Advisory Tax Service, Inc.
Frequently Asked Questions - WHY YOU SHOULD CLAIM ALL YOUR INCOME There are so many reasons why one should claim all their income. Understandably there is temptation in not reporting all income, especially foreign earned income or cash under the table, since it is made without the eyes of the government. So the question is why report the money? At first glance one would look at all the tax money saved. People often see the money spent (current tax dollars) over the money they will save in the long run. The first major reason why you should claim all the money you earn is for the simple fact that you will be compliant with the law. Tax avoidance is legal, tax evasion is illegal. Tax evaders can be fined, imprisoned or both. While this is a white-collar crime it is a crime nonetheless. Crimes come in degrees, but all have consequences. Besides the morality, one can not simply obey some laws and not others. In the commission of a crime no matter how abhorrent one can never predict when one will get caught. For example if you new you were going to get a speeding ticket this afternoon, you would not speed. My point being is that you never know. My advice is, just do not do it. The second reason why you should claim all the money you make is for the fact that in the long run it is less expensive to claim all the money. For the vast majority, by not claiming the money you will have to pay more in loan interest. Anyone can get a no income verification mortgage loan. But this type of loan will cost you in extra mortgage interest. If you were to calculate how much even what 1% of the loan value will be over the life of the loan we are talking about thousands of dollars The third reason why you should clam all your income is that you will be better able to participate in the US financial institutions, which is among the safest and most prosperous in the world. We all have known people hat keep their money under a pillow or in a foreign bank account only to have their money stolen or the foreign bank to go under. Then that person is in quite a predicament. How does s/he report their crime without causing attention to themselves. Furthermore in comparing the money saved in income taxes by not claiming the money, approximate tax rate at 15% after expenses for the most part. While the stock market has had an aver increase in most of the mutual funds that I have beared witnessed to have grown at double digits over the last few years. Why would you save 15% when you can earn at compounded double digits. Finally, by claiming all your income you most probably will have more in your bank account at the end of the year. Cash burns a hole in most people pockets. Without a financial program or system most people spend the money they make without any regard to the future or a rainy day. Just as a matter of function, a routine savings program will aide in budgeting, and enable one to save more as the year's progress. It is not how much you earn, but how much you save that really matters. Eric Yankwitt, Advisory Tax Service, Inc., 1975 East Sunrise Blvd., Suite 522, Ft. Lauderdale, Florida 33304 (954) 763-2829.
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Yacht
Links www.yachtworld.com/SuperYacht/ The Super Yacht Society .
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