November 7, 2024 • 11 mins
Ever wonder how the wealthy pay so little in capital gains taxes while continuing to grow their wealth? In this podcast, we cover the top strategies they use and how you, as a business owner, can apply these SAME techniques to lower your taxes.
Find out why banks are so eager to lend large sums of money to high-net-worth individuals, allowing them to build even more wealth while paying less in taxes. You don’t need to be a billionaire to take advantage of this video—learn how you can keep more of your money!
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*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this ...
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Let's talk about how the rich people avoid paying
capital gains taxes.
Now, it's no secret that richpeople, on average, pay less in
taxes than the average American.
Now how can you, the businessowner, the profitable business
owner that now has all theseprofits in the business how can
you use the exact samestrategies?
(00:22):
How can you copy the rich sothat you can pay less in taxes
than your neighbor?
We're also going to talk abouthow is it and why is it that the
banks are willing to give somuch money to wealthy
individuals so they canreproduce more income, reproduce
more wealth and, at the sametime, not paying as much taxes
(00:43):
as the average person?
Let's learn how to copy therich.
Ready, let's get started.
Speaker 2 (00:49):
Welcome to the Tax Reduction Podcast for
money-making entrepreneurs withBoris Mushaev.
Boris has helped entrepreneursacross the United States
collectively save millions ofdollars in taxes with the power
of tax planning and advisory.
The only way you, the businessowner, can save money on taxes
is by using proactive taxstrategies, and this podcast is
(01:09):
all about saving you money ontaxes.
Boris will share with youin-depth and easy-to-understand
tax reduction strategies thatyou can implement in your
business within 30 days or less.
Let's jump into today's episode.
Speaker 1 (01:22):
All right, awesome.
Now let's get started.
Let's jump into today's episodestrategies.
And they have a tax advisor.
So if you don't have a taxadvisor, you've got to get
(01:44):
yourself a tax advisor.
Now what they do with theirmoney is that they start
investing in assets, whateverthat may be.
That could be real estate, thatcould be art collection, that
could be coin collection, thatcould be other businesses, that
could be stocks and commodities,whatever that may be.
When rich people become wealthybecause of the assets that they
(02:06):
invest in, they becomeattractive to the banks.
Let me show you this example,this recent article that I read
in Bloomberg.
Check it out, mr B.
Can we pull it up on the screenNow?
In this article, it says that awealthy individual, a client of
a Bank of America, put up hisart collection.
Okay, think about this Put uphis art collection as a
(02:30):
collateral to be able to takeout a loan to buy a sports
franchise.
Now what does that even mean?
You see, this wealthy individual, who is also an art collector,
happens to be very smart, justlike other wealthy people that
know what to do with their moneyand use tax strategies.
He thought to himself hey,right now I'm not sure if I want
(02:50):
to sell my art collection andif I do sell my art collection
now.
I'm just right now speculatingwhat he thought, what he was
going through his thoughtprocess right Now.
If I do sell my art collection,I am going to end up paying
capital gains taxes on that artcollection.
So let's assume that artcollection was $10 million.
I'm just making this number up.
(03:11):
If he would have sold it for$10 million, he would have paid
23.8% of capital gains tax.
Now you might say Boris, wait asecond.
I thought that the federalmaximum limit of capital gains
is 20%.
That is true, but we also havewhat's called a net investment
income tax.
It's a hidden tax that goes ontop of your regular capital
(03:34):
gains tax on the sale of theassets if your income exceeds a
certain threshold.
So in this case it would be23.8% of federal income tax.
Now if you're in a state suchas New York or California, you
can imagine what the stateincome tax rate would be.
It would kill this artcollector with the taxes.
What this person decided to dolike hey went to the bank and
(03:54):
said hey, I've got this artcollection, but I want to buy a
franchise.
How about I put it up as acollateral.
Okay, I put it up as acollateral.
This way, you give me the money.
Now, remember, loans are nottaxable.
Now, this collector havedecided to use the loan against
the collateral.
