🚨 Does Sending Profits to a Holding Company Eliminate Taxes? Not So Fast… I think we’re missing some critical context here. The video seems to suggest a simple formula: → Company A sends profits to Company B. → Company B buys appreciating assets. → 🪄 Poof — no taxes. But if that’s the strategy… ❌ That’s not how the tax code works. Let’s break this down. ✅ If Company B (the holding company) provides legitimate services to Company A — and Company A pays for those services — then yes, that payment can most likely be treated as a deductible business expense. That would reduce Company A’s taxable income. But here’s where it falls apart… 📉 When Company B uses that money to buy an appreciating asset — that’s not a deduction. That’s a capital purchase — and capital purchases don’t reduce taxable income. Now you might get some tax benefit later through depreciation… But that depends on: • What type of asset it is. • How it’s used. • Whether the income it p...