.: Tax Tips Top Related Articles
1). Smart Yearend Planning - Tax Deductions
There are three main areas we need to keep in mind as the year ends:
1. Taxes
2. Corporate formalities
3. Planning for next year
Revisit the idea of converting your 10 largest expenses.
This is an ongoing process that should be done at least twice the first year. It’s not realistic to expect you will convert all of your biggest expenses the first time around because it’s too big of a task—this is a habit needing to be developed over time.
Article tags: tax deductions, tax tips, wealth building
2). Entity Structuring
Entity structuring is the use of limited partnerships, limited liabilities, and corporations. These can help you accomplish three things:
1. Bullet-proofing your assets so that the bad guys are worse of if they try and take them away from you.
2. Slashing your taxes so that they are within single digits.
3. Protecting your privacy and building lasting wealth.
Article tags: tax deductions, tax tips, wealth building
3). Heads up on co-signing loans
In my opinion, if you co-sign a loan with a family member or a friend, you’re looking for trouble. Granted, if you want to help your child buy his first car, you may need to co-sign because the child does not have credit history yet. The danger is that if your son makes a late payment, the bank will come to you to pay it off. Be extremely judicious who you co-sign for.
Article tags: tax deductions, tax tips, wealth building
4). ROI-calculating accurately
The phrase "return on investment" (ROI) is thrown around a lot, but do you know what it really means and how to calculate it?
Three ways to calculate ROI
Cash-on-cash If $20,000 is invested and it grows by $10,000, it’s a 50 percent cash-on-cash rate of return, which is great for wealth building.
Total amount of investment If you put $20,000 down for a $200,000 mortgage, the growth is happening on the $200,000, not what you originally put in.
Article tags: tax deductions, tax tips, wealth building
5). Tips to Avoid Identity Theft
What is rampant, spreading like wildfire and can kill life as you know it? No, not a deadly virus (but close). Answer: Identity theft. My stepson, Aaron, was a victim of identity theft recently. Someone stole his bank cards, deposited fake checks into his account, then withdrew cash. The deposited fraudulent checks and overdraft charges hurt his credit, and he’s slowly recovering and rebuilding his score.
Article tags: tax tips, tax deductions, tax savings
6). The Two Biggest Thieves In Regards To Wealth Building
The two biggest wealth thieves a person will encounter are tax deductions and lawsuits. Taxes work against you by chipping away at your wealth. These include federal income taxes (deducting up to 39% of your income), state taxes (deducting up to 9.6%), and self employment or social security (over 15.5 %.). The average American is paying 42-55% in taxes.
Article tags: tax deductions, tax tips, wealth building
7). Smart Yearend Planning-Planning for the next year
There are three main areas we need to keep in mind as the year ends:
1. Taxes
2. Corporate formalities
3. Planning for next year
Planning for the next year
a) Operations—What are one or two areas of your business that can be improved? How can you improve your service, stay in better touch with clients, close the gaps in your system? Ask your customers, clients and employees for suggestions.
Article tags: tax deductions, tax tips, wealth building
8). Uneducated Tax System v. Educated Tax System
The line under your income on your pay stub is where these two systems differ. With the uneducated tax system, you deduct the three lines under your income and the remainder is what you receive. With the educated tax system, the first line is your reported income as with the uneducated tax system. However, the second line is the money you spent on the business, and you pay taxes on what is left.
Article tags: tax deductions, tax tips, wealth building
9). Smart Yearend Planning-Corporate Formalities
There are three main areas we need to keep in mind as the year ends:
1. Taxes
2. Corporate formalities
3. Planning for next year
The power of documentation—shifting the burden of proof
For those who have an LLC (opposed to a sole proprietorship, S Corporation or C Corporation), it’s always better to over-document. By keeping a tax diary, you shift the burden of proof from yourself to the IRS, who then has to disprove its validity.
Article tags: tax deductions, tax tips, wealth building
10). Navigating the promotional maze
Pros and cons to three hot topics
Invited to be officer on the board—flattering or dangerous?
Officer and director liability is staggering. If a friend of yours is starting a company or charity and she asks you to sit on the board, carefully make your decision to accept or decline the position. If a mistake happens and the shareholders file a lawsuit, you could be named in the lawsuit because you’re a director or officer of the company; you are also personally liable for the salary of any salaried employees (if you’re an officer of a company).
Article tags: tax deductions, tax tips, wealth building
11). Top 6 Best Tax Tips for Online Education
Here are 6 top tax tips you should read before April 15. These tips can save you money. Utilize these tips and you will likely complete your tax returns on time correctly with less stress and have better chances of earning greater tax returns.
Article tags: online education, tax, taxes, tax tips, tax tips education