Cherrytree Group Blog

Paying Uncle Sam: How to Save on Your Federal Tax Obligation.

[fa icon="calendar"] Dec 2, 2016 11:38:37 AM / by Melina Ambrosino

Once a year we all get that cringeworthy feeling when we need to write a check to the IRS. As real estate professional or an investor with passive income we all know that feeling of … “Where did my money go?”  Well... it went by check to Uncle Sam! Luckily, Cherrytree Group has the solution to not only help you save money,  but to help you make money as well! Now I could go into great detail about this (which might make your head spin) but instead, here is a simple example of what it would look like if you had a $1,000,000.00 federal tax obligation.

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Scenario 1

Investing in a Renewable Energy Project

For $1million in tax credits you would invest $650,000.00 in a $1.6million project.

Total Returns on your investment

Total Tax Credits                            $      500,000.00

Total Depreciation                       $      561,000.00

Total                                                      $   1,061,000.00

Total 5 Year Cash Return          $        60,000.00

 

 

Scenario 2

Investing in a Historic Rehabilitation Project

For $1million in tax credits you would invest $748,000 in a $4.4million project.

Total Returns on your investment

Total Tax Credits                $     880,000.00

Total Depreciation            $     178,000.00

Total                                           $  1,058,000.00

5 Year Cash Return           $       72,000.00

 

The Cherrytree Groupis proud to say we are experts in this type of transactions. We have designed a system to compliment individuals who pay $3,000,000.00 or less in Federal Taxes! That way you are not competing with your large corporate companies. Investing in this type of deal involves a lot of structuring and many hours of understanding the IRS regulations. Cherrytree group has invested years of work and training to make sure that your investment fits your specific needs.

 

To learn more contact us today!

 

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Topics: federal tax credits

Melina Ambrosino

Written by Melina Ambrosino

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