Now, this collector also keptthe possession of his art
(04:17):
collection.
But, most importantly, hereceived a lot of money from the
bank because he is attractiveto the bank because of the
assets that he owns.
Now, he used that money to buya sports franchise.
Now, we're not even gonna talkabout the deductions that he's
probably got from that purchaseif it was an asset purchase.
This is what wealthyindividuals do they accumulate
(04:38):
assets and banks are giving themmoney for those assets.
Now, in the next segment, we'regoing to talk about how you,
the profitable business owner,can copy the strategy like this
one.
Now, you don't need to be anart collector, so to speak, to
do this, but how can you copythis strategy in your everyday
life, in your business and withthe assets that you own?
(04:59):
Right after this break?
Speaker 2 (05:01):
If you have a tax preparer and you do not have a
tax advisor, the only way youcan save money on taxes is by
using proactive tax planningstrategies that only a tax
advisor can give you.
Bora's put together a free PDFfor you, the business owner
Seven tax write-offs everyS-corporation business owner
must know.
In this PDF you can find seventax strategies that you can
(05:25):
start using in your business toinstantly start saving money on
taxes.
Click on the link in thedescription below for a free
download.
Speaker 1 (05:32):
Okay, welcome back Now.
We talked about how is it thatthe rich people avoid paying
capital gains taxes.
Now let's talk about how you,the business owner, so to speak,
can copy the exact samestrategies in your business.
Before we continue, I want tobring this clip to your
attention from Robert Kiyosaki Iam a billionaire in debt.
Speaker 3 (05:54):
You know why?
Because I get tax breaks forborrowing money.
Then what with it?
I have to invest it to makemore money.
Let's say I own a commercialbuilding.
I buy it for a million dollars.
It goes up to $10 million.
Most guys would sell it A basisof $1 million to a basis of $10
.
I have a $9 million capitalgain Instead of selling it,
(06:17):
flipping it like those flippersdo.
I don't flip, I don't sell.
See the moment you sell.
As you know, as an attorney,you've now executed a capital
event, a taxable event.
So what I do is I buy aproperty for a million.
It goes to $10 million.
I'll borrow out five tax-free.
That's why there's no financialeducation in schools, because
if you knew how to handle debt,you wouldn't save that crappy
dollar you have in your hand.
(06:37):
I'd rather borrow the moneytax-free.
Speaker 1 (06:39):
All right, we got the point right.
So Robert Kiyosaki for those ofyou that don't know, he's the
author of Rich Dad, Poor Dad,one of the greatest books
written.
If you haven't read that book,I personally recommend.
But his main strategy is likehey, I basically buy real estate
and my real estate appreciatesan income excuse me, appreciates
(07:00):
in value and instead of sellingit, I go to the bank and say,
hey, I've got this real estate,my loan on this is this much,
but it's actually worth a lotmore.
I'd like to take out a loanagainst it.
The banks will happily say, yes.
Instead of selling the asset,what basically he's doing is
taking the debt under this assetto invest more.
(07:22):
Now let's take a step back fora second.
Understand that debt managementis a serious skill to have
Wealthy individuals, rich people.
They know how to manage debtright.
They surround themselves withprofessionals that help them to
do that.
That's why I always say hey.
If you're working, for example,with a tax preparer, a regular
(07:43):
accountant, you're overpaying intaxes because you're not using
tax strategies, You're notworking with a tax advisor and
you're not surrounding yourselfwith professionals to help you
pay less in taxes.
So wealthy individuals surroundthemselves with professionals
and they learn how to managedebt.
They have financial education.
Now, if you can't manage debt,then obviously don't do this
(08:05):
strategy.
But as you become rich and youstart generating profits good
profits from your business andstart investing it into real
estate, then you'll learn, so tospeak, or really start
investing in any other assetsyou know.
You're buying businesses,commodities, securities or, like
I said, real estate, estate.
What happens?
That you're learning, hopefully, how to manage some of the debt
(08:28):
, and that is the skill that youneed to acquire.
