How the U.S. Tax System Works

[@karltondennis]

Subscribe to the channel to help us reach 1 million subscribers!!!

[@Gam1ngPhase]

Ok!

[@Gphilly819]

I’ve watched many CPAs prove your techniques and advice would land people in hot water and is fraud and tax evasion Please stop

[@eduardoluissantos1359]

Hi Karlton, when you buy the property and if you plan to do remodelations, is it better to do the cost segregation first and then the remodelations? If you already did the remodelations and get the cost segregation after is that bad? I am thinking that if you do the cost segregation first you are getting the benefits twice because you can do it again after remodelations, is that correct?

[@floydchusset3143]

I've lived in America and Canada. Paid about the same in taxes but get way more for my taxes in Canada. Most Americans hate the government (hate giving them their money even more) because they've never experienced good governance.

[@majidcoper]

I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.

[@michaellaw321]

My long-term investing methods are being disrupted by these regular changes to the tax code. Can I arrange my investments in a way that will make them more resistant to future changes to the tax code?

[@ANDYPADOVA]

I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.

[@JosephMartin7226]

For this reason, the United States should elect more progressive leaders who understand budgetary management and provide us (yep, the country's initials exactly spell that pronoun) with greater tax credits in exchange for improved public healthcare and education. However, since they don't exist, my spouse and I are being advised to use a diversified investment portfolio to pay for our healthcare and retirement.

[@iamlaurenmoe]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@JosephMartin7226]

Finding financial advisors like Sharon Ann Meny who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@iamlaurenmoe]

Thanks a lot for this recommendation. I just looked her up on google, and I have sent her an email. I hope she gets back to me soon.

[@nicolasbenson009]

These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?

[@sharonwinson-m8g]

I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.

[@tatianastarcic]

This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio

[@Vincent-j8u]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@tatianastarcic]

Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@TinaJames222]

Thanks a lot for this recommendation. I just looked her up on google, and I have sent her an email. I hope she gets back to me soon.

[@AmbientTonez-fr4pw]

Exactly this has been the most accurate video on you tube that I have seen in years

[@TCFruit]

I chose to subscribe because you get straight to the point and your videos are not long with unnecessary added talk. Thank you for information and getting to the point.

[@malachi9898]

Wealthy people do not "keep this information behind closed doors", the public school system does. Wealthy people actually are the ones that teach us this information.

[@the_luminary]

1000% !!!

[@jansah1]

I disagree. The information is published and shared openly in the tax code if you bother to read it for yourself rather than wait for someone to tell you. You are responsible for your own education. No one source can teach you everything you need to know to survive and thrive.

[@cameronpresley5771]

What if the information in this video is actually irrelevant to most? Most Americans shouldn’t be filing.

[@the_luminary]

@@cameronpresley5771 Hmm. So when do u say it is necessary to file?

[@adamfrausto9495]

If "I" am responsible for my own education then "I" should have been allowed to dictate what and when I learn. Since the public school system dictated what and when I learned then they should have at least explained the basics of the economy, money, & investment vehicles/strategies. Oh, not to mention how to even adult in general SMH.

[@WereNeverDuplicated]

This is short, and sweet. It's straight to the point, and very well said. 👏 Simplicity is what the best educators are made of.

[@ryanwilliams989]

The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.

[@StellaMaris-lv2uq]

I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.

[@hunter-bourke21]

The financial market is a reliable choice. Diversify your portfolio with I-bonds, stocks (ETFs, REITs, dividend-paying stocks), and bitcoin. Given your budget, I recommend hiring a fiduciary to ensure you receive professional insights for a fee.

[@maryHenokNft]

Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.

[@maggysterling33254]

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[@mzvon2s811]

I am currently in the process of educating myself once again on this topic. I've always sought to learn what the elite know... I've just never been able to apply it. Thanks for enlightening us!

[@Larry-d1c]

Real estate depreciation is a double edged sword. Down the road when you sell the property, you must pay capital gains on the depreciated value, not the sales price. It's a massive tax bill. I've been there.

