Secret Hacks The Top 1% Use To Pay Less Tax

Secret hacks the top 1% use to pay less tax.

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Warren Buffet is widely regarded as the greatest investor the world has ever seen, and is currently sitting at number 5 on the Forbes rich list with a net worth of over $100 billion. You can only imagine the amount of money this man brings home every year. Now I want to ask you a question. Considering that the average single worker in the US pays close to 23% in tax every year, how much tax do you think Warren Buffet pays? 30%, 40%, 50%. No, he pays 1%...except he doesn’t, he actually pays 0.1%. That’s right. Buffet shocked the world and in the process angered social justice warriors when he announced that he was in fact paying less in taxes than his own secretary. That is, on a percentage basis at least. And this isn’t an anomaly amongst the world’s richest people. Jeff Bezos, founder of Amazon pays 0.98% in taxes, Mark Zuckerburg, founder of Meta pays 1.1%, Elon Musk, the richest man in the world, pays just 3.27% in tax, and then…there’s you.

You’re probably working a job right now. At the start of each year, your employer mails you your tax statement, and without question, you go through the motions of copying that information over to your 1099 tax form. You send it off to the government thinking, why is 28% of my income lost to taxes? Why do the rich pay so little tax? How are people making more money than me paying less tax? This isn’t fair. You come to the conclusion that the tax game is rigged. You have to be rich enough to hire world-class accountants to save money on taxes. There is no way a normal person like myself can reduce their tax liability.

But what if I told you, you were wrong? There are ways that you can pay less tax and save more money each year, all within the legal confines of the tax code. Today I’m revealing the legal tax secrets the wealthy commonly use to reduce their tax burden, and by the end of the video, you’ll know how to do the same.

Topics Covered:
Personal finance, how to save money, how to build wealth, how to make money, entrepreneurship, financial freedom, investing for beginners, taxes explained, how to legally avoid taxes, tax hacks, how to get rich, how to minimize taxes, tax writeoffs, taxes 2023, tax advice.

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Everything in this video is of my own opinion and could be wrong. I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

[KarsonGaule]

Hope you all find this useful! Have a great rest of your day :)

[calvinowen]

As a tax accountant these are all correct but for most people who are making income only from W-2 wages you can not offset "side-hustle" expenses above "side-hustle" income and cannot deduct from that base W-2 income. Meaning you arent going to get you W-2 income taxable percentage anywhere near the single digits like the rich like you alluded to. Great video and spot on but dont want people to misunderstand that part given you went through the details pretty quick after mentioning your laptop and other expenses.

[davidgavney]

Couple things. A 1099 is for independent contractors or the self employed (maybe you meant 1040?). When you work for most employers, you'll be a W-2 and have taxes withheld by the employer. Second, don't forget a 401k is great and all (and probably not be offered if you are a 1099), but there are tax implications down the road when you retire and there are entire strategies for Roth conversion and/or withdrawals in retirement to optimize/minimize taxes before required minimum distributions (RMDs) starting at 73 years old currently when your tax bracket could actually be higher than when working. You also won't have capital gains taxes selling stocks within a 401k (Warren example). It's all tax free until you start withdrawing in retirement (hopefully after 59 1/2). I think almost all of the funds in 401k's are mutual funds or exchange traded funds (ETFs), not individual stocks.
Your videos have great production technique!

[trtrtre]

Tax write-offs aren’t always good things. You still have to forgo the cash required to purchase the item that you want to write off. Furthermore, the purchases have to be ordinary and necessary for the business. That is a strict standard to meet.

For example, you cannot write off a trip to Cabo with your friends and family just because you used your business credit card to pay for the trip and because you have a “side hustle.”

[matthewzhao]

There is missing a nuance with jets. Writing off the entire jet is using bonus depreciation. Which as of 2023 you can only write off 80% of the total amount that is depreciable over < 20years first year through IRS179 bonus depreciation. So for a 10 mill jet you can only write off 8 mill as of 2023. (IRS 179 phase out)

[joseluna]

I dont agree to buy things to save on tax. Unless you need them
Its like spending $1 dollar to save .25 cent

[Idkjustyet]

I love how transparent your content is. That goes a long way 💯

[cheeriomartinez]

I’m a bit confused. So if I’m putting money into my 401k how does that help me when it comes to taxes? Is the amount I invest on the 401k subtracted from my annual income? Making my taxable income lower?

[jefferydevens]

in the example you provided using 10, 000 of income and putting this in a 401K to grow tax deferred, you noted when a person draws this money out, they would be taxed at long-term capital gains rates; however, I don't believe this is correct. They would be taxed at ordinary income rates, not LTCG rates as they have not paid taxes on this income. Any pre-tax accounts would be taxed at ordinary rates when selling these assets.

[cisium]

This is a great video. The rich draw a much higher portion of their gross taxable income from capital gains than regular folks who mostly earn ordinary income. This means that rich folks are paying via the generally lower rates bracket that applies to cap gains on a larger portion of their taxable income, and also deducting capital losses carried over from previous years, in addition to itemizing expenses. You're absolutely right, there's not a whole lot that rich people do to minimize income tax that regular folks can't also do on a smaller scale. But you have to read the Code, or at least the tax form instruction booklet, and understand it - and a lot of people don't want to do that. And, you have to stop spending that $50 a week on ice cream and lottery tickets and invest it instead.

[jezelantioch]

How about the INDIVIDUAL PORTFOLIO? how are those taxed.?

[CreditPad]

I'm surprised by the contrast in this analysis. Labeling Grant Cardone as a 'fake guru' and then suggesting he's trustworthy with tax advice seems contradictory. It's crucial to be careful with such statements, especially when it involves financial decisions. There's also a lot of other bad advice in this video that could lead people in the wrong direction. I'd suggest taking a step back and getting some real world financial experience.

[stockswithyon]

These are helpful tips. I like the chart you made showing tax credits and tax deductions. Thanks for the information

[engineerahmed]

Make detailed video on mixing tax on salary, with side hussle losses, investing in such a way that u money gets reinvested automatically, without tax deduction, & ofcourse tax credits

[Vince_]

This was excellent, thank you for the information!

[shumatsuopost]

Wow, these hacks are really interesting! It's amazing how much money the top 1% can save on taxes!

[kmsedgy]

Can't believe this channel doesn't have more views

[cheeriomartinez]

I think I just found my new favorite financial YouTuber who actually helps!!! :)

[curtisdavis]

Excellent tax strategy advice. You win when buying assets and get tax credits... ..but when Grant buys $10 million jet, it's excess cash. So, seems most people win tax game, must play the business.. Does everybody need to be "Entrepreneur" ? Thank You😊

[significantbliss]

well timed video! obsessively trying to maximize my tax deductions today