I think it's important to stick to stocks that are immune to economic policies. AI stocks that have the potential to power and transform future technologies. It seems AI is the trajectory most companies are taking, including even established FAANG companies. Maybe there are other recommendations?
I bought into NVIDIA around September last year because my financial advisor recommended it to me. She said the company is selling shovels in a gold rush. It accounted for almost 80% of my market return this year.
@@KarenDuncan-o5s That's a great analogy and I love the insight. Professionals could make a really big difference in investing, and I think everyone should have one. There are aspects of market trends that are difficult for the untrained eyes to see.
@@HopesKruses The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
@@IngoKociper Thank you for this tip. It was easy to find your coach's webpage by looking up her name online, She seems proficient considering her resume.
As a single-member LLC (Limited Liability Company), you can use business expenses and losses from your LLC to offset other income on your personal tax return, including W-2 income from an unrelated job.
Yes, if you own an LLC and a C corporation. Your LLC can pay $2,000 a month to your C corporation for Research & Development, or Real Estate speculation to look for an investment property. The expense can be a non-tangable service of any amount of money. Company A can pay company B for "consulting services" for advisement on business decisions. If company A is an LLC formed with only you as the owner, it's expenses are a tax deduction on your W2 or 1099. The expenses can be created as debt, meaning contractually without having being paid with cash. Like, I signed a contract for work and they performed that, now I owe them money for this fiscal year. An expense was created through a contract.
I'm looking into this and why I'm here. It'll be a small home business that I am doing on the side when I'm not working for the man, myself. If there is any tips you have I'm new and just grasping the dynamics and processes. God bless you all and thanks.
@sethstatler8480 If you want an accountant to confirm this you have to ask in the context of one business having legitimate expenses in the form of debt as a tax deduction. Ask if it is deducted the year the expense is made or the year it is paid. As far as the government is concerned a C corporation is completely seperate from you. You can only be a shareholder or an executive but you are never the business.
another word for "loophole" is "the law"... If you don't like the law, work to change it. Otherwise, there is nothing wrong with following the letter of the law to limit your tax burden.
You can start an LLC for a hobby and right off office space in your home, write off your fuel expenses, your mileage on your vehicle, etc etc. It will save you money in taxes if you are a W2 employee having a side hustle LLC
People complain that the rich and the corporations don't pay enough tax, yet 47% of the ordinary people pay no tax. The sweet spot is to have no wages, and to live off qualified dividends and capital gains. Many people pay too much all year, make an interest free loan to the IRS, get a refund and feel rich for two days.
Using capital is an idiotic move unless your using it to gain further capital. Pay your taxes, get a good tax accountant they have legal loopholes, you still pay taxes (you need them so you can fix streets, lights etc. unless your town starts doing it themselves) you can use family to avoid taxes, giving them incomes growing generational wealth and helping your children/siblings. Granted the American tax system is wild, I get taxed a minuscule amount more and live in a big city, we barely have any homeless people around, the streets are clean, I can visit hospitals and doctors without being charged, so I’d probably avoid tax like the plague in the US where ever I could too!
if you break down that 47% a lot of them are children a lot of them are elderly and a lot are them disabled so of course they're not paying taxes but 58 % of the u.s. population works so that means most people pay taxes
@johnSmith-uz8nlThe top 1% pays most of the taxes. Even if they are taxed at the same rate for the same kinds of income, productivity massively rises disproportionately as intelligence rises. So far from not building that, the intelligent, which is highly correlated with earnings, build productive structures the poor are simply incapable of
@johnSmith-uz8nl That's the point. What is their fair share especially since they are far more productive than lower income workers and what they do with their money has more of an impact on growing the economy? And who watches the watchers? The options aren't they hoard all their money like Scrooge McDuck/use it for evil or it all goes to the infinitely benevolent government who use it for the maximum good. What happens is as it goes to the government and then to useless programs or to cronyist ngos or development companies, it gets eaten up. And even when it's intended to grow the economy, the economic multiplier on government money is less than 1 ie for every one dollar in, it returns less than a dollar in the economy. Ps: I have no love to many of these billionaires and am not averse to punitive measures for the ones who do bad, and they engage in the rent-seeking political class too. It's just a pragmatic issue. If a greater proportion of the money into state coffers actually did some good, fine
His cars are owned by an LLC because it's a write-off. I love Dave, but I wish it would be a little more honest about some of the things he uses to lower his own taxable income.
LLCs for real estate are for limiting your personal liability and keeping your assets separate from each other. So if you own two rental properties, they need to each be in their own LLC. If someone who lives in one wants to take you to court then they have nothing to do with the other property. They also can’t go after your personal assets I believe. There are also ways to remain anonymous who owns them. So if for example you have to evict someone and her boyfriend who is living with her but not on the lease is a dangerous felon, they can’t find out who owns the property and where you live to stalk you, your family, and possibly hurt you. I’m not a lawyer or cpa but that’s what I understand.
It's called inside liability and outside liability. Depending on the state you are incorporated, you have different levels of both. Outside liability meaning you get in a car accident and someone sues you.....They (again depending where you are) can sue you and take your LLC shares. Inside liability is the opposite and is effective in every state.
Speak with employer about getting paid as a 1099 instead of a w2. File as a LLC or s corp. take business write offs etc. downside is you would need to provide your own benefits.
I mean Dave says basically the same thing over and over. Sure you get the occasional odd case like here where you might not know what he will say, I’m not business savvy so I dont know much about taxes and what have you.
What Ramsey forgot to mention here is Warren Buffet takes out loans against his investments (which anyone of us can also do legally), and because debt isn't income, he's able to use that money tax free. Many of the world's wealthiest do this to avoid taxes and every single one of you can do the same, its just not recommended if you want to stay out of debt.
what?YOU still get to depreciate them and for 20 years defer youtr taxes,,as a matter of fact,YOU MUST deprciate the house!s SINCE you will get taxed on the complete amount of tthe sale when it sells,if youve owned it 20 years!
