

TBT: Rich Dad Advisor, Tom Wheelwright on Tax-Free Wealth
9 snips Dec 6, 2024
Tom Wheelwright, a leading tax and wealth expert and bestselling author of Tax-Free Wealth, shares his insights on navigating the tax landscape. He discusses how understanding tax laws can transform them into opportunities for wealth creation. Tom emphasizes the advantages of depreciation for real estate investors, suggesting strategies to optimize tax benefits. He explores the limitations of using 401ks and IRAs for real estate, urging direct investments for better control. His engaging approach demystifies complex tax strategies, making them accessible and actionable.
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Tax Law as an Instruction Guide
- The tax law is an instruction guide on how to reduce taxes, not a tool for the government to take your money.
- Use tax incentives to your advantage to build wealth.
Three Types of Income
- Ordinary income is earned through active work, portfolio income is from investments, and passive income is from businesses you're not actively involved in.
- Real estate investors can utilize passive income and losses strategically to offset other income.
The Magic of Depreciation and Leverage
- Depreciation lets you deduct the cost of an appreciating asset, amplified by leverage.
- Use debt strategically to maximize depreciation benefits and reduce taxable income.