Alphonso asks the following question: Hi Tom, thanks for keep in touch with me. Your Information is so valuable and very welcome. At this time, I have some questions about income. How can I split my income as a 1099? I understand we need to manage and organize every penny, so I am splitting in this way: 10% Tith 15% Tax Savings 15% Advertising 30% Personal Income 30% Business Expenses Any suggestion? My other question is about my wife. She is W2. How you suggest to split her income? Thanks

A: I'm not exactly sure what Alphonso is asking, but let me suggest there could be two different questions here. The first is the best allocation of income to various expenses. I think that is a question for your Wealth Strategist. At ProVision, we believe that each investor should develop their own personal wealth strategy that is unique for them. Visit http://www.provisionwealth.com/wealthstrategies.asp for more information or see our wonderful Wealth Strategy home study course, Financial Freedom Now! at http://www.provisionwealth.com/products.

The other possible answer to the question has a tax angle to it. Could a person split their 1099 income between multiple companies to lower tax brackets? The answer very well could be "yes." If different companies perform different tasks for a client, then the client could pay each company for that service rendered. This could be especially beneficial if one of the companies were a "C" corporation. C corporations have their own tax brackets and the first $50,000 is ordinarily taxed at a 15% tax rate. Look for more on this strategy when we release our home study course on using C corporations. It will be released in the next few months, so be sure to keep a look out for it. We recently included it with the package we released to the Rich Dad Forum participants and it was very well received.

Remember that permanent tax savings, such as lowering tax brackets, are one of the key secrets to a successful tax strategy.

Warmest regards,

Tom