You can watch a free video recording of this event at: http://www.hasslefreecashflowinvesting.com/tax-planning-2011/ It's not about how much you earn. It's about how much you keep! Learning how to legally avoid or defer the payment of income taxes is essential to your financial success. Our world class faculty show experienced and novice real estate investors how to legally earn more while paying less in taxes. You will learn: 1) Urgent year-end tax moves every real estate investor must be aware of 2) How to take advantage of special 2011 tax deductions before they expire 3) How to get the IRS and your tenants to pay for a healthier retirement than you thought possible 4) Ways to ensure your self-directed IRA stays tax deferred 5) Which investments you should own personally and which investments you should own inside an IRA to optimize your tax advantages 6) How to identify and use your eight essential resources to legally earn more and pay less in taxes 7) Strategies to produce cash flowing real estate profits without the hassle and without the tax 8) Time sensitive legal considerations that could have a huge impact on your taxes In this 90 minute FREE webinar, you'll hear from professional investor David Campbell, self-directed IRA company president Kaaren Hall, tax strategist Amanda Han, CPA, real estate attorney Jeff Lerman, and estate planning attorney Michell Lerman. This webinar is appropriate for both new and well seasoned investors. While this webinar will be recorded, you'll get the most out of the experience by attending live so you can ask questions. MEET OUR WORLD CLASS FACULTY DAVID CAMPBELL - professional investor / developer www.HasslefreeCashflowInvesting.com KAAREN HALL - president of uDirect IRA Services www.uDirectIRA.com AMANDA HAN, CPA - tax strategist with Keystone CPA www.KeystoneCPA.com JEFFREY H. LERMAN - real estate attorney www.realestateinvestorlaw.com MICHELLE C. LERMAN - estate planning attorney www.realestateinvestorlaw.com

1. Year End Tax Strategies for
Real Estate Investors
www.LermanLaw.com
www.uDirectIRA.com
www.KeyStoneCPA.com
www.HasslefreeCashflowInvesting.com

2. David Campbell
developer / broker / syndicator
Former high school & college band director
Professional investor over $800 million of real
estate experience
Self-made multi-millionaire
Real estate & business advisor
Financial mentor
Houses, condo-conversion, multi-family, winery,
resort, office, retail, medical office, commercial
development, home building
David@HasslefreeCashflowInvesting.com

3. Begin with end in mind
Helping other people live more abundant lives by
giving knowledge and support for our others to
invest profitably and with mental tranquility.
NOT a sales pitch
NOT investment, legal, or tax advice
NOT an investment offering

4. WHAT THIS IS !
This IS an educational
service to our existing
clients
This IS a job interview

5. Real Estate Investor Tax Advantages
•Tax Rate Reduction
• Capital Gains versus Ordinary Income
•Taxable Income Reduction
• Depreciation / write offs
•Tax Deferral
•Self-Directed IRA / 1031 exchange / capital gains
•Tax Avoidance
•Estate planning / 1031 swap till you drop

6. Tax Rate Reduction
10% Profit Pay 25%
Ordinary Income Taxes 10% Profit Pay 15% CAP Gains Tax
2012 $ 100,000 $ 100,000
2014 $ 115,563 $ 119,350
2016 $ 133,547 $ 140,502
2018 $ 154,330 $ 165,402
2020 $ 178,348 $ 194,716
2022 $ 206,103 $ 229,224
2024 $ 238,178 $ 269,848
2026 $ 275,244 $ 317,672
2028 $ 318,079 $ 373,972
2030 $ 367,580 $ 440,249
2032 $ 424,785 $ 518,272
2034 $ 490,892 $ 610,123
2036 $ 567,287 $ 718,252
2038 $ 655,572 $ 845,544
2040 $ 757,595 $ 995,395
2042 $ 875,496 $ 1,171,804
GROSS PROFIT $ 775,496 $ 1,271,408

7. Taxable Income Reduction
Gross Income (Gross Income
X Rate less Deductions
TAX OWED less Depreciation)
X Rate
TAX OWED

