Difference between revisions of "Offshore Business - Pay Low Tax"

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Revision as of 12:36, 10 November 2024

Note: This writer is not CPA or tax technician. This article is for general information purposes, and really should not be construed as tax professional guidance. Readers are strongly encouraged to consult their tax professional regarding their personal tax situation.

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Contributing an insurance deductible $1,000 will lower the taxable income for the $30,000 per annum person from $20,650 to $19,650 and save taxes of $150 (=15% of $1000). For the $100,000 every single year person, his taxable income decreases from $90,650 to $89,650 and saves him $280 (=28% of $1000) - almost double!

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Defenders in the IRS position would say it pops up to Section 61. The waitress provided a service for me, and I paid for this. Compensation for services is taxable. End of account.

There is often a fine line between tax evasion and tax avoidance. Tax avoidance is legal while tax evasion is criminal. Should you desire to pursue advanced tax planning, retain all of your you go with it is also of a tax professional that intending to defend the strategy to the Irs.

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