(upbeat ambient music)
- [Narrator] This is The Rich Dad Radio Show, the good news and bad news about money. Here's Robert Kiyosaki. - Hello, I'm Robert Kiyosaki,
The Rich Dad Radio Show. Today the good news and
bad news about taxes, and you'll find out, it's
part of a four part series, because it's tax time again! And if you're gonna pay taxes this year, listen to these four series now, so next year, you may not
have to pay taxes legally, because if you're paying
taxes, you got bad advice. You got very bad advice
because as you know, the rich pay as little tax as possible. So, a four part series, when we have businesses, this
is from the asset column here, we had real estate with Ken McElroy, how debt and taxes make the rich richer. We had paper with Andy
Tanner and John McGregor on stocks, 401K's, mutual funds, IRAs. And then today, my favorite
subject commodities, gold, silver, oil, and Bitcoin. Now all you Bitcoin fanatics out there and probably most of you are pretty young, this would be a good
time to learn about taxes before the government,
Uncle Joe Biden and Kamala, and Yellen, Secretary of Treasury and the Fed take of money from me, because they're after Bitcoin, big time. You know, I can't believe it, Janet Yellen the secretary treasurer, former head of the
Federal Reserve Bank says, oh, Bitcoin is used by
criminals, I go ahead, also was the US dollar. (laughing)
you know, give me a break. But whenever I hear them
bad mouthing Bitcoin and I own Bitcoin, is
they're after you guys. So, one way they're gonna get your money is the same way they got Al Capone, it wasn't for bootlegging,
they got Al Al Capone on taxes. And so always remember, taxes, the number one most important thing in your financial education, of course they don't
teach you that at school. So it's a four part series, again, this is the part four of
which is business real estate paper, and now commodities. And commodities are at the bottom but they're really the
most important because, you know, I have lots of gold,
I have lots of real silver, I don't have any paper, I don't like ETFs. And I have oil, and I have Bitcoin. So today we're gonna be
talking about taxes on that but the reason this is important is the dollar which is paper, is fake. And you know, today's
like March, something 2021 and Uncle Joe Biden again are trying to raise another 1.9 trillion
(chuckles) in fake money. Now every time they print
money, the poor get poorer, so they'll get happy, oh, Uncle Joe and Janet, and
Kamala are gonna give me money, but you're gonna get poorer because your dollar is worth less. And then they go, ah, yeah,
can I get 14 $100 Timmy Chuck and I'll play on Robin
Hood and go after GameStop, what will you guys do? That's stupid, that's
really really stupid. So if they're gonna give you free money, do something with it. So buy some gold, silver, Bitcoin or oil. So today, again, it's a four part series, is my personal tax
advisor, Tom Wheelwright, he is the author of Tax Free Wealth, and we're gonna talk about,
gold, silver, oil and Bitcoin. So welcome to the program, Tom. - Thanks Robert, always
good to be here with you. - Yeah, so, I wanna plug this thing here, I mean I can't believe it,
it's actually readable. (chuckles) Tom sent me this wonderful
document here, you know, generally whenever Tom sends
me a tax notice from the Department of the Treasury,
Internal Revenue Service, I don't need sleeping pill,
I just fall right asleep. But this thing is pretty
good, I can read it and it's about, it says, the Internal Revenue Service
is aware that virtual currency, see, you Bitcoin guys, you
got a target on your back now, they know you got some
money, and they want it. So anyway, Tom will make
this available to you. I suggest you get out, there's
all the highlights here what you can and cannot
do with virtual currency, Bitcoin, I have Ethereum
also, I like the stuff, and those people hate
it, well that's life. So Tom, you know, virtual
currency or Bitcoin in theory and all that, that's big news. What do you see what reading
is wonderful documents, which you can go to your website at, what's your website again? - Wealthability.com - Wealthability.com. so all you guys out
there who are criminals on Silk Road with Bitcoin,
get this document. (chuckles)
I'm only kidding. So Tom, what what is IRS
saying about virtual currency? - Well, they say a couple of things that I think is really
important first of all, that any time you use or
trade your virtual currency, that's a taxable transaction. So, I mean,
