# @edwardcollins_upleveled on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DK45sRBRDIA
- **Gondola URL:** https://gondola.cc/posts/35104077-edwardcollins-upleveled-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/5000d17a02.jpg
- **Posted:** 2025-06-14T17:11:07.000+00:00
- **Account Owner:** Edward Collins | Money Lawyer & Wealth Strategist (@edwardcollins_upleveled) — https://gondola.cc/edwardcollins_upleveled

## Caption

🚨 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 produces is passive or non-passive. 

• Whether the holding company structure is aligned with your overall strategy. 

So no — simply cycling money through entities isn’t a magical tax loophole. 

If you want to win at the game of business, you need to understand the rules — and play to win. 

Want to learn how to structure things the right way? 

👇 Drop the letters “GOB” in the comments and I’ll send you a free training. 

Credit (IG): 
Andre Pennington – [andrepennington] 

 SF0694

## Stats

- **Views:** 51
- **Likes:** 150
- **Shares:** 0
- **Comments:** 33

## Credits

These are the roles credited on Gondola. Credits may be incomplete.
A brand, account owner, or featured person is not necessarily the creator.

| Name | Username | Profile | Role |
| --- | --- | --- | --- |
| Edward Collins | Money Lawyer & Wealth Strategist | @edwardcollins_upleveled | https://gondola.cc/edwardcollins_upleveled | Talent |
| Hector Garcia | @Hector_FilmSchool | https://gondola.cc/Hector_FilmSchool | Content Producer |

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