How To Never Pay Taxes

My name's Kris Krohn.  And this video is titled how to never pay taxes.  Now, I just have to throw up a real quick warning.  I'm not a financial adviser.  I'm not a lawyer, I'm not an accountant.  This is not legal advice.  And for any of you from theIRS that are watching this, today I'm just talking about all the friendly tax loopholes that come with being an American, thank you.  So, let's talk about taxes.  And first, I want you to understand my intent for making this video.  I love playing my share of taxes.  I am so proud of the country that I live in and I just have to live with the hope that those tax dollars are being spent as wisely as possible whether locally on hospitals and roads in the police department or at a federal level on the important programs that help our country be what it is today.  But there are some incredible, amazing tax loopholes and I'm going to share some concepts and ideas that you need to be researching that you need to be looking at.  Because you guys know thatI'm the real estate guy and I got to tell you that our Constitution favors real estate investors and it favors business owners.  So, I'm going to share with you what my journey of real estate has looked like and I want to share with you what you can do to not just mitigate or minimize but in many situations, eliminate tax burden altogether.  First of all, let's just look at the structure of how most people financially live their lives.  What ends up happening is we go to college, we get a piece of paper that says we're smart.  We'd get a job, we work for somebody else.  And we're stashing our money in different places.  We're putting it in savings.  But we're also putting it in places often like 401ks, we're putting it in IRAs.  And we're putting in annuities or maybe we're putting it in the stock market.  Maybe we're trying to pay off our house.  So, there are different things that we're doing with our money.  And I need you to understand something.  Sometimes people come into the misperception that if you put your money here that you're not gonna have to pay taxes.  The reality is some of these things are tax-deferred.  But you're still going to have to pay taxes. And even if you avoid the penalty by waiting to the appropriate age, you're still. .  You can't do anything to avoid taxes.  So, if you follow society's gameplan, not only are these often in hindsight, pathetic investments that are never gonna get you where you want to go anyway.  But more importantly, they're not really providing any tax shelter.  So today, I want to share a very different approach.  In the game of real estate, I want you to understand that while these investments are trying so hard to produce 5 to 8% returns, real estate has the power to produce 20% returns and beyond.  So, when we get into the game of real estate investing, I want to share with you some of the tools that not just produce higher returns but also have the ability to give you some empowering tax benefits.  When I buy a home my total ROI of 20%.  A part of that is made up of appreciation, paying it down.  But one of the factors is also what's my cash on cash.  What's my cash flow return.  Because this property is producing cash flow.  A lot of my properties are producing around 8%cash on cash return.  Which means I've put money in and I'm actually receiving this money.  But in so many cases that money will never go to the government.  Because our government, at least in this country, allows me to count something against this.  I get to count the interest against it and I get to account the depreciation. Now, that depreciation means that I get to take the whole value of the house in over 27, 28 years.  I get to chop it up and every year I get to write off a 27th.  I get to write off a chunk of it.  And what that means is that that chunkcounteracts the money I get.  So here I am I have a property.  Maybe I have a $350cash flow.  It goes right in my pocket.  And normally I should pay taxes on that but the depreciation goes against it.  When it comes time to sell this property, depreciation is going to come due.  They're going to say, "Well, you depreciated some of it.  Did you depreciate too much of it?" What we're going to do with this property is there are 2 strategies.  1, is we're going to do a cash-out refinance. And this is a tax-deferred event.  Which is very important.  That means that I keep the home, I pull money out of it so that I can put it in a brand new home.  Or I can also sell this home and do what's called a 1031 exchange.  And a 1031exchange is another way of deferring taxes.  Which by the way, I can keep deferring and keep deferring and keep deferring.  And as long as I'm deferring the taxes, my real estate goes into more homes or more homes in more homes.  My wealth grows, I get to live off of the cash flow.  I get to write off the depreciation then I get to pull the money out cash free this way. Get to pull the money out cash free that way.  And I'm going to rinse repeat and I'm going to do this over and over and over again.  This is whywhen people get to a point in their life where they're either making good money but they're paying too much in taxes.  Heck! If you feel like you're paying too much in taxes, if you're feeling like a buck is too much to pay in taxes, it'time for you to get the write-off of starting a business.  And it's time for you to get the write-off of starting real estate.  2 magical things will happen.  1, your taxes are going to go down.  Number 2, your income is going to what? Hello!Make more money, pay fewer taxes.  I mean that really is the best and most ideal of circumstances.  There are tax strategies that go beyond this.  And I want you to know that I've outlined these.  I've detailed them in my book, Unstoppable.  How to go from nothing to Millions with the ultimate real estate game plan.  And all you need to do is click the link below and then go ahead and get my book for free.  You got to cover the shipping.  I'll actually send it to you in the mail.  And if you want, you can even do a free game plan with my team.  Which means we'll get your financial shoes and share with you what you can do to put yourself in a position where you can increase your income, decrease your taxes. And actually, give yourself a realistic game plan for financial freedom instead of this one that we all know is broke and ain't going to work.  Thank you so much for watching today guys.  Click the link below.  Get the book. Subscribe.  I got more videos like this coming your way.