How can you legally escape taxes?
Escaping Taxes: Fact or Fiction? Escaping taxes is a rather taboo subject, and not one that is openly discussed. Just ask Willie Nelson or Wesley Snipes. Chances are you won't hear people secretly whispering about it while riding on the subway and it certainly won't be preached to you in church. So you're left wondering: "Can you legally escape taxes?" And the answer is, "Not really."If you were to attempt it, your best bet would be not to work. If you earn less than the minimum ($3,300) you don't have to file. Note that the $3,300 figure is for money earned as an employee and listed on your W2, not self-employment. If you get married and one of you works, then file separately and only that person will have to file. That will avoid the majority of tax (i.e. income tax). You could also move to a state that doesn't have sales tax. And forgo owning a home.But seriously, taxes pay the salaries of your cities public workers and the folks that bravely defend our nation (i.e. armed forces). Taxes are what we pay to be part of a civilized society. Consider them your dues. Yes, it hurts to give up that hard earned money, but if you have a full-time job you likely have benefits included and those affect your pay even though you don't see them. There are tons of ways to cut down your taxes, but don't drive yourself crazy trying to get out of them all together. Fact is, look at the statistics and you'll see A LARGE percentage of people actually don't pay tax, but get $$ back (through credit features like the EIC), from the Feds. Hence, for many with low incomes it PAYS to file! And even if you avoid income taxes you will still be paying taxes on many purchases as well as other taxes such as real estate, etc. Tax Protestor Arguments You may find a number of different suggestions on how you can accomplish paying no tax. Things like "opting out of...", filing 0 based returns, claiming wages aren't income, taxes are voluntary, Federal tax is only applicable to residents of D.C., etc., etc. These are certainly attractive arguments to escape tax liability/responsibility. These are frivolous, protestor-type arguments and have all been found not only baseless, but have been found so in all courts and proceeding for so many reasons, that there are now even special penalties for anyone that tries to, apparently without bothering to investigate the positions, use them.Below is a link to an agreeably IRS site, that lists many of these arguments and brief reasons why they fail. If you are not comfortable relying on the IRS for advice, do your own research and look at the independent court cases, etc. Maybe even consider that many, many intelligent people, who make substantial incomes, and have devoted their working lives and interest to tax/law and reducing their own or others taxes, wouldn't and don't suggest these arguments. (Generally, someone trying to get $29.95 for their "amazing discovery" that everyone wants to keep secret, or such, is).Finally... wouldn't you be much happier to go down in history as the US citizen that paid the MOST taxes ever! (Lots of people make nothing of their lives (and in financial value), while taking more of everything than they produce...that seems to be easy).The whole subject of taxes is a very legitimate discussion because it involves the whole community and most importantly your money! You worked for it!! Therefore you should at least be aware of what you are getting out of what's being spent. And of course, you will find, this is the crux of the issue. Is the money being spent well? Is it all accounted for? Can the tax issue be reformed to better suit the needs of the general public?So, basically, it's obvious there will much conflict over such an intimate subject. Not only is a percentage of your labor being spent for you, it's being spent in the name of the community or nation as a whole. This may benefit some while not benefiting others. It is a very moral issue. This is why those that favor taxes, especially high taxes, claim it is a citizen's duty to pay taxes. [Remember too that someone who agrees with paying taxes, especially those that want to pay lots of taxes, are generally not going to encourage you to pay less or no taxes. It is against 'their' interest. Just as paying taxes may not be in 'your' interest.]Most importantly, be involved. If you want taxes have a good strong stance on your position. Set a good example and act on your idea of what needs to happen in society and how to accomplish these goals. It's not just the duty of a citizen to adhere to the laws but to uphold and/or repeal them.
