How To Avoid Paying Taxes in 2022... Legally (DO THIS NOW)

i have 10 tips that may help you avoid paying taxes because for most people paying taxes is so annoying so frustrating so dragging so okay sean we get it so today i want to talk about how you can avoid paying taxes and i have 10 legit and legal ways to help you do so stay tuned [Music] hey there welcome back to the channel you look awesome by the way if you're new here i'm sean with life accounting the accounting company that saves people from high taxes and low profits so this is a really important video because it's not just about avoiding paying taxes it's about developing a new mindset that will allow you to build long-term wealth so let's get into it now in 2021 you start paying taxes the second that you make over 9875 dollars a year as an individual and of course that is not enough money to be able to take care of yourself i mean most people make more than that with their unemployment benefits they received in 2020. hey sean look i can make money doing nothing but even at that level taxes aren't really a big deal you usually don't start feeling the impact of taxes on your income until you start hitting about the 22 tax bracket or higher than that so let's go ahead and talk about how you can keep more of your money all right the tax system can be simplified like this the more income you make the more taxes you pay so if you want to avoid paying taxes then you usually have to figure out a way to reduce of course your taxable income and you want to do this in a way where of course you don't go broke but you delay your income for later okay and if you're thinking that man there's no way that i can delay my income i need every single dollar that i can get right now and make sure you watch this video until the end because i have a really really great tip just for you all right now right before we get into these 10 tips i need to mention that this is not financial advice and i'll be making a few disclaimers throughout the video so that you can try to apply these tips in a way that may work for you but of course all these tips will not work for everyone all right let's go ahead and get started with tip number one become a business savant it's no secret that businesses have the most leverage when it comes to tax write-offs or deductions or tax credits some of the richest people in the world are business savants it's like if they like the golf then they go out and they buy the golf club if they like the vacation then they go out and they buy the resort hey sean look i just bought youtube [Music] now of course that's an extreme example and that's just a joke but what i want you to think about is what are some of the things that you need and you want and how could you tie that into a business now i know there are some people who are simply not into being in business for themselves or being an entrepreneur but i still want to encourage you to take a look into your passions your skills and what you currently do right now to make an income and see if you can mesh that into starting your own type of business because that will allow you to take advantage of some massive business deductions and you have to start a business if you want to join that party as one of my favorite rappers drake once said everything a brother purchased is a write-off tip number two become an investor the golden rule when it comes to avoiding taxes is to delay as much income as possible and what you'll find is that most wealthy people don't take cash unless they absolutely need it so if you started business and it's growing you're generating a lot of revenue sure you can go out and you can pay yourself a healthy salary or a lot of money but guess what you're also going to pay a lot of taxes but here's a big tip and what the wealthy do okay reinvested profits are not tax for example let's say that you make 100 000 profit at the end of the year and then you decide to reinvest 100 000 by buying equipment or getting a property whether it's for your retail or office space or maybe you just want to do a really big advertising campaign well just by investing at a hundred thousand dollars you just skipped out on a big tax bill and at the same time you're making an investment that may bring in more cash flow more money in the next year now of course everyone's salary requirements are different so i would encourage you just to simply think about this the next time that you're thinking about your pay or your budgeting for your business to definitely consider the tax outcomes because that can have nearly a 50 swing depending on your income levels now i'm curious after going over those first two steps are you a current business owner or investor of any kind if so tell us in the comments section below alright moving on to tip number three move somewhere else did you know that some countries have zero income taxes like if you move to a place like dubai or bahamas as your primary residence then you don't have to pay any taxes hey sean look i'm out of here not into changing your citizenship where there are some states that give you great tax benefits as well for example in puerto rico you literally don't have to pay any federal income taxes and there are a lot of rich people who have moved to puerto rico to avoid taxes for this very reason as well as a lot of youtubers who are considering moving out there as well and there are other states right here in the u.s that have no state income taxes such as florida and texas just to name a couple which is probably why you've seen a lot of people moving from california to texas tip number four make charitable donations so money that is donated to a charity is not taxable this is usually why you see very wealthy people donating a lot of their earned money to their own foundation or someone's foundation that is close to them and at the same time if you're a celebrity or a public figure or something like that it just gives you a huge pr boost because most people don't think about the tax benefits that celebrities or popular people get from making donations they just think about how nice and how honorable and how awesome that particular celebrity is because they must care so much about the community now the cool thing about having your own charity is that these foundations the 501 c3 have deductible expenses as well things that they need to operate as a charity so you can go out and donate land you can donate vehicles or other assets to a charity that you own and it counts as a charitable contribution and at the same time if you also manage that charity then you can still use the same things that you donated on paper such as a car tip number five max out your retirement accounts whether you are self-employed or not putting your money into a retirement account like a roth ira or a 4010k shields your money against taxes the