8. Tax Deferral
Arbitrage Bank Arbitrage IRS
Invest at 10% Invest at 10%
-Borrow from BANK at 5% -Borrow from IRS at 0%
------------------------------------ ------------------------------------
PROFIT on BANK’s MONEY 5% PROFIT on IRS’s MONEY 10%

9. Tax Deferral 10% Profit but Pay Taxes 10% Profit with Tax Deferral
2012 $ 100,000 $ 100,000
2014 $ 115,563 $ 121,000
2016 $ 133,547 $ 146,410
2018 $ 154,330 $ 177,156
2020 $ 178,348 $ 214,359
2022 $ 206,103 $ 259,374
2024 $ 238,178 $ 313,843
2026 $ 275,244 $ 379,750
2028 $ 318,079 $ 459,497
2030 $ 367,580 $ 555,992
2032 $ 424,785 $ 672,750
2034 $ 490,892 $ 814,027
2036 $ 567,287 $ 984,973
2038 $ 655,572 $ 1,191,818
2040 $ 757,595 $ 1,442,099
2042 $ 875,496 $ 1,744,940
GROSS PROFIT $ 775,496 $ 1,644,940
Income Tax Owed paid along the way $ 411,235
NET PROFIT $ 775,496 $ 1,233,705

10. Tax Avoidance 10% Profit but Pay Taxes 10% Profit with NO TAX EVER
2012 $ 100,000 $ 100,000
2014 $ 115,563 $ 121,000
2016 $ 133,547 $ 146,410
2018 $ 154,330 $ 177,156
2020 $ 178,348 $ 214,359
2022 $ 206,103 $ 259,374
2024 $ 238,178 $ 313,843
2026 $ 275,244 $ 379,750
2028 $ 318,079 $ 459,497
2030 $ 367,580 $ 555,992
2032 $ 424,785 $ 672,750
2034 $ 490,892 $ 814,027
2036 $ 567,287 $ 984,973
2038 $ 655,572 $ 1,191,818
2040 $ 757,595 $ 1,442,099
2042 $ 875,496 $ 1,744,940
GROSS PROFIT $ 775,496 $ 1,644,940
ESTATE PLANNING
Income Tax Owed paid along the way SWAP TILL YOU DROP
NET PROFIT $ 775,496 $ 1,644,940

11. “Quarter-Back” of
your Investing Team”
NEW HOUSES
PASSIVE
SYNDICATIONS
David Campbell
www.HasslefreeCashflowInvesting.com
COACHING
David@HasslefreeCashflowInvesting.com

12. 2011 YEAR-END
TAX PLANNING
STRATEGIES
Presented By
KEYSTONE CPA, INC.
(877) 975-0975 www.KeystoneCPA.com

13. Current Tax Rates
Federal Income Taxes @ 35%
State Income Taxes @ 11%
Payroll Taxes @ 15%
Capital Gains Taxes @ 15%
Estate Taxes @ 35%
(877) 975-0975 www.KeystoneCPA.com

14. Brand New Taxes
Unearned Income Medicare
Contributions Tax
….Wow, that’s a mouthful!
-Brand New Tax on Net Investment Income = Another 3.8%
Hospital Insurance Tax
….Another Innovative Brand New Concept
-Brand New Tax on Earned Income = Yet Another 0.9%
(877) 975-0975 www.KeystoneCPA.com

15. Redirect Tax Dollars to Your Retirement Accounts
• Pay Yourself Rather than
the IRS
• Create Tax Deferred Money
to Invest in Real Estate
• Start a Bucket of Tax Free
Money for Life
(877) 975-0975 www.KeystoneCPA.com
www.themegallery.com Company Logo

16. 2011 TAX REDUCTION STRATEGIES
Income Deferral
(877) 975-0975 www.KeystoneCPA.com

17. 2011 TAX REDUCTION STRATEGIES
Accelerate Expenses
S
NSE
PE
EX
(877) 975-0975 www.KeystoneCPA.com

