Saving money on tax is important, but the real magic happens once you start re-investing those tax savings into tax advantaged deals.
That's what produces a graph like this:
In general, there are two categories of investments you should be looking at...
Depreciation Deals:
W2 earners should invest in energy, machinery, or RV park deals that allow them to be a general partner (GP) in the first year in order to claim accelerated bonus depreciation.
If you are a Real Estate Professional, you can access bonus depreciation from multi-family and commercial investments.
Cashflow Deals:
These deals don't offer tax benefits, but can kick off so much income that they outperform the tax savings. Investments in this category include things like self-storage and algorithmic trading.
You can invest in cashflow deals through a tax shelter, such as a Private Foundation, to get the initial tax savings as well as tax advantaged portfolio growth.
There are tons of deal types, but the top asset classes include real estate, syndications in energy or machinery, and algorithmic trading.
Learn the basics of how to think through different types of investments.
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Be the bank and start lending money to investors with notes and tax liens.
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If you invest as a GP, you can get bonus depreciation and you own real estate.
You can roll real estate gains over into property purchases instead of paying tax.
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