Listen: California, Egypt And General Partner discussed on Ernie Brown
"You can't be serious. You cannot be serious in. I think that's an issue in everything we do on this show is yes, we liked the stock market. Yes. We liked that as a part of our portfolio, but one hundred percent of your portfolio that just doesn't make sense. So you hit on a couple of things taxes were coming up upon the end of the year. There are some significant ways to mitigate taxes you wanna touch a little bit about that on how it pertains to your strategy. Sure. A normally whenever you think of energy and oil and gas you think of ID season intangible drilling costs with that comes some risk with what we do in this water procurement water disposal. Water transportation, we actually locked into it. We had the strategy set up and thanks to the tax Bill that was passed in December of two thousand seventeen. There was something called bonus depreciation and that effectively is celebrating depreciation generally speaking on any assets that you would normally do. Appreciate less than twenty years. You can excel right that two year one. And so if people come into our partnership is a is a general partner, whatever they put in. We don't know the mass between this year and next year. They're going to get probably close to seventy or eighty percent of that investment can go to offset to ninety nine W two income. So you're gonna pay ten percent distribution. Yes, sir. You're if I invest one hundred thousand dollars I'm going to be able to appreciate my taxable income somewhere in the neighborhood of seventy five thousand dollars eighty thousand dollars. We believe that we believe that to be true. Yes, we won't know to get all the k ones out and door final accounting. We we should be right at that number. So so basically, they're creating their own tax breaks, the correct? Yeah. That is a made man if you will. If you have one hundred thousand dollars. Okay. And you're paying let's say you're in California, who's wears from California, and Texas, we don't have state income tax after they have thirteen percent. Okay. Well, you're paying fifty percent in taxes. Got it. So hundred grand you're paying fifty grand in taxes. Okay. If you can offset seventy grand of that. Let's let's just say it's a seventy percent offset. Sure. You just save thirty five thousand taxes making your net investment sixty five thousand dollars making ten thousand dollars a year. Distributions forget the taxman for a minute. Just the ten percent over the next three years. That's probably going to beat the market. I strongly feel that way. And then topper that you're getting the ten percent distribution army the tax benefit on top of Egypt the tax benefit while you're listening."