How The Rich Use Debt & Taxes To Get Richer
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- Опубліковано 5 жов 2024
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This Video: • How The Rich Use Debt ...
Channel: / minoritymindset
Video host: Jaspreet Singh
DISCLAIMER: This description may contain links from our affiliates, sponsors, and partners. If you use these products, we will get compensated - but there's no additional cost to you.
DISCLAIMER CONT'D: I'm just a random guy on UA-cam so do your own research! Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in these videos. This video, the topics discussed, and ideas presented are Jaspreet's opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
If you enjoyed this video, you should watch - Make These 3 Investments And Never Worry About Money Again: ua-cam.com/video/O8zkRWxgav4/v-deo.html
On it! Thanx
Can you please do a video on how to do deductions when you work on 1099! I have had such horrible experience with working on 1099! I have zero deductions and I did not even earn that much and now I have to pay an insane amount of taxes ALL because I am single no kids and no house. Why are single people targeted like that? Please help and make a video and educate people about 1099. Thank you so much!
On which planet are Indian people a minority?
Really crazy how this is all available for free. Thanks so much Jaspreet im learning so so much. Please continue bringing videos like these! Thank you, God bless.
I couldn’t agree more! I just stumbled upon his channel and I not only subscribe and click “like” but there are days I will actually binge watch or rewatch the same video a few times and the latter times take two or three sets of notes and reach out in comments to get clarification on certain things.
In 21 mins Jaspreet has taught an entire course on tax / debt finance principles. The equivalent of years of learning out in the world or many months of college credits.. .
Hi CPA guy 😀😀😀
Not really. There’s a difference between individual and corporate taxes and he completely glosses over the latter and makes this chess game seem so easy …. And it’s not.
Every Accomplishment Starts With The Decision To Try.
Good People Bring Out The Good In Other People.
There is a part that is not explained and the whole thing doesn't make sense as a result: you borrowed the money, you need to pay back that money as well. The problem is that loan repayment isn't a deductible expense, only the interest is (6% as mentioned in the video). I'd like this clarified please, thank you.
Wow, it's a privilege to know this information for free. The more I see your channel the more I hate the school system.
What I still don’t understand is wouldn’t you have to still take out income in order to make the monthly loan payments, even though your company might be growing more than the 6% interest?
There's something called as a holding company. Own nothing in your name.
I had the same question. How are they paying the interest?
Have you gotten an answer yet? I’d love to know this too.
They pay it with the loan it self… hahah
@@VictoryWinnersThough it isn’t sustainable, you actually could for the short term.
The fact this info in free in incredible. Thank you for your content.
Besides cashbacks, I use 0% APR credit cards to pay no interest while holding the fund in a CD earnings few percentages a year. When time comes, just pay off the balance and start anew.
What is your income per hour of your time?
Don't those usually have a transfer fee? Back 15-10 years ago I did this until that happened.
It may make you money. But does this affect your credit score?
Or if you have good credit, take out a signature loan for $50k at a fixed rate of 5% and invest it in something that yields more.
What I don’t get is, wouldn’t you have to take out income in order to make the monthly payments, even though your company might be growing more than the 6% interest of the loan?
This is an extremely underrated video. This basically covers the surface understanding of why I went the real estate investor route
I’m currently thinking of joining real estate or being an electrician and something telling me to focus on real estate investors to know more about tax codes and banks.
One thing I didn't see covered was that you cant declare a business loss every year or the IRS will rule your "business" a "hobby". So at some point taxes are unavoidable, you can however minimize the amounts using these and other strategies.
Another reason that real estate is king. You can defer losses into future years, which you can use to offset later taxable gains if you wished.
Wow. This completely blew my mind. No wonder the rich get richer.
check out the Pareto Principal, this explains a lot too and the effect gets amplified by our current use of technology and social media.
@@ajones8008 why does pareto principle comes here. can you help me understand?
This is sweet poetry on a balance sheet!
Wow. This info is gold. But, I'm going to have to watch this video about 3 more times to really understand it.
Jaspreet, can you please explain the metaverse and virtual land, and if it's worth investing in?
Yes bro definitely go for it I invest already huge amount in metaverse
There are three things certain in life!
