Entrepreneur and real estate mogul Grant Cardone has developed a unique approach to managing his finances and investments. In a recent TikTok video, Cardone revealed his strategy of “going broke” twice a year to reduce taxable income.
“Two times a year I go broke because you don’t want a bunch of this sitting around (showing a stack of cash) because it gets taxed,” said Cardone, who has reported net worth of $600 million.
He told viewers he purchased two helicopters, each costing between $10 and $12 million, as a way to manage large sums of money and reduce taxes.
“The tax bill is the No. 1 greatest expense, any family has,” he said. “It is the I the R and the S.”
His statement highlights the burden that taxes can impose, particularly on families trying to manage their finances effectively in the current economy.
Cardone’s success is rooted in his strategic investments in real estate, particularly in multifamily complexes, and in establishing diverse income streams through businesses like Cardone Capital and Cardone Training Technologies. His background in sales has been pivotal in securing lucrative opportunities and partnerships. Cardone is known for his strong networking skills and continuous learning, which keep him at the forefront of his field.
His work ethic and his willingness to take calculated risks have been significant factors in his financial growth. Cardone has also built a strong personal brand and effectively uses technology to expand his reach and influence.
Cardone’s method of “going broke” by investing in high-value assets like helicopters is an unconventional approach to managing wealth and reducing tax liabilities. His strategy involves converting liquid assets, which are subject to taxation, into investments that not only have the potential for appreciation but also offer tax advantages.
Entrepreneurs like Cardone often use various methods to write off expenses to reduce their taxable income. For instance, when purchasing buildings, entrepreneurs can leverage tax advantages such as depreciation, allowing them to write off the cost of the property over time. This strategy can significantly reduce taxable income, as it considers the building’s gradual decrease in value as an expense. Costs related to the maintenance and improvement of the property can also be deducted, further reducing the tax liability.
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This article ‘Two Times A Year I Go Broke’ — Grant Cardone Explains Why He Bought Two $10 Million Helicopters On Dec. 31 To Avoid Paying Taxes originally appeared on Benzinga.com
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