How You Can Legally Pay Zero Taxes

How You Can Legally Pay Zero Taxes | The Kitti Sisters - 3

119: How You Can Legally Pay Zero Taxes


Is there a way to pay ZERO taxes? 😲🤔

Doesn’t earning more mean tax season is going to be a major bummer?

Not necessarily‼️

It’s time to crush the myth that says the more you earn, the more taxes you have to pay. If you invest in the right type of assets, the more wealth you build, the more wealth you create, and the fewer taxes you actually pay–legally!! 👈

One of the privileges of living in the US is that you have no cap on your earnings and you look forward to always paying your fair share of your taxes. The great news is, if you invest in the right asset class, what the government (and specifically the IRS) deems your fair share can drastically be lower than what you’ve been used to paying.

The topic we are covering will sound counter to everything you’ve been told your adult life and, of course, you have the right to be skeptical, but don’t rely solely on us. We are the biggest advocates of the doctrine of trust, but verify. ✔️

Disclaimer: Please note that we are not certified public accountants (CPAs) and the content shared today should not be taken as legal, tax, or financial advice.

The information presented is for educational purposes only and should not be used as a substitute for consulting with a professional team. Always consult with your own legal, tax, and financial advisors before making any investment decisions. ☝️

Now that the fun legal stuff is out of the way, you might have heard in the news recently that the IRS received a huge budget boost and they have been directed to hire more agents to audit income tax returns.

Are we the only ones here getting visions of the scary yellow CDA guys from the Monsters, Inc. movie? Does this send shivers down your spine?  😨😨

Don’t be scared. 

The investment strategy we are about to explain is truly a win-win scenario for both the government and us, and believe it or not, they actually encourage us to place our money in these asset classes.

When it comes down to it, the aim of the government is to use various tax incentives to propel its citizens to take a certain course of action. Kind of like a science experiment: action, reaction. They are incentivizing job creation, technological innovations, clean energy, and providing clean and affordable housing. We love those things, those are all great! 😍😍

The fact is, building wealth through investment strategies can be beneficial for both individuals and the government. It’s not a situation where the government loses and special interest groups win, but instead, a partnership where both parties can benefit. This is because when individuals invest in assets like real estate, for example, that creates jobs and also housing. Win-win.

One way the government incentivizes the provision of clean and affordable housing is through the use of bonus depreciation for multifamily apartment buildings. What this means is that this tax break allows property owners and investors to take a larger depreciation deduction in the first year they put the property into service or their first year of ownership.

The reason why this is such a significant benefit is because it reduces the investors’ taxable income, which can help make these types of investments more financially viable. 🤓🤓

Think about it, this is truly a win-win situation because it not only benefits the landlords and investors by making the investment more attractive but also the government by increasing the supply of affordable housing.

Not only that, but the residents also get a big win by having access to clean and affordable housing. 

This tax break is a powerful tool for encouraging the development of multifamily housing, which can help address the shortage of affordable housing in many communities. Even better, this tax break is also a way for the government to support the construction industry, leading to more job opportunities.

Let’s learn a little history. In 2017, the Tax Cut and Jobs Act raised the depreciation statute to 100%, and at the start of 2023, the bonus still exists, but with a slight depreciation drop from 100% to 80%.

👉 80% is no small amount and definitely still can be used as a powerful tool to reduce your tax burden, but this is a good example of why it is important to have a professional who knows the ins and outs of changing tax law so that you can get the most bang for your buck. 👀👀

In multifamily apartment syndication, a group of investors comes together to pool their resources to purchase and manage a multifamily apartment complex. Bonus depreciation can be applied to this type of investment in the same way as it would be for an individual investor.

The syndicate can use the bonus depreciation to reduce the investors’ taxable income in the first year the property is put into service or the first year of ownership.

In the case of 🏢 apartment syndications, the bonus depreciation would be allocated among the investors.

Let’s do just a little bit of math – hang tight. ⏬

For example, a cost segregation study might be performed and come to the conclusion that a property is eligible for a 50% bonus depreciation.

This means that a passive investor who invested $100,000, will receive a 50% “paper loss” in year one of ownership that can be used to offset other passive income gains or if they are eligible may be used to offset their ordinary income.

This is why we say that it is possible to legally pay no taxes 😲😲.

We always love sharing real-life examples, because we think it’s important to hear from other investors who are out there facing the same challenges that you might.

Here’s a true-life example from one of our investors.  One of our passive investors qualified as a full-time real estate professional.

Through his investment in multifamily apartments, he earned approximately $400,000 in paper losses from his investment.

Let’s pause 🛑 right here and make a super important point.

When we talk about paper losses, this does not mean that he actually lost money, it simply just represents losses in the eyes of the IRS.  

In fact, during that year, all his investments were cash-flowing and growing in value. How wonderful is that?

In the same calendar year 🗓️, his ordinary income earnings were $350,000.

This means that he actually had more losses (on paper) that he could use to offset his income than his actual earnings.  

With the paperwork filed on his behalf by his CPA, he was able to claim $0 ordinary income for that year, and that means that he paid $0 in taxes! He even had a $50,000 surplus in paper losses he can use to roll over to subsequent years until it’s all used up.

Can you see how a scenario like what happened to our investor friend can also happen to you?  Do you now see how it is possible to legally not pay taxes if you play by the rule and do things that the government is using taxes to incentivize you to do? 😉😊

If you want to make even more gains now and into the future in 2023, think about joining the Kitti Freedom Club so you can discover your personal path to financial freedom.



The Kitti Freedom Club


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  1. zelma says:

    Waiting patiently for you to come home and fuck me!

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Fortified with years of experience, fierce passive investors (we ALWAYS in our own deals), and selected high qualities investment opportunities to help build your long term wealth no matter what stage in life you're on. We will show you the ropes, help you build out a powerful, personalizes strategy, and give you masterful, financial freedom focused on living your lifestyle dreams.

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A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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