We’ve mentioned before how income property is the most tax-favored asset in America. Maybe now would be a good time to use a real world example good and put hard numbers behind this powerful tool. This one comes courtesy of the mind behind the Empowered Investor philosophy, Jason Hartman. Jason likes to show seminar attendees just how much money real estate investing saves him personally.
Remember, the average American today is going to spend 40-60% of their income satisfying one sort of tax or another. They literally come at you from every direction and take anywhere from a tiny nick to a ravenous bite.
Let’s go to the summary page of Jason’s Schedule E from this most recent tax year. Don’t worry. He won’t box our ears for revealing this information. He gladly provides it to teach people about investing the right way. Without going into the excruciating details, here’s the bottom line – income property investing provided him with tax write-offs of $524,742.00, resulting in a tax savings of $138,000.00.
That’s real money, folks. Nothing sneaky going on either. These are all legitimate savings derived directly from a tax code that, for whatever reason, is very forgiving of people who own income properties. The final result for Jason was a tax refund check from the IRS totaling $109,636.00. This is smart investing. Very smart investing, And there’s no reason you can’t do the same.
The first thing to do is abandon the stock market like it was the Titanic.
