tom's book, “Tax-Free Wealth”: https://www.amazon.com/Tax-Free-Wealth-Massive-Permanently-Lowering/dp/1612681204 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript:   Keith Weinhold (00:00:00) - Welcome to GRE. I'm your host, Keith Weinhold. California and new renter protections. My own property manager had my tenants rent payments stolen from his drop box, and he wants me to take the loss. Then Tom Wheelwright joins me for a discussion about can we abolish the property tax today on get rich education? If you like the Get Rich Education podcast, you're going to love our Don't Quit Your Daydream newsletter. No, I here I write every word of the letter myself. It wires your mind for wealth. It helps you make money in your sleep and updates you on vital real estate investing trends. It's free. Sign up and Get Rich Education. Com slash letter. It's real content that makes a real difference in your life, spiced with a dash of humor. Rather than living below your means, learn how to grow your means right now. You can also easily get the letter by texting GRE to 66866. Text GRE to 66866.   Speaker 2 (00:01:06) - You're listening to the show that has created more financial freedom than nearly any show in the world.   Speaker 2 (00:01:13) - This is get rich education.   Keith Weinhold (00:01:22) - Welcome to GRE! From Montpelier, France, to Montpelier, Vermont, and across 188 nations worldwide. And Keith Weinhold, in your listening to get rich education across the United States, it's fortunate for us that states with landlord friendly policies also tend to be those states where the numbers make sense to. And for landlord tenant relationships, it's the state and local policies that often trump the national ones. Now, of course, in residential real estate or any real estate for that matter. I mean, you can make money in all 50 states, of course, but there's a reason that we generally avoid certain places, and that includes California. One difficulty in California has long been the process of getting a prompt eviction. It can be hard to do that even if you have just cause, where it can take months and months, or even longer than a year to get an eviction. Let's listen in to this minute and a half clip on how tenants rights are being strengthened in California. Just a little more.   Speaker 3 (00:02:30) - Well, every month, renters in California spend a hefty portion of their paychecks on housing. And as we kick off, 2024, seven is on your side with the new laws. Renters should know to save some money and also protect themselves against eviction. Before you lock in an apartment, you usually need your first month plus a security deposit in advance. Well, now the amount you have to pay up front could potentially drop by thousands of dollars.   Speaker 4 (00:02:54) - Landlords can now charge just one month of security deposit up front, and previously they could charge two months if the unit was unfurnished or even up to three months of the unit was furnished.   Speaker 3 (00:03:05) - Renters are also getting new eviction protections. Soon, it will be harder for landlords to evict a tenant under the no fault, just cause policy. Currently, a tenant can be evicted if the landlord or landlord's family is going to move in, but starting April 1st, the landlord or their family will have to move in within 90 days and live there for at least a year.   Speaker 3 (00:03:24) - Local governments are also now banned from crime free housing policies. Cities and counties can't mandate penalties or evictions against people who have been charged, convicted or had police called on them. The ban also applies to the family members of tenants. Now, renters are not the only ones benefiting from the new housing laws. Homeowners will now have more options when it comes to so-called granny flats or accessory dwelling units.   Speaker 4 (00:03:50) - Now they can separate and either build or sell an Adu and accessory dwelling unit and sell that separately as a condo. Lawmakers think that that's something that's going to help the state's housing crisis.   Speaker 3 (00:04:02) - And with housing prices sky high, this could give many would be homebuyers the opportunity they need to afford a starter home.   Keith Weinhold (00:04:09) - Yeah. So there it is in California this year. Lower upfront deposit amounts for tenants and more protection from evictions. California landlords, they can now charge just one month of security deposit upfront. That's the most they can charge. Previously, they could charge two months if the unit was unfurnished and up to three months security deposit if the unit was furnished.   Keith Weinhold (00:04:36) - Now, on the flip side, you've got to give California credit for helping homeowners, existing homeowners. They will now have more options when it comes to so-called ADUs accessory dwelling units, which some people call granny flats, because now they can separate and either build or sell in Adu. They could sell that separately as a condo, and that might help California's affordable housing crisis and the housing shortage crisis that could give more California homebuyers the opportunity that they need to afford a starter home. So that is better for first time homebuyers in California. And whether you live there or not, this matters. California has the same population as all of Canada in between 11 and 12% of all US residents are indeed Californians. Let me tell you about a completely weird situation that I have with one of my property managers. Now, I own rental properties in different states around the US, and each of those local markets has their own manager, and you might have this situation as well. Or perhaps that's what you would soon like to do to have this situation of having properties in multiple markets.   