Everyone knows that taxes detract from personal wealth, but most people don’t bother to find out how they can minimize the taxes they pay. There are many ways this can be legally achieved.

One way to reduce taxation is to invest your money through the coverage of a corporation. If you invest through your own corporation, the money you make is taxed much more leniently than if you invest in your own name.

In the United States, corporations come with other benefits, too. For example, debts and liabilities are placed in the corporation’s, not the owner’s, name, which insures against limited losses on investments gone awry.

When you’re an employee, you earn, get taxed, and then try to live on what’s left. When you’re protected by a corporation, you earn, invest or spend as much as you can, and then get taxed on what’s left.

It’s no surprise, then, that corporations can help people get rich very quickly.

There are other ways you can minimize your taxes, too; it’s just a matter of educating yourself on the many loopholes and benefits of the tax system.

For example, because of Section 1031 of the Internal Revenue Code of the United States tax system, if you sell your current real estate assets in order to buy more expensive ones, the government delays taxing your new real estate until you liquidate the property.

This means your capital gain increases, while the government refrains from taking anything from you until later.

By becoming aware of how the “system” works in your country, you may be able to legally reduce how much money the government takes from you.

Understand the tax code to help you minimize your taxes.