Avoiding taxes legally?

If you reinvest profits in advertising then you don't have profits, do you? Why would you be taxed if you didn't have profits?

If your business strategy is to reinvest, good for you, you wont have to pay taxes, but what is the point? Seems to me the bad thing about taxes is you don't get to spend the money on yourself. If you avoid taxes but spend the money on the business, seems like you don't get to spend the money on yourself and aren't any better off...so why?

Here is how you do it. First, you need to be a professional (dr, lawyer, dentist, etc.). Form a professional corporation with yourself as the sole shareholder. Hire your family as employees and pay them a salary (which is really your profits from your business). Taxes are gone as you expense out all of your earnings. But, if you are ever audited, be sure to pick a non-extradition treaty country that is somewhere warm when you flee the country

I think you need to focus on cash transactions (they never happened) for your creative tax strategy.

Don't earn any money, and you can be free of the oppressive burden of taxation. Or move to a place like Somalia, and enjoy society in that libertarian paradise where you expect nothing from the government and can do whatever the hell you want (assuming you survive). But, if you want to live in a civilized society, help pay for it. If you really think taxes are so bad, you can console yourself that for all the bitching people do about them, they are lower than just about any other non-3rd world country.

You could always become Chairman of the House Ways and Means Committee. Then you wouldn't have to pay taxes!

ZOMBIE APOCALYPSE!! wrote:

You could always become Chairman of the House Ways and Means Committee. Then you wouldn't have to pay taxes!

If that doesn't work out, try becoming Treasury Secretary or the former Senator from South Dakota!

Or accept an ownership stake in a Texas MLB team in exchange for getting a stadium deal done, pay taxes on that stake as capital gains instead of the customary income, will save you huge $.

dd wrote:

Don't earn any money, and you can be free of the oppressive burden of taxation. Or move to a place like Somalia, and enjoy society in that libertarian paradise where you expect nothing from the government and can do whatever the hell you want (assuming you survive). But, if you want to live in a civilized society, help pay for it. If you really think taxes are so bad, you can console yourself that for all the bitching people do about them, they are lower than just about any other non-3rd world country.

Yeah, go to Somalia, where they have basically no property rights and people fear for their lives because justice is almost non-existent. Look at where their dedication to liberty has gotten them. Those silly libertarians need to understand that property rights and the rule of law are important.

Am I doing it right?

Precious Roy wrote:

Here is how you do it. First, you need to be a professional (dr, lawyer, dentist, etc.). Form a professional corporation with yourself as the sole shareholder.

Pray you don't get sued.

If one is violently opposed to paying taxes to the government, and he's going to have his money taken from him anyway, he can at least enjoy spending the money on his business if not on his house, car, boat, etc. If you're a doctor, you could use the money to provide free treatment for those who can't afford it. Either way the money is put to better use than if you give it to the government.

To some extent you can do this... but you are just delaying taxes more than anything. For example, at the end of the tax year you can pay ahead or buy anything you were planning on buying the next year anyway to minimize your taxes. But, you are really just pushing your tax obligation forward.

There might be a way to use bartering of services to avoid taxes, assuming you can get away more easily without reporting that sort of thing.

Precious Roy wrote:

Here is how you do it. First, you need to be a professional (dr, lawyer, dentist, etc.). Form a professional corporation with yourself as the sole shareholder. Hire your family as employees and pay them a salary (which is really your profits from your business). Taxes are gone as you expense out all of your earnings.

Assuming the family you're hiring is your wife and dependent children, you'll still owe the taxes. Paying them a salary is no different than paying yourself a salary.

How about paying yourself a small salary and a large dividend? Wouldn't you avoid most of the FICA tax that way?

What? Thats exactly what the IRS loves. The family is paying taxes on the income you are writing off including payroll taxes. Congress has more reason to flee the country than the taxpayer in that scenario.

Precious Roy wrote:

Here is how you do it. First, you need to be a professional (dr, lawyer, dentist, etc.). Form a professional corporation with yourself as the sole shareholder. Hire your family as employees and pay them a salary (which is really your profits from your business). Taxes are gone as you expense out all of your earnings. But, if you are ever audited, be sure to pick a non-extradition treaty country that is somewhere warm when you flee the country

pay no taxes wrote:

If one is violently opposed to paying taxes to the government, and he's going to have his money taken from him anyway, he can at least enjoy spending the money on his business if not on his house, car, boat, etc. If you're a doctor, you could use the money to provide free treatment for those who can't afford it. Either way the money is put to better use than if you give it to the government.

Okay, I get it now, you are "violently opposed" (cough Jared Loughner cough) to paying taxes...so yeah go ahead and spend that shit on business so that you don't pay taxes, BUT I think that if you go around spending it on your "house, car, boat, etc." you are going to have a hard time writing that off as a business expense.

But yeah, I HAVE AN IDEA if you are for real about not wanting to pay taxes. You can pay ME as your consultant, which would be a deductible business expense. It should actually be pretty iron-clad, I have several degrees and professional licenses, and I actually have some good business ideas and business sense. Also, I have kids that I would like to spend the money on. So, really, just figure out what amount of tax deduction you want for this current tax year and email me, I will get back to you with a consulting agreement and everything, then just send the check in the mail.

Sorry forgot to leave me email, but yeah, shoot me a quick note and we will make sure that you have zero tax liability.

I don't know about avoiding all taxes, but could you avoid a lot of them if you start your own business and operate it out of a house that you also live in?

Then if you own the house, couldn't part of your mortgage could be tax deductible as a business expense (rent for the business). You could buy a company car, company cell phones, pay for utilities on the house, internet, computers, cable TV, etc. and this would all be tax deductible. Who is going to check whether you are using the company car (of the company YOU own) to drive on personal business? Could this work?

I am licensed to practice law, although tax law is not my specialty. However, I vaguely recall something along the lines of the answer being no. The IRS is hip to all that stuff and sometimes you can deduct a portion of what you pay, but usually a portion, and you have to be able to prove that you used all that stuff primarily for business, so unless your wejo, when you try to deduct that internet bill and then they see you spent all the time on Letsrun.com, its not going to work. Don't do it. Just hire me as your consultant, a legitimate business expense, and I will actually consult with you, and you will not have to pay any taxes.

Silky Johnson wrote:

Yeah, go to Somalia, where they have basically no property rights and people fear for their lives because justice is almost non-existent. Look at where their dedication to liberty has gotten them. Those silly libertarians need to understand that property rights and the rule of law are important.

Am I doing it right?

I lean slightly to the Libertarian persuasion, and I think you are confusing libertarians with anarchists. Libertarians strongly believe in property rights and the rule of law. I am confused where you are getting your info from.