How to PAY ZERO Taxes on Capital Gains (Yes, It's Legal!)
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- Опубликовано: 1 июн 2024
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Can you really pay no taxes? Earning money and paying taxes to go hand and hand. If you have an income, then chances are Uncle Sam is going to want his piece of the pie.
However, is there a way to pay no taxes at all? Let's see if you can pay zero taxes in 10 minutes or less.
A substantial number of the people paying taxes are overpaying due to their own ignorance. We are here to help change this.
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The whole purpose of this video is to try and help some of you out there achieve the lowest taxes possible. Some tips and tricks could potentially benefit those of you who watch till the end. We hope that you find the video helpful during your next tax season.
If you're interested in more ways on how to eliminate taxes, then look over the channel. We have many videos to help those out there to help lessen your tax burden.
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0:00 - Types of income taxes
1:02 - Active income
3:27 - What's important about portfolio income?
6:16 - Capital Gains
9:07 - Passive Income
12:10 - Best tax treatments
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Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice. of the information contained herein without seeking professional legal advice.
#capitalgains #taxes 
Хобби
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I suggest everyone look up the difference between regular dividends and qualified dividends (with respect to the Zero, 15, and 20 percent). Regular dividends are taxed as income.
Thank you, just found this. So happy to have come across. Never had a way to explain this or show to folks who rail against billionaires & corporations. Not to mention this might help someone I know.
Very nicely laid out. I was just talking to a coworker about that although not as detailed and it blew his mind.
Excellent - Subscribed! Thanks Toby.
Thank you for your easy to understand explanations on so many areas like estate and tax planning etc. I like that you speak clearly, no stammering, or using a ton of fill words like um, uhh, and a....because you obviously know exactly what you're talking about and dont mince words. Ive been watching all your vids lately, as I've been working 35 years saving money and building a nest egg this entire time, but dont have a trust or a will or nothing, so i def need to do something.
This was excellent! Instant subscriber. I very much appreciate the simplicity with which you presented this. Keep up the good work.
Thanks for the comprehensive condensed overview. Well done.
First time watching any of your content and safe to say I am glad I found your RUclips Channel! This one video helped tremendously as there is not much sound advise and info regarding taxation
Very helpful for understanding and tax planning, thank you!
Glad it was helpful! Thank you for watching our videos!
I think mentioning wash sales in relation to capital losses is important. In your example with Bitcoin, when you sell at a loss and then buy the same or similar security within a certain time frame, you can no longer claim capital loss.
Yes, this is critical to understand, because overlooking this rule could be very expensive.
That's exactly right. And sometimes those securities can go up significantly in value while you wait and then you feel like you don't have an entry point anymore
This is why you don’t take financial advice from a RUclipsr . I was out when he misspelled royalties
@@Smouse168 I noticed that supposed misspelling also; however, play the video back at that point in slow motion and you'll find he writes his actual "o" a certain way, and the following supposed "o" like most people write an "a". All this just for what it's worth.
Crypto is not subject to the wash sales loss rules. There are easy ways around the wash sale loss rules.
Eye Opening really. Thanks a lot. Will be watching all your videos for sure.
Thank you so much for the video it was very helpful and easy to understand
Absolutely invaluable, concise and interesting!
THANKYOU!
Glad it was helpful!
Great info, thank you so much!
Thank you🙂
Wow i loved the way your carried this through.
Good presentation Toby. I'll be watching more. Happy New Year.
Yup, said another way - if you make your money from owning things, you pay a lower percentage of your gains, but if you make your money from working - sweat of the brow - you pay a higher percentage. I wonder whether owners of property or workers made these rules?
Completely understandable. Thank you for sharing your knowledge with us.
Thanks for the information.
Thanks for your video content(s) & Great!!!
Great info. Great presentation. Good voice for listening to you. Suggestion - only use white chalk. Colored chalk does not show up.
Keep up the good vids.
THANK YOU!! This is an amazing channel!!! I have learned so much in a small amount of time and know so many more grey areas exist but you chose to really sun up the main points! ❤️🥂
Thank YOU for being such a great part to the community!
