Tax-Free Wealth audiobook cover - How to Build Massive Wealth by Permanently Lowering Your Taxes

Tax-Free Wealth

How to Build Massive Wealth by Permanently Lowering Your Taxes

Tom Wheelwright

★ 4.3 / 5(443 ratings)
Start ListeningDownload App
Categories:
Money & Investments

If You're Curious About These Questions...

You should listen to this audiobook

Listen to Tax-Free Wealth — Free Audiobook

Loading player...

Key Takeaways from Tax-Free Wealth

Learning Tools

Reinforce what you learned from Tax-Free Wealth

Mind Map

Tax-Free Wealth
Core Philosophy
  • Government Incentives
  • The Power of Facts
Income Types
  • High-Tax Buckets
  • Low-Tax Buckets
  • Income Shifting
Deductions & Documentation
  • Income-Producing Expenses
  • The Magic of Depreciation
  • Audit Preparation
Real Estate Strategy
  • Cash Flow & Tax Basis
  • Like-Kind Exchanges (1031)
  • The Ultimate Exit Strategy
Choosing a Tax Advisor
  • Advisor Mindset
  • Evaluating ROI
  • The Interview

Quiz — Test Your Understanding

Question 1 of 7
According to the book, what is the primary reason the government creates tax laws?
  • A. To penalize wealthy individuals and redistribute wealth evenly across society.
  • B. To encourage people to engage in behaviors that stimulate and support the economy.
  • C. To fund public schools and infrastructure without relying on corporate taxes.
  • D. To complicate financial planning and ensure ongoing employment for government auditors.
Question 2 of 7
Which of the following 'income buckets' is described as having the most 'holes,' meaning it loses the most money to income and employment taxes?
  • A. Ordinary income
  • B. Passive income
  • C. Earned income
  • D. Investment income
Question 3 of 7
What is the fundamental rule for making an expense deductible according to the author?
  • A. The expense must be approved by a certified public accountant prior to purchase.
  • B. The expense must be related to personal travel or entertainment.
  • C. The expense must fall below a specific monetary threshold set by the IRS.
  • D. The purpose of the expense must be to produce more income, rather than for consumption.
Question 4 of 7
Why does the author refer to depreciation as the 'queen of deductions' or 'magic'?
  • A. It instantly refunds the full purchase price of an asset in the first year of ownership.
  • B. It allows you to deduct a portion of the cost of a physical, income-producing asset over time without an ongoing cash expense.
  • C. It automatically exempts your entire business from being audited by the IRS.
  • D. It applies to personal expenses like groceries and primary residences.
Question 5 of 7
How can real estate investors legally defer paying capital gains taxes when they sell a property?
  • A. By using a like-kind exchange to purchase another property of equal or greater value.
  • B. By transferring the property's title to a shell corporation located in a foreign country.
  • C. By declaring the sale as a personal gift to the buyer.
  • D. By paying off the remaining mortgage balance before the end of the fiscal year.
Question 6 of 7
What happens to the tax basis of a real estate property if the owner holds onto it until they die and passes it to their children?
  • A. The children must pay retroactive depreciation taxes immediately upon inheritance.
  • B. The tax basis drops to zero, maximizing the capital gains tax the children will owe.
  • C. The tax basis becomes the same as the current value of the property, allowing the children to sell it tax-free.
  • D. The government seizes a portion of the property to cover deferred capital gains.
Question 7 of 7
What is a key indicator of a good tax advisor during an initial interview?
  • A. They promise to charge the lowest hourly rate in the industry.
  • B. They focus heavily on themselves, their credentials, and their past successes.
  • C. They prefer the certainty of numbers and strictly adhere to simple tax guides.
  • D. They ask about your personal dreams, goals, and family to understand your specific facts.

Tax-Free Wealth — Full Chapter Overview

Tax-Free Wealth Summary & Overview

Tax-Free Wealth (2012) takes the mystery out of taxes. It offers priceless insights on taxes and tax planning that you can use to ultimately build your wealth. Drawing from professional experience and a deep understanding of tax law, it breaks down the principles and rules underlying the best financial planning, and shows you how the laws are there to help you save your money.

Who Should Listen to Tax-Free Wealth?

  • Business owners and investors who are frustrated to see their income lost to taxes
  • Tax haters who find themselves dreading tax season every year
  • The financially ambitious who want to earn a lot – and save a lot more

About the Author: Tom Wheelwright

Tom Wheelwright is the founder and CEO of ProVision, the world’s premier Certified Public Accountant firm. He is the leading expert on partnerships and corporate tax strategies, and has created innovative tax, business, and wealth consulting services. Apart from writing several articles for professional journals, he has also contributed to the books The Real Book of Real Estate, Who Took My Money?, and Unfair Advantage.

🎧
Listen in the AppOffline playback & background play
Get App