@@metalrooves3651 that has nothing to do with paying cash for rentals. You can depreciate if you finance them as well, and then you can deduct the mortgage interest. You can't deduct it if you don't pay it though! Get a clue, then get a life.
While it's true you would have to pay taxes, even within an LLC, owning the rental property gives you depreciation allowances that you would not get otherwise. I'm guessing that is the question the caller was asking about and what Dave did not address.
While I agree with some of the commenters on here that just because something is law, doesn't make it fair, I find it perverse to talk about how much someone ELSE should be paying in taxes. In terms of the 14th Amendment to the United States Constitution, I think the equal protections of the laws should mean that we have a Flat Tax system where everyone pays the same rate. Yes, this means that even people on welfare should pay some of their income. Maybe that would keep people from advocating that the rate be high.
Iowa just went to a flat tax system. Even if everyone pays the same rate, the upper class will pay more and the lower class will pay less. Nothing wrong with that.
In lawsuits, 1) it has to be illegal 2) police investigate things 3) it is approved by the courts 4) they calculate "proof of loss" 5) you usually just get your money back and fine them for their behaviors 6) it is always class action
Honestly, this situation makes me uneasy, especially with the economic uncertainty. I’m not sure how to approach my $130K investment strategy, particularly when it comes to generating passive income from stocks. With the potential downturn, I’m concerned about whether this is the right time to rely on dividend stocks or other passive income streams.
I agree. Even with great opportunities, we should proceed cautiously. Seeking market analysis or advice from certified market strategists is important.
Absolutely, having a solid plan is crucial. My portfolio has doubled since early last year. My financial advisor and I are working towards a seven-figure goal, though it might take until Q3 2024.
It makes me absolutely sick. Theres so many people out there that would bump into dave and dial a lawyer immediately. Even though there's literally no actual reason to. Why? Because its conditional. Give you a few bucks, they will do it to you. And the only person coming out of that situation actually with money is the lawyer. It won't be either of you. Also.. to back up dave. Theres tax dodgers at every income level 75-85% of the taxes... are paid by the rich. Depends on where you draw the line and what the tax codes are like. Your contribution is insignificant. You can verify that number yourself its public info.
I set up my LLC this year and have been tracking all my expenses for my delivery services lol with my W2 job . I am hoping i can write offf everything lol 😂. As long as I can lower my taxable my personal income and pay back less the. Last year I’ll be happy to irs I am happy ;)
Thanks for the analysis! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
Appreciate the detailed breakdown! 🧐 Need some advice: 🙏 I found these words 😅. (behave today finger ski upon boy assault summer exhaust beauty stereo over). What should I do with this? 🤷♂️
Overall excellent but I think it would’ve been worthwhile to add that the tax benefits of real estate are generally deferred. For example - Loss are generally not deductible less you have other passive losses or until disposition.
If it's in the code then that means if you start a business or go out an buy a property you get that advantage no matter your age race color or gender. If you choose to work for someone you don't have the hassle.
Notice its been 4 weeks and no one has said how? An LLC doesn't do much for taxes. It does allow some minor benefits when saving for retirement and helps keep business deductions easier to manage.
all it does is reduce 15.5%taxes on the "dividend" you collect, after you pay yourself 40k a year with a real payroll!SO IF you make 50k over your w2 income,you get a tax break of 15.5% on that fifty..AND THIS IS ONLY IF YOU HAVE AN LLC ,USING "S" CORPORATION TAXES! YOUR social security benifit will be less someday !@@jamisonmunn9215
The answer that this guy needed is that losses from rental activity (e.g., due to depreciation) cannot lower his taxable income because of the passive activity loss rules.
This callers biggest mistake was paying off their home. It is one of the last write offs left. In my opinion they should take out a home equity loan. I know a couple that paid their house off and was preparing to retire. They did not need the money but took out a home equity loan for this reason. The women then invested the 100K into her 401K. She worked for a utility company which matched her investment 100% so she ended up with an additional 200K in her 401K. She then gave notice of her retirement. As the commenter below stated, it does not seem that Dave gives all of the best advice. It is incorrect that one should pay off their home. I have a friend in California and she and her husband were preparing for retirement. They paid off everything. And then got slammed with taxes the next year and had no write offs. They should not have paid off their home.
Why would you pay cash for the rental with money you already paid tax on so you could draw down the rent payments only to pay tax+SS once again? I’d get a loan on the property and apply the rent income to pay off the mortgage + depreciation.
AND pay crazy interest JUST SO YOU CAN TAKE IT AS A DEDUCTION? GOOD please send me 500 bux every month for "advice" then you can take it off your taxes and save 27% of WHAT YOU GAVE ME!
i rent a property and i wanted to renew the lease in my LLC name. my landlord said that it wasnt zoned for business and he said if i do this i could raise flags with the irs. is that true? is what im wanting to do is illegal? i have a consulting business by the way
Revocation of election. Formally withdraw from the income tax system which is voluntary to be a part of. Forego collecting future Social Security and enjoy your freedom.
If I am netting more than 40-50k a year as a company, becoming a S-corp would be something I would look into. Not saying you should. It's what I would do. That will save you tax money. Also paying cash for a rental is a TERRIBLE idea in my opinion. You put yourself in immediate debt. Not the good kind either. It will take you years maybe decades to recoup a 200k investment in cash just to break even through rental income and equity. That is just bad business advice. If you're flipping a home, cash is ideal. Not for rental.
dave seems a bit naive and out of touch at the end. you cant have it both ways. either the rich are paying their fair share and the tax code is fine or the rich arent paying their fair share and the tax code needs to be rewritten. he likes to talk about big pharma but yet dismisses big accounting who helped write the tax code with "loopholes" that benefit the rich. so thats what me mean by the rich not paying their fair share. legal yes, but its still a loophole done by lobbying. like donating to their own "charity" to get tax write off when in reality they are just transferring money from one business to another lol. like i know ppl who eat out at fancy restaurants and use that as a tax write off business expense lol. you are encouraged to spend more.