(chuckles) let's give an example, let's
say that Bitcoin became a you know, normal trade,
you go buy groceries, when you buy groceries with Bitcoin. That would be taxable 'cause
it'd be considered a trade for Bitcoin for US Dollars. So every time you spend Bitcoin, every time you sell Bitcoin, all of that is taxable, and here's the thing, so
on your tax return now, there is a box you have to check to say, did you trade with Bitcoin? Well that means, did you do
anything other than just buy it? Okay, if you bought it, you
don't have to mark that box, but any other use of it,
you have to mark that box. If you don't mark that box, Robert, it's a felony. This is not a civil penalty,
most things on a tax return are just civil penalties, right, they're just, okay, pip it down,
right, get my wrist slapped and I go on my way, not with this one. This is a felony, they will come after you if you don't mark that, and in fact, you should have marked it. - Trust me, they are coming
after, I mean us 'cause I've done very well with
Bitcoin and Ethereum, but Tom knows my tax strategy,
I buy but I never sell. And if I paid somebody in Bitcoin, what would happen then Tom? - That would be taxable. So, if you paid them.
- for me and the person I pay? (chuckles)
- It would be taxable both for you and for the
person you pay, that's right. - So,
(chuckles) as long as I'm buying my Bitcoin after I paid all the taxes
which I don't pay anyway and I store the Bitcoin
into my asset column and it sits there, it's like
my gold and silver, right, as long as I'm not using it.
- Right. - It's not taxable. - It's actually just
like the gold and silver, so the same thing would happen
if you went and used silver or you know silver and
gold to buy something, that would be a taxable transaction too, so it's very similar to gold and silver. The one difference is is that if you hold Bitcoin for over a year, you do get capital gains rates, so you get to tax that at 15% or 20% instead of ordinary income, gold and silver have a
different tax rate than that, so you just, that's the one primary
difference between the two. - Again, and I want to talk
about this, this is a document. Go to what's your website again, Tom? - Wealthability.com. - And in here are all the
things you wanna know, all you new Bitcoin billionaires, or soon to be billionaires, you wanna know what to do before you do something
stupid like spend it. So, what else were you want to
say about Bitcoin or crypto? - Well, there's, you know
a lot of the the issue that I think people have is tracking it. You know, I mean the
whole goal for Bitcoin is not to be tracked but the reality is is that if you ever were to start to use it,
or when you trade it, you do have to track that and you do have to report
that just like you were, if you were trading stocks
or foreign currencies, something like that. So, you know the compliance
part of it I think is the most, one of the most difficult parts. Bitcoin is, you start to comply, just because it's not a real,
it's not a foreign currency, just because it's not the US Dollar, just because it's not a stock, doesn't mean you don't have
to report that transaction on your tax return and pay tax, and I think that's the
most important thing I think people miss that all the time that they need to know
that they're in big trouble if they don't report this correctly, the IRS will come after them. - Well, not that I'm suggesting this, but isn't one of the pitch points, one of the reasons for buying Bitcoin is the government can't track it? - That is one of the pitch points okay, so the, can they track it? No, they can't right now. It's a voluntary system right, all of our, frankly all of our taxes
are voluntary system. But when they audit you and
they ask you that question, if you say no, that's a felony, so
(chuckles) just know that you are,
if they do catch you, you're in pretty big trouble. - I think I was laughing about as I see a lot of these really young guys who now become Bitcoin multimillionaires, and I watch them on their YouTube podcast, and they sit in these
huge mansions now with, they look like Al Pacino
in Scarface or something, you know, these huge dragons
and all that around them. So obviously they spent some money, right? (chuckles) - Well, obviously, they did and the reality is is that, obviously the IRS is gonna check on that, and the IRS is doing more and more audits, and they're doing more and
more audits on cryptocurrency. Here's the thing people
think, well Bitcoin, and so, I'm good, but you only can use that
