I am incorporated and The part your missing is that the $60,000.00 is profit to the corporation and the Corp. pays corporate tax on ANY profits, divedends are AFTER TAX....i'm not exactly sure what the applicable rate is for 60,000 but let's say it is 25%. After taxes the corporation only has $45,000.oo left for divedends. Then I pay INCOME TAX on the 45,000.00. I would be better off to take the $60,000.00 in payroll and pay 7.65% SS and let the corp. pay the matching for a total of 15% SS, thus saving approx. 10% in tax. Plus the Corp shows 0 income and pays no tax.
A friend of mine moved from a small condo to a larger house when he got married, but he couldn't sell the condo. So now he rents it out, and according to the IRS he is now a "property owner." This allows him to write off depreciation on the property in addition to the standard tax deductions on interest and property taxes.
The excess revenue generated by the rent now serves as his "play money" fund. The last time he and his wife went on vacation he made appointments to visit several realtors in Honolulu to see about purchasing a new condo. He had no interest in purchasing anything unless it met his miniscule budget (not likely in Hawaii), but because he was a legitimate rental property owner he was able to write off almost the entire cost of his trip (not his wife's costs, though).
I'd say that's not too bad.
Anyone who isn't in the same type of situation can do similar things. Check out the scheduled conferences or seminars for any professional groups in your field of work. Find one in a place where you always wanted to take a vacation, and schedule your trip around it. Better yet, take a few strangers from the conference out for an afternoon and play a round of golf on Uncle Sam.