How To Pay $0 Income Tax: Buy, Borrow, Die - The Tax System is Broken

#notax #incometax #taxhack

In this video I break down the easiest income tax loophole that quite literally reduced your income tax to $0. This strategy is used by billionaires like Jeff Bezos, Elon Musk, Bill Gates, to name a few. It's know as Buy, Borrow, Die.

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tags: bezos, musk, gates, buffet, no income tax, billionaire tax cut, 1% no tax, don't pay taxes, not paying taxes, avoid taxes, taxes, $0 income tax, how to avoid income tax, buy borrow die, SBLOC, PAL, margin loan, securities back line of credit

[boliu]

This is great. You explained everything so clear. Thank you!

[investment]

Thanks John! What an incredible video, very easy to understand and love the way you talk. Keep up the great works!

[thewealthyrn]

Dude, loved the video! Great explanation! Similar in theory to IULs but without the insurance headache!

[elderbieler]

Great video. You killed it. Really well done!

[Baobasaurawr]

Great video! This is exactly the kind of content I need

[chop]

Love all the knowledge here and can’t believe the top % pay nothing with this! PS: love how smart Viv is here!

[todayu]

Excellent video! Very well explained.

[uniquebooksdevelopmentspug]

Of all videos with the "Buy, Borrow, and Die" strategy, yours is the best I have seen! I have been looking into a few videos and books to implement the process with a few properties I entirely own. Do you recommend any books for the strategy? And can you cover a little bit more for step two...like strategies to make the payments for those loans.

[sakhiya]

Clear and simple rundown of SBLOC financing. Been looking all over for this. Subbed. Thank you! 🙏🏼

[KeithJones]

Definitely going to implement this strategy ☑️

[ChaseYokoyama]

I know how to illegally avoid taxes. 😳

Good information John. The U.S. tax system is pretty complex and bugged. It literally pays off to learn about the tax laws/loopholes (or hiring someone that does).

[GalangPaa]

totally hooked to your channel. but don't blink too often, makes me sleepy hahaha.

[bbs]

Hi John, thanks for this great tutorial! My understanding is this SBLOC helps when I runs out of other means to raise money to pay my bills, and I don't want to sell my portfolio. Can I use the LOC to pay down payment?

[ijdhjet]

Hey John, Nice video but note that in your example, when you refer to the schwab interest rate, the interest rate that vivían would pay your pay is not 2.90%, it's 2.90% plus the benchmark (SOFR) which is currently around 5.3%, so her total interest expenses would be about 8%.

[Daniel_Braun]

Really getting deep with the tax system here, I like it! Great stuff John! The more people know, the more opportunities are available 👍

[frankbradford]

I wish this young man had explained that this type of loan is an interest only payment type of loan with no maturity date. Therefore no principal has to be paid monthly. And the assumption is that the borrower isn’t devoid of any income or liquidity and therefore could afford the interest payments. In my opinion, had he said these things it would have made this strategy make more sense to people just learning about it. Also, people use the death benefit of life insurance to pay off this type of loan. That is actually an even smarter method because you do not diminish the earning power of your portfolio and still pay with tax-exempt funds.

[yvrrtw]

In the US, the "die" part only works if your net worth is less than $11M prior to 2025 and $5M after 2025 (if the government at that time changes the estate tax exemption) as anything over is subject to estate tax. Also, the "die" part doesn't work if you are a resident of Canada for tax purposes. In Canada, when you die, you get taxed on all your unrealized capital gains on your date of death (however, your heirs do get a step up in basis).

[salvadormacias]

Whaaatt??, I sold 70k worth of stock last year, I didn’t know that, thanks so much for the info, that’s gonna be really helpful for now on

[justcommenting]

I immediately checked to see where this was on Schwab. Wow. This is one of those things that should obviously not be allowed, since the only purpose is obviously to avoid taxes. Unfortunately, even though I have a year's worth of mortgage payments saved up, plus my investment account, I still don't quite qualify for the initial interest spread(close though). In the next 2 years it looks like this will be a viable method of filling the gap between dropping my actual income to the 2nd lowest bracket, while still having enough to live normally on.

Crazy. Thank you, I *never* knew this product existed. Insane. Completely obvious tax avoidance bs, but at least now I know how to use it. I don't really see how they would prevent you from using that money to trade more securities, but whatever. The only thing missing was how these loans are paid back in practice. I assume you just accept the minimum annual income needed to make loan payments.

Some retirement funds also let you take out loans against your 401k, which maybe could also be used, since you only pay the interest to yourself.

[Rainbow-ofhq]

hi john, nice video. the only question i had was wouldn't you need to sell your assets to pay off the loan and thus incur the same taxes?