Bitcoin for the most part if you convert it to dollars, right, I mean it's not like
there's a huge marketplace where you can go out and
buy houses using Bitcoin, most people aren't going to accept Bitcoin in exchange for their house, and so you're exchanging it for dollars, when you do that exchange, that's where the IRS is gonna track you. So it's it's converting it from Bitcoin to something else like dollars, that's where the IRS tracks you and know that that's pretty
easy for them to track. - So years ago when
Bitcoin first came out, this guy was selling
condos in New York City in the Soho area, and
they're accepting bitcoin. So that would be trackable, wouldn't it because you now have a
record of real estate also. - Exactly because you have a record of
that real estate transaction, and you know who the
buyers and sellers are, and so the IRS can be looking at that or the New York State
Department of Taxation can be looking at that because New York State's even
more aggressive than the IRS and say well wait a
minute, where's the gain, you know, where's the reporting on this? - So let's say I bought
Bitcoin at $10,000, and I buy something for $20,000 using the same $10,000 Bitcoin, because it gone up to let's
say 20, how is that taxed? - So you're gonna pay
tax on $10,000, right, so it's as if you sold
it, and then use the cash, which by the way, you probably did in the first place, you probably sold it to get
the cash in the first place. And it's a, like I said, when you're exchanging Bitcoin for dollars that's where the IRS can track you. - Good, good. And how, as you know, I like oil, and you know an oil is
under fire right now because of carbon tax.
- Right. - Which is good because I'm
gonna make even more money because I'm gonna shift
and become a greeny, and I'm gonna invest in green new energy because I get huge deals
for carbon tax now. - [Tom] Of course. - Of course, you know,
capitalism is wonderful stuff, you just keep moving around out there, where everybody else is
trying to eat granola and eat asparagus, you know
I'm shifting to a greeny, buying carbon tax credits
and making for each slot because I'm gonna buy oil with it, but for years, you know when
you look at this thing here, this is the point of having Tom and his book is Tax Free Wealth and you should have tax advisers. - Right.
- But anyway, I love this here, commodities down here because in my opinion, this is
where your wealth is stored. So as I explained the
last other interviews is you know I make a lot of money, Kim and I make a lot of money here, let me show this. So let's say that Rich Dad Company makes $1 million here. And the next thing I do is
I give the money to Kenny. So $1 million comes down here and Kenny borrow 4 million of my one, so I've now moved my 4
million over here as five. So a one plus four equals five. And that's this other tax, this is part four of a four part series , so please listen to Kenny
and Tom and myself and Kim talking about how a
entrepreneur like Donald Trump, unlike Hillary and the other characters. I make my money here as a business owner, the money then goes into
Kenny, who borrows $4 million and we buy $5 million of real estate. How does that save me money, Tom? - Well, so there are major
incentives in the tax law for buying real estate,
investment real estate. So you can get the big tax
deductions from the real estate that offset the income from the business. So effectively , you end up not paying
tax on the business income because you did what the
government wanted you to do, and put it into real estate
and you know very well, Robert, the same thing happens if
you put it into oil, right or if you put it into solar, you get the same type of tax benefits, so that you're not paying
tax on your business income, or your other income. - Hmm. So let me get some, take us to, because this is what we teach
through our cash flow clubs is an advanced tax strategy
and real estate strategies, so that'd 5 million, let's
say that 5 million property appreciates up to 10 million. I borrow out the five, so
it went from 5 million, it's now worth 10 million. Kenny raises the rents, I
pull out $5 million in cash, is that tax free money? - That is tax free money,
that debt is not taxable. - And with that I buy bitcoin. - Exactly. So that's how you make
your Bitcoin not taxable, or you have other options too, I mean, you can buy
bitcoin in, for example, you can buy bitcoin in your Roth IRA. There's all sorts of
things you can do here once you understand the tax law