@@TobyMathis Love your video! I am confused when it comes to Capital Gains. I only use Uphold and i trade within Uphold. Bitcoin for XRP, Etherium to XLM etc... I only cashed out $700 in 2023. However it says my capital gains are $626,500 and my Total Income is only $85.00. So on turbo tax it is saying I own over $200K in Taxes!! I am very confused. I only cashed out $700 total. All the rest were just trades i made within Uphold.
I am impressed with your knowledge! Great video and you have a new subscriber...thank you!
Toby, excellent content. Love your education.
The most comprehensive, to-the-point, 13-min explanation of taxes I've seen in a while. Thank you, Toby. You've got a new fan and a subscriber!
🤣🤣🤣🤣🤣
Agree, i have researched endlessly and used Turbo tax to guide me. This was great. IRS need to bone up also. Perhaps they really too much on software as i do.
Thanks me too, my accountant didn't help me out at all and he was a friend.
Agreed!
Thank you for the education Toby, easy to understand and very useful, as usual. Two 👍 thumbs up!
🙏🤣🤣🤣🤣🤣🤣🤣
Really awesome video thanks Toby
Learnt Tax in ten minutes. This is so very helpful as a guide to what I can do next. Brilliant thank you again. I’ve learned more in two of your videos than I knew in the last 20 years.
Subscribed on the first video! Can’t wait to learn how to use my equity to help me expand & also learn how to keep more of my wealth
Holy shit. My mind just blew. Thank God for this channel.
Love the information Sir! Keep it coming.. :)
Useful, thank you
Thank you so much! You were fully understandable. This is the stuff we should have been taught in school!
They don't teach you this in school for a reason.
You cannot buy the same stock right back. You need to at least a month pass if you buy back the same stock. By that time you may have already lost more in case it goes up.
Awesome video but maybe a white board to replace the chalk board!
Great info 👍🏼, thank you
Amazing, thank you!!
On stocks, there is a wash sale rule if you buy within 30 days before or after sale, loss will be disallowed.
not sure about this, I get taxed on dividends even when reinvesting
Tax loss harvesting , you need to wait 30 days to buy back the stock you sold to mark the loss.
hello,
Have a six figure capital gain from the sale of a second home. Besides opportunity zones fund. How can I reduce my basis to lessen my tax burden?
you are very good. love this content. learning. thx
Hi Toby!! Great to see this!! Geno
Most articles on retirement income fail to mention 0% interest on Qualified Dividends and Long Term Capital gains We am far from rich, but we make more net income in retirement than we did working. Over 1/2 of our income is from Qualified Dividends at 0%. Our effective tax rate on $120,000 last year was 3.5%. One must be careful to stay under the taxable income limit if you want 0%.
Borrowing against equities could be a great alternative to Reverse Mortgages and Annuities, neither of which is attractive to me.
How do you get 0% on long term capital gains
The red chalk is less visible than the white.
I strongly suggest a whiteboard.
Then the white would not show up.
Great! Thank you sir.
Excellent advice already working!!!! specially for Real Estate and Stocks.
Toby, you do such a great job of explaining difficult concepts. Thank you.
Thank you for the compliment!
Good overview for novice tax people. Personally I like to build losses through high dividend securities because their value goes down based on the amout they payout, thus not a true loss of capital. Then use them to offset gains in something I feel has lost its growth potential.
Good job!!
Thank you for your insight. Shared this video with my friends. Keep up the good work.
Thanks for sharing!
Thank you for that! So glad your out there giving this great content.
Thank you🙂
Do you have a tax adviser program? I would love to learn more1
Good video. It might be a good idea to concentrate on dividends, because the preferential rates only kick-in for "qualified" dividends. Even though IBM pays "dividends" out of accumulated earnings and profits, the taxpayer needs to meet a specific holding period.
There are also dividends paid by non-taxable entities like REITS, which are taxed at ordinary rates.
There are also passive and publicly-traded Master Limited Partnerships. The distributions are generally not taxed, but they are subject to loss limitations, where the K-1 losses accumulated and are recognized upon disposal.
🤣🥜🤣🤣🤣🇺🇸
The holding period is only 60 days before or after to make them qualified
Not an issue with me long time holdings Lol ibm a great one
Also have REITS so I do have some ordinary, but some of those are return of capital with zero tax
MLP are a pain in ass , sold my IEP Icahn holdings just to avoid schedule K not coming till late march. Same thing with royalty trust simply a pain in the ass passive income schedule E nonsense
Don’t want deal with them, I’ll stick with regular dividends,,if that costs me few hundred a year so be it.