@@saulgoodman2018 did you even read my post? i wasnt even talking about capital gains. plus one could argue that capital gains tax should be raised or should be the same rate as regular income. a lot of ppl are in favor of that
@Local Council Jobsworth no fair share is everyone paying what they are expected to pay. I dont take anyone srsly when they say taxation is theft. Yet you are freeloading on the roads, the schools, the hospitals, the police, military, legal system, judicial system, etc. your either really young, really naive or really sheltered or really ignorant. So which is it?
Dave fan also, but he started out by going into massive debt like a fat man at a buffet., then started telling people not do what he did and made $$$. I am somewhere between him and rich dad poor dad author. There is good debt and bad debt. No debt is definitely less stress, also less money.
Really debating about saving up and buying a home in cash. Not having a mortgage payment will save me about 2k a month and I'll only have the forever bills of utilities, insurance and property taxes. Probably won't have a home until my 40s, but the though of giving the bank thousands each month makes my stomach drop.
just don't put the savings into cash. invest them in mutual funds as you go otherwise inflation will kill your savings and good luck ever getting into a home
By the time you save up for that $300k house, the house will be $600k. Just buy it now and pay off the mortgage asap. You have to live somewhere so mortgage is the same as rent.
you are right!!this is the only time in HISTORY that you cant save fast enough o stay ahead of inflation !!!ITS SAD THAT DEFICIT SPENDING HAS RUINED THE NEXT GENERATION .Even if you save 1000 a month ,things will go up faster on a a 200k home than that money you are saving can buy!!!! @@ultimaetsolder
What a bizarre argument about Warren Buffet. I am sure his secretary would love to hear that Buffet pays way more taxes than her in absolute terms. Like...obviously. How that makes it ok for her marginal rate to be higher than his totally escaped me.
if im understanding what you said correctly your basically saying its unfair she gets taxed more then he does in a percentage standpoint? thats absolutely fair because she gets taxed the same percent as he does on capital gains he doesnt get anything she doesnt get he just knows how to handle money thats why hes warren buffet cry about it
@@philshoreman9489 EXACLY AND HE IS GIVING ALL HIS MONEY TO CHARITY AND HE HAS ALREADY GIVEN OVER 56 BILLION- i would rather let him not pay taxes, keep increasing his wealth, and give it all away when he dies, would you rather have BUFFETT with the money- guy who lives in same house 60 years- or the GOVERNMENT- ID GO WITH BUFFETT - the government GIVES YOU TONS OF TAX CREDITS- you just have to take advantage of them- ITS NOT AGAINST LAW TAKE TAX ADVANTAGES
@@owlegrad BECAUSE EARNED INCOME IS TAX THE HIGHEST= If you have a regular job working for someone, you pay the most taxes. Now if you employee people, give people housing, give , have passive income, have capitol gains, keep your money invested you have much LOWER TAX BRACKET- EARNED INCOME IS THE WORST WHEN COMES TO TAXES- ALL KINDS WAYS GOVERNMENT GIVES YOU TAX BREAKS- IF YOU own real estate- sell it make an amazing profit and use that money to buy more real estate they dont charge you taxes up front- and you can keep the cycle going
I feel zero sympathy for those who paid off their house and are unable to use those payments as deductions anymore. MOST of us will never have enough to even put a foot in the door to own a home.
Live with family for 2-3 years outside of highschool and save every penny you make, move to any midwestern state, put 10-25k down and boom you have a house. Stop making excuses
@@stephenasmith273 Yeah I'd rather not put myself 1mil in debt to live in a 350k minimum shithole with 10-25k down... The tenure interest is ridiculous. Are you aware of that?
Dave doesn't give the piece of advice the caller was looking for, expensing your costs. So Dave is wrong, once you expense the costs against the LLC you will come out ahead under the IRS rules.
I save all kinds of taxes owning rental's through my LLC- depends on your current earned income but if you make under 130K you can write of so much - and you're LLC you can use to write off all kinds of stuff -cell, utilities, car payments, etc...
Bro I just opened an LLC and think about buying a truck to haul my jet skis that I will be renting out to people. I also am a w2 employee. how can I save a lot on taxes like urself since u also own rentals through ur llc.
@@amritgill4777 Pretty much everything related to your car, anything related to taking care of your passengers, and business cards. Just to name a few off of the top of my head.
@@TheFlyingZulu you just have to watch it regarding how many years in a row you show a loss, or else IRS will eventually decide you aren't trying to run a profitable business and will no longer let you write off losses against other income.
also note i have time travel device or time machine my false brother gave it to me for my 35 Birthday maybe it will blow my face off lets ask a real investigater whom is willing to do all things properly
I want to be a carpenter contractor with an llc. What are the specific names of the three bank accounts I need to have as a carpenter contractor doing Home Remodeling?
WELL theres been a few NUTJOBS TRY IT!!! there will be no success in your endeavor to screw with this basic govt need!!its a waste of energy to even write this text here,and a waste of my energy answering it!
It’s fair says the guys exploiting all those loopholes. Lol. If it was fair, then they would pay their income tax. 15% of his billion feels less of a dent then her 29% of even het above average wage
Stop paying taxes! The only law specifying a liability for the federal income tax is found at section 1461 of the Internal Revenue Code. whereby every person required to deduct and withhold any tax under Chapter 3 of the Internal Revenue Code is made liable for such withheld tax. And from whom must such a tax be withheld? Such a tax must be withheld from nonresident aliens [section 1441], foreign corporations [section 1442], foreign tax-exempt organizations [section 1443], Virgin Islands Source income [section 1444], dispositions of United States real property interests nonresident aliens [section 1445] and foreign partners' share of effectively connected income [section 1446].
