The taxes are withheld from the amount of about 25% of their gross salary checks (including federal tax, state income tax, social security and Medicare). But these taxes are withheld could be working for you as investments if you employ what I call the ultimate tax strategy. This fiscal strategy is how you will pay no similar all large corporations tax. Large companies have teams of accountants and lawyers who pass the tax code to make maximum use of legitimate deductions.
In my opinion, there is a clear difference between an individual and a business in the tax code U. S. (others have called the difference between the rich and the poor). Such as businesses are rewarded with tax deductions because they create jobs and engage in business activities that support individuals and government. However, individuals about tax cuts because they do not create jobs and do not take risks that add substantial value to the economy are granted. This is simply the fact and we just have to find a way to make the most of the few tax deductions that are available to employees as well.
When tax time arrives, the only substantial tax rebate most individuals have is a deduction for your home mortgage. This deduction is a benefit of social policy for many people, but instead of helping people, and that motivates them to buy a larger or higher mortgage than they would normally be allowed home. And unless you live in a neighborhood that continually appreciates, this is not a good strategy for you to target.
First, I have to do all the limitations of the big questions to minimize their taxes. There are many in prison who have written books, tapes, seminars and web sites on how to avoid paying taxes. You can location of these people because of their focus on the concepts that the IRS says they are valid; strained interpretations that have not been carried out in the courts, without constitutional sense and a lot of straight fraud. Once the IRS audits these "patriotic" educators, the result is a bill for back taxes, interest, penalties and jail or prison. And tax evasion is not limited to employees. Almost mostly all how someone who tried to avoid taxes hit giant luck (sold a company for millions, exercised stock options, received a big bonus) and paid any small business offshore consulting shadow to create fictitious tax loss to offset the big gain. The same is true; Game files IRS back taxes, interest, penalties and possibly jail depending on the circumstances.
The best tax planning strategy works with buying investments that have a positive cash flow (before tax consequences), and give you a tax deduction legitimate as an added bonus. Now it's just a matter of buying enough of these investments to reduce your tax liabilities close to zero. If you have too much of these investments, the IRS tax loss limits of previous years, and that can get to lose. The two legitimate deductions
I need to mention are real estate depreciation and depletion of oil wells. You are buying something that is going to put money in your pocket (or a very high probability of success), and because it is in alignment with government policy, which gives a tax deduction to take this risk.
To calculate the amount of the deduction is needed, it starts with the federal tax standard deduction 1040. Sume (which is around $ 3,000) and itemized deductions on Schedule A. The difference between the number just calculated and current adjusted gross income is the amount of depreciation is necessary to purchase for the final fiscal strategy. Depreciation of real estate investment is calculated
29. 5 years now, so take the amount of depreciation that is needed and multiply by 29. 5 for calculating the purchase price you need to buy. (Note that depreciation is limited to $ 25,000 per year unless it meets the requirements of the IRS as a real estate professional. The tax authorities do not like to employees who take these types of deductions so many limits them, including the alternative minimum tax, to block taking excessive deductions).
Now, even if you are not able to buy deductible enough tax investments to your taxable income all the way to zero, any investment that meets the IRS rules for a deduction, and is an investment cash flow positive, it increases your network worth, reduce their taxes and create more money available to spend or invest.