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Ask Dr. Fiona Chen Your Own Question
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 482
Experience:  Former IRS Revenue Agent
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With regard to restricted property trust If the president

Customer Question

Good evening
With regard to restricted property trust
If the president elect would cut corporate tax down to 15% would this idea still be of value
Isaac Friedman
Brooklyn NY
Submitted: 11 months ago.
Category: Tax
Customer: replied 11 months ago.
Also what's your take on the restricted property trust overall
Expert:  Dr. Fiona Chen replied 11 months ago.

Dear Customer,

My take on this trust is not to participate. Anything sounds too good to be true probably is.

There are many financial products aiming at the mid income groups. Truly high income groups are sheltered in large CPA firms' financial products. Most of us do not have access and do not know about those shelter and financial products. The IRS is just slow in catching up. Once the IRS catches up, the slowest runners are caught.

We have heard too much and seen too much for me to provide this warning.

As to the new President elect's tax plan, 15% on personal tax return probably is too low. He could be referring to corporate income tax. According to the logic, if restricted property trust can reduce income tax by 70%, then, the benefit tax rate would be 70% times 15% savings. We can reduce the income tax to 4.5%. It should always work.

Please, since you write to us, don't do it. There are so many legitimate and popular tax savings plans such as profit sharing, defined benefit plan, employee benefit plans. Unless we have money to retain many attorney defending hours and CPA hours, don't go too fancy on out of normal range type of tax shelter and fancy financial products.

Please feel free to follow up.



Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP