Speaker 1: Hey, you guys that are earning two million dollars a year million dollars two million three million five million ballplayers rappers big earners Show you a little trick to the wealthy note your biggest expense in business If you got a talent or you got a business your business biggest expense is number one your taxes What the wealthy know is how to reduce their tax bill That's what you don't know that you got to get a handle on reduce your tax bill to literally zero and beyond. That's right, beyond. That's where you would get tax refunds or credits going forward to reduce your income, tax, federal and state to zero. How do you do that? I'm gonna show you. Anybody can do it. It's completely legal. And if you don't do it, come on. You're just not following the tips of the wealthy. I didn't grow up with wealth. I grew up and had to figure out how to take my talent, increase my income, reduce my tax bill, and then get my money to work for me harder than I worked for my damn money, okay? Welcome to Cardone Capital, Cardone Enterprises. Welcome to my company. I'm gonna show you how to play this game. I mean, why you play any game? To win. So if you're earning two million bucks a year, we're going to take that down to zero. You're going to keep earning your two million, but I'm going to show you how to use the two. So look, if you're earning a bunch of money, the goal is to take your earnings, reduce it to zero, still have the money, but take the money and invest it. So let's say you're earning $2 million a year. If you live in New York City, $1,000,000 of that is going to the IRS. That means you gotta figure out how to live on $1,000,000. And if you're a ball player, out of that came 200 grand for an agent, another 200 grand probably for a manager, and you're having to live on 800,000. If you buy a house for your mother, you're freaking broke again. So I'm gonna show you how to play the game. You earn 2,000,000, okay? Live on as little of this money as you can in the beginning. Do not spend earned income. Don't spend it. What you do is you invest it and use it in a second business and or real property. So let's say I take 200 million. The state's gonna take, you're still gonna have your $400,000 go to agents and managers. You got $1.6 million. I want you to invest as much of that $1.6 million into real property. Real property will buy you about $4.8 million worth of, in this case, real estate. That $4.8 million worth of real estate, because it's got real property, $4.8 million, for instance, in a deal that I'm doing right now, will provide you with $2.4 million worth of depreciation that reduces this tax bill of 1.6, after your managers, these are expenses, to negative $800,000 that can be CF, carry forward into future years. That means next year, if you earn $2 million, you're walking into that year with an $800,000 credit against your income. Now, you need to check with your tax attorney. You need to check with your accountant. You need to check with your manager and your agent, but I'll promise you all four of them are gonna tell you this guy's on to something. Get your earned income. Earned income needs to be zero and passive income. I need to invest in a new whiteboard. Your passive income of the, what do we say, $1.6 million that we invested and we have left over. We literally, I'm encouraging you literally, no watches, no houses in the beginning, okay? Don't spend any money on the stuff. No Ferraris. Take the 1.6, leverage it. It'll buy $4.8 million worth of real property. Okay, you wanna stay focused on your baseball, your basketball, your rap, and you wanna focus on your business. Or maybe you wanna invest this money back in your business and zero out, okay? You wanna reinvest in furniture, equipment. If you're a musician, into equipment, touring. Anything to do with your business, to grow your business. literally get your earned income to be zero. The tax bill on zero is zero. 61% of all citizens in the United States last year made no contribution to the federal income taxes. Your job is to make sure that you take your earned income, because you got a lot of talent, reinvest that money, okay, so that you can be better talent and or prepare for transition when you no longer have that talent. So this $1.6 million of earned income after your agent and your manager, you would invest and leverage three to four times by $4.8 million worth of real estate that would give you $2.4 million worth of depreciation. In the first year, it's a little complicated now, this is called accelerated depreciation, but this is the game. This is the game that the wealthy know how to use and that's why they tend to use all their earned income. Some of the biggest players in the world, they pay themselves zero, $1 a year. I think Mark Zuckerberg makes $1 a year, but he gets stock options, real property. This $2.4 million of depreciation, you get in 2021. If you use it all, you'll get it again in 22. If you don't use it all, you'll get it again in 2023, and you're gonna continue to do this every year. I'm gonna continue to do the same mechanism every year, reinvesting earned income, okay? So stay with me here, okay? Watch what's gonna happen. This $4.8 million worth of real estate, remember this, it's in the box. You own that, that's your position, okay? This $1.6 million that you invested should provide you with about $90,000 a year in income, passive income, okay? That's in year one. If you do this again in year two, that's gonna get you another $90,000 a year in passive income. That's 180 grand by year two. But in year two, you now have $9.6 million worth of real estate, real property that should be appreciating in value, providing you and your family with passive income. Now we're at about $15,000 a month in passive income. And you're starting to prepare third year, fourth year, fifth year. Now you're at $75,000 a month in passive income. You're