Tom Wheelwright > Quotes

“depending on the level of your income and the quality of your tax advisor.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“your real estate investment doesn’t just give you tax-free cash flow. It actually reduces your taxes on your salary and/or business income, because while there is positive cash flow of $7,000, the depreciation deduction of about $27,000 gives you a tax deduction against your other income of $20,000 ($27,000 less $7,000 to offset real estate income). That $20,000 additional deduction against your other income is worth $6,000 of reduced taxes on your other income in a typical 30% ordinary income tax bracket.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“You’re simply moving your money into additional leverage so that you can continue gaining speed in building your wealth.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“90 percent of entrepreneurs and investors can reduce their taxes simply by learning the basics of tax law.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“One of the keys to taking full advantage of depreciation is to quickly get as much of your deduction as you can.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“One of the arguments I hear all the time for not doing like-kind exchanges is that the taxpayer might need cash from the sale of the building. Instead of cashing out and paying tax on that cash, why not do a like-kind exchange and then later refinance the building? When you refinance, you get your cash in the form of a tax-free loan and get to keep your asset!”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“Mutual funds are one of the few places where you can lose money and still owe tax on your investment.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“All of the money Pierre puts back into his business is deductible against his $200,000 of income. That would leave him with $100,000. Now let’s say that he has a home office and that his van is used primarily for business; that when he spent money on a vacation, he took his wife and children, who are all owners of the business with him and that they spent more than half of each weekday on business; and that whenever Pierre and his wife went to dinner during the year, they had a business discussion.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“a house in the mountains or on the beach.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“Business expenses are the best kind of deductions. Real estate expenses are the next best.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“I have seen more businesses put out of business for uncollected sales tax than for any other tax reason.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“children owned their interests in the company through trusts of which George and Martha were the trustees.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“All income taxes in developed countries are based on net income, which is simply income after deductions. And deductions come from expenses.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“In many ways, utilizing the tax code to the fullest to save as much money in taxes as possible is one of the most patriotic things you can do.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“Tax brackets rarely keep pace with real inflation, so you could find yourself in a much higher tax bracket just from inflation.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“you don’t only get depreciation deductions for buildings. You also get them for equipment. In many countries, this includes your car so long as you use it primarily for business. It could even include the portion of your house that you use for an office. There are tons of possibilities.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“One of the reasons the bank has agreed to lend to you is that you have put some of your own money into the business. This is called having skin in the game.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“The people of Hawaii are so genuine and laid back.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“there are four states in the United States that don’t have a corporate income tax: Nevada, Washington, South Dakota, and Wyoming. These states, plus Florida, don’t have individual income taxes either.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“you should have your tax advisor heavily involved in the negotiations when you sell your business.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“The real test of an advisor is not how much they charge you, but how much they cost you.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“Let’s say you own rental real estate that earns $10,000 each year in cash flow. Depreciation on this property is $15,000, so you get to report a $5,000 loss on your tax return ($10,000 positive cash flow less $15,000 depreciation equals $5,000 tax loss). In a 40 percent tax bracket, this $5,000 loss is worth $2,000 in tax savings to you.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“To me, retiring and giving up the work that I love would be a sort of death.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“Let me show you how you can use a combination of 1031 exchanges and depreciation to never again pay tax on the cash flow or the gain from the sale of your real estate.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“Sometimes governments make the mistake of thinking they can create jobs or build housing better than the free market. Eventually, they realize that the market does a better job. And it costs the government a lot less to give tax benefits to business owners and investors than it does to add jobs or build housing through government-sponsored programs.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“This extends the length of the audit and gives the auditor more to dig into—and to come up with more deductions to disallow.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“change your expenses from a personal expense to a business deduction. The government essentially pays for 20 to 30 percent of your purchase in the form of a tax deduction.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“What’s inside of the building should be separated from the physical structure on the tax return.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“With a substantial amount of capital, even investments with modest returns result in massive passive income.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

“You could get an appraisal, or, if the property is a rental property or used in your business, you may be able to use your reduced rental income and the reduced rents of similar properties as evidence that your property should be valued at a lower dollar value than it was valued at originally.”
― Tom Wheelwright, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes