Tax Advantages of FUND 2020 – up to an 80% offset in your next tax bill
What Does This Mean to you?
The example below shows a highly compensated individual earning $400,000
a year of income. This investor is able to eliminate all income taxes by investing
$500k in EPUS Global Energy Fund H20.
| Investment (5 units) | $500,000 |
| 1099 & W2 Income | $400,000 |
| 80% Bonus Depreciation to be applied against 1099 & W2 Income | ($400,000) |
| Your New 1099/W2 Income | $0 |
Performance
| A Unit | |
| 10% Annual Distribution for 3 Years | $150,000 |
| Assume 3 year exit, 10% of profit* | $650,000 |
| Total Cash Returns | $800,000 |
| B Unit | |
| 3% Annual Distribution for 3 Years | $45,000 |
| Assume 3 year exit, 30% of profit* | $950,000 |
| Total Cash Returns | $995,000 |
*Assumes $100,000,000 liquidity event
Cash on Cash Returns
Taking into account tax savings.
| A Unit | B Unit | |
| Investment (5 Units) | $500,000 | $500,000 |
| Tax Savings | ($200,000) | ($200,000) |
| Net Investment | $300,000 | $300,000 |
| Distributions | $150,000 | $45,000 |
| Profits | $150,000 | $450,000 |
| ROI | 100% | 139% |
| IRR | 56% | 65% |
Tax Rates
| Top Federal Income Tax Rate | 37% |
| Top State Income Tax Rate (CA) | 13% |
| Total Federal & State Income Tax Rate | 50% |
| Sources | |
| Internal Revenue Service 2019 Federal Tax Rates | |
| Top State Marginal Individual Tax Rates 2019 |
EPUS Global Energy, LLC, Fund H20, LP and or its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
How we work with RIA’s
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- Access to institutional grade “alternative” investments
- Investor presentations, hosted by EPUS, for your best clients
- Help with IRA money
- Annuity Exits and Roth Conversion Strategies