Are you taking advantage of your corporations to their full capacity?
Here is one strategy that may be suitable for your situation. We will use John, a 45-year-old non-smoker for a quick case study. John has $100,000 to invest in his corporation. That investment is earning 6% of interest income and we will assume John is in the highest tax bracket both personally and corporately.
In that case, about half will go to taxes leaving him with an after-tax return on his $100,000 of $3,000.
If we can structure this tax efficiently that same $100,000 investment at 6% would bear in a one-year situation $0 tax paid. The result would be John has $6,000 that grows on a tax-deferred basis.
How is this a possible? An MTAR Account.