[@AreYouFreeAreyouSure]

no, there is no Capital gains tax on American citizens. That would be an unapportioned direct tax in violation of Article 1, section 2 of the US Constitution. How in the world could the IRS even know about the sale of the house? The only way that I can think of that the IRS knows about the sale of your house is if 3rd parties involved in the sale of the house such as a Title company, Real Estate attorney, etc made the seller sign a W-9 along with a Taxpayer Identification Number such a a Social Security Number, and then the IRS received a 1099. Is that what happened in your case? Do you remember being asked to sign a W-9 form along with your SSN? There is absolutely no requirement for Americans to fill out a W-9 form, especially when selling their home. The federal government doesn't have any federal jurisdictionovern Americans selling their homes. Social Security Numbers are voluntary for Americans. Therefore, there is no way shape or form that the Federal Government can require Americans to provide a Taxpayer Identification Number such as a Social Security Number along with a federal government form such as a W-9 in order for an American citizen to sell their own property.

[@Larry-d1c]

@@AreYouFreeAreyouSure if the purchaser gets a mortgage, the mortgage company will require all of this.

[@AreYouFreeAreyouSure]

@@Larry-d1c just so I understand what you are saying (as I am not trying to argue or be confrontational with you, I just want to understand) are you saying that in your experience as a seller of your own property, the buyer's mortgage company demanded that you sign a W-9 with your Social Security Number?

[@Larry-d1c]

@@AreYouFreeAreyouSure yes. I had a mortgage also.

[@AreYouFreeAreyouSure]

@@Larry-d1c I see. Thanks for clarifying. The mortgage company is not following the law. If, and it's a big if, people understand the law when it comes to Social Security Numbers, they can avoid this situation of giving a SSN and signing a W-9 to a Mortgage/Title company. In fact, people have successfully sued 3rd parties like attorneys for holding up real estate transactions for refusing to close on a real estate transaction without the disclosure of a SSN/signing a W-9. The W-9 form is ONLY to be given by Withholding Agents. The full W-9 form is found here www.irs.gov/pub/irs-pdf/fw9.pdf On page 5 of the form, it says Part 2: Certification: "To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9." Withholding Agents are defined in 26 United States Code, section 7701(a)(16) as "The term “withholding agent” means any person required to deduct and withhold any tax under the provisions of section 1441, 1442, 1443, or 1461." 1441 deals with Non Resident Aliens. 1442 and 1443 deals with Foreign Corporations and Foreign Tax-Exempt Organizations. 1461 makes the Withholding Agent liable for the withheld tax from 1441-3. Notice how United States Citizens are absent? Withholding Agents do NOT withholding income taxes from Americans! As you can see, throughout the W-9 form, is ONLY dealing with FOREIGN entities and FOREIGN Income! If you look at page 2, it's all about Foreign Income regarding Foreign Persons and Non Resident Aliens. And at the bottom of page 2, it refers to Establishing US status for purposes of Chapter 3 and 4 withholding. This is referring to Chapter 3 and 4 of Title 26 The Internal Revenue Code. This is a HUGE clue! What is Chapter 3 of Title 26? Chapter 3 is "Withholding of Tax on Non Resident Aliens and Foreign Corporations. What is Chapter 4? Chapter 4 is: Taxes to enforce reporting on certain foreign accounts. Clearly, this W-9 form is for FOREIGNERS and FOREIGN INCOME ONLY! This form has NOTHING to do with reporting the domestic income of American citizens! Anyone who is demanding an American to sign a W-9 to report their own income is ignorant of this form! And clearly, there is a LOT of ignorant American companies using this form! The ONLY time a US Citizen would use and sign a W-9 is if they are acting as an intermediary between a Withholding Agent and the Foreign Person to who the money is being paid to. A W-9 should NEVER be given by an American company to a United States Citizen to report the Americans income because the W-9 is ONLY for WITHHOLDING AGENTS and Withholding Agents NEVER withhold income taxes from Americans, but only Non Resident Aliens and Foreign Corporations/Organizations! If you want to learn more about this W-9 issue, this booklet provides a thorough explanation drreality.news/product/business-w9-handbook/ The next time you sell your property, you will have the knowledge to refuse to give your SSN or sign a W-9 and you can sell your property in privacy without 1099's being sent to the government! Selling private property is NOT the federal government's business!

[@justinsean788]

This channel and content has given me the knowledge to stay hungry and motivated! Notification bell ON🙌

[@iloveyou281000]

I was recently penalized for being both the business owner and the employee. I’m learning about this tax game

[@TilSchweiger-i3f]

Your videos have been truly impressive! As one of your regular viewers, I've been following your content closely for a while now. I'm very interested in making an investment, but I’m still having trouble identifying the right opportunity to fully commit to. I would greatly appreciate any guidance or suggestions you might have in this area.>>

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[@pamelaleake9271]

Thank you! You don’t know what you don’t know. This is helpful information.

