Every wonder why the wealthy get so many tax breaks? They know a little something more than most middle class folks. Many of the benefits and breaks used by million dollar tax payers, can also be applied to you or your business too. Here are a few you can take to the bank. Find out if you qualify for any of them.
1. Charitable Donations - Although the super rich benefit more from itemizing charitable donations, you can too. Any time you are able to slash a few percentage points from your tax rates, it's a good thing. Charitable donations can reduce your tax burden, but you must keep receipts. Find out how your donations can pay off for you.
2. When Someone Dies - The cost basis of investment assets when someone dies is increased to the current market value, leaving heirs with perhaps, a considerable amount of wealth. As capital gains disappear at death, heirs start with a "clean tax slate", making it attractive to either sell or reinvest the proceeds of a high performing portfolio.
3. Tax Deferrals on Your Retirement Plan - There is a limit to how much you can contribute to your 401k plan: $17,500 for employees under the age of 50 and $23,000 if you're older than 50. If you're self-employed, you can contribute significantly more - up to $51,000. And, if you have a side business, you may qualify to tax advantage of these nifty tax deferrals also.
The goal is to learn how the "big boys" keep more and give away less. Ask your tax professional how.
1. Charitable Donations - Although the super rich benefit more from itemizing charitable donations, you can too. Any time you are able to slash a few percentage points from your tax rates, it's a good thing. Charitable donations can reduce your tax burden, but you must keep receipts. Find out how your donations can pay off for you.
2. When Someone Dies - The cost basis of investment assets when someone dies is increased to the current market value, leaving heirs with perhaps, a considerable amount of wealth. As capital gains disappear at death, heirs start with a "clean tax slate", making it attractive to either sell or reinvest the proceeds of a high performing portfolio.
3. Tax Deferrals on Your Retirement Plan - There is a limit to how much you can contribute to your 401k plan: $17,500 for employees under the age of 50 and $23,000 if you're older than 50. If you're self-employed, you can contribute significantly more - up to $51,000. And, if you have a side business, you may qualify to tax advantage of these nifty tax deferrals also.
The goal is to learn how the "big boys" keep more and give away less. Ask your tax professional how.