Because what happens is whenyou buy real estate, real estate
is one of the investments,right, you're not going to go
ahead and buy art collection,unless you're into art, but
you're going to buy real estate.
Real estate is going to give youdepreciation.
That depreciation is adeduction against your rental
(08:48):
income, For example, if youstart investing in apartment
complexes or commercial property, that depreciation will produce
a loss.
That loss will be deductedagainst your highest taxable
event, which is your earnedincome.
That will produce deductions.
At the same time, the realestate it grows in value and
(09:10):
banks will be willing to giveyou more money against your real
estate.
So you can do with it whateverit is that you want.
Now you have to understand, asa business owner, what you
control is your income right?
As a business owner, youcontrol income how much money
you make.
You know how much money youmake.
You know how to execute it.
The next step, right After thestep of becoming rich and
(09:33):
becoming rich, means knowing howto produce income and having
cash.
The next step is to invest thatinto the real estate.
Make yourself so attractive tothe banks that they're willing
to give you more and more ofthat money so that you can
invest.
You don't have to sell the realestate that you own.
All you have to do is borrowagainst it to invest more.
(09:55):
Obviously again, you have tothread the waters carefully, so
to speak, and you need to knowwhat you're doing.
Robert Kiyosaki gave an example.
Hey, if I buy commercialproperty for a million dollars,
I sell it for 10, I'm going tohave a taxable capital event of
$9 million.
I don't want to do that and Idon't want to flip it.
What I'm going to do is I'mgoing to go to the bank and I'm
(10:16):
going to say, hey, it increased$9 million in value.
How about you give me $5million?
They're going to give you $5million.
That $5 million can now be usedor he probably uses it to
invest in other real estatewhile not paying any income
taxes on the $5 million.
Now, this is not a new conceptthat Robert Kiyosaki, for
(10:38):
example, invented.
A lot of rich people, a lot ofwealthy people with smart
professionals around them, usethese exact strategies to avoid
paying taxes on the capitalgains.
They actually intentionallyavoid it, Like why would I sell
this asset when I still keep it,can still take out money
(10:59):
against it and instead invest?
I hope this was helpful for you.
Thank you, Until the next timeno-transcript.
Let's talk about how the rich people avoid paying
capital gains taxes.
Now, it's no secret that richpeople, on average, pay less in
taxes than the average American.
Now how can you, the businessowner, the profitable business
owner that now has all theseprofits in the business how can
you use the exact samestrategies?
(00:22):
How can you copy the rich sothat you can pay less in taxes
than your neighbor?
We're also going to talk abouthow is it and why is it that the
banks are willing to give somuch money to wealthy
individuals so they canreproduce more income, reproduce
more wealth and, at the sametime, not paying as much taxes
(00:43):
as the average person?
Let's learn how to copy therich.
Ready, let's get started.
Speaker 2 (00:49):
Welcome to the Tax Reduction Podcast for
money-making entrepreneurs withBoris Mushaev.
Boris has helped entrepreneursacross the United States
collectively save millions ofdollars in taxes with the power
of tax planning and advisory.
The only way you, the businessowner, can save money on taxes
is by using proactive taxstrategies, and this podcast is
(01:09):
all about saving you money ontaxes.
Boris will share with youin-depth and easy-to-understand
tax reduction strategies thatyou can implement in your
business within 30 days or less.
Let's jump into today's episode.
Speaker 1 (01:22):
All right, awesome.
Now let's get started.
Let's jump into today's episodestrategies.
And they have a tax advisor.
So if you don't have a taxadvisor, you've got to get
(01:44):
yourself a tax advisor.
Now what they do with theirmoney is that they start
investing in assets, whateverthat may be.
That could be real estate, thatcould be art collection, that
could be coin collection, thatcould be other businesses, that
could be stocks and commodities,whatever that may be.
When rich people become wealthybecause of the assets that they
(02:06):
invest in, they becomeattractive to the banks.
