|
|
|
Business Menu Planning-Satisfy Your Customers, Don't Stuff Them!
As you take a closer look at what you offer on your
Be careful what you have on your business "menu" because someone might just want it!
I remember when hair salons offered very basic services. They cut hair, styled hair, permed hair and...
CellWireless’s Compensation plan
What is the CellWireless Compensation plan? This plan allows callers to take advantage of the lowest rates available for domestic and international calls. There is absolutely no monthly charges or fees of any kind. You can call over 200 countries...
Headhunters - Tp Use Or Not To Use?
What should you be aware of when using an external (third party) headhunter? Working with headhunters can be a tricky issue. Just like any other business, there are headhunters who are genuinely concerned about their candidates and have their...
Increase Your Follow On Sales
You might ask, "What is a follow on sale?" A follow on sale is
the sale of any product or service that comes as a direct result
of a previous sale. An example of this type of sale would be
selling an upgrade to a an existing software product...
Interview Tips - Ten Top Do's & Dont's for Winning Interviews
In this day and age it can become increasingly difficult to even get your foot in the door and get an interview; once you’ve accomplished that you will want to make sure you continue to put your best foot forward and nail the interview as well....
|
|
| |
|
|
|
|
|
|
Self-employed Tax Strategies
Self-employed individuals always cringe at the amount of taxes the pay to the IRS and state. Here are tax strategies for self-employed individuals that reduce those tax amounts.
Tax Strategies
The good news is being self-employed is one of the best tax strategies out there. Unlike a salaried employee, the full scope of tax credits and deductions available in the tax code are now available to you. The key, of course, is understanding the available deductions and organizing your business in a manner that allows you to maximize the write-offs.
The number one tax strategy for self-employed individuals is to keep receipts for every business expense and write them off. Practically anything can be deducted, so do it. Acceptable expenses include cell phone usage, business mileage, office supplies, home office deductions including part of mortgage or rent and so on. If you’ve filed a tax return while self-employed, you are probably already aware of this so lets move on to more specific tax strategies for self-employed individuals.
Maximizing you non-capital losses can result in major tax savings. If your expenses exceed your income for a year, you obviously will not have to pay taxes for that year. What most people don’t realize, however, is that such losses can be carried forward for seven years and deducted against future income. Alternatively, the same losses can be carried backward three years to recover past taxes paid. The end result of this situation is you can turn a bad business year into an income generator by applying the losses to taxes in other years which effectively wipes out your tax bill for those years.
Another tax strategy is to look at your side businesses. If you have one business, you’ll often have a second one that is tailored to making some money off a personal interest. While you are in it mostly because you like it, you may not realize it qualifies as a business and can help you reduce your
taxes. Let’s assume you are primarily a self-employed consultant, but also write travel articles on the side. You may view the travel articles as a hobby, but it is in fact a business. If you’ve sold or even tried to sell any of your articles to a publication, all of your expenses related to travel writing can be deducted from your taxable income. This includes trips and so on. These, deductions can significantly reduce your taxable income from the consulting business. Make sure to get a grasp of your overall business efforts, even if you don’t really consider them to be a business.
Consider employing your children to save on taxes. A child under 18 that works for you does not have to pay FICA and so on. If the total wages for the year are under $4,250, they will pay no taxes and you can write off this amount as a legitimate business expense. Of course, the child needs to actually be doing a legitimate business task, but filing and similar manual tasks certainly will qualify.
Tax strategies for the self-employed are plentiful. If you are self-employed, consider getting professional help. A good professional will save you thousands upon thousands of dollars in taxes, more than making up for their fees. Oh, you can also deduct their fees! Click the links to the right to find help with minimizing your taxes.
About the Author: Richard A. Chapo is with http://www.businesstaxrecovery.com - recovery of business taxes through tax help and tax relief. Visit http://www.businesstaxrecovery.com/articles to read more business tax articles.
Source: www.isnare.com
|
|
|
|
|
|
