Is it possible to avoid paying taxes? No, not it isn't no matter what kind of strategy you apply. Especially avoid these things:
- Don't go purchasing annuity – Now you may think what's an annuity. It's either an investment or a savings account at an insurance firm. Insurance firms will make a lot of money of your money, and the benefits returned aren’t as great.
- Don't keep a pending mortgage –Do not miss out on pending mortgages just to save on taxes. The removal you get for your mortgage is not dollar to dollar. So basically, you end up paying more with interest.
- Investment in a retirement account –You can’t open a retirement account if you want to fall under a lower tax bracket. Now the money you put into the IRA is tax-free but the catch is it will be taxed once you remove it. So, you end up paying either the same amount or more. This is not the right choice to make so avoid doing that.
- Avoid investing in excessive life insurance policies – In the long run, they sound very beneficial and tempting but that's not the case. In case you die, your family receives only the face value of the insurance, so you end up paying a lot of premiums, which you could have saved and invested elsewhere.
So be on a safe side, avoid these kinds of schemes and hire a good attorney or accountant from accountants in Coomera who will help you out in all your tax-related issues.