In this short video, Catherine Bell and a co‑host discuss how high‑income earners can turn a large tax bill into a strategic investment rather than simply paying the government. They explain that investing in an oil‑and‑gas fund at year‑end can generate massive tax depreciation—illustrated with a $100,000 investment that yields about $95,000 of tax depreciation, leaving only $5,000 taxable. The fund also provides cash‑flow that returns the full $100,000, which can then be redeployed into other opportunities. Catherine stresses that not all investments serve the same tax purpose; investors must clarify whether they seek cash flow, appreciation, depreciation, or overall tax planning. The dialogue emphasizes the importance of proactive tax planning, using concrete numbers to show how reinvesting tax‑related cash flow can grow income year over year.
Chapters
You have to pay $1.6 million to the tax man.
Katia, what you were like, I saw how you were like, well, if you have to pay $200,000 in taxes, buy a $200,000 building, it's— there's only a percentage of that $200,000 you can write off, right? That's why it's important. So for instance, oil and gas, why we always do an oil and gas fund at the end of the year, because somebody, if they have a $100,000 tax bill, they can invest $100,000 into the oil and gas. Last year they got a tax.
Can I can I throw a time out? When you get an income and you get a tax bill, you have to pay either pay Uncle Sam or invest it. What works better? You're going to spend the money no matter what. There's people are like, how do you how do you get out of paying taxes? You invest it. So you literally have to have the money to do something with it. Like you can't get to the end of the year have no money left. This is where tax planning is important. That's why I'm interrupting here because. Tax time gives you that opportunity to plan for the end of the year when you got a tax bill. And when you got a $200,000 tax bill, we'll show you how to not pay taxes but reinvest it so that the next year you double your income or increase your income, not double it, increase it. Go ahead, finish what you were saying.
So last year, our oil and gas fund gave our investors a 95.6% tax appreciation. So they invested $100,000 and they got Uh, tax depreciation of $95,000, we'll just say.
And now, now all they have to pay taxes on—
$5,000. And they continue to get cash flow from that. So they're going to get their full $100,000 back from the cash flow of the deal. So they can now take that $100,000 and invest it into something else. Does that make sense?
Because if you pay taxes with it, you just open up learning centers in Minnesota. That's what you're doing.
Here's the piece that I want you to understand is that not all tax, not all investments have the same tax advantage. So you can, you can invest for different reasons. You can invest for cash flow, you can invest for appreciation, you can invest for depreciation, you can invest for tax planning. Like, there's a lot. That's why we have to be clear. It's not just one answer.
Is it?
There's multiple reasons that you can be Investing, and you need to know what the specific goal is for that investment because it's not a blanket answer.
Can we— can I run an example up here on the screen real quick?
And it's good to—
Go ahead and ask your question.
And I love that you're asking this, and it right now it may feel like it doesn't matter, but I promise you in the future it's going to matter. Because when we go in and out of these deals and you have money, I don't want you to think, woohoo, I got a windfall, now I can go buy, I don't know, Like a bunch of shoes, right? Like— I want Clydesdales. I want to plan for, yes, this profit is coming in and this profit needs to be allocated. We're gonna offset the taxes and keep growing it, right?