Taxes
Death
More Taxes
Hello all - I’ve seen this method of borrowing against your assets or business to not pay taxes described many times, but there is one thing I don’t get and no one seems to really address it. That borrowed money eventually needs to be paid back so essentially aren’t we not ultimately avoiding taxes since the loan would be paid back with taxes dollars? Is there something I am missing here? Can someone please help me out in understanding how this method is tax beneficial? I don’t see it this way since borrowed money always gets paid back anyway - with taxed dollars. No?
The sad thing is that rich people help WRITE the IRS rule book …so they know exactly how to work the loopholes they help install.
This. They pay lobbyists big money to make sure that the government works in their favor.
The tax benefits are available to all.
Why is that sad? Or rather, why are you sad?
The house is always rigged to win. Yes even against the majority of those who think they have the same advantages.
That’s not true! Stop with your bitterness and learn the game and its rules. You will then find others claiming the same thing you are claiming here.
Jaspreet, I want to thank you for all your incredible videos and help. I am a market insider member, however, I want MORE knowledge about how to SAVE my financial future for myself and my daughter. I would gladly pay for a training program that explained in more depth the concept you are describing in this video. Any chance you are working on something like that? I am very nervous about my future at 69 being a widow and my daughter's future. Much gratitude.
Good to watch this short and informative video, 1hr vedio are not possible to watch
very valuable information. you're amazing!
I’ve been doing this. The hardest item is to accrue assets in which to borrow. Work hard when young, gain assets, then BBD!
We love to hate taxes, but so good to learn about how we can legally make the most of our money. The more we know, the more we can save.
I prefer the more we know, the more we can use!
This was one of the greatest financial lessons I’ve ever seen in any educational system. Thank you!
Awesome video and definitely appreciated although I do admit that the numbers make my head hurt so I'll keep studying.
The house should I buy under my name or should I create a corporation to buy the investment property
Love your videos but you got me on this one. I'm stumped on paying yourself with refinance. If you keep taking money out at a refinance, how will you ever pay it off? I know that some people don't want to pay it off, but my main goal is to pass my houses to my kids. I saw lots of people that passed away and gave their kids the house that still had a mortgage and they lost it because they couldn't afford it. Please help me understand. Thanks 😁😁😁
So at the end, do you sell your stock to pay off the remaining loan or do you just take another loan to pay the remainder of the 1st loan.
Very well put together information. Thank you. I am still very debt adverse but i can see how others can use this.
Jaspreet: AWESOME lesson 👏 Thsnk you 👏 Thank you 😊
I find this amazing (: for the past couple of days I've been trying to word in a way a question about this exactly but not knowing how to word it and here we are today and you've answered what I've been questioning hahah thank you!!
You’re a genius, Jaspreet! Keep going.
One of your best videos yet. Keep them coming. Thank you. I wish I would have known these things at a younger age.
TY for this video. Since your interview with that dude I have been researching this exact subject . I am a member of market Insiders. The classes are lovely and a great addition to my life. I truly think this is the best way to hustle. Avoiding Tax legally. One great thing I have recently learned from "Rich Dad Poor Dad", is to not DO what you love, but to INVEST in what you love. This is something I am seeing on your platform as well. I thank all of you for your wise words.
I'm just wondering a little more info. Do they sell some stock to service the debt regularly? Or do they just take out another loan and use that money to pay off the old loan? Is the idea to die with a mountain of debt? Does this strategy only work if your assets are increasing? What if the assets go down in value? How does that effect how beneficial this strategy is?
Thanks you so much jaspreet singh you are my best financial mentor, you providing millions dollars content for all of us. Plz make 🙏 a series on debt to make more money in detailed 🙏
This is the best explanation I have ever heard. Thank you so much!
How does the bank get their money back, then? If no shares are being sold - that would be income - and no income is generated, how is the debt inteerest able to be repaid? Is it continual refinance?
I'm so grateful for this information
Excellent Advice & Overview! Thank you for sharing!
I'm miss understanding, as an S-Corp you're supposed to pay yourself a reasonable salary according to the IRS. How do you write off the money you are borrowing from the value of your business to live off if it's not a business expense?
Chat me up ☝️☝️☝️
But how does the bank get its money back?
Thank you so much for taking your time to explain this strategy.
I kind of knew this, but there were details that I wasn't aware of. Thank you so much. I don't agree with everything investment-wise, but you are mostly on target.
