Businessmen invest in the real value and don’t pay taxes

Domination of banks and financial institutions at the investing market is slowly becoming  to end. Investors, discouraged by a lack of profits from investing funds, Forex, Stock market or other virtual institutions, more often choose investments based on the real value.

Thanks to this, they gain not only the feeling of joint ownership of tangible property and the control over own investment but also certain legal and tax benefits. Unusually profitable investments in commercial real estate or power engineering industry were previously reserved only for big fish, investing funds or government monopoly.
Thanks to a change of the energy law  and various forms of the optimisation of profits and risk of  business activity in the form of partnerships and  joint-stock companies, one can become a shareholder of  a wind power plant, even not having a large capital.  A purchase of a real estate, most often  requires a certain amount of money, an access  to information and knowledge about the market,  in order to make attractive transactions. Such investments seem to be a passive source of income, however,  in practice, they turn out to be a quite serious problem for an investor.
This just doesn’t end at ongoing management of a facility  but also settlement of lessees or presenting it to potential customers.
It is also worth to observe the market to know when  it is best to leave the investment.  A good time for it is not only the moment when  there appears a buyer willing   to pay well but also the moment when we are able  to beneficially reinvest resources acquired  from the sales of it. There are investors who do not want  to think what to invest in every 2 or 3 years.  A solution for the above issues is  to delegate the management over own investment  to a trusted and proven company, specialised  in investments of such type. It is advised to make sure  concerning several issues, before deciding for  a cooperation with such investing partner.
• Transparency of documentation
• For example, the form of a limited company  not only ensures clear rules for a particular investment but  also  allows a partner an access to the project  documentation. Companies offering an investment in this model, most often make sure that  documents are properly kept.
• Proven partners/contractors
• It is worth to verify who is responsible for  the project realisation – preparation of documentation  and developing works. The best situation is  when it is a reputable company with  many years’ activity and documented achievements.  Experience of people managing the project
• You should meet them in person and verify  their knowledge, reliability and intentions but also to  check past achievements and education.  • Investment protection and insurance
• Tangible investments, such as real properties  or wind power plants can be insured  what is not always possible in case of investments  at financial markets. Let us make sure  that the company will properly insure  own capital not only against an impairment  but also against the work continuity. An example  of such insurance is the guarantee of maintenance of  a wind turbine, in which there is  the assumed certain time for any repairs  and inspections. After this period,  the service covers costs of lost benefits  due to a lack of sales of energy.
• Deductible of the manager in proposed projects
• Each investing project increases value when  persons managing it, first,  invest own resources in it, secondly,  are remunerated depending on achieved  profits. Investing fund managers, stock market,  forex platforms charge a commission, regardless the investor’s profits or losses. Thus, when deciding on investing in  real value, let us make sure if project managers  invested own resources in it so will  earn only when they allow to earn  their investors.

Investment in the real value, using so called special purpose vehicle (established and adjusted to realisation of a particular project) offer an investor partner’s rights (in accordance with provisions of the Code of Commercial Companies).  An entrepreneur has not only an access to the company’s documentation but also tangible financial benefits, provided having a properly selected form of taxing. In case of an investor/partner of a limited partnership, he/she will avoid double taxation as the partnership is not a CIT tax payer but the investor directly.
Additionally,  such above mentioned investor/ partner settles the income from such investment together with income from non-agricultural business activity, so it may happen that having high business costs in a particular year, he/ she will not pay any tax for profits from the investment. This is not possible  in case of investments on the financial market, where the capital gains tasks is in force.  Profits from the investments in projects in investing is the real value amount to ten-odd to tens of percent a year.
This happens mainly because of the possibility to use a leverage on loans. What is more, investing in the green energy, e.g. wind power plants, we can obtain donations, which significantly increase the investment’s profitability and make it independent from the economic situation. Apart from that, the power engineering branch is characterised by the independence from the situation  on financial markets, as we use more and more energy,  regardless the bull or bear market.

Przeczytaj ten artykuł w wersji polskiej: http://www.businessmantoday.org/przedsiebiorcy-i…sc-placa-podatku/