Buy boat.
Have it titled as Salvage.
Sell boat with salvage title for more than a Salvage boat is worth.
Write off the loss of value and loss on the sale.
Reduce taxes by enough to finance the kid's wardrobe.
Sell off the wardrobe items as the kid grows out of the them.
Maybe write off the logs on the wardrobe, depending how it was bought.
Net results: 1. Wardrobe was free. 2. Taxes reduced for one year, and maybe 2 more. 3. Kid had really notice baby clothes.
Conclusion: Dad is using his son as a tool for reducing taxes while providing for him. This is one way how intergenerational wealth is created.
This is an object lesson.
Buy boat.
Have it titled as Salvage.
Sell boat with salvage title for more than a Salvage boat is worth.
Write off the loss of value and loss on the sale.
Reduce taxes by enough to finance the kid's wardrobe.
Sell off the wardrobe items as the kid grows out of the them.
Maybe write off the logs on the wardrobe, depending how it was bought.
Net results:
1. Wardrobe was free.
2. Taxes reduced for one year, and maybe 2 more.
3. Kid had really notice baby clothes.
Conclusion: Dad is using his son as a tool for reducing taxes while providing for him. This is one way how intergenerational wealth is created.
This is an object lesson.
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