hollywood billionaire

Chapter 256 Monaco Yacht Show

【Successful consumption of USD 70000000.00 this time, rewards of USD 126000000.00】

[In order to avoid unnecessary suspicion and trouble, we will display the cash rewards with more than eight figures here in the form of cash withdrawal amount.Anytime, anywhere, you can choose to write "Withdraw $xxx.xx" in the memo to use the quota. 】

[The amount written down will arrive in the Chase Bank savings account within 15 minutes on weekdays.If the cash withdrawal information is sent on weekends, the actual arrival time will be postponed to the next working day.Please plan the information sending time reasonably. 】

[Due to the large amount of this reward, we do not recommend that you withdraw it all at once to avoid attracting attention.At the same time, taking note of your consumption tendency in continental Europe, we will also provide you with another way to withdraw cash. 】

[You can choose one or more of the following banks to obtain a cash account or asset management account that we have pre-buried in your name. The total cash in the account shall not exceed the reward limit:

1. BNP Paribas Wealth Management, strategic asset allocation plan, 86754602.8. (Note: a savings plan that includes multiple accounts in multiple banks)

2. Credit Suisse Group AG, private bank account, 43662810.4.

3. UBS Group AG, Global Wealth Management Account, 47296672.0.

4. Swiss GAIN Capital, private bank account, 36905611.7.

5. Coutts Bank, UK, private bank account, 24369773.3]

[You can enter "Activate account of xxx" in the memo to activate, and the account information will appear immediately. 】

【Good luck, Han Yi. 】

【$0/$126000000.00】

Isn't this... too considerate?
Sitting in the living room of the one-bedroom sea view suite at the Monte Carlo Hotel in Paris, Han Yi, who had just finished taking a bath and was wrapped in a bathrobe and enjoying the night breeze in front of the window, sighed.

The more Han Yi consumes as a billionaire, the more he understands the differences in the world.

He was already mentally prepared to pay a huge amount of tax for the Gulfstream G650ER, but Antoine Gachet told him that the current US tax system stipulates that assets that have been put into use since 2015 and meet the exemption criteria will be exempted. Bonus depreciation deductions can be made at 50% of the adjusted base price in one year, 50% in the second year, and 50% in the third year. It will not drop to 2018% until 40.

A brand new private jet is an asset that meets the criteria for exemption.

In other words, a US$7000 million private jet can bring Han Yi an income tax deduction of US$3500 million.

Calculated based on the top tax rate of 39.6%, the tax saved by this purchase reached US$1386 million.

Strictly speaking, what Han Yi purchased from JPMorgan Chase was a second-hand private jet, which could not be considered as "brand new". However, JPMorgan Chase, who knew the IRS well and had many revolving door tax officers working internally, , it is very clear how to exploit this kind of vulnerability.

When JPMorgan Chase purchased the aircraft from Gulfstream, the purpose of the purchase submitted to the IRS was to "provide corresponding asset allocation services to JPMorgan Chase's private banking clients."

Every flight in the past two years has been a "test flight experience" for different customers.

Therefore, how can the G650ER bought by Han Yi from JP Morgan be considered second-hand?

It must be brand new.

After all, JPMorgan Chase is not using it, it is just distributing it.

Any law has different aspects, and the key depends on who is using it.

This is true even for the IRS, which seems unkind to outsiders.

It is true that those who violate tax laws will be severely punished without credit.

But billionaires don’t need to break the law at all.

Just walk through the spacious back door specially opened for them.

"I know I am the beneficiary, but..." Han Yi, who heard the news for the first time, said to Antoine Gachet, "This is too crazy, how can a country... be willing to give this This level of consumption tax reduction is still so much?”

"This is America, Mr. Han. Capitalism at its best." Antoine Gachet replied with a smile.Neither of them knew that after the business tycoon from New York entered the White House in 2017, the Tax Cuts and Jobs Act proposed by him would further increase the depreciation deduction bonus for large assets such as private jets to 100%.

Yes, 100%.

A $7000 million airplane is worth $7000 million in income tax.

"Fly to Ireland and breathe in the St. George's Channel air as you hit golf balls into the picturesque distance. Cross the country and board your mega-yacht for an overnight Hudson River cruise with supermodels. Or hosting the governor's wife on your own private jet... These are just a few of the pleasures that the wealthiest Americans have experienced via private jets in recent years. What makes them even more delighted is that these luxuries, You can actually enjoy tax breaks.”

Antoine Gachet's description is quite pictorial, and even a hint of money-infused poetry can be found in it.

"There are many ways for the super-rich to avoid paying taxes in this country. The most audacious ones can reach billions of dollars. You know what Peter Thiel did?"

"Founder of Paypal?"

"Yes, that's him. Over the past 20 years, he's turned his Roth IRA into a giant tax-free piggy bank."

"Roth IRA?"

"A tax-free retirement account designed to encourage Americans to save money for their golden years. The average person's Roth IRA has about $[-]. Guess how much Peter Thiel's Roth IRA has?"

"How many?"

"A billion dollars."

"Fuck me."

"Yeah, fuck everybody. If Thiel gave every one of Houston's 230 million residents a $2000 bonus today, he still wouldn't have enough money in his retirement account."

"More importantly, as long as Thiel waits until April 2027, six months before his 4th birthday, to withdraw the funds, he will never have to pay a penny in taxes on these billions of dollars."

"Oh, 2027." Han Yi thought for a while, "That's okay, after all, the money has to be kept there for 11 years before it can be used."

"It's just that you can't withdraw it from his personal account, Mr. Han." Antoine Gachet touched the peak of his nose, smiled and shook his head, "As long as you don't withdraw it, stocks, bonds, mutual funds, ETFs, Real estate investment trusts, whatever you want to do.”

Han Yi was completely speechless at this time.

American law is indeed as safe as it gets.

For wealthy people who want to avoid taxes.

Of course, as a vested interest, he will not complain too much.Whether to reduce taxes or not is not a big issue, as long as there is no obvious administrative obstacle to his increasingly staggering wealth appreciation plan.

"So, Antoine, besides private jets, what other assets are eligible for exemption?"

"The definition provided by the IRS is actually quite broad. As long as any asset meets the following five conditions, in principle, it can be discounted or reduced."

Antoine Gachet opened his right hand in front of his eyes and retracted the fingers one by one from thumb to little finger as he narrated.

"First, it must be property you own, not something rented or borrowed. Second, it must be used for business or income-generating activities. Third, it must have a foreseeable and determinable service life. For example, a private jet , there will be a clear service life.”

"Fourth, the property you own must have a useful life of more than one year. Then the last one is that it cannot be exceptional property. The so-called exceptional property is certain intangible assets or fixed-term interests."

"Some, intangible assets." Han Yi quickly captured the key attributes in Antoine's words, "Some here should not include music copyrights, right? Because, except for a few cases, the income from music copyrights is almost It all goes down over time.”

"Yes, music copyrights are not among the excepted properties mentioned here. While music royalties are generally taxed at a higher rate, they also have unique tax benefits. As you said, it is precisely because of the growth of music royalty income over time. It declines over time, so it's considered a depreciating asset by the IRS. So, music royalties are amortizable, which means investors can write off the cost of that asset over a period of several years...generally five years."

No wonder capital is so keen on music copyright.It turns out that, like private jets, they can help their owners legally reduce taxes through depreciation and amortization and many other means.

A high-quality intangible asset that can maintain value, appreciate in value, continue to create actual income, and can also be used as a tax reduction tool. The actual maintenance cost can be almost directly linked to the personnel cost.

If you don’t buy it, what should you buy?
Investment funds that use music copyright as their ballast will always have unshakable stability and basic value as long as popular music survives, human civilization survives, and the copyright protection period expires.

Han Yi originally thought that he had an in-depth understanding of all kinds of weird and bizarre aspects of the music industry, but every day after his rebirth, he was actually receiving a lot of new and unheard information, refreshing that he was actually only suitable for working in the ivory tower. The old cognition of living here.

