How Rich People Avoid Paying Taxes - Robert Kiyosaki and Tom Wheelwright @TomWheelwrightCPA

Robert Kiyosaki’s SECRET Tax Hacks PART 1

Discover a way to pay fewer taxes legally, deductions you can apply and the three strategies Robert Kiyosaki uses to pay 0% in taxes.

Regular employees pay about 40% in taxes while self-employed people like doctors, lawyers & accountants pay 60% tax. Business Owners, on the other hand, pay 20% tax with investors paying 0% in taxes. Wouldn’t you want to be on the right side of the CASHFLOW Quadrant? It is absolutely possible to go around paying 0% tax. You don't have to be a crook to not pay taxes, you just have to be smart. 

In fact, the government doesn’t want you to pay taxes. They use taxes as incentives to get you to do what they want you to do. 

Best known as the author of Rich Dad Poor Dad-the #1 personal finance book of all time—Robert Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. He is an entrepreneur, educator, and investor who believes that each of us has the power to makes changes in our lives, take control of our financial future, and live the rich life we deserve.

With perspectives on money and investing that often contradict conventional wisdom, Robert has earned an international reputation for straight talk, irreverence, and courage and has become a passionate and outspoken advocate for financial education.

Robert’s most recent books—Why the Rich Are Getting Richer and More Important Than Money—were published in the spring of this year to mark the 20th Anniversary of the 1997 release of Rich Dad Poor Dad. That book and its messages, viewed around the world as a classic in the personal finance arena, have stood the test of time. Why the Rich Are Getting Richer, released two decades after the international blockbuster bestseller Rich Dad Poor Dad, is positioned as Rich Dad Graduate School. Robert has also co-authored two books with Donald Trump, prior to his successful bid for the White House and election as President of the United States.

#robertkiyosaki #richdadpoordad #millennialmoney

Facebook: @RobertKiyosaki

Twitter: @TheRealKiyosaki

Instagram: @TheRealKiyosaki

[TheRichDadChannel]

What are some of your tax strategies to pay less in taxes this year?

[annepay]

Funny how the accounting classes I took in college don't even come close enough to teach you about the possibility of financial freedom. They only apply scenarios where you learn how to balance someone's else's business. Just prepping you to be an employee...Wow....

[Cheapers-Vac]

It is never too late ! I am 71 and I gotta do this !

[blancam.becerra]

I remember in high school we had a substitute for a month. Everyday he read to us rich Dad poor Dad and made us write notes while everyone was talking I was listening. He did mention you’ll thank me later for reading this, and boy was he right. They should be showing this video to all these kids in economics class. People always complaining why wealthy people get tax breaks but never take the time to research as to why they get them. Knowledge is power! Invest in yourselves first.

[boitumeloroopher]

This is like Greek to me. I hear you... but I don't hear you. But I'll keep playing this video till I get it. won't give up.

[bretttomlinson]

I’m 15, trying to learn about taxes before I start my own business. Everyone can start there own. Just think of the things you use in your daily life .✌️🙏

[kartikayrai]

If you've been following this guy, you'll know that one of the most important lessons he preaches is to never stop learning, and that's what has stood out to me.
In school, we're taught that our education ends after college, or an internship. "You already know all that you need to", and, "You are just wasting your time on useless pursuits". Actually, education should never end.
Because not only does it "corrode" your mind(the way muscles get weak due to lack of exercise), it also stops you from adapting. It teaches you that learning is a sign of inferiority, rather than a virtue.
We often say, "knowledge is power". But we never really understand the significance of this phrase, rather repeating it like parrots.
Amazing work, Rich Dad! Keep it up!!

[manueloctaviomartinez]

Someone give this man a bigger white board. I want to learn this notion more in depth

[PassiveIncomeTom]

I attended a seminar you held over 10 years ago. I took and paid for a 1000 tax course that has been priceless.

I take deductions from my rental properties, business lunches, travel to and from my rentals, repair costs for my computer, charitable donations, and a few others.

#priceless 💯💯💯

[thedatasage]

Amortization: the action or process of gradually writing off the initial cost of an asset or the repayment of a loan principal over time.
Appreciation: an increase in the value of an asset over time. 
Depreciation: a reduction in the value of an asset over time, due in particular to wear and tear.

[armandstrencis]

Would it be possible to make a video in future showing the examples with numbers. Just to show how it all works, depreciation and appreciation. I believe it would show the importance of this even more. And also Tom mentioned that it's possible for an employee to take benefit of depreciation, but didn't explain how. It would be interesting to know that too. Thanks for your work, very much appreciated.

[CV-nnjj]

For those who are wondering how Depreciation, here it goes.
Purchase price of the house: $500, 000.
I put down 100k on a rental real estate
Debt (aka Mortgage): $400, 000

Business perspective:
Annual Rental Income: $60, 000
Annual Rental Expenses (includes, Mortgage, taxes, insurance, repairs, HOA utilities, etc.): $40, 000
Annual Rental Net Income: $20, 000 positive cash flow.
With my mortgage, I can buy a $500, 000 property (mostly using the bank's money) and my rental property increases 5% per year in market value (APPRECIATION)

Tax Return perspective(Keep in mind that the goal is to minimize income and to maximize expenses, more income you show on tax return, the more taxes you pay)
Annual Rental Income: $60, 000
Annual Rental Expenses (includes, Mortgage, taxes, insurance, repairs, HOA utilities, etc.): $40, 000
Annual Rental Net Income: $20, 000 positive cash flow.
BUT dont forget the Depreciation (AKA freebie expense/phantom expense): Let's say it's $19, 000 per year.
This means you're paying taxes on $1000 worth of income OUT OF the $60, 000 that you really got from the rental property. Meaning you're paying virtually NO taxes.

If you're a W-2 earner, you receive $60, 000 and you're taxed around 25% right off the bat, meaning you pay $15, 000 before you even get the money. You also have to shoulder the mortgage payments, taxes, insurance, sales taxes, daily expenses in addition to the taxes that you've already paid.

Hope this helps.

[Hadzzi]

Hi Robert, I really appreciate what you're doing. And I hope to learn as much as I can to start my business.

[socialpublisher]

Depreciation is the government's way of saying we know your tenants are going to contribute to the wear and tear of your rental properties. Wear and tear is an expense so your taxable income is lower.

[ryanr]

The business can avoid paying taxes but when you want to transfer the earnings from the business to yourself via a draw, or paycheck or dividend you will eventually have to pay taxes. (trying to pay as little as possible is the goal)

[kellydukes]

I refer to Robert Kiyosaki as my "Rich Dad". I found his Rich Dad, Poor Dad book by chance at a yard sale, and since reading it, I've never looked back.

[ozc]

Great video Thanks to Mr. KIYOSAKI AND TOM for breaking it down in simple terms. This is valued content that I'm grateful for !!

[shahmirjadoon]

I am an engineer with 0% understanding of finance. But I am learning alot from Robert. Unfortunately, I haven't understand depreciation ...
Make more videos like this...

[breakthrough]

I love the bloopers at the end! It's refreshing to see a "real" person on youtube :) Also, the lessons are incredible

[harshavardhanirugu]

Thanks a lot for the imp info.
The only thing is, How can I read the last part with the ads covering half of it?