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Your corporation brings in $1,000,000. It pays you $300,000. Then it buys an apartment complex with the remaining $700,000. Now it gets income from the rent and reinvests that into more complexes. Now it is paying taxes on the rents it receives. Then it invests that remaining money into more complexes.
Had you bought the apartments you would have owed taxes on that $700,000. You pay taxes first, then spend on apartments. Your corp buys apartments and then pays taxes after on what is left.
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