IRS “Hedge Loophole” Wipes Out 38% Tax
New IRS Loophole Could Protect IRA Investors from a $2 Trillion Loss (or more)
Believe it or not, the IRS wants you to be rich.
In a dramatic move, the IRS protected investors from economic turmoil & wiped out a major 38% tax with the “Inflation Hedge Loophole.”
Since 2000, over $6 trillion dollars of wealth was destroyed by stock market downturns. That’s $6 trillion the IRS will never get to tax. SO:
They’ve opened a doorway for investors to protect their retirement accounts AND legally avoid a 38% tax.
But why are they protecting investors right now?
IMF Issues $11.7 Trillion Dollar Warning
The International Monetary Fund just issued a dire warning:
Even if economic recovery is strong & interest rates rise, 1 out of 3 major banks will fail… Sending an $11.7 trillion-dollar shockwave through the global economy.
Meanwhile CNBC reports that major investment banks are preparing for what they call a “banking nuclear winter” by the end of the year.
And governments worldwide have racked up so much debt they’re now forced to pay off old debt with new debt (like paying off a credit card with another credit card!).
And that’s just the tip of the iceberg.
Barclay’s warns stocks are overpriced by more than $2 Trillion dollars because public companies have borrowed The Fed’s “cheap money” and used it to re-purchase their own stock.
That means companies have added $2 Trillion of debt… And when it comes to earnings (so they can pay back the debt), Goldman Sachs just lowered its projections for the entire S&P 500…
For the next 3 years.
Anyone want to guess what happens to these “phantom” stock market gains when corporate debt goes up while earnings go down?
Too Many “Insider” Warnings to Ignore?
James Dale Davidson, the economist who warned everyone before the collapse of 1999 and 2007 says a 50% stock market collapse is “already at our doorstep.”
Economist Andrew Smithers, who predicted the 2008 financial crisis, warns: “U.S. stocks are now about 80% overvalued.”
And former Federal Reserve Chairman Alan Greenspan says "This is the worst period I recall... There's nothing like it, including the crisis.”
Billionaire investor Jeffrey Gundlach told Reuters when it comes to stocks & bonds: “Sell everything.”
Billionaire investor Jim Rogers warns that a “$68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans.” And billionaire investor Stanley Druckenmiller says simply “Get out of the stock market.”
After cutting his stock holdings by 37%, billionaire investor George Soros says "there is a serious challenge which reminds me of the crisis we had in 2008."
And billionaire investor Mark Faber told CNBC “investors are on the Titanic” and stocks are about to “endure a gut-wrenching drop that would rival the greatest crashes in stock market history.”
8 billionaires (at least), most hedge fund managers and major banks are taking the same action to prepare.
The IRS can read the writing on the wall and is opening a “Hedge Loophole” for Main Street investors to protect their hard-earned wealth…
Without facing a major tax penalty.
IRS Can Read the Writing on the Wall
Billionaire investors Jim Rogers, Mark Faber, George Soros, Stanley Druckenmiller, Bill Gross, Jeffrey Gundlach, John Paulson & Carl Icahn are all investing billions into one asset to “hedge” against stock market risk.
Hedge fund managers are following suit… a recent report revealed that 25% of ALL investors are ready to buy in as well.
Goldman Sachs told their wealthiest clients to invest… AND:
Banks are gobbling this asset up faster than anyone else.
Jim Rickards warns us though that the time to buy is now, or “there's not going to be enough to go around.”
The IRS can read the writing on the wall as well as any of us, so they’ve opened up a “Hedge Loophole” so investors can own this asset while legally avoiding a 38% tax.
But only if you follow the rules and work with one of their authorized custodians (they even published a downloadable “Hedge Loophole” guide to show you how it works).
If you’re interested in protecting & growing your wealth through the coming crisis, click the button below now to review the IRS rules and see if the “Hedge Loophole” has a place in your financial plan.