How Big Earners Reduce their Taxes to Zero

hey you guys that are earning two million dollars a year million dollars 2 million 3 million 5 million ball players rappers big earners show you a little trick to the wealthy note your biggest expense in business if you got a talent or you got a business your biggest expense is number one your taxes what the wealthy know is how to reduce their tax bill that's what you don't know that you got to get a handle on reduce your tax bill to literally zero and beyond that's right beyond that's where you would get tax refunds or credits going forward to reduce your income tax federal and state to zero how do you do that i'm gonna show you [Music] anybody can do it it's completely legal and if you don't do it come on you're just not you're just not following the tips of the wealthy i didn't grow up with wealth i grew up and had to figure out how to take my talent increase my income reduce my tax bill and then get my money to work for me harder than i worked for my damn money okay welcome to cardone capital cardone enterprises welcome to my company i'm gonna show you how to play this game i mean why you play any game to win so if you're earning two million bucks a year we're going to take that down to zero you're gonna keep earning your two million but i'm gonna show you how to use the two so look if you're earning a bunch of money the goal is to take your earnings reduce it to zero still have the money but take the money and invest it so let's say you're earning two million dollars a year if you live in new york city one million dollars of that is going to the irs that means you got to figure out how to live on one million dollars and if you're a ball player out of that cane 200 grand for an agent another 200 grand probably for a manager and you're having to live on eight hundred thousand if you buy a house for your mother you're freaking broke again so i'm gonna show you how to play the game you earn two million okay live on as little of this money as you can in the beginning do not spend earned income don't spend it what you do is you invest it and use it in a second business and or real property so let's say i take 200 million the state's going to take you're still going to have your 400 000 go to agents and managers you got 1.6 million dollars i want you to invest as much of that 1.6 million dollars into real property real property will buy you about 4.8 million dollars worth of in this case real estate that 4.8 million dollars worth of real estate because it's got real property 4.8 million dollars for instance in a deal that i'm doing right now will provide you with 2.4 million dollars worth of depreciation that reduces this tax bill of 1.6 after your managers these are expenses to negative hundred thousand dollars that can be cf carry forward into future years that means next year if you earn two million dollars you're walking into that year with an eight hundred thousand dollar credit against your income now you need to check with your tax attorney you need to check with your accountant you need to check with your manager and your agent but i promise you all four of them are going to tell you this guy's onto something get your earned income earned income needs to be zero and passive income [Music] i need to invest in a new whiteboard your passive income of the what did we say 1.6 million dollars that we invested that we have left over we literally i'm i'm encouraging your littering no watches no houses in the beginning okay don't spend any money on the stuff no ferraris take the 1.6 leverage it it'll about 4.8 million dollars worth of real property okay you want to stay focused on your baseball your basketball your rapping you want to focus on your business or maybe you want to invest this money back in your business and zero out okay you want to reinvest in furniture equipment uh if you're a musician into uh equipment touring anything to do with your business to grow your business literally get your earned income to be zero the tax bill on zero is zero 61 percent of all citizens in the united states last year made no contribution to the federal income taxes your job is to make sure that you take your earned income because you got a lot of talent reinvest that money okay so that you can be better talent and or prepare for transition when you no longer have that talent so this 1.6 million dollars of earned income after your agent and your manager you would invest and leverage three to four times by 4.8 million worth of real estate that would give you 2.4 million dollars worth of depreciation in the first year it's a little complicated now this is called accelerated depreciation this is the game this is the game that the wealthy know how to use and that's why they tend to use all their earned income okay some of the biggest players in the world they pay themselves zero one dollar a year i think mark zuckerberg makes one dollar a year but he gets stock options real property this 2.4 million dollars of depreciation you get in 2021 if you use it all you'll get it again in 22. if you don't use it all you'll get it again in 2023 and you're gonna continue to do this every year okay i'm going to continue to do the same mechanism every year reinvesting earned income okay so stay with me here okay watch what's going to happen this 4.8 million dollars worth of real estate remember this it's in the box you own that that's your position okay this 1.6 million dollars that you invested should provide you with about 90 000 a year in income passive income okay that's in year one if you do this again in year two it's going to get you another 90 000 a year in passive income that's 180 grand by year two but in year two you now have 9.6 million dollars worth of real estate real property that should be appreciating in value providing you and your family with passive income now now we're at about 15 000 a month in passive income and you're starting to prepare third year fourth year fifth year now you're at 75 000 a month in passive income you're going to exit your career because look you got five years maybe at max ball players artists you don't have forever you're not going to be a 35-year baseball player or basketball player so if you start multiplying these years in year two i'm at 180 000 in year four i'm at 360. it year eight i'm at 700 grand in passive income per year and that is not counting the value of the real property which in this case if i can take this out eight years if you could duplicate this every year not get a pay raise every year eight years eight times if we did this every year 4.8 million dollars you've paid no taxes for eight years in a perfect situation and that would be 38 million four hundred thousand dollars worth of real estate that is going up in value every year if this just goes up three percent a year i could take this out and i say in the next 10 to 15 years you'll have 100 million dollars worth of real estate throwing out passive income most of passive income is now not taxed at the highest rates it's it's somewhere as low as 19 percent a year where you're paying 48 to 63 depending on whether you live in la or new york or one of these crazy states so look check with your accountant but what i'm telling you is real it's legal it's legit and it's what is what the wealthy people do i can't i could go into another level of this that would be freaking incredible for you in fact i will right now if this property becomes worth 100 million dollars to you doing the kind of real estate that we do rents go up as rents go up what happens is the value of the property goes up if this real estate is worth 100 million and let's take this out eight years you could actually go borrow your family could borrow against this portfolio of real estate let's say we borrowed 60 million dollars against this real estate you could take out 40 million dollars just to blow your mind a second more than you've earned by the way 5 million times 8 years more than you've earned in the five years of playing second base or shortstop okay or bouncing your knees on a damn court bouncing those knees do center layer your knees and your hips and your ankles if they're gonna quit but your money shouldn't quit your money should last longer than your body last okay you you could literally recapitalize borrow on the 100 million you cannot borrow on your career when your career is over you can borrow on your real estate because it's never over on this you would borrow 60 million dollars worth of debt you'd be left with 40 million dollars if this portfolio was paid off you would walk away with 40 million dollars you still own the property because you want your family to own it so that you pass it on to your next generations this 40 million dollars will go in your pocket in your bank account and the tax bill would be zero that's right you're basically borrowing money out of the future this is what wealthy people do wealthy people buy assets they take earned income from a talent okay they get money they take the money and they don't buy watches and and houses with it what they do is they buy a business and or real properties with it that real property provides you with a tax write-off your earned income is zero over here because you reinvested the earned income you didn't use the earned income you didn't consume the earned income buying garbage what you did was you reinvested the earned income into real property that throws you off passive income that over times will displace and replace your earned income so that you can live while you have an appreciating asset over here your talent is depreciating and your assets are appreciating okay providing you with passive income and then in the future what they do is they'll borrow not sell okay you're gonna borrow against assets never sell you don't sell you borrow okay so if i have something worth 100 million and you will your your talent will not be worth 100 million in the future if you got a talent sooner or later it expires okay i can borrow against real property real property that provides income the bank will give you a loan on and you walk away with 40 million dollars non-taxable event and you could do this every 10 years and still own the asset far fast forward 10 years the 100 million is now worth 140 million another 10 years 140 million is worth 200 million and each time you're taking out 40 million dollars a clip to take care of your family to take care of your trips to take care of your lifestyle look it's real folks i've done it okay i wanted to be a baseball player i'm glad i wouldn't okay i wanted to be a baseball player but i couldn't make the game okay you are a ball player you are a rapper you're a comedian an artist okay you're in a movie business you're making a bunch of money right now if you don't figure out how to reduce your tax bill to zero doing what i just showed you reinvesting in real assets to provide you and your family with income reducing your tax bill to zero when you can and how you can and by doing it legitimately and legal by buying equipment this is what all big companies do okay why should facebook pay no taxes why should apple not pay taxes why would amazon get tax credits and then you're sitting there because you're talented you're paying the full load of almost everybody in this united states of america hope this finds you well if you like this video let me know if you find something wrong with it hey post below don't just hate on me man at least post a comment and if you like the channel please do what you know you need to do okay tax write-up tax write-off entire facility tax write-off okay tax write-off not actually because if i buy that i can't write it off it's called an entertainment facility but if i rent it i can write it off okay hope this finds you well good luck get that thing down to zero [Music] you

Channel: Grant Cardone

Views: 2,804,674

Keywords: grantcardone, grant cardone, 10x, money, finance, business, sales, motivation, yt:cc=on, WeAre10X, 10XNation, 10XStrong, 10XLife, 10XEverything, rapper, ball player, artist, high income earner, how to the rich get richer, rich, wealth, investing, financial freedom, viral

Id: _9ehONOxy5o

Length: 13min 36sec (816 seconds)

Published: Tue Aug 24 2021