Loopholes of the Rich
Does it seem like the rich get better tax breaks than you do? Well, that’s because they do! The loopholes of the rich are available to everyone. It’s just that the rich are able to hire expensive CPAs and tax attorneys to set up their businesses to take advantage of all of the tax loopholes.
Tax loopholes are government incentives to promote public policy. They aren’t something shady or shifty. In fact, the government wants you to take advantage of the legal tax loopholes that the law provides.
So where are these loopholes of the rich? You’ll find most tax loopholes in the two areas that best support a healthy national economy – business and real estate.
Businesses, and particularly small businesses, provide stimulus to the economy. A growing business employs people, hires consultants, invest in equipment, and just generally kick-starts a struggling economy.
Real estate tax loopholes are also an important part of public policy. We expect to see more real estate tax loopholes as the government tries to stabilize the economy in this regard. Before the boom and the resulting crash, the real estate tax loopholes were pretty straightforward. They are a part of the loopholes of the rich. Real estate investors provide housing for people who don’t currently own their own homes. The government has tried, and failed, to provide housing. They generally turn into decaying tenements where no one wants to live. Property values decline. Crime is rampant. Private real estate investors take better care of property.
The first edition of “Loopholes of the Rich” was published in 2001. It was updated in 2005 and a new update is due out 2011.
“Loopholes of the Rich” came about as a result of Diane Kennedy CPA’s years of experience with working with people who searched for ways to reduce taxes and increase their wealth. After talking to literally thousands of taxpayers from the United States and Canada she found one thing. Even though they may have different income, assets, education and circumstances in life, the stumbling blocks and questions were often very similar.
That is why Diane Kennedy CPA wrote “Loopholes of the Rich.” It is designed to create a common understanding as a foundation on which you can build.
Many people get stuck at the beginning. They exclaim, “I don’t know where to start!” They ask, “Where do I start?”
It begins with knowing what you want. After conversation, Diane Kennedy discovered that many people want to have a feeling of control and basic understanding of what they can do to reduce their taxes. They want to know that some day they will be able to have true financial freedom. And they want to know that that financial freedom is protected.
As you read “Loopholes of the Rich” you may find that some of your current ideas will be challenged. And, even more important, you may find that your current advisors will challenge the ideas presented. It doesn’t mean that your friends are wrong and it doesn’t mean that “Loopholes of the Rich” is wrong.
It does mean that we all understand things within our own framework and point of view. If something comes along that is not in that point of view, either we can reject it as incorrect or we can try to adjust our point of view to accept it. If you choose to accept different ideas, then you can experience growth and more depth of understanding. That is really what “Loopholes of the Rich” is about. It’s about different ideas.
Above all, the book is written in language that is easy to understand. Tax loophole strategies and tax law isn’t learned overnight. In fact, you can’t ever say that you know everything there is to know about that subject. That’s because the tax law is constantly changing. Every day new court cases are decided, there are new state tax laws, additional Treasury Regulations, and changes to the tax code as enacted by Congress.
The tax loopholes change over time, but one thing is certain. There will always be loopholes of the rich.