Millionaire Tax Strategies
What kind of taxes will I pay on my millions?
The estate tax is alive and well. There are also all sorts of taxes, the alternative minimum tax for people who are high earners. Taxes have to be considered at all times. Every investment you make should be thought about in terms of long term tax ramifications. The best investments from a tax standpoint are the ones that are long term and aren't going to involve trading in and out of them. You don't have to pay taxes if you don't sell, for the most part. Talk to your lawyer or accountant, and figure out what's best for you before you make the investment, and also before you sell.
How does forming a corporation help shelter me from taxes?
You can form a corporation for lots of reasons but taxes are one of them. If you have a partnership, you pay taxes on your income on that. If you have a corporation it's taxed at the corporate level and if you don't take the money out you can re-invest the money and build your assets longer term without paying a second set of taxes, personal income taxes.
What will happen if I do not pay taxes on my millions?
If you don't pay taxes ultimately the IRS will figure that out. And the problem with having a lot of money is that you attract more attention than somebody who doesn't. So you know, the best thing to do, you do, is to consult with tax professionals because; the argument is, rich people figure out ways, legal ways to avoid taxes all the time. And you know, people say that the rich end up paying less percentage wise in taxes than the poor often, and so, that's because they get good tax advice.
What are some tax secrets for millionaires?
The biggest tax secret for millionaires is to always think about the tax gratifications of what you're investing in. Make sure that you're not going to be in something to trigger tax events without you having planned for it. SO, you can make a lot of money by taking advantage of the tax benefits in real estate. You know if it's your own home you can deduct mortgage, if its an investment property you can depreciate this asset that is in fact appreciating while you're doing it. There are all kinds of tax strategies you can employ as an investor but you need to do that homework up front.
Will I consistently pay taxes as long as I have millions?
You are always going to pay taxes. I remember the secretary to this billionaire investor telling me one time that they'd just finished their taxes and when she hit print on her computer the lights in the office dimmed. The reality is that he probably had such a large tax return because he was paying as little as possible in taxes on all of the money that he had. So there's a lot of work that comes with these investments, but with the right strategy and planning you can figure out a way to minimize your taxes.
