b'YOUR TOOLKIT FOR BUILDING EXCELLENCEof 7%, you would pay $17,500 in federal and stateyou can deduct. With the right provisions in a C income tax on this $50,000. If, however, this $50,000corporation, you can deduct all medical insurance flowed to a Nevada C corporation, you may only paypremiums and all out-of-pocket medical expenses for the federal corporate tax rate of 15% (depending onco-pays, medications, first aid items, etc.the activity of the corporation), or $7,500, saving youStrategy #4 - Defer Income$10,000 in taxes.One way the IRS allows you to defer income is by Another application of this strategy is to spreadcontributing to a retirement plan. A retirement plan income to children in lower tax brackets. Instead ofthat works well for a business with no employees paying your childrens expenses directly with after- (you may have another business with employees) is tax dollars, hire your children and pay them for thea Simplified Employee Pension Individual Retirement work they do and have your children pay for their ownAccount (SEP IRA). The IRS allows you to contribute clothes, food, school, etc. from the money they earn.18.58% of net profit (maximum of $50,000 per You can deduct the wages as a business expense, andyear) to your SEP IRA for retirement. If you have your children will pay taxes at their lower tax bracket. $100,000 net profit in your business, you would be Strategy #3 - Maximize Deductions able to contribute up to 18.587%, or $18,587, to your There are thousands of items that are allowed asretirement account. You would get to deduct the business expenses. You want to make sure as manycontribution, saving you thousands in federal and expenses as possible are deducted as businessstate taxes. Thus, money goes into your SEP IRA tax-expenses. Expenses you may not be taking fullfree and grows tax-free. SEP IRA funds are taxed at advantage of as a business deduction are your medicalordinary income tax rates when qualified withdrawals expenses. Within a sole proprietorship or an Sare taken after 59.5 years of age. corporation, there is a limit on the medical expenses continued on page: 10INC.Because the Quality, the Design and the Bracing of your trusses should matter!CupolasWe have cupolas tot all needs.Barns, Houses, Garages, etc.Cupolas are made from PVC,Metal & Copper, and can beRigidplys Quality Trusses: painted or stained Strongest Design Loads & Less Truss Bracing to match! True, Straight & Fit your building Highest Lumber Quality in Trusses Crane Service with your delivery Registered Professional Engineers on staff717.866.6581www.rigidply.com 4 Township Drive 717.288.2630701 E. Linden Street, Richland PA 17087 Paradise, PA 17562 www.RoyalCrowne.com FRAME BUILDER - VOL5 1 / 9'