You must know how to handle the tax shelters. In the confiscatory tax economy we operate in today, anyone attempting to make important money has to operate with every tax break he can get. There are many of them, and they can be applied in different ways. Be sure you take every advantage of capital gains, investment credits, take part of your rent or house payment as an office expense, as well as your car - get all you can. It’s legal, and it’s necessary if you’re going to build your capital. Make friends with a good tax accountant; he’ll be able to give you many angles that you’ve probably never heard of.