Using the Tax Broker's Secret tax strategy we can help lower the amount Uncle Sam takes from you in Taxes.
We put together buyers and sellers of tax deductions and tax benefits. No actual investments are bought or sold, only the tax benefits associated with those investments. Using the tax broker strategy not only lowers your taxes, but also provides opportunities to fund college costs and health insurance premiums.
In other words, for every $100 of profits
or income,
Uncle Sam gets $40 of your
money and you are left with $60.
Let's assume for a moment you anticipate you will
have to report an additional $25,000 net income
and or profit on your upcoming year's taxes.
To eliminate the 40% tax burden of $10,000 on your
$25,000 profit, you would need $25,000 worth of deductions,
which would then reduce your tax burden to zero.
To accomplish this, using the tax broker strategy, you
simply enter into a buyer agreement and purchase a
$3,000 partnership interest in the taxbroker program.
This partnership interest then provides you the
$25,000 worth of unused tax deductions you
need from a seller of those deductions.
As the buyer of those tax credits at the
end of the year, Tax Broker provides you
with a K-1 tax form no different than
any other business investment showing your $25,000 loss.
You then simply file that form along with your taxes, and
the result is a $10,000 tax refund or reduced tax liability,
which equates to the 40% of the $25,000 loss.
After subtracting the $3,000 you paid for the tax benefits
from the $10,000 IRS refund, you now have a net
cash gain of $7,000 as opposed to a $10,000 net
cash loss had you not purchased the tax credits.
gained by utilizing the tax broker strategy.
Assuming a 5% rate of return on
this annual $7000 investment, after five years,
you will have accumulated $38,679.
Now let's assume you didn't do this and you
simply paid Uncle Sam your annual $10,000 tax bill.
That comes along with your $25,000 gain
in each of those same five years.
That would result in you having paid
$50,000 in taxes to Uncle Sam.
Now let's imagine doing this for the next ten years.
After year ten, you have a net positive $88,045
or a negative $100,000 paid in taxes.
This demonstrates both the power of
compound interest and uncle Sam's voracious
appetite for your hard earned money.
It's a tax reduction, not just a tax deferral like
an IRA, 401k or SEP IRA.
There's no income, age or contribution limits like
there is with IRAs and 401k.
Buyers can be individuals,
LLCs, corporations or partnerships.
Like a 401K.
Automatic monthly paycheck withdrawals can be set
up to fund the tax broker strategy.
Your reductions in retirement account contributions can be
redirected to fund the tax broker strategy.
To keep our comparison simple, let's use an annual investment
of $6,000 as that equates to your maximum annual IRA
contribution and the same 40% tax bracket as in our
other example, let's say we put $6,000 toward the purchase
of some equipment for our business.
When we take that deduction, we save $2,400 in taxes.
That being the case, we have
a net $3,600 negative cash flow.
As an alternative, let's assume we take
our $6,000 and purchase a Roth IRA.
This results in zero current tax savings, and while we
do have future tax free income, we experience a negative $6,000
cash flow for our current day to day expenses.
Now, let's assume we want to invest
our $6,000 in a regular IRA.
When we take that deduction, we defer $2,400 in taxes.
We will still have to pay it when we retire,
but for now, we save $2,400 in taxes this year,
which results in a net $3,600 negative cash flow.
Let's now take our $6,000 and purchase $50,000 worth
of tax deductions using the tax broker strategy.
Given our 40% tax bracket, this results
in a tax refund of $20,000.
Subtract that from the $6,000 paid for the tax
deductions, and the net result is a $14,000 in
positive cash flow, which can be used to buy
that equipment, put in a Roth IRA, pay for
college healthcare, or whatever you like.