My mother wanted an Irrevocable Trust to save her assets in case she needed a Medicaid facility later in life. Ultimately, she finished her life last year in a facility but we covered expenses through her IRA and cash. The sale of her home WAS taxable because of the type of trust not being eligible for “step up” protection. Lesson learned. Now I warn others of potential pitfalls of “irrevocable” trusts.
@@all-inhomestead3855 apparently, in March of 2023 the a ruling was made that “irrevocable” trusts don’t get the same treatment or benefits regarding tax advantaged status. This type of trust was selected because Mom was afraid if she eventually went into a Medicaid facility, the government would take her assets. If a revocable trust was used, we would have saved a lot in taxes on the sale of her home. My brother and I now have a K1 “bill” to be paid with 2024 taxes. We were able to get the tax bill cut in half by adjusting the cost base. They bought the house new about 60 years ago so it was a big capital gain. The base was adjusted (somehow) with my father’s passing in 2001. Long story short, be careful if considering an “Irrevocable” Trust. Ask a lot of questions.
I've lived in America and Canada. Paid about the same in taxes but get way more for my taxes in Canada. Most Americans hate the government (hate giving them their money even more) because they've never experienced good governance.
The main disadvantage of a revocable living trust is that it does not protect you from creditors or lawsuits. Because you have control of everything in your trust and have access to the assets, you can still held liable. So have the trust own the LLCs for added layer of protection
My lender won’t let me put my primary residence in my RLT because they say it will trigger the due on sale clause, which I don’t think they can restrict me from doing given the Garn-St Germain Act.
When you started how much did you have to start off with? We all know you need money to make money but how much money do you need saved up to start successfully?
How is a W2 income from a job outside the Operational SCorp taxed before depositing into the RLT? Fed and State taxes paid and net income rolled in the RLT? Grayline as employee or as a consultant.
Joe Kennedy (JFK's Father) explained it to Will Rogers on Mutual Radio in 1925 when asked about the new progressive income tax. " (son)...Don't you know the rich don't pay TAXES; We pay SENATORS!" Joe Kennedy was "Al Capone" of Massachusetts and New Jersey in the 20's and '30's. He is known to have have 31+ men KILLED (including his brother-in-law) but never indicted for ONE crime in his life! Not even J. Edgar could touch him. At least 6 Treasury Agents sent to investigate him "disappeared".
This set up does not avoid taxes.🤑 It just shifts who or what pays the taxes. These trifectas are generally set up to preserve wealth by removing legal liability.
Yes and no. If you have 401k maximize it. Eventually when it's big enough you can use it to become crazy rich fast rolling it into a self directed 401k investing it into an LLC owned by a trust. The LLC buys apartments and the rental income can be set up to be pass through zero tax earnings to the 401k, which maximizes speed of growth. Eventually buy businesses etc and can implement all of this.
@@JuanGelogo if all you have is w2 income, then most of this is unavailable except for a revocable living trust and possibly some holding company to place your personal assets into owned by either a trust or even you. If the latter, the holding company may be best if setup in a state like Wyoming due to its strong privacy laws and low cost, likely using a registered agent so you can stay anonymous.
How does this workout when you have to fill out a transparency form to the federal government now? To my understanding you still need to fill out one even though your LLC or s Corp or what have you would be put in a trust.
The problem that faces small investors/ landlords is that if you have an LLC or trust in Michigan you must pay a lawyer to represent you in court. So what happens is that you end up paying legal fees for representation whenever you take a tenant to court for a judgement, eviction, or garnishment! If you have to take a contractor to court again you cannot represent yourself! Please address this issue / dilemma. Please Any suggestions would be greatly welcomed! Thank you!