18. 2011 Bonus Depreciation
2011
(877) 975-0975 www.KeystoneCPA.com

19. For Real Estate Investors
(877) 975-0975 www.KeystoneCPA.com

20. Contact Us
KEYSTONE CPA, INC.
Maximizing Profits & Increasing Wealth
www.KeystoneCPA.com
(877) 975-0975
N ON:
SEE
AS
www.KeystoneCPA.com
(877) 975-0975 Company Logo

21. FREE! Downloadable eBook
Presented By
*****Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, (1) for the
purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency, (2) promoting, marketing, or
recommending to another party any transaction or matter addressed herein. The information contained within is provided for informational purposes only and is not
intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant. Before making tax or business decisions, please consult your
professional tax advisor. This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected
by law. Any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. *****Copyright © 2011 by Keystone
CPA, Inc.
(877) 975-0975

22. Essential Resources
cash
cash flow LIMITED
credit
equity
time LIMITED and INFINITE
talent
strategic relationships INFINITE
control of an opportunity

23. TAX DEFERRAL
cash Traditional IRA
cashflow Self-Directed IRA
credit (other people’s)
equity
time
talent
strategic relationships
control of an opportunity

24. How to Self-Direct Your Retirement Savings
uDirect IRA Services, LLC is not a fiduciary and does not render tax, legal,
accounting, investment, or other professional advice. If tax, legal,
accounting, investment, or other similar expert assistance is required, the
services of a competent professional should be sought.

25. What’s the Difference?
Typical IRA Self-Directed IRA
• Stocks • Rental Property
• Bonds • Notes
• Mutual Funds • Private Stock
• CD’s • LLC’s
• Tax Liens
• Foreign Property
• Raw Land
• Etc.

26. What Are The Limits?
A Self-Directed IRA can invest in anything EXCEPT
1. Life Insurance Policies
2. Collectibles
1. Artworks
2. Coins
3. Collectible Cars
4. Antiques
5. Gems
6. Stamps
7. Rugs

27. What if your funds are with your
current employer?
Your plan will probably NOT allow you to self-
direct
Must wait until you leave the company
To rollover retirement plan
You can request an “in-service” transfer
from your current plan administrator.

28. Prohibited Transactions
(IRS Publication 590)
• Borrowing money from the IRA
• Selling property to it.
• Using it as security for a loan.
• Buying property for personal use (present
or future) with IRA funds.

29. Disqualified Person
• Disqualified persons include your fiduciary and
members of your family (spouse, ancestor, lineal
descendant, and any spouse of a lineal
descendant).

30. Qualified Persons
• Aunts & Uncles
• Cousins
• Brothers & Sisters
• Unrelated friends
• Nieces & Nephews

31. Prohibited Transactions
• Neither you nor any disqualified people
may benefit from IRA
• Cannot buy, sell or exchange property
between plan and
– Self or
– Disqualified people
• Cannot provide goods, services or facilities

32. Self-Directed IRA - Structure
• You
• Your IRA
• TPA
• Custodian

33. Buying Real Estate With Your IRA
Pros
1. Capital gains are tax free
2. Positive cash flow is tax free
3. No time limit for holding property
4. IRA can borrow money
– Leverage your investment
5. Potential to earn a larger rate of return on
invested capital

34. Buying Real Estate With Your IRA
Cons
1. No tax advantages of owning real estate
2. No deduction for capital losses
3. You are solely responsible for all gains or
losses
4. You cannot replace losses

35. Buying Real Estate - The Process
• Open a self-directed account
• Shop for a property
• Remember, it’s the IRA that is the buyer
• Custodian to sign “Offer to Purchase”
• Submit a Buy Direction Letter for earnest money
deposit
• Funds wired to closing from your IRA
• Fund & Record
• Rents are made payable to your IRA

36. IRA-Owned LLC
“Checkbook IRA”
• IRA purchases shares of a newly-formed
LLC formed for this purpose
• LLC receives funds in it’s checking account
• LLC follows same rules as IRA for
investing

