Your tax-free $250,000 awaits

A $250,000 paycheck can do a lot of things. It could send you on a nice little vacation to pass some time while you’re waiting for your new Benz to be delivered. You’d even have money to play with when you get back.

Now imagine if that $250,000 was tax-free. After I discovered this simple little loophole, I couldn’t help but think about all the tax-free money I could’ve been making over the years.

But that’s all said and done. This is a paycheck that the IRS can’t touch. Do you want to learn how? Simply put…

There are loopholes in every money-making system that can make you a lot of LEGALLY TAX-FREE money. It’s all about understanding where these loopholes lie.

Don’t worry about not knowing where to find these loopholes, that’s what I’m here for.

Let me tell you about a friend of mine who made $250,000 of tax free money in two years, and then I’ll explain how you can do the same.

Some years back my friend Chris found a little apartment block for sale near the coast in a small beach town not too far from where we both lived. The town was up and coming at the time and you could feel the growth of tourists each year.

Every few weeks he would pass this nice little piece of property on his drive out to the beach, and each time he passed it looked more and more desperate for a new owner.

Eventually, Chris inquired about the asking price and suddenly it was as is the apartment block had dollar signs flashing in the windows.

Chris came to me for advice on the property, as he usually did when he found a nice piece of real estate.

It was a no-brainer. I pointed Chris in the direction of my trusted mortgage broker who was able to get him 90 percent financing for the property.

The opportunity that Chris saw in this building was huge. The tax loopholes for his situation that I informed him about were even bigger.

Chris moved into one of the property’s eight units. If Chris was your average Joe, he would’ve probably found joy in living close to the beach in a decent apartment complex with a standard job.

Chris isn’t your average Joe. Chris quickly became an intelligent investor.

Since Chris owned the whole unit, each of his seven tenants, who were not hard to find in this up and coming beach town, paid a monthly rent of $1500. This equaled $126,000 of passive income.

During the two years that Chris lived there he used the profits from the tenants to repair and renovate the building, using the rest for his everyday needs.

As Chris improved certain aspects of the complex, he increased the rent which increased his income during this investment.

The property eventually sold for $500,000 and Chris walked away from the deal with a $250,000 profit.

This profit was tax-free for two reasons.

1. It was his primary residence

Due to a tax law passed by congress, a single homeowner is eligible for up to a $250,000 ($500,000 if married) tax-free capital gain which does not need to be reinvested into a new property—contrary to popular belief because of an old law.

2. He resided there for at least two years

For those who are looking for a quick property flip, this tax-free advantage does not apply. Congress has determined that a two-year holding period is necessary to become eligible for this tax-free capital gain.

If it wasn’t for Chris’ story, this real estate profit may sound too big and too quick to be true, but if you look at the numbers you’ll see that it is actually an extremely simple process.

When you have walked away with your $250,000 you can repeat this same process as many times as you like, raking in $250,000 of tax-free profit every two years.