6 Ways to Reduce Your Taxable Income (Loopholes You Need to Start Using)

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What are some ways to reduce your taxable income? Are there any tax loopholes that you can start using?

Today I'm bringing you 6 ways to reduce your taxable income - international edition.

Here are some things that will save you lots of money in tax:

1. Operate through a company, rather than like an individual. If you form a company you will save a lot of money! If you form an offshore international company, tax savings can be HUGE.
Besides the tax rate, which is lower for businesses than for individuals, as a company, you will be able to take advantage of tax write-offs. This way you will be able to spend pre-tax dollars, as opposed to after-tax dollars: your cell phone, computer, transportation, meals, accommodation, etc. Amazing!

2. Invest through foreign trusts. Lots of people have some sort of saving for retirement, such as 401k in the US. These are long-term savings. However, these domestic funds will often have thresholds and limitations. On top of that, you will need to worry about taxes.
That's why a foreign trust is a way to go, especially if we're talking about a large amount of money.

3. Travel abroad! This is an interesting one.
Very often you won't be able to write certain things off because they will be considered personal expenses. When you're traveling this is often not going to be the case. For example, your hotel room and your meals will be tax write-offs if you're traveling for business.

4. Employ people abroad. We already talked a lot about the massive cost benefits of employing people abroad. However, there is an interesting tax loophole that you will be able to use if you have a foreign company and employ people abroad. You will be able to charge your domestic company a full wage that you'd be paying in your home country, while actually paying much lower salaries somewhere abroad. This way you could reduce your taxes.

5. Turn your hobbies into businesses. This way you could turn your leisure expenses into tax write-offs. Like fast cars? Maybe you could start an exotic car rental company.
Owning things personally will not qualify for tax benefits in normal circumstances. However, if your business owes them it's a whole different story. You can make almost anything into a business.

6. Borrow rather than sell. You could borrow against your stocks. If the value of the stock goes down you are not the one who takes the loss! This can also work with property.

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