Depreciation…

Amortization…

There is no end to learning.

"understood."

"So, judging by the five conditions you listed, the yacht can also be an asset that qualifies for depreciation deductions, as long as I can prove that it is used for my business activities?"

"You are right. You can sign a lease contract with Han Music to use it as the company's theme party venue during ADE, or for other purposes... There are many ways to accomplish this request, so you don't have to worry at all."

"Any form of commercial building is also included in this category, including offices and hotels...rental apartments?"

"correct."

"What about the land?"

"Land is not included. Because land only has market price fluctuations, there is no possibility that it will necessarily depreciate over time."

After clarifying the criteria and limitations of depreciation exemption assets, Han Yi's next wealth appreciation plan is clear.

Yachts, hotels, resorts, office buildings, high-end apartments.

Any luxury item that has a useful life, can be used for commercial purposes, and can bring him positive emotional feedback is on his consumption radar.

...Although it doesn't matter to him whether he pays taxes or not, or how much taxes he pays, after all, the little he can save and the bargains he finds can also bring him a sense of satisfaction, right?
In terms of price alone, the consumption that Han Yi is most likely to be able to afford at present is a yacht.

"But as for yachts, my personal opinion... you don't actually need to register it in the United States."

As the former head of the Rothschild Heritage Group, Antoine Gachet has an advantage that ordinary asset management experts cannot match in terms of how wealthy people should manage their toys and how to use these toys to maximize their enjoyment of life.

"First, while the IRS provides tax deductions, there are many countries in the world that will not tax you at all for registering a yacht."

"You mean the Cayman Islands?"

“The Cayman Islands, Gibraltar, the Isle of Man, the British Virgin Islands, Bermuda, all areas that are part of the Red Flag group, are popular registration locations for yachts.”

Red Flag Group.

After chewing the word "Red Ensign Group" for a while in his mind, Han Yi could probably figure out its meaning without asking.The red flag here definitely does not refer to ideology, the national flag of the motherland, or the supermarket chain in my hometown.

The so-called red flag refers specifically to the flag style of the Crown Dependencies and British Overseas Territories.The upper left is the British flag, and the other areas are covered in red, matching the coat of arms of each region.

"Hongqi Group's yacht... has less corporate tax and will make traveling more convenient?"

Han Yi put forward his speculation on this phenomenon.

"In places like the Cayman Islands and Bermuda, the corporate tax is 0%. Registering a yacht under a company makes it easy to manage and you don't have to worry about tax issues. In addition, in order to ensure that sailing vessels meet safety standards, in 1982, 27 countries signed an agreement in France We have signed the Paris Memorandum of Understanding to jointly establish port state surveillance agencies to conduct safety inspections of foreign ships calling at ports in various countries.”

"Based on the average maintenance status of ships registered in each country, the PSC has established white lists, gray lists and black lists respectively. Ships registered in gray list and black list countries need to undergo very strict safety inspections, which not only wastes time but also does not work Convenient... you know."

“Are all Hongqi Group areas on the white list?”

"And it is the area with the lowest tax rate on the white list." Antoine Gachet nodded in affirmation.

"That……"

"Your country is also on the white list." Antoine immediately guessed the problem that Han Yi had not exported. "The defective rate is extremely low. I remember that... only 100 out of 1.5 ships have safety risks. It’s on the same level as Luxembourg.”

“Registration in a white-listed country is particularly useful for those wishing to stay in EU waters. Vessels owned or used by EU residents are subject to EU VAT, but owners of private yachts registered under a non-EU flag are subject to EU VAT. It is allowed to sail in the Mediterranean on a temporary import basis. It can be exempted from VAT and customs duties for 18 months, and you can apply again after 18 months."

"And this leads to the most important question."

“After owning a yacht of your own, where do you want to sail the most? In other words, in which areas can you be willing to pay an annual maintenance fee equivalent to 10%-20% of the boat price?”

"So...your answer is Europe?"

