Heads Up Hollywood

Nasdaq continued to slump. In April, the court announced that it had collected evidence to prove that Microsoft did have monopoly behavior, and Microsoft faced possible penalties for being split.

The headlines on the front pages of many economic newspapers startled investors in a cold sweat—"Technology giant Microsoft is about to fall"!

People's panic about technology stocks has finally arrived after the frenetic Internet bubble.

At the same time, Cohen, the chief investment analyst of the famous investment bank Goldman Sachs, issued a suggestion to investors to reduce their holdings of technology stocks for the first time in 10 years.

The atmosphere of Nasdaq suddenly fell, and various analysts changed their tone and began to sing bad news, and the crisis began to be revealed.

Countless investors, foundations, and securities institutions started a crazy sell-off wave!

The crisis broke out and the bubble burst!

Except for a few companies such as IBM, Oracle, and Amazon, which barely supported it, most high-tech companies saw their share prices drop by as much as 50%.

Yahoo's share price has fallen to $130, Apple has also dropped from $40 in March to $20, Microsoft, Cisco, AOL...

No one can escape!

The entire bubble crisis will last until September 2002, and Nasdaq has evaporated a total of 5 trillion US dollars.

This is just the first stage of the bubble bursting, and no one can hide from this catastrophic bear market. Even Merrill Lynch, Scott Swift's former owner, the world's top securities institution, always avoids risks by means of fund hedging, and the loss this time exceeded 150 billion US dollars!

Fortunately, it is the stock value that evaporates, not the company's cash flow. Otherwise, Merrill Lynch would face bankruptcy and be acquired without waiting for the subprime mortgage crisis.

However, there is one person who saw the Noah's Ark of life in this turbulent and turbulent stock market.

That is Don Walker!

Yahoo shorted 10.86 million shares, with a borrowing price of $367.4, a repayment price of $131.2, a profit of $236.2 per share, and a total profit of $2.565 billion;

Cisco has a total share capital of 7.2 billion shares, and shorted 120 million shares with a 5% margin. The borrowing price was US$74.3, the repayment price was US$44.6, and the price difference per share was US$29.7, with a total profit of US$3.564 billion;

The total share capital of Apple is 234 million, 8 million shares are shorted, the borrowing price is 39.4 US dollars, the repayment price is 21.6 US dollars, the price difference per share is 17.8 US dollars, and the total profit is 140 million US dollars.

In addition, Twain earned $270 million from Microsoft, $320 million from AOL Time Warner, and $73 million from Dell.

When shorting Amazon, because the ratio was too high and the principal was too small, the position was forced to close when the stock price was still rising, and the loss was 35 million US dollars.

Through the first plummeting stage of this bubble crisis, Dunn earned a total of nearly 6.9 billion US dollars from the futures market!

After deducting capital gains tax, the total income is 69-(69-10)*20%-(10-0.8)*15%=$5.58 billion!

While Tang En was excited, he still felt regretful.

No wonder that when it comes to the Internet bubble crisis, everyone thinks of Yahoo and Cisco. It turns out that these two companies are the big players. Especially Cisco, with a total share capital of 7.2 billion shares and a total market value of close to 550 billion US dollars, if you short 5% of the total share capital, how much income will you get?

$8 billion!

However, trader Scott Swift, as a professional, cannot put all his eggs in one basket on the premise that he cannot predict the future.

Such a result is destined to greatly reduce Tang En's income.

But Tang En didn't care, the bubble crisis was not over yet, it was only the first stage of the bubble bursting, and there was a second stage - the 9/11 incident.

In short, Tang En had to earn enough capital to acquire Universal Pictures before the Vivendi Group suffered a huge loss and planned to sell its publishing group and Universal Pictures to withdraw funds.

So far, it's not a big problem.

April 15th, the tax deadline.

Previously, he was deceived by an accounting firm. It was not until he communicated with Shirley Hershler that day that he realized that the top companies and the top richest people in the United States all have their own financial management teams.

Outsourced tax companies often avoid many gray areas due to risk issues, which greatly increases the customer's tax bill.

Because the box office dividend of "Star Wars Episode 1" has not yet arrived, Tang En only paid 7 million US dollars in personal income tax.

But Tang En Pictures paid more than 77 million U.S. dollars in corporate income tax.

Twain repaid Marvel Studios' debt of 35 million US dollars, and "Spider-Man"'s loan of 150 million US dollars...

Later, Tang En injected another 1 billion US dollars into Tang En Pictures, and gave Scott Swift a big red envelope of 30 million US dollars, and still had 4.25 billion US dollars in remaining funds.

...

As for the use of such a large sum of money, Dunn consulted with his financial management team. The person in charge is Blanca Reyes, who holds a bachelor's degree in finance from the Massachusetts Institute of Technology and a master's degree in law from Harvard, and was given by Brian Lord. The annual salary of the talents introduced by Tang En... 6 million US dollars!

