Taxes, living expenses, inflation, death… that’s about as much as most people can predict about their future. Income taxes are an expense that for many families often goes unmanaged. It is typically the largest single expenditure they incur. In an effort to reduce and control taxes, we look to utilize a combination of strategies that include:
- Deferral - Deferring the receipt of income until such time as you are in a lower bracket
- Divert - Diverting income to individuals or entities with lower marginal tax brackets
- Convert - Converting income that would be taxed at ordinary income rates into either a tax free or tax deferred status or capital gain income
- Deduct - Deduct allowable expenses against earned income