Every business has risk, and every risk has a cost. The question is, how do we pay that cost? Most business owners ignore the cost or assume it is not there. As a result, we pay taxes on such costs. This means we incur the cost of risk twice, once as a risk, and again as a tax. Such taxes are voluntary and optional. With appropriate planning, the tax code permits us to pay for such risk only once, as a risk, and not again as a tax on risk. The point is not to reduce taxes, but to efficiently recognize and manage the actual cost of risk. This benefits business in many ways, only one of which is
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