Tax Elimination, Wealth Strategies and Your Children

Tax elimination is my favorite type of tax planning because it permanently reduces taxes. A lot of tax planning is focused on just temporarily reducing taxes, this means you pay less tax today but will pay more in the future. In other words, the tax is just being deferred. Tax deferral has its place in a tax strategy but first I like to look for ways to eliminate tax and create permanent tax savings.

- How to Create Wealth with Tax Elimination Strategies

-Even greater than the tax savings from eliminating taxes - which are substantial

- is the potential of what to do with those tax savings. Tax savings and wealth creation are two powerful tools that create amazing synergy when used together. Whenever I do wealth coaching with a client, one of the first steps is to create their tax strategy because the tax savings work to supercharge their wealth creation.

- More Tax Elimination Strategies

-Here is my C Corporation tax elimination tip in case you missed it:Use a C Corporation's initial tax brackets of 15% and 25%. If you are in an individual tax bracket of 25% or higher, then there could be an opportunity to eliminate taxes by shifting some of your income to a C Corporation.What makes this strategy work is the shifting of income to a taxpayer (your C Corporation) in a lower tax bracket than you. What other taxpayers do you have in your tax strategy that are in lower tax brackets?

Here is one: Your Children!- Get Your Children in the Game -Of course, the IRS has special tax rules for children age 18 or younger (and in some cases age 23 or younger) but understanding these rules can provide opportunity to legally reduce your taxes.These special rules tax unearned income received by your children at your tax rate. This means interest, dividends and other types of unearned income are taxed at the same rate as if you received them personally. In other words, no lower tax rate is available on this type of income.
However, these special tax rules do NOT apply to earned income. This means your children's earned income is taxed at your children's tax rates.What is so exciting about using your children's tax rates is that they can be even better than C Corporation tax rates!
Your children's tax rates start at 0%!
What Can Your Children Do For Your Business?
What tasks can your children do for your business?
Your answer to these questions will help you with your strategy to reduce your taxes.
Are you ready to use this tax elimination strategy to reduce your taxes?