Keith Weinhold (00:05:53) - Well, about 12 months ago now, I got a message from a property manager that manages a bunch of single family homes for me in this one particular area, and he let me know that I was not going to be seeing a rent payment for one of my tenants. And that's because the tenant paid the rent, but they paid it with a paper money order that was left in the manager's overnight drop box and the mail from that box. Was broken into by a thief and stolen. And then apparently the thief converted the money order at the bank by in this house. Unbelievable. By waiting out the name of the money order recipient, which I guess would have been the manager. And then the thief wrote in his own name on the Wite-out. Now there were three tenants that had their payments stolen from my property manager like this. So mine was one of the three from my tenant. And the thief also broke into two other real estate offices around the same time. So the thief broke into three offices total, apparently.   Keith Weinhold (00:07:01) - Now, the question that we're leading up to here is, I tell you more about this. Who is liable for this missing payment? And really, there are five parties here where you could give an answer. Is it the thief, the manager, the tenant, the bank or me? The investor who is liable for that stolen payment? Who should make good on it? Who will make good on it? Now, the amount that we're talking about is a stolen rent of $1,550. Okay. This is a rental single family home that I have. So I've been out this $1,550 for about a year now. And by the way, the tenant that had the rent payment stolen a full year ago, they still live there in their rent is now 1750, but it was 1550 them. Now I'm only making a thing of this a full year later and starting to ask my manager to make me whole now. And that's just because I've got a lot going on in life and $1,550. That's just not enough to make that big of a deal over.   Keith Weinhold (00:08:03) - But when life took a pause and I got to thinking about this some more, the principle of it is really bothersome. Wouldn't it bother you? I mean, if I let others like my manager get away with something like this, then I could get walked all over in other ways. Now, when I requested that the manager paid me because it was their drop box that it was stolen from, really, the only answer that they want to give me is that they can't pay because they don't have insurance to cover that type of loss. Well, I don't either. Now, should the bank be the liable party here for processing a payment where the pay to name was whited out, and then the criminal wrote over it with his name? And by the way, the criminal used his real name. And that's also part of how he got caught, which is unbelievable. And they also, though they do know who the criminal is because they have video surveillance of him at the bank depositing the money orders. I mean, how should he have been able to catch them? But the process of trying to get the criminal to remedy this or the bank to remedy this, those approaches have not worked.   Keith Weinhold (00:09:14) - And I think that the manager wants me to take the loss and pay because he doesn't want to take the loss. And you know, something? Admittedly, between the tenant, the manager and I, I'm probably the one that could most afford the loss, but that does not make it right now. At last, check the property manager who keeps refusing to pay up. They propose something ridiculous that I want to share with you in a moment. You're not going to believe it. Well, as you know, you have a written management agreement when you enter in an agreement to have your manager manage your property for you and that management agreement that's between you, the investor and your manager, just those two parties. And as we know, one job that your manager does for you is that they collect the rent for you. So I figured what I would go do is look at my management agreement, and I'm going to go cite that line where it says that the manager collects the money for the property owner.   Keith Weinhold (00:10:16) - But would you believe it? Nowhere in our agreement does it state that the manager collects the payment for the owner. So here's one lesson. The next time you're signing a new management agreement, see that that line is in there. I think it's just kind of easy to assume that it is. But, you know, those agreements, they're typically written by the property management company. So they might write it in ways that protect them. But here's the thing. The manager still doesn't want to pay $1,550 and was stolen from the drop box. They had proposed something that seems wild to me when I said I'm not going to let go. They told me that their plan is to ask the tenant to pay by adding an extra 150 or $200 to their monthly rent payment until the deficit is paid up. So that would be what, something like eight months of payments. Now, I doubt that the tenant would agree to something like that. If the manager is accepting rent in a drop box, it seems like it's the manager's responsibility to make sure that it's secured.   