[@matt2424]

Damn I wished they taught this in school. Thank you for sharing knowledge in a simple, understandable way.

[@fansolate]

I really like the straight forward point u have giving and thank you for that ! Will follow u for more info!

[@MyWealthBuildersRealty]

Absolutely an amazing video. Thank you so much! I’ve been telling people this for years, and you just laid it out in a super easy way to understand.

[@bradrickrobinson7452]

This is so deep!!! Thank you so much for sharing!!!

[@IRSFRAUDEXPOSED]

deep and wrong learn the constitution and tax code - your fair share is ZERO if you do not have federal earnings - Google " losthorizons federal income tax in a nutshell " you are tricked into volunteering - want a real education ? then read " Cracking the code "

[@trytoplaypiano]

Thank you for sharing your knowledge! God bless you, Sir!

[@UNVME2024]

Great info Carlton! You are the best! I love all your content and everything you speak of is the way awesome people should help others with getting familiar with the game!

[@Joyce_Pete9443]

What about those of us without property and lower income LLC owners? How do we minimize our tax liability?

[@Lordxflvca]

TRUST!

[@JohnQPublic345]

get a good CPA

[@swerve_man]

Protect this man .

[@kenpeters9807]

Im a CPA with graduate degree in tax. Spend 4350-400/yr to a good tax CPA and if you listen, I’d guarantee you’’ make all that money back over a few years.

[@Liberty-fi7mg]

I don't have a Social Security Number. My parents never applied for one for me and I never applied for one for myself. I have my own business. My clients pay me in cash. The way I undestand it is that I cannot fill out a 1040 tax return without a Social Security Number. Isn't it true that you must have a Social Security Number to fill out a 1040 tax return? I see the section for the SSN on the 1040. It just seems to me that I cannot fill out and complete the 1040 return without a SSN. What do you think?

[@piomarcsuarezrn4656]

Thanks for the info brother. As a nurse , i often discuss financial aspect with my coworkers and let ne tell you that almost around 90% are part of the non educated group when it comes to taxes. I work with the hardest working people i know and i wish for them someday including me to master these loopholes 🙏

[@LADETROIT]

💯

[@daph2859]

Very concise. Thank you for taking the time to explain this

[@SteveLynch-q7y]

Awesome karlton I really appreciate your help and information, just getting started in rental properties and following you, will be reaching out to you soon thank you very much!!

[@glammother247]

Clear and to the point. Easy to follow. I think I can learn from you sir! Subscribing

[@geimimaspeaks5110]

Thank you broh. This was helpful.

[@Le.Phonzz]

Very knowledgeable dude.

[@RVAGrappling]

Where specifically in the tax code does the IRS Define short-term rentals?

[@sajidmuhammad1816]

Could you please list down all the us tax laws ? Like in Pakistan , we learn income tax ordinance , 2001 for direct taxes & sales tax act, 1990 for indirect taxes.

[@katherine9604]

If I rent a room in my house, that is my primary residence can I use that as the 7 day loophole?

[@joshuashakai4805]

The goat of taxesss

[@DaseinColeman]

Thank you!👊🏽🥃 keep it coming we’re listening.

[@coachknows]

Karlton, I have mad respect for you...but to say poor pay more in taxes is simply 100% untrue...however, I wont pretend to be some guy looking to poke at you...Much respect. You are much needed and you are extremely well spoken...you are awesome!

[@JonathanExcels]

If you buy a short term rental mid year, from what I have read you have to prorate the depreciation. Is there a way around that?

[@ohiomaimoukhuede6640]

I'm not trying to rain on your parade but this is slightly misinformation or at least half truths. For example you can't take a deduction for business travel unless it's ordinary and necessary in your business so you will need to justify how you need to do it for your business (its probably less likely to be checked by the IRS but you can't just live your life through a business. That's just tax fraud). You also can't take a loss for rental business against other income unless you can prove it's active which means you pretty much have to do it for a living. I fear that some of your strategies can land people in hot water if they ever get audited and I understand that you are trying to sell a product but I would encourage people to speak with a reputable CPA to assess the risks before implementing these strategies.