and how the incentives work. - See the problem with most people is when they make some
money, they want to spend it and that's the problem. Oh, I'm a billionaire in
Bitcoin, but I can spend a thing because my capital gains tax
(chuckles) will be through the roof. You know, but there's things you can do if you have a great tax
strategist like Tom. Now all the communists and the Pinkles and the school teachers,
says, well, that's not fair. Oh, that's what Hillary Clinton attacked my friend Donald Trump, she says, you know you don't pay taxes. And Trump said to Hillary, but this is 2016 or whatever
it was, that means I'm smart. Just because you make a lot of money, and you pay taxes, means you're stupid. So my bitcoin is totally tax free simply because this is
my general policies, I make a $1 million here, it comes down here,
Kenny borrows 4 million, so I have 4 million in
debt and liabilities. We buy a $5 million property, the $5 million property
would raise the rent, it goes up to 10, I borrow the five, and I buy bitcoin with it. So if you understand that, that's why Donald Trump says
(chuckles) that means I'm smart. So just because you're rich
in Bitcoin or gold or silver, doesn't mean you're smart. So when we come back, well be talking more with Tom
Wheelwright on how commodities are your most important
asset in my opinion, I mean this is where my wealth
is, I don't save dollars, this it's just trash. As Michael Sailor says
you know about bitcoin is that the dollar is like
holding on to an ice cube that's melting in your hand,
and they're gonna, you know, this is 2021, they're gonna print another
1.6 trillion or 9 trillion. I mean, you savers are getting screwed. Which means, Bitcoin goes up, probably gold and silver
goes up through inflation, but just because the commodity goes up, doesn't mean you're rich,
you still have taxes. We'll be right back. Welcome back, Robert Kiyosaki,
The Rich Dad Radio Show, the good news and bad
news today about taxes. And if you're paying taxes this year, I'm mean, you've got some bad tax advice. And so this is for next year, because if you're really smart, you can make a lot more money and pay a lot less in taxes legally, and please do it legally because you don't wanna go to jail and dance in a hula skirt,
you know what I mean, so do it legally.
(chuckles) So anyway, our guest today
in our four part series, Tom Wheelwright, he is the
author of Tax Free Wealth. I mean he is, I mean, I
was, Tom's a A- student, I was a C-student that
along with Kenny McElroy, we're not the brightest
matches in the box, but Tom was and we always go to him before
we make any tax decisions. So, Sara had a question on, I can tell she's into bitcoin now (chuckles)
so. So Sara, what was your question? - Well, not anymore, not after I learned I'm
getting text up the wazoo, no. (chuckles) No, my question to Tom during the break was because I use the
app Coinbase to track cryptocurrency purchases
and that sort of thing, so I was just curious if Tom was aware of any sort of maybe reporting that these apps are gonna
have to start doing to the IRS to track these transactions since these transactions are
what caused the taxable event? - Yeah, there's no question that they'll, just like, I mean if you
think back to stock trading, I remember 20 years ago when you had to do your own calculation of your stock trades, right, whether your gains, losses, etc. and then the big brokerage houses, they were required by the IRS to come out with better reporting and now what you do is you just attach a form to your tax return, that the brokerage house sent you, that's gonna happen with Bitcoin, that's gonna happen with
all of the Crypto's, all the virtual currencies, because otherwise it's gonna be impossible for people to track this. so the IRS is going to require
that, I'm not sure exactly, I haven't looked this year yet as to what they're requiring for 2020. But we really, we know
that they will track it. And the other thing we know
is that they can regulate, you know, people think
Bitcoin can't be regulated, and when it's regulated because it will get regulated, it will be through taxes, okay, because anytime you bring it in or out of the financial system, now they can track it,
now they can require it, they can even put a special
tax just on virtual currency. So, you know, this idea
that it can't be tracked is, a little bit of a fantasy. - Well, you know, Tom, and now that I'm a
hardcore Bitcoin fanatic, I listen to all their banter back and forth
on YouTube and they saying. - Yeah.