going to exit your career because look, you got five years, maybe at max ball players, artists. You don't have forever. You're not going to be a 35 year baseball player or basketball player. So if you start multiplying these years in year two, I'm at 180,000. In year four, I'm at 360. At year eight, I'm at 700 grand in passive income per year. And that is not counting the value of the real property, which in this case, if I can take this out eight years, if you could duplicate this every year and not get a pay raise every year, eight years, eight times, if we did this every year, $4.8 million. You've paid no taxes for eight years in a perfect situation. And that would be $38,400,000 worth of real estate estate that is going up in value every year. If this just goes up 3% a year, I could take this out. And I'd say in the next 10 to 15 years, you'll have $100 million worth of real estate throwing out passive income. Most of the passive income is now not taxed at the highest rates. It's somewhere as low as 19% a year where you're paying 48 to 63, depending on whether you live in LA or New York or one of these crazy states. So look, check with your accountant, but what I'm telling you is real, it's legal, it's legit, and it's what the wealthy people do. I can't, I could go into another level of this that would be freaking incredible for you. In fact, I will right now. If this property becomes worth $100 million to you, doing the kind of real estate that we do, rents go up, as rents go up, what happens is the value of the property goes up. If this real estate is worth 100 million, and let's take this out eight years, you could actually go borrow. your family could borrow against this portfolio of real estate. Let's say we borrowed $60 million against this real estate. You could take out $40 million, just to blow your mind a second, more than you've earned, by the way, 5 million times eight years, more than you've earned in the five years of playing second base. Or shortstop, okay? Or bouncing your knees on a damn court. Bouncing those knees, dude. Sooner or later, your knees and your hips and your ankles, they're gonna quit. But your money shouldn't quit. Your money should last longer than your body lasts, okay? You could literally recapitalize, borrow on the hundred million. You cannot borrow on your career when your career is over. You can borrow on your real estate because it's never over. On this, you would borrow $60 million worth of debt, you'd be left with $40 million if this portfolio was paid off. You would walk away with $40 million. You still own the property because you want your family to own it so that you can pass it on to your next generations. This $40 million will go in your pocket, in your bank account, and the tax bill would be zero. That's right. You're basically borrowing money out of the future. This is what wealthy people do. Wealthy people buy assets. They take earned income from a talent, okay? They get money, they take the money, and they don't buy watches and bullshit and houses with it. What they do is they buy a business and or real properties with it. That real property provides you with a tax write off. Your earned income is zero over here because you reinvested the earned income. You didn't use the earned income. You didn't consume the earned income buying garbage. What you did was you reinvested the earned income into real property that throws you off passive income that over times will displace and replace your earned income so that you can live while you have an appreciating asset over here. Your talent is depreciating and your assets are e-appreciating, okay? Providing you with passive income. And then in the future, what they do is they'll borrow, not sell, okay? You're gonna borrow against assets, never sell. You don't sell, you borrow, okay? So if I have something worth 100 million, and you will, your talent will not be worth 100 million in the future, if you've got a talent, sooner or later it expires, okay? I can borrow against real property, real property that provides income the bank will give you a loan on, and you walk away with $40 million. Non-taxable event, and you could do this every 10 years. And still own the asset, fast forward 10 years, the 100 million's now worth 140 million. Another 10 years, the 140 million's worth 200 million. And each time you're taking out 40 million dollars a clip to take care of your family, to take care of your trips, to take care of your lifestyle. Look, it's real folks. I've done it, okay? I wanted to be a baseball player. I'm glad I wasn't, okay? I wanted to be a baseball player, but I couldn't make the game, okay? You are a ballplayer. You are a rapper. You're a comedian, an artist, okay? You're in a movie business. You're making a bunch of money right now. If you don't figure out how to reduce your tax bill to zero, doing what I just showed you, reinvesting in real assets to provide you and your family with income, reducing your tax bill to zero when you can and how you can, and by doing it legitimately and legal, by buying equipment. This is what all the big companies do, okay? Why should Facebook pay no taxes? Why should Apple not pay taxes? Why would Amazon get tax credits? And then you're sitting there because you're talented, you're paying and the full load of almost everybody in this United States of America. Hope this finds you well. If you like this video, let me know. If you find something wrong with it, hey, post below, don't just hate on me, man. At least post a comment. And if you like the channel, please do what you know you need to do, okay? Tax write-off, tax write-off. Entire facility tax write-off, okay? Tax write-off, not actually, because if I buy that, I can't write it off. It's called an entertainment facility. But if I rent it, I can write it off. Okay, hope this finds you well. Good luck, get that thing down to zero. Oh. you