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Every day I talk to clients, fr= iends, family…heck, even the neighbor next door about their financial futu= re. Some people get terrified as soon as the word "financial" even comes into the conversation. Others are more anxious to find a way to have more money right now and others are concerned about their future.<= span style=3D'font-size:10.0pt;font-family:Arial;color:#333333'>
The one thing that I ALWAYS fin= d is that every single person I talk to could be paying less tax if they did something different. When it comes to clients, I do have to dig a little deeper. And, for them, the tax-saving strategies tend to be pretty long-t= erm. That's because our clients save an average of $9,500 in taxes after just = one phone call with one of our loophole-savvy tax coaches.
What about everybody else? I fi= nd they leave money just laying on the table.
There are three major ways you = can make more money and pay less tax. But, first let's talk about why paying = less tax makes so much sense.
Question: If you had a choice between making $10,000 more in income= or saving $10,000 in taxes, which would you choose?
Answer: ALWAYS choose the legal, ethical and moral tax saving strategy. If you make more money, that means you're going to have pay more tax. The average American taxpayer has to pay 50% in taxes. That means yo= u'll end up with $5,000. So, the real question is: Which would you rather have $10,000 or $5,000? If you picked the larger number, then read on!<= span style=3D'font-size:10.0pt;font-family:Arial;color:#333333'>
The IRS gives you three big way= s to save money on your taxes. That's what the loopholes are – They are = the government sponsored incentives that promote public policy.
IRS Tax Strategy #1:= Build a business.
IRS Tax Strategy #2:= 4 Green Houses, 1 Red Apartment Building
IRS Tax Strategy #3:= The house always wins.
The first strategy is to build a business. Simple enough, or extremely difficult, depending on your person= al frame of mind. There are three steps to maximizing the loopholes from your business. I'll cover those in the rest of this email.
The second strategy is to inves= t in real estate. But, I'm not talking the currently popular real estate market strategy of buy and sell quickly (also known as flipping property, wholesaling property, retailing property and whatever phrase the newest r= eal estate guru is using). Now, let me be perfectly clear, my husband made ca= sh profits, not a paper profit, but real, honest cash of over $1.2 million in the Phoenix market in the first 6 months of 2005. Flipping property is clearly a way to make money – in fact, a lot of it if you know what you're doing.
Does that mean we don't believe there is a bubble? It doesn't matter. That's because we also continue to = buy and hold using the old-fashioned strategy of calculating cash on cash ret= urns (COCR) and return on investments (ROI). And, best of all, we use the tax benefits from real estate to greatly reduce our taxes. Up or down, you al= ways make money if you use those strategies with real estate investing.=
The third strategy is to use yo= ur own house to make you money. Most people buy bigger and bigger houses in a mis-guided attempt to offset their income with the mortgage interest deduction. In my book, The Insider's Guide to Real Estate Investing Loopholes, I explain about how you often can't take the mortgage interest deduction due to (1) personal income too high (2) too high of a mortgage = or (3) (WATCH OUT FOR THIS ONE!) a cash-out refinance.
In just a second, I'm going to share the three strategies to immediately pay less tax. But, first, I wan= t to clarify something. In a lot of emails, I talk about the tax benefits of r= eal estate. I still believe real estate is the best TAX saving vehicle you can get. If you're looking for the money, or the time, or even the right deal= for real estate, you'll find that real estate is often slow. If you don't have the time to wait to get rich. In other words, you have a pressing need ri= ght now to make more money, then the best solution I know is to start a busin= ess. Now, please listen to me on this, business today doesn't mean that you ha= ve to take a lot of money out of your pocket or that you have to deal with employees. And, often, the best source of immediate cash will be the tax savings you get from your business.
That's what I'm going to talk a= bout through the rest of this email – how to put money in your pocket ri= ght now, today, from the tax savings of your business. If you'd like to know = more about how you can do, and make sure you're protecting your assets at the = same time, we have an amazing deal for you. Our supplies are severely limited = due to the fire we had at our building, but we've managed to pull together 50 sets for the first 50 people who respond. Once they're gone, the deal is done. I don't know if the supply will last all day, or just for a few hours…or like one offer that sold out in less than a half hour. Ple= ase, if you're interested, don't wait. Click here ri= ght now to save over half price on a special package for business owners. Normal price for the Loopholes Sta= rter Kit and 101 Tax Looph= oles for Small Businesses is $169. For the first 50 people who take advantage of this special offer, the price is $79 and we'll include a Loopholes of = the Rich book. Please don't wait – order today!
Now on to the three ways to sav= e money immediately with your business,
(1) Make sure you have a busine= ss. Having a business means you act in a business-like manner= . I cover this in depth both in Loopholes of the Rich and the Loopholes Start= er Kit. If the IRS determines you don't have a business, you might get stuck with "hobby loss" rules and lose the tax advantage of a new business.
(2) Look for all of your hidden business deductions. For every expense you have, ask yourself, "How can this be a legitimate business deduction that is ordinary and necessary to the production of income?" If you = can find a way to do that, you have a deduction! Okay, it's not quite that ea= sy. We go through the whole process in the Loopholes Starter Kit, plus give y= ou dozens and dozens of special loopholes for business owners in 101 Tax Loopholes for Business Owners.
(3) Set up the right business structure. There are some good business structures: LLC, LP, S Corp and C Corp. A bad business structure: Sole Proprietorship. And a really bad business structure: A General Partnershi= p. Even if you've got a good structure, it still might be bad for you becaus= e of excess taxation. For example, running a business through an LLC that hasn= 't elected S Corp or C Corp tax status can cost you big-time in excess tax.<= /span>
Starting a business could be as simple as cleaning out your garage and selling the excess on eBay. = You could eBay tonight, ...and pay less tax tomorrow.
Whatever path you choose to bui= ld wealth, please remember that you can do it. Get a good financial education and then take an action step. Then take another step. Perhaps the best ad= vice I can give for those who want to live extraordinary lives is to "Lea= rn to act in the presence of fear."
P.S. If you're ready to pay less tax and build wealth in safe way with your business, click here to invest in your future at a lower cost.
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