There are three main ways the federal tax law picks your pocket and becomes your legal partner: payroll taxes, the income tax and the estate tax. So, how can you fight back? Here are five areas in which you can save money from taxes.
This article was written while “burning the midnight oil” because about 95 percent of this column’s readers who call me have a significant portion of their wealth being pummeled by the Wall Street meltdown.
Politicians—the Washington gang that includes the House, Senate and president—are forever talking about raising or lowering the income tax rate. It’s election time, which means it’s really the silly season for floating “what’s best for the country” income tax rate ideas. Every once in a while, the same politicians will babble a bit as to how we should change, kill or modify the estate tax law.
Are your funds working for you as hard as you worked for them? If you are unhappy with your rate of return, then continue reading. Whether you are still active in the business world or retired, you are about to be delighted. The typical successful business owner is busy.
This article starts a new, every-four-year—before the presidential election—tradition for this column. Actually, this article (a big, long quote) first appeared in this column in October 2003. I was flooded with requests for copies, the last one—would you believe—about six months ago. Enjoy what follows. Then pass it on to your friends, and save copies to give to your kids and grandkids.
Recently, I read an article entitled “What Makes for Success?” by
Kemmons Wilson, the founder of Holiday Inn. He said, “It is great to
attain wealth, but money is really just one way—and hardly the best
way— to keep score.”
Interesting quote, huh? Most readers
of this column call me with tax problems b
Do you have a significant amount of money ($400,000 or more) in one or more qualified plans—an IRA, profit-sharing plan, 401(k) or others? This is a bittersweet subject. It is bitter if you don’t know how to legally avoid the tax-robbing laws that enrich the IRS, and it’s sweet if you implement one or more of the
The typical reader of this column, (we’ll call him Joe), who calls
me for estate planning help has two basic characteristics: (1) He has
been successful at accumulating wealth. This is almost always in a
business he started or that was created by a family elder and passed to
him. (2) He hates paying taxes.
Most closely held/family businesses are S corporations, which means they do not pay taxes. Almost all profitable small businesses should be an S corporation, as opposed to a tax-paying C corporation.
Raise your hand if your company has a qualified retirement plan (QRP). Your QRP can be a 401(k), profit-sharing plan, SEP-IRA, pension plan or any one of the many other QRPs.