Are you paying too much to the IRS?
Unbelievable as it may sound, new IRS rules now offer owners and managers of closely held businesses tax savings so large they may seem incredible. So great is the surprise tax windfall, in fact, that your tax savings could actually equal your main source of income.
Indeed, it’s not at all unusual for owners/managers to double or triple their real income through the tax breaks now available!
It’s official: Small business owners and managers can now use dozens of new tax-cutting tools that can double their net personal income in the coming tax year.
This is no accident. Government officials who are advocates for small business intend this to happen. And you have every right to take the money without apology.
The result can be to double your real income next year – at least.
The tax savings extended to you are the government’s way of encouraging “the entrepreneurial spirit” in the United States. Tax breaks for owners and managers of closely held businesses are now at “center stage” in federal plans to boost the economy.
To celebrate this good news for small businesses, we've gathered all the best tax strategies into one concise, plain-English guide – Surprise Tax Windfall.
By staking your claim now, without delay, you can take your share of the tax-saving windfall – starting this year.
To see exactly how you’ll start the money flowing your way, take a look at Surprise Tax Windfall’s table of contents:
1. Begin with the best tax-free devices
Keep good records
Make taxes disappear when you sell your house
Fund retirement plans to the max
Take advantage of bigger retirement account contribution limits
Disinherit Uncle Sam
Find the tax shelters that still work
Make the most of tax-free investment income
Play tax-bracket arbitrage
Build wealth with this family device
Light a fire under your accountant
2. Take every deduction to which you're entitled
Deduct your hobby expenses
How to write off your home computer
How a $51 gift can save you hundreds in taxes
Pay less than half the support, claim the deduction anyway
Deduct medical expenses
Don’t be afraid to take home-office deductions
Turn a nondeductible allowance into deductible wages
Get a triple tax break by hiring your kids
How to keep your business ‘all in the family’
Tax-free cars for your whole family
Big deductions for ‘heavy’ sport utility vehicles, pickups, vans
3. Strategies for business owners
Choosing the best form of business organization
Build wealth by not incorporating
Cut your taxes with an S corporation
Use an S corporation to cut Social Security and Medicare taxes
Increase liquidity and save taxes with a buy-sell agreement
Make tax-wise loans to your business
Lease appreciating assets to your company
Sell your business via a tax-free ‘reorg’
Sell out tax-free to an ESOP
Tax-free education for you and your family
Big deductions for certain business donations
Savor extra helpings of tax breaks on employee meals
Tap into major tax savings from first-year depreciation breaks
4. Build up tax-sheltered wealth with retirement plans
Here’s a simple way to double retirement accumulation
How to take money out of qualified plans
SIMPLE retirement plans
Take advantage of improved IRA rules
Comparing Roth and regular IRAs
Max out tax savings with defined contribution plan
And that’s just the beginning of the wealth-growing strategies …
As your financial picture brightens, you’ll be ready to take advantage of:
5. Tax-wise estate planning
Live long and prosper from changes to the estate tax exemption
When you gain by giving
Avoid or defer taxes with the unlimited marital deduction
Use a QTIP to keep control
Simple tricks of the trade for gifts
Avoid estate tax on life insurance coverage
Use second-to-die life insurance to cover your estate taxes
The dangers of joint ownership
Reduce estate taxes, but keep control of your assets
Set up a qualified personal residence trust
6. Tax-wise investing
Take advantage of 15% rate on dividends
Some dividends not eligible for rate cut
Updated strategies for dividend-paying assets
Pay only 15% on long-term capital gains
Some gains don’t qualify for 15% rate
Updated strategies for capital gain assets
Place optimal assets in retirement and taxable accounts
Variable annuities are now damaged goods
Personal residences still look good
Coverdell Education Savings Accounts
Build up college savings tax-free with Section 529 plans
Custodial accounts for college versus 529 plans
Give securities to your child to finance college
Write yourself a check each December
Cope with the new 3.8% Medicare surtax
7. Getting real value from real estate
Should you own or rent your business premises?
How a ‘private arrangement’ can slash your taxes
Shelter up to $25,000 per year
IRS rules ensure tax-deferred real estate exchanges
8. Get more mileage from T&E deductions
Your company can pay for your travel and entertainment
Maximize write-offs for mixing business with pleasure
Wrap personal days around business travel (or vice versa)
Have Uncle Sam foot the bill with Saturday night stay-over
Travel expenses for spouse or companion
Who can be entertained—and written off
When entertainment is deductible
Back up your travel and entertainment deductions
9. Fine points
Charitable remainder trusts are supershelters
Beat the IRS in divorce situations
A clean buy-sell can avert a showdown with the IRS
Hire independent contractors, not employees
Drill for deep shelter in oil and gas
Increase your retirement shelter with a defined-benefit plan
Raise your sights to get richer
Make your deductions stand up to IRS scrutiny
How to use a Roth IRA for estate planning
Think of how you’ll use the extra money in the months and years to come … a more comfortable home in a more secure neighborhood … a vehicle that you drive just because you like the way it handles … imagine saying “yes” to more fun things in life because you know you’re financially secure!
Within the current economic uncertainty lies real opportunity – the time is now to leverage the unique relationship between personal and business taxes. Order your copy of Surprise Tax Windfall today!
Phillip A. Ash, CPA
President and Publisher
P.S. Remember, there's absolutely no risk. If you don't quickly see how to shift money from the IRS's pocket to your own, we'll refund your entire purchase price – no questions asked – and you'll have no further obligation.
P.P.S. Don't keep writing those big checks to the IRS! Small-business advocates in Washington worked hard to get you – America’s entrepreneurs – the kind of financial rewards the big guys enjoy. So start building your bank accounts now ... with your personal copy of Surprise Tax Windfall!