Summary of Tom Wheelwright's TaxFree Wealth

By IRB Media

Get the Summary of Tom Wheelwright's TaxFree Wealth in 20 minutes. Please note: This is a summary & not the original book. Original book introduction: After 31 years… Major Tax Reform — and what it means to you True overhaul of the tax law only happens about once every 30 years. In the past 75 years, the U.S. tax law has only seen three major revisions; one in 1954, the next in 1986 and most recently at the end of 2017. I have been fortunate as a tax professional to be heavily involved in the last two reforms. In 1986, I was a manager in the National Tax Department (NTD) of Ernst & Whinney (now Ernst Young). My primary responsibility during my three years there was to create, teach and administer tax courses to the Firm’s U.S. tax professionals. Just as I arrived in the summer of 1985, I discovered that much of NTD’s resources were being devoted to following the tax reform bill that had been introduced that year. This gave me, as a young tax professional, some amazing insight into the legislative process as well as the horse trading for tax reform. President Reagan wanted two things; simplicity (the 1985 act was call the Tax Simplification Act of 1985) and he wanted it to be revenue neutral (no net increase to the deficit). It took another year before bill was finally passed as the Tax Reform Act of 1986. (Simplicity took a back seat to other goals of the reform.) In 1986 the big winners from tax reform were individuals, with significantly lower tax rates, insurance companies (who got by relatively unscathed) and businesses. The big loser was real estate investors (the passive loss rules were used as a last-ditch effort to make a “revenue-neutral” bill. The result a few years later was the Savings and Loan debacle accompanied by a massive real estate depression and the government bailing out real estate through the RTC (Resolution Trust Corporation).

• Language: English
• Publisher: IRB Media
• Release date: Dec 13, 2021
• ISBN: 9781669344803

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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Insights on Tom Wheelwright's TaxFree Wealth

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 1

#1

The average person in a developed country spends 25 to 35 percent of their life working to pay taxes.

#2

The government wants the economy to grow, which is why it contains numerous tax cuts and incentives. When you understand the tax law of your country, you will understand what the government wants you to do with your money.

#3

The key to lowering your tax is changing your facts. All taxes are based on your facts and circumstances. So if you want to change your tax, change your facts. It’s that simple.

#4

Always consider taxes when making your investment plans, as the tax laws can have a significant impact on your cash flow and wealth.

#5

Entrepreneurs and investors can reduce their taxes by learning the basics of tax law.

#6

The author is a tax lawyer and has been for over thirty years. The author has a passion for the tax law and enjoys teaching it to others.

#7

The author is a tax attorney, and he believes that everyone can discover just how easy, enjoyable, and understandable taxes are with just a little basic information.

#8

Any travel can be deducted as a business expense if it has its primary purpose of doing business.

#9

The government wants to tax you, and you’re conditioned to believe that you owe them this money. The truth is that you don’t.

#10

The author previously mentioned how the government is always wanting more money, and how businesses are the same way. The reason is because the government and businesses both rely on tax revenue to survive.

#11

The first two rules of thumb are: Your money is yours, and the government exists to serve you. Learn the rules of the game, and you can reduce your taxes every minute of every day.

#12

Your LLC can be whatever kind of business structure you want it to be, as long as you make the appropriate entity tax election with the IRS.

#13

As a child, the author would search for ways to make money. She and a friend would collect marigold seeds from the neighborhood and sell them back to the neighbors in the spring, which they thought was a brilliant idea.

#14

One way to make money is to reduce your taxes.

#15

You can reduce your taxes by lowering your