Reagan’s Secret 20% Taxpayer Loophole

A little-known provision of Ronald Reagans Tax Reform Act of 1986, known as Section 7704, lets savvy investors collect payments of up to 20% a year in some cases virtually tax free! Over an 11-year period, a $50,000 portfolio made up of these secret tax loophole investments could potentially grow into $222,144 and produce income as high as $3,702 per month.

Dear Fellow Investor,

Well, you can thank the Gipper for this one!

On October 22, 1986, President Ronald Reagan signed the Tax Reform Act of 1986.

Supported by key Democrats in Congress, the bill slashed the top income tax rate from 50% to 28% consolidated 15 tax brackets down to just 4 and eliminated dozens of tax shelters and schemes widely used by the super-rich.

But unbeknownst to many, there was hidden deep in the bill a secret tax loophole: a gift Ronald Reagan knew would be an engine for economic growth for decades to come and that has been making millionaires for more than 25 years .

The gift was buried in Section 7704 of the bill. To this day, few investors know about it. Your broker probably hasnt even heard of it.

But make no mistake: Section 7704 of the IRS Code can make you very, very rich.

Heres why.

In essence, the bill EXEMPTS an entire class of specialized energy investments from having to pay ANY corporate income taxes.

Thats right: The law allows entrepreneurs to create special partnerships, mostly in energy, that pay virtually no taxes at all.

As in: Zero. Nada. Zilch.

Instead, these special investment partnerships are required, by law, to pass on 90% of their profits to their investors and even the investors legally pay little if any taxes!

Due to the provisions of Section 7704, the profits from these special investments are considered return of principal, not profits in the true sense*.

In the past, these tax-busting partnerships were a closely guarded secret of the super-rich.

Theyre one of the reasons why billionaire investors like George Soros and Warren Buffett pay a MUCH lower tax rate than their secretaries.

Like tax-free municipal bonds on steroids, these high-yield superstars

Provide annual yields up to 30 times greater than what you can get from most dividend stocks, bank CDs and Treasury notes Outperformed the S&P 500 by 233% over the past 11 years, turning every $50,000 invested into $222,144 Hand you annual yields as high as 20% and checks that can be worth THOUSANDS OF DOLLARS every quarter, sometimes even monthly Provide you with rock-solid safety in a time of increased uncertainty regarding the economy as the underlying investments appreciate in value. and, best of all Are NOT subject to the various investment tax increases passed as part of the Fiscal Cliff compromise legislation.

Reagan Tax Loophole Investments

Provide Better Performance, On Average,

Than any Other Asset Class

According to one study, an index of 50 Section 7704 investments outperformed almost all other asset classes by a HUGE margin over the past decade with average annualized returns, over the past 11 years, of 17.91%.