"Everyone's answer should be Europe." Antoine Gachet opened his arms and leaned back exaggeratedly, as if he wanted to use this fierce gesture to express his certainty about this answer.

“Yes, the United States has the largest number of superyachts in the world, yes, but you’ve lived here for so many years and it’s clear to you that there really isn’t much of a yachting culture here. Just take, for example, Los Angeles. Where can I go on a yacht? Catalina Island?"

"The same situation is true in New York. The coastline from New York to Maine is very spectacular, but at least half of the year is not suitable for going to the sea. Can you imagine what it would be like to take a boat from New York to Maine in the winter? ?”

Having said this, Antoine Gachet crossed his arms and made a very dramatic gesture to catch a cold.

"The Chesapeake is in the same situation. It's just a pretty ordinary bay. It doesn't have any commendable food or scenery, and the climate changes day by day."

"What about Florida?" Han Yi said with a smile as he contradicted Antoine, "The climate there should be considered pleasant, right?"

"There is climate, but where is the culture?" Antoine Gachet's quick answer showed that this was not the first time he had argued with others about this issue. "What is the ultimate yachting experience? It is on the sea. While boating, you can stop whenever you want. Every half hour there is a wonderful port with completely different scenery, food, history and even language. One boat, one day, from a modern metropolis with an international airport to perhaps no one at all A secluded English-speaking fishing village that meets your every vacation need is what buying a superyacht means.”

“Nowhere else in the world, except the Mediterranean coast, can offer such a rich and diverse range of sailing experiences. Ibiza, Saint-Tropez, the Amalfi Coast, Santorini in the Cyclades, Mique Norse... or even Sardinia! You can have paella from Valencia for lunch and then go back to Lisbon in the evening and drink wine with oysters... or in your case, cola. You're not in Lisbon Just bought a villa? This is the best way to use it.”

"Or... have an espresso in the morning, set off from Naples in Amalfi, have a plate of Cacio e Pepe in Rome at noon, and go to Florence's Piazzale Michelangelo to watch the sunset in the evening. You and your loved one, Every crazy idea will be understood, accepted, and realized. Only in Southern Europe can you do this. Only then can you realize why owning a superyacht is more valuable than a private jet. Traveling around the world is even more fascinating.”

"Sounds...appealing."

After rehearsing the plot described by Antoine Gachet in his mind, and giving a few specific faces to the "people you love" in his mouth, Han Yi's originally calm eyes finally filled with emotion. There was a ripple.

"So, if I want to experience this feeling, what is the most convenient and fastest way?"

"European matters must naturally be resolved in Europe." I couldn't tell it when we first met, but the longer I stayed in Los Angeles, the big European feeling in Antoine Gachet always wanted to overwhelm North America. ism becomes more and more obvious.

"In terms of scale, the International Boat Show held in Fort Lauderdale, Florida every October is the largest, with 10 visitors, 1300 boats, and more than 1000 different brands participating."

"But it will never be the Oscars of the ship industry... Well, no, if we really want to make an analogy, it should be said that it will never be the Cannes Film Festival of the ship industry. The exhibits in Fort Lauderdale may More comprehensive, the transaction volume may be higher, but it will never be the place where the top wealthy choose superyachts. In the streets of Miami filled with drugs, smuggling and violence, signing yacht contracts for tens of millions or even hundreds of millions of euros? I mean , come on.”

"When you encounter large-scale transactions that occur only a few times a year, you not only look at the product and price, but also the environment and atmosphere."

"And nowhere else, screams SUPERYACHTS louder than Monaco."

"Believe me, Mr. Han, based on your financial strength and your purchase records in other fields in the past six months, as soon as you arrive in Monaco, there will be no need to make an appointment with any brand or agency, and those superyacht brokers will swarm When I arrive, I will obediently line up in a long queue at the door of the hotel, begging for your favor."

"When you get there, you may even have breakfast divided into three meals. Each meal involves meeting an agent and each meal looking at information on a superyacht."

(End of this chapter)