Can i set up a personal tax shelter?

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Can i set up a personal tax shelter?

I know that corporations only get taxed on what they don't spend. So, could a single person who wants to start a business register a corporation under only his/her name and use it as a tax shelter in order to eliminate some taxes?

2006-08-30 10:28:51 · 2 answers · asked by Dre 2 in Business & Finance ➔ Taxes ➔ United States

2 answers

No. The best tax shelters for individuals are 401K plan, IRA, and buying a home. You are mistaken about how corporations are taxed.

2006-08-30 11:21:39 · answer #1 · answered by united9198 7 · 0⤊ 0⤋

The IRS loves to go after this type of 'tax shelter'. Its very easy to break the law this way and nearly (if not totally) impossible to do it legally.

2006-08-30 11:42:29 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