Hi,
I read a book recently mentioning that setting up a company to buy investments (shares, bonds, gold, property etc.) can be very tax efficient (American based book).
The basic idea is this; in a company you can do jobs on the side (legally), this gets money paid into the company without taxes (only taxes on profit at the end of the year?). The company then invests this money and leaves little profit at the end of the year to be taxed (at 25% because it's classed as passive income?).
Without a company I would have to pay ~48% tax before I get any money to invest.. so I am already down.
In the long run I would have to take a salary from the company to get the money back out, so I will pay tax eventually, but with a company I pay taxes later (possibly years) and so will be able to create wealth quicker.
Hopefully that makes sense to some of you. At the moment I have a full time job so this will be on the side.
Has anyone heard of this before in Ireland or know of any good books I could look at?
Thanks
I read a book recently mentioning that setting up a company to buy investments (shares, bonds, gold, property etc.) can be very tax efficient (American based book).
The basic idea is this; in a company you can do jobs on the side (legally), this gets money paid into the company without taxes (only taxes on profit at the end of the year?). The company then invests this money and leaves little profit at the end of the year to be taxed (at 25% because it's classed as passive income?).
Without a company I would have to pay ~48% tax before I get any money to invest.. so I am already down.
In the long run I would have to take a salary from the company to get the money back out, so I will pay tax eventually, but with a company I pay taxes later (possibly years) and so will be able to create wealth quicker.
Hopefully that makes sense to some of you. At the moment I have a full time job so this will be on the side.
Has anyone heard of this before in Ireland or know of any good books I could look at?
Thanks