[...]... ideas into action Loopholes of the Rich will show you how to do that as you build a team that supports your goals But, first, we start with the basics of loopholes Loopholes Are Government Incentives Loopholes are government incentives to promote public policy They aren’t something shady or shifty In fact, the government wants you to xii INTRODUCTION take advantage of the legal tax loopholes that the... gone down The government therefore provides the loopholes in order to encourage real estate investors The first edition of Loopholes of the Rich was published in 2001 Since then, I’ve heard from thousands of people about how they have made more money and reduced their taxes by taking advantage of the tax loopholes that the government wants you to use The loopholes are there! The government puts them... building that use the tax advantages of the rich This section teaches you how to maximize and coordinate business tax loopholes, real estate loopholes, and home loopholes to create wealth with leverage and velocity III New Tax Strategies for C Corporations New tax law has created brand-new opportunities for using C corporations Learn how in this section! IV Take Your Loopholes and Still Sleep at Night Set... surgery attempt He was trained, he was competent, and he almost died trying to do it himself! The Bottom Line: Use trained professionals; don’t try this by yourself What You Will Learn in Loopholes of the Rich Loopholes of the Rich came about as a result of my years of experience working with people who searched for ways to reduce their taxes and increase their wealth After talking to literally thousands... Scott had made use of the tax loopholes to set up the right business structure and take the legal deductions, so he ended up with more money in his pocket In fact, at the end of his first year he had $10,000 more cash even though he had made the same amount of money! Scott had used the tax loopholes that the government wants him to use Scott is now my business partner at TaxLoopholes and D Kennedy & Associates... couldn’t fully use real estate loopholes By the end of the appointment, Jean had decided to sell the property and take a capital loss that would hit her once, instead of the continued drain of a tax write-off Jean took that lesson to heart and learned from it She analyzed a property before she bought it She always knew her exit strategy in (Continued) 8 LOOPHOLES OF THE RICH Jean’s Great Deal (Continued)... have for your future: a plan to be poor, a plan to be middle-class, or a plan to be rich If you are looking at receiving less money in the future, you have a plan to be poor My clients have a plan to be rich So, an automatic deferral of income might not be the smartest thing In fact, by the time we’re done with all of the loopholes we discuss in this book you might be like my clients and find that you... tax rate may be as high as 35 percent or more when you take the money out! 16 LOOPHOLES OF THE RICH You have more than doubled your tax rate There is one way that this plan makes sense, however: If you plan to be poor you won’t have the high tax rate My guess, though, is if you’re reading this book you have a plan to be rich! In that case, why double your tax rate? Just to be fair, there are two reasons... you start a new diet—you might not want to really know what the numbers say, but you do need to know your starting point That’s just how it is for your financial plan Your best results will 3 4 LOOPHOLES OF THE RICH Remember: The members of your team will help you or harm you as you follow your own financial dream come when you can take a realistic look at where you are financially— without excuses,... Freedom! S is for starting point—Understand your financial story T is for team—Build a team that supports your goals E is for evaluation—With your team, construct a tax loopholes strategy P is for path—Create an action plan to implement your tax loopholes strategy S is for starting point—Look at your new financial statements What worked? What didn’t work? and can give you good advice based on their own personal .