Alright my friends. It is tax benefit
real estate time, right? I mean, for many people, it is not a very exciting
conversation. But the reality is that real estate has more tax benefits than
anything else has ever given or awarded. At least in the country of America. So,
what I want to do today is I actually want to break down not just 2 or 3
of the benefits. In this video, I want to give you the 7 top major benefits of
why everyone needs to hold real estate. Hands down, more millionaires are made in
the game of real estate than doing anything else period. Andrew Carnegie
said that. And it’s been shown over and over and over again that once someone
whether they’re a celebrity that earns money or whether it’s a successful
business owner. Do you know if they all want to do with their money? They want to
buy the one thing that no one is making any more of that continues going up in
value. Real estate. Now, the cool thing about buying real estate in America. I
don’t know about your country where you live around the world. But I can tell you
in this country, we have some of the craziest tax benefits. And today, I want
to share with you the 7 top tax benefits that you actually get for
holding an owning real estate. And before I do, I got to share this with you. For
the first many, many, many years that I owned real estate, all of those benefits
meant that I didn’t have to pay taxes. And friends, I was making a lot of money. And
I’ve even been through an audit. Like this is confirmed. Like I want you to
understand that if you feel like you’re paying too much in taxes or if you just
want to keep more of what you make then the secret is to own real estate. Because
anything else is going to tax you significantly more. Now, as they dive into
these 7 I do you want you to understand something. This is not tax
advice. I am NOT a tax expert. I’m not a tax lawyer. I’m not an accountant. So you
absolutely need to fact check all of this information. What I’m going to do is
I’m just going to take from all the sources and information that I’ve gather and I’m
going to share it in one place for you in this video right now and I think it’s
gonna be really helpful for you. Alright, so this the 7 major tax benefits. The
first one that I want you to understand is that when you earn normal income,
you’ve got to pay Medicare, you got to pay Social Security. And that income can
be taxed between 7 15%. But rental income is not taxed with
that. So if you compare normal income to real estate income, there is a 7%
to a 15% savings on simply not having it taxed with Medicare and Social
Security. You know what? For a lot of people, 7 to 15 percent that can
add up on a hundred grand, that’s between 7,000 and
15,000 dollars. More that’s where? In your pocket? Number 2 is huge.
Depreciation. Now for those of you that don’t understand, when you own a business
or you on real estate, you get to write certain things off over time. And so what
they basically say is that things lose value with time so you should be able to
write them off. Currently, our tax code has a very generous deal that says that
you can write off a property over 27 and a half years. If it’s $100,000
property, over 27 and a half years, you can take a hundred grand
divide it by 27.5 and that’ll come out to $3,000. My average purchase price on a home right now is around $160,000. That means that I get to write off $5,000
of depreciation every single year. Now, check out how cool this is. If I make
$5,000 of positive income this year, which basically means I’m
having $400 a month cash flow. So, imagine that. $400 every month
going in your pocket and you’re not going to have to pay taxes on that. Because
of depreciation. So depreciation is… It’s a really, really huge benefit. And if you
keep keep your money in real estate and keep exchanging it forward as I’m about
to talk about, you’ll never ever, ever have to pay taxes on it. So number 3
is the 1031 tax exchange. Now, some of you actually don’t know what
this means. Let me break it down for you. This is a specific tax code in America
that says if you had your real estate growing inside of a property. And now you
are selling that property, oh well if you sell, it you’re going to have big taxes. Or
you can roll it into another property and avoid paying taxes. So, I’m personally…
I don’t like to put money in real estate and then take it out. And then put it in
and take it out. I actually let my real estate continue to compound and grow and
grow and grow and just increase my cash flow more and more and more.
But I don’t have to pay taxes on that as long as I’m using this tax code. And for
me, it’s actually a really big very important tax benefit. Okay, the fourth
benefit that you have in real estate is something that is called capital gains.
