012415_2048_TheWealthCy1.png

The Wealth Cycle

Proverbs 14: 23 those who work hard make a profit, but those who only talk will be poor.   Everyone wants to productive and wants to build wealth. No one likes to be stagnant. One of the things that kills the human spirit, is that we look back to see that we have not really…

Capital Gains

Income you earn can be taxed as either ordinary income or capital gains. Ordinary income is income you earn from your business or job. Most people declare ordinary income on their taxes. The tax treatment of ordinary income is less favorable than capital gains. On the other hand when you sell a capital asset, that…

012015_1826_Bestwaytosa1.jpg

Best way to save on taxes – owning your own business

Owning your business is one of the best way to save on taxes. When you are a W-2 earner, you pay taxes on every dollar earned. As a business owner, you only pay taxes on your net profits. Your net profit is the difference between what you bring in and what you spend in building…

012015_0134_Hiringyourc1.jpg

Hiring your child

Hiring your children is a great way to shift income and reduce your overall tax burden. Your children must do real work for the pay they get. Your children are paid at their tax rate which is most likely lower than your tax rate. Children who earn wages are not subject to the kiddie tax…