Tax Elimination, Wealth Strategies and Your Children
Author: Tom Wheelwright

Tax elimination is my favorite type of tax planning because
it permanently reduces taxes. A lot of tax planning is
focused on just temporarily reducing taxes, this means you
pay less tax today but will pay more in the future. In
other words, the tax is just being deferred. Tax deferral
has its place in a tax strategy but first I like to look
for ways to eliminate tax and create permanent tax savings.

- How to Create Wealth with Tax Elimination Strategies -

Even greater than the tax savings from eliminating taxes -
which are substantial - is the potential of what to do with
those tax savings. Tax savings and wealth creation are two
powerful tools that create amazing synergy when used
together. Whenever I do wealth coaching with a client, one
of the first steps is to create their tax strategy because
the tax savings work to supercharge their wealth creation.

- More Tax Elimination Strategies -

Here is my C Corporation tax elimination tip in case you
missed it:

Use a C Corporation's initial tax brackets of 15% and 25%.
If you are in an individual tax bracket of 25% or higher,
then there could be an opportunity to eliminate taxes by
shifting some of your income to a C Corporation.

What makes this strategy work is the shifting of income to
a taxpayer (your C Corporation) in a lower tax bracket than
you. What other taxpayers do you have in your tax strategy
that are in lower tax brackets?

Here is one: Your Children!

- Get Your Children in the Game -

Of course, the IRS has special tax rules for children age
18 or younger (and in some cases age 23 or younger) but
understanding these rules can provide opportunity to
legally reduce your taxes.

These special rules tax unearned income received by your
children at your tax rate. This means interest, dividends
and other types of unearned income are taxed at the same
rate as if you received them personally. In other words,
no lower tax rate is available on this type of income.

However, these special tax rules do NOT apply to earned
income. This means your children's earned income is taxed
at your children's tax rates.

What is so exciting about using your children's tax rates
is that they can be even better than C Corporation tax
rates! Your children's tax rates start at 0%!

What Can Your Children Do For Your Business?

What tasks can your children do for your business?

Your answer to these questions will help you with your
strategy to reduce your taxes.

Are you ready to use this tax elimination strategy to
reduce your taxes?


About the Author:

Tom Wheelwright is not only the founder and CEO of
Provision, but he is the creative force behind Provision
Wealth Strategists. In addition to his management
responsibilities, Tom likes to coach clients on wealth,
business, and tax strategies. Along with his frequent
seminars on these strategies, Tom is an adjunct professor
in the Masters of Tax program at Arizona State University.
For more information please visit
http://www.provisionwealth.com