Tax Advantaged Structure supercharges yield
Savvy investors know the benefit of working with professional real estate sponsors like Inner Circle. There are many ways to approach a real estate transaction and for most investors the focus is on yield. Usually this is a simple calculation where a $25,000 investment generates a $1,500 annual payment, resulting in a 6% yield. But this is taxable income. For an investor in a 25% tax bracket, federal income taxes of $375 would be owed. Suddenly, the annual payment becomes $1,175 which is only a 4.5% yield.
A properly structured investment will provide the same cash flow but will avoid the federal income taxes. In some case, an investment can provide tax deductions above the cash distribution allowing the investor to offset taxes on ordinary income.
Contact Inner Circle to learn more.