[@tanjagolden5402]

This is the same way Trump does not pay taxes. He used his loopholes...And you dont have to lie if you can present receipts. No bubble bursted here.

[@THEtaxstrategists]

@@ohiomaimoukhuede6640 wise and thoughtful comment!!

[@America-m2b]

Keep the content coming

[@PvbloGrey]

The tax strategy website isn’t up. I wanted to book a consultation.

[@Le.Phonzz]

What’s your credentials just curious ? Just someone who did the research or ?

[@BamaNiiji]

Thank you for sharing!🔥

[@ColoVito]

Great Content, Sincerely, ColoVito

[@tishabobbitt2624]

What happened if it's land? Do you still get the same leverage?

[@ILM2219]

Very clear!!!! Thank you... Well, done!

[@rubikscube6722]

I love your comment in your intro about “those people that don’t even know there’s a game going on”. How true is that?

[@tanjagolden5402]

Can you do all this without taking out a loan?

[@Kinnard1967]

greetings brother, count me in!! TYSM

[@lee-fr8oo]

Karton do a video on college loan in great detail the student loans are 63 or less separate loans combined into one i am very interested and intrigued about this to a high degree

[@PeacefulBeast-p2w]

Thank you very much for your insight

[@HeyItsMike985]

I signed up for your tax call link, not your specific one but your referral link to Uncle Kam and no one ever showed up to the call :(

[@42cru]

My great uncle Alex wrote in 1957 The wolf that comes knocking on many doors just had pups in my kitchen and fortunately I was able to sell them here's the check

[@Bullion911]

The principles spoken about here sounded like what it takes to get to financial nervana except the short term rental thing exclude that sounds like a nightmare to me long term rentals only.

[@jordanquinn4783]

SO TAP INTO REAL ESTATE? BET 🔥🔥🚀

[@matroskinmatroskin4175]

And one cannot claim Travel, Transportation or Meals as Expenses unless these are Business Related…

[@warrentoles3127]

Or education or recovery related

[@TeonBrown-qc1lh]

Thank you so much for the insight.

[@celinalima1194]

Thank you for the advice 😊

[@drewonaiyekan]

Brilliant presentation ❤❤

[@PirateKing42069]

Would I need to invest in properties as an LLC to decrease W2 income?

[@AD-yv6uq]

No you can max your 401k just be careful anything that goes in shouldn’t come out until 59 1/2 unless you’re ok with a 10% penalty tax lol

[@Joshuahawkins-e9s]

Please update these on SPOTIFY

[@Cornerstonecontractors]

Show me how to create cash flow!!!!! That's the name of the game. Just bought my 2nd piece of realistate this year. Only this one increased assets without debt.

[@envercito1]

How can I hire you to do my taxes?

[@venkateswararaomorla9903]

Thank for explain 👍

[@JoeDoe1]

Thank you Karlton.

[@eileenthedream]

Awesome channel 👌🏽

[@turbulence8638]

Can someone comment on the phase out of bonus depreciation.

[@erickstotle4285]

Hey what is you opinion about investing your money in life insurance such as IUL and annuities? (For example)

[@rayshanabrown3995]

Same.. real estate is where it's at.

[@oshifshushi282]

Ok, I see your point. But can I know as a small investor, investing in specific Real Estate stock can bring benefits for W2 taxpayers? Can IRS consider Qualified dividends instead of Ordinary Income after holding up to a year? Curious to know

[@sebastianlucas704]

I don't think riets can ever be considered qualified. However, I think that riet etf can be.

[@KarlaDennis]

@@sebastianlucas704 REIT dividends are usually taxed as ordinary income, not qualified dividends, even after a year. But you might get a 20% QBI deduction, which helps W2 earners.

[@durrell807]

Does homeownership give similar tax breaks?

[@AD-yv6uq]

If you’re speaking on a personal home yes you can use it towards itemizing same with charity which wasn’t explained correctly your expenses need to be higher than the standard deduction to itemize but they give you a high standard deduction which is good in the past it was whatever you can itemize now it’s a free $14,600 of income not being taxed

[@AD-yv6uq]

If you’re speaking on owning the rental there’s still benefits you start with a a basis and get depreciation plus a deduction for any repairs plus depreciation on any assets added over I believe $1,250 things like ac unit and refrigerator

[@RislinMLG]

This is a little misleading. It is very hard to be eligible to deduct your real estate losses against W-2 income. You need to be considered a real estate professional, which has a fairly high bar. Otherwise, any losses cannot be used to offset W-2 or 1099 income. Look up the passive activity loss rules. Do not go out and buy a rental property expecting it do this without talking to a qualified CPA.