You know, the annual salary of the president of Dunn Films, Bill McNick, is only 5 million US dollars.

Of course, he used to be at 20th Century Fox, and he could get more dividends. The annual income was between 10 million and 15 million US dollars, which is currently impossible for Twain Films.

Blanca Reyes' salary is very high, but he has indeed brought too much convenience to Twain. The simplest example is that he has successfully negotiated with Lucasfilm. Box office dividends will no longer be subject to personal income tax, but to capital income tax.

This article alone saved Tang En more than 30 million U.S. dollars in taxes.

"Last year, Buffett paid a total of US$1.736 million in personal income taxes." Blanca Reyes looked at Tang En with a half-smile, "Do you know how he did it?"

Tang En felt a little bitter, "Just tell me, what should I do?"

Blanca Reyes said: "Setting up a trust fund is a common method for the top richest Americans to avoid taxes."

"how to say?"

"You know, all the heavy assets of the rich have to pay taxes, including real estate, artwork, private jets, gold, luxury goods, cruise ships, etc. If the rich's capital chain is broken, these taxes alone are enough to make people Bankruptcy. For example, the Greystone Castle in Beverly Hills was nationalized and became a tourist attraction because it couldn’t pay property taxes.”

Tang En nodded. Nicolas Cage was an example. Bewitched by his manager, he bought a lot of art and real estate, but he couldn't pay the taxes and was forced to make a lot of bad movies.

"Can the trust fund avoid this situation?" Tang En frowned, understanding what Blanca Reyes meant.

Blanca Reyes smiled and said: "Yes, personal taxes cannot be delayed, but corporate taxes can be postponed in many ways. If these assets are not placed in the personal name, but in the fund Under the name of the association, even if the capital chain is broken, there will be a buffer zone."

Tang En suddenly realized, "Good idea!"

Afraid that he would not understand, Blanca Reyes continued to explain, "This trust fund can be your private fund, so even if you don't have any property in your name, you can still indirectly control these properties through the foundation .In life, it will not cause any obstacles."

Tang En understood this routine, and said with a sense of enlightenment: "Oh, personal tax avoidance is very troublesome. The federal government always tries to squeeze the income of the rich. If you are not careful, you will face charges of tax evasion. But for companies, the federal government The government will always introduce various policies to encourage the development of companies.”

Blanca Reyes said approvingly: "Yes, this is the second benefit of trust funds, which can obtain policy benefits that individuals cannot obtain. Individual tax rates are often fixed, but corporate tax rates will vary with the national economy. What’s more, companies have far more tax avoidance methods than individuals!”

"Like an offshore company?"

"That's right, an offshore company!" Blanca Reyes looked at Tang En with a smile. He finally understood why the young man in front of him had achieved such great success. He is really smart. Tax funds are transferred everywhere. This is black money and will be investigated by Interpol. But the company is different. It can avoid paying taxes through offshore companies. Of course, this process is very complicated. If you are interested, we can slow down in the future. Slow down."

Tang En waved his hand, "Is there a third benefit?"

Blanca Reyes smiled and said: "Yes! For example, buying a private jet. If you buy it personally, it is not within the scope of tax reduction, but it is purchased in the name of the company. This is a public expenditure. When paying taxes, That part of the expense needs to be subtracted."

Tang En's eyes lit up immediately, "Isn't it true that all expenses are within the scope of tax reduction? Buying a car, house, or airplane can be turned into official expenses, and meals, accommodation, condos, and parties can all be reimbursed." ?”

Blanca Reyes couldn't help laughing, "Theoretically, it is, but it would be embarrassing to show it like this on the books."

Tang En laughed out loud, there is really a plan, and there is a countermeasure!

The rich in the United States are really smart to come up with such shameless tax avoidance methods.

It's no wonder that Buffett's annual tax is only more than 1 million, and then he is shamelessly shouting for the federal government to increase taxes every day. Damn, if you like paying taxes, why don't you hire a professional financial management team to avoid taxes?

Be a bitch and set up a torii!

"Actually, there is a fourth point, which is also the most important point for rich people."

"What?"

"Inheritance tax!"

Blanca Reyes paused for a moment, and said slowly: "The inheritance tax exceeds 50%. After paying the inheritance tax, you have to pay personal income tax. No one can accept it. So the most important point of the trust fund is Avoid estate tax."

Tang En was taken aback, "Is it possible?"

Blanca Reyes shook her head, "Before he dies, changing the trust fund into a charitable fund will allow the descendants to completely take over all the property of the rich man without paying any fees. In fact, many rich people publicized The same goes for donating all your property to charitable foundations."