Five Major Tax Loopholes, Because Tax Evasion is Illegal, But Tax Avoidance Is Not

1. I will provide you with the keywords, then you do the research. Before using these types of loopholes, consult with your Attorney. Very few taxpayers take advantage of these methods, without consulting with an Attorney or an Experienced CPA.

Keywords: assets, donate to 'your charitable trust', sell the assets, invest the proceeds, (all in the name of the trust)

2. You can always place a portion of your lifestyle cost into your corporation/business. Example: The summer home on the beach, is purchased by the corporation, to be used by corporate clients! (You will need an experienced tax professional to report this correctly on your corporate tax return)

3. ALWAYS know what your corporate/business profit will be. Spend (on legal tax deductions) until the corporate taxes are reduced.

4. Tip: Never spend in one year, more then you have reported to the IRS, unless you are willing to explain where the cash came from? (Every time there is a transaction over $5K, the financial institution, by law, has to report it)

5. Defer your income. If your corporation owes you $2 million, invest the money (safe money account) and take procession of the income during a year when your income is much lower, or when your business expenses are much higher.

Note: You will notice that the most effective tax loopholes can only occur when a tax payer has his/her own business/corporation - I will post loopholes for individuals in another couple weeks

Tips:

a. The wealthy own as little as possible. Very few of their assets are in their name!

b. It is NOT illegal to have offshore accounts, it's just illegal NOT to tell the IRS!

c) Those who are striving to accumulate wealth, have a habit of spending around 80 percent of their disposable income on investments which will generate a return! (This means, when starting out, they drive older cars, live in questionable neighborhoods, and take their lunch to work)