So instead of paying taxes at, say, 25% of the 800k (200k) you pay no taxes and have used the $1million to buy another asset that produces even more income... it's a helluva system.
(800k income on $2M investment is a yield of 40%, in reality it's going to be more like 4% or 80k but still, interesting)
So instead of paying taxes at, say, 25% of the 800k (200k) you pay no taxes and have used the $1million to buy another asset that produces even more income... it's a helluva system.
(800k income on $2M investment is a yield of 40%, in reality it's going to be more like 4% or 80k but still, interesting)