Make Money Tax Free

If you purchase or sell real estate for profit, you usually end up getting taxed heavily for your endeavor. Sometimes you might even end up realizing that the process wasn’t worth the time and effort at all. You might even see no real profit. You can avoid this often exorbitant tax, however, by using a Roth IRA. Best of all, this is actually a fairly simple and straightforward process. With a little bit of professional help, you can do it with no problem. Since few people know about this, you’ll be one step ahead of the game and on your way to making a lot of extra cash.
When you purchase a property or agree to purchase a property at a set time, the owner will still have full ownership until the agreement terms are fully reached. So, after you’ve found the property you wish for your IRA to buy, you simply have an independent third party fill out the option contract and then you purchase that contract from the individual at a set price. You buy this contract using money from your Roth IRA provided by the third party. This allows you to find a purchaser and for the third party to benefit financially as well. Once you have used your Roth IRA to meet the option agreement terms, your buyer purchases the property and the money goes directly into your Roth IRA, tax free.
It is important, however, that you set up the option correctly. Not doing so can have some serious consequences and will often put you right back at square one. Acting carefully, however, will make your endeavor a sure success. Plus, this way, you will not be at risk of making an accidental “prohibited transaction,” or of violating any other terms that could lose you money or end up with you in some sort of legal trouble. You can choose to complete the transaction with individual profit sharing, a purchase pension, or some sort of IRA based plan of your choosing. If you wish to convert to a Roth, you just have to make sure you meet the terms. Your age, the current tax rate, and other issues will go into determining your eligibility. Always make sure you know what the rules are and that you follow them carefully.
If you go about this plan carefully and make sure that all of the steps are followed correctly and with a strong end goal in mind, you shouldn’t experience any problems or issues. Plus, you’ll be making money that you’ll never have to pay even a cent of taxes on. What could be better? Speak to your financial advisor or to a lawyer today about your plans and goals and then begin working with that individual toward making your dreams come true. As evidenced here, it will most likely be a lot easier than you ever dreamed or thought possible. Careful planning and good advisors will ensure a successful money making venture for you.

This entry was posted in Costa Rica and tagged . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *