How rich people avoid taxes

28 Apr 2023

Watch on YouTube

This is a YouTube video titled "How rich people avoid taxes" featuring Neel Dhingra explaining strategies used by wealthy individuals to reduce or eliminate income tax liability through asset depreciation and tax code advantages. The content is educational and focuses on tax planning techniques involving real estate and other depreciable assets.

So do you ever wonder how rich people pay way less income taxes? In some cases, zero income tax? Well, the thing is, they use the tax code to their advantage, and you and I can do the same thing too. So what you want to do is find assets that you can depreciate. Now, depreciation is not an out of pocket expense. It's just something the IRS lets you deduct on your taxes. So while the property value could be going up, you get to take a massive deduction, which can come off of any other rental income that you have, or in certain cases, it could even come off of your overall income. So this is how rich people are using real estate and other large purchases such as heavy vehicles, to completely wipe out their tax obligation on a portion or in some cases, all of their income.