In today's episode, we are going to share a simple, completely legal strategy where you can earn over $100,000 in income without working and pay no tax on any of it. So that might sound a little bit too good to be true ... you might be thinking there has to be a loophole involved in this or some sort of clever financial accounting involved. But this is just going to show you how simple it can be to pay no tax. And so in 2021, the capital gains tax rates have already come out, and you can earn up to $80,000 in income from capital gains and pay zero percent tax on it.
So let's assume that you have a portfolio of stocks, maybe they’re dividend paying stocks, or you have invested in passive index funds and those pay out dividends. And let's say you've built up enough investment to put out $80,000 a year in dividends. Dividends are actually taxed as capital gains. So you get to take advantage of the massive bracket in the zero percent category when you have a portfolio spitting out dividends. And so let's assume that you are a financially independent person, you have a portfolio paying out dividends, and these dividends spit out $80,000 a year.
Additionally, you can actually take the standard deduction without doing anything. And that for 2021 is over $25,000. So between the $80K and the $25K, now you have another $25,000 of bracket that's available to use up. So now in this scenario, let's assume we've built up the portfolio even more to the point that it's putting out $105,000 in capital gains per year through the form of dividends. And if you're not aware, dividends are payments that companies make to shareholders, typically quarterly. They take a portion of their profits and distribute it back to shareholders. So it's a form of truly ultimate passive income. You are benefiting as an owner of the company, and they want to incentivize people to own shares in their company by giving them a dividend. There's a high majority of companies that pay these dividends out because they want to incentivize people to own their company. So now in this scenario, we have $105,000 of dividend payments per year. And all of that is completely tax-free. There is nothing we have to do. It's completely legal; completely legitimate.

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Jungle Scout - (30% Discount with this Link) Top Tool for Selling on Amazon  - https://businessandinvestingsherpa.com/junglescout
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