One of the great freedoms that a Financial Bunker created using Section 7702 holds is the freedom of money movement.
Within these specially designed accounts, a contract owner can move money out of the account without creating any taxable event. This is a very useful tool to have especially when opportunity may arise. It’s also extremely valuable when privacy is important.
How The Bunker Is Taxed
There is no IRS reporting requirement on certain withdrawals of funds, or gains.
Considering the powerful compounding potential of these accounts, the ability to create near instant liquidity of an asset without creating a taxable event is quite attractive compared to other places to put money.
The Financial Bunker has…
1. NO capital gains tax
2. NO ordinary income taxes
3. NO subject to means based testing
4. NO state or local taxes
5. NO IRS reporting requirement on certain withdrawals
There Is No Limit
The income tax freedom of the Financial Bunker is infinite. Using the special withdrawal features of the bunker you could withdraw $1,000,000 (if you have that in your bunker) and if all of that was a gain, you do not have to pay taxes on it.
But here is the best part.
You would not have to report that withdrawal on your income tax return. (This all assumes you make the withdrawal correctly and follow all the rules of the Financial Bunker.)
Think about where your other assets sit right now. How would they be taxed?
The tax-free liquidity is just one of the reasons the commercial banks invest billions in Financial Bunkers.