This is the most valuable information about how the wealthy keep and increase their wealth buy asset,borrow money against your asset instead of taking an income where you have to pay income TAX...
Would love information on how to find a good Real Estate CPA to help get the most out of my first rental that I'm kicking off in May. This is a great overview to build off of though!
I don't understand how you pay off your debt after your business gains growth. Like, Elon would still have to sell some shares to pay back the debt. And than still get taxes on what he sold?
Chat me up ☝️☝️☝️
Bruh! your videos are really cool. Love them. Keep up the good job!
Great video - thanks! Q: Musk and others owe monthly payment on that loan, right? How do they pay it? From the loaned cash itself? Eventually they have to close the loan when the die or whatever, right? They or their kids have to liquidate at some point? I didn’t get that part of the video.
Hey Jaspreet, I love your videos but they often don't apply to the laws in my country, could you recommend someone to watch based here in Australia please?
Wealthy pay for liabilities with their business. Getting a job is a scam.
Thanks for all your videos ❤️
Great info! However, the generous use of jump cuts is distracting. Perhaps the cost of setting up a second camera could be deducted from your taxes. I suspect that your video editor would appreciate some B roll. 🎬🎥
So what happens when we have a recession or a down year and the stock or business isnt growing in fact losing? Would you pay yourself a salary at that point
Would you ever consider making a videoon how individual stocks or general market areas like (tech, financing, oil, etc.) are going to react to inflation?
Brilliant video but I've always been a little confused about how buy borrow die works..
So, let's say I have a company worth £1m and take a £100k loan using 10% of the biz as collateral.. so now I have £94k to spend, as interest is 6% so I hold that back? Next year my business has increased by 6% too so my collateral is now also worth £106k.
So far so good.
And I just keep doing this, just paying off the interest and nothing else? And as my business grows I have more and more I can borrow this way, and my debt is basically even with my net worth?
Also, this would avoid any potential wealth taxes right as I would essentially have no net worth?
I must have missed something... What money is used to make the payments on the loans that the wealthy take out? Do they use the money they borrowed to make their payments? wouldn't that eventually be a net loss?
Return on stocks
Thank you for sharing this content, this is life-changing.
Can you do a video on the different tax brackets, and how you might not want to show $0 of income when you are younger.
Thanks brother, info like this is invaluable, and you are giving it to us at no charge, you are greatly appreciated!
Can this work in a way for day traders? Like if we borrow money from banks and thats our income?
And this is why Meet Kevin post videos during and on his vacation floating down a lazy river.
"Vacation" now becomes a location to shoot video. Now a tax deduction
Hey jaspreet
Amazing explanation
I just have one question though
Like most of us have very less knowledge about managing the property.if we know how to make a good investment in a cash flow properly, can we just rely on a reputable and decently affordable property managment firm to take care of the leasing, rents and general maintenance and help ous grow the value of the property for refinancing amd tax saving(
When you come down to San Diego come check out my booths at the local farmers markets. Flamin Salmon.
Even with stepped up basis there is inheritance tax.
This is very very informative; could you please suggest a good advisor?
Also, is heloc same as debt you mentioned or is that some other loan?
Why do u take $1.1 from the new revalued property of $1.5? Whats the maximum % u can take out from a revalued property ?
Love your content.
I think the smart money is getting out of RE [esp commercial] right now- and then rebuy after the market corrects at a much lower price. But then, the recent eviction moratoriums as well as rent controls/limits being proposed- and tax reform- may torpedo the game.
These strategies are great but you have to have the cash to make the loan payments, so this strategy requires building something of significant value first.
I was going to say this, you have to have money to pay the interest on your 100k loan. Unless you're taking out loans to pay other loans which is not a great financial move.
@@BKHD8lmao i call that Loanslaving
TY for sharing this
The loan example mentioned is it a personal loan, and the lien is placed on the business. Or is it a business loan.
excellent content and video, Jaspreet! thanks
I'm a w2 and 1099 I use both to invest
This video is very valuable thanks!
Wouldn't bank sell your assets to pay down debt after your death? And wouldn't that cause taxable event?
Looks nice in theory. But where do we find the inventory when they are all already taken by greedy people who knew about these strategies before us? Late in the game, no?
