How the U.S. Tax System Works

The United States tax code is filled with rules, regulations, exemptions, exceptions, loopholes, and tax breaks. Most people have no idea how to take advantage of the tax code to minimize their taxes. As a result, they end up paying the highest possible tax rates every single year. This causes a lot of financial distress.

In this video, tax expert Karlton Dennis explains how the tax system really works and how people who are educated about key tax issues can actually save a fortune in taxes. Many of the most important tax breaks revolve around real estate investing. Karlton explains why this is the case and how you can take advantage of it.

Once you understand how the tax code really works and the various incentives that the government has sprinkled throughout it, generating substantial tax savings becomes a lot more feasible. Crucially, this video also covers why there are significantly more tax breaks available for business owners compared to W-2 employees.

CHAPTERS:
0:00 Intro
0:27 There Are Two Different Tax Systems in the U.S.
4:34 Using Real Estate Investing to Reduce Your Tax Bill
5:34 Taking Out a Loan to Buy an Investment Property
7:48 Why the U.S. Government Prefers Hard Assets
9:20 Outro

*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

#taxes #irs #ustaxcode

[karltondennis]

Subscribe to the channel to help us reach 1 million subscribers!!!

[nicolasbenson]

These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?

[malachi]

Wealthy people do not "keep this information behind closed doors", the public school system does. Wealthy people actually are the ones that teach us this information.

[TCFruit]

I chose to subscribe because you get straight to the point and your videos are not long with unnecessary added talk. Thank you for information and getting to the point.

[AmbientTonez-frpw]

Exactly this has been the most accurate video on you tube that I have seen in years

[StephanieG.Augustus]

I dislike taxes for one main reason: the government requires individuals to calculate their own taxes and imposes heavy penalties for mistakes. While I have no problem paying taxes as a US citizen, it seems strange to me that I have to do the paperwork when the government already has all the necessary information.

[TheTaxProfessional]

I love the reference that the tax system is a game. This video is very informational and provides a clear understanding of how taxes work - thank you for this!

[WereNeverDuplicated]

This is short, and sweet. It's straight to the point, and very well said. 👏 Simplicity is what the best educators are made of.

[Larry-dc]

Real estate depreciation is a double edged sword. Down the road when you sell the property, you must pay capital gains on the depreciated value, not the sales price. It's a massive tax bill. I've been there.

[FinanceFrontier-nt]

This channel is seriously helping me get on top of my finances here in the U.S. Appreciate it!”

[ryanwilliams]

The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.

[justinsean]

This channel and content has given me the knowledge to stay hungry and motivated! Notification bell ON🙌

[iloveyou]

I was recently penalized for being both the business owner and the employee. I’m learning about this tax game

[mzvons]

I am currently in the process of educating myself once again on this topic. I've always sought to learn what the elite know... I've just never been able to apply it. Thanks for enlightening us!

[pamelaleake]

Thank you! You don’t know what you don’t know. This is helpful information.

[joyouslifeall]

very nice video as always and great information here. But where can I possibly find a good accountant that can guide me for all this? All their answers are all opposite of what you are talking here.
Please let me know where I can find a good accountant that can help my needs and advice me on what to declare and what to do to get to maximize my tax return.

[TilSchweiger-if]

Your videos have been truly impressive! As one of your regular viewers, I've been following your content closely for a while now. I'm very interested in making an investment, but I’m still having trouble identifying the right opportunity to fully commit to. I would greatly appreciate any guidance or suggestions you might have in this area.>>

[matt]

Damn I wished they taught this in school. Thank you for sharing knowledge in a simple, understandable way.

[Dizzygotmuscle]

I found out more in this video than most real estate classes i went to lol

[MyWealthBuildersRealty]

Absolutely an amazing video. Thank you so much! I’ve been telling people this for years, and you just laid it out in a super easy way to understand.