How to Not Pay Your Taxes

Pretty good overview of how/why these deductions reduce your taxable income. Couple of things to note.

Depreciation is recaptured if you sell an asset for more than its depreciated basis. People sometimes get into trouble with this if they rapidly depreciate real estate and then sell it. Even if you sell for less than your purchase price it is possible to owe taxes.

You also aren't going to be able to pay no taxes since you do need to realize some income to pay for mortgage/rent, food, transportation, etc. I guess if you had assets you could borrow against it would be possible to pay for these using the loan proceeds (which are not taxable).

It seems to me that I'm running into more people who just don't file their taxes. They wait for the IRS to send them a letter saying how much they owe, and they just pay that.

I can't figure out the thought process of someone who finds this sensible. Maybe there isn't one.

I'm not sure to understand how deferring taxes is a better deal than paying it here and now.

Since I'm not a financial adviser, someone asked me take on which 4k projector to buy last Xmas.

I explained that the tech has improved so much lately, they've become somewhat affordable, I recommended a model and pointed ou that he would certainly get a better device next Xmas, for half the price. I thought he would follow suit given his budget was a bit below the retail price. That would just wait.

His response was he would rather go ahead and up the budget a few hundred dollars to get it right away. That projectors will surely get much better by next year, but that he, certainly, will not.

How to Not Pay Any Taxes: don’t be American.

Living tax free is easy enough for everyone except Americans.

It is a good thing for life, money and health, to be clear how much is enough. In money frugality always wins. These billionaires they're very miserable. Their faces show stress, worry and animosity. People say money does bring happiness. It is BS. It holds true only if there is health.

Or, just pay your taxes. We collectively benefit from them.

Is this advice from Wesley Snipes?

That's a great deal more complicated than our TFSA and RSP programmes, here in Canada.

tax penalities are low interest loans, so you can invest the money and pay the IRS the penalties at the end of the year.

> Defer US taxes by reinvesting your taxable income into the economy as business expenses, depreciating assets, etc.

Be really careful when doing this. Make sure you have a great accountant - if you go more than a few years without turning a measurable profit, your risk of being audited apparently goes up. My accountant personally cautioned me about this since my business has been in an R&D phase for 5 years so we've been showing a small loss every year. The last thing you want is for the IRS to decide you've been cheating on your taxes.

If what was supposed to be your tax dollars is instead going towards giving more people work to do (and hence generate more taxes) the government will be happy.

Highly recommend: https://www.youtube.com/@taxleverage

super cool

This feels like a great way to get audited by the IRS. It does not feel like sound advice.