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The secret that keeps the government from getting their grubby hands on your cash – and why it’s totally legal!

We Flip Houses / wefliphouse  / The secret that keeps the government from getting their grubby hands on your cash – and why it’s totally legal!

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.

Nice, huh?

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:

  1. You sell your house for $150K declaring your intention to exchange by using a registered intermediary.
  1. 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.
  1. You then have 180 days to finalize your purchase.
  2. 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!

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