37. 3 Types of Plans
• IRAs
– Individual Retirement Accounts
– What you are doing for your own retirement
• Qualified Plans
– ERISA controlled
– Typically, what an employer provides you
• Other Plans
– Education
– Health

38. Types Of Self-Directed Plans
IRAs Qualified Plans Other Plans
Traditional 401K/ 457/ 403b Coverdell
Health Savings
Roth Defined Benefit
Account
SEP Profit Sharing
Simple Individual K
Spousal

39. How Do I Self-Direct?
1. Complete an application
1. Provide copy of driver’s license
2. Copy of statement
2. Fund your account
1. Annual Contribution
2. Transfer
3. Rollover
3. Tell us what you want to invest in

40. Kaaren Hall, President
uDirect IRA Services, LLC
(866) 538-3539
KHall@uDirectIRA.com
uDirect IRA Services, LLC
2522 Chambers Road, Ste 100
Tustin, CA 92780

41. Tax Avoidance Through
Estate Planning
Michelle C. Lerman
Lerman Law Partners, LLP
Copyright 2010 -2011@ Lerman Law Partners, LLP All Rights Reserved

42. Michelle C. Lerman
Lerman Law Partners, LLP
• Certified Specialist in Estate Planning, Trust and Probate
Law by the California State Bar Board of Legal Specialization
• Super Lawyers of Northern California for 2009 and 2010
• Marin Estate Planning Council
• Co-founder/head Mentor Group, Marin County Bar
Association Estate Planning Section
• Frequent lecturer
• Voted #1 Favorite Lawyer - The “J.” Newspaper Readers’ Poll
2007 Marin and Sonoma Counties
• UCLA, BA, magna cum laude 1980, USC- JD 1983
Copyright 2010 -2011@ Lerman Law Partners, LLP All Rights Reserved

43. Disclaimer
This seminar is offered with the
understanding that neither Michelle
C. Lerman, nor Lerman Law
Partners LLP is engaged in offering
you legal or other professional
advice, and we have no attorney-
client relationship with you unless
you sign an Engagement
Agreement. Any actions with
regard to the information contained
in this seminar should be
undertaken only upon the advice
and counsel of competent legal, tax
and estate planning professionals.

44. IRS Circular 230 Disclosure
Nothing contained in these presentation
materials was intended or written to be
used, can be used or may be relied on
for the purpose of avoiding penalties
that may be imposed under the IRC of
1986, as amended, and may not be used
to support the promotion or marketing
of or to recommend any federal tax
transactions discussed in this
presentation.

45. CRITICAL END-OF-YEAR
ESTATE PLANNING
Copyright 2010-11 @ Lerman Law Partners All Rights Reserved

46. CRITICAL PROVISIONS OF
THE 2010 TAX ACT
1. $5M BASIC EXCLUSION
2. 35% FLAT RATE FOR ESTATE
AND GST TAX
3. SUNSET AT END OF 2012

47. THE “GIFT TAX BONANZA”
An Extra $8 Million!!
Copyright 2010-11 @ Lerman Law Partners All Rights
Reserved

48. LEVERAGE THE GIFT!
• INSTALLMENT SALE
• QPRT
• LIFE INSURANCE TRUST

49. ANNUAL EXCLUSION
GIFTS
• BY DECEMBER 31
• AGAIN IN JANUARY 2012

50. PAYMENTS FOR TUITION
AND MEDICAL EXPENSES
• UNLIMITED AMOUNT
• PAY DIRECT

51. Michelle C. Lerman
Lerman Law Partners, LLP
• Los Angeles
• San Francisco
• San Mateo
• San Rafael
(310) 295-1951
(415) 454-0455
www.lermanlaw.com
michelle@lermanlaw.com

53. Jeffrey H. Lerman, Esq.
T
M
www.RealEstateInvestorLaw.com

59. jeff@lermanlaw.com
800-553-7626
800-5-LERMAN

60. Year End Tax Strategies for
Real Estate Investors
White List: David@HasslefreeCashflowInvesting.com
FREE REPORTS
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CONTACT INFO FOR ALL PRESENTERS