3 ms·
No link, but the gist in the US is this: 1) Start Business 2) Get Real Clients to buy your stuff 3) Deduct Expenses 4) Pay 40%* of whatever is left over to
by reboog711 9y ago
No link, but the gist in the US is this:
1) Start Business
2) Get Real Clients to buy your stuff
3) Deduct Expenses
4) Pay 40%* of whatever is left over to the Government
* The 40% number can go up and down depending on your income amount [and local tax commitments].
- SilasX 9y agoThat doesn't reduce your taxes, that just has you personally take on the accounting for an enterprise. It would only work if you could relabel personal expenses as a business expense, which is what I think the parent was looking for (and which is a time-honored practice with its own dangers, of course, but is hard for the IRS to stamp out entirely -- you "lose" a "business" pen and keep using it for personal stuff; how does the IRS know?).
- reboog711 9y agoAs always talk to an accountant. But, the 'deduct expenses' will help reduce taxes.
- pas 9y agoUse a company car, and company pay for gas. You can deduct that as expense. Company phone. Company pays your data plan. Deduct. You register your company at home, okay you can make an office, you can then deduct some expense as facility operational costs. (Of course there are a lot of regulations for this, and you have to document how big the office is, and it can't be bigger than X% of the house, otherwise it'd be income tax hiding - because it'd be the company paying your rent or just giving you money to heat your bedroom, which is not a business expense.) Company sends you overseas on work