I set up my LLC this year and have been tracking all my expenses for my delivery services lol with my W2 job . I am hoping i can write offf everything lol 😂
@@realiangarcia you can write off expenses on the busniess and with the loss you can report it in your income tax and lower taxable income on your personal income tax return
Dave: Poor people pay a much higher tax rate than the rich and that's completely fair because it's the tax code. Lol. Nah bro that's called a regressive tax system it's objectively not fair. Saying something "is the law" therefore it's fair is incredibly ignorant 14 year kid logic. Too bad you can't buy critical reasoning skills
Capital gains are taxed at a lower rate because the money used to invest was already taxed when it was earned as income, we want to encourage investment, and investing is inherently risky so they’re making an accommodation for that-you may lose all the money.
it's crazy how the hella rich and super rich people like don't like to pay taxes like you literally have all the money get off the gas that means the money that they actually earned started making it own money so yes that money should be taxed at a higher rate because that money isn't earned
Well their tax bill tends to be really large. My best earning year resulted in paying $23K in income taxes and boy, that stung. That doesn't count SS/Medicare and sales taxes.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@SammyIglesias4665 However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
Try closer to 50% tax rate. You’d be crying too I don’t care how much money you make. Kanye “On God” song …. “The IRS want they fifty plus our tithe. Man, that's over half of the pie.”
I think it's important to stick to stocks that are immune to economic policies. AI stocks that have the potential to power and transform future technologies. It seems AI is the trajectory most companies are taking, including even established FAANG companies. Maybe there are other recommendations?
I bought into NVIDIA around September last year because my financial advisor recommended it to me. She said the company is selling shovels in a gold rush. It accounted for almost 80% of my market return this year.
@@KarenDuncan-o5s That's a great analogy and I love the insight. Professionals could make a really big difference in investing, and I think everyone should have one. There are aspects of market trends that are difficult for the untrained eyes to see.
@@IngoKociper This sounds considerable! Do you know any advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
@@HopesKruses The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
@@IngoKociper Thank you for this tip. It was easy to find your coach's webpage by looking up her name online, She seems proficient considering her resume.
As a single-member LLC (Limited Liability Company), you can use business expenses and losses from your LLC to offset other income on your personal tax return, including W-2 income from an unrelated job.
yo what does this mean
Can you give examples?
Yes, if you own an LLC and a C corporation. Your LLC can pay $2,000 a month to your C corporation for Research & Development, or Real Estate speculation to look for an investment property. The expense can be a non-tangable service of any amount of money. Company A can pay company B for "consulting services" for advisement on business decisions. If company A is an LLC formed with only you as the owner, it's expenses are a tax deduction on your W2 or 1099. The expenses can be created as debt, meaning contractually without having being paid with cash. Like, I signed a contract for work and they performed that, now I owe them money for this fiscal year. An expense was created through a contract.
I'm looking into this and why I'm here.
It'll be a small home business that I am doing on the side when I'm not working for the man, myself.
If there is any tips you have I'm new and just grasping the dynamics and processes.
God bless you all and thanks.
@sethstatler8480 If you want an accountant to confirm this you have to ask in the context of one business having legitimate expenses in the form of debt as a tax deduction. Ask if it is deducted the year the expense is made or the year it is paid. As far as the government is concerned a C corporation is completely seperate from you. You can only be a shareholder or an executive but you are never the business.
I’ve noticed Dave dosent share tax loopholes that I’m sure he uses.
He should
What loopholes?
another word for "loophole" is "the law"... If you don't like the law, work to change it. Otherwise, there is nothing wrong with following the letter of the law to limit your tax burden.
@@Paul-jp8zz They only like the law when it favors them.
Why would he share what only helps a handful of people?
The purpose of his program is to help people get debt free, which takes a lot of hard work.
You can start an LLC for a hobby and right off office space in your home, write off your fuel expenses, your mileage on your vehicle, etc etc. It will save you money in taxes if you are a W2 employee having a side hustle LLC
People complain that the rich and the corporations don't pay enough tax, yet 47% of the ordinary people pay no tax. The sweet spot is to have no wages, and to live off qualified dividends and capital gains. Many people pay too much all year, make an interest free loan to the IRS, get a refund and feel rich for two days.
Using capital is an idiotic move unless your using it to gain further capital.
Pay your taxes, get a good tax accountant they have legal loopholes, you still pay taxes (you need them so you can fix streets, lights etc. unless your town starts doing it themselves) you can use family to avoid taxes, giving them incomes growing generational wealth and helping your children/siblings.
Granted the American tax system is wild, I get taxed a minuscule amount more and live in a big city, we barely have any homeless people around, the streets are clean, I can visit hospitals and doctors without being charged, so I’d probably avoid tax like the plague in the US where ever I could too!
if you break down that 47% a lot of them are children a lot of them are elderly and a lot are them disabled so of course they're not paying taxes but 58 % of the u.s. population works so that means most people pay taxes
@john Smith 15% of $100 is not 10 cents, that's $15 sweety. This is why you're poor.
@johnSmith-uz8nlThe top 1% pays most of the taxes. Even if they are taxed at the same rate for the same kinds of income, productivity massively rises disproportionately as intelligence rises. So far from not building that, the intelligent, which is highly correlated with earnings, build productive structures the poor are simply incapable of
@johnSmith-uz8nl That's the point. What is their fair share especially since they are far more productive than lower income workers and what they do with their money has more of an impact on growing the economy? And who watches the watchers? The options aren't they hoard all their money like Scrooge McDuck/use it for evil or it all goes to the infinitely benevolent government who use it for the maximum good. What happens is as it goes to the government and then to useless programs or to cronyist ngos or development companies, it gets eaten up. And even when it's intended to grow the economy, the economic multiplier on government money is less than 1 ie for every one dollar in, it returns less than a dollar in the economy.
