How to AVOID Taxes... Legally (Do This Now)

If you ever wanted to avoid or pay less in taxes to the IRS, you probably had no idea where to start. Here are 4.5 of my favorite strategies to pay less in taxes that anyone can understand.

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LET'S CONNECT:

00:00 Start Here
00:10 Step 1 - The Tax Process
02:25 Step 2 - The “X”
04:34 Step 2.5 - The New Process
06:38 Step 3.5 - Strategic Disbursement
11:03 Step 4.5 - The SBLOC Advantage

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All opinions expressed by Vincent Chan are solely Vincent Chan’s opinions. You should not treat any opinion expressed by Vincent Chan as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Vincent Chan’s opinions are based upon information he considers reliable, but does not warrant its completeness or accuracy, and it should not be relied upon as such. Vincent Chan is not under any obligation to update or correct any information provided. Vincent Chan’s statements and opinions are subject to change without notice.

Past performance is not indicative of future results. Vincent Chan does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

[lastspring]

5:22 That knock made me stop the video and look to the wall. Well played!

[JeffTeeples]

Great video Vincent! This is very important, and misunderstood, information.

[dealforbet]

I appreciate the breakdown of qualified dividends vs non-qualified dividends, really helps understand how to save on taxes. Thanks for the info!

[tonythaiger]

US citizens living abroad can pay 0% tax making $270K as married couple filing 1040. Absolute freedom from taxes :D

[JackieHearts]

Great video. I’m new to filing tax for my family so thank you for teaching me this

[lc]

As always very informative video. Thank you!

[terenceada]

Tax loss harvesting and charitable gifting may also be useful for some folks. Great content. Cheers!

[City-Hiker]

The more money you spend on tax deductible investment products, the lesser tax you pay.
You will consider either a standard deduction or item deduction depending on which one is more beneficial to you.

Logically, you may hold the stock for more than 1 year, but you also taking risk during that time because you don’t know if the stock will keep going up or down. You ultimately need to balance the risk and benefit between saving the tax or taking the market risk.

[CliveBirse]

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.

[jamesodell]

Great video. My only issue is with the 3% interest rate you showed for the SBLOC. The interest rates I saw for loans a $100, 000 loan ranged from 8.5% to 10%.

[asvdavis]

This is super helpful! Thanks, Vincent.

[RS-lwcd]

Great video and explained well. One thing you did not go over is qualified dividends. Qualified dividends are tax advantaged the same way as LTCGs (long term capital gains), and they use the same federal tax brackets of 0%, 15% and 20%.
In my taxable account(s), I only buy qualified dividend stocks. I avoid non-qualified dividend stocks in my taxable accounts because those type of dividends (non-qualified) are taxed as ordinary income. Non-qualified dividends are usually paid by REITs, BDCs, and MLPs/LPs, so I avoid those in my taxable account. Qualified dividends like LTCGs are tax advantaged (taxed less than non-qualified dividends). It can make a significant difference in your federal income tax liability. If you are in a low enough tax bracket, there will be NO federal tax liability (just like LTCGs). For instance, a couple (married filing jointly) can make up to $123, 250 in qualified dividends in 2024, and not pay any federal income tax. The LTCG (long term capital gains) and qualified dividend federal tax table shows that the tax bracket from $0 to $94, 050 rate is ZERO for tax year 2024. So, if a couple made a total of $123, 250 in qualified dividends (or LTCG), and had no other income, they would deduct their standard deduction for a MFJ couple of $29, 200 to stay within the zero rate tax bracket ($123, 250 - $29, 200 = $94, 050), and thus, have NO federal tax liability. If the couple had all ordinary income (non-qualified dividends or any regular income) of $123, 250, their federal tax liability would be $10, 822. That is a HUGE difference ($0 vs $10, 822). This would be an extreme case and most people will have multiple forms of income from like a job, interest, pension, etc., which will create some federal tax liability. However, even if a portion of the $123, 250 is qualified dividends, that will still save you money in taxes.

[asvdavis]

right in time as I patiently wait for vanguard to get my documents together 🤪

[natalieodisho]

The data visualization for step 1 was brilliant

[viggolito]

Just found this channel, loving it =D i've been trying to make sense of the top PE-firms ownership structures but it stops at vanguard group.. since you talk about them often, can you try to make sense of it? 4% to 20% from 2000 to 2021 peaked my curiosity ^^

[jasonsilvia]

according to the government website how would this interest rate arbitrage work maybe I am reading this wrong but

"SBLOCs are non-purpose loans, which means you may not use the proceeds to purchase or trade securities."

If I am reading this correctly the example you used would not work as, according to the line above you cant use sbloc money to buy securities aka stocks.

Please let me know if I am not understanding all of this

[jamielynch]

Thanks for the information. I thought the ROTH would not come off the top if you made over a certain amount of income.

[UltrazRath]

I thought u couldn't use sbloc loans to buy stocks.

[hvguy]

Great vide! Unfortunately the font instantly gave me a headache 😂

[JillsHouse]

The sbloc loan is buying stocks on margin debt, which would trigger margin calls when the stock market crashes later this year.