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THIS IS ONE OF MY FAVORITE METHODS TO EARN INCOME WITH VERY LOW RISK. If you are a small business owner and need an office space or storage space don't rent it. Buy this space in cash, if you can, and put it in your name, not in your company's name. You ask, why do that? Read further to find out why.
Assume you were paying yourself a monthly salary of $5,000. You have to pay about 25% Federal Income Tax plus 15% FICA tax. Note I rounded the Tax off from 15.3%. Now by changing this Salary to a rental payment from your company you do not pay the 15% FICA tax. Moving this to rental income you get to keep the total $5,000 each month until the next tax year, thus increasing your cash flow. This assumes you do not owe more than $1,000 in Federal Income Taxes at the end of the prior year otherwise you have to pay Federal Income Tax using quarterly estimates. The best part is you now do not pay any FICA tax and save 15.3% which is about $9,000 per year thus saving you a ton of money. Now keep in mind these numbers are not exact, but they are close to correct. How hard is it to save this kind of money? As any normal person knows it is very hard to save 15% a year.
The other great point about this is you now own a property that will increase in value over time, if chosen correctly. I purchased my office condo for $30,000 and 8 years later sold it for $90,000. Not a bad return. During that same time period I was able to save in taxes an amazing $72,000.