Insurance Money isn't Free



Linus and Luke talk the opportunity cost of security and the reality of insurance and business write-offs.

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Albus Dumbledore

8:08 I’m confused why he would be paying income tax? He is not the one personally making the money to invest in the infrastructure upgrades. The business is making money and then they just becomes an expense right?

TheManelich

i think linus isnt rich enough to understand that with all tax code trickery some of the richest people pay less than 1% of their income in taxes

TheManelich

'"donate" to your own foundantion thats is not founding anything is just isolating you from taxes because that foundation will pay for your private jets/mansion thats is own by your foundation. remember the trump foundation!

Joshua Plantan

Insurance is free money if your the one that gets hit and the other party is responsible and you don't care to fix your car, but still even then it technically isn't free because of the fact that the car now is worth less because it's been in an accident and that effects resale value

clint Miller

Glass insurance is different … it’s usually a 10-50 deductible and is a rider on your regular policy it’s not the same as a comprehensive or a accident claim

David Mattatall

Anything over a few million you establish a holding company and pay fees, but functionally avoid all taxation.

The Personal donations help zero out income tax
The corporate donations help lower tax burden for an institution

The rich do, in fact, buy the most expensive things so it's net worth neutral, or even net worth positive. 10 million on a boat you can say is worth 12 million.

dang dude dan

yaaaaawn

Aimero

In Germany we have something called "Teilkasko" and they will pay for everything that isn't caused by regular traffic and it won't raise your Premium

L.No.Solace

If you dont want stuff broken into, dont park anywhere inside NYC

PaulSD

And then there's LockPickingLawyer that shows that both dumb and smart locks are too easy to break into. Might as well just bolt the door at this rate.

Tom E

As a 27 year old with a perfect driving history I truly have people that abuse this system. It costs me nine or ten thousand dollars a year and every year it is more. Screw yall.

Zainullah Khan

Found out today linus only knows 4 first world countries 😂

SphinxKingStone

Car insurance thing sounds strange to me. Here in Russia you just pay every year and if insurances covers type of damage and it’s not super expensive they just fix it for free

WITC Designs

1:34 Aren't American and possibly Canadian houses normally built completely out of wood and drywall, or is it just internal walls? I always laugh when I see locks on doors in a drywall house on HGTV.

Asmosis Yup

Get a fancy lock/alarm for the insurance deductions, then leave the window open so burglars don't break your fancy lock.

Gandalfur is Otherworldly

Free lunch? Insurance companies are professional scammers 95% of the time

Random User

If bad actors didn't exist, we wouldn't have films like National Treasure, Lord of War, and Ghost Rider. Nicolas Cage may be a bad actor but come on…he's not THAT integral to a business. Give the actors a chance mate! lol

Fat Vegan Liberator

Okay, I'm not sure how it works in Canada, but I'm sure there's different ways of doing your taxes where you can write stuff off all in one go?

If it's the same in the UK, then I guess it would depend if you want to take advantage of depreciation etc. Maybe if you do simplified accounting you could do it; but you may lose certain benefits of your current accounting method.

Although I am a sole-trader, so it's likely very different for yourselves.

melogranohifi

Genuine curiosity, what’s the assumed useful life on your content assets? I understand that accounting rules might force you to amortize, but given the behavior of YouTube views you could probably argue that the useful life is very short, meaning from an accounting and tax standpoint your financial statements would look identical except for a few million bucks moving from SG&A to D&A. Does Canada have annoying rules where they force you to assume a crazy long useful life for no good reason?

Daisy

What people who actualy try and write of things against tax to reduce there tax bill in real terms do is they buy something with a nominal value thats hard to value like art then they put on an exerbition of the artists work and buy one piece for an astronimical sum then donate all the peices to a musiem so that now the tax wright of is more than they paid for the art there is an excelent econimics explained video on this practice

Simon Bauer

if there where no "bad" actors not only in infotech we wouldnt have space travel among many other things.

Brian Burke

The question is actually where they donate to, normally billionaires are donating to their own foundation, so they still have control and direction over all that money.

Goblin

Can we take the term bad actors and just scrap that shit. Who tf talks like that

Richard

Wait Canadian company's don't have an annual investment allowance? In the UK you can claim 100% of equipment costs up to £300,000 (increased to £1,000,000 temporarily) provided it's equipment. Buildings are different though

Evil Xi Jinping

I don't get it, I didn't have to pay more money when I got my windshield fixed
Why would they increase what I have to pay?
Like what?

Ahdok

I remember the last time Musk donated money to charity it was to himself, so he did sort of get free money.

Karl Svazas

"Do you even know what a write-off is?"
"No…but they do! And they're the ones writing it off!"

LanK111er

In America amortization is typically a choice and it's usually advantageous if used properly to minimize taxes in the future.