Thats because they make the rules in exchange for limited liability Its no longer common law based Its uniform commercial code legal persons nit humans
I believe your state wants transparency of ownership. Too many big corps have ruined it for average American. Disney in FL ( Disney world used many LLCs to hide its ID, & got all swamp land dirt cheap; cannot even build back mandatory 2% in FL it drained that will protect PPL & homes from storm /floods;) that Finnish/ Swede tech billionaire man bought all the farms using LLC except 6 farmers who he then sued in N CA to use last open spaces to build a city before any EPA / city/ or public approval. SF is a wasteland of new empty buildings - fix THAT before concreting over last open space in N Bay Area; it doesn’t need another concrete jungle. That’s likely what Michigan is trying to stop. So many ppl sell only to discover too late a mega corp or foreign entity has bought their real estate.
So, a Revocable Living Trust, an LLC, and an S-Corp are all "pass through" taxes and end up on the "owners" 1040, so, I am missing how this is tax avoidance? Say I pay rent to my LLC which is a profit to the LLC which, at the end of the year, goes on my 1040 as income which I now pay taxes on. Hmmm. I just can't wrap my head around. It might make more sense for a C corporation, but still have to pay the taxes.
Mark, here's what I don't get. If I get personally sued and I have a RLT that owns other LLC's, can't a judge force the RLT to assign ownership of the LLC to a creditor, especially if I am the trustee of the RLT? I'm not seeing a RLT as asset protection. So please help me understand this structure. I already have an irrevocable trust for my different assets, isn't that better?
RLT does not provide creditor protection to the beneficiary (e. g Mark himself). It's the LLC that owns the said property gives protection under the state law.
Are you able to answer a question here, sir? We have our LLC for real estate, and we also have an LLC that we will be using for operating expenses and any private consulting work I choose to do in retirement. And hence the question: does this structure work when the primary means of visible income for both my wife and I is SS?
didnt hear really any tax savings plan except for avoiding a death tax with a RLT. your income from your operations are all still being taxed with what was presented.
Taking early notes as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.
Absolutely nothing special about this, except Mark’s ability to market. Everything he says is accurate, but it’s 100% elementary stuff used every day by any decent tax CPA working with a good family law attorney.
Im an Insurance agent selling product and get 1099 income of about 100K. I also have S Corp that charges fees for consulting on government benefits for long term care with fee income of about 50K. So is the 1040 individual bookeeping done with a seperate set of quickbooks online? I have been using a CPA in the past and decided to do my own books to save money. any comments would be appreciated.
I would recommend a separate QBO account for your S Corp and your individual bookkeeping. Otherwise, you'll have a real hard time determining your net income for each business. If you have any additional questions, feel free to reach out
Mark- love your videos. Thanks for producing so much quality content! Just one request. Please take the inset picture of you on screen, off. At least some of the time. I appreciate the time you take to produce those helpful graphs, and would love to see them. However, with your mug plastered all over the screen, it's hard to see what you're talking about about. Just clear the screen for at least a few seconds, where we can see what you're talking about. Then you can put your pretty face back up for everyone to admire, if you like. ;) Thanks again for your work on the content!!!
Mark, apparently you have failed to actually read the Internal Revenue code. The income tax is applied only to residents of Washington, DC You need to read the definitions in the back of the IRC book. UNITED STATES and US citizen is defined as persons living within the District of Columbia. I strongly suggest you read the definitions in the IRC and follow the law as written. You may also want to review definitions in the UCC pertaining to US citizens and also Supreme court decisions.
Yes. Hopefully, more and more people are waking up to the fact that United States is a corporation located in the District of Columbia. Most everything is commercial contract statutes. That's why there are really no rights when it comes to 14th Amendment US citizens.
This makes no sense to me. For a regular person that just works seems just like something extra I have to worry about that really doesn’t help me. Maybe this is good for the rich.
We don’t mind paying for public goods….. Only idiots don’t mind paying for merit goods…. But to each their own, please send the IRS extra money when you file.