[@THEtaxstrategists]

Thank you for joining me in calling out KD. He is going to get a lot of people in a bind in my opinion. Short term tax planning/cash flow planning to build a gigantic deferred tax liability or make a foolish investment. Seek professional advice

[@heiden2413]

not only that, they must open an llc or s corp, and be able to buy/transfer title property under your business entity which most people don't know, is very difficult with every working components involved with it lol

[@joshuamckeever1621]

⁠@@THEtaxstrategistsHas anyone reported him misleading or putting them in a bind? Otherwise, it is a false accusation. Be careful with words that too can be misleading.

[@macavelli8905]

Good video informative

[@adrees]

If you have a business that is unrelated to real estate then can you do residential real property that has nothing to do with your business and still write it off? Cuz it sounds like that’s what you are implying here.

[@ivegonemad]

That’s exactly what he means but you have to structure it right, and that gives you the tax Benefits

[@adrees]

@@ivegonemad how?

[@Darnetta-z9c]

Thank you 🙏 and God Bless you Carlton

[@702cody]

Well said. Flawless.

[@monstarz505]

This has been enlightening. 😊

[@cathycrayton1524]

Love you for educating everyone on tax strategies!

[@lauradahms4320]

You are not required to file taxes you do it of your own free will.

[@anthonybates8568]

I appreciate the information. Much Respect 💯✊🏿

[@mountainmover.s]

This was a video about Real estate more than it was how taxes work. Lol No thanks dude. Not interested in real estate. Now having my own LLC and learning how to work through taxes on any business would be more beneficial.

[@jansah1]

Love this video and agree with Karlton on everything but would make one change. Taxes come down to both how you make and how you spend your money-since we’re taxed at both ends. Otherwise, great video.

[@Hoolibumbum]

And what about depreciation recapture? The moment you sell the asset, Uncle Sam takes back all the incentives he “loaned” you. If you want out of the real estate investing game, it’s a hefty price isn’t it?

[@darsar1146]

how can you avoid paying taxes on hotel

[@selfmadesm2068]

Also about the Tax System it favors real estate and business owners. Also if you register as an S-Corp or C- Corp since they will have to put themselves on a reasonable wage for your business industry rate. They pay self employer not self employment tax. Also the former is tax deductible for the owners.

[@MoonLightOnWater1]

Genius….thanks for sharing!

[@sherlynnharris1710]

Wow! Thanks for this information.

[@AntD-c1c]

Good stuff

[@jpefutbol7094]

Excellent

[@yay568]

Do you know someone who ever filed form 4029

[@z.realb.onthelookoutforthe2860]

Boy, I need to try and afford them.

[@josephthigpen1563]

Good video

[@barberdannycutz8445]

Thank you sir!

[@kathymayfield6616]

Thank you 🙏

[@bhhvvbvgyvbuvv]

Taxes constitute slavery. System should allow for choice to pay income tax or give up voting. 90% of voters would give up voting if it meant no more income tax . The other 10% would have an easier time electing officials that actually have our best interest in mind.

[@kenpeters9807]

It’s a game, right. A $35 trillion deficit. A $30 trillion deficit. If we taxed 100% of the entire GDP we’d barely dent our balance sheet. Take all the money spent on war and troops in foreign countries and use it to reduce taxes.

[@rdtin8874]

Sorry, all of this just seems too good to be true. I’m a single mother trying to keep food and the lights on. I do thank God that we are healthy!

[@PlutoTradesz]

PRINT MONEY TO BUY BONDS TO PRINT MORE MONEY TO BUY MORE BONDS TO PRINT MORE MONEY LMAOOOOOO 😂😂

[@stefancherry8310]

Make sure you teach your students about the UCC codes and now you can leverage those codes to completely evade the tax system 💎💯❗

[@TheLethargicAge]

The mortgage interest “deduction” is a scam. You get to deduct only if it exceeds your standard deduction. Most working stiffs working for the bank, erm, paying a mortgage, don’t qualify.

[@RASSCAL16]

I stopped at secrets. Ain’t no secret no more

[@heiden2413]

part one: own a profitable business