Re: An idea to beat the tax man

[CalaxCorp@xxxxxxx]

In a message dated 98-05-29 15:20:07 EDT, clarkmj@xxxxxxxxxx writes:

<< Subj:	 An idea to beat the tax man
 Date:	98-05-29 15:20:07 EDT
 From:	clarkmj@xxxxxxxxxx (clarkmj)
 
 I was just sitting here doing some work on my IRA and an idea hit me on how
to beat the tax man.
 
 The idea being to use all your accounts to generate as much tax free income
into your IRA as possible.
INCOME GENERATED IN AN IRA IS NORMALLY "TAX DEFERRED", NOT "TAX FREE".
 
 Here is the plan. .......
 5.  At the end of the trading year total up the net revenue and issue a
dividend to reduce revenue to zero.  If I understand corporate law correctly,
you would only owe corporate income tax on any income which whould net out to
be zero because of the dividend, therefore no tax.  Any idea on why this will
or will not work.
 THE TAXABLE INCOME IN THE CORPORATION IS NOT REDUCED BY DIVIDEND IT PAYS.

 Thanks
 Mike Clark
 clarkmj@xxxxxxxxxx >>

SINCERELY,
WILLIAM W