Grant Cardone Tax Advice for high income earners - Analysis

Hi,



How Big Earners can Reduce their Taxes to Zero

I'm trying to understand the 10 min Youtube video is about Grant Cardone tax advice for high-income earners.

I'm hoping for some clarification. I understand US and Aussie taxes are different, though they kind of similar in many ways.

In short, the scenario is like this:

• A footballer earned 2mil per year. Minus 400k for agents/managers. Left with 1.6 mil of income.
• He then said 1.6mil can be invested in Real Estate. That 1.6 mil can buy the person 4.8 mil worth of Real Estate.
• Then 2.4 mil worth of depreciation can be deducted (each year a max of 800k can be deducted against his income, but can be carried forward) -> This is NOT the main point.
• Earn passive income from the Real Estate.
• Repeat the process every year, and wait for the assets to appreciate.
• Borrow money / take out loans against the assets/properties when necessary (no tax).

My question is how can the footballer (in this case) - invest the whole 1.6 mil income in Real Estate? I thought he needs to pay income tax first before buying any Investment property?

What am I missing here?

 

why bother?

 

[QUOTE="p

What am I missing here?[/QUOTE]

the advertorial nature of the presentation

 

The thing that’s makes me laugh is how some of these highly paid US sports people end up broke even during the end of their career.

You hear stories of how their accountants, advisors, managers rip the sportsperson off. Others, engage in a decade long party, 8 wives, 10 kids, 4 mansions, 17 girlfriends, 22 hang around mates, Ferraris for all, cocaine, a few more illegitimate children, rape charges, jail time, pet tigers and finally a face tattoo lol.

 

US tax laws. im just about to share how you also can pay no tax in future

emigrate to dubai and hold no australian real estate.

quicker than a 10 minute video.

 

That’s the encouraging thing about Australia - if you want a face tattoo you just get it you don’t need to have 8 mothers in law first

 

It could be very possible. He doesnt pay tax because because he writes it off with depreciation. Depreciation rates change In the USA it is 37% but in some circumstances could be 100%. So on $4.8m the depreciation could be more than his income. This would lower the cost basis meaning more profits are taxed when you sell. That is why he says borrow instead of sell. I only glanced at the video but there was something about after 10 years may be if you sell after 10 years you can get up to 40% of up to $100m claimed deprciation waived. Effectively he pays much more tax after 10 years, but it is on a much lower % of current income/assetts. Taxed on $40m instead of $1.6m/pa.

 

I could become a resident of UAE or some other places while still retaining citizenship and pay no tax.
I remember Pat Cash Australian of the years as a Cayman Island resident. As were a few entertainment figures.

 

citizenship yes. residency no. emigrating doesnt mean you lose your citizenship status.

 

Yes my daughter 33, Australian/Italian citizen, Singapore resident. Pays tax on her Australian property income. Pays only 9% tax on her Singapore income. Sends her surplus funds home(without any further tax being payable) in tranches to invest in ASX equities which are tax free as a non Aussie resident. She has an Aussie and Singapore Tax accountant paid for by her US employer. I would prefer her to be married and raise grand kids rather than trying to outdo her dad as a Western Capitalist, but hey who gets to choose?

 

I’m available