Just a few of these secret loopholes can save you thousands in taxes every year!
There are so many, where do I begin? The tax law is filled with so many—you can’t do this, unless that–rules, it’s ridiculous. So it’s important to document everything you do and that way you’ll be safe.
Tax loopholes are everywhere, but you must be aware of them in order to use them. Not only must you be aware, you must know all the rules associated with each one in order to use them. So please….
Make sure you understand the rules associated with each loophole and check with your tax advisor to be sure you are doing everything right.
Normally not deductible. But if you are out of town on business overnight, you can write of the cost of hair cuts, getting your nails done, etc. You can also write off cleaning and laundering clothing when out of town overnight. Normally, only uniforms maintenance are deductible, not street clothes.
Anytime you seek the professional advice of a consultant to help you in your business or with your taxes, you can write it off! So if you don’t know, get some help and lower your taxes at the same time! (Any amounts paid to your tax professional are also deductible.)
3. Private School:
Write off the cost of sending your child to the best school in town by putting your child on the payroll. Use the wages to pay tuition, fund extracurricular activities, allowance or an IRA for your child. Your business gets the write off!
4. Employee Achievement Awards:
Get $1600 TAX FREE & your business gets the deduction! Employee Achivement Awards can be given for length of service or for safety.
5. Athletic Facility:
If you operate a home business and you have a pool or gym equipment, you can write of purchase, maintenance, repair and depreciation of the facilities! The only stipulation here is, the facility must be open to all employees!
Your company can get a $5000 deduction for daycare each year for your child. If you write it off on your personal return, you only get a $600 credit.
Fees paid to professional associations, chambers of commerce, better business bureau, masterminding and networking groups are deductible. You should consider these fees an investment because they can very well be used to increase your knowledge or business clientele.
If you have formed a corporation, LLC, partnership or s-corporation and you office is in your home, you can lease that office space to your company and collect a rent check every month. Of course, you will have to claim the rent as income on your personal return, but against it you can write off depreciation of your home, utilities, taxes, insurance, etc. If done correctly, it results in a loss and a lower tax liability.
The cost of roundtrip travel, hotel, group activities, training materials and admission fees to seminars, workshops, classes and conferences are deductible.
10. Office Decor:
The cost of decorating your office–painting, plants, wallpaper, furniture, office equipment, etc is deductible.
If you give your customers a discount in order to attract more business, your income is decreased which means you pay tax on less money!
Take classes to improve your skills and write it off on your taxes. For college courses, you can deduct $5250 per year.
13. Fees to Credit Card Services:
If your business accepts credit cards, the bank is taking a fee before depositing money into your account. You can write it off.
14. Business Losses:
Called a “Net Operating Loss” (NOL), it can be carried back to receive a refund from previous years or carried forward 20 years to help keep you from paying taxes later!
15. Property Manager:
If you have rental property, you can hire your teenage child or aging parent to manage it, pay them a salary and get the write off!
Save $30,000-$50,000 on your next tax return...LEGALLY!
This handy little guide gives you numerous savvy tax strategies that guarantee the Internal Revenue Service doesn’t find a way to disallow your tax deductions.
Learn to keep all the records the IRS needs to substantiate your tax return. This simple system has been getting my clients big refunds for the last 20 years.
Get more info about reducing your taxes from America’s leading tax professionals!