Does anyone have any ideas on getting your tax bill down when your self-employed?
2006-12-15 03:34:25 · 5 answers · asked by prncfnfrvr 2 in Business & Finance ➔ Taxes ➔ United States
Legal ideas only please.
2006-12-15 03:37:56 · update #1
Find a good CPA in your state with at least 5 years of experience, specifically in self-employed/small business tax preparation. They will be able to tell you all the applicable deductions and laws for your state.
Some common deductions that are pretty much statewide are a percentage of your mortgage if you own a home and you have a home office that is used only for business, electric bill, equipment, phone bill if you have at least 2 lines and one of them is used only for business, gas for meetings, lunches, training... I could go on and on but again you want to discuss this matter with a CPA and bring all your receipts!
Hope this helps!
2006-12-15 04:12:34 · answer #1 · answered by youngwahm 2 · 1⤊ 0⤋
Your question is like asking a doctor who has never seen you before what he plans to do to relieve you pain. Income taxes are a complicated bunch of laws and rules designed to tax your income but the congress has protected some of that income with "deductions" for those things that they think shouldn't be taxed. The tax code is about 35,000 pages long and would take awhile to explain and guess which part apply to your situation. The best advise you can get is to go see a tax professional and seek their advise. There are tons of deductions for self employed folks and they will help you find the ones that apply to your profession.
2006-12-15 03:50:51 · answer #2 · answered by ? 6 · 1⤊ 0⤋
Capture all of your expenses related to the business. If you don't have employees start a retirement plan before 12/31/06. Maybe a 401K will work for you, it would allow you to put up To $15,000 away for your retirement and deduct it this year. If you pay for your health insurance 100% of the premium is deductible on the front of your return. If you pay monthly pay Jan. in Dec.
2006-12-15 03:53:17 · answer #3 · answered by waggy_33 6 · 1⤊ 0⤋
If you make a descent amount of money, get a tax consultant to do your taxes. It will cost you $100-$300, but your savings could be so much more. They will know rules and regulations you could not possibly think of that is tax deductible.
2006-12-15 03:47:34 · answer #4 · answered by nutwpinut 5 · 2⤊ 0⤋
Deductions: Make sure you tell your tax preparer all the thing you bought for the business and also (really important) make sure you have all receips for those purchases because for the this upcoming tax season there will be alot of audits and make sure you have proof of evreything.
2006-12-15 03:44:14 · answer #5 · answered by LIZ 3 · 1⤊ 0⤋