Hey, everybody. Bernie Gartland from the Gartland Group. Now, there’s an expression, “What if? What if? What if?” Well, what if you’re a businessman, you form another division of your business, not a corporation, but a division of your business, and you can pay a salary to that employee of your business? He can go out and buy tools, he can do work for you, and take money our of his pocket to enhance your business. You can take it as a business deduction and that employee does not have to declare as income. This is called “The Plan”. This is very interesting because one section of the internal revenue code says, “You have to report all income from whatever sources.”
Then, the other overriding section says, “However, there are certain deductions you can take.” This is a concept that you can put together and I’m going to emphasis it. It’s called “The Plan.” The Plan has been recognized by the Internal Revenue Service. We even have a revenue ruling written, I think, it’s a five-page revenue ruling that outlines how this plan works. Under normal circumstances, you have what is called a “2106 Deduction” and that’s a non-reimbursed employee expenses. You have to put … I know these are a little technical, but you have to put it on a Schedule A and you don’t get full benefit. This isn’t even a Schedule A, this is a non-Schedule. You do not have to report it as income.
We are going to discuss this for our half-an-hour program on KMIR. We’re on at noon time every single Wednesday. We’re going to have a tax expert that I am going to interview right here. We’re going to talk about this plan and how it affects you, as a businessman. This is unbelievable what can be done. By the way, it wouldn’t hurt if you had one of the members of your families in this division, would it? That’s a way to create more money, act legally with the internal revenue code. Make sure you check your schedule. Put it on your DVD, or whatever you want to call it. At twelve noon every Wednesday, we are going to talk about this concept and how to implement it in great length. See you next time.