Let’s all face it, we are joined at the hip with a financial partner whether we like it or not. You know the big monkey I am talking about. It’s the family member that no one likes but he always shows up on the 4th of July and April 15th! Uncle Sam is a reality in our lives regardless of our agreement with the slice of the pie he decides to take. But did you know we have a huge choice in how much we let him take.
Robert Kiyosaki said “It’s more important to grow your income than cut your expenses. It is more important to grow your spirit than cut your dreams.”
And I want to show you how to do both by limiting your Tax exposure.
The reality is there is a rule book that we must learn to play by that will get him out of our lives, or at least minimize the portion he helps himself to every time we do good financially. See the IRS tax code is that book and while no one I know loves to read it,
Real Estate Investors have learned to love the results of the study of it.
And I want to show you how we can not only get Uncle Sam to stop taking so much, we can actually get him to walk away and leave us alone totally, but you are going to have to decide if you are ready.
Everyone hears about how large corporations and wealthy families don’t pay any taxes and they get upset but that is it.
“Doesn’t it make more sense to play by the rules of the rich, and earn more while paying less in taxes?”
– Robert Kiyosaki
They don’t usually take the time to become a student of these behemoths that avoid the tax man. But everything they do is totally legal and trust me you can do it too. But it is not easy and surprisingly it is also not hard.
I mentioned earlier becoming a student of the tax code, but let me save you some time and let’s talk about a few of the things you can do to beat the tax man at his own game using the IRS code as your road map.
First of all when you are getting started the name of the game is growth, and the best way to protect your growth is to do it either tax free or tax deferred. Tax free growth is available to everyone with a little planning, let me show you how.
Let’s say you are self-employed, want to get involved in real estate investing without paying taxes. Start with a Simple IRA. This vehicle will allow you to stash $56,000 a year pretax into your retirement. The best part is you can buy real estate with your retirement account. I call that simply amazing!
OK I get it not everyone is self-employed yet. So let’s say that you have been smart with your money but you are getting clobbered as a w-2 wage earner and there just does not appear to be any way to get out of the tax bill that is due.
And to some degree you are right, but what if you were to take your money and instead of just investing straight into real estate you set up an account that allowed you to pay taxes when you put it into your account but not one penny in taxes while you grew your money?
Well, you are with a Nondeductible IRA. This will allow you regardless of how many transactions you do or how profitable you are on each deal to only pay taxes on the profits made when you take them out after retirement age. So instead of buying a house making $50,000 on it in 5 years and giving 28% to Uncle Sam you can keep the whole $50,000 growing and growing. This will allow you to get to your goal much faster.
Employing these strategies will prevent you from losing your momentum every time you make some money and have to give up a large portion of the pie, otherwise called a financial set back, every time the profits are harvested.
Let’s talk about one last option to keep Uncle Sam’s greedy hands off your hard-earned money. More particularly about IRS code 1031 and how it can save you a boat load in taxes.
Say a person has a property that they bought for $50,000 and its now worth $100,000 and they want to sell it. Normally they would pay tax on the $50,000 that they will make from the sale. But if they do a 1031 it won’t require them to pay taxes.
Put simply this gives a person the ability to swap one property for another and not realize the gain as taxable income.
Put differently an owner can sell his property and within six months replace that property with property of equal or greater value and not have any taxes due at the time of the sale.
So, as you can clearly see it is almost as important to have a solid tax strategy to keep your capital working for you as it is to have a real estate acquisition strategy.
But don’t think you have to tackle these strategies on your own.
Let us show you the road map to keep you out of the pitfalls and accelerate your real estate growth journey.
We have the team you need to meet that will not only give you the knowledge of how to do these processes properly but we will work alongside you to ensure you execute properly.
This will lead to a winning strategy for everyone.
Paying less taxes is Vital to maximizing your retirement growth
Hop over to the My Vertical Equity.com to learn more about Paying less taxes to maximizing your retirement growth or talk about it with [email protected] 208-254-0088
Interested in hearing about exclusive real estate investment opportunities?
Subscribe here to get on my real estate opportunities list.