I wanted to give you an update on the tax rule changes that occurred In the USA two months ago.
Is that important to other countries? Yes absolutely!
Changes are often copied in other countries after one implements to maintain balance. Other countries usually follow in some form.
This is the biggest tax reform in about 30 years.
If you are a contractor, entrepreneur or professional investor in property you benefit with “pass through” rules using “dynasty trusts” that are now available in the USA. This means it permits intergenerational wealth without death duties, taxes and CGT. This means storing wealth outside your name now gives the ability to easily pass wealth on through to children, grandchildren etc. Asset protection has become part of estate planing.
These “pass through” rules are what I already use in Australia with “family discretionary trusts”.
I have said for years that companies do not have the same rules as a trust (Pty Ltd have different rules). Knowing how to use them properly is so important to your and your children’s future. Having the right advisors for asset protection and wealth storage is more important now than before.
Most of the new US rules already apply in Australia, for those that understand these rules and use them.
Also US Contractors now get an extra 20% contracting income tax discount until 2025. Plus- – lots of new depreciation rules however these are quite complex.
The lesson is that if you are a wage or salary earner the rules do not apply. The high income earner is now losing work related deductions. This is important to understand as outlined in my books and the wealth mastery training.
When you structure correctly, and play by the rules, using the right advisors, life gets a lot easier.
Now remember, these changes are US only at this stage but if you are looking into the future in most countries “the game of entrepreneurs and business is rapidly changing.”