Learn the Tax Hacks Used by Millionaires

No one knows how to leverage tax hacks better than the ultra-rich! This is your chance to learn from them!

In this episode of the Hidden Money Podcast, Mike and Kevin discuss real case studies of clients who successfully pursued their passion by leveraging the tax code, legally, using strategies from the tax playbook of millionaires.

Disclaimer: The content of this podcast is not legal advice and is meant for educational purposes only.

In this episode, we discuss:

A unique client situation where a high W2 earner in the top tax bracket transitioned to self-employment by starting a business connected to his passion.
The benefits of 100% bonus depreciation in 2018-2019, allowing the client to deduct the entire cost of a $300,000 purchase and other expenses in one year.
How these deductions resulted in a significant tax loss, which was offset against the client's W2 income, effectively reducing his tax liability.
The concept of leveraging the tax code to fund new business ventures, rather than relying solely on traditional financing methods.
Common deductible business expenses, especially for those working from home, including office equipment, cell phones, and internet usage.
The practicalities of establishing cost basis for previously purchased personal items when they are repurposed for business use.
The shift in IRS policies allowing for 100% deduction of cell phone expenses, while still requiring business use allocation for internet expenses.
The importance of keeping good records and substantiating expenses to defend against potential IRS audits.
The balance between maximizing deductions and understanding the risk and effort involved in substantiating smaller expenses.
Encouragement for taxpayers to educate themselves on the tax code and leverage it legally and ethically to enhance their financial freedom.
The overarching message of utilizing the tax code to transition into new career stages, pursue passions, and achieve financial growth through informed tax strategies.