You want to avoid taxes, but leave a legacy. Why not pay your taxes and then some, for which this goes into the community, hospitals care homes, welfare services,etc…
This guy in not talking complete bollocks. There is something useful in this somewhere. Private pension funds that can own business premises also allow you to pay rent to yourself. BUT you may not be able to borrow against assets stuck in a pension fund or trust. So you need to be able to operate without loans.
8m in and its gibberish who cares get to the point. The title says The Trifecta System, not us listening to your autobiography, holy hell man. Im sure your version of buy/borrow/die is super interesting, ill never know, cause I clicked off right before passing out due to WTF IS THIS BABBLING ABOUT. Get real ugh.
i just wasted my time going through this video.....I ts about will or wealth protection and nothing interesting about taxes. only depreciation on the assets.
I think you are missing the entire point here because of a lack of means and education on legal strategy - it’s pretty clear to me and many others. I’m very sure of that.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
Save yourself and go straight to min 8:00
Thanks
Thank you.
Thank you
Thank you very much
Thank you!!
Thank you! Structure is everything!
My mother wanted an Irrevocable Trust to save her assets in case she needed a Medicaid facility later in life. Ultimately, she finished her life last year in a facility but we covered expenses through her IRA and cash. The sale of her home WAS taxable because of the type of trust not being eligible for “step up” protection.
Lesson learned. Now I warn others of potential pitfalls of “irrevocable” trusts.
Can you elaborate?
@@all-inhomestead3855 apparently, in March of 2023 the a ruling was made that “irrevocable” trusts don’t get the same treatment or benefits regarding tax advantaged status. This type of trust was selected because Mom was afraid if she eventually went into a Medicaid facility, the government would take her assets. If a revocable trust was used, we would have saved a lot in taxes on the sale of her home. My brother and I now have a K1 “bill” to be paid with 2024 taxes.
We were able to get the tax bill cut in half by adjusting the cost base. They bought the house new about 60 years ago so it was a big capital gain. The base was adjusted (somehow) with my father’s passing in 2001.
Long story short, be careful if considering an “Irrevocable” Trust. Ask a lot of questions.
So is the lesson to make it a Revocable Trust like Mark said, instead of an Irrevocable Trust?
So what should she have had???
@@downhomegirl5 I’m told by her cpa that if it was a “revocable” trust, there would have been zero tax on the sale of the home.
I've lived in America and Canada. Paid about the same in taxes but get way more for my taxes in Canada. Most Americans hate the government (hate giving them their money even more) because they've never experienced good governance.
Like taking away your bank money because of protesting as in Canada ? Great governments over there for sure 😂😂😂😂
All talk no solutions!
You have an incredible, infectious enthusiasm for your work! It is great to see.
Enjoyed the video. Thanks for sharing
This is incredibly helpful. Thank you Mark.
The main disadvantage of a revocable living trust is that it does not protect you from creditors or lawsuits. Because you have control of everything in your trust and have access to the assets, you can still held liable. So have the trust own the LLCs for added layer of protection
My lender won’t let me put my primary residence in my RLT because they say it will trigger the due on sale clause, which I don’t think they can restrict me from doing given the Garn-St Germain Act.
Put your house into a land trust , bank can't call the loan due
Hi Mark, could you please talk about trading taxes? Preferably Futures trading
When you started how much did you have to start off with? We all know you need money to make money but how much money do you need saved up to start successfully?
So, if I set up this Trifecta System, does that mean I can retire to my own private island tomorrow? Asking for a friend. 😂
How is a W2 income from a job outside the Operational SCorp taxed before depositing into the RLT? Fed and State taxes paid and net income rolled in the RLT? Grayline as employee or as a consultant.
Speaking my language! THANK YOU!!!
Do you give personal advice?
So, how does this “trifecta” avoid taxes?
Awesome info
I am living in the EU, can you please help me how to build this system?
Great video. Always something new to learn in the journey of Business.