Keith Weinhold (00:11:20) - So to me, of the five parties involved here, it should be either the criminal, the bank for processing the payment that way, or the manager that should be held liable. One of those three parties, not the property owner and not the tenant. So you've got to believe that I consider firing this property manager and using someone else. And by the way, whenever you have to do that, if you ever do have to do that, and I've had to do it before, you can ask the provider that sold you the property for new property management recommendations, or you can find some new property managers by checking online forums with other clients that have actually used property managers. If you replace your manager. What that does is that your manager, they're going to lose more than just that 8 to 10% monthly management fee. They'd also lose future leasing fees. They lose any arrangements that they have with service providers to service your property, like plumbers and electricians. When it comes time for you to sell your properties that your manager manages for you, that manager might also lose the ability to collect referral fees at that, manager has the real estate license so you can make firing your manager hurt them more than you might think.   Keith Weinhold (00:12:40) - Now, I don't like hurting anyone in business. That's why I'm trying to find a constructive way to resolve this. But the manager has had a long time to make this right with me. They're probably just hoping I would forget about the whole thing. The property manager does not want to take the loss, and I will not either. I'll keep you updated on how this weird situation concludes here, but yeah. Hey, I'm an investor just like you. I want to dig in and get involved sometimes and see if something like a stolen rent payment happened with a stock that you own. I mean, you might take the loss there and you wouldn't even know that it happened. So I like real estate investing trends agency with a manager. I don't have the day to day involvement responsibility, but yet I can see a lot of what's going on with the monthly statements that they send me. Or if I have a concern, I know who I can directly contact to remedy something. And if you're a new real estate investor, please be mindful that this situation with my manager and the stolen rent payment is not typical at all.   Keith Weinhold (00:13:45) - In 20 years of doing this, I have never had a situation like this. In a few minutes here, we're going to discuss how feasible it is that America could eliminate the property tax altogether. And our guests. He's also going to tell us why he's been seeing more people like you paying tax on the gain from the sale of your primary residence. Hey, would you like to see me at breaking down real estate investing concepts on a whiteboard? Yes, a magic marker in hand with a whiteboard and an easel. Well, you can watch me do that from the comfort of your home. Over on our YouTube channel, we recently launched our explained series, and I begin it by breaking down basics and just showing you an actual net worth and actual cash flow statement, and then figuring out how you can take those and learn exactly when you can quit your job and retire. It's easier to do the numbers over there than it is here on an audio format, and later I'll whiteboard some more advanced concepts for you soon, like explaining an inverted yield curve.   Keith Weinhold (00:15:00) - Watch me on the whiteboard in our explained series. It is free on YouTube right now and our channel is pretty easy to find because it's called get Rich education. Eliminating the property tax. Next I'm Keith White hold. You're listening to get rich education. Role under the specific expert with income property, you need Ridge lending group and MLS 42056 in gray history, from beginners to veterans, they provided our listeners with more mortgages than anyone. It's where I get my own loans for single family rentals up to four Plex's. Start your pre-qualification and chat with President Charlie Ridge personally. They'll even customize a plan tailored to you for growing your portfolio. Start at Ridge Lending group.com Ridge lending group.com. You know, I'll just tell you, for the most passive part of my real estate investing, personally, I put my own dollars with Freedom Family Investments because their funds pay me a stream of regular cash flow in returns are better than a bank savings account up to 12%. Their minimums are as low as 25 K. You don't even need to be accredited for some of them.   Keith Weinhold (00:16:20) - It's all backed by real estate and that kind of love. How the tax benefit of doing this can offset capital gains and your W-2 jobs income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 66866. Oh, and this isn't a solicitation. If you want to invest where I do, just go ahead and text family to six, 686, six.   Speaker 5 (00:17:02) - This is author Christine Tait. Listen to get Rich education with Keith Reinhold and don't quit your Daydream.   Keith Weinhold (00:17:19) - A renowned tax and wealth expert is back on the show with us today. He's also a CPA, and he's the CEO of a terrific tax firm called Wealth Ability. He's the best selling author of the Mega-popular book Tax Free Wealth, which you may very well want to check out again, because he just updated that book with a third edition. I have the original tax free wealth on my bookshelf.   