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“What is the difference between a taxidermist and a tax collector? A taxidermist only takes your skin.”

— Mark Twain

I went from paying around $50,000 a year in taxes to almost $0… legally!

When I made $200,000 annually, I was taxed about 25%.

Now, I’ve reduced that to nearly 0.

How did I do it?

There are secrets in the tax code that allow you to legally pay less.

And they don’t just exist for people in real estate.

As a high earner, you can take advantage of these secrets as well.

If you stick around to the end, I’ll be sharing a special secret I’ve never shared before.

Let’s get into it!

1. Unlocking the Zero-Tax Secret

If something sounds too good to be true, that doesn’t necessarily mean it is.

Instead, you should investigate and consult your tax professional (I’m not giving you any tax advice!).

I did this through something called the Real Estate Professional Designation, or REPS.

This is something in the real estate code.

In order to qualify as a REPS, you need to dedicate over 750 hours per year to real estate.

If you are a documented real estate professional, you gain access to exclusive benefits.

You can use the depreciation from real estate investments to work against ordinary income for your or your spouse.

I know a medical sales guy whose wife is a Fortune 1000 CEO.

They were able to keep more money if he didn’t work.

Isn’t that amazing?!

You might be wondering: Why would the government give these incentives?

They want to give people an opportunity to align their interests.

Another way to unlock the zero-tax secret is with energy investments.

These can include oil and gas as well as other forms of energy.

Investing in these areas can potentially produce an ordinary reduction of income.

And if you’re an environmentally conscious investor, fear not!

By implementing the latest tech, offshore oil and gas can reduce carbon emissions by 15%-20%.1

I’m not a tax person, so please consult a tax strategist or professional.

Feel free so send us an email and we’d be happy to refer you to someone!

2. Cracking the Code – Not a Scam

What does it look like if something is not a scam?

Like I said before: If a strategy sounds too good to be true, investigate it.

You need to look for authenticity.

We talked about this a little bit in real estate.

One way is through depreciation.

If you’re not a real estate professional, you can still use depreciation from an investment to help offset other investment gains.

There are some great investments out there.

We love investing in ATM machines, for example.

ATMs depreciate to zero over five years.

100% of the investment will depreciate because it’s equipment.

There’s no recapture event at the end of the deal.

(A recapture event is when something is sold later and you didn’t hold for 27.5% as with real estate!)

If you brought forward any depreciation, you have to recapture when you sell.

You don’t have to do that with equipment.

Another way to crack the code is if you own a business.

If you’re a business owner, you can use write-offs.

Your business expenses are tax deductible.

This includes going to conferences, paying employees, and any trips you take for work.

Make sure to talk to your tax professional before writing anything off!

The last way to crack the code is something savvy high earners can do.

This includes physicians, CPAs, and lawyers.

The highest earners typically pay the highest amount of taxes.

But because of recent tax law amendments as well as the expansion of the knowledge economy, they actually can pay much less.2

As an example, you can invest in certain oil and gas deals to reduce ordinary income.

Again, you might be wondering: Why would the government do this?

They are interested in providing things like affordable housing.

Government housing can be underfunded and not desirable to tenants.

So, as a potential alternative, the government subsidizes private housing.

They grant incentives for people who run apartments or other real estate investments.

As a result, these developments are typically run better and have more funding.

The wealthiest people in the world don’t pay a lot of taxes (if anything).

This is because they’re doing things in line with the government’s interests like providing jobs and housing.

When it comes to the energy space, the mindset is very similar.

The current administration is trying to reduce energy consumption.

When we have reliable, clean energy readily available, that helps us create more.

They want to incentivize private individuals who are willing to help make that a reality.

If you use any of these cracks in the code to reduce your taxes to zero, let us know!

3. Get Help

In order for any of this advice to work, you need to be willing to get help.

If there’s an area you don’t understand, just ask!

A squeaky wheel is the one that gets greased.

This is where professionals like CPAs come into play.

However, there is a difference between a CPA and a tax strategist.

CPAs are certified to do your taxes and not much else.

You pay tax strategists to look for specific ways to save you money on taxes.

Using these professional services can be a paradigm shift.

You can open yourself to so many different possibilities.

I know a couple of guys in California who sold a dental practice.

Their tax bill was going to be over $2 million on a $5 million sale.

They reduced it down to $125,000.

Through a creative tax strategy, they saved millions of dollars in taxes.

Before I go, I want to share one of my tax secrets with you:

I don’t think the government is a great deployer of capital.

You may disagree, and that’s totally fine!

It’s my belief that they’re not very efficient.

Finding ways to legally avoid taxes is not something you should feel guilty about.

If the government can’t spend our taxes responsibly, then we are within our right to pay less to them.

Find ways to lower your taxes, get consultants involved, and reap the benefits.

Now I want to hear from you!

How are you going to reduce your taxes to zero this year?

Let us know in the comments.

Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.

If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.

Check out my bestselling book on Amazon!

Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.

Works Cited

1.     Nguyen, T., Voldsund, M., Breuhaus, P., & Elmegaard, B. (2016). Energy efficiency measures for offshore oil and gas platforms. Energy, 117, 325-340.

2.     Hope, D., & Limberg, J. (2021). The knowledge economy and taxes on the rich. Journal of European Public Policy, 29, 728 – 747.

Bronson Hill

Bronson used to work as a consultant for a medical device company but switched to investing in apartment buildings to make his money work for him. He started with a single rental property that made good money and, after some advice from a family member, moved into bigger real estate projects. Now, he's all about helping others get into this kind of investment to earn money without having to work all the time. When he's not dealing with investments, Bronson loves to travel, write songs, stay active, and help fight modern slavery through his work with Dressember. He believes in working smarter, not harder, and wants to share how that's possible with everyone.

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