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It is impossible to escape taxes because everyone MUST file taxes. Whether you pay out a lot of your own money is a different story. Taxes cannot be avoided, however depending… on where you are in the income brackets you may not have to pay a ton of cash to the IRS. Ben Franklin said two things are guarantees in life, death and taxes.. Another answer:. Ah, at last! A question on WikiAnswers that is WORTHY of being answered!. First of all, nothing that is man created is "impossible" to avoid. This is a "polite fiction" that is indulged in by those who lack the interest to find solutions to their "problems". As far as the misinformation given about "everyone MUST file taxes", well, I can only say that the IRS has very specific guidelines about WHO MAY LEGALLY AVOID FILING, and the list is far from trivial! Look it up for yourself and decide what the truth of the matter is!. Many presidents have availed themselves of some of the more egregious tax "loopholes" that are designed specifically for those who created the laws. It is NOT up to congress to start a huge educational campaign to show every Tom, Dick and Harry how to avoid paying taxes, otherwise, said congressperson might have to start chipping in and carrying some of the load THEMSELVES, after all.... So, the FIRST thing you can do to "legally avoid taxes", is to move to a state that doesn't have STATE INCOME tax. A couple come to mind, Nevada (where the gambling casinos pay the income tax for the rest of the citizens, so that they don't have to), and Texas, where EVERY president in recent memory resides for AT LEAST ONE DAY A YEAR in order to qualify as a "resident". Texans don't pay state income tax. If you were as smart as a president, you'd copy what THEY do, and set yourself up a sweet deal and LIVE IN TEXAS for one day a year. Who knows, perhaps you wouldn't even have to suffer THAT long, check out the rules regarding "residency" for yourself!. Next, you want to whack that pesky Federal Income Tax. Who doesn't have to pay any Federal Income Tax? Well, if you work for a job, and make less than $600 per month, you won't have to pay any Federal Income Tax. Why would you want to do a thing like this? Well, how would I know? I am just pointing out what you would need to do. If you have a genius mind, you might find a way to accomplish this and the next few things, without my having to POINT IT OUT TO YOU in black and white.. There is a nifty thing called a Roth IRA, that is America's 2nd best kept secret way of avoiding paying income tax LEGALLY! Yep! If you pay income taxes on some income, and then stash some of it in a Roth IRA account, you 1: Don't pay any income taxes on the growth of the investments you make in that account. This is exactly the same treatment as the normal IRA, so it is no big deal, all by itself, but it IS pretty important! 2: You don't pay any income taxes on the withdrawals that you make from this account, as long as it is the money that you put into the account in the first place. That is, you can withdraw your contributions (since you ALREADY paid income tax on them in the first place), without any penalty, interest OR tax, and you may do so at any time that you need or want to! This would be a foolish thing to do, however, but it IS possible! 3: When you reach retirement age (59 1/2), and the account has been open for 5 years, you can WITHDRAW any amount of money (or no amount of money, if you want it all to keep growing, for as long as you are alive, unlike the standard IRA account), AND LEGALLY PAY NO INCOME TAXES! That's right, folks! If you can figure out a way to make a million dollars in your Roth IRA account, you won't have to pay uncle sugar a single, rotten nickel in Income Taxes Legally! Get yourself a "self-directed Roth IRA" so that you can invest in anything legally allowable by the IRS (real estate, notes, the usual junk from a brokerage house or bank, but stick with the things that actually pay you something, and that YOU have control over!), which does NOT include "collectibles", such as Persian rugs, stamps and coins (except for bullion type coins with little numismatic value, think pre '65 USA coins, marked 1964 and earlier and which contained 90% silver), and you can't invest in anything you ever owned or lived in, or that your family ever owned, (with the notable exception of things owned by your brothers and sisters, apparently the IRS thinks that siblings will rat on each other, and they specifically PERMIT you to do this), so always buy stuff from 3rd party strangers, and keep your tax exempt status on your account safe. You DON'T