Keith Weinhold (00:17:40) - Welcome back to Dr. Tom Wheelwright. Thanks, Keith. Always good to be on your show. Tom, we have a lot of real estate investors listening. Why don't we talk about property tax? It applies to one whether they own income, property or whether they own a primary residence. Tom, I thought about the discussion that we were going to have today. I was thinking about it yesterday. And you know what happened? I looked out my window and the garbage had just been picked up from the curb, and this was shortly after my driveway was plowed of snow. Okay, now, if an alien came down from another planet and we described that there's a property tax in the United States, so we'll probably believe, oh, all right. Well, they're going to like, pick up your trash and like, plow your driveway for you and everything for that property tax you pay. It's like, oh no. Well those are separate services that I pay. So really what I'm getting at is maybe more philosophically in big picture, should there be a property tax? That's a big question.   Keith Weinhold (00:18:37) - Yeah. But let's do talk about what property tax funds. So property tax funds schools. It's the primary funding mechanism of schools. If you talk to an old timer they still call it school tax sometimes. Yeah it funds schools. It funds fire departments. It funds the police. So those are the three big services that have funds. This is why, by the way, Keith, when there was that group in Seattle that took over that section of the city and the government refused to send to kick those people out. I don't know if you remember this a couple of years ago. And I'm going, wait a minute, why are we paying property taxes? Because the police force and the fire department were being paid by property taxes on the buildings that had been taken over by this renegade group. Wow. And so I have a commercial property. I pay a huge property tax on that commercial property doesn't house children, so I don't send children to school, but I still pay tax for education. Why? Because I need educated employees, so I'm happy to do that.   Keith Weinhold (00:19:37) - I pay for fire protection. I pay it for police protection. I think what the money is used for generally is fine. I don't have an issue with that. The challenge I have with the property tax is twofold. One is it is a true wealth tax. If your property goes up in value, you pay more tax and it's a tax on inflation, because if you're a property goes up in value because of inflation, you pay more tax. And then second of all, you're out to sell your property. But it's also a regressive tax. So people who have no more income, they're on fixed income, they're Social Security. They have a pension plan whatever that their property goes up because of inflation, not because it's a better property and they're paying more tax even though their incomes not going up. That's my biggest challenge with property tax. That's really a good point. I had never thought about it that way before. The property tax can be a regressive tax. Therefore you pay a higher rate with a lower income, which is what a regressive tax means.   Keith Weinhold (00:20:40) - I know that some jurisdictions try to help senior citizens out with that. Maybe you both say like the first 100 K of assessed property value is exempt. But yeah, on basis you're right about that. With it being a regressive tax. Tom, I kind of look around the landscape. We deal with a lot of markets and properties and providers nationwide here at gray, and I seem to see a national effect of property tax rate of about 1%, something like that's pretty common 1% of value on a 500 K property. You're going to pay about $5,000 in property tax. Of course, that varies substantially. New Jersey is a really high one. So the states in the Deep South are really low ones. But what are your thoughts about that 1% average national effect? Think about that tax rate. Let's say you bought that property for $50,000. You bought the property for $50,000 based on your income. You bought it for $50,000. Now, because of inflation, it's $500,000. Now it's really a 10% of what you bought it for.   Keith Weinhold (00:21:34) - So it's not really 1% anymore. It's 1% of the price value. It's not 1% of what you paid for it. This is where California with prop 13 they apt their property tax. Right. If you didn't move into a new property. I loved that proposition. Frankly, I love prop 13 because what I said was, look, if you're staying the same home, your property tax isn't going to go up. Because you get no more value out of it than you did when you bought it. So why are you getting more tax even though you're not getting more value? That makes no sense. I'm not a big fan. You know, like Texas has a they rely heavily on property. Remember we have three types of taxes. We have an income tax. We have a transaction tax which the biggest one is sales tax. But it's also excise taxes. And then we have property tax. And property tax and estate tax are the only two wealth taxes we have. And property tax is a true wealth tax.   Keith Weinhold (00:22:29) - Why is it allowed. Why can we have a property tax in our hometown. But we can't have a federal property tax because Constitution doesn't allow a federal property tax. But our state constitution probably does allow a state property tax. And so robbery taxes are really interesting. I talk about in tax free wealth. Tax wealth has a chapter on property sales and property tax. It's my least favorite tax because again A it's regressive and B it's a tax on something I've never realized. The only benefit I have is that I live in it. But that benefit's not gone up even though the property tax goes up. You brought up so many interesting things there. Sure, that proposition in California is what kept people staying in their homes for a very long time. But we think about property tax and should there even be one? As we ponder that big question, what do other nations do? Because a lot of times I know you look at foreign nations tax policies. Most localities. A lot of them have a local property tax.   