![]() | |
![]() | |
![]() |
Taxes Information |
|
![]() |
Tax Tips to Save Money on Taxes - Get the Corporate Kick and Save Loads of Money
Why a Corporation Helps Save You Taxes The Tax Rates (Notice anything unusual?): The following tables provide a list of the tax rates for individuals and corporations: Personal: Corporate: If you examine them closely, you will see at least one glaring contrast. The individual making $49,000 per year is in the 28% percent bracket, while a corporation that earns $49,000 is only in the 15% bracket. That¡¦s a potential 13% difference in your tax rate if you organize your finances to take advantage of this one little item. But, that¡¦s just part of the story. An individual who makes $49,000 in salary pays taxes on almost the entire $49,000. However, a business can first deduct its operating expenses, and only pay taxes on what¡¦s left. As Robert Kiyosaki says ?± the corporation acts as a filter that is used to reduce the corporation¡¦s taxable income by utilizing the tax deductions afforded by the tax code. Basic corporate deductions include telephone expenses, equipment (faxes, computers, photocopy machines, telephones), automobile gas, repairs and insurance, travel, entertainment, seminars, etc. Do you have any of these types of expenses? Sure you do! The difference is that businesses subtract these first, then pay taxes on the balance. You, as an individual taxpayer, pay taxes on the greater amount, then pay for these expenses (you call them living expenses) out of what¡¦s left. Did you ever wonder why there¡¦s not much left for living at the end of the month? Now you can see why. The question is "Are you going to do something about it?" Keep in mind that there are two steps here; first you must start to shift your efforts from earning a salary to earning more money through your business. There are many ways that you can do this. For instance, you can start with your own business concept. Maybe you¡¦ve already got an idea that you want to pursue. It could be a product or a service or something along the lines of art and crafts. It doesn¡¦t have to be sophisticated or high tech; it just has to have a profit motive. Secondly, you may have something that you already enjoy doing as a hobby. You can probably convert that activity into a viable business enterprise. Just remember that there are rules that you must follow to ensure that your new-found business is not treated as a hobby by the I.R.S, and the deductions voided. Thirdly, you can get into a network marketing business. There are many available, some of which don¡¦t require a lot of money to get going. The older types of network marketing schemes available in the past made little money for anyone except the original promoters. Today, Wave 3 network marketing companies offer legitimate profit potential and significant residual income streams. I will be happy to make a recommendation if you like. Lastly, you may be able to sell the services of your new company to your employer. Suppose for example that there is some aspect of your job that you think can be done less expensively or more efficiently on an out-sourced basis. Tax StrategiesIt could be anything really, clerical services, database management, sales or marketing. Instead of working overtime and on weekends to make more fully taxable income, your company could generate revenue by providing the ¡§outsourced¡¨ service to your employer, and, in doing so, you could take advantage of the tax benefits. And the nice thing is that any of the above can be done on a part-time basis. You can maintain your current job (and income) while you grow your new business. The next step is to learn to maximize your deductible expenses. The items listed above are only a few of the many deductions that are available. We will be going into more advanced topics later in this booklet. One of the best ways to start this process is to review your current expenses and see if there is a way to convert these expenses to business expenses. Start with your checkbook; list all of the expenses that you pay each month on a piece of paper. Next, go through your credit card bills for the last year and list them. Next, go through your cash receipts and see where your cash was spent. Now, having done that, you want to see which of these expenses can be converted into business expenses. For instance, I¡¦m sure that you spent money on your automobile lease or note payments, gas, insurance, repairs, etc. In many cases, a portion of these can be converted to business expenses, if properly documented. Then, take a look at your phone bill. Some of this can be converted. The same is true of travel, meals and entertainment. And work your way down the list. The key is not to add additional expenses just because they are deductible, but rather to convert those things that you are already spending money on into legitimate business expenses. Keep in mind, that the I.R.S. has specific rules concerning each kind of deductible expense. These rules must be followed. It is imperative, therefore, that you work closely with your accountant to insure that you are in compliance with these rules. THERE ARE STIFF PENALTIES IF YOU FAIL TO DO SO. Why a Corporation Helps you Save Taxes * Lets look at the tax advantages of the corporation. The difference between how much or how little you pay in taxes is when you pay your taxes as an individual or as a corporation and what your tax rate is. Your Tax Base and Tax Rate Make a Big Difference to Your Savings!Tax Help Individual Corporation Expenditures Expenditures Sincerely, Drew has combined what he learned during formal education, informal education and twenty five years of business experience in the development of programs designed to teach people how to build and preserve lasting wealth. He is an author, teacher and international speaker in the areas of asset protection, and tax saving and wealth building strategies.