When you go to sell a property, you are going to have… If you weren’t using the
1031 exchange, whatever you actually grew on that home
like if I put a hundred grand in and sold it for 200 grand,
well, my basis was a hundred thousand. I’m not going to be taxed on that. But the
hundred thousand a profit, I’m going to be taxed on. That’s called a capital gain. If
you have actually a property for longer than 12 months,
capital gains will usually tax you lower than regular income. So this can actually
be a significant benefit. And you guys do need to understand that the IRS, the
internal revenue source, it has the ability to give and it also has the
ability to what? Take. And so we don’t know how long a lot of these things are
going to be around. But capital gains on some projects are between zero and
20 percent. Again, less in most cases than normal earnings would be taxed at.
Okay, so the fifth of the seven that I want to share with you right now is that
you actually get to borrow money tax-free. This is a core part of my
million-dollar game plan. In fact, if you click the link, go to my website and
download my latest book which is all about a million-dollar game plan. how do
you make millions of dollars in real estate even if you’re starting from
nothing. because again, you can compound it and
you can grow it and I can even show you how to do properties that take little or
no money at all. When you actually then finally get that property and you’ve
negotiated the right way, there’s money for you to take out of it. Did you know
that you can do a cash out refinance. Meaning, keep the property but pull money
out of it and actually not have to pay taxes on it. It’s tax deferred. Again, as
long as you keep it in real estate, you’re not going to have to pay taxes. You
can keep rolling it forward. So you can borrow and that’s pretty cool. Then the
government goes one step further and says, “Hey, you actually could take money
that you’ve been putting in certain 401ks, IRAs, annuities, Roth’s.
These other financial investments. And you can actually self direct them. And
self-direct basically means that you can pull them out of the stock market and
move it into real estate without paying taxes on it. Normally if you got money in
a 401k or an IRA and you liquidate it, there’s going to be
taxes and penalties. But there’s a way to self-direct it, put it into real estate
under certain rules and guidelines and not have to pay taxes on it that way. So,
again 6 really really powerful loopholes that the government basically
gives you so that you can keep your taxes as low as possible. The final
benefit that I’ve saved for last is perhaps one of the more morbid ones. But
I think it’s really important. You see if you do something that works, you’re going to
keep growing it, right? Like I plan on dying with over a billion dollars worth of
real estate. Even, even more, right? And I want to pass it on to the next
generation. But guess what? When you pass it on, your heirs that take over the
estate can receive really, really big penalties and taxes. In real estate, there
are ways to pass it on after death. Especially for estates currently that
are under 10 million dollars. And you can actually essentially pass it on
completely entirely tax-free. Which is also really really huge. So, that’s the
seventh benefit to be aware of. It is a little morbid. But you know what? Your
death is a part of the plan. You should have a plan for the money you want to
make income that’s active and you want to have a plan for the money that you
make and death. Now, that’s seven of the different top real estate tax benefits.
There are others but what I want you to understand is that you got to have a
plan and you got to factor the taxes into it. Taxes shouldn’t drive the entire
plan but they need to be a part of the plan because ultimately winning in real
estate is about optimization. Now for those of you that are watching this
video and you’re saying to yourself, “Man, I don’t think I have a really good plan.
Or I don’t have a plan of paying less in taxes. Or I don’t have a plan on how I
can get more of where I want to go.” What I want to invite you to do is I want to
challenge you to go and actually click, the link go over to my website and I
want you to request a free consultation with my team and say, “I don’t have a game
plan. Like or I need a better game plan or it’s time for me to update my game
plan.” And if the taxes is something that’s really important to you, you need
to let them know that. Because I have all sorts of ways of working with you and
the public with partnering with me on deals, getting into certain deals.
strictly for massive tax benefits. And if that’s really resonating with you, click
the link, request a consultation, talk to my team and see if there’s a match that
makes sense. Otherwise, I hope you enjoyed this video. You know, if you did, will you
please like or comment share some of your thoughts and
ideas things that you’ve learned. And if you’re not a subscriber, be sure to do
that as well. You might know someone that has tax problems. Send this video to them.
And otherwise, we’ll look forward to sharing tomorrow’s video with you and
we’ll see you them.