Joe Kennedy (JFK's Father) explained it to Will Rogers on Mutual Radio in 1925 when asked about the new progressive income tax. " (son)...Don't you know the rich don't pay TAXES; We pay SENATORS!" Joe Kennedy was "Al Capone" of Massachusetts and New Jersey in the 20's and '30's. He is known to have have 31+ men KILLED (including his brother-in-law) but never indicted for ONE crime in his life! Not even J. Edgar could touch him. At least 6 Treasury Agents sent to investigate him "disappeared".
Book?
Great vid! I'm a fan! Hope to have this set up one day.
The Things School Don't Teach !!!
Master Of Financial Design 🖤
Only downside is all the accounting bills for the LLC yearly tax returns. No free lunch folks.
This is really interesting - can you explain how a W-2 feeds into an S-corp? I thought the income from W-2s was just personal income.
This set up does not avoid taxes.🤑 It just shifts who or what pays the taxes. These trifectas are generally set up to preserve wealth by removing legal liability.
Interestingly, all this 'valuable' advice is honestly presented, in PAST tense.
This set up opens up your RLC to legal liabilities.
Does this work if you are only a W2 employee? I can't see how. It seems this only works for business owners.
Yes and no. If you have 401k maximize it. Eventually when it's big enough you can use it to become crazy rich fast rolling it into a self directed 401k investing it into an LLC owned by a trust. The LLC buys apartments and the rental income can be set up to be pass through zero tax earnings to the 401k, which maximizes speed of growth. Eventually buy businesses etc and can implement all of this.
@@JuanGelogo if all you have is w2 income, then most of this is unavailable except for a revocable living trust and possibly some holding company to place your personal assets into owned by either a trust or even you. If the latter, the holding company may be best if setup in a state like Wyoming due to its strong privacy laws and low cost, likely using a registered agent so you can stay anonymous.
Side Job LLC. Write off losses to offset W2 on your Schedule C.
Will an irrevocable trust work too?
I like the system, can this be used for a W2 worker?
love this! thank you
How they pay their dept?
How does this workout when you have to fill out a transparency form to the federal government now? To my understanding you still need to fill out one even though your LLC or s Corp or what have you would be put in a trust.
Thank you!
The problem that faces small investors/ landlords is that if you have an LLC or trust in Michigan you must pay a lawyer to represent you in court. So what happens is that you end up paying legal fees for representation whenever you take a tenant to court for a judgement, eviction, or garnishment! If you have to take a contractor to court again you cannot represent yourself! Please address this issue / dilemma. Please Any suggestions would be greatly welcomed! Thank you!
Thats because they make the rules in exchange for limited liability Its no longer common law based Its uniform commercial code legal persons nit humans
I believe your state wants transparency of ownership. Too many big corps have ruined it for average American. Disney in FL ( Disney world used many LLCs to hide its ID, & got all swamp land dirt cheap; cannot even build back mandatory 2% in FL it drained that will protect PPL & homes from storm /floods;)
that Finnish/ Swede tech billionaire man bought all the farms using LLC except 6 farmers who he then sued in N CA to use last open spaces to build a city before any EPA / city/ or public approval. SF is a wasteland of new empty buildings - fix THAT before concreting over last open space in N Bay Area; it doesn’t need another concrete jungle.
That’s likely what Michigan is trying to stop. So many ppl sell only to discover too late a mega corp or foreign entity has bought their real estate.
So, a Revocable Living Trust, an LLC, and an S-Corp are all "pass through" taxes and end up on the "owners" 1040, so, I am missing how this is tax avoidance? Say I pay rent to my LLC which is a profit to the LLC which, at the end of the year, goes on my 1040 as income which I now pay taxes on. Hmmm. I just can't wrap my head around. It might make more sense for a C corporation, but still have to pay the taxes.
Marketing to get you their consultation for money I guess? Nobody teaches this thoroughly I guess in YT.
Bc only the very wealthy have means to be global & retain top ppl in finance incl tax atty , accounting & CPA firms. Not just 1 approach.