Loved this !
Amazing content!! Thank you for making these videos.
Thank you for watching the content. Don't forget to subscribe for future videos.👍
If you sell a stock or bitcoin at a loss to do tax loss harvesting then you have to wait 30 days to buy it back otherwise it counts as a wash sale FYI
I believe it applies to stocks but not cryptos...yet
There is NO 30 day "wash rule" on BTC or any crypto.... yet.
Not inside a roth...
For bitcoin they'd like you to wait a day or two (take on risk)
Hot damn Mr Arthur, if this is true that's a great point amigo and thankyou.! I'm gonna have to watch this twice and take a few notes🔥
I've been so nervous about investing due to ALL the damn taxes!! 😫 I appreciate your content SO much!! 🙏
Same here i have tons of savings but im scared i will get taxed to death, I paid taxes earning it and spending it then when i make profit with it! WTF
So you don't want to make $100 because you are afraid to pay $25 in taxes? Lol, makes sense to me.
NEVER let the tail wag the dog. Have a good tax advisor and pay for that service and you will do well.
really good videos, thanks
Subscribed! Great explanation at its simplest form
Awesome, thank you!
I love this channel! To add to this great video, for a dividend to generally be considered long term cap gain or “qualified”, each share of stock or etf must been held for more than a year (there are exceptions). If you hold it less, then it would generally be considered short term cap gain which is taxed as ordinary income. Some reits are never eligible for long term either. I could be wrong so anyone please let me know
Dividends have nothing to do with capital gains , just hold the stock for 60 days, it’s qualified for Most part (always rare exceptions)
REIT s are rarely qualified for dividends, but when you sell they are qualified for long term capital gains
My understanding is that if you sell a stock at a loss and buy it right back (as you suggested) you can't take it as a tax loss. By not waiting 30 days, you have created what is known as a wash sale
You are correct.
Great content!
Very interesting! Thanks for making my head spin. I’ll be thinking taxes for hours now!
Great content! How can a real estate agent offset taxes? Could you please create a video? Also if I sell a property, how can I apply a 1031 to avoid capital gain? Could you please explain this? Thanks 🙏
1031 you must purchase another property. It is a roll over type of exemption
I believe you have 180 days to buy a property after you sold your house.
Thanks for great content on this! As a real estate investor and Realtor, I have felt like I still paid too much in taxes for 2021 from all the active income I generated. Subscribed!
Yes!! His comment caught me too!! I pay so little, but not yet "zero"!! Best wishes man!
More good info. Much appreciated!
Thank you, both for the comment and for watching the video!
Love the way you explain everything.....
Thanks a lot, I appreciate you taking the time to watch my content!
Two points:
1) SS is more than just a tax. If you are not paying that over your working life, you will not get SS when you retire. We can discuss it's ROI, but it is a bit misleading to say it is a tax.
2) You can't sell a crypto at a loss and buy it straight back to avoid taxes. The wash sale rule prevents that.
@@skellington2000 Skellington is correct on both.
@@thinhdoan3373 awkward
How do you pay zero taxes on capital gains? I don't think you mentioned it.
One way he mentioned is to apply capital losses.
Another is to borrow against it.
He’s misleading you. You can’t. You can offset with capital losses or never realize the gains. Bottom line, you pay zero capital gains tax only if you have zero capital gains. The borrowing part is to borrow against your portfolio to create liquidity instead of realizing capital gains to do it.
Short term gains are at the ordinary rate but long term gains may be taxed at 0% "if your taxable income is less than or equal to $40,400 for single or $80,800 for married filing jointly or qualifying widow(er)." Similar to qualified dividends.
@@antilogism Good point. I will add that your AGI will be increased by the amount of your capital gain thus causing your taxable income to increase as well. Taxable income is your AGI minus the standard deduction or itemized deductions.
Good advice for those not willing to go where they and their finances are treated best.
Thanks!
Awesome discussion!
Glad you enjoyed it!
Does he have a platform?
