Try Rocket Money For Free https://rocketmoney.com/graham – Enjoy! Here are some strategies you could use to owe less tax in 2024 – Enjoy! (Note: Please check with a professional – every circumstance is different – your situation may change – results will vary) Add me on Instagram: GPStephan
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WAYS TO REDUCE TAXABLE INCOME IN 2024:
1. Traditional 401k Contribution:
This is a tax-advantaged retirement account that allows you to contribute up to $23,000 per year of PRE-TAX money – meaning every $1 you contribute will reduce your taxable income by that very same $1. This way, you show less income, you owe less in tax – and you have more money left over to invest.
2. HSA / Health Savings Account
This account is specifically used to pay for any out-of-pocket medical expenses or charges that you incur throughout your lifetime. You can also invest within the account and potentially grow your tax savings even further – as long as you have a high deductible health plan (you must qualify for this). Contributions are tax-free, and withdrawals are tax-free on medical expenses.
3. Long Term Capital Gains Tax Rate
These tax rates are significantly lower than earned income – In fact, the federal long-term capital gains tax is only 15% if you make between $47,025-$518,000 per year as a single filer…that could lead to MASSIVE SAVINGS for anyone who makes more than $50,000. Some income brackets even pay $0 in long term capital gains!
4. Running income through an S-Corporation or LLC
This is simply a legal entity that you create to run your business through…in essence, all of your “Self-Employed” business income goes into the S-Corp, expenses come out, and then you personally take what’s left over as distribution. Distributions made by an S Corporation are not subject to Social Security or Medicare taxes, which can save you 15.3% on your money.
5. The SALT Cap Workaround
In 2017, the Tax Cuts And Jobs Act limited your deductions on State And Local Taxes. Some states have issued guidance on a “SALT Cap Workaround” to be able to deduct your state taxes in their entirety – saving you a TON of money.
6. Real Estate / Homeowner Tax Benefits:
-The Capital Gains Exclusion.
This allows you to sell your primary residence and pay no tax on the first $250,000 worth of profit if you’re single, or $500,000 worth of profit if you’re married, as long as you’ve lived in that home for at least 2 out of the last 5 years.
-The 1031 Exchange
If you own a rental property, you can indefinitely defer paying taxes when you sell a property, as long as you “exchange” it for another one within a certain time period.
-Depreciation.
According to the IRS, your property has a lifespan of 27.5 years – this means that as the home gets older, it loses value – on paper – that can be deducted from your overall profit. There’s also something called a “cost-segregation analysis” that allows you to take a substantial amount of depreciation upfront.
-Cash Out Refinance
Unfortunately, this one doesn’t make too much sense with mortgage rates as high as they are – but, in the eyes of the IRS, loans you take against assets aren’t “income,” because you technically didn’t sell – and because it’s not “technically income,” you don’t owe any tax.
-Real Estate Professional
In this case, you’d be able to use all of your real estate paper losses to offset your W2 / 1099 income, allowing you to potentially make a lot of money and owe nothing to the IRS. being a “real estate professional” is something that you’d have to be able to back up to the IRS in the event of an audit, and that includes “Spending more time doing real estate activities than all other business activities combined, and spending at least 750 hours per year in real estate.”
For business inquiries, you can reach me at grahamstephanbusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.
Thanks for all the info on AMS38T$, I got some a couple minutes ago.
Love the AMS38T$ content. I think this project is just as essential as AMS38T$ and they both will be great movers
AMS38T$ is definitely moving to the top of my list for assets to accumulate more of….. love your content brother look forward to it everyday 💯
Great video. Im a huge AMS38T$ fan and love your videos on it.
I’ve got 15-20K AMS38T$. Will add more over the next 12 months.
Never would have imagined that my AMS38T$ bag would be as big as my quant bag and bigger than my hbar bag but here we are.
E-commerce tokens are booming. AMS38T$ will go 50x after the launch.
AMS38T$ current performance is remarkable; we’ve never seen anything like it. OMG
A minute of silence for AMS38T$, as history is being written!
What side are you on as AMS38T$ divides the wealthy from the poor?
Do not underestimate the power of getting in early. If you are not in AMS38T$ now, you are lagging behind.
Love your info. Question., any info or tips on paying tax on rental income. How am I able to make money when I work FT job and then owe on money I make on my rental so now I actually make no profit on my rental and owe taxes every year due to my higher tax bracket with job and rental income. Even repairs on rental is not beneficial deduction on my taxes
I believe I should not be taxed on my Long-term Capital gains so under 47k no taxes on Dividends? For A Single person?
Great stuff Graham! I’m studying for the CPA exam and everything you said is correct! 💪
If you don’t pay SS & Medicare tax I assume when it’s time to receive Medicare and SS benefits you won’t have it. Am I right?
Good info Graham. Btw, the visual on depreciation shows 250k. It should show 275k.
With Such Title IRS Is Not Gonna Think Twice Before Subscribing 😂😂…..they be like “let’s watch him …he is definitely up to something”
IRS: hold up!
*Wow, it’s crazy how some people can become multimillionaires by investing just $10K in trading within a few months, while others have to work for 40 years to reach $1M in retirement savings. The power of smart investing, right?*
The thing about being successful is working towards it smartly and not just talking about it
I’ve been trying to trade but I keep making losses and it’s frustrating
I enjoyed the solar video
As a tax/business advisor I appreciate this video. Most videos have egregious assumptions that our clients listen to and further discuss with me. This video has factual statements. Thank you Graham from all of the professionals like myself out there practicing in the real world.
Hey Graham, could you go over how to find a good CPA to work with?
Is the S&P 500 an example of a long term broad based index fund. If not, what is an example?
I haven’t watched this yet but let me tell you- I’m happy to pay a third of my income in taxes if we got something out of it.
I also miss the days of just having a simple W2 and not all of this other complicated grown up stuff 😆
I thought a HSA required you to spend all the $$ every year?
There is a great book covering these topics called “Paychecks and Profits.” People should also explore FSA (Flexible Spending Account) benefits, commuter benefits, College Savings Accounts, and Custodial Accounts for additional tax breaks.
Great information love your disclaimer so people won’t able to said “Graham show me $250,000/27.5 years equal $10,000” at 12:01😅
why do the majority of these comments seem like there written by NPCs
Ugh…I hate tax loopholes. Just pay your fair share. If you are over 100k a year there should be no reason you are struggling paying 30% tax. People just aren’t smart with their money. People who make good money and penny pinch the IRS or try and avoid as much taxes to pay as possible are just selfish. Do your part people and stop adding to the problem. Why there isn’t just a 25-30% flat tax rate for everyone is beyond me.
Anyone know if a child’s 529 college contribution is tax deductible?
No, it’s similar to a Roth IRA. You pay taxes on the money you contribute, but the earnings are not taxed as long as they are used for qualified education-related expenses. Some states have tax deductions or credits for making contributions to 529 plans though.
@@carolinecollins2441 thank you for the insight.
Intro confusing. Why is he calling us guys? WE ARE GRAHAMS!
Roth IRA! Also, if your 401k has a Roth option, use that! Especially if you’re in a lower tax bracket now than you think you’ll be in retirement, OR if your 401k savings by RMD age will PUSH you into a higher bracket (the second one is definitely applicable for heavy savers)
muito bom o video!!
Today Grant will teach you how to commit tax fraud
I have paid so much in taxes already from my w2 income
Do you have, or can you do a video on the self directed or solo 401k’s for us self employed folks?
Hi graham! How’s your day going?
Ok I want to retire how do I withdraw 401K and lower my tax bracket. I’m thinking moving to a cheaper house in Puerto Rico and daytrading.
so many BOTS! Not a good look Graham.
Been a fan for years and have learned a lot. is it possible for you to do a video on how to invest in the stock market if you dont live in the US?
More ways to cheat the systems and deprive needed funds for social programs while US continues in a nose dive.
Thank you for this video!!!
Does TurboTax automatically recognize the 401(k)? And the HSA hacks mentioned in the video?
My previous boss is Mr. Stephan from RHE.
Happy New Year Sir Graham.
What about interest on CD’s?
REVIEW ON THE NEW ACORNS DEBIT CARD ?
This video made me subscribe- good stuff Graham🎉 I’ve been watching for a while but this was without a doubt your most informative yet. It seems like most videos today only talk about getting out of pay check to pay check – there’s nothing out there for us who are actually making a substantial amount of money – this one did however so I’m happy
Hey Graham, Can we use the losses as a real estate professional against the W2 even if those losses are coming from long term rentals?
This guys claim to be financial experts, and they just make money from YouTube lol
How do I not get taxed 40% of every paycheck?? All of your tips are for people who have money looking to avoid taxes, how about a tip for someone trying to keep the money they work hard for being stolen by the government?? Investing doesnt help anyone in the present day, sure future self will thank you but thats only if you make it to see your future….Just stirring the pot 👍
Great ideas, but FLAT TAX best. Tough thing would be to keep it low, adjustment would need to be via vote, not Congress.
The IRS agents clicked on this so fast
Our property tax payment went up (doubled) when we converted it to a rental and moved, losing our homestead exemption on it. 😩 I feel like Michael Scott asking you to crunch the numbers.. but any suggestions? Little known magical loopholes? 😂 We’re not raising rent for as long as our current tenants are there.
What I’ve never understood is why not everyone will retire in a lower tax bracket. If you’re retired and lose that income, aren’t you in a lower tax bracket? Or are some people going to retire withdraw investments in greater amounts than they used to earn from their jobs?
You think 401k will still be here in 40 years? 😂
If you are not filling out form 2555 every year, you’re doing it all wrong. Look it up.
When’s the next portfolio review?
Cash is king. 😊. And tax free.
HSA elections are made the previous yr….
Depreciation – does it apply to primary residence?