Do I contact your law firm to get started?
Mark, here's what I don't get. If I get personally sued and I have a RLT that owns other LLC's, can't a judge force the RLT to assign ownership of the LLC to a creditor, especially if I am the trustee of the RLT? I'm not seeing a RLT as asset protection. So please help me understand this structure. I already have an irrevocable trust for my different assets, isn't that better?
RLT does not provide creditor protection to the beneficiary (e. g Mark himself). It's the LLC that owns the said property gives protection under the state law.
Are you able to answer a question here, sir?
We have our LLC for real estate, and we also have an LLC that we will be using for operating expenses and any private consulting work I choose to do in retirement.
And hence the question: does this structure work when the primary means of visible income for both my wife and I is SS?
what all the tools or software we need to use for daily trading?
Speaking my language just what I was looking for! Trifecta it is do you deal with non US resident foreign investors ? Thanks again great video
What book are you referring to in your video? I see 2-3 books online by Mark J Kohler, which one goes over this trifecta?
@Mark just wondering if this system can be replicated in Canadian system
How to contact your office? Thanks
didnt hear really any tax savings plan except for avoiding a death tax with a RLT. your income from your operations are all still being taxed with what was presented.
Who can I contact in Phoenix for tax help approved by Mark?
Do you help the regular Reu's out here to setup RLT's?
could i do it also in EU?
The only structure to really legally avoid income taxes if you are wealthy is offshore Private Placement Life Insurance.
Mark, will you please put the trifecta up without your picture?
Thank you for always providing solid information.
If you think this video will save your annual income tax, it doesn’t….it is for legal talks
Taking early notes as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.
What is RLT? That was missing in the video
revocable living trust
I really like your videos
Absolutely nothing special about this, except Mark’s ability to market. Everything he says is accurate, but it’s 100% elementary stuff used every day by any decent tax CPA working with a good family law attorney.
Missed the part about “never paying taxes again”
I guess the CPAs and law attorneys where I live are crap then.
You better ask Wesley Snipes about this guy first…….
Im an Insurance agent selling product and get 1099 income of about 100K. I also have S Corp that charges fees for consulting on government benefits for long term care with fee income of about 50K. So is the 1040 individual bookeeping done with a seperate set of quickbooks online? I have been using a CPA in the past and decided to do my own books to save money. any comments would be appreciated.
I would recommend a separate QBO account for your S Corp and your individual bookkeeping. Otherwise, you'll have a real hard time determining your net income for each business. If you have any additional questions, feel free to reach out
Gold
I've heard that LLC can be pierced especially with rabid insurance lawyers. Wouldn't a corp be safer?
too much hyping it up, too little substance. Left at 3:56 and downthumb’d
Mark- love your videos. Thanks for producing so much quality content! Just one request. Please take the inset picture of you on screen, off. At least some of the time. I appreciate the time you take to produce those helpful graphs, and would love to see them. However, with your mug plastered all over the screen, it's hard to see what you're talking about about. Just clear the screen for at least a few seconds, where we can see what you're talking about. Then you can put your pretty face back up for everyone to admire, if you like. ;)
Thanks again for your work on the content!!!
Try for two years to contact them no answer no return calls I think they are close
The only thing I hate about Mark J. Kohler is that his videos are not longer😅
I’m interested in becoming a client
They need to make an AI Mark J Kohler so we can ask him any questions, one on one. I Can not afford a one on one with him.
You could do that now. Tell ChatGPT to respond to your next question as Mark J Kohler, the RUclips tax attorney……
Good luck 😅
There a lot being said that’s nonsense…
Don’t tell people you bought a building and then built wealth. Where did the $ come from to buy the first building and build wealth???
Perhaps debt as Robert Kiyosaki puts it
"It could be an LLC or it could be a rental property". I've got a 2003 Toyota Corolla and I think I'm in the wrong place.