You have to find them and don’t have excuses. While you are busy whining, there are creative investments you miss out on. It’s a mindset.
@@77Tadams toxic positivity at its finest. Lmk if you find any. I'm also looking just maybe not in the right places. We can partner up
@@dennisdelgado4276 I wouldn't partner with you; you have a bad attitude and toxic negativity. I already have business partners. Why would we tell you what we are doing so we have to compete with you? You figure it out.
@@77Tadams haha ok. Now you inspired me to take you out
@@dennisdelgado4276 Why not put some of your toxic negativity into finding investment property and partners to do deals. You would be much better off. Good luck!
With what income and how do they pay back the interest to banks?
It's no surprise that the wealthy continue to accumulate more wealth. Please keep bringing content like these!
What’s a good book I can read that correlates to this method??? Thank you!!
Another thing is that Debt is tax free because Debt IS money. Money is created when currency is lent out. Money is destroyed when you pay down debt.
Notice everything in our lives is taxed:
Stocks: capital gains tax
Dividends and stocks: Interest and Dividend income tax
When you make money: income tax
When you pay an Employee payroll: payroll tax
Social security: social security tax
Death: inheritance and estate taxes
Owning a house: property and transfer taxes
Roads, bridges: tolls
Owning a car: registration and sales tax
When you spend: sales tax
When you save: inflation tax
Noticed appreciation in assets are not taxed but are still subject to capital gains when sold.
Debt is NOT taxed because Debt is money. When the Fed Reserve print money, most money makes its way to bank reserves giving banks a higher capacity to give out loans. Thus money is lent into existence
This is a deep video! Thank you for sharing your knowledge always. You're the Best!
How do they pay the loan? Don't they have to sell their stock to pay the loan?
Any recommendations for an accountant/Tax Adviser in New Jersey? Or who serves New Jersey
Well I have a Question here, thats true initially debt is tax free, but payment of debt has to be done through "income", right ? Now income can be from asset, salary anywhere. But income is attached with tax again. So basically for whatever amount you had loan, you're not only going to pay interest on that but also taxes. How is this a good idea to be rich ?
Discuss healthcare deductions
That’s all good but how often do you find a property that you can buy for 1M and get 70k every year out of it??
That used to be standard for investment property's until the low interest buying frenzy of the last few years.
Thanks.
Knowledge is power.
Can the owner borrow from his/her company as opposed to involving a bank?
good info...keep rockin
Thank you for this video
So this might be a stupid question. Let's say you've worked hard saved and I'm missing 5k for my closing costs. Can I take 5k from my CC or my line of credit to fullfil my remaining closing costs?....did that make sense?....is that getting in debt in the end for Investment purposes?
Hai hariba. Loved this one shera. 💙
This video just blew my mind.
Chat me up ☝️☝️☝️
Dumb question. After getting a loan and your company grows, how does the bank get paid back? Withdrawing from the company to pay the bank gets taxed. I think I'm missing something.
Exactly right. He did not cover the fact that the bank had to be paid back, even on a revolving credit line. Income was needed from somewhere to pay the bank. Where did that income come from and how was it taxed (or sheltered) in this example. Makes no sense without that information.
@@jeffg4008 it’s not income ones revenue and paying off debts is a qualified business “operation expenses” as long as there not profit when the books are closed what is there to be taxed on?
@@treygraphicsfte6747 this is exactly what needed to be covered, but wasn't. You have to be operating under the umbrella of a business and not just a rich guy taking out a loan with a bank as represented in the video. I'll say it again, where did Elon's income come from to pay the bank on his 100k loan if he took no salary? In your example the corporation took out the loan, in the video it was said that Elon took out the loan. Two very different things and completely different scenarios.
@@jeffg4008 If it's a margin loan, the bank owns the stocks as collateral and they collect their money from the stock returns. For example, if you borrow against the stocks at 6% interest but the stocks appreciate by 10%, you will still net a 4% gain after the bank takes their cut. No income needed. For margin loans, you only have to pay the interest, not the principal. You don't even have to be rich to do this since platforms like Robinhood and M1 Finance offer it.
@@baseballconnection8090 there it is! Much better explanation and I thank you for that.
Can I spend a day with you on whenever ur in process of a new deal in real estate?
Its also unlawful to pay tax
Does real estate thing works for my residential property also??