Customer Reviews: Loopholes of the Rich: How the Rich Legally Make More Money and Pay Less Tax
Automotive Deals HPCC Amazon Fashion Learn more nav_sap_plcc_ascpsc Jake Owen Fire TV Stick Sun Care Handmade school supplies Shop-by-Room Amazon Cash Back Offer CafeSociety CafeSociety CafeSociety  Amazon Echo  Echo Dot  Amazon Tap  Echo Dot  Amazon Tap  Amazon Echo Introducing new colors All-New Kindle Oasis AutoRip in CDs & Vinyl Segway miniPro

Your rating(Clear)Rate this item

There was a problem filtering reviews right now. Please try again later.

Review Summary: The hardest thing for you to find is simple advice about which financial structure to use for self-employment and small business activities and how to balance cutting taxes, having flexibility, and avoiding asset exposure. This book is the best simple version of how to do all of this I have seen. You will obviously need experts to help you do your planning to match your needs, but this book will prepare you to work knowledgeably with those experts. Over a career as a small business owner, this book may be the most valuable one you will ever read.
Review: I am a big fan of Rich Dad, Poor Dad and wrote a review of that book that caused me to get a lot of e-mails asking tax-related questions. I am delighted to see this book because it means that those who wonder how developing passive income can cut taxes can start to understand why that occurs.
"Loopholes . . . are government incentives." For many years, Congress has provided tax incentives to encourage certain kinds of business development and investing. As a small business owner, you have the opportunity to benefit from some of those incentives, legally and morally.
This book will be most valuable for those who know little about the structure of the income-tax code and regulations, how property is protected against legal suits, and ways of creating financial flexibility. The tools you can use differ from year to year, as the rules change. This book is good for explaining the general concept of how these rules usually work. It also tells you what kinds of advice and expertise you need from others. Most people don't know where to start, and this book gives you a step-by-step process to assess where you are today, get the resources you need to help, evaluate a potential strategy, create a plan to implement a strategy, and monitor how well your strategy is working and whether you need to make any changes or not.
There is a tendency for popular books about business and investing to overpromise what can be accomplished. I thought that Ms. Kennedy avoided that problem. Based on my understanding of these issues, she describes things accurately and appropriately. When she gets into more problematical areas like VEBA, her cautions are well-stated and complete.
I have heard many people try to explain these concepts simply, and her explanation is the briefest, accurate one it has been my pleasure to read. Knowing more detail will not help you all that much.
The main drawback of the book is that it doesn't go into enough detail about the advantages of real estate investing. Rich Dad, Poor Dad makes quite a point about how taxes paid can be low on such businesses. Basically, the answer is that you get to charge off part of your investment as an expense (depreciation) and that there are special incentives for specific classes of real estate that reduce tax bills even more. So I expect that I will still get e-mails about why Mr. Kiyosaki is so positive on real estate businesses.
After you finish reading and applying this book, I suggest that you think about how your family life should be structured for optimum happiness. If you think about that subject as much as you do the structure of your finances, you will truly be wealthy in all the ways that count.
Live life with rich spirituality!
11 comment| 156 people found this helpful. Was this review helpful to you?YesNoReport abuse
on August 30, 2001
