You have to have enough income and deductible expenditures to where your itemized deductions would be greater than the standard deduction of $24K, which will not be the case for the overwhelming majority of people
Even so. Doing well for themselves middle class American: tax evasion. The rich: well they’re just really smart business people and we should worship them!
Since the business finances are separate from the individuals/family they would have to pay the business with their personal funds, basically just paying taxes on all of their income twice.
Sometimes I give them silly advice. Not anything that would actually cause a problem, but just saying they need to find a certain stamp for the document to be valid or whatever.
The problem is that these people have no way to pay their back taxes except rusted out old trucks and dilapidated huts. Then our billionaire overlords get away with murder even more despite actually having the resources to pay for their shit since it's another is agent not working the big, difficult case.
That's simply not true. Most SovCits are not impoverished like that. If they were, they wouldn't spend thousands of dollars to find the cheat code out of paying child support.
Getting people to pay the taxes they owe as members of society is so tyrannical, isn't it? Clearly the non-tyrannical thing would be to let people just get away with being leeches.
You see US tax law is so complicated and I know so little about it that I don't know if this would work or not. I'm guessing somehow not unless you're rich.
Many business owners that I know do a lite version of this. Going out to eat? Discuss work for 5 minutes, then you can call it a business meeting and avoid paying taxes on the meal. Driving to and from work? Gas is a write off. Buying supplies for the office? Tax free, and maybe some of the supplies make it home with you.
That's fraud. The 5 minute business discussion can be written off, the remaining (let's say) 55 minutes cannot. Maybe it differs where you live, but where I do only travel between work destinations can be written off, so home to work doesn't count. Buying supplies for the office is a normal and valid expense, taking them home is theft and/or taxable
It's pretty common to form an LLC for your own, self run business even at one person. The business makes all the money, you pay your "employee" (you) a small amount and you save on taxes. Wife does this, her employee paycheck is like $25k/year.
If you ever have a friend who's not doing this, tell them to get a good accountant lol
Alongside settling yourself up as a limited company, you also make not only your taxes much simpler to do, but getting shit like indemnity insurance is easy as a company - but very challenging to do as a sole trader.
This is so dumb I can’t believe people aren’t getting audited left and right.
A single member LLC is simply you. All the income becomes your income. It doesn’t matter if you pay yourself through a draw or not. If you’re finding ways to get your write offs over the standard deduction without spending a bunch on actual business related expenses, you’re probably doing it wrong and committing tax evasion, plain and simple.
Hilariously, that does work for a while. The more unused credit you have, the better your credit. You would think having a half dozen credit cards hurts your credit, but nope. It's the opposite.
Opening them will hurt your credit for a short while, but moving debt from 0% interest card to 0% interest card occasionally will increase your credit. Leaving the old cards open and empty will only make youre credit rating go up. You do not, at all, have to use them to maintain them or increase your credit score.
Eventually you will have to pay, and it's entirely likely to be the worst time for you as passing the buck with debt tends to lead to building more debt, but it's possible. Credit is addictive, so they want you to have more of it.
My dad's friend did this for years, bought his kids a home and "rented" it to them. He was able to write off a lot of repairs/renovations and improvements, while they wrote off their rent money, which was just the mortgage payment. There were some other little things that could be done, but by and large it was very advantageous for the whole family (better mortgage rate too), and resulted in huge savings for them. Dad called it the "set your kids up for life" plan.
He wanted to do it for me and my sister but funny thing is you still need the money to buy the second house to get started...
There is also something you can (or could?) do in Canadian tax law where you could set up your mortgage a certain way and basically write off the interest you pay. It has a name but I stopped doing that research awhile ago and can't recall. It had some sketchy risks and was definitely "kinda" legal. I am not rich enough to afford a lawyer to make it legal for me....