- The US taxes, my Bitcoin, I'm moving to Timbuktu. - It doesn't matter.
- Yeah, but they'll, that's what I hear on
YouTube or the you know, they are gonna run to
the country that respects (chuckles)
crypto and all this stuff, and I listened to the old guys like myself and Jim Records and
Jim Rogers and he says, never forget who has the guns. (chuckles)
Never forget who has the goddesses. Remember those guys at Tiananmen Square, they stuck the finger up with the guy and they put a tank and they ran him over. (chuckles)
You know what they said? And always remember this, Al Capone wasn't taken down for alcohol, Al Capone was taken down for taxes. And so you can say what
you like and all this, I'd rather just hire Tom,
and make a million dollars and pay no taxes. So Tom will tell us one more time where they can get your paper from the Internal Revenue Service? - Just go to wealthability.com and type in Bitcoin, you'll
be able to find this, it's internal revenue bulletin. - Yeah, and it's actually
pretty easy to read, I read it, it was not bad. But the point here is this, I'm gonna just, read out
the rich dad philosophy is I don't, Tom knows, I don't have any stocks, bonds, mutual funds, ETFs because they're taxable.
(chuckles) And I like saving, I don't say money, I save gold, silver, Bitcoin, oil as commodity because it's
real, it's based down here. And I just explained to you how I can make a million dollars, buy a million dollars of
Bitcoin and pay no tax, but oil is another one, Tom, So let's say I have extra
cash here coming from Kenny or however I get it, which is part of the
cash flow club series. Let's have a million dollars and I give my money to my
friend at oil company in Dallas. Let's give him a million
dollars for oil exploration. How much of that money is taxable? - Zero.
- Zero. - Because if you have a million dollars, let's say you made a million
dollars for your business and you put that million dollars into oil, you'd get a deduction of a million dollars to offset the main doors from the business and basically you pay no tax and so it's a tax free investment. - So this is what we teach at Rich Dad. I have a business, I have a number of businesses
but one people know us but Rich Dad, I make a million dollars here,
it comes down here to Kenny, he ramps it up to four 5 million, he has four millions of debt in it, is debt tax free? - It is. - Yeah and it comes over here, it comes on as 5, Kenny then raises the rents and most of the properties goes from 5 million to 10 million. I borrow out the 5 million and I buy $5 million worth of oil. What happens to me then? (chuckles)
- So now got a $5 million dollar deduction, you actually need more income. (chuckles) you more taxable income at that point, it's backwards, now you need to increase
your business income, (laughing) so you can actually use that loss. (laughing) - So the other part of it is because I have all this money coming
in tax free because of Tom, I'm stacking up my commodity column here. So my Bitcoin is piling
up, I don't need the cash because I'm catching it off
of tax free debt coming off. That's what we teach at Rich dad. Ain't nobody says go to school,
get a job and buy an ETF, you should shoot the
bugger, you're lying to me, you're making me pay taxes. Oh, be a hardworking person, and you're working for all this money, it really, really hard and then Biden's gonna
print $1.9 trillion. I mean, are you nuts? When they print money, your purchasing power of your
salary goes down, right Tom? - Oh, for sure. You're talking about being a greeny and going that direction, so remember the same
thing that we do with oil and the same thing we do with real estate, remember all incentives, they're gonna go towards green energy. So they're gonna go to solar and wind and whatever kind of
green energy they have, there's gonna be not, right now, we don't just have deductions, we have credits. Which is $1 for $1 offset.
