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Well when they want to withdraw the money eventually they’d get taxed right?
by moneywoes 4y ago
Well when they want to withdraw the money eventually they’d get taxed right?
- conradkay 4y agoIf they withdraw 100k a year for 20 years (or more if it's invested) they'll pay a lot less in taxes than 2mil once.
- azernik 4y agoYes, but as income at a more reasonable tax bracket. By default this kind of windfall is taxed the same as someone who makes that much money every year for years; all those shenanigans let you get taxed as someone making a smaller income for a longer time. Plus, over that longer time you can list a lot of dual-use purchases as untaxed business expenses.