Let me show you this example,this recent article that I read
in Bloomberg.
Check it out, mr B.
Can we pull it up on the screenNow?
In this article, it says that awealthy individual, a client of
a Bank of America, put up hisart collection.
Okay, think about this Put uphis art collection as a
(02:30):
collateral to be able to takeout a loan to buy a sports
franchise.
Now what does that even mean?
You see, this wealthy individual, who is also an art collector,
happens to be very smart, justlike other wealthy people that
know what to do with their moneyand use tax strategies.
He thought to himself hey,right now I'm not sure if I want
(02:50):
to sell my art collection andif I do sell my art collection
now.
I'm just right now speculatingwhat he thought, what he was
going through his thoughtprocess right Now.
If I do sell my art collection,I am going to end up paying
capital gains taxes on that artcollection.
So let's assume that artcollection was $10 million.
I'm just making this number up.
(03:11):
If he would have sold it for$10 million, he would have paid
23.8% of capital gains tax.
Now you might say Boris, wait asecond.
I thought that the federalmaximum limit of capital gains
is 20%.
That is true, but we also havewhat's called a net investment
income tax.
It's a hidden tax that goes ontop of your regular capital
(03:34):
gains tax on the sale of theassets if your income exceeds a
certain threshold.
So in this case it would be23.8% of federal income tax.
Now if you're in a state suchas New York or California, you
can imagine what the stateincome tax rate would be.
It would kill this artcollector with the taxes.
What this person decided to dolike hey went to the bank and
(03:54):
said hey, I've got this artcollection, but I want to buy a
franchise.
How about I put it up as acollateral.
Okay, I put it up as acollateral.
This way, you give me the money.
Now, remember, loans are nottaxable.
Now, this collector havedecided to use the loan against
the collateral.
Now, this collector also keptthe possession of his art
(04:17):
collection.
But, most importantly, hereceived a lot of money from the
bank because he is attractiveto the bank because of the
assets that he owns.
Now, he used that money to buya sports franchise.
Now, we're not even gonna talkabout the deductions that he's
probably got from that purchaseif it was an asset purchase.
This is what wealthyindividuals do they accumulate
(04:38):
assets and banks are giving themmoney for those assets.
Now, in the next segment, we'regoing to talk about how you,
the profitable business owner,can copy the strategy like this
one.
Now, you don't need to be anart collector, so to speak, to
do this, but how can you copythis strategy in your everyday
life, in your business and withthe assets that you own?
(04:59):
Right after this break?
Speaker 2 (05:01):
If you have a tax preparer and you do not have a
tax advisor, the only way youcan save money on taxes is by
using proactive tax planningstrategies that only a tax
advisor can give you.
Bora's put together a free PDFfor you, the business owner
Seven tax write-offs everyS-corporation business owner
must know.
In this PDF you can find seventax strategies that you can
(05:25):
start using in your business toinstantly start saving money on
taxes.
Click on the link in thedescription below for a free
download.
Speaker 1 (05:32):
Okay, welcome back Now.
We talked about how is it thatthe rich people avoid paying
capital gains taxes.
Now let's talk about how you,the business owner, so to speak,
can copy the exact samestrategies in your business.
Before we continue, I want tobring this clip to your
attention from Robert Kiyosaki Iam a billionaire in debt.
Speaker 3 (05:54):
You know why?
Because I get tax breaks forborrowing money.
Then what with it?
I have to invest it to makemore money.
Let's say I own a commercialbuilding.
I buy it for a million dollars.
It goes up to $10 million.
Most guys would sell it A basisof $1 million to a basis of $10
.
I have a $9 million capitalgain Instead of selling it,
(06:17):
flipping it like those flippersdo.
I don't flip, I don't sell.
See the moment you sell.
As you know, as an attorney,you've now executed a capital
event, a taxable event.
So what I do is I buy aproperty for a million.
It goes to $10 million.
I'll borrow out five tax-free.
