The secret that keeps the government from getting their grubby hands on your cash – and why it’s totally legal!
Have you ever heard of capital gains tax?
I’m sure you have. It’s basically a giant bill you have to pay Uncle Sam whenever you make a large chunk of change. The amount of the tax varies, from 15 to 35% – and they don’t do a thing to earn it.
You can avoid capital gains – and Uncle Sam himself has okayed it!
Legally and safely turn capital into larger amounts.
Avoid paying taxes on any capital gains.
Use the extra money you AREN’T paying the government to make even more.
Harness the power of the 1031 Starker real estate exchange.
Curious? Give me a moment to briefly explain how the 1031 Starker exchange works.
Let’s say you buy a house for $100K, putting $25K down and you rehab it and sell it for $150K. For simplicity sake, just assume the rehab came out of the mortgage.
So, you have a gain of $50K – $75K of the sale pays off the loan, $25K goes back to you as an expense, and the remaining $50K is capital gains.
Well, if you just sell the property outright, you’re subject to capital gains tax at your current tax bracket – or the next higher one. To avoid a lengthy explanation, let’s say that’s 25%.
So, you pay the Feds $12,500 of your $50K profit. Doesn’t that grind your gears?
Now let’s say that you use what is known as an A B delayed 1031 exchange, or Starker exchange for short. Here’s what happens:
- You sell your house for $150K declaring your intention to exchange by using a registered intermediary.
- You have 45 days to identify and contract to purchase another property of like kind – this is broad, it means another house, a farm, an apartment complex, etc.
- You then have 180 days to finalize your purchase.
- You continue this process over and over to the grave.
So imagine it – instead of having $62,500 after taxes to reinvest, you now have $75K. So why not go out and buy a $300K house, putting that $75K and rehabbing it.
You sell that $300K house for $450K, with a profit of $175K kept safe by exchanging.
See how it works?
Are you getting excited yet? I am!
To learn more about this awesome and totally government-sanctioned form of asset protection, give me a call at: ### and let’s see if you qualify for one of my open 8 investor slots.
Let’s put the power of real estate flipping and the protection of the Starker exchange to work building wealth for you and your family today!