want to lose this over a trifle, such as a "sweetheart deal" your brother will give you on his condo in Florida!. Thus, if you have the slightest bit of imagination whatsoever, you now have a 'TAX FREE INVESTMENT ACCOUNT"!. Next, there is a lovely provision in the IRS tax code that allows you to receive something called "gifts". You may receive up to $10,000 per person (per year), from ANYBODY and neither you, nor the giver, have to pay any income tax on that money. I don't know about you, but if all you folks reading this decide to follow some advice and all send me a gift of 10 cents each, I'll be rich enough to quit working, AND neither you nor I will have to pay any more Federal income taxes! Leave a note on my message board if you want more details on this or other subjects too long to go into here.. Next, we have to deal with the issue of sales taxes. These are commonly escaped, (but not legally), by purchasing things on the Internet. There are currently no laws requiring people in one state to collect sales tax from people OUT OF STATE. So, buy all your goodies from people OUT OF YOUR STATE, and you won't have to pay any sales tax. Now, some places, such as California, actually have a law somewhere that says that you have to declare all purchases made "out of state" and pay your fair share of the sales taxes on them. I've yet to see anybody INCLUDING THE PEOPLE WHO WORK FOR THE BOARD OF EQUALIZATION follow this rule, and if THEY can ignore it, why should YOU be the first one to set a good example?. Oregon doesn't charge sales tax. People over the border from Oregon often go for a "holiday" to their friendly neighboring state and purchase things for far less than they can in their "home" state. Is this legal? Of course, there is NO law against traveling and you can hardly be expected to eat nothing but air! Again, your own conscious must dictate whether or not you think paying 10% sales tax to your state government is "the right thing to do" when they can't even balance the budget on time, and waste all the money you've given them to date on stupid mistakes and frivolous social experiments!. Now, the issue of property taxes is a bit more difficult, and I don't have all the answers here by a mile. It seems to me that various forms of property are exempt from taxation at the county level if they are owned by a church, and are USED FOR CHURCH SERVICES. So, if you have an intense aversion to paying property taxes, you can go through the work of starting up your own church, (land of religious freedom, remember?), and create your own form of worship worthy of your creator, and if you are so poor that in the beginning that you have to hold worship services in each other's homes (home worship groups are pretty common, actually), you might want to check out what percentage of use qualifies your residence for a property tax exemption in your local county. Don't take the first answer as gospel, as each tax official will be pained to the extreme to think that they are cutting their own throat (and pocketbook) by answering your questions truthfully, and completely, and accurately! Far better to say some negative sounding thing that isn't QUITE an open lie, and have you go away and forget all about LEGALLY AVOIDING PAYING TAXES!. Now, as to the MORALITY and PATRIOTIC DUTY of a citizen when LEGALLY AVOIDING PAYING TAXES, allow me to conclude with a quote from a famous judge, who was quite respected in his time. It is HIS opinion (and he was HIRED SPECIFICALLY to give his opinion on law all the time), that:. The classic description of tax avoidance was written by Judge Learned Hand in Helvering v. Gregory , 69 F. 2d 809, 810 (2 nd Cir, 1934), aff'd 293 U.S. 465 (1935).. [A] transaction, otherwise within an exception of the tax law, does not lose its immunity, because it is actuated by a desire to avoid, or, if one choose, to evade, taxation. Any one 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; here is not even a patriotic duty to increase one's taxes..
YOU CANT WHY? cause our governments gay
maybe by leaving the united kingdom and live other country which dont have a collection of tax.
if you're like berlusconi, you not only can escape taxes , but do almost what you want, because you make the law. easy.
you speaka da english?
Generally this is done by creating a Living Trust or other Trust entity to pass your assets through to a beneficiary.
Do not work.
by claiming your mentally ill.. Even by claiming that you are ill, will not allow you to escape prosecution. You may have to spend the rest of your life in a facility for men…tally impaired. It may not be prison, but could be worse depending.
