More Corporate Tax Math

 

Math of tax defferal. 

You have a choice:

1. Pay $500,000 in taxes right now
2. Pay $500,000 in taxes 40 years from now when you die

The difference?

1. $500,000 is kept in your corporation
2. $500,000 is invested for 40 years 
  2a. @8% = $10,862,260
  2b. @10% = 22,629,627
  2c. @12% = 46,525,485

These numbers sound silly, but it's 100% true.  Every dollar you pay in personal tax could have been kept in your corporate structure and invested if you have an optimized structure.