Ps: I have no love to many of these billionaires and am not averse to punitive measures for the ones who do bad, and they engage in the rent-seeking political class too. It's just a pragmatic issue. If a greater proportion of the money into state coffers actually did some good, fine
Dave Ramsey is an absolute jergoff
Papa drops a sweet "vee-hickle" @1:16
I know, right? I've lived in the south my whole life and that pronunciation still amuses me.
His cars are owned by an LLC because it's a write-off. I love Dave, but I wish it would be a little more honest about some of the things he uses to lower his own taxable income.
Everybody lowers their taxable income when doing taxes, that’s the whole point. You don’t need an LLC to write off a vehicle on taxes.
Warren Buffett does have earned income but its capped at 200k per year or so.
LLCs for real estate are for limiting your personal liability and keeping your assets separate from each other. So if you own two rental properties, they need to each be in their own LLC. If someone who lives in one wants to take you to court then they have nothing to do with the other property. They also can’t go after your personal assets I believe. There are also ways to remain anonymous who owns them. So if for example you have to evict someone and her boyfriend who is living with her but not on the lease is a dangerous felon, they can’t find out who owns the property and where you live to stalk you, your family, and possibly hurt you. I’m not a lawyer or cpa but that’s what I understand.
It's called inside liability and outside liability. Depending on the state you are incorporated, you have different levels of both. Outside liability meaning you get in a car accident and someone sues you.....They (again depending where you are) can sue you and take your LLC shares. Inside liability is the opposite and is effective in every state.
Speak with employer about getting paid as a 1099 instead of a w2. File as a LLC or s corp. take business write offs etc. downside is you would need to provide your own benefits.
Thanks for the new video! I’m looking forward to seeing what other content you post. Always good to learn as much as possible!
The tax comments/jokes on this channel are at another level 😂.
Before watching this I tried to guess what Dave would say. I got it correct lol I think I've matured in my financial journey. 😌
Me too
I mean Dave says basically the same thing over and over.
Sure you get the occasional odd case like here where you might not know what he will say, I’m not business savvy so I dont know much about taxes and what have you.
What Ramsey forgot to mention here is Warren Buffet takes out loans against his investments (which anyone of us can also do legally), and because debt isn't income, he's able to use that money tax free. Many of the world's wealthiest do this to avoid taxes and every single one of you can do the same, its just not recommended if you want to stay out of debt.
What hurts you on taxes and doesn't make economic sense?
- paying cash for rentals, obviously
what?YOU still get to depreciate them and for 20 years defer youtr taxes,,as a matter of fact,YOU MUST deprciate the house!s SINCE you will get taxed on the complete amount of tthe sale when it sells,if youve owned it 20 years!
Woah absolute jewelssssss
@@metalrooves3651 that has nothing to do with paying cash for rentals. You can depreciate if you finance them as well, and then you can deduct the mortgage interest. You can't deduct it if you don't pay it though! Get a clue, then get a life.
You have to learn how to offset taxes. Legally. U have alot of options. You have to move your money around...
The IRS doesn’t care about LLC’s of an individual. You still have to pay taxes, and theyre still high lol.
While it's true you would have to pay taxes, even within an LLC, owning the rental property gives you depreciation allowances that you would not get otherwise. I'm guessing that is the question the caller was asking about and what Dave did not address.
the point is that Buffet pays a lower tax percentage rate than his secretary and that isn't fair.
Makes me so mad that we didn’t learn taxes in sxhool
While I agree with some of the commenters on here that just because something is law, doesn't make it fair, I find it perverse to talk about how much someone ELSE should be paying in taxes. In terms of the 14th Amendment to the United States Constitution, I think the equal protections of the laws should mean that we have a Flat Tax system where everyone pays the same rate. Yes, this means that even people on welfare should pay some of their income. Maybe that would keep people from advocating that the rate be high.
Iowa just went to a flat tax system. Even if everyone pays the same rate, the upper class will pay more and the lower class will pay less. Nothing wrong with that.
@@jimroscoviuslol talk about overgeneralizing. poors never pay taxes. single moms are actually a net negative on the economy
I agree, but the bleeding heart Biden-lovers don't see it that way.
In lawsuits, 1) it has to be illegal 2) police investigate things 3) it is approved by the courts 4) they calculate "proof of loss" 5) you usually just get your money back and fine them for their behaviors 6) it is always class action
Honestly, this situation makes me uneasy, especially with the economic uncertainty. I’m not sure how to approach my $130K investment strategy, particularly when it comes to generating passive income from stocks. With the potential downturn, I’m concerned about whether this is the right time to rely on dividend stocks or other passive income streams.
I agree. Even with great opportunities, we should proceed cautiously. Seeking market analysis or advice from certified market strategists is important.
Absolutely, having a solid plan is crucial. My portfolio has doubled since early last year. My financial advisor and I are working towards a seven-figure goal, though it might take until Q3 2024.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve my financial goals.
Her name is “Kenia Giordani Borges”. Just look her up, and you'll find the details to set up an appointment.
Thanks for sharing. I searched for her name and found her website. I reviewed her credentials and did my research before contacting her. Thanks again.
It makes me absolutely sick. Theres so many people out there that would bump into dave and dial a lawyer immediately. Even though there's literally no actual reason to. Why? Because its conditional. Give you a few bucks, they will do it to you. And the only person coming out of that situation actually with money is the lawyer. It won't be either of you.
