Hacking the Tax Plan: Ways to Profit Off the Republican Tax Bill

I'm no expert, but this is weak sauce. If these are the biggest "loopholes" to be found in a tax bill that doesn't just change rates but makes major conceptual changes like switching to a territorial tax system, and which seems to have gone from nowhere to law in like a month, the Republicans in Congress must be geniuses. I think the 1986 tax reform bill took over a year to hammer out, and still had plenty of "bugs".

It's more likely that this article doesn't even scratch the surface of the weird incentives. (And, for that matter, that many of the proposals in the article wouldn't work)

What I want to know is, are companies like Apple with billions of "cash" overseas scrambling to buy foreign real estate or other illiquid assets before the end of the year to get the lower deemed repatriation rate?

Mostly linkbait... Some of their advice include:

- Have your kids right away

- Get lucky with the timing of your inheritance

- Move to New Hampshire

- try to earn more this year

- Upgrade your private jet

So mostly not usefull at all...

However what struck me more is how high earners would immensely benefit from the tax plan. So let's say you are CVP in big company and making $2M. At least half of these will probably in stocks and you would be paying 15% tax - so no problem there. However your cash still gets taxed at 35% or more. Now what you can do is become corporation, get your paycheck only get taxed to 21% and pay yourself living expenses. So basically you just keep your money in your "corporation" invest it, grow it - all for just 21%. You can then pass this whole thing off to your kids, again completely untaxed! In essence, people making $1M or more got about 20% tax break while most middle class people are probably getting 5 to 10% or so.

So their advice is to incorporate myself in order to deduct all my local and state taxes? So I can pay 15-35% federal corporate income tax rates, plus 5-10% in state corporate income tax rates, then my state income tax rates, then finally 15-20% in federal dividend rates?

Methinks someone didn't think their article through.

8) Turn Yourself into a Pass Through Business

If you've been contracting, driving uber, etc hopefully you've realized this has been advantageous before. You get to deduct expenses without as many limitations.