most common reasons why people overlook retirement accounts is one they have certain contribution limitations so it's a slow and steady process and number two you can't withdraw your money without paying penalties and taxes until you finally reach retirement age which if you're young that may not be an attractive option for you however this still shouldn't be overlooked because with every little step every little investment and contribution that you make it goes a long way in shielding you against taxes now sherman has done some great videos on iras and 401ks so if you want to learn more about that the specific in and outs the pros and the cons then i'll make sure i'll link those videos in the description below and somewhere above in this video tip number six take equity instead of payments as beyonce once said pay me in equity why well of course equity and ownership can be worth more in the long term if the investment that you're you're making appreciates and then two of course as we mentioned and as a common theme throughout this video instead of taking a salary or cash payments right now they can delay their income and avoid taxes and keep more of their wealth so think about how you can apply this right like if you're in a position where you're working and you don't need cash for bills or a specific lifestyle then maybe consider taking equity or investing in something instead so you can avoid taxes all right tip number seven make passive income acquiring hard assets and this is part one so if you're watching this video so far and you've been thinking man i can't delay my income or i don't have the money or opportunities to use some of these tips so far then this tip is especially important for you so let's be honest avoiding paying taxes is sometimes a luxury for the rich and the wealthy because they have everything they need right now right they might already have their house paid off or their car paid off but beyond that most of the time the biggest thing the rich and wealthy have is passive income or what some people will call mailbox money and that is money that comes to them every month without them actively working right so the question for you is how do you get passive income well you're going to want to acquire some assets now listen even if you're not able to avoid taxes today or in 2022 or even 2025 you can start right now acquiring assets that will get you passive income and eventually you'll be able to avoid paying taxes because of the next tip but before i move on to that next step which is tip number eight would you please please please hit that like button for the youtube algorithm it really helps our channel to grow and helps us get more awareness overall and we really appreciate everyone who does that all right tip number eight take passive losses acquiring hard assets part two so usually when you acquire a hard asset like a piece of real estate for example or a car or a business equipment those things depreciate in value year after year after year and because of that you can take depreciation which could actually give you a passive loss so for example let's say you make 100 in passive income but you have 150 in depreciation then your tax report technically would show you at a loss this is one reason why people love investing in real estate even sometimes moreover than stock investing the important thing to note here is that you can only write off passive income with passive losses okay so you can't write off active income where you're making money with a job or something like that against your passive losses okay so that's a very very key thing to remember and something you want to keep in mind when you're trying to figure out how to get more passive income all right tip number nine take loans instead of cash the recurring theme throughout this video is that you want to delay your income especially if you don't need it all right this is why the wealthy people own a lot of assets but are technically cash poor hey sean look i don't have any fancy clothes but look at all the buildings i own all right but what happens when you actually need cash like something comes up and you need cash right now well of course you can start selling off some of your stocks or selling your buildings or some of the other assets that you own but as soon as you sell the moment you cash out you are going to pay taxes which would be taking a huge step backwards when it comes to trying to avoid paying taxes in the first place so instead consider taking out a loan against your assets that you already have and because the loan is not income you won't be taxed in fact you're likely going to get a tax deduction on interest payments as long as that loan is through a business now this is why the wealthy people have such strong relationships with banks that last a lifetime all right tip number 10 acquire art here's something that i'm willing to bet that 99 of people don't know the art trade is the last major unregulated market in the world so when you buy art it can be used as a tax write-off but that's not where it stops that's just the opening move like in a game of chess here's your example of what you could do let's say for example you earn 500 000 and you decide to buy a 500 000 classic one-of-a-kind painting since the tax write-off matches the income there is zero income to be taxed and then let's say two years go by and that same painting that you bought is not worth one million dollars well instead of selling it for a profit because remember the moment you sell there will be taxes what you can do is donate it to an art charity that maybe you personally own and manage and that would mean that you just saved yourself thousand dollars in non-taxable income and guys this is all legal you could even take it a step further and instead of selling the art you could do something like a 1031 exchange where you trade in that one million dollar piece of art and go up to buying a maybe 1.2 million dollar piece of art and that is a massive tax strategy and a big reason why people subscribe to our channel because of information like this that is so powerful that will save you millions of dollars throughout your lifetime all right so there you have it 10 powerful tips that can help you avoid paying taxes in 2022 i want to end this video with this if you didn't get everything all at once that's okay as albert einstein once said the hardest thing in the world to understand is income tax so feel free to go back and listen to this video take notes and figure it all out well that's it for now we have two more videos coming up next that you definitely don't want to miss if you haven't seen it already and we'll see you over there

Channel: LYFE Accounting

Views: 50,002

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Id: qrMPvS2BYk4

Length: 14min 58sec (898 seconds)

Published: Mon Jun 07 2021