Posted by & filed under Personal Finance 2e (Vickie Bajtelsmit).

This 16:47 YouTube video gives the viewer strategies to legally avoid paying taxes. Kris Kohn explains how owning a property or a business can give investors all kinds of tax breaks to defer tax obligations, while creating a positive cash flow.

https://www.youtube.com/watch?v=Ldw5nH9vJ0k

 

Multiple Choice Questions

  1. When someone can lower their total tax liability, it is considered
  • A tax deduction
  • A tax credit
  • A tax evasion
  • A tax discount
  1. One of the benefits that accrues due to owning a LLC (Limited Liability Corporation) is
  • One can work from home and deduct part of their mortgage
  • One can take off the cost of all their meals as part of business-related expenses
  • One can deduct charitable donations up to 20%
  • One can deduct all their transportation costs
  1. When a person swaps one property for another, possibly of a higher or equal value
  • It is considered an equal exchange
  • It is considered taxable exchange
  • It is considered a 1031 Exchange and capital gains are tax deferred
  • It is considered a capital gains transaction
  1. The mechanism through which investment property owners generate a positive cash flow and yet lower their taxable income is
  • Depreciation
  • Appreciation
  • Tax credits
  • Tax ax deductions
  1. Kris Kohn in his video speaks of all the strategies to legally avoid paying taxes except
  • Start a business
  • Sell hour house when your property value goes up
  • Do a 1031 Exchange
  • Refinance your home to get extra cash

 

 

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