LIFE MANAGEMENT
www.mrca.org  —  Midwest Roofer
10
A
mericans pay more in taxes 
each year than they spend 
on food, clothing, and 
housing combined, so reducing 
your taxes to the legal minimum 
can greatly increase your ability to 
build wealth. Judge Learned Hand 
said, “Anyone may so arrange his affairs that his 
taxes shall be as low as possible; he is not bound to 
choose that pattern which will best pay the treasury; 
there is not even a patriotic duty to increase one’s 
taxes.” Supreme Court Justice Sutherland declared, 
“The legal right of a taxpayer to decrease his taxes 
or to altogether avoid them by means which the law 
permits cannot be doubted.” Here are five strategies 
to reduce your taxes to the legal minimum. 
Strategy #1 - Create Non-Taxable Income
The IRS allows you to rent out your home for up to 
fourteen days each year without having to declare 
the rent as income. When a business partner or client 
comes into town and stays at your home, you can 
charge your corporation rent for the room. You can 
also have a company party or trainings at your home 
and rent your home to your corporation for the day. 
The corporation deducts the rental expense, and you 
enjoy the rental income tax free.
Strategy #2 - Spread Income
If you are in a federal tax bracket higher than 15%, 
you may be able to reduce your taxes by setting up a 
Nevada C corporation and have up to $50,000 of your 
income flow to this corporation. Nevada has no state 
income tax and has a federal tax rate of 15% on the 
first $50,000 of taxable income. Your corporation can 
retain these earnings so you are not double taxed. If 
you had a personal marginal federal income tax rate 
of 28% and a state income tax rate of 7%, you would 
5 TAX 
REDUCTION 
STRATEGIES
By: Larry Oxenham, American Society for Asset Protection

View this content as a flipbook by clicking here.