Grant Cardone Reveals How Anyone Can Lower Their Tax Bill: ‘If You Can’t Write It Off, Don’t Buy It’

In the world of finance, few names resonate as strongly as Grant Cardone. A real estate mogul and bestselling author, Cardone has built a $5 billion portfolio while mastering the art of minimizing taxes. His recent insights into tax strategies provide a roadmap for anyone looking to keep more of their hard-earned money.

The Tax Minimization Mindset

Cardone’s philosophy is straightforward: "If you can’t write it off, don’t buy it." This mantra serves as a guiding principle for individuals and business owners alike. By focusing on purchases that can be deducted, you can significantly reduce your taxable income.

Relocating for Tax Benefits

One of Cardone’s personal strategies includes relocating to Florida, a state that does not impose income tax. This move allows him to retain more of his earnings, demonstrating the importance of understanding state tax laws. For many, relocating to a tax-friendly state can be a game-changer.

Investing in Real Assets

Cardone emphasizes the importance of investing in real assets, particularly real estate. By doing so, investors can leverage depreciation to lower their taxable income. This strategy is particularly advantageous for those who frequently buy properties.

Understanding Depreciation and Section 179

Depreciation allows real estate investors to reduce their taxable income artificially. Cardone highlights Section 179 of the tax code, which permits investors to write off the entire value of a property in one year. For example, if an investor earns $1 million and purchases a $1.5 million property, they can report a net loss of $500,000 to the IRS. This powerful strategy can lead to substantial tax savings.

Eligibility for Section 179

While Section 179 offers significant benefits, it comes with specific eligibility requirements. Investors should familiarize themselves with these conditions to maximize their savings. Notably, this tax strategy also applies to vehicles weighing over 6,000 pounds, making it a versatile option for many business owners.

The "Buy, Borrow, Die" Strategy

Cardone advocates for the "Buy, Borrow, Die" model, which involves borrowing against assets rather than selling them. This approach allows individuals to avoid capital gains taxes while still benefiting from cash flow and appreciation. As net worth increases, borrowing becomes cheaper, enabling wealth accumulation without the immediate tax burden.

Home Office Deductions

For business owners and side hustlers, setting up a home office can yield significant tax benefits. By maintaining proper documentation, individuals can deduct home office expenses, effectively lowering their taxable income. This strategy is an excellent way to capitalize on the IRS’s willingness to allow certain deductions.

Employing Family Members

Another innovative strategy Cardone suggests is putting your children on payroll. This approach not only provides your kids with income at a lower tax rate but also allows you to deduct their wages as a business expense. It’s a win-win situation: you can support your children financially while reducing your overall tax burden.

The Inheritance Angle

Many parents aim to leave inheritances for their children. By employing them in your business, you can transfer wealth without incurring significant tax liabilities. This strategy aligns with Cardone’s overarching philosophy of minimizing taxes while maximizing financial benefits.

Conclusion

Grant Cardone’s insights into tax minimization offer valuable strategies for anyone looking to lower their tax bill. By focusing on deductible purchases, investing in real assets, and leveraging tax codes like Section 179, individuals can keep more of what they earn. Whether you’re a seasoned investor or just starting, these strategies can serve as a foundation for financial success.

In a world where taxes can take a significant bite out of income, Cardone’s advice is not just practical; it’s essential. By adopting a proactive approach to tax planning, anyone can navigate the complexities of the tax system and emerge with a healthier bottom line.