Keith Weinhold (00:23:27) - I don't think it's uncommon. What's interesting to me is that Missouri is looking at getting rid of their property tax and putting in a transaction tax instead. So in other words, you don't pay a tax for owning the property. You only pay a tax when you sell it. Well, that actually makes more sense. You know, in previous episode we talked about more versus United States. We talked about that whole idea of a wealth tax and realized gain. And some states do this already. California does this, Hawaii does this, Pennsylvania does this where you have a tax when you sell the property, an excise tax when you sell the property, or a transfer tax, if you will? That makes some sense because you did get the money. You actually have the ability to pay the tax. It's not coming out of your earnings. It came out of the sale of the property. So it's a tax on the sale. Frankly, if I had to choose, I would probably choose the transaction tax.   Keith Weinhold (00:24:23) - I mean, I would choose to have very little tax. I think we need fire. We need police. Those two things we absolutely need we need roads. We should have taxes to pay for those school. I'm a fan of school choice. And should we have property tax pay for those? Or is that something that we ought to pay for some other way? I don't know, there is argument that, again, that should be maybe you ought to pay that out of sales tax or a transaction tax. Yeah. I think I'm feeling your vibe on that one time that a transfer tax of real estate is somewhat more palatable than this ongoing property tax that you have to pay, because the transfer tax probably is realizing a gain there. Along with that, even though we probably don't like that piled on top of ongoing property tax, for sure. We think about property taxes, something that applies to every homeowner, whether they own income, property or not, is the pretty well known primary residence capital gains tax exemption for quite a while.   Keith Weinhold (00:25:16) - That's been 250 K if you're single and 500 K if you're married. Can you tell us more about that and where the direction of that's going? And is that adjusting with inflation or what are your thoughts. Yeah, it's not adjusting for inflation unfortunately. It's interesting. Some things adjust for inflation. Some things don't. Tax brackets adjust the exclusion for your primary residence doesn't. And your deduction for miles driven for charity doesn't adjust for inflation. But your deduction for miles driven for work does adjust for inflation. So it's very interesting to see what does Congress say. We're going to adjust for for inflation. What they don't. That came into effect under Bill Clinton prior to his presidency. You had to actually put your new house, had to be worth more than your old house is very much like a 1031 exchange where as long as you bought a new house that was equal to or greater in price than the sales price of your old house, you paid no tax but the minute you went down. So when, for example, you're retiring and you decide, well, I don't need all this house, my kids are gone, I'm going to go move into a condo on the golf course, or I just don't need that much space.   Keith Weinhold (00:26:25) - Then you had to pay tax. What happened in the Clinton era was we actually got this exclusion, which is as long as you live in the house for two years, two out of the last five years, you get 100% exclusion on the gain, up to 250, like you said, 250 single, 500 joint. I would love to see them index that. I think it needs to be indexed. Frankly, they need to adjust it retroactively because too many people got caught in this last run up where for the first time ever, I saw a lot of people paying tax on the gain from the sale of their house. Yeah, that's something that you hope that you don't have to do. We'll see if and when they do adjust that for inflation. I'm not always talked about property tax bill. Why don't we open it up somewhat more and talk more about what we discussed the last time you were here on the show with us? Well, I think we already learned then whether Americans, just over time, over the long term, are more likely taxed or more heavily taxed.   Keith Weinhold (00:27:24) - It seems like they're always piling on more and more taxes. What are your thoughts with where we're going on lighter taxation or heavier taxation? I said, well, we rarely get taxed less. We're actually taxed less than just about any other country. Just to be clear, we pay a lower share of our income in taxes than just about any other country. But of course, we have much, many fewer benefits. We don't have national health care. We have Social Security, but it's a small amount, right. In France, remember, they had these big protests, right? Because the French president raised the retirement age from 62 to 64. Why were so many people protesting that? Well, it's because in France the salaries aren't enough to keep up. And so they're relying on that. They can't save up and say, I'm going to retire earlier because I've saved up money. There's not enough income for them to save. So they're relying on the government to save for them. That was a hard thing for them.   