Inc and Grow Rich

Tuesday, February 06, 2007

tax deductions for corporations

life insurance up to 50,000
safety and longevity award 1600
health insurance no limit
medical plans 100%
cafeteria plan 100%
dependent care 5000
educational assistance 5,250
seminars 100%
fringe buys - open
moving expenses 100%
physical fitness 100%
depreciation 24000
dividends only taxed on 80%

page 31 of inc. and grow rich


windfall tax shield
if you start a s corporation and you lose far less than you make, those losses can be applied to your personal w-2. when you start to make money then switch back to a c corporation.

page 35 inc and grow rich


auto tax deduction

if your vehicle is under 15000 or over 6000 pounds you recieve a tax break. if neither you can recieve an allotment of $.365

tax deduction for foreign travel

this can occurn if you meet 3 criteria
1. business purpose
2. one week or less
3. 75% of the time is spent in business


page 48 inc and grow rich


inventory is not exempted until you sell the good it goes towards making

ways to create passive income
by property and rent it to your own corporation

inc and grow rich page 74


how to avoid having a personal holding companyhave less than 60% of personal holding company income compared to your gross.

solution:

create another facet to the business. for example if stocks are paying 20,000 in dividends use something like real estate to generate roughly 14,000 additionally.

This will result in: 58.8% of income coming from the holding company



inc and grow rich page 85


if you'll incur major start up costs

when you are holding appreciated real estate. you will be taxed on capital gains

not a good idea to hold real estate in a c or s corporation

if you can't afford the expense of a c corporation


inc and grow rich page 88

Labels: Books, Finance