Skip to comments.8 types of income the IRS can't touch
Posted on 03/16/2008 6:50:31 AM PDT by RKBA Democrat
Want to keep the tax man away from your money? It's easier than you think. There are lots of ways to increase your wealth without having a chunk gobbled up by the IRS.
It's not that the agency doesn't want your money. It's just that the tax law prohibits the IRS from touching it. And with a bit of planning, you can start to cut your current tax bill and put money in your pocket now.
Let's look at a few examples....
(Excerpt) Read more at articles.moneycentral.msn.com ...
bump,,,and ,,, marked
Complex, social micromanagement by the IRS does indeed leave some areas free from taxation ... if you or your employer are willing and able to contort to the micromanagement. It’s time for a flat tax or NRST!
“Its time for a flat tax or NRST!”
I would agree that a flat-tax is overdue. The problem is that the ability to reward and penalize via the tax code is not a power Congress is going to give up. The best you can do for now is to plan your own finances accordingly.
You are right on the money (pun intended)!
Neither will the American public readily allow politicians to change a tax system they hate but have grown accustomed to. And too, many Americans are just leary of playing "tax system musical chairs" when they already have a chair and politicians are the disc jockeys.
It seems like the home gain exclusion could be used to pay almost no income taxes. Say you and your spouse are employees of your own corporation that pays a minimum salary. After two years the corporation buys your house for up to $500,000 more than you paid for it, with seller financing. That $250k/year is tax free. Now the corporation sells it back to you for a $500k loss, so the corporation pays no taxes for having no profits. Rinse and repeat. Obviously you’d have to structure it so the IRS doesn’t think you’re just working the system but couldn’t the basic idea be made to work legally?
This thread is life altering. I think I will buy a foreclosure and sign up for a tax deductible online university, get formally educated in investing. Becoming a professional investor is one of the few jobs that can’t be outsourced. This is the only way to go in the new global economy.
Very nice to know!
Ya, it was a fun ride, but I think that merry-go-round has stopped. All kind of flippers are filing bankruptcy or letting the financier eat it.
I have been seeing people do exactly that. One of the reasons for the real estate boom and someone eventually will be holding the bag.
Bump for later.
“...that the IRS can’t touch”
With a stroke of the pen, the law of the land can be changed to fix that any moment the legislature is in session.
“With a stroke of the pen, the law of the land can be changed to fix that any moment the legislature is in session.”
Thus insuring an income for those who specialize in keeping their clients one step ahead of the game.