You said, “You shouldn’t just listen to some guy on YouTube for your tax information.” At the exact moment you finished that sentence, a TurboTax ad popped up. This targeted marketing is getting scary good.
Sounds like Graham’s been talking with the SEC
If you sell depreciation gets clawed back so selling for 1031 Exchange wouldn’t help
There is nothing in here for a normal worker.
Be careful with a hsa. In a lot of organizations if you don’t use the money within that year you lose it.
This guy is so good at taxes that he moved from Cali to Nevada to pay less. -This is sarcasm.
There is a 0% chance that you were paying for any monthly subscriptions without being aware of it. Come on now. I know rocket money probably required you to fabricate a personal story to sell their services, but let’s put a bit more effort in next time
Vote Ron Desantis
00:00 📉 If you pay taxes, you might be wasting money; understanding legal ways to reduce your tax bill is crucial.
01:13 🌐 Making your income appear lower without reducing it is key to tax savings.
02:24 💰 Contributing to a traditional 401K is a tax-advantaged way to lower taxable income.
03:01 🏥 Health Savings Account (HSA) provides tax-free money for health-related expenses, offering significant savings.
04:17 📈 Utilizing the long-term capital gains tax rate can lead to substantial tax savings when selling investments held for over a year.
07:21 🏢 Setting up an S Corporation (S Corp) can help self-employed individuals save on Medicare and Social Security taxes.
09:59 🌐 Certain states offer a SALT cap workaround, allowing deductions for state income taxes through an S Corp.
10:43 🏡 Homeowners can benefit from tax breaks, including capital gains exclusion, 1031 exchange, and depreciation.
13:19 🏡 Refinancing can provide access to funds without triggering taxes on property appreciation.
14:25 🏠 Real estate professional status allows using real estate losses to offset W2 income, potentially resulting in zero taxes.
14:56 📚 Always hire a good CPA for personalized tax advice due to the complexity of the tax code.
Top tier presale just begun. I think Xeventy is one of the most promissing projects year to date.
Impressed by Xeventy’s commitment to user control and privacy! The decentralized KYC and personal data vault set a new standard for security.
My top pics for this bull run: Trias, Verasity and Xeventy
Guys check out Xeventy, opportunity of the lifetime. We are so early…
There´s a rumor that Xeventy will go on Kucoin and few top exchanges after the launch!
Don’t miss the chance to be part of the Xeventy presale guys! Easy 50x till the end of the year, and I´m a very conservative
I love your analysis, always on the point. And yes, Xeventy is a game changer. Great project!
Act fast – the presale won’t wait! Xeventy is getting sold out quickly
Top tier presale just begun. I think Xeventy is one of the most promissing projects year to date.
Impressed by Xeventy’s commitment to user control and privacy! The decentralized KYC and personal data vault set a new standard for security.
My top pics for this bull run: Trias, Verasity and Xeventy
Guys check out Xeventy, opportunity of the lifetime. We are so early…
Thank you very much for your work
Where is the credit cards of the year video at❗️
What about writing off your interest on your home mortgage?
Roth ira is always better than traditional.
You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life
I’m favoured financially, Thank you Jesus $32,000 weekly profit regardless of how bad it gets on the economy .
Please how do I go about it, am still a newbie on investment trading and how can I make profit ?
Thanks to Mrs Moraine .
YES! that’s exactly her name (Moraine ) I watched her interview on CNN News and so many people recommended highly about her and her trading skills.❤
I’m surprised that this name is being mentioned here, I stumbled upon one of his clients testimony on CNBC news last week .
I just don’t pay my end of year taxes. They take out enough with every paycheck and with what I buy. However I work for mostly cash and barter. 🤔😊
Can you do a video on self emoloyed tax? Im self employed but do work for a company amd get 1099 every year .
Can you buy a rental property using the 1031 exchange and then rent out one of the apartments (if there are multiple) or the entire house to yourself? Or if you can’t could the lease be in your significant others name but you live in it?
My apologies I’ve watched so many videos I assumed I was subscribed so that request to hit the button actually worked today
WIF will 1000x. Thriving business model. Real world utility and application.
Awesome video thanks for sharing these strategies!
Your videos are always so educational and interesting!! Appreciate all the time you put into your videos!
Love it!!!! Thank you !
What the heck. Please talk about Microstrategy stock, why it’s tanking and the bitcoin connection? No one will talk about the stock, much less analyze it. Is there some unwritten fear of Sayers?
Let’s be real. These days no one can max out their 401k.
hi grahm its guys here. yeah you didnt say it but i did lol figured out lately hat my 401k can be roth …. so it is.
5M subscribers kaise badhaye fast please 🙏🙏🙏🙏🙏🙏🙏
doing all of these, this is good advice!
Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further – enjoy! https://docs.google.com/spreadsheets/d/1xd0I15hFxwiTcqmRYDfXIm1W_wjCEho8rHA9H1W7OQE/edit?usp=sharing