- Right. - I mean, this is like
Nirvana from a tax standpoint where you can actually make money from the government by investing. - So I just, through
my friend Marin Katusa, I just turned bright green. (chuckles)
You know, AOC, Alexandria Ocasio Cortez,
whatever her name is. I'm now so green, I
look like a little frog. And because I'm getting
carbon tax credits, Tom, what does that mean? - Well, so what happens is, is that carbon tax credits are credits
that the utility companies and the producers who use the carbons, like coal for example,
they can trade those. So for example, in the west,
now I was at a public utility for a number of years,
their in house tax advisor and that's when the carbon
taxes started coming up. And so in the west, they have for example, really clean coal, in the east, it's really dirty coal. Well, so my company in the
west would sell its credit to the companies in the east and make money just on the credit, because they naturally have
cleaner coal to begin with. So there's a market here,
there's always been, and this is something we
don't talk about a lot, but there's a market for tax credits, low income tax credit,
housing tax credits, solar tax credits, there's all sorts of
markets for tax credits. - God bless capitalism,
you know what I mean, it's just so wonderful. And the rich get richer. I mean, yeah, you know, is it fair? No, it's not fair. But it's the law, it's
the way capitalism works, is this true all
throughout the world, Tom? - It is, it's really
fascinating to just watch how, when we go to different countries, and of course, I always
look at the tax law when we go the different countries, and they're remarkably similar. The incentives because they
all want the same thing, they want cheap energy,
they want employment, they want real estate, they want housing and so the way they get their work done, is they use capitalists,
frankly, to get their work done and they give them small tax incentives so the capitalist put
in and risk their money into these projects that
the government wants. - Yep. So anyway, there's a lot to learn, and so anybody who says to go to school, get a job, work hard, save
money, get out of debt, and invest in the stock market,
they're ripping you off. Because guys like me
just won't not do that, and like I say, God bless
Alexandria Ocasio-Cortez, like when I first heard that, I went, ooh, she's gonna make me a rich man. (chuckles) So I invested in the home, and I've made a couple of million dollars on just tax credits this year. And so it's, capitalism is wonderful, except the socialists
will never tell you that because they don't know it themselves. Any it comments on that, Tom, I mean, what's happening in America today, I mean, the gap between
rich and poor is horrifying. - Well, it is horrifying,
and here's the thing is that it's really a gap in education and, as you say, it's the gap in financial
education more than anything, because the rich get richer because the government
gives them incentives, and the poor don't know
about those incentives and so they end up paying all the taxes. You know, Joe Biden says that, people who make under $400,000 aren't gonna pay increase taxes, I'm going well, it's kind
of a silly statement, because it's like the people over 400,000 are paying taxes to begin with, right? Because those with good tax advice that, follow that, basically
what you're teaching of how you use your money
and invest in business, real estate and commodities, they're not paying taxes
in the first place, so what if it's 400,000 because like we don't have any clients that make $400,000 on paper, their tax returns are
gonna show less than that, so I'm okay with that. I'm okay with Joe Biden's
increasing taxes over 400,000, Entrepreneurs don't pay that. - No, And the biggest point here is this is that when somebody says live debt free, Tom, am I deeply in debt. - Very deeply in debt. - Because debt is tax free money. - That's right. - If you understand that, that's why our school system,
should be shot at dawn. I mean, while they're
not in school anyway, the school teachers are now in Puerto Rico collecting their PPP checks,
or whatever they're doing, and the kids are not getting
any kind of education. But that's the education
system of America, it as no financial education and that's why we have
the Rich dad company, that's why we have our cash flow clubs and all this so you can understand why the rich are getting richer legally, because we're incentives. So Tom, before go out, can you explain why we're
not cheating the government? I mean, you talked about
incentives and all this, why am I not cheating the government? - So here's what most
people don't understand, there's very little of the tax law that actually raises revenue, most of the tax law is just the government implementing its policies. Okay, so if the government
wants to create jobs, then it gives tax benefits. I mean, we saw this in
the PPP loans, right? That was a good example of that where the government saying, well look, if you keep
paying your employees, we'll pay for that. Okay, it's the same thing. Most of them aren't direct
subsidies like a PPP loan, that was a direct subsidy, most of them go through the tax law. So if you want to know
what you're government, no matter where you are, if you wanna know what your
government wants to have done, wants to have accomplished,
look at your tax law, go to your tax advisor says, for example, what does the
tax law say in my country about developing housing? What do they say about
commercial buildings? What do they say about
solar energy, solar panels, and what you'll find is,
is that most governments are incentivizing certain things
that they wanna have done, because they want the
capitalists to put the money, to risk the money, and they're willing to
take some of that risk off of the capitalists by
giving them a tax deduction. - And so that's why when I drill for oil, I mean, America is now a so
called energy independent, if we weren't energy
independent due to fracking, and I'm gonna say, the green
has gone nuts, god bless them, but I'm gonna get rich because of that. But if we didn't have that we'd be at war in the Middle
East, which we are anyway, because of oil. And so by incentivizing people I made to move my millions of dollars into oil, the government gives me a tax break, America becomes energy dependent. And a couple of things,
why did Biden cut down this pipeline? I mean, once you have against oil? - Well, I think that was part of the climate green and
all that kind of stuff. That's what he was after, you know, you're destroying
the wilderness and so forth, and that's why he cut out that pipeline, and where he wants the incentives to go is to renewable energy. Okay.
