I’m passing on to you an article from a friend of mine – Diane Kennedy. She is one of the most sought after tax strategists in the USA. You may remember her as one of Robert Kyosaki’s financial advisors, Loopholes Of the Rich: How the Rich Legally Make More Money and Pay Less Tax.
Here’s what Diane says about paying less tax:
“There are really just a few options when it comes to the type of taxpayer you may be:
2. Paper Investor
3. Real Estate Investor
4. Business Owner
Or some combination of all of them.
The higher the number above, the better the tax breaks.
An employee (1) who is a paper investor (2) will get preferential tax treatment on long-term capital gains (at least right now she will), but if there are losses, she will only get to take $3,000 of the loss per year against other income. There are a few advantages over just being an employee, but not a lot.
An employee (1) who is also a real estate investor (3) can likely shelter all of his real estate income by special real estate deductions. But in today’s world, he will have a hard time taking advantage of additional real estate tax losses against other income. There are some breaks, but they’re not as easy to get as they used to be. That’s why we spend so much talking about
An employee (1) who is also a business owner (4) will get the most tax breaks of all.
It’s really simple. If you want to pay less tax, start a business. It can be a small business. It can be part-time. It can all be online. You don’t need employees or inventory with a home-based business. Just start a business. It really can be that simple.
You still need to find your hidden business deductions, properly record them, and file your tax return with lowered audit flags. You can find help to do that. That’s what we do.
None of it is possible unless you do something though. And that often means having a business.”
CPA, Tax Strategist
Author and Speaker
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About Dave Lovett
Dave Lovett is one of the top international leaders in his company. He helps people learn both online and offline marketing. As a master communicator, he knows the significance of building strong relationships.
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