They say "death and taxes" are the only two certainties in this life.When it comes to achieving financial independence, death and taxes are essentially the same thing.
December 16, 2005 (Press Release) --
Over time, the friction of taxation will do to your financial future what the Colorado River has done to the Grand Canyon.
In order to build wealth,you must maximize your tax deduction, thus minimizing your recognized taxable income.
Many property seller mistakenly think pull all the equity out of the sale of their real estate. Uncle Sam doesn't think that's such a good idea, especially if you are an investor. That's why he slaps our hands so hard by taxing us on our gains and rewards us handsomely with tax savings when we structure our transactions creatively.
The US Tax Code provides several strong incentives for doing just that,and the effects can be extremely powerful in building wealth. Two of these incentives make it exceptionally profitable for you to "both a lender",and a borrower be!
Section 453 of the United States Tax Code (Installment Sales) allows investor to avoid the bulk of their taxes due on capital gains. Utilizing the Seller Financing technique,we can defer these taxes by paying them in very small incentives over a long period of time. These are several other benefits as well.
When offering Seller-Financing it improves the marketability of your properties. If structured correctly it also creates an opportunity to maximize sale values. Although the value added appears more pronounced in a slow market, the tax benefits make Seller Financing extremely attractive regardless of economic conditions.
Seller Financing or a carry back note also provides us with a well-secured, high-yielding, near-cash asset that offers us a broad foundation and a great deal of flexibility in building our investment portfolio. Such notes strengthen our financial statement, while earning much better returns than saving accounts.
Interest payments can kill our efforts to achieve financial independence. There is an exception,besides the tax break that lending our equity brings to the table. Uncle Sam throws investor another meaty bone as well: Tax Code Section 163 allows us to write off interest on debt used to finance the purchase of our investment assets!
Financing a high percentage of the purchase price provide a large interest deduction in the early years of ownership. This deduction generates a tax shelter,which shields any positive cash flow. It also shelter the non-cash equity buildup occurring through principal reduction on the loan. At times it may even shelter some of our other income from taxation as well.
Here's a perfect example--say a client or an acquaintance owns a $75,000 rental home with $35,000 equity. He wants to sell this rental in order to purchase a $120,000 duplex, which has $30,000 in equity At first glance, a Section 1031 tax deferred exchange might seem like a good way to go.
As a cash flow professional, I have the basic due diligence information to help you. And what I can't answer I can usually find out through my networking resources. Free quotes Fast Closing
James Jones
jrj7121@netzero.com
877-720-4053
http//www.cash4cashflows.com/jamesjones3
Over time, the friction of taxation will do to your financial future what the Colorado River has done to the Grand Canyon.
In order to build wealth,you must maximize your tax deduction, thus minimizing your recognized taxable income.
Many property seller mistakenly think pull all the equity out of the sale of their real estate. Uncle Sam doesn't think that's such a good idea, especially if you are an investor. That's why he slaps our hands so hard by taxing us on our gains and rewards us handsomely with tax savings when we structure our transactions creatively.
The US Tax Code provides several strong incentives for doing just that,and the effects can be extremely powerful in building wealth. Two of these incentives make it exceptionally profitable for you to "both a lender",and a borrower be!
Section 453 of the United States Tax Code (Installment Sales) allows investor to avoid the bulk of their taxes due on capital gains. Utilizing the Seller Financing technique,we can defer these taxes by paying them in very small incentives over a long period of time. These are several other benefits as well.
When offering Seller-Financing it improves the marketability of your properties. If structured correctly it also creates an opportunity to maximize sale values. Although the value added appears more pronounced in a slow market, the tax benefits make Seller Financing extremely attractive regardless of economic conditions.
Seller Financing or a carry back note also provides us with a well-secured, high-yielding, near-cash asset that offers us a broad foundation and a great deal of flexibility in building our investment portfolio. Such notes strengthen our financial statement, while earning much better returns than saving accounts.
Interest payments can kill our efforts to achieve financial independence. There is an exception,besides the tax break that lending our equity brings to the table. Uncle Sam throws investor another meaty bone as well: Tax Code Section 163 allows us to write off interest on debt used to finance the purchase of our investment assets!
Financing a high percentage of the purchase price provide a large interest deduction in the early years of ownership. This deduction generates a tax shelter,which shields any positive cash flow. It also shelter the non-cash equity buildup occurring through principal reduction on the loan. At times it may even shelter some of our other income from taxation as well.
Here's a perfect example--say a client or an acquaintance owns a $75,000 rental home with $35,000 equity. He wants to sell this rental in order to purchase a $120,000 duplex, which has $30,000 in equity At first glance, a Section 1031 tax deferred exchange might seem like a good way to go.
As a cash flow professional, I have the basic due diligence information to help you. And what I can't answer I can usually find out through my networking resources. Free quotes Fast Closing
James Jones
jrj7121@netzero.com
877-720-4053
http//www.cash4cashflows.com/jamesjones3
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