Win £1000 FREE This Week. I’m Feeling Lucky

Free Visitors and Free Traffic to any Website Click Here Now
 

Home
Offline Business Ideas
Internet Opportunities
Internet Business
Other People’s Money
Stocks and Shares
Casino and Gambling
Millionaire Motivation
Books: Making Money
Franchises
Top Entrepreneurs
Tax and Techniques
Real Estate
Networking. MLM
Mail Order
Website Promotion
More Ideas
Messages
Disclaimer
Contact us
Links
Ugo Okonkwo

BusinessOMatic.com
 Home and Office Based Business Opportunity

Find out about a unique home-based business that I have been building since 2002 here

Special Today Only: Post your FREE ad on Businessomatic.com Here

continued from here

The Inside Secrets to Personal Tax Shelters 2

From another angle, the trust could buy equipment for lease to the business and get deductions for interest and other expenses involved. Investment tax credit can also sometimes be claimed in non-net-lease situations.

Making interest-free loans is another method of sheltering one's income. Say you lend several thousand dollars to a son or daughter who invests the money.  The borrower gets the income, and you eventually get your money back.  If you're in the 50% tax bracket and the borrower is in the 25% bracket, your tax savings can be considerable.

Investing in Municipal Bonds are very definitely a means of sheltering your income. Income from these bonds is tax free, but it's generally lower than from other types of investments.  Municipal Bonds pay at a fixed rate of interest.  Relative to other kinds of investments you could make, you'll lose on Municipals if interest rates go up, and win only if the interest rates on other investments go down.

By now, everyone knows about IRA's and Keogh plans for the self-employed.  You put money into a personal retirement trust and pay no taxes on it until you actually withdraw from it. Some companies give their employees a chance to set up their own retirement accounts, thereby deferring part of their gross incomes until after they retire.

However, deferring income until after one retires is no longer as attractive as it used to be, particularly if your tax rate is not expected to change after retirement.  If you don't anticipate a lower tax bracket after you retire, it's generally better to take all your income now and invest it in high yield growth funds that will mean more money for you in your retirement years.

There are innumerable ways and methods to shelter your gross income from the tax collectors, all of them legal. The important thing is to check them out with your tax preparer and decide which would be best for you.

Find out about a unique home-based business that I have been building since 2002 here