I started out my career as a highly compensated employee, but discovered that I was working at building a business for other people. I was also in a field (micro-electronics) that had a lot of highs and lows and I had gotten caught in a few lay-offs throughout the years. I made the decision to start building my own business. I was fortunate to find DKA (Diane's CPA firm) and they were able to help me restructure my rental properties into a real business and take advantage of many of the loopholes described in this book. I think the timing for this book is excellent as we see more and more lay-offs happening in businesses. It's no coincidence that there is a huge upsurgence in small and home based businesses at the same time. But, most small business owners are never taught how to take advantage of their businesses plus what it takes to have legal tax deductions. This book tells in simple, how to language how to find your own legal loopholes. It's also quite entertaining to read the stories of what others have done (or should have done). If you are tired of paying too much in taxes and tired of worrying about protecting your assets, this is the book for you! Be prepared to get motivated to take action.
This is an excellent book for beginners as well as experienced business people. Great job Diane.
0Comment| 50 people found this helpful. Was this review helpful to you?YesNoReport abuse
on July 19, 2003
I am continually amused when I hear people say that only the Rich get the tax breaks and the poor and the middle class have to "pick up the slack."The fact is, if you are paying too much in taxes, whose fault is it? In this outstanding work, Lechter and Kiyosaki lay out numerous strategies to substantially reduce your taxes. And by the way, reducing taxes is not only morally and ethically right, it is also smart.The biggest expence we pay is taxes. Use this book to plug up the dike on excess tax spending.Other books I recommend are More Wealth Without Risk, Brilliant Deductions and How to Pay Zero Taxes in 2003.
11 comment| 56 people found this helpful. Was this review helpful to you?YesNoReport abuse
on September 17, 2002
Loopholes of the Rich is a great book, written in the same candid style as the Rich Dad books by Robert Kiyosaki and Sharon Lechter. Diane simplifies the complicated and confusing tax codes and puts them in terms that I can understand. Small business owners get incredible tax benefits as Diane points to specific benefits for them. Diane also explains how to start your own business, if you don't have one, painlessly and easily!
Based on the principles that I've read in Diane's book, I've been able to save a lot of money in taxes, not to mention a considerable amount of liability protection strategies in using corporations as a safe way to manage my assets.
I strongly recommend this book for someone who is trying to make a difference in their financial situation, especially if they are attempting to start their own business. As a small business owner, I would have saved a considerable amount of time and money if I had this resource years ago. Rather than paying a CPA hundreds, if not thousands of dollars, you can gain Diane's expert advice at a great price-not to mention a great reference source for years to come.
I'd agree with other reviewers to a point when they say that Diane's material can be difficult to understand. But I wouldn't call it boring. Instead, it's material that you can't just read like some Clancy novel-it requires more thought and comprehension than that. She presents the complicated tax laws in diagrams and case studies, which is helpful. Still, this isn't a book for those people who want some quick fix to their tax problems, but a book to change one's financial success in regard to legal tax strategies.
I would strongly recommend this book. In fact, I hope that Diane writes another book!
0Comment| 65 people found this helpful. Was this review helpful to you?YesNoReport abuse
on April 17, 2008
This book had a lot of good information but I have to strongly disagree with the idea of putting a persons home into a Limited Liability Company. It sounds great but the IRS has made it clear that they will not find a business purpose for putting a home in an LLC. Also there are court decisions around the country that have found that putting ones home in an LLC does not protect the home from legitimate creditors. LLC are fantastic entities for asset protection, income tax planning, and estate and gift tax planning, in our practice we work them daily, but we never put personal homes into the LLC it is a waste of time and money.

