Tag Archives: savings
Limited Partnerships
Thursday, May 6, 2010 // 0 Comments // Tax Law
Because some companies, such as mining or oil drilling ventures, have large start-up costs and substantial risks of going under, the government allows investors to take tax deductions for initial funding of these companies. Investors receive immediate tax savings, as well as the potential long terms gains if the company prospers.
Read more & Talk about itCharitable donations
Thursday, May 6, 2010 // 0 Comments // Tax Law
Making charitable donations is a legitimate way to reduce your taxable income, and as a result reduce the overall taxes you’d have to pay.
Read more & Talk about itTax credit
Thursday, May 6, 2010 // 0 Comments // Tax Law
A tax credit is different than a tax deduction, which reduces taxable income. A credit, though, reduces your tax liability dollar-for-dollar. For example, if there were a tax credit of $1000 for using environmentally friendly construction materials, you would owe $1000 less in taxes that year.
Read more & Talk about itFinancing arrangements
Thursday, May 6, 2010 // 0 Comments // Tax Law
Related individuals often use complicated arrangements involving capital gains taxes to their advantage. Capital gains incur fewer taxes than other investment income, so one person might decide to pay inflated interest rates to a related person in order to reduce the overall taxable value of the investment. Then, when withdrawing the investment, a huge capital [...]
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