From: Brandon Yeager, Founder of the Real Estate Rocks Newsletter
Location: Hollywood, Florida
Saturday 9:03 AM
Dear Friend,
I have a story to share with you.
Last week, we helped Investors potentially save Thousands to Tens of thousands, possibly even millions of hard earned money instead of giving it to the government via something called a 1031 Tax Deferred Exchange.
This week, we are helping regular homeowners, just like many of You to help keep your sweat-infuzed dollars in your bank accounts.
It has been an amazing week.
Annie and I went on a get-away to the Florida Keys to celebrate 30 years of marriage. And I have to tell you, at least 29 of them have been amazing. 😭 (Just kidding babe. If you read this, You know I have loved every single second of our adventures.)
Back to the issue at hand…that is…
Keeping Your Money Where it Belongs!
Onward to the story:
A few years ago I was sitting at a closing table with a couple selling their home.
Absolutely wonderful people! But,
The husband got a look on his face like somebody may have just told him his truck was being hoisted onto the back of one of those “quicker-picker-upper” tow trucks that repossess cars in like 5 seconds.
I asked him what was wrong.
He said:
“Brandon… we made a lot of money on this house. The IRS is going to destroy us, aren’t they?”
Let’s pause for a moment.
Most Americans hate hearing the 3 letters: I-R-S.
It usually causes a pain level somewhere between: colonoscopy vs a root canal. Though, pain can quickly escalate from there.
So I told him, “Well… it depends.”
Then I explained something many homeowners don’t realize.
If you’ve owned and lived in your home for at least 2 of the last 5 years, the IRS typically allows you to exclude a big chunk, or possibly all of the profit when you sell.
In fact, up to $250,000 if you’re single.
And up to $500,000 if you’re married filing jointly.
He blinked and then he said some of the most beautiful words ever spoken at a closing table:
“Wait… you mean we get to keep it all?”
Yes.
If you meet some very basic guidelines, and you’re selling your personal residence, then more than likely, Yes!
Here is why this happens.
The fact is: the government wants homeowners. And let’s face it, most politicians are homeowners too, and they want their tax breaks, and then some.
They want people to purchase properties: and turn houses into homes. And invest money into them. And pay taxes. And beautify communities. And pay more taxes, lol. Did I say that one yet?
Here is the lesson I want to share with you.
Most people think buying a home is just about having a place to live.
However, please remember, it is also:
Typically the largest wealth creator towards retirement for the average American.
Statistics vary, but think about this:
If 40% of the average American’s wealth toward retirement comes from owning homes throughout the course of their lifetime, imagine if that equity and appreciation and tax advantage was removed from you.
It could potentially set people’s retirements back decades.
Nobody wants that.
If you currently own a home…congratulations!
You are experiencing:
-
Appreciation (inflation hedge).
-
Principal paydown (the 8th wonder of the world)
-
Equity wealth (which you will, Lord willing, one day get to harvest.
My friend…I want to implore you:
Keep planting seeds.
Keep giving your home sunshine.
And Keep applying just the right amount of water.
And One day, the seeds that you have been caring for, will produce fruit beyond your wildest dreams.
Keep on turning those houses into homes and you’ll be rewarded.
Later,
Brandon “Key Lime Pie tastes better in the Keys” Yeager 😎
PS. Like last week, you should always consult with your own personal CPA or financial advisor. Nothing in this email should be construed as financial advice and you should seek your own professional counsel. The crazy crack smoking sue-happy folks are out there every day, so need to make sure we got that disclosure in there.
NEXT WEEK: Not sure. Let me know if you want to hear about something in particular. Or have a question. Would be happy to spotlight the question with a Q/A.
Make it a Great Week!
