Why Paying Less Tax is the Best ROI You Can Get

[Diane Kennedy]

Most people who are at this forum are looking for ways to make money through business and/or investments. And, many of them haven't started yet.

I think that's the most costly mistake you could make.

And, I'm not talking about lost opportunity from the business. I'm talking about the tax savings you get by just getting started. It's the best return there is. Little investment cost and huge savings that you put directly in your pocket. If you had a chance to make $10,000 or save $10,000 in taxes, take the tax savings everyday.

So, for any of you who are wondering what on earth they can do to have more money: If you're paying taxes and don't have a business, start one. You'll put money in your pocket.

Real life case study:

About 8 years ago, I met Sean who had been working as an employee for $50,000 per year. He has completely strapped. His credit cards were maxed out and the tires were shot on his car. He worried everyday that he would blow out a tire and not be able to afford to get it fixed.

Then, making things even worse (or so it seemed), he got laid off. He found a “job” right away at the same wage…only it was as an independent contractor, not an employee. He formed a business structure so that he didn’t have to pay self-employment tax and could write off a lot of expenses that had now become business deductions.

At the end of the year, after making EXACTLY the same amount of money, he had $10,000 in his pocket.

He didn’t change the AMOUNT of money he made. He changed the WAY he made money.

Stop testing. Stop investigating. Stop analyzing. Take action! This doesn't have to be the business of your dreams. You're doing this one for your bank account.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MJ DeMarco]

I couldn't agree more ... having a business entity is the first step [choice] (even if you are working 60hrs/week for the man). When you pay the government LAST vs FIRST, you get to the starting line.

To add some more credence to Diane's point, I have a friend who is a wonderful artist and sells a few thousand dollars in paintings. I recommended that she start an LLC -- doing so would render most of her painting income TAX-FREE as she deducted her paint supplies and 1/5 of the home which was an art room as well as various other expenses. Her tax refund also would increase.

 

[Bilgefisher]

While I'm working, I consider any tax breaks my pay raises.

 

[^eagle^]

I'm buying an REO As my primary residence and if the new foreclosure relief bill passes I will get a 7000 tax CREDIT over two years.

IOW The government is giving 3500 dollars a year back to me of my hard earned money That they would normally take.

Sounds like a good deal to me.

Plus I should make about 25000 dollars in instant/sweat equity.

Also as a single father i can file head of Household with a Non qualifying dependant. I learned that this year so I got 250 dollars back from 2006 as well as a tax break in 2007.

So when I start up an internet business I should form an LLC first because I can deduct my office space I use in my new home!

Same with my RE ventures.

I love America!:smx1::love1:

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.