Disclaimer: I haven't had my coffee yet so this may be a little hazy...
I have heard of people that have corporations consisting of themselves and maybe one other person. They charge out x amount to a client, who pays the corporation, out of which they draw dividends. Furthermore, their corporation pays a lot of their expenses that are related to their jobs (flights, accomodations, supplies, etc). At the end of the year, the corporation is taxed based on how much money is left in its account(s) at a low rate, and then they get all kinds of tax breaks on top of that. This is the way it works in Canada, at least.
Now, in the USA, you are allowed to claim gambling losses up to an amount equal to your winnings (if you win 5000 and lose 10000, you can claim 5000 of your losses), but I'm sure you all know this one.
My question is are you able to have a corporation (say an investment corp or something) whose stake is investing in gambling? Have any of you ever tried this? I'm not versed in American law but it does seem at first glance like something you could make use of in the case that you employ large amounts of money ($100K+).
Again, I have not had my coffee yet and this is something I dreamed up on the way to work. This may or may not be completely ridiculous.
I have heard of people that have corporations consisting of themselves and maybe one other person. They charge out x amount to a client, who pays the corporation, out of which they draw dividends. Furthermore, their corporation pays a lot of their expenses that are related to their jobs (flights, accomodations, supplies, etc). At the end of the year, the corporation is taxed based on how much money is left in its account(s) at a low rate, and then they get all kinds of tax breaks on top of that. This is the way it works in Canada, at least.
Now, in the USA, you are allowed to claim gambling losses up to an amount equal to your winnings (if you win 5000 and lose 10000, you can claim 5000 of your losses), but I'm sure you all know this one.
My question is are you able to have a corporation (say an investment corp or something) whose stake is investing in gambling? Have any of you ever tried this? I'm not versed in American law but it does seem at first glance like something you could make use of in the case that you employ large amounts of money ($100K+).
Again, I have not had my coffee yet and this is something I dreamed up on the way to work. This may or may not be completely ridiculous.