Creation of a trust for tax optimization- How to reduce an inheritance tax?
An investment is a capital gain and, therefore, generates its corresponding tax. In different countries, their conception may vary, but the important thing is that in certain cases this tax is more favorable than the tax on personal income.
As an example, the income for growth of the capital of an individual in the United States can be 15-20%, while his income for rent can be 39%. The difference is remarkable. Thus, it is not surprising that many people prefer to pay the tax on capital gains in the US. UU and not pay the income tax, choosing for it countries where there is no such tax.
What are capital gains? It is the income obtained by the difference between the purchase and sale of assets. For example, if the purchase of a house is executed for a value of 100 units and after two years it is sold for 130, the capital gain on which the tax will be paid will be 30 units of difference.
Some people deliberately try to underestimate the number of sales to officially declare one amount while obtaining another amount, but at present, it is fairly easy to get information on income. The exception is, perhaps, the cash, but the problem of its circulation in large quantities makes it inoperative in some cases
Naturally, no one likes to pay taxes, and therefore there is a large number of tax advisers who earn money developing systems to reduce tax burdens. It is important to clearly understand the difference between tax planning and tax evasion. The line is thin and crossing it can lead to serious problems, including prison sentences.
As part of this material, we will consider the option to minimize taxes and defer them temporarily. How? With the help of a trust.
We can offer advice and help you with inheritance tax optimization and establish trusts in different jurisdictions.