Burp @4:42 😅😅😅
if your parents were farmers, how did you grow up on main street?
He said they had small businesses, it’s an expression.
Mark, apparently you have failed to actually read the Internal Revenue code. The income tax is applied only to residents of Washington, DC You need to read the definitions in the back of the IRC book. UNITED STATES and US citizen is defined as persons living within the District of Columbia. I strongly suggest you read the definitions in the IRC and follow the law as written. You may also want to review definitions in the UCC pertaining to US citizens and also Supreme court decisions.
Yes
Yes. Hopefully, more and more people are waking up to the fact that United States is a corporation located in the District of Columbia. Most everything is commercial contract statutes. That's why there are really no rights when it comes to 14th Amendment US citizens.
This makes no sense to me. For a regular person that just works seems just like something extra I have to worry about that really doesn’t help me. Maybe this is good for the rich.
Love you videos, but please tell your editor to stop the cartoonish swoop sounds every time words are shown on screen. It devalues your message.
Mark are you helping taxpayers or just helping CPAs improve their businesses?
Revocable living Trust on form 1041 instead of form 1040
I just wasted 10 minutes of my life… nowhere did you say anything that would reduce taxes, but you did market, most likely, needless legal fees
You clearly missed the point owning assets instead of liabilities there problem solved real estate is definitely one of the assets to reduce taxation
Business write offsets reduce taxable income. The RLT also reduces estate tax.
This is a very unintelligent comment
Video prompt reads "Never Pay Taxes". Not "save on taxes", "reduce taxes"... miss leading bullshit.
I hate when people saying I don’t wanna pay tax.
When you don’t pay Tax, you are not gonna have army school, Social Security . Don’t be stupid.
We don’t mind paying for public goods…..
Only idiots don’t mind paying for merit goods….
But to each their own, please send the IRS extra money when you file.
7 min in video didn't start yet.
False
❤❤❤❤❤
The IRS IS GONE. IN THE TREASURY NOW
I paid $1600 and got nothing, should have just flushed down the toilet. Would have been more satisfying.
for what??
Service not what you expected @sbsmith?
This seems to be a common experience based on their law firm's online review
Starting 8 mins is waste of time. Why such a long time for introduction
Too much words for little substance
You want to avoid taxes, but leave a legacy. Why not pay your taxes and then some, for which this goes into the community, hospitals care homes, welfare services,etc…
Yeah and what else such as paying for AOCs earring projects 😂😂😂
Do not waste your 12 mins here. Or waste it in other stuff
This guy in not talking complete bollocks. There is something useful in this somewhere. Private pension funds that can own business premises also allow you to pay rent to yourself. BUT you may not be able to borrow against assets stuck in a pension fund or trust. So you need to be able to operate without loans.
Yeah you never pay taxes but your putting your CPA's kids through collage
Save yourself and find another video
8m in and its gibberish who cares get to the point. The title says The Trifecta System, not us listening to your autobiography, holy hell man. Im sure your version of buy/borrow/die is super interesting, ill never know, cause I clicked off right before passing out due to WTF IS THIS BABBLING ABOUT. Get real ugh.
😎❤
Bla bla bla … 7 min done
Revokable living trust? Trust? This video is clearly not for anyone who knows nothing about finance or business. I'm out...
information worth what i paid for it. zero
i just wasted my time going through this video.....I ts about will or wealth protection and nothing interesting about taxes. only depreciation on the assets.
Algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm algorithm
I get you’re passionate but you talk too much
Omg said so much and said nothing
You should watch again I believe you just didn’t fully understand 😂 😅
not paying your fair share is unfair. be not proud.
I think you are missing the entire point here because of a lack of means and education on legal strategy - it’s pretty clear to me and many others. I’m very sure of that.
Corrupt bureaucratic governments that steal our lifetime income to fund their immoral agendas and line their pockets is evil. Be not foolish