It’s possible to legally not pay taxes and still be very wealthy explains Tom Wheelwright, CPA and Rich Dad Advisor to Robert Kiyosaki. In the above video and summary article that follows, he discusses how to take advantage of the tax laws in order to keep more of your money where it belongs – in your pocket!

Most people don’t know that tax rates are determined by how you earn your money. By smartly structuring your business and assets, it is possible to permanently reduce your taxes and earn more money.

“It is up to you whether or not you legally not pay taxes,” Wheelwright said.

Tom Wheelwright, who has dedicated 35 years of his life to studying tax law and has educated thousands of CPAs, made a surprising discovery. As he traveled around the world he found the tax rates are approximately the same depending on how you earn your money. It didn’t matter if it was Sydney, Australia or San Francisco, California or Santiago, Chili or Johannesburg, South Africa. They all structure tax rates similarly based on how the money was earned.

The 4 Ways Money is Made & Taxed

Tom Wheelwright on Tax Education

There are four ways your can earn your money that influence your tax rate:

  1. As an employee, you will pay an average of 40% in taxes.
  2. As a self-employed small business owner or specialist, you will be taxed an average of 60%. This category commonly includes doctors, lawyers, or accountants.
  3. As a big business owner, you will be taxed on average 20%
  4. As an investor, you can reduce you tax rates to 0%.

Why People Aim for the Wrong Tax Rate

Unfortunately, most people are unaware of the tax savings available to big business owners and investors, or they are simply afraid of tax audits. Either way, many are unwilling to take the steps needed to set up a big business or become an investor, where the real tax savings are available.

It’s not uncommon for people to have not heard about the tax savings available to big business and investors, or be unsure how to achieve them legally. Most entrepreneurship programs around the world set the goal too low and don’t teach these lessons. They consider becoming a specialist or small business owner as the ultimate goal, which increases your tax rate.

“Are you kidding me? The goal is to increase my tax rate?” Wheelwright said. “That’s crazy!”

Wheelwright points out that while you may have to start as a small business owner or specialist, you don’t want to stay in that quadrant. It makes much more sense to graduate to being a big business owner or investor. Wheelwright said he had not heard of anyone teaching these principles outside of the training he and those he partners with provide. (Sign up for his next class.)

“Ultimately, you want to get to a zero tax rate and ultimate wealth,” Wheelwright said.

The Greatest Obstacles: Fear & Ignorance

Wheelwright says most people are “scared to death” of becoming a big business or investor, specifically the terror of audits keeps many business owners small. Big businesses and investors are audited much more frequently, usually by two different organizations — the financial auditors and the tax authorities.

Wheelwright points out that fear of audits is an irrational one. Employees and self-employed small business owners are typically not familiar with audits, and may not have the financial statement, the balance sheet or statement of cash flows, which are needed for successful audits.

Employees and small business owners can file taxes just using an income statement. Business owners and investors, on the other hand, can not operate without financial statements, balance sheets, statement of cash flows or audits.

“(Business owners and investors) love an audit,” Wheelwrite said. “It’s like going for a checkup with the dentist or the doctor. It is a good thing. You know where you are. You may be afraid of it. You may not like the process of it, but it’s a good thing.”

Getting financial education and experts to assist you can help you achieve the greatest success. But only if you are willing to move from the status of employee or self-employed by taking the steps necessary to become a big business or investor.

“With the right team around you, with the right instruction, you don’t have to be afraid of this,” Wheelwright said. “Because remember that the real purpose of the tax law in your country is to provide incentives to business owners and investors.”

Make the Government Your Partner in Success

Wheelwright urges everyone to seek a financial education, and not to be afraid of making mistakes.

“There’s no reason to fear, as long as you do it legally,” Wheelwright said. “You get the education. You put the team around you. Then the government is more than willing to be your partner. They’ll contribute up to 40% for every investment you make. And it doesn’t matter if it’s energy, real estate, or business. Remember the government wants you to create employment. So you partner with the government to create employment. When you do that, the government gives you tax benefits.”

The government wants you to build real estate properties. Wheelwright continued to say if you build commercial or residential properties, the government gives you huge tax benefits for building the real estate called depreciation or cost recovery.

The use of debt by business owners and investors also is rewarded.

