Tips for this TAX season

[FerrariTruck]

Well with the tax season coming up I thought i get a thread together regarding taxes. Feel free to post any and all tips in order to help myself and others get a good tax return. I'm sure everyone could help

 

[mauiSRT/10]

Own your own business...............write offs come easy that way. When you just get a w-2 its difficult.....unless your in sales. Then you have more options.

Fund your IRA and Home mortgage interest are always a must.......less of course your stack of chips is so fat you bought your house for cash!!!! LOL

patrick

 

[lbstone]

I own a multi family house and write off everything, I mean everything down to several pairs of clothing, gas for my truck, vehicle taxes, home repairs, etc... I also compete in weight lifting (pro strongman) so I get to write off my air fare to comps (some in Europe), my suppliments, gym fee's, a per-diem per day for expenses (my tax guy says $50 a day when outta town on business). When all's said and done, I have more $ in write off's then what I paid in taxes! The guy I have do them is expensive but he's well worth it. If you wanna get big money back, its goood to go to a pro who is highly recomended!! This guy is already booked through February :idea:

 

[DenOfThievz]

Own your own business...............write offs come easy that way.

This is #1 best advice you will EVER get about keeping more of your tax money!

Even if you DO work as a W-2 employee for someone, start a small sideline business NOW and EXPENSE EXPENSE EXPENSE.
Do WHATEVER - sell custom-built birdhouses, lawn care, whatever - just DO IT!
It opens up a world of deductions you otherwise will NEVER get.
http://www.irs.gov/businesses/small/article/0,,id=109807,00.html
http://www.irs.gov/businesses/small/index.html

Then write off (keep ALL receipts/proof):
- every postage stamp/UPS/FedEx bill, pencil, pen, etc
- Home Office deduction (see rules, should be easy) which also nets you partial electric/water/heat/maintenance write-offs
- Mileage(especially) and Meal & Lodging allowance for work-related and medical travel
- Section 179 (VERY useful) immediate write-off for business/office-related equipment (calculator, adding machine, computer, copier, printer, PDA, etc)
- Cell phone(s) for work use
- Health/Life/Disability Insurance

Also start and contribute to a SEP IRA to the largest extent you can manage.
Your retirement contributions to a SEP IRA will ern money for YOU while remaining tax free, and thus stiffing the likes of GW or Nancy Pelosi.

And best of all - IT'S ALL LEGAL! Just make sure you read and understand the small business deductions guide the IRS provides and you're good to go!
IRS Publication 535, Business Expenses

Been self-employed for over ten years, and I make more money now and pay less proportionally in taxes than I ever have.

 

[Marc T]

I want the FAIRTAX reform!!! Now!!!!

Don't know about it? go to Fairtax.org!! Educate yourself!!!

 

[Prof]

Find a great accountant. Tell them to be very aggressive in tax avoidance, but not evasive.

Hire a good tax attorney. Tell them to be very humble and be ready and willing to write a check for whatever Uncle Sam decides your tax accountant screwed up.

Sleep soundly and, don't worry be happy.

 

[mauiSRT/10]

Always remember, there is a huge difference in taking a write off and not reporting income. Taking a questionable write off is just your interpretation of the law. Not reporting income....well thats just fraud!!!! Huge difference.


patrick

 

[Hotrodmike]

Very Good advice on doing the self employeement thing . I run 3 businesses and do not pay tax and have not for years ,legally . You can always find write offs according to the rules and yes always follow the rules . Planning is the biggest thing I see people have problems with ,they wait till tax season to do anything . You have to start the year before and set things in motion but shhhhhhhhesh who in this country cant spend more than you make . Like was said above anyone living off W-2's cant take 90% of the deductions that business owners can . Start a small venture and those deductions just start rolling in with stuff you would buy anyway . Also if you do not have taxable income you do not pay any SS either that could be good or bad depending on your veiws and if it's all spent before you get thier does it matter if you put in . So I thank all the people who pay my share every year ROFLMAO
Have A Kind Day
Mike
PS The company bought me the SRT10 and I set the payments up to equal the deduction on depriciation so basicly Uncle bought me truck and I drive for free till the company cant make the payment or I get fired LOL

 

[DenOfThievz]

...
PS The company bought me the SRT10 and I set the payments up to equal the deduction on depreciation so basically Uncle bought me truck and I drive for free till the company cant make the payment or I get fired LOL

I agree 100% bud, EXCEPT when you say Uncle bought your truck IF you're meaning Uncle Sam.
YOU are still paying your own $ for the truck - Uncle Sam is just prevented from dipping his hands into your pockets!!
We all know Uncle Sam generates no monetary value - he just confiscates from those that DO create value and redistributes it - often VERY poorly.

 

[Chuck B]

In 2000 I sat down with my tax Accountant to sign previous years 1040's. Realizing I just paid Uncle Sam $67K in taxes I left a bit pissed off. Three months later I quit my job and began a new adventure in self employment. To date I've paid a total of only $2500 in taxes since.

Granted my income is significantly down (though rising every year) I know in the long run I will come out ahead. Simple fact I'm no longer restricted on how much I can contribute to 401k etc is huge for me. Basically, the taxes I would have paid go straight to my retirement accounts.

