Comments on: How To Pay 17% Tax On Net Income of $400,000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/ The Miscellaneous Ramblings of a Dot Com Mogul Wed, 01 Oct 2008 00:04:35 +0000 http://wordpress.org/?v=2.6.2 By: Sunnye http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-96142 Sunnye Sun, 19 Aug 2007 23:28:22 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-96142 Send it through a foundation that you control. Send it through a foundation that you control.

]]> By: Making The Money http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94636 Making The Money Sun, 12 Aug 2007 14:41:00 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94636 Haven't you ever thought of moving offshore though? You always got the problem of shipping money back onshore but if you buy yourself a holiday home and live there for x amount of months you can avoid a lot of those pitfalls. It's what a lot of the very wealthy/famous do. Haven’t you ever thought of moving offshore though? You always got the problem of shipping money back onshore but if you buy yourself a holiday home and live there for x amount of months you can avoid a lot of those pitfalls.

It’s what a lot of the very wealthy/famous do.

]]> By: pj http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94219 pj Thu, 09 Aug 2007 23:58:41 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94219 Try selling your company for a billion dollar in Belgium and see what's left after taxes... that's right, no capital gain taxes in Belgium. Belgium isn't a place to put your income, but it is the place to locate your share sales to. Try selling your company for a billion dollar in Belgium and see what’s left after taxes… that’s right, no capital gain taxes in Belgium.

Belgium isn’t a place to put your income, but it is the place to locate your share sales to.

]]> By: OneYearGoal.com - $100,000 in one year http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94103 OneYearGoal.com - $100,000 in one year Thu, 09 Aug 2007 16:44:30 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94103 How do you pull cash out without getting double taxed? How do you pull cash out without getting double taxed?

]]> By: Tarik http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94092 Tarik Thu, 09 Aug 2007 16:28:59 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94092 Wow, great stuff John. And perfect timing as well. I have a meeting with my tax attorney this afternoon to work out the final details of my corporation. Like you said, "making money is half the battle; the rich work within the laws and obey them; the middle class and poor get upset over the laws instead of learning about them." These tax posts are some of your most valuable entries in my opinion. Way more influential over the long run than some Google linking scheme. Thanks. Wow, great stuff John. And perfect timing as well.

I have a meeting with my tax attorney this afternoon to work out the final details of my corporation.

Like you said, “making money is half the battle; the rich work within the laws and obey them; the middle class and poor get upset over the laws instead of learning about them.”

These tax posts are some of your most valuable entries in my opinion. Way more influential over the long run than some Google linking scheme.

Thanks.

]]> By: John Chow http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94072 John Chow Thu, 09 Aug 2007 16:07:12 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94072 If you pay yourself a salary, the company can deduct that as a business expense. So it's not a double tax. It's a shifting of the tax from business to personal. If you pay yourself a salary, the company can deduct that as a business expense. So it’s not a double tax. It’s a shifting of the tax from business to personal.

]]> By: John Chow http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94071 John Chow Thu, 09 Aug 2007 16:06:09 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94071 And I agree with you. However, you have to remember that you need to show an income that justifies your lifestyle. If you're living in a $10 million house in West Vancouver and your reported income is $30,000, someone at CRA is going to come knocking on your door. And I agree with you. However, you have to remember that you need to show an income that justifies your lifestyle. If you’re living in a $10 million house in West Vancouver and your reported income is $30,000, someone at CRA is going to come knocking on your door.

]]> By: John Chow http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94064 John Chow Thu, 09 Aug 2007 15:58:09 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94064 I wrote a basic post about that back in March. You can read it here: http://www.johnchow.com/blog-income-and-taxes/ I wrote a basic post about that back in March. You can read it here: http://www.johnchow.com/blog-income-and-taxes/

]]> By: John Chow http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94062 John Chow Thu, 09 Aug 2007 15:55:48 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94062 The off-shore company will pay no tax. The problem is getting the money back into the home company. CRA and IRS is not dumb. If you are living a lifestyle that is out of wrack with your reported income, it triggers red flags. The #2 way the CRA find people to audit is by looking for people who live in expensive areas with low reported income. The off-shore company will pay no tax. The problem is getting the money back into the home company. CRA and IRS is not dumb. If you are living a lifestyle that is out of wrack with your reported income, it triggers red flags.

The #2 way the CRA find people to audit is by looking for people who live in expensive areas with low reported income.

]]> By: John Chow http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94052 John Chow Thu, 09 Aug 2007 15:52:27 +0000 http://www.johnchow.com/how-to-pay-17-on-net-income-of-400000/#comment-94052 It's been mention in past posts before. I'm also qualify to be a certified financial planner but didn't brother to take the test. It’s been mention in past posts before. I’m also qualify to be a certified financial planner but didn’t brother to take the test.

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