Also.. to back up dave. Theres tax dodgers at every income level 75-85% of the taxes... are paid by the rich. Depends on where you draw the line and what the tax codes are like. Your contribution is insignificant. You can verify that number yourself its public info.
People say they want to be brief but draw out a whole conversation before even getting to the point 😂
You can claim all your losses if the rental under LLC but you can’t if it under your name. Specially if you make to much money from w2
I used Asset Protection Planners to set up my LLC and asset protection plan. Attorneys on their staff. Quite helpful.
They are expensive though
are they good? I'm thinking of using them.
Income vs wage. There's a difference. Deception is real. So easy to fool the sheeple.
Yep, and there are a lot of fools in the comment section.
I set up my LLC this year and have been tracking all my expenses for my delivery services lol with my W2 job . I am hoping i can write offf everything lol 😂. As long as I can lower my taxable my personal income and pay back less the. Last year I’ll be happy to irs I am happy ;)
mixing w2 income and some self employed shit if its not real will get an audit.
NOT UNLESS YOURE IN BUSINESS!
AND THEY WILL REALIZE HES NOT IN BUSINESS!
Warren Buffett investments pay corporate income taxes in addition to any capital gains tax the shareholders pay
Thanks for the analysis! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
Dave is a smart man 😂 that’s why I love him
What makes him smart?
@@LittleMopeHead Education and experience.
@@MikeThePike316 Ok, I thought it was something specific in the video.
hes smart but dont take his advice on inheritance!
Appreciate the detailed breakdown! 🧐 Need some advice: 🙏 I found these words 😅. (behave today finger ski upon boy assault summer exhaust beauty stereo over). What should I do with this? 🤷♂️
Overall excellent but I think it would’ve been worthwhile to add that the tax benefits of real estate are generally deferred. For example - Loss are generally not deductible less you have other passive losses or until disposition.
Just because it's the code and law doesn't make it fair. That goes for a lot of things.
These loop holes only exist because the fewer-in-number uber rich people use them and the masses of poor do not know they even exist.
If it's in the code then that means if you start a business or go out an buy a property you get that advantage no matter your age race color or gender. If you choose to work for someone you don't have the hassle.
An LLC does reduce taxes.
...please explain how...
100% Dave giving horrible advice. He needs to.stick to helping ignorant consumers get out of consumer debt.
Notice its been 4 weeks and no one has said how? An LLC doesn't do much for taxes. It does allow some minor benefits when saving for retirement and helps keep business deductions easier to manage.
all it does is reduce 15.5%taxes on the "dividend" you collect, after you pay yourself 40k a year with a real payroll!SO IF you make 50k over your w2 income,you get a tax break of 15.5% on that fifty..AND THIS IS ONLY IF YOU HAVE AN LLC ,USING "S" CORPORATION TAXES! YOUR social security benifit will be less someday !@@jamisonmunn9215
@@gogogo1064 please explaine how: "100%" 🤓 blud is just talking out of his ass
“Pay cash for your rental property.” Right, right, gotcha
Aren't distributions from an llc taxed at capital gains rate?
The answer that this guy needed is that losses from rental activity (e.g., due to depreciation) cannot lower his taxable income because of the passive activity loss rules.
This callers biggest mistake was paying off their home. It is one of the last write offs left. In my opinion they should take out a home equity loan. I know a couple that paid their house off and was preparing to retire. They did not need the money but took out a home equity loan for this reason. The women then invested the 100K into her 401K. She worked for a utility company which matched her investment 100% so she ended up with an additional 200K in her 401K. She then gave notice of her retirement. As the commenter below stated, it does not seem that Dave gives all of the best advice. It is incorrect that one should pay off their home. I have a friend in California and she and her husband were preparing for retirement. They paid off everything. And then got slammed with taxes the next year and had no write offs. They should not have paid off their home.
Whats the take on establishing a Corporation sole? Would ohne gain more tax shelter operating in such?
no..actually double taxation...the corporate tax rate ,then when you take your"" diividend" IT WILL BE TAXED AT YOUR PERSONAL RATE!
Why would you pay cash for the rental with money you already paid tax on so you could draw down the rent payments only to pay tax+SS once again? I’d get a loan on the property and apply the rent income to pay off the mortgage + depreciation.
AND pay crazy interest JUST SO YOU CAN TAKE IT AS A DEDUCTION? GOOD please send me 500 bux every month for "advice" then you can take it off your taxes and save 27% of WHAT YOU GAVE ME!
Writing off charitable donations voids the charity. Your left hand knows what your right hand is doing.
No, it doesn't void the charity. By writing it off you have more cash on your hand which you can then use to give more to charity.
Poor Chris with having to pay taxes like the rest of us.
Haha
...poor Matthew for crying like a naive childish victimhood addict...
i rent a property and i wanted to renew the lease in my LLC name. my landlord said that it wasnt zoned for business and he said if i do this i could raise flags with the irs. is that true? is what im wanting to do is illegal? i have a consulting business by the way
IF YOURE TALKING ABOUT WRITING OFF THE LEASE OF YOUR HOUSE ,because thats where you doyour work,forget it.
Can you work a w2 in hold a LLC I rent I work 13 hrs a day 7 days a week
Yes u can lol
Revocation of election. Formally withdraw from the income tax system which is voluntary to be a part of. Forego collecting future Social Security and enjoy your freedom.
Uncle Joe coming for him..🤣🤣🤣
LLC can change how you are taxed
You can tax as an S corp and take income and distribution, which can help a bit, but there's more accounting fees when taxed as a S corp.
If I am netting more than 40-50k a year as a company, becoming a S-corp would be something I would look into. Not saying you should. It's what I would do. That will save you tax money.
