We’re already halfway through January, and you know what that means: tax season is coming.

Don’t laugh. I know the deadline to file taxes isn’t for a few more months – and plenty of people do theirs much later with the help of extensions.

Personally, though, I’ve always tried to get mine done as early as possible. For starters, it takes a huge weight off my shoulders to know that it’s off my plate. But it also means that I can access my tax refund sooner. The longer you wait to file, the longer it’ll take to process.

So with that in mind, let’s chat about how angel investments fit into your taxes each year. You may be surprised to find out that you can save a lot of money if you know which programs to pursue.

The first and most important program that comes to mind is the Capital Gains Exemption (Section 1202). It basically states that when you invest in certain types of private companies, and hold onto those investments for at least five years before making your exit, you will be exempt from 100% of capital gains from those returns.

Typically, capital gains are taxed at a rate of 15 to 20% – so this exemption is a huge deal for seasoned angels. The best part? It can be applied to gains up to a $10 million limit. In theory, this exemption could save you thousands, depending on how you invest each year.

If your investment leads to an exit before that five-year mark, you may still be able to benefit from the Rollover Perk (Section 1045). As long as you’ve held onto an asset for six months or more, you can use this perk to roll your gains from one investment to the next without having to pay taxes in the middle.

There are even tax breaks available to those with less-than-stellar batting averages. Section 1244 allows you to write some losses off at your earned income tax rate – which is usually higher than the capital gains tax. That means you’d get a bigger write-off on tax day… a perk that could save you some serious dough.

But all this talk about taxes has had me poring over my financial documents a lot lately, and I can’t help but wonder…

Have I been sleeping on the whole “passive income” movement?

I mean, I do pull in passive income each year from things like dividends, real estate, and so on… but I know there are lots of little-known tricks out there that can take “passive income” to the next level.

How do I know? My friend and colleague, Keith Fitz-Gerald, has been pushing this stuff on me for years. And I have to say, every time I’ve taken his advice, it’s paid off in spades.

Keith has been working on a huge project for several months now, and I knew he was probably just about ready to reveal it to the world. My timing couldn’t have been better; it turns out that Keith’s breakthrough new book was released just last week. I was lucky enough to snag a copy.

It’s called The Big Bold Book of Income Secrets, and it boasts not one or two, but 76 different secrets that could net you up to $32,764 in combined extra income.

A few of them I’d already known about… but the vast majority of them were news to me – and were exactly what I was looking for to “plug” the holes in my overall portfolio. Now, I’m happy to say that 2020 is shaping up to be the most productive and well-rounded year I’ve ever had, by far.

Keith’s book retails for $29.95, but because he and I go way back, he agreed to share it with you for just $7.95. That’s more than 70% off the sticker price!

If even just one of Keith’s 76 “secrets” works for you, it’ll be the best $7.95 you’ve ever spent – believe me. Just click here to learn how to grab your copy.

Until next time,

Neil Patel

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