Robert Kiyosaki Says He and Trump Don’t Pay Taxes: What’s Their Secret?
Written by
Adam Palasciano
Edited by
Rebekah Evans
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Taxes: almost nobody likes them, but we all have to pay them. Regardless of whether you work as a full-time or part-time employee or as a contractor, you’re going to owe a tax bill to Uncle Sam.
However, it’s possible and legal to reduce (or even eliminate) your tax liability so you can keep more of your money like the richest people among us.
Here’s how “Rich Dad Poor Dad” author Robert Kiyosaki said that both he and President Donald Trump don’t pay taxes.
How Both Kiyosaki and Trump Don’t Pay Taxes
In a YouTube video, Kiyosaki explained the number one reason why both he and Trump don’t pay taxes: business and owning real estate.
“So my game financially is business number one, second is real estate and that’s why I pay no taxes, that’s why Trump pays no taxes legally,” Kiyosaki said.
Kiyosaki and Trump both own a lot of real estate, which allows them to legally keep most if not all of their money. There are three elements that result in tax savings when it comes to both business and real estate: appreciation, amortization and depreciation.
Appreciation refers to an increase in the value of an asset (like the value of a property), amortization is the decrease in the value of intangible assets (like having to pay interest on a loan), while depreciation is the decline in value of an asset. All of these elements may effectively reduce tax liability for the rich.
Kiyosaki Invests In Things the Government Wants
In another YouTube video, Kiyosaki further explained another way the rich don’t pay much in taxes. It’s often by investing in initiatives that the government “wants done.”
“It’s not that I don’t pay taxes, I’m giving tax breaks because I’m doing what the government wants done right now,” Kiyosaki explained. “I invest in programs the government wants me to invest in … I get tax breaks for having employees, I get tax breaks for providing low-income housing.”
By using your wealth to create jobs and affordable housing, you may be able to effectively reduce your tax liability and keep more of your wealth, too.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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