How Do The Rich Avoid Paying Taxes? (#82)

 

Almost all of us have heard that how the Rich people get away with Paying literally 0$ in Federal Income Taxes, LEGALLY....

Have you ever wondered, how do they really get away with it.... Pretty sure you did.... 'cuz I know that it's the Curiosity that brings you here. Isn't it?

Okay! Well.... Today we'll take a deep dive into what are the tricks & strategies, the millionaires & the billionaires.... Rich in short.... actually use to avoid paying Taxes....

So, let's take a deep dive right into this article's topic & get started....

So here we go....

Talking 'bout the first thing the Rich do is that they Invest in Real Estate, Share Market, Bonds & multiple such assets in which their money will just keep on Compounding over time!

Now, the term Invest won't really seem that surprising.... 'cuz like everybody nowadays invests but are anyways taxed!

Well, first now I wanna let y'all know that if for the Income there is Income Tax then for the Investments in stocks, bonds, etc., there is Capital Gains Tax which is charged on the profit we've earned from an investment & hence, so it is charged only when we've sold the asset!

Even though the Capital Gains Tax is way less then the Income Tax. Many Rich People just don't bother paying the Capital Gains Tax, either.

& that's the thing many people miss out...., you know, the rich would be taxed too only if they sell their assets & convert them into real money!

& that is just where they play Smart!

They never really Sell!

So, how do the Rich support there lifestyle?

Well, they borrow! Now, the "Rich & Borrowing Money" may not go along that well! —like it kind of seems out of the topic thing, you know.

But it's pretty obvious for them!

Don't Worry I'll explain!

So, they actually borrow money subject to their wealth, so that they can support their lifestyle without having to take the money out of their assets & being taxed &; so they instead opt to keep their money in the Assets as it's just multiplying, you know simply working for'em!

—This is actually made possible by a tool the Rich use.... It is called SBLOC & it stands for "Securities Based Lines Of Credit". Well, basically this tool allows an individual to keep some percentage like- 70% or something of their portfolio as collateral & then be able to possess the cash within a few days, tax free.

But there are certain rules & also many times their can be consequences in case of the value of the portfolio decreases!

To know all about SBLOC's; Read: What Is SBLOC? How Does It Works? Everything You Need To Know About SBLOC! Explained In Simple Terms!

Anyways,

So, eventually many millionaires money just give out so many returns within a lifetime that they become Billionaires, but guess what?!

They still do not take their money out of the Stocks & Bonds & Real Estate.... & their massive amount of Money tends to make/keep their generations Rich...., & this thing is a part of the " Buy, Borrow & Die" System.

So, the "Buy, Borrow & Die" System is basically such a thing that when a person who owns the money even Billions & Millions in Stocks, Bonds & all these Assets; & if these people dies, then it'll be converted to their descendant's (kids or other family members) & the profit the Assets will earn after it've been officially converted to their descendants and it basically means that those Assets belongs to them, now...., WILL BE THE ONLY AMOUNT THAT'LL BE SUBJECT TO TAX; & THAT TOO IF, AGAIN, IT'S IN CASE CONVERTED INTO RELA MONEY!

So, if they sell then they'll basically be Taxed a bit & the profit of all those uncountable past years & that massive amount will just be left untaxed!

& that is how the Rich manage to remain Rich; next, they teach their children 'bout Money!

So, we know that the Rich just play Smart while the Poor just don't!

It's just more knowledge about Finances, Taxes & stuff that helps them to figure out the loopholes & finally saving up a ton of money for themselves & their families/their upcoming generations.

& the fact that it's all Legal is what makes this all even more mind-blowing!

Now, you know why is Financial Literacy so Important?

"The Rich ain't built different, they are just taught to think different especially in terms of money!"

— Me! (it's wise tho & like a real quote!)

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Have A Great Time, Ahead! ☺️