Why Rich people don’t own homes on their name? #finance #money #business #gkindia
Basic Gyaan • 1 day ago
What This Video Is About
This video discusses a tax savings strategy used by wealthy individuals, where they purchase homes in the name of their companies to reduce their tax liability.
Major Ideas Discussed
- Wealthy individuals do not own homes in their names to save on taxes, instead using their companies to purchase properties.
- By doing so, they can deduct all expenses related to the house from their company's profit, reducing their tax liability.
- Examples of deductible expenses include installing fans or air conditioners, and paying salaries to staff employed to manage the house.
- This strategy allows individuals to save a substantial amount on taxes, as demonstrated by the example of a company with a ₹10 crore annual profit.
What to Watch Next
Viewers may want to monitor tax laws and regulations, as well as the financial activities of wealthy individuals and companies, to understand how this strategy is used in practice.