- Green is the new deal. - So it's just gonna come
away from the oil companies, I mean, this is a great thing
about capitalism, right? All you have to do is shift your money to where the government wants it to go, and you legally still don't pay taxes, but you just have to shift with
the government, that's all. - Yes the moment shut down
that pipeline, I got richer because of I went to a green new deal, because I got carbon tax credits. If you understand that, that's the game, but they'll never teach
you that in school. Never, never, never, never. And that's why it's the gap
between everybody, the rich and everybody else is so dangerous now, that's why you know, I speak that's why we found the Rich Dad company, hopefully some of you will catch on. But what our schools and our
communists and our socialism and our radical left people
are trying to tell you is that you're being screwed
while they're screwing you. The school teachers are the
biggest criminals right now, because they're not even in school. They want you to take
25 vaccines or something before they'll come to school, the kids aren't the danger,
the teachers are the danger. So our education system is so corrupt, so that was the story
of Rich Dad, Poor Dad. You know, my poor dad is a
very, very good, honest, man, but stupid. PHD, poor, helpless and desperate. He knew nothing about money, but he thought he knew everything. And my rich dad was a man
who never went to school that's why he was so rich. So that's why I have advisors
like Tom wheelwright, that's why on The Rich Dad Radio Show because government wants
you, wants capitalists, wants entrepreneurs to
take risks with our money, and do what the government wants done. If you wanna see what the
government wants done, go to a communist country, for
example, I was in Kurdistan, and I went into government housing there. Oh, my God, you think our slums are bad, you haven't been to a Kurdistan slum. That is amazing. And this guy, young Russian
guy, he was so proud, there with his wife and his two kids, I was terrified just walking in the place, going upstairs, there's
no elevator of course, it's not heated very well,
it's dirty coal is sit there and it's government housing. And instead in American,
the capitalist society, you know, Kenny and I put up the millions to build
the houses, apartment houses. And that's why and the government
wants us to borrow money, because if we don't borrow money, money is not created
because money is debt. Is that correct, Tom? - No, that's exactly right. And, (chuckles)
the bank doesn't want your money unless
they can lend it, right. That's why they want your money because they wanna lend
as much as possible, and they want that cycle to keep going. - Right.
- And the only way to promote that, for one thing is, a, don't tax that and b,
encouraged using debt for business and other investments. - Another incentive
(chuckles) is to pay nothing for your savings. (laughing) and give me a tax break to borrow money, when are people gonna get it? - Well, here's the thing, (chuckles)
you get a tax deduction when you borrow that money, because the interest you
pay is tax deductible. - Yeah.