Many plans allow employees to take http://www.answers.com/topic/loan from their 401(k) to be repaid with after-tax funds at pre-defined http://www.answers.com/topic/interes…t . The interest proceeds then become part of the 401(k) balance. The loan itself is not taxable income nor subject to the 10% penalty as long as it is paid back in accordance with section 72(p) of the Internal Revenue Code. This section requires, among other things, that the loan be for a term no longer than 5 years (except for the purchase of a primary residence), that a "reasonable" rate of interest be charged, and that substantially equal payments (with payments made at least every calendar quarter) be made over the life of the loan. Employers, of course, have the option to make their plan's loan http://www.answers.com/topic/provisioning-disambiguation more restrictive. When an employee does not make payments in accordance with the plan or IRS regulations, the outstanding loan balance will be declared in "default". A defaulted loan, and possibly accrued interest on the loan balance, becomes a taxable distribution to the employee in the year of default with all the same tax penalties and implications of a withdrawal.. Loans are paid back by post-tax monies, so there are substantial tax implications in taking a loan from pre-tax monies.. Virtually all employers impose severe restrictions on withdrawals while a person remains in service with the company and is under age 59Â½. Any withdrawal that is permitted before age 59Â½ is subject to an http://www.answers.com/topic/excise-1 equal to ten percent of the amount distributed, including withdrawals to pay expenses due to a hardship, except to the extent the distribution does not exceed the amount allowable as a deduction under Internal Revenue Code section 213 to the employee for amounts paid during the taxable year for medical care (determined without regard to whether the employee itemizes deductions for such taxable year). The tax code legally defines hardship as:. Purchase of a primary residence (specifically excludes mortgage payments) . To avoid foreclosure of, or eviction from, primary residence . Payment of post-secondary education expenses for the next 12 months for the employee, his/her spouse, or dependent(s) or beneficiaries . Medical expenses not covered by insurance for employee, their spouse, or dependent(s), or beneficiaries which would be deductible on a federal tax return (e.g. non-essential cosmetic surgery would not be acceptable) . Funeral expenses for the employee's deceased parent(s), spouse, child(ren), or dependent(s) or beneficiaries (as of http://www.answers.com/topic/december-31-1 , http://www.answers.com/topic/2005) . Home repairs due to a deductible casualty loss (as of http://www.answers.com/topic/december-31-1 , http://www.answers.com/topic/2005) . In any event any amounts are subject to normal taxation as ordinary income. Some employers may disallow one, several, or all of the previous hardship causes. Someone wishing to withdraw from such a 401(k) plan would have to resign from their employer. To maintain the tax advantage for income deferred into a 401(k), the law stipulates the restriction that unless an exception applies, money must be kept in the plan or an equivalent tax deferred plan until the employee reaches 59 Â½ years of age. Money that is withdrawn prior to 59 Â½ typically incurs a 10% penalty tax unless a further exception applies.  This penalty is of course on top of the "ordinary income" tax that has to be paid on such a withdrawal. The exceptions to the 10% penalty include: the employee's death, the employee's total and permanent disability, separation from service in or after the year the employee reached age 55, substantially equal periodic payments under section 72(t), a http://www.answers.com/topic/qualified-domestic-relations-order , and for deductible medical expenses (exceeding the 7.5% floor). This does not apply to the similar http://www.answers.com/topic/457-plan .
Not really. You can give up owning your house, or not work. If your income is less than minimum, ($3,300) You do not have to file. If you get married, and only your spouse wor…ks, file seperatly so only one of you has to pay. This way you escape most taxes(i.e. income tax).
If you gave any one person gifts that are valued at more than $15,000 (in 2012), you must report the total gifts to the Internal Revenue Service and may have to pay tax on the… gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift. There are some exceptions to the tax rules on gifts. The following gifts generally are not taxable and do not count against the annual limit: . Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefit . Gifts to your Spouse . Gifts to a Political Organization for its use . Gifts to Charities If you are married, both you and your spouse can give separate gifts of up to the annual limit of $15,000 to the same person without making a taxable gift. Alternatively, with consent from your spouse, you can make a gift of up to $30,000 ($15,000 x 2) to the same person without making a taxable gift. This is commonly known as splitting gifts between spouses. Essentially, it means a gift by you or your spouse to a third person can be considered as made one-half by each of you provided there is consent by both spouses.
In State Laws
Its a legal as liking a butten in Wyoming! Hey, fabergastic!
In Income Taxes
Taxes are entirely lawful, with one borderline exception . Income taxes were authorized by the l6Th Amendment in I believe l9l2 ( this may explain the traditional April l5 dea…dline which coincides with the Titanic disaster of that year.) The exception oddly- is not widely discussed, least of all by politicians- that is- The individual states of the United States ( this is stated early in the constitution proper)- are forbidden to charge what amount to Border Taxes for commerce between say, New York and New Jersey/ However, there are tolls on all manner of bridges and tunnels which cross state lines- a de facto border tax. As far as I know this little but factual argument- and it is in the actual constitution, not amendments- ( so is on more solid ground than say Gun control versus the 2nd amendment)- has never reached the center of Washington politics- let alone the High Court! Of course it can be stated that tolls on bridges and tunnels ( which are interstate) are merely for the maintenance and upkeep of the structures, but look it over.
Taxes are passed by the legislators you voted on and the presidentor governor you voted on. If you did not vote, you have no one toblame but yourself. If you don't like a tax,… you are still requiredto pay it. But consider voting for someone who may repeal the tax.