Want to Save Taxes? OK then, Print your Private Money

Banknotes can be payable in gold, any currency (such as the Swiss Franc) or product. They have been used for centuries by the wealthy to create wealth.

For centuries,  banknotes  have been used in the UK and Europe as “private money”. Now,  innovative tax planners  are creating private money to create wealth and to  save taxes.

Last century, innovative Disney issued its private money. Besides tremendous tax savings, Disney earned tremendous profits.

Now, successful  businesses are using private money for sophisticated related party tax planning.

Disney profits from its  private money  and gets amazing tax savings. Its private money is in the form of a  “banknote”.  

Amazon announced it will be issuing  its private money starting this May.  Their private money will be in the form of virtual currency.   With this in mind, your related party private money can be in virtual currency form.

Other types of private money are coupons and gift cards.  They all have two thing in common.  They are in bearer form and they save taxes.

In most cases, private money is  redeemable in product or services and not  in U.S. dollars.  Disney private money is used to  purchase Disney products and services.  Since it is in bearer form,  you can transfer the Disney money to anyone, either as a gift or as currency.  

For example,  I prepare your tax return.  I invoice you one  Disney dollar.   The tax law states my income is the value of the property I receive.   If I live in Nebraska (far from a Disney park),  the value might be less than if I lived in Orlando.

Just how do you save taxes?    

The IRS has announced that income from the issuance of  private money is tax deferred.  The tax deferral can go  on for years, even decades (as in the case of a business like Disney).  Here is the link to the IRS tax planning rules. 

The wealthy eliminate taxes by  using  private money for related party tax transactions including factoring of their accounts receivable to a related Nevada company and the  paying management fees and marketing fees related corporation.

This is what happens:   Related party income shifting is allowed when payment is made.   Real money is need  for real expenses such a payroll, rent and inventory.   Your private money is used to pay your related companies. It can be used again and again. 

Why now?   The Federal Reserve loose money policy affects the tax law on private money.  Printing your private money, now,  creates a powerful and unique tax saving asset.

This loose money policy has stymied the IRS related party interest rate rules (but don’t wait too long; the IRS announced they are planning to change this rule, on this link). 

Well, this is enough in writing.  To learn new tax planning ideas, listen in to my Blog Talk radio show, Tax Talk.

Part I will give you the fundamentals and Part II will give you advance tax plans. If you would like to brainstorm your tax planning, then please call me, Brian Dooley CPA, at 949-939-3414 for a free one hour consultation..

Listen now by  pressing play  button below Part I ’s play time is about 30 minutes.  Part II ‘s play time is about 15 minutes.

Listen to Part II below
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