- When you use it for investing, if you use it personally, it's not deductible, if you
use it for investing, it is. - That should tell you something about how the government
feels about borrowing money, that's good debt instead of bad debt. - Yeah. Well, they just want you to get into debt, so otherwise (chuckles)
there's no money. 1971 the US dollar became debt when Nixon took the dollar
off the gold standard. - That's right. - But they never taught you that school. Anyway, Tom, thank you very, very much, been a great four part series. Once again, how can they
get this beautiful document before they become criminals? All you Bitcoin guys. - Yes, go to wealthability.com and we'll have it available for you. - Okay man, well, thank you very much, and we'll be right back for a summary of The Rich Dad Radio Show. Thank you, Tom. Welcome back, Robert Kiyosaki,
The Rich Dad Radio Show, the good news and bad news about taxes, and if you're paying taxes this year, you've had bad tax advice, or
you've listened to an idiot. So I thank Tom Wheelwright, he's author of the book 'Tax Free Wealth', he's a Rich Dad adviser, he's the reason that
myself, my whole team, we make millions of dollars
and pay no taxes legally. And this was especially
timely because of Bitcoin. Everybody's into it now, I am too. So anyway, you listen to The
Rich Dad Radio program anytime, anywhere on iTunes, Android, or YouTube and please leave us a review. We all make any recommendations, we're not saying to do anything, we're just a pure education company. If you wanna listen to this program again, go to richdadradio.com,
we archive everything because repetition is how you learn, listen to this program a second time, you'll learn more about why
the rich are getting richer, and everyone else is getting hammered with their free money from the communist republic of
America, government money, it's gonna make more people poor. But everybody's getting happy, because getting free
money from the government, and meanwhile, I don't know what people are gonna do. But anyway, listen to
The Rich Dad Radio Show again at richdadradio.com and have friends, family
and business associates listen to it and discuss it. I think you'll see a
whole different world. Once again, thank you to Tom Wheelwright, he is a part of a four part series. So what do you think there, Sara? - This was for me the most fun tax show we've done for this series. And I think it's only because Bitcoin has been so
hyped up in the media lately, it's growing to all time highs. So it seems really relevant and exciting, but I think the reason why this will be the most important show, is there are a lot of amateur investors that have jumped into bitcoin. I totally understand why. But the cautionary tale here is you don't spend your Bitcoin. So all of these millionaire
Bitcoin guys that made millions overnight
or in the last few months, they just have to be careful, because the government wants their money. (chuckles) - Right.
- And they're gonna get their money. So you just have to be careful. - I won't mention names, but there's a couple of
these Bitcoin billionaires, you know, I think they were
buying in at 10 cents a coin or something.
- Hmm-mm. - And every program I watch them, they're in a bigger house with
new furniture and all this, and I can see the IRS dragging them off
(chuckles) where they're at.
- Hmm-mm. - Because the moment
they spend that money, always remember that's what got Al Capone. You know, it wasn't alcohol, it was taxes. So that's why you gotta understand what I talked about today,
all my Bitcoin is tax free. My oil is tax free, because I've got advice
like Tom Wheelwright, and you can do the same thing. So if you're paying taxes, like all you guys hiding
out in Puerto Rico, you don't have to do that, you don't have to hang out in Puerto Rico, unless you're a criminal or something or you had bad tax advice. I just crack up like I got so many guys hiding
in Puerto Rico right now. I go, why'd he do that? But the reason they hide in Puerto Rico and they can't vote now is
because of that poor tax advice. - Hmm-mm.
- So it's really an interesting time is and
that's what Rich Dad stands for. I won't make any recommendations, but please get educated, please look for the best advice. Final Word. - Final Word is, I'm glad Tom's making that
IRS document available to everybody, so just go to
wealth ability.com to get it. Because one thing that
I learned new in there that I didn't know before was that miners, if you're mining Bitcoin,
not even selling it, you're just mining it, that
is a taxable event as well. - Yeah.
- So all you miners out there also have a liability. So the key is to get educated,
understand what you're doing. So I thought this was a great show. - Yeah, thank you. Again, it's not just one
asset I'm operating on off and I don't have paper. I don't like stocks, bonds,
mutual funds or ETFs. But most people should be in it, I'm not. But anyway, I just like this
because of the tax advantages. So with that, thank you all for listening to The Rich Dad radio show. And thanks once again to Tom
Wheelwright, wealthability.com