Also paying cash for a rental is a TERRIBLE idea in my opinion. You put yourself in immediate debt. Not the good kind either. It will take you years maybe decades to recoup a 200k investment in cash just to break even through rental income and equity. That is just bad business advice. If you're flipping a home, cash is ideal. Not for rental.
dave seems a bit naive and out of touch at the end. you cant have it both ways. either the rich are paying their fair share and the tax code is fine or the rich arent paying their fair share and the tax code needs to be rewritten. he likes to talk about big pharma but yet dismisses big accounting who helped write the tax code with "loopholes" that benefit the rich. so thats what me mean by the rich not paying their fair share. legal yes, but its still a loophole done by lobbying. like donating to their own "charity" to get tax write off when in reality they are just transferring money from one business to another lol. like i know ppl who eat out at fancy restaurants and use that as a tax write off business expense lol. you are encouraged to spend more.
@@saulgoodman2018 did you even read my post? i wasnt even talking about capital gains. plus one could argue that capital gains tax should be raised or should be the same rate as regular income. a lot of ppl are in favor of that
@Local Council Jobsworth no fair share is everyone paying what they are expected to pay. I dont take anyone srsly when they say taxation is theft. Yet you are freeloading on the roads, the schools, the hospitals, the police, military, legal system, judicial system, etc. your either really young, really naive or really sheltered or really ignorant. So which is it?
@Tankkizzle hes clueless
"Fair?" Are you in grade school?
@Tankkizzle and how am i wrong
The rich don’t get to avoid all taxes… Smart property Owners do
Dave fan also, but he started out by going into massive debt like a fat man at a buffet., then started telling people not do what he did and made $$$. I am somewhere between him and rich dad poor dad author. There is good debt and bad debt. No debt is definitely less stress, also less money.
What about an LLC in Montana for purchasing a vehicle anyone doing this while living out of state?
Accountant told me there are no tax breaks for charitable donations!
... practically none... capped at $400 annually...
not only that but YOU MUST SPEND THE MONEY IN ORDER TO SAVE 30% OF IT!
Really debating about saving up and buying a home in cash. Not having a mortgage payment will save me about 2k a month and I'll only have the forever bills of utilities, insurance and property taxes. Probably won't have a home until my 40s, but the though of giving the bank thousands each month makes my stomach drop.
just don't put the savings into cash. invest them in mutual funds as you go otherwise inflation will kill your savings and good luck ever getting into a home
By the time you save up for that $300k house, the house will be $600k. Just buy it now and pay off the mortgage asap. You have to live somewhere so mortgage is the same as rent.
you are right!!this is the only time in HISTORY that you cant save fast enough o stay ahead of inflation !!!ITS SAD THAT DEFICIT SPENDING HAS RUINED THE NEXT GENERATION .Even if you save 1000 a month ,things will go up faster on a a 200k home than that money you are saving can buy!!!! @@ultimaetsolder
but you have to live somwhere......
I had an LLC just to secure the name . The next month I got a tax form from IRS LOL I had made ANY money .
What a bizarre argument about Warren Buffet. I am sure his secretary would love to hear that Buffet pays way more taxes than her in absolute terms. Like...obviously. How that makes it ok for her marginal rate to be higher than his totally escaped me.
if im understanding what you said correctly your basically saying its unfair she gets taxed more then he does in a percentage standpoint? thats absolutely fair because she gets taxed the same percent as he does on capital gains he doesnt get anything she doesnt get he just knows how to handle money thats why hes warren buffet cry about it
@@philshoreman9489 But why should capital gains be taxed differently than wages?
@@owlegrad because that money has already been taxed to death before it was invested.
@@philshoreman9489 EXACLY AND HE IS GIVING ALL HIS MONEY TO CHARITY AND HE HAS ALREADY GIVEN OVER 56 BILLION- i would rather let him not pay taxes, keep increasing his wealth, and give it all away when he dies, would you rather have BUFFETT with the money- guy who lives in same house 60 years- or the GOVERNMENT- ID GO WITH BUFFETT - the government GIVES YOU TONS OF TAX CREDITS- you just have to take advantage of them- ITS NOT AGAINST LAW TAKE TAX ADVANTAGES
@@owlegrad BECAUSE EARNED INCOME IS TAX THE HIGHEST= If you have a regular job working for someone, you pay the most taxes. Now if you employee people, give people housing, give , have passive income, have capitol gains, keep your money invested you have much LOWER TAX BRACKET- EARNED INCOME IS THE WORST WHEN COMES TO TAXES- ALL KINDS WAYS GOVERNMENT GIVES YOU TAX BREAKS- IF YOU own real estate- sell it make an amazing profit and use that money to buy more real estate they dont charge you taxes up front- and you can keep the cycle going
I feel zero sympathy for those who paid off their house and are unable to use those payments as deductions anymore. MOST of us will never have enough to even put a foot in the door to own a home.
Live with family for 2-3 years outside of highschool and save every penny you make, move to any midwestern state, put 10-25k down and boom you have a house. Stop making excuses
@@stephenasmith273 Yeah I'd rather not put myself 1mil in debt to live in a 350k minimum shithole with 10-25k down... The tenure interest is ridiculous. Are you aware of that?
@ where tf are you living where 350k is a shithole? 350k where I’m at buys a 4-5 bed 3 bath place with a nice yard lol.
Dave doesn't give the piece of advice the caller was looking for, expensing your costs. So Dave is wrong, once you expense the costs against the LLC you will come out ahead under the IRS rules.
Warren Buffett > Dave Ramsey
Get an Express Trust Under the Common Law instead.
funny how it's all about ratios for dave when buying thing but not ratios for paying taxes
Clearly you didn’t listen to the whole show.
Clearly you didn’t listen to the whole show.
Can someone elaborate on giving to charity for tax break
Tax evasion is a crime I hope they understand that
...correct...avoidance is not...
Google 26 CFR 1.0-1 paragraph (d). Taxable years by LAW ENDED August 16, 1954!!
