Taxes Are Our Best Friend
Ken Grodner, REALTOR®
I have recently read a book, Tax-Free Wealth, How to Build Massive Wealth by Permanently Lowering your Taxes by Tom Wheelwright.
The book contains over 20 strategies for reducing taxes - here are a few excerpts from the book I found particularly fascinating:
Of the 5800 pages of the tax code, 30 are dedicated to raising taxes and the other 5700 plus on reducing taxes.
Real estate investors enjoy great financial benefits. You can buy a property mostly with the bank's money and get a tenant to pay enough rent to make your payments to the bank and have a little left over. When you buy real estate right, history shows it increases over time as illustrated below.
The tax benefits (including depreciation) can be greater than both the cash flow and increase in value. Depreciation is like magic, it creates money out of thin air!
Here are a few more strategies I think you might find helpful:
- Shift income from your business to your children, grandchildren, or your parents and then have them take the money and invest in a business you control so you can direct how the money is spent
- Turn business income into passive income by giving part of the business to a member of the family that does not work in the business (you still maintain control); their share is passive income that can be used to offset passive real estate losses
- Trade stocks and options in a self-directed Roth IRA to permanently avoid taxes
Humbled and Proud to be Featured in Real Producers We're honored to share that Ken and Vikki Grodner were recently featured in Real Producers magazine. The article shares more than their real estate journey. It tells the story of a lifelong commitment to service, community involvement, and the values that continue to shape Hospitality Network Group today. Thank you to our friends, families and clients who continue to trust and support us. We couldn't do this without you. Enjoy the article. – Ken & Vikki Click image to make larger
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If you have a student heading to the University of Alabama, one of the first major financial decisions you will face is housing. Most families automatically rent. But one family chose a different path. In a recent episode of College Real Estate Coach, Barbara and her granddaughter Virginia shared why their family decided to purchase a townhome in Tuscaloosa instead of signing a lease near campus — and how that decision reframed college housing from an expense into a long-term investment.
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