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Wealthy Way

How The Rich Avoid Paying Taxes | Karlton Dennis

Jul 30, 2024
Karlton Dennis, a tax strategy expert and real estate investor, joins to unveil the secrets behind how the wealthy minimize their tax burdens. He breaks down the impressive benefits of depreciation and cost segregation studies, emphasizing their impact on tax savings in real estate. Listeners learn about the IRS requirements for real estate professionals and actionable strategies like using self-directed IRAs for retirement wealth. Karlton's insights inspire both seasoned investors and newcomers to leverage the tax code for financial success.
17:51

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Quick takeaways

  • Using depreciation and cost segregation studies can significantly lower your taxable income when investing in real estate.
  • Understanding how to qualify as a real estate professional is crucial for leveraging tax benefits effectively and maximizing deductions.

Deep dives

Understanding the Tax Game

The concept of taxes is framed as a game that the wealthy have mastered, enabling them to leverage the tax code effectively. Many wealthy individuals take full advantage of real estate investments, which provide substantial tax advantages compared to other ventures. This advantage arises primarily from depreciation, which allows property owners to report a paper loss on their income, thus offsetting their taxes on earned income. Learning these strategies is crucial for anyone seeking financial growth, as engaging with the tax system can lead to significant savings.

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