Marty Burbank, Juris Doctor, Masters of Law in Tax
22 comments| 32 people found this helpful. Was this review helpful to you?YesNoReport abuse
on May 6, 2002
...1. Contrary to the title, there are few loopholes of the rich. In fact, I keep waiting to find the good content, all to no avail.There is little there that was worthwhile. It does howver, have lots of fluff and good marketing behind it.
2. Even more serious are the mistakes. I am not just talking about types,but major legal mistakes. For example, they cite taking a $5,000 death benefit on a tax-free basis. Sadly, this benefit was eliminated from the Internal Revenue Code by Congress roughly 5 years BEFORE the book was published. There are several other major mistakes like this one as well.
Save your money, I have read many financial and tax books. This one is one of the worst that I have ever had the displeasure of reading....
55 comments| 88 people found this helpful. Was this review helpful to you?YesNoReport abuse
on June 2, 2002
Having just started my own small business, this book really provided the insight and perpective I needed on ways to structure my enterprise.
What particularly appealed to me was Diane's style and approach. Too many books of this nature don't create a comfortable and readable format that makes intimidating information like this understandable and easy to digest.
Her five steps to financial freedom helped define for me what income is, how to create a good team to position myself for success, and the best ways to evaluate the progress.
Same with the 3-step tax code, which sums up the reams of government-speak tax laws on regulations, rulings and procedures.
The book is a great compliment to the Rich Dad series. Kiyosaki walks the talk by having Diane on his team.
0Comment| 30 people found this helpful. Was this review helpful to you?YesNoReport abuse
VINE VOICEon April 28, 2003
It's Not How Much Money You Make, It's How Much Money You Keep.
The title of this book is accurate, and it could have also been entitled, "Loop-Holes Of Those With Common Sense." There are numerous advantages available to those who take the risk and have the creativity and fortitude to do something on their own. These people are compensated for it if they educate themselves and IF they succeed. And on the contrary, being an employee is for most people. Much less control but some security, the routine of the comfort zone, and a familiar role defined within the job and confines of a corporate or governmental job. But today, for the employee, is there job security? Is there a routine and comfort zone? Will your job be there for you every morning? And, when it's not, will it be gone by your choosing or your employers?
After only a few chapters we'll once again be reminded of the futility of being a W-2 working stiff, perfunctorily accepting the crumbs that are left over after taxes. This book will be most beneficial to people who have recently, or have now just started to change, the way they think. Experienced small business folks, entrepreneurs, and MLMers, will likely (but not necessarily) already have most of this information down.
The premise of "Loop-Holes" provides us with the facts: since the 1943 federal tax law tragedy Americans work, pay taxes, earn, then spend. All in that order. After taxes and paying expenses, what's left for the middle class person who works as an employee? Ask yourself how much YOU have left. Whether your a service sector employee or upper-middle class professional, how much of the money you earn, goes in your pocket? And of what does go into your pocket, how much of it stays there? If you file a W-2 and are classified as an employee you will work a lot, but you are not likely to "make money." But you will have the liabilities (<--Kiyosaki) of a mortgage, car payment, credit card debt, and dinner out at a local budget franchise, once a week as a treat. Welcome to the reality of 2003, America. The common notion of getting raises at work as an employee to earn a higher income has unfortunately become a fallacy today. "The more you make, they more they take." Congratulations, you've just been bumped up to a higher tax rate.
Diane Kennedy provides more facts, proven strategies, and common sense than what we get from our educational system, and electronic and print media. Kennedy's information is contemporary, valuable, and necessary knowledge that we need on how to proceed in making our lives better. To pay an advisor for this knowledge would be costly.
These is a lot of practical information and real-life examples provided in Loop-Holes:
If your starting a business in hopes of receiving passive income in the future, there are 9 criteria the IRS uses to qualify your gig as a "true business" and not a "hobby business." The latter scenario cannot be used to deduct losses from your earned income.
Setting up Limited Liability Companies (LLCs)is highly recommended when investing in income producing real estate for the protection of personal assets. And how this is structured is very important. The C and S corporations are are also covered. When, why, and how should you begin the process. Deductions, leasing, licensing, royalties, trusts and many more things are explained also.
People often state how great it is to get the the tax deduction on mortgage interest: What do you get on average? For every dollar you pay to the bank in interest on a mortgage, you get 30 cents back with the deduction. I'll take it, but is 30 cents on the dollar a good deal to you?
There are several questionaires to fill in, so a person can assess (honestly!) what their true financial situation is. Their risk tolerance, what resources they can tap into, and what timeline can be established. Very important is the team of folks needed for a person or couple to be able go to for advice, support, and information.
The most common money people work and toil for is the W-2. As we know this is the 50 percent money we hear about from the Rich Dad Advisors. Great, you just got a raise. And, so did the government. Find out the steps to start making the other 3 types of money with Diane Kennedy. This is excellent, especially for folks without a lot of business background, to understand the some of the nuts and bolts.
0Comment| 45 people found this helpful. Was this review helpful to you?YesNoReport abuse
on January 1, 2002
This is a great book and should be included in everyone's library. In "Loopholes of the Rich" Diane Kennedy does such a fine job on explaining why the rich are rich and the poor and middle class will continue to struggle if they don't change the way their money is earned. If your looking to one day be financially independent, do yourself a favor, read and learn the material in this book.
0Comment| 19 people found this helpful. Was this review helpful to you?YesNoReport abuse
on July 18, 2001
The book contains information for a novice or an expert. Starting from the very basic, practical concepts about accumulating wealth, it eventually deals with most complex tax issues like VEBA, Split dollar life etc. It provides lot of information which can only be gained from experience. It covers some key issues which even most professionals are unware of. Besides laying out a sketchwork for accumulating wealth it provides guidance on how to keep the most of it and in the best protected form. I would recommend it to amateurs and professionals of all ages who are or are planning to be wealthy.
0Comment| 18 people found this helpful. Was this review helpful to you?YesNoReport abuse

Send us feedback

How can we make Amazon Customer Reviews better for you?
Let us know here.