Don’t Miss Out on These Overlooked Tax Deductions
Most people and especially business owners are thinking about taxes right now. Some are even on google right now trying to find the best overlooked tax deductions so they don’t get whip-lashed by their tax bill.
Some of the questions on everyone’s mind, and probably yours are:
“How much am I going to owe?”, or “Will I be keeping any money this year?”
These are perfectly legitimate questions, but you don’t need to be thinking like that. If you didn’t know, there is a better way to work your tax situation. It starts with learning how your situation applies to the tax code and how you can then leverage it to your greatest benefit.
Now I know exactly what you’re thinking…he just mentioned “tax code.”
“I couldn’t care less about the stupid tax code.”
And that is a perfectly fine attitude to have, just make sure you have a tax genius in your corner to help you navigate through it all. You don’t need to know it, you just need to work with someone who does. Plus, our posts avoid most of the technical jargon and get you right to the recipes for money making.
Before we get into the saving money part of this, I want you to first adopt a theme about your tax situation (that is, if you care to keep more and pay less in taxes).
Which Bridges are you Crossing?
“I live in Alexandria, Virginia. Near the Supreme Court chambers is a toll bridge across the Potomac. When in a rush, I pay the dollar toll and get home early. However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge.
This bridge was placed outside the downtown Washington, DC area to serve a useful social service, getting drivers to drive the extra mile and help alleviate congestion during the rush hour. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. If, however, I drive the extra mile and drive outside the city of Washington to the free bridge, I am using a legitimate, logical and suitable method of tax avoidance, and am performing a useful social service by doing so.
For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy of life today is that so few people know that the free bridge even exists.”- Louis D Brandeis
To cement this point even further, let me provide some context. This quote was back when the tax code was only 1,000 pages long….
Any guess on how long the tax code is now?
Our YouTube Video can give you the answer.
The need is even more so know that the tax code is 75,000+.
It really is a tragedy that so many taxpayers are getting screwed on their taxes and paying way more than they legally are obligated to. There is a better way like I said and our posts will be a guide to help you learn and adopt that better way. Plus our accounting professionals in Sandy can answer any question you may have.
Hopefully by utilizing these overlooked tax deductions below you’ll be on your way to more cash in your pockets and the ability to provide more for you and your family that depend on it.
Who doesn’t like to get away every once in a while? Unless you are weird, you probably like taking vacations.
How do you turn it into a business expense?
Let’s ask a few questions to help answer that already posed question J
Q: Where can you find customers?
A: Potentially ANYWHERE
Q: Where can you research things that can improve your business?
A: Potentially ANYWHERE
Q: Where are locations you might consider opening up a new branch of your business?
A: Potentially ANYWHERE
For most businesses, the answer is, “potentially anywhere.”
So with a little bit of planning, you could deduct your trips anywhere in the world.
The overall concept is that if more than half of your travel days are considered business purpose then you can deduct the trip.
The day you are actually traveling is considered a business day. Then you need business days in between the travel days.
A travel day: Any day you are sleeping away from your home for a business reason.
A business day: When you conduct business or meet with someone for a “bona fide” business reason regardless of how long the business stuff is happening.
The biggest point is to make sure you have your trips planned out. Also, make sure you track everything. Track it all. If you follow the guidelines I just mentioned and track everything, then there is no reason that you won’t be able to claim all of your travel as a tax deduction.
Another common question we get is, “Do I really have to keep a mileage log?” If you want the deduction to withstand an audit, then yes you need to. It actually isn’t that hard to do. Like most good things in life, it just requires creating the good habit.
How do we keep track?
Each day I reset my car odometer. This way when I get in my car the next morning, I know how many miles I drove the day before. I write that number next to the proper date. On the days I don’t drive (like Saturday or Sunday’s), I put in zeros.
For a proper mileage log to be accepted by the IRS, you need 3 things:
- The date
- The miles you drove
- The business purpose to the miles.
If you want to see the template I use, just email firstname.lastname@example.org and we can email it to you.
Now you just need to document the business purpose. I happen to keep my schedule and calendar in electronic format. So once per year, I print my calendar to pdf format and save it. Now with my mileage log and calendar, I have an IRS acceptable mileage log.
I wasn’t going to do this…but I thought it fit right in.
This deduction I’m sharing is as close to a silver bullet as it comes. I won’t go into too much detail, but just know as an overview the IRS hates when we educate our clients on this strategy. Because it’s a legal loophole to help you keep THOUSANDS.
The basics of it are you as a business owner get to rent out your house to your business for meetings. There is tax code which explains if you do it for a certain number of days you don’t have to pick it up as income.
Looking to Save More Money?
If you’d like a FREE packet (normally $89) that will literally give you all the details and the exact rules on how much money you can save from it just do the following:
- Call 801-999-8295
- Tell our receptionist you read this post and need to talk with on of our tax geniuses about getting a FREE Corp Rent Packet.
- We will take it from there and get you on your way to thousands more dollars!
- *This will only be available for a limited time