How could you do this and still be in good standing with the IRS?
2007-11-09 09:42:13 · 12 answers · asked by Doesntstayinvegas.com 3 in Business & Finance ➔ Taxes ➔ United States
You can arrange your affairs in such a way that you won't have a tax liability. That means doing whatever you legally can to reduce your taxable income to zero.
For example, invest in a 401(k), traditional IRA, Flexible Spending Account, have medical insurance premiums deducted pre-tax, have lots of children, operate a business that has positive cash flow but with a net loss due to depreciation and other large non-cash deductions. It can be done but its not easy to do on a consistent basis.
2007-11-10 00:13:52 · answer #1 · answered by Steve 6 · 1⤊ 0⤋
1. Make less than the filing requirement amount for your filing status. If you're single, that's $8,750 for 2007. Good luck living on that.
2. Invest in tax-free municipal bonds and move to a state without an income tax.
3. Enlist in the military and volunteer for duty in Iraq. Your pay while in a war zone will be tax free.
2007-11-09 09:50:55 · answer #2 · answered by Bostonian In MO 7 · 4⤊ 1⤋
Get that information from one of the great casino-hotel moguls there in Las Vegas -- from one of the great hotel/realty investors there; also UNLV will give extensive insights on this, for their professors are quite apprised of this sort of thing: the like of this knowledge is why UNLV is one of the top regional universities in the country now... and has been for quite a few years.
Simply dare to request of an informational interview with any of these; and don't be concerned if they kiss you off first.
The moguls will think at first you are either a kook or a persistent and curiously interesting fellow, in which case they may bid you enter one of their exclusive offices for an interview.
Of course, they don't frame it as avoiding paying income tax legally but instead know that the tax laws are extremely sophisticated and require great skill to avail of exemptions and deductions of all sorts, legally, through certain loopholes that their accountants, portfolio managers and attorneys can engineer for them.
This is how they become billionaires and remain so.
It is no fluke that they can tear down an entire casino hotel and immediately begin erecting a new one even more lavish than the first...
They do this as part of the normal course of doing such high-brow business, much of which the federal commerce and securities commissions allow -- capitalism is underpinned by this. And in fact, if they did not do somehat in this fashion, they would not keep their billion-dollar coffers.
It is as is cynically said: "You have to pay to play."
2007-11-09 10:35:46 · answer #3 · answered by ? 6 · 0⤊ 4⤋
Not make enough money to have to file a return. For 2007, if you are single and not a dependent, that amount would be $8750 for the year if it's from a job, $399 if it's from self-employment.
2007-11-09 13:52:26 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
If you don't make any money, you are legally avoiding income tax.
2007-11-09 10:29:35 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Invest in non-taxable securities (ie. Municipal Bonds)
2007-11-09 09:48:42 · answer #6 · answered by Wayne Z 7 · 2⤊ 0⤋
Avoiding taxes is perfectly legal--talk to your tax professional.
EVADING taxes is illegal :)
2007-11-09 10:10:06 · answer #7 · answered by ptstrobl 3 · 1⤊ 0⤋
Move to Dubai
2007-11-09 09:46:24 · answer #8 · answered by Wally 6 · 1⤊ 2⤋
If there was a way, don't you think people would be doing it?
2007-11-09 09:48:16 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Don't make any money and you won't owe any taxes.
2007-11-09 09:46:02 · answer #10 · answered by deep5223 4 · 5⤊ 1⤋