Want to make a grown man cry? Tell him the amount of his income tax bill (after he was originally thrilled by a great profitable year). For the year 2013 there is an unbelievable increased top rate — 39.6% for taxable income over $400,000 if single, $450,000 if married. Ouch!
For years I have been writing, "If you use the right tax strategies, work with the right professional, typically a lawyer, CPA and insurance consultant, you will create a comprehensive plan to conquer the estate tax.
"Tax-free" always has a nice ring to it. The higher the income tax rate the nicer the ring. The old top rate, at 35%, was bad enough. The current highest rate — 39.6% — has created a flurry of activity to legally avoid the tax.
Sometimes the Internal Revenue Code giveth more than it taketh. Section No. 41 of the Code — creates the Research and Development tax credit, “R & D Credit” for short — is designed to be your tax pal. But he’s a complicated fella.
Small business owners (SBOs) have many legitimate complaints these days: taxes, regulations, competition (from home and abroad), can’t find good people, etc. The list goes on and on. Always has. Always will.