Key for me was surrounding myself with real experts ie CPA, Tax Accountant, Lawyer and yes, a very good insurance guy. Amazing how much you can save with a little "umprella" policy. They (experts) cost but are worth their weight in savings.

The W2 person in this country gets screwed. A very large part of the income in this country is done under the table/cash and is of course unreported. Middle class W2 earner makes up for this.

Self employment/business ownership is the only way to go if you are looking to take full advantage of our current tax code. If you are a W2 earner at the very least turn your hobby into a business. Uncle Sam will allow 3 yrs of "loses" before calling your self employment a hobby. Then just find a new hobby....er Job!

 

[Hotrodmike]

[/QUOTE]Key for me was surrounding myself with real experts ie CPA, Tax Accountant, Lawyer and yes, a very good insurance guy. Amazing how much you can save with a little "umprella" policy. They (experts) cost but are worth their weight in savings.

The W2 person in this country gets screwed. A very large part of the income in this country is done under the table/cash and is of course unreported. Middle class W2 earner makes up for this.

Self employment/business ownership is the only way to go if you are looking to take full advantage of our current tax code. If you are a W2 earner at the very least turn your hobby into a business. Uncle Sam will allow 3 yrs of "loses" before calling your self employment a hobby. Then just find a new hobby....er Job![/QUOTE]

You are correct on who gets bent over ,but if your experts told you the old wives tale of 3 years losses and they call you a hobby ,you need new tax guys . Call the IRS , I have . A lot of large companies show a loss every year . Now there are certain rules on participatation and certain things they nail every time ,like the guy who has 4 horses and claims he is a horse breeder/rancher . First thing the IRS will do is check his exemptions and if that number matches his horses he is a hobby . Now with most companies you may be buying equipment or tools that eat into your profit .So even if you are loosing money it may be because you are growing . Now this only works in a sole proprietorship as if you incorp then you are required to pay yourself a salary which is taxable just like back on the w2, shit u r LOL

Den you are corect in that he did not dirrectly pay for the truck but it does get 100 % write off and if I have a choice of driving my SRT or paying uncle . I think I will stick with my first choice

The main thing with taxes is if you think and act like sheep you will be sheared .Now on the other hand if you think and act like the rich you get to keep most of your spoils since duh who wrote the tax code ,yup the rich .
Have A Kind Day
Mike

 

[Chuck B]

You are correct on who gets bent over ,but if your experts told you the old wives tale of 3 years losses and they call you a hobby ,you need new tax guys . Call the IRS , I have . A lot of large companies show a loss every year . Now there are certain rules on participatation and certain things they nail every time ,like the guy who has 4 horses and claims he is a horse breeder/rancher . First thing the IRS will do is check his exemptions and if that number matches his horses he is a hobby . Now with most companies you may be buying equipment or tools that eat into your profit .So even if you are loosing money it may be because you are growing . Now this only works in a sole proprietorship as if you incorp then you are required to pay yourself a salary which is taxable just like back on the w2, shit u r LOL

My point was you can pretty much get away with hobby/business for 3 yrs before eyes are turned towards you. This is my opinion not of my advisors. Two of my Businesses (6 total as several are nothing more than LLC's that own/hold Real Estate) have had losses every year to date, however, there are as you pointed out legitimate reasons for this. My SRT is also owned by one of the businesses. I chose to take long term depreciation rather than all in one year. Once its fully depreciated I already have a buyer lined up...ME! As for large businesses with continued losses look at Amazon.com....

 

[Hotrodmike]

My point was you can pretty much get away with hobby/business for 3 yrs before eyes are turned towards you. This is my opinion not of my advisors. Two of my Businesses (6 total as several are nothing more than LLC's that own/hold Real Estate) have had losses every year to date, however, there are as you pointed out legitimate reasons for this. My SRT is also owned by one of the businesses. I chose to take long term depreciation rather than all in one year. Once its fully depreciated I already have a buyer lined up...ME! As for large businesses with continued losses look at Amazon.com....

I think I saw your point after I hit send LOl hind site is always 20/20 but still didnt want anyone to think they should bail after 3 if they couldnt make money . Glad to see you understand some people just cant seem to grasp it's a game with a rule book ,follow the rule book and win the game .
I depriciated mine out too and if I still have it by the time that ends I will buy it .What ya think it will be worth by them 4-500 bucks <G> I mean shit if it gets sold outright it will be recouped on me lol . The main reason corperate america put more equipment in the garbage than they sell ,too much work and costs in selling rather than just checking the dispossed of box .
Have A Kind Day & A soft tax season
Mike

 

[FerrariTruck]

Wow there is alot of good info here...One quick question, about 6months ago i started my "own business" working under MLM company. Besides the promises of great wealth that i quiclky saw thru, I was interested in how since this was a home business i could use it for tax write off's. Would this bussines be legit to use for tax write off's? I got check these links out..

 

[Hotrodmike]

Wow there is alot of good info here...One quick question, about 6months ago i started my "own business" working under MLM company. Besides the promises of great wealth that i quiclky saw thru, I was interested in how since this was a home business i could use it for tax write off's. Would this bussines be legit to use for tax write off's? I got check these links out..

Yes you could use a home office deduction but make sure the square footage you claim for it is dedicated to the business and work off that percentage of your house for utilities etc . Short of that be careful with the home office deduction ,since so many are using it the IRS watches it a little closer these days
Have A Kind Day
Mike