That's why there's no financialeducation in schools, because
if you knew how to handle debt,you wouldn't save that crappy
dollar you have in your hand.
(06:37):
I'd rather borrow the moneytax-free.
Speaker 1 (06:39):
All right, we got the point right.
So Robert Kiyosaki for those ofyou that don't know, he's the
author of Rich Dad, Poor Dad,one of the greatest books
written.
If you haven't read that book,I personally recommend.
But his main strategy is likehey, I basically buy real estate
and my real estate appreciatesan income excuse me, appreciates
(07:00):
in value and instead of sellingit, I go to the bank and say,
hey, I've got this real estate,my loan on this is this much,
but it's actually worth a lotmore.
I'd like to take out a loanagainst it.
The banks will happily say, yes.
Instead of selling the asset,what basically he's doing is
taking the debt under this assetto invest more.
(07:22):
Now let's take a step back fora second.
Understand that debt managementis a serious skill to have
Wealthy individuals, rich people.
They know how to manage debtright.
They surround themselves withprofessionals that help them to
do that.
That's why I always say hey.
If you're working, for example,with a tax preparer, a regular
(07:43):
accountant, you're overpaying intaxes because you're not using
tax strategies, You're notworking with a tax advisor and
you're not surrounding yourselfwith professionals to help you
pay less in taxes.
So wealthy individuals surroundthemselves with professionals
and they learn how to managedebt.
They have financial education.
Now, if you can't manage debt,then obviously don't do this
(08:05):
strategy.
But as you become rich and youstart generating profits good
profits from your business andstart investing it into real
estate, then you'll learn, so tospeak, or really start
investing in any other assetsyou know.
You're buying businesses,commodities, securities or, like
I said, real estate, estate.
What happens?
That you're learning, hopefully, how to manage some of the debt
(08:28):
, and that is the skill that youneed to acquire.
Because what happens is whenyou buy real estate, real estate
is one of the investments,right, you're not going to go
ahead and buy art collection,unless you're into art, but
you're going to buy real estate.
Real estate is going to give youdepreciation.
That depreciation is adeduction against your rental
(08:48):
income, For example, if youstart investing in apartment
complexes or commercial property, that depreciation will produce
a loss.
That loss will be deductedagainst your highest taxable
event, which is your earnedincome.
That will produce deductions.
At the same time, the realestate it grows in value and
(09:10):
banks will be willing to giveyou more money against your real
estate.
So you can do with it whateverit is that you want.
Now you have to understand, asa business owner, what you
control is your income right?
As a business owner, youcontrol income how much money
you make.
You know how much money youmake.
You know how to execute it.
The next step, right After thestep of becoming rich and
(09:33):
becoming rich, means knowing howto produce income and having
cash.
The next step is to invest thatinto the real estate.
Make yourself so attractive tothe banks that they're willing
to give you more and more ofthat money so that you can
invest.
You don't have to sell the realestate that you own.
All you have to do is borrowagainst it to invest more.
(09:55):
Obviously again, you have tothread the waters carefully, so
to speak, and you need to knowwhat you're doing.
Robert Kiyosaki gave an example.
Hey, if I buy commercialproperty for a million dollars,
I sell it for 10, I'm going tohave a taxable capital event of
$9 million.
I don't want to do that and Idon't want to flip it.
What I'm going to do is I'mgoing to go to the bank and I'm
(10:16):
going to say, hey, it increased$9 million in value.
How about you give me $5million?
They're going to give you $5million.
That $5 million can now be usedor he probably uses it to
invest in other real estatewhile not paying any income
taxes on the $5 million.
Now, this is not a new conceptthat Robert Kiyosaki, for
(10:38):
example, invented.
A lot of rich people, a lot ofwealthy people with smart
professionals around them, usethese exact strategies to avoid
paying taxes on the capitalgains.
They actually intentionallyavoid it, Like why would I sell
this asset when I still keep it,can still take out money
(10:59):
against it and instead invest?
I hope this was helpful for you.
Thank you, Until the next timeno-transcript.
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