Real estate provides significant tax write-offs
, builds equity, and contributes to additional monthly income.
Given that real estate acquisitions are financed up to 100% of value, and that real estate is afforded special treatment under the tax code with respect to debt-financed deductions, an exceptional opportunity exists in creating extraordinary tax write-offs
with minimal cash investments.
They would allow many businesses to double their tax write-offs
. They would reduce the capital-gains tax for businesses and individuals.
When Nixon got in trouble for taking huge illegal tax write-offs
on the presidential papers he donated to the public, he said he got that idea from Johnson.
He has a lot of income, is in the highest tax bracket, and has few tax write-offs
. His parents have low income, are in the lowest tax bracket, and have some tax write-offs
The vast amounts of money involved in tax write-offs
give only a hint of the scale of these clandestine operations.
But Johnson thought he'd found a way out--a potential tax loophole that would allow the native corporations to sell their losses to profitable companies seeking tax write-offs
. If Pillsbury needed a $10 million tax credit, it could just buy it for, say, $7 million or $8 million from a native corporation.