If you can find ways to reduce your taxes, wouldn’t that be a nice way to trap a little extra wealth?
Probably. You’ve more than likely seen at least one of the infomercials about wealthy people who pay no taxes and travel around the world in luxury – and spend money at the drop of a hat.
In reality, some of these tales are not that far from the truth. There are people who work very little and reap the benefits of “obscure” tax laws and codes, which are designed to lessen taxes on things like capital gains and gifts.
How do they find them? Do they have a high priced attorney protecting all of their assets? Chances are no. In fact, a smart man once said, “1 in 10,000 attorneys are in the business of protecting business assets.”
The lesson here? Do your homework. There are many ways to take advantage of tax laws that don’t require an attorney to explain. In fact, it is possible that with the free advice readily available through the Internal Revenue Service, a business owner might only need an attorney for one percent of his business needs. (The same smart man said that, too.)
And that could be an even bigger savings!