Keith Weinhold (00:28:18) - We have a hard time understanding that in the US because our tax rates are so much lower. France, for example, I was. Reading. That's the other day. 50% of GDP goes to taxes in France. In the US it's about 26% of GDP. So we're almost half of what percentage of our GDP goes to taxes. So they're the highest. What's happening is you're seeing Germany. There's this going up Korea. Theirs has gone up, Japan theirs has gone up. And the US, they expect ours to be up. It's 28% of GDP within a few years. So it's all relative, right. The problem is, is that the taxes are more and more as a proportion of our gross domestic product. If you think the government should stay out of our lives, then you're on the wrong end of that stick, because that means that the government's getting more and more involved, and more and more money is being spent by the government instead of the private sector. Well, Tom, you've been here on the show with us a lot of times.   Keith Weinhold (00:29:16) - We've talked about how your rental income gets taxed. We've talked about capital gains tax and property tax and sales tax and income tax, one tax type we haven't talked about. When we think about whether things just get worse as the government piles on more taxes, is there any threat in your mind of a tax for those that don't know what that is? That's basically a head tax. That's a tax that's imposed on you just for existing. Is that a possibility? Zionist capitation tax and not a decapitation tax. It might feel like one. Yeah. It's, uh, commonly called the poll tax write poll. As in poll. You go to the polls that the number of people that is actually allowed, the government could impose that that is allowed under a constitution, a poll tax. Great Britain has a poll tax. So it's not unheard of. I haven't heard a lot of people talk about. The problem is, is that a poll tax is a tax on voters. And we know politicians don't want to put a tax on voters.   Keith Weinhold (00:30:16) - Right. So where's the incentive to vote? They're more likely to put a tax on corporations who don't vote. I'll tell you the favourite tax. The favourite tax is to put a tax on out-of-towners. Somebody who's coming into your place like a travel tax. One of the key policy points of any tax unit is you want to export your tax to people who don't vote for you. So you're always trying to put the tax on somebody who doesn't can't vote for you. Because if you put on people who do vote for you, you will soon lose your job. Interesting point. That's why you see taxes on Ubers and taxis and hotels, resort taxes. You see those kind of tax skills are basically export tax, right? They're taxing people who don't live and vote in your state or in your location. A poll tax would be a tax on people who do live in your state or location. I have a hard time seeing that one coming down the line. More likely is you really wanted us to be more competitive with the rest of the world.   Keith Weinhold (00:31:17) - We'd have a value added tax in the United States, we do not have one. And if you wanted to make us more competitive with the rest of the world, if you really want to raise funds or you want to pay off the deficit, or you want to get rid of an income tax, the best way to do it would be a value added tax. Well, maybe you, the listener, just have a shred of a little something to be thankful for. There are tax types you've heard of that we don't actually have yet. There actually are some remaining. It seems like they'll all get used up. Europe has a. Europe uniformly has a 20% value added tax that just goes to increases the price of your meals at a restaurant, increases the price of every product you buy. That's a value added tax. That's a national sales tax that is common in the rest of the world. We're the only major developed country that doesn't have one. Well, at least in Europe, they're not asking that.   Keith Weinhold (00:32:06) - When you get your restaurant meal bill that you add a tip onto the tax about, like what's happening a lot of times here. And I think a lot of people aren't even aware of that. That's another absurdity. Yeah. Another absurdity of being a consumer in the United States today. Tom, you're really an expert in helping people understand that there are so many parts of the tax code out there for reducing one's taxes. The tax code, mostly most of the pages are about tax reduction. There are just a few pages about the tax tables. And then basically the rest of the tax code says you have to pay the tax in those tables if you don't do these other things. So tell us more about how one and everyday people can learn and get informed by being matched up with the right professional, so they can learn about all those exceptions to paying those taxes in the tables. I appreciate your promotion of tax free wealth because that's the starting point. You really do need to understand the concepts, and the concepts are all in tax free wealth.   Keith Weinhold (00:33:00) - Okay, so really inexpensive way for you to get an education. Once you've got the education though, you do need a team around you. And what I think the most important person, well outside of your bookkeeper, who I actually think is the most important person of that team, I think your number two person is your CPA. And I'm going to be very specific. There are a lot of people who hold themselves out as tax advisors, and I would not touch them with a ten foot pole. Whether it's I don't want a financial planner giving me tax advice, nor do I want a CPA, give me financial advice. Let's have a specialist do the specialist work. I don't want an enrolled agent. And the reason I don't want enrolled agent. If I'm really simple, that's great. But remember enrolled agent, they have very little education. They took a test. An IRS test that takes a couple of hours. That's all they did. If you're a business owner, you're a serious investor. You need a CPA and you need a CPA who cares more about you than they do about protecting themselves from the IRS.   