MORE RESOURCES: Californians in these counties may still have to pay taxes KTLA Los Angeles Sunak ‘considering inheritance tax cut’ The Guardian 3 Retailers Face Theft, Fraud and Tax Evasion Charges CSPDailyNews.com Middle Class Tax Refund: 5,000 more inflation relief payments going out, California agency says KCRA Sacramento 70 under 70 plan can help. Ohio must freeze property taxes for seniors The Columbus Dispatch Opinion: Governments keep squeezing businesses for more tax money, shooting themselves in foot The Globe and Mail Georgia Supreme Court declares revenue from COAM leases ... The Current GA 2024 state ballot battle to determine if voters can pass school parcel taxes by majority vote EdSource Alaska marijuana industry says baked-in taxes are too high Alaska Public Media News Will You Owe Taxes When You Sell Your Home? Morningstar Watch Out New York – New Jersey Wants Its Taxes Too! Littler Mendelson PC Opinion | Explaining Alabama's state grocery tax reduction Alabama Political Reporter 2023 Senior Tax Freeze application deadline fast approaching ... Philadelphia Water Department Gainesville property taxes to leap 29% over rollback rate Mainstreet Daily News Gainesville Johnson County antique mall forced to close as owner owes $62K in taxes, state says Kansas City Star DesChamps & Kalb: Smart leadership and low taxes go hand in hand. Greenwich Free Press Tax Tiff: Counties take aim at state over school equalization taxes Lewistown News-Argus Civic calendar | PG&E seeks $2M refund for property taxes from Humboldt County Eureka Times-Standard FTC Warns Tax Preparation Companies About Misuse of Consumer ... Federal Trade Commission News Countries Can Tap Tax Potential to Finance Development Goals International Monetary Fund Tax Collector Announces Second Quarter Installment Due October 1 ... Westport, CT (.gov) Man sentenced for $3.5 million, multi-year fuel credit tax fraud Department of Justice CBJ property tax payments due September 30 – City and Borough of ... City and Borough of Juneau Two Tax Shelter Promoters Found Guilty in Billion-Dollar Syndicated ... Department of Justice Median Household Income After Taxes Fell 8.8% in 2022 U.S. Census Bureau Douglas County OKs property tax relief; state review required The Denver Post Hooper energy tax, expected to generate $510K a year, spurs ... Standard-Examiner Iceland Prime Minister Promises to Increase Tourism Taxes Travel Market Report Tax laws can help victims of federally declared disasters Kiplinger's Personal Finance Former CFO of Russian Natural Gas Company Sentenced to More ... Department of Justice Hearing Wrap Up: Bidenomics Levied an Inflation Tax on All ... House Committee on Oversight and Reform | County Council passes resolution supporting senior real estate tax ... Leader Publications This Little Known Tax Credit Helps Low-Income Workers Catch Up on Retirement Contributions Yahoo Finance Tennessee revenue falls amid tax holidays, business break Chattanooga Times Free Press QCDs: A Tax Break Worth the Hassles - WSJ The Wall Street Journal Downtown Cheyenne property owners to vote on their taxes Wyoming Tribune Adopted Tax Rate at Lowest Level in 33 Years Richardson ISD ORANGEBURG CITY: Budget ups taxes and provides raises The Times and Democrat City of Owensboro warns Airbnb owners to pay outstanding taxes 14 News WFIE Evansville Collier cuts property taxes for next year, takes conservation money Naples Daily News Manufacturers defend Georgia tax incentives - The Current The Current GA California Companies Defer Billions in Taxes, Interest-Free, as ... The Wall Street Journal Mehlville schools boost revenue under tax loophole St. Louis Post-Dispatch Making 'cents' of property tax infatuation under the Kansas ... Kansas Reflector Optimize Your Taxes With These Two Common Strategies Kiplinger's Personal Finance Mahoning auditor follows up on tax reappraisal data Youngstown Vindicator Taxes, guns, schools, birth and death: State budget touches on all aspects of North Carolina life WRAL News Property taxes for 2024 reflect a record year of inflation in Florida WUSF Public Media El Dorado County Couple Sentenced for Tax Fraud Department of Justice SMART outlines ‘doomsday’ scenario if tax renewal fails Marin Independent Journal The IRS Has It's Eye on Millionaire Tax Evaders: Are You One? Kiplinger's Personal Finance Taxes, state parks, infrastructure: What you need to know about the ... Temple Daily Telegram Top Kansas Republicans push flat tax proposal, pan Medicaid ... Kansas Reflector Amherst supervisors OKs meals tax hike Lynchburg News and Advance Trump advisers plot aggressive new tax cuts for second White ... The Washington Post Take Advantage of the Lifetime Estate and Gift Tax Exemption While ... Kiplinger's Personal Finance |
![]() |
![]() |
![]() |
RELATED ARTICLES
