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--- income_tax [2026/03/01 04:11] – [Key Ideas] jhagstrand
+++ income_tax [2026/03/12 04:11] (current) – [Input Documents] jhagstrand
@@ Line 26: / Line 26: @@
 Inputs and calculations.
+===== Tax Minimization =====
+It is legal to minimize taxes by maximizing expenses.\\
+It is NOT legal to //avoid// taxes by //failure to report// income.\\
+The wealthy can create businesses, organized as LLCs, and write-off most of life's expenses, until their is no tax to be paid.
+The super wealthy can create a charity, a bank, a church, or a nation-state and create money out of thin air, all tax-free.
+This document does not cover any of that.  The author is a sucker who dutifully obeys all the rules to avoid the stress of possibly getting caught.
 ===== State Tax =====
@@ Line 47: / Line 58: @@
     - 1099-MISC - miscellaneous income
     - 1099-B - gain or loss from sales of assets
-  - bank statements - foreign banks do not issue 1099s, obviously, but they sometimes pay interest and sometimes tax withholding and all these transactions are recorded in bank statements and/or your passbook.
+  - bank statements - foreign banks do not issue 1099s, obviously, but they sometimes pay interest and sometimes withhold tax from those payments, and all these transactions are recorded in bank statements and/or your passbook.
 ===== Record Keeping =====