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Latest revision as of 02:36, 12 May 2026


Tax, it isn't a dirty four letter word, but for many individuals its connotations are far worse than any curse. It's been found that high tax rates generally relate to outstanding social services and standards of living. Developed countries, from where the tax rate exceeds 40%, usually have free health care, free education, systems to appreciate the elderly and a bigger life expectancy than having lower tax rates.

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For my wife, she was paid $54,187, which she is not taxed on for Social Security or Healthcare. He has to put 14.82% towards her pension by law, making her federal taxable earnings $46,157.

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If you add a C-Corporation with your business structure you can aid in reducing your taxable income and therefore be qualified for several of the deductions which is why your current income as well high. Remember, a C-Corporation is its very own individual citizen.

In our software company there are two in order to build wealth and much more through intellectual property and maintenance paperwork. These two things used together will build a company that can be sold for 2-4X revenues. Now to foster that investment with leverage, Make the most of the "Infinite Banking Concept" to lend money for the business through "my own bank." The money enterprise pays me comes back as investment income thus lower tax returns. The new revenue the additional maintenance contracts bring foster new commitments. The next step would be transfer pricing use "good debt" to leverage our coverage and purchase more maintenance contract revenue with our software working.

Another angle to consider: suppose your enterprise takes a loss of profits for the age. As a C Corp there exists no tax on the loss, however there likewise no flow-through to the shareholders along with an S Corp. The loss will not help your personal tax return at everyone. A loss from an S Corp will reduce taxable income, provided there is other taxable income to decline. If not, then put on weight no taxes due.

Copyright 2010 by RioneX IP Group LLC. All rights shy. This material may be freely copied and distributed subject to inclusion of this copyright notice, author information and all of the hyperlinks are kept undamaged.