Getting A Second Extension to File 2004 Taxes Millions of people file tax return extensions every year. The tax filing deadlines can rush up on your quickly. 10 Thoughts on Tax Offer in Compromise Beware of advertisements that claim to settle tax debts for "pennies on the dollar". Check the Offer In Compromise requirements to see if it is right for you. Home Business Tax Tips If you have recently started an Internet or home business, your probably a little intimidated by having to submit a tax return and the possibilities of being audited. Simply follow these guidelines and rest assured that filing your next tax return will go smoothly. What Is Tax Law? The federal tax code is complex. This complexity generally arises from two factors: the use of the tax code for purposes other than raising revenue, and the feedback process of amending the code. Rental Property Tax Deductions Own residential rental properties? This article discusses how income from those properties impacts your taxes.What Constitutes Revenue?Generally, rental income is defined as any revenue you receive from the occupancy or use of residential property. Home Based Business Tax Deductions Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small business deductions that are available. Gambling Income and Expenses - Tax Requirements Hit a big one? With more and more gambling establishments, keep in mind the IRS requires people to report all gambling winnings as income on their tax return.Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos. Truly Bizarre Taxes: The Tax on Illegal Drugs One can never underestimate the enthusiasm that politicians have for trying to hunt up tax revenues. The creativity of some politicians can lead to bizarre taxes and unfortunate results. Hurricane Katrina - How To Use Your Business Loss To Get A Refund on 2004 Taxes With the massive losses caused by Katrina, the economy of the Gulf Coast region is in extremely bad shape. Fortunately, there is a quirk in the tax code that can help you generate a large refund from your 2004 taxes. Render Unto Caesar Once a year Canadian taxpayers are required, by law, to file an income tax return in the prescribed form: $150(1).For individuals: $150(1)(d) ITA, they must do so by April 30 of the following year, provided that they owe any taxes or if they are served with a requirement to file: $150(2) ITA. Taxation of Forgiven Debt: The 1099C & You Often people fall on hard times and stop paying on credit cards. After a while the account may go to an outside debt collector who might offer a settlement of the debt for 30-40% of theoriginal sum. Corporations Failing To Claim AMT Exemption Overpay Taxes By $11,000 Does your incorporated business pay alternative minimum tax ["AMT]? If so, there is a 93% chance you have been overpaying your taxes by an average of $11,000 a year according to the Treasury Inspector General.The Office of the Treasury Inspector General for Tax Administration was created in 1999 to oversee the IRS. Taxing Overseas Firms for SOX Compliance The Sarbanes-Oxley Act, also called the Public Company Accounting Reform and Investor Protection Act of 2002 was signed into law on July 30, 2002 by President Bush. In the aftermath of Enron, Arthur Andersen, Global Crossing, and WorldCom, SOX promises greater corporate accountability and transparency. State Tax Information All states also have their own tax system. Typically there is a tax on real estate, and there may be additional income taxes, sales taxes, and excise taxes. Income Tax Returns Your Accountant Should Not File You've been feeling uneasy (perhaps even guilty) becauseyou've failed to report your under the table business income. Perhaps you've never filed a tax return, even though you know you owe money. Taxation of Isle of Man Companies from April 2006 At the present time a company incorporated in the Isle of Man, owned by non-residents and which complies with the other statutory requirements, is not liable to Isle of Man taxation. Whilst locally trading companies pay tax at 18%, a qualifying offshore company pays a flat annual tax of £475 or £1,000. Tax Tips to Save Money on Taxes - Get the Corporate Kick and Save Loads of Money Why a Corporation Helps Save You TaxesThe Tax Rates (Notice anything unusual?):The following tables provide a list of the tax rates for individuals and corporations:Personal: $0-$24,650 15% $24,651-$59,750 28% $59, 750-$124,650 31% $124,651-$271,050 36% $271,050+ 39.6%Tax SecretsCorporate: 0-$50,000 15% $50,001-$75,000 25% $75,001-100,000 34% $100,001-$335,000 39% $335-000-$10M 34%If you examine them closely, you will see at least one glaring contrast. Estate Taxes - It Pays to Plan Ahead Estate taxes. It's not enough to simply know they exist, and to know strategies to minimize them. Tax Trap #5 -- Ignoring The IRS (and the 5 best ways to contact them!) We all love to criticize the IRS, don't we? And I'mjust as guilty as anyone. It's easy to ridicule a hugeorganization of government bureaucrats who often seemto be Public Enemy #1. Business Tax Loophole: Leasing Assets To Your Corporation While there are many equally valid reasons to incorporate, saving money on taxes is a consideration that can yield relatively immediate results. Leasing assets to your corporation is a tax strategy you should absolutely consider if you already have a corporation or are thinking about forming one. ![]() |
home | site map |
© 2006 |