Hiding Money and Reducing Taxable Income
Trusts – Setting up an International Asset Protection Trust can hide money not just from the IRS but also from creditors, divorce, and lawsuits. Offshore Accounts – These are often used in conjunction with Trusts.
To qualify for a tax deduction, business travel must be outside of your tax home’s general area and must have a specific business purpose planned before leaving home.
The IRS provides tax credits and deductions that can legally reduce your tax liability. Tax deductions reduce the amount of taxable income you claim, while tax credits directly decrease the tax you owe, potentially resulting in a refund.
Here are some tips to reduce your taxable income:
- Structure your business to minimize tax liability, such as forming a limited liability company (LLC) or a partnership.
- Set up your business in a tax-free zone.
Avoiding Tax on Invisible Income
Trusts and offshore accounts can be used to keep money away from the IRS.
However, it is challenging to hide money from tax authorities through legal methods. Legal tax credits and deductions are available to reduce the amount owed.
Money laundering is the illegal practice of disguising unlawful income as legitimate or trying to eliminate evidence of the income.
To avoid paying taxes on personal income, consider using LLCs and partnerships. Establishing a business in a tax-free zone can also provide tax advantages.