Introduction Americans are paying more in taxes than ever before. No matter where we turn, we are confronted by taxes, from the first time we buy something as a youngster to even after we die. Many thousands of pages have been written regarding taxes, tax laws and how to reduce income tax liability. The bottom line is that if you, the Corporation, or partnership is successful and making money, income taxes will have to be paid. However, having knowledge of the tax laws and how they can be used in your favor can drastically reduce the amount of taxes you pay. The key is to stay informed about the laws and knowing tax strategies and how to apply these strategies. First, it's important to realize that just because something is published, it is not necessarily valid or appropriate for your situation. There are general tax strategies that could apply to any taxpayer, as well as strategies designed for specialized groups of taxpayers, including self-employed people, real estate investors, business owners, and executives.
Each person's situation is different, and individuals should work with their tax advisers to identify strategies that work best for them.
This paper focuses on some of the tax strategies that can be used for cutting individual income tax bills based on the new tax laws. It provides a brief summary of the new tax laws and major provisions for considering how to use them for planning the next year's tax strategy.
An Overview of the new Tax Laws Rule of the Game--- Tax Laws Congress writes the tax laws, which become part of the Internal Revenue Code (IRC) or tax code for short. The tax code is amended every year. Congress has given the IRS the power to interpret the tax code through a series of IRS...