Why Form 4797 Dont 2023-2024

Hey everyone, welcome back to the Jack Chapel show! Today, I'm going to be talking about how you can pay zero taxes through real estate. Yes, you heard that right - zero taxes! If you build up a substantial real estate portfolio, you can make hundreds of thousands of dollars and not have to pay a dime in taxes. This may seem too good to be true, but it's actually a legitimate strategy. I first learned about this from Robert Kiyosaki, who is a renowned real estate investor with billions of dollars in assets. He claimed that despite making millions of dollars every year, he never has to pay taxes, even when he sells a property. This piqued my interest, so I started digging deeper to understand how it works. One strategy that Robert mentioned is the ability to defer taxes by selling a property and immediately purchasing another one. In the United States, there is a unique rule that allows you to avoid paying taxes on the land transfer fee if you do a quick property swap. This rule may not apply in Canada, but it's worth exploring for American investors. Let me give you an example to illustrate how this tax-saving strategy works. Let's say you purchase a property for $350,000 and obtain a mortgage for that amount. With an interest rate of around 2-3%, you will be paying approximately $8,500 in interest expenses annually. The good news is that you can write off this interest on your tax returns, lowering your taxable income. If you have an annual income of $50,000, your taxable income after deducting the interest expense would be around $41,500. Now, let's move on to the most crucial aspect of building a real estate portfolio - the capital cost allowance (CCA) in Canada or depreciation in the United...