tax planning services

tax planning services

Tax planning at its best

Knowing the law on income tax is not enough. To provide value to taxpayers knowledge of laws Prosecutors must be combined with effective tax planning strategies to generate maximum benefit. What would you if you have a gardening business with future events and circumstances? I tell you what I'd do.

While having a quiet night in a restaurant Local, listening to music in a local band, I approached a friend who just started a landscaping business. It is married with a young girl, age twelve. You will have a gross income of $ 48,000 and receive a 1099 for their efforts. His first question to me is how you should go and make quarterly payments of estimated tax to cover the costs of tax revenue and social contributions (SE tax). My answer was for him, "Hold On Young there. Let's have a discussion of the facts and circumstances before proceeding.

While the band played the beautiful music and a gentle summer breeze cooled the restaurant patrons, I asked our young entrepreneur If you need to buy a new truck for his business. His answer was not only yes, but he informed me that he has already chosen the same and knows the costs will be $ 35,000. In this case, you can deduct the total cost of this new truck in a year under the section of the Internal Revenue Code 179. This allows the cancellation of new property placed in service up to $ 125,000 a year. Because this type of funding is the truck more than four or five years, it becomes a great advantage to get the biggest refund without having to spend lots of money. The estimated revenue from all activities trade is now reduced $ 13,000.

During our ongoing discussion, my friend told me of his desire to provide for the education of their daughters in college. 529 has been mentioned, but I had a better idea. And if we put your daughter on the payroll of your company $ 5,000 (near the standard deduction for all individual taxpayers)? This will also reduce their exposure to tax on income and self-employment tax. Your daughter will not have a standard tax deduction will reduce their tax exposure to zero. Furthermore, there is no exposure to the social security tax on the wages of his daughter because she is older and less work for unincorporated in his father's business. The projected net income is now reduced to $ 8,000. If our hero is teamed up with his wife, who owns a liability and would not participate in daily activities of the company and its exposure to SE tax is halved (assuming an interest Partnership 50-50). Overall, the tax on the total exposure for 2007 is $ 1400 which includes the SE tax. This before deduction of taxes other than the couple may have. In any case, no need to pay taxes on earnings in the first year.

For the future, offers two years of hope that a pension plan has been formed to protect certain income and deduction of trucks used in the current year. There will also be able to claim a home office deduction as my friend takes care of the whole operation and takes her home. Believe it or not, the conversation lasted about twenty minutes. My dessert had arrived and it was time to resolve issues hand. He even invited me to sing some songs with the group. I always say, never trust an accountant who can not sing and dance.

Ron Piner, CPA
Host of "Better Business"
Saturday morning at 10 and
ON WBIS AM 1190
www.wbis1190.com
www.mwibonline.com
taxguy9@hotmail.com

About the Author

How many people have to find the services of corporate tax IBSN? What are your views?

I have found the service IBSN corporate tax very pathetic. Do you also agree? I have sweated in the submission of my tax returns until last minute -April 15 Is there a way to reach them, when none of your numbers are attainable. Once payment is made, do not bother to look at your data or make the presentation. I intend to stop payment by calling the credit card company.

I agree with you 100%. They suck

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