Chapter 3
Legally reduce your tax
Begin with the end in mind.
Stephen Covey, author of The 7 Habits of Highly Effective People
We all want to reduce our tax and boost our savings, and the key to doing this is to understand the various structures under which you can invest your hard-earned dollars. Each of these structures attracts a different rate of tax, which can affect the amount of net income you receive from your investment (as dividends or rent, for instance) and the amount of money you have left after you sell the asset (capital gain). By diverting your income to the structure that is most tax-effective for you, you may save yourself a fortune over time.
Investment structures
You can buy an asset under any of the following six structures: ...