“The government wants you to use debt in your real estate and your business,” Wheelwright said. “So the government gives you tax breaks for using debt.”

“The government wants you to succeed. The tax law is set up to help you become more wealthy. But you have to do what the government wants you to do. When you do, you make more money. You pay less tax and you never have to lose sleep at night.”

Get a Financial Education

Tom covers the specifics of how to achieve tax savings every day of your life using a few simple real life ideas. While this video covers a high-level view of how tax structures are set up, learn the details of how to implement this in the upcoming Tax and Asset Protection Class. Sign up for the in-person 3-day seminar on Oct. 19-21 in Arizona. Sign up here:

Included 1-on-1 Consultations Worth $400

  • Free consultation from Garrett Sutton: All registered attendees will receive the opportunity to schedule a free 30 minute private 1-on-1 session with Garrett Sutton that can take place during the seminar dates or afterwards.
  • Free ProVision Tax and Wealth consultation: All registered attendees will receive the opportunity to schedule a free 30 minute private 1-on-1 session with ProVision that can take place during the seminar dates or afterwards.
  • Lunch and breakfast coffee are included.
  • Hotel accommodations are discounted to $139 a night.

Tax Training by Tom Wheelwright, CPA

The tax portion of this course will give you a solid foundation for understanding how and why the tax system is set up the way it is. You will learn how to take advantage of the tax laws in order to keep more of your money where it belongs – in your pocket! This course is about how you can create tax savings every day of your life using a few simple real life ideas. Wouldn’t it be great to not only learn how to pay less tax but while you are at it, learn how to reduce your chances of an IRS or CRA audit? Most importantly, learn why the tax law is simply a series of stimulus packages for business owners and investors.

About Tom Wheelwright

Tom has a wide variety of professional experience, ranging from Big 4 accounting, where he managed and led the professional training for thousands of CPAs at Ernst & Young’s National Tax Department in Washington, D.C., to in-house tax advisor for Pinnacle West Capital Corporation, at the time a Fortune 1000 company. Tom also served as an adjunct professor in the Masters of Tax program at Arizona State University for 14 years where he created the course for teaching multi-state tax planning techniques and personally taught hundreds of graduate students. He currently teaches the Rich Dad Education Advanced Tax and Asset Protection class.

Tom has his Master’s of Professional Accounting degree from the University of Texas at Austin and his Bachelor of Arts degree from the University of Utah.

Asset Protection Training by Garrett Sutton, Esq.

The asset protection portion of this course will teach you the strategies and techniques the rich have used for generations to protect their wealth. In fact, no matter what level of prior understanding you have, this course will clearly present key concepts that will help you be more knowledgeable on asset protection than most attorneys. You will learn the appropriate and beneficial use of entities, trusts and other methods for protecting your real estate, business and brokerage holdings, as well as your family and your future.

About Garrett Sutton

Garrett Sutton, Esq., best-selling author of “Start Your own Corporation,” “Run Your Own Corporation,” “Loopholes of Real Estate,” “The ABCs of Getting Out of Debt,” “Writing Winning Business Plans” and “Buying and Selling a Business” in the Rich Dad Advisors series, is an attorney with over twenty-five years experience in assisting individuals and businesses to determine their appropriate corporate structure, limit their liability, protect their assets and advance their financial, personal and credit success goals.

Garrett attended Colorado College and the University of California, Berkeley, where he received a B.S. in Business Administration in 1975. He graduated with a J.D. in 1978 from Hastings College of Law, the University of California’s law school in San Francisco. Garrett is licensed in Nevada and California. Garrett is a member of the State Bar of Nevada, the State Bar of California, and the American Bar Association. He has written numerous professional articles and has served on the Publication Committee of the State Bar of Nevada. Additionally, He has appeared in the Wall Street Journal, and other publications.

Garrett and his law firm, Sutton Law Center, have offices in Reno and Minden, Nevada, Jackson Hole, Wyoming and Palo Alto, California. The firm represents thousands of corporations, limited liability companies, limited partnerships and individuals in their real estate and business-related law matters, including incorporations, contracts, and ongoing business-related legal advice and accepts new clients. The firm also assists its clients to find and analyze appropriate real estate projects.