This is from my CPA’s weekly newsletter. EVERYONE needs to be doing these easy things to keep more of the money they make for their own benefit.
By: Tom Wheelright
Taxes can be a powerful tool to build your wealth. View every day as an opportunity to reduce your taxes.
The general population views taxes as something you deal with once a year. I look at taxes differently. Taxes are a tool that can help you create wealth, and what better way to do this than every single day!
Every day you have opportunities to reduce your taxes.
When you are making money, there is an opportunity to reduce your taxes.
When you are spending money, there is an opportunity to reduce your taxes.
When you have a new investment, there is an opportunity to reduce your taxes.
When you make a new deal for your business, whether it’s with a vendor, a customer or an employee, there is an opportunity to reduce your taxes.
Making it a habit to look at every day as an opportunity to reduce your taxes will create the right habits to actually reduce your taxes.
What did you do today that may reduce your taxes?
– Did you buy breakfast, lunch or dinner?
– Did you drive your vehicle for your business or real estate investing?
– Did you go shopping?
– Did you attend a seminar?
– Did you get an early start on holiday gift buying?
– Did you make an investment today?
– Did you hire a new professional for your team?
– Did you sell an investment?
– Did you make travel plans (even if for the holidays)?
– Did you file (or throw away) receipts?
This is just a small list of what many of us do on a daily basis. All have the opportunity to reduce our taxes.
Make Tax Savings a Daily Habit
It really boils down to focusing on where your money comes from and where it goes.
When you make money, think about how the money will be taxed. Are there better ways to receive your money so it is taxed in more favorable ways?
When you spend money, consider how it can be a legitimate deduction for your business or investing activity. If it can, then be sure to keep the proper receipts and documentation. And, make sure your business or investing activity pays for the expense if you have separate entities for these activities.
Here’s a daily habit I have.
I carry my business credit card and a manila folder with me at all times. Having my business credit card on me makes it very easy to have my business pay for my business expenses.
When I use my business credit card, I write the business purpose and other notes on the receipt. These notes give me the proper documentation to support my expense as a business expense. Then I put the receipt in the folder. The next time I’m in the office, I hand over the receipts to my assistant who scans and files them.
With this habit, my business is properly paying for the expenses and I can easily pull up the documentation to support my expenses at any time. You may notice that this is not a fancy system. But it works, because I do it the same way every time. My receipts don’t get lost, I know exactly what they are for and my tax savings are protected.
Imagine how different this scenario would be if I tried to do the documentation and filing only once a year!
There are many opportunities available to business owners and investors in the tax law to reduce their taxes. Understanding how these rules apply to you will help you create the habits in your daily routine to reduce your taxes.
Get Started Now
As I have been sharing, the government wants you to reduce your taxes! The tax law is a series of stimulus packages for real estate investors and business owners.
Reduce your taxes now!