🐥
Just think, even tyrannical governments like Russia have a flat 15% tax and none of these BS schemes.
Just be a donald and not pay taxes.
Great content. I may buy some of this overpriced real estate for rental...after giving it time to decline if it is going to at all.
This is one of the best explanations on everything income in very simple terms
Thanks for the good advice. I think the proposal to sell Bitcoin at a 30% loss and then repurchase it would be hit with a wash-sale rule. You'd have to buy a different asset (like Etherium or stocks to make it work)
Buy XRP.
I thought that was (still) allowed on crypto.
Wow! you're clever like Bernie Madoff!
This is allowed, but dont rebuy the same asset you sold within 30days
Does not apply to crypto. Yet.
We heard there is a federal law which may be ratified soon which required annual filing or person go to jail or pay $10,000. Or more. It was mentioned by a lawyer on RUclips. Is this true? When will that go into affect? Please do a RUclips video on this if it’s true, thank you!
Here at Anderson Business Advisors, we are always watching for new updates and changes in laws and reporting requirements. We typically do not change strategies until something has been completely implemented. In this situation, I am not sure what federal law you are referring to in regards to reporting requirements.
Love your information. Please get a white board, can’t see the chalk board
Thanks for sharing!
Thanks for watching!
Great infromation! Thank you
I'm glad to hear it! Thank you for watching.
Thanks for the infor. But the heading is little misleading. There is not a legal to Not Pay taxes unless you dont make income, no income no tax. But if you make money, you do pay your fair share. All you have pointed out is taxes deferral, which, with proper tax planning, yes, can defer paying taxes, offset cap gain with cap loss, QOZ investment, 1031 exchange, accelerated depreciation, etc... these are ways to defer tax payments, but NOT not paying taxes. The legal way is giving away your income, such as charitable donations, gift money to your kids and family members to minimize the amount of estate, these are the examples where you reduce your income or net worth to an extent that your income or estate is below the taxable threshold, thus not paying taxes or paying less taxes. You may update your heading to be more precise. Thanks for sharing!
But I have never paid any taxes, since I dropped out of school.
I have been on welfare all my life.
White folks working for me.
I goes fishing and drinking wine.
He won’t change it cause it helps get the views/clicks.
What an education, eyes wide open.👍👍👍👍👍
nice, thank you
I normally cringe in these types of videos and watch for entertainment. I have a Masters in Taxation from one of the top schools in the country and work in tax planning for a very large corporation.
This video does of great job of simplifying some complex tops down to 13 minutes. Great job on the video!!
Wake up
@vip47287 no, you will owe taxes on that income. More details would be needed to figure the tax on that income, but it would likely be at a 18.8% tax rate (15% cap gain rate plus 3.8% net investment income tax). This is only the federal tax and doesn’t include state taxes.
@vip47287 I highly recommend consulting with a CPA in your area.
If you sell and buy right back isn't that called wash sale? Dont you get fined for that or lose out?
Yes. He probably is saying you can buy it right back after the 30 days required. He just wasn’t clear. Good catch though.
@@robertdinicola5834he was clear - he did not mean in 30 days.
Thank you and subbed!👍
Thanks for the sub and thanks for watching!
You have some great information on your channel. Thanks for sharing.
Thanks for watching!
great video!
good stuff, i like it the way you break it down
Glad you liked it!
Thank you!!!
You are fantastic!
Wow, great content! Many thanks!
My pleasure!
Great Talk! Thanks!
Thanks for watching!
Thanks Toby. Great content. I’m soo grateful that you are sharing your knowledge. 😇
We appreciate that!
Great video, great content. Keep up the good work!
Thanks, will do!
This guy is good! Interesting stuff!
Brilliant clear
Good breakdown of tax types. I'm nearing 59 1/2 and about to cash in some IRA mutual funds. Need to go slowly to keep CG from knocking me up a bracket.
You constantly blow my mind. Thank you Toby.
Thank you for watching our content!
Thank you
He is so smart guy . Learning a lot form him . Thank you
Great video.
thanks so much, I super like these videos
Glad you like them!
I learned more about Capital Gains tax than 5-years working with my accountant. Great content! When my (new) channel grows a little more closer to your size (and I can hopefully add value for you) we should do a collab! Until then keep killin' it!