LOOPHOLES OFTHE RICH How the Rich Legally Make More Money & Pay Less Tax phần 1 pot

[...]... down The government therefore provides the loopholes in order to encourage real estate investors The first edition of Loopholes of the Rich was published in 20 01 Since then, I’ve heard from thousands of people about how they have made more money and reduced their taxes by taking advantage of the tax loopholes that the government wants you to use The loopholes are there! The government puts them there... made use of the tax loopholes to set up the right business structure and take the legal deductions, so he ended up with more money in his pocket In fact, at the end of his first year he had $10 ,000 more cash even though he had made the same amount of money! Scott had used the tax loopholes that the government wants him to use Scott is now my business partner at TaxLoopholes and D Kennedy & Associates... in payroll taxes (or self-employment taxes, if you’re in the wrong business structure) and you are looking at a tax rate of more than 40 percent! Now, contrast that with the tax rate for portfolio income Interest 12 LOOPHOLES OF THE RICH Three Types of Income with Three Types of Taxes Earned income: You work for the money 35 percent tax rate Portfolio income: Your money works for you—generally 15 percent... (DKA) We both use the money we make from the businesses (after taking all of the tax- free benefits we can) to invest in real estate Our wealth grows in the best taxadvantaged ways How the Book Is Set Up The book is divided into four sections Each section is important and builds upon the other I suggest that you read the book through once, completely Then go back to more closely read the chapters that... passive However, there are also two other types of incomes that you STARTING POINT—UNDERSTANDING YOUR FINANCIAL STORY 13 don’t currently pay tax on Tax- deferred tax means tax later,” while taxfree means tax never.” Sometimes, if you’ve set up your strategy right, tax- deferred can mean tax never But remember, there is generally a day of tax reckoning on tax- deferred income Two common types of tax- deferred... on the replacement property within 18 0 days You need to invest all of the cash from the sale into the next property, and the next property must be purchased for at least as much as the sale price of the first property 14 LOOPHOLES OF THE RICH Recent tax law has given us a few more opportunities For example, there is a method of holding title to property called “tenants-in-common” in which there is more. .. with the basics of loopholes Loopholes Are Government Incentives Loopholes are government incentives to promote public policy They aren’t something shady or shifty In fact, the government wants you to xii INTRODUCTION take advantage of the legal tax loopholes that the tax law provides So where are the loopholes? You’ll find most of the loopholes in the two areas that most support the economy—businesses... to show for all the years of work Where Did It All Go Wrong? The biggest expenses for the average American are interest and taxes Both of these expenses put your money in someone else’s pocket The interest that you pay on your home mortgage, car loan, credit cards, and the like is income to someone else The taxes you pay go to support the government without much input from you In other words, the typical... strategist for the wealthy, and as a result had learned many of the loopholes the wealthy used The simple fact is that the wealthy approach their tax and financial planning in a radically different way than what we have been taught Ted and Ellen were happy to discuss their financial plans with me Together, we created a strategy that reduced their income tax and used the money they previously paid to the government... wealth, taxfree, for their future That means that much of the money they used to spend on taxes is now being used to build their future Using the same process we still employ today at my CPA firm of (1) assessing, (2) team building, (3) evaluating, (4) implementing, and (5) reassessing, they learned how to jump-start their wealth In a series of conversations, they learned the basics of devising a tax plan, . x0 y0 w1 h1" alt="" LOOPHOLES OF THE RICH ffirs.qxd 10 /25/04 10 :06 AM Page i ffirs.qxd 10 /25/04 10 :06 AM Page ii LOOPHOLES OF THE RICH How the Rich Legally Make More Money & Pay Less Tax REVISED. about how they have made more money and reduced their taxes by taking advantage of the tax loopholes that the government wants you to use. The loopholes are there! The government puts them there. the rich : how the rich legally make more money and pay less tax / Diane Kennedy—Rev. ed. p. cm. Published simultaneously in Canada. Includes index. ISBN 0-4 71- 711 78-0 (pbk. : alk. paper) 1. Corporations—Taxation—United