Keith Weinhold (00:33:59) - This is one of my big complaints about some of my fellow CPAs is they seem to be so concerned about an audit. And my question is, if you're so concerned about an audit, does that mean you're afraid of the IRS? And if your CPA is afraid of the IRS, it's probably time to get a new CPA. That's right. Well, please, I tell you, we have a resource on our website where you can connect with Tom's team and get messed up with the right advisor. That is it. Get rich education complex. But like Tom said, a good thing to do is read his book, Tax Free Wealth first. That way you'll be able to ask the right questions so you can get the right answers from the right professional that you can be messed up with. Tom, do you have any last thoughts? Here is we're still relatively new in a year here when it comes to taxation, and one taking their plans forward through the year. Let's remember that we have an election coming up this year.   Keith Weinhold (00:34:54) - And one of the biggest issues in this election is going to be taxation. There's certain politicians that would like to take the 2017 tax reductions and extend them. There are others that would like to eliminate them and actually raise taxes. A couple of years ago, we had a proposal called Build Back Better. Great. Started as a $6 trillion proposal and ended up being $2 trillion and change the name to, quote unquote, the Inflation Reduction Act, or as I like to call it, the Inflation Enhancement Act. But that's going to be back. So you may love one party. You may hate the other party. Just know that when you go to vote, think about you are voting for a tax increase or a tax decrease depending on who you vote for. Look at their policies. Look at what they propose. Look at what they've been talking about. Don't believe for a second that they're gonna all of a sudden say, well, we're not going to raise taxes, when in fact they're looking at you and they're going, is that my money in your pocket? It is a presidential election year.   Keith Weinhold (00:35:59) - The good news is you now have a way for your voice to be heard this year in taxes are part of that, Tom. We're right. It's a great having you back on the show. Thanks, Keith. Sometimes I hear people that pay property tax but yet don't have any children themselves. They say that, well, since property tax often funds schools that they're opposed to paying it. Well, let's look at it this way. I'm a person that doesn't have any kids yet. And even if I never do have kids, well, when I was a kid myself, I attended public school. So therefore I was the beneficiary of adults paying property tax to fund the school that I went to. So therefore, when you think of it in those terms, it's more palatable for a, I suppose, non father like me to pay it forward, pass it along and pay school tax for others. So though there may be other objections to paying property taxes, not having children, that's often not such a valid reason when you think about it that way.   Keith Weinhold (00:37:07) - Now, I think that the Liberty First Society's Christian Hall, she has an interesting take on property tax. Here's what she said. And I quote, property tax should end when you complete the sale or purchase, just like you do when you buy groceries or a bicycle. It's theft of ownership to keep paying property taxes, especially when government has the authority to take your property. When you don't pay your taxes for three years. That's not property tax, that's rent, and you're a tenant in your own home. Property tax makes government the owner of your property, not you. End quote. And again, that is from the Liberty First Society's Chris Ian Hall, thought provoking, if nothing else. Now, when it comes to finding the right professional to get real estate investors, all of our generous and legitimate deductions that we enjoy, I mean, it is one of the five ways real estate pays. After all, you do need to find the right pro so that they can find all the deductions for you.   Keith Weinhold (00:38:13) - And this is just the time of year to get that right. For more than ten years now, I have had the world's number one tax firm do my wealth strategy, my tax strategy and my tax preparation. I even use my bookkeeper through them. They understand what real estate investors need. They make sure that I don't miss out on optimizing benefits and deductions for mortgage interest and tax depreciation and property tax and cost segregation, which accelerates my deductions. And they make sure I get infinite capital gains tax deferrals and bonus depreciation and so much more. All the good things that real estate investors get when you work with an investor centric tax professional. In this way, you can also legally write off many of your expenses for property management and maintenance and utilities and even your travel. So you can do that by connecting with Tom's team by visiting get rich education.com/tax. That is this week's actionable resource. Until next week I'm your host Keith White. Hold don't quit your day dream.   Speaker 6 (00:39:25) - Nothing on this show should be considered specific, personal or professional advice.   Speaker 6 (00:39:29) - Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get Rich education LLC exclusively.   Speaker 7 (00:39:53) - The preceding program was brought to you by your home for wealth building. Get rich education.com.