Provocative Tax Planning

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Great Tax Savings with a Related Corporation

  Broadcast in Business

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(347) 826-9147

Great Tax Savings are not about deduction.   The Wealthy know how to manipulate the tax law in ways that the Congressional loophole closers never envisioned.  

And why not.  The one million pages of tax laws has created thousands of innovative tax plans.  Each tax reform just creates more opportunity to create wealth via the tax laws.  

In this episode,  Brian Dooley, CPA, MBT provides a few of the tried and true trade secrets that have been used for more than half a century.     

        When a taxpayer wants to sell his or her principal residence, and that taxpayer is also the sole owner of a C or S corporation, selling the  residence to the corporation offer three  benefits.   

     (1) Cash may be taken out of the corporation tax-free instead of as  - dividends. This is because the gain on the sale of a principal   residence is excluded from income in an amount not to exceed    $250,000 and $500,000 for a joint return.

      (2) Assuming the corporation turns around and rents the residence,   the corporation has a "cost basis" equal to the appreciated value of  the house and, thus, larger   depreciation expense than the taxpayer   would have had if he or she held on to the house and rented it.

      If the  corporation is an S corporation, larger depreciation  expenses are deducted by  the shareholder allowing  them to shelter rental income.      

And there is more... listen to learn or call Brian Dooley at 949-939-3414.

Tags:
tax planning
RELATED PARTY
CONTROLLED GROUP
CORPORATE TAX
BRIAN DOOLEY
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archived

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