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Tax Tips For Your Internet
Business
There are
numerous ways to slash your
taxes. A savvy Internet
business owner recognizes that
these tax saving strategies can
add up to thousands of dollars.
First,
let’s take a look at two ways in
which you can structure your
Internet business. S
corporations and C Corporations
and the tax tools you can use in
each type of structure.
1.) S
Corporations:
- Have
about 75 typical
deductions. If you are
uneducated then you only
have about 10 deductions
available.
-
December 31st year end.
Must do strategy before
December 31st to take
advantage of certain tax
saving strategies.
- Flow
through entity which means
any gain or loss flows
through to you. For
example, if you make $40,000
in a regular job and after
paying for all your business
expenses you have lost
$10,000. You can apply this
loss to the income from your
regular job.
2.) C
Corporations
- Have a
choice of fiscal year end.
Don’t have to use December
31st.
- Have
300 deductions that you can
use to your advantage.
- 15%
tax on the first $50,000 of
net income.
NOTE: S
corporation and sole proprietor
have virtually the same
deductions, but there are a few
differences.
Be aware
that if you use these tax
strategies that you should:
1.)
Audit-proof your record through
the power of documentation.
Keep a tax log. You will have
to answer who, what, when, where
and how much for each
deduction. This shifts the
burden of proof off of you and
on to the IRS.
2.) Label
each deduction as “Reimbursement
Due”. Total up these
deductions. These deductions
can be offset against any future
or back taxes that you owe. In
other words, the IRS won’t write
you a check, but instead cut
your back taxes or future tax
payments.
NOTE: You
can amend past returns as far
back as 3-4 years.
Marketing Tips Provided to
You by:
Matt Bacak, The Powerful
Promoter
Author of Powerful
Promoting Tips |