I save all kinds of taxes owning rental's through my LLC- depends on your current earned income but if you make under 130K you can write of so much - and you're LLC you can use to write off all kinds of stuff -cell, utilities, car payments, etc...
Bro I just opened an LLC and think about buying a truck to haul my jet skis that I will be renting out to people. I also am a w2 employee. how can I save a lot on taxes like urself since u also own rentals through ur llc.
Do Uber once or twice a month on a Saturday... It's great how much you can write off in taxes. Lol.
@@amritgill4777 Pretty much everything related to your car, anything related to taking care of your passengers, and business cards. Just to name a few off of the top of my head.
@@TheFlyingZulu you just have to watch it regarding how many years in a row you show a loss, or else IRS will eventually decide you aren't trying to run a profitable business and will no longer let you write off losses against other income.
@@TheFlyingZulu I am an IRS agent. Please advise your location. Thank you.
Create a non profit organization may help?
NAH!NO HOPE THERER!...not even a little hope
also note i have time travel device or time machine my false brother gave it to me for my 35 Birthday maybe it will blow my face off lets ask a real investigater whom is willing to do all things properly
I want to be a carpenter contractor with an llc. What are the specific names of the three bank accounts I need to have as a carpenter contractor doing Home Remodeling?
What about the “piercing the corporate veil”?
Make your LLC bulletproof,never use it for anything outside the business,AND KEEP INSURANCE ON IT!
How come no one ever states witch law says we have to pay taxes?
B ECAUSEV ITS FUTILE TO FIGHT THEM....PAY UP or you wont own much ...this big-picture " l refuse to pay tax" is all horseshit...YOU WILL NEVER WIN !
WELL theres been a few NUTJOBS TRY IT!!! there will be no success in your endeavor to screw with this basic govt need!!its a waste of energy to even write this text here,and a waste of my energy answering it!
It’s fair says the guys exploiting all those loopholes. Lol. If it was fair, then they would pay their income tax.
15% of his billion feels less of a dent then her 29% of even het above average wage
Stop paying taxes! The only law specifying a liability for the federal income tax is found at section 1461 of the Internal Revenue Code. whereby every person required to deduct and withhold any tax under Chapter 3 of the Internal Revenue Code is made liable for such withheld tax. And from whom must such a tax be withheld? Such a tax must be withheld from nonresident aliens [section 1441], foreign corporations [section 1442], foreign tax-exempt organizations [section 1443], Virgin Islands Source income [section 1444], dispositions of United States real property interests nonresident aliens [section 1445] and foreign partners' share of effectively connected income [section 1446].
Funny how the rich guy says it’s absolutely fair. I bet you do think it’s fair.
Ofc he’s not gon say shit
I set up my LLC this year and have been tracking all my expenses for my delivery services lol with my W2 job . I am hoping i can write offf everything lol 😂
That’s not how that works
@@realiangarcia you can write off expenses on the busniess and with the loss you can report it in your income tax and lower taxable income on your personal income tax return
Dave: Poor people pay a much higher tax rate than the rich and that's completely fair because it's the tax code. Lol. Nah bro that's called a regressive tax system it's objectively not fair. Saying something "is the law" therefore it's fair is incredibly ignorant 14 year kid logic. Too bad you can't buy critical reasoning skills
Capital gains are taxed at a lower rate because the money used to invest was already taxed when it was earned as income, we want to encourage investment, and investing is inherently risky so they’re making an accommodation for that-you may lose all the money.
Wrong. Poor people pay hardly nothing.
I disagree.
Maybe third?
Lies! LLC can write taxes off. You can't write taxes off if you're an employee 🤦 Dan Ramsey gives bad advice !
Unless you are bill gates with philanthropy foundation then all goes to charity to pay no taxes.
LLC absolutely changes the taxes wtf is he talkin about
it's crazy how the hella rich and super rich people like don't like to pay taxes like you literally have all the money get off the gas that means the money that they actually earned started making it own money so yes that money should be taxed at a higher rate because that money isn't earned
Well their tax bill tends to be really large. My best earning year resulted in paying $23K in income taxes and boy, that stung. That doesn't count SS/Medicare and sales taxes.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@SammyIglesias4665 However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@SammyIglesias4665 Judith Ann peace is her name
Lookup with her name on the webpage.
@SammyIglesias4665 You are welcome .
One rental? Don't say anything. Just collect rent and it's tax free.
Most rental properties operate at a loss which you can use to offset other income
@@jcman240 if your rental is losing money… you probably need to sell it lol
"charity"
If you're complaining about taxes, go live in a third world country.
Ah to have the burden of having to pay 150 million in taxes and only live on $850 million
I bet you complain about taxes with your income too. Everyone does.
Right
Try closer to 50% tax rate. You’d be crying too I don’t care how much money you make. Kanye “On God” song …. “The IRS want they fifty plus our tithe. Man, that's over half of the pie.”
@Valerie Major Next time, try to not use a deranged, mentally ill man who makes garbage music as your source for financial data
52nd
It beats 53rd! You did it!
Dave doesn’t own his properties because he uses the tax code to drive down his gross income🤦🏼♂️. More terrible advice!
I don't understand what you're trying to say.
@john Smith Do I detect sarcasm? Lol.
Hes using legal tax advantages- ???
I bet he likes the street he drives on and the defense provided by the Navy. Come on guy, just pay your taxes like the rest of us.
You know that street is paid for with fuel excise tax not income ???
Of course you don't!!!
Maybe the corporations can start paying too
Flat rate, then everyone will be paying.
sounds ,like hes paying his share and many others as well
You owe it, you pay it.
This guy is a liar.
Dave annoying af 🙄
i am epic
Fourth!
This guy talks in circles and doesn’t ever solve peoples problems. The only good idea he ever had was the snowball effect he came up with