Interviewer: You mention reformative taxes what is that mean tax-free.John Schaub: Will when you start in a little state business your buying property and you won't have, you wont be paying much taxes on your little income because you have differentiation and all the offset in expenses so. Most real estate investors, they accumulate the portfolio for 5 or 10 or 15 houses. Paid a very little in taxes the first few years. Now if the rents go up when your rents double now your going to have income taxes to pay and then the next natural transition is to obtain some of those less expensive high casual properties for some better properties that appreciate more. In our long term if you compare the tax rates of appreciation which is capital gains rates to tax rates on rent which are order income rate, will see the capital gain rage or typically dramatically lower. Right now the capital ranges of 15% plus the over stay tax you might pay. And the rents on the rent the tax on rent or there income will be the size of 40% plus your stay taxes so do you know some about a third. And so thats a big difference and if you can take your profits out in capital gains whether in short term income you dont have to make as much money.