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If the Internal Revenue Service hired a consultant to tell it how to maximize tax revenues and minimize tax fraud, the advice it would get is obvious.
Regardless of the amount, the decisions surrounding bequests are routinely made to maximize tax benefits but often without any input from the people who will inherit the money.
They have a few useful tips for their clients (how both halves of a divorcing couple can maximize tax breaks on capital gains when selling a home, for example) but most of what they offer is more basic.
Here's what you and family members can do to maximize tax savings.
Star client: Sammy Davis Jr. Built practice by figuring out way to maximize tax benefits for oil partnerships.
To maximize tax savings, you must carefully decide how much to stash pretax for 2011 in a flexible savings account for medical expenses and/or dependent care.
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Still others will try to maximize tax-free income.
He built his practice by maximizing tax benefits for oil partnerships.
The (upsilon ) that maximizes tax income in the competitive case is represented in Fig. 1.
Open image in new window Fig. 1 Tax on volume ((upsilon )) that maximizes tax income in the symmetric ((alpha = beta )) competitive market.
Theoretical research on tax evasion has grown in different directions including research on black markets, audit behavior of tax authorities, and issues regarding the design of a welfare maximizing tax system.21 Tax evasion, in particular the amount of evaded income, depends crucially on how the liability is distributed between the contracting parties.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com