Rich Habits Podcast

127: How to Pay Less in Taxes w/ Karlton Dennis

96 snips
Jul 21, 2025
Guest
Karlton Dennis
Karlton Dennis, a savvy tax strategist and YouTube sensation, shares invaluable insights on reducing tax burdens. He discusses proactive tax strategies tailored for various income levels, empowering listeners to optimize their financial situations. Key topics include the benefits of S corporations for high earners, important updates from recent tax reforms, and unique savings plans like the 'Trump account' for children's funds. With practical advice and real-life examples, he illustrates how savvy tax planning can lead to significant wealth building.
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INSIGHT

Proactive Tax Planning is Key

  • Taxes are a major expense often ignored until making significant income.
  • Proactively forecasting and planning tax strategies during the year reduces tax bills effectively.
ADVICE

Use Roth Accounts Early

  • Under $100K income, prioritize paying taxes to invest in Roth accounts for tax-free growth.
  • At six figures, consider switching between Roth and traditional 401k to optimize taxable income reduction.
ADVICE

Create Active Losses with Rental Properties

  • W-2 employees should generate active losses via short-term rental real estate investments.
  • Material participation and cost segregation studies can enable large offsets to W-2 income through depreciation.
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