Quote:
Originally Posted by MAXUM
In the simplest of terms...
These are legal maneuvers people are taking to legally protect an asset such as a piece of property or any asset of significant value. It does NOT free them from tax liability or make the taxes being paid any less. The trust, LLC, LLP, corporation or owner in whatever legal format it is defined must pay the same taxes as everyone else at the same rate. In fact most trusts are established simply for the purposes of augmenting a will to pass assets to beneficiaries avoiding any kind of probate or lawsuit claiming a right of ownership outside what is defined within the trust itself. Nothing nefarious here, in fact in today's overly litigious society it's almost a necessity.
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I agree that the taxes must be paid. It's been a long time since I took accounting 101, but I was thinking more of business expenses that are deductible. Doesn't the 10;000 cap apply to individuals, not businesses? If I am a partner and we share the tax so my share is applied to my $10,000 cap, not to that of the partnership if there is a cap for them? I believe I could also transfer the property to my charitable foundation as long as the use falls within those legal parameters. When you reach this level, don't you have teams of CPA's and attorneys, not just some guy who does my taxes?