REI WEALTH MONTHLY Issue 31 | Page 61

DOUBLE YOUR RETURN WITH A TAX EFFICIENT 401K STRATEGY CLINT COONS Wouldn’t it be more advantageous if John could allocate all of the losses to him where then can be utilized. Of course it would and you can if you use an Anderson Tax Efficient LLC. An Anderson Tax Efficient LLC will allow John to take full advantage of all the real estate depreciation by specially allocating all the losses to John. The following table shows the tax advantage of using such a structure: Without QRP $20,000 net rental income <$6,400> depreciation $13,600 taxable to John <$4,080> taxes $9,520 net income to John With QRP W/O an Anderson Tax Efficient LLC $20,000 net rental income $7,000 allocated to John <$2,240> depreciation $4,760 taxable to John <$1,428> taxes $16,332 net income to John and his QRP With QRP and Anderson Tax Efficient LLC $20,000 net rental income $7,000 allocated to John <$6,400> depreciation $600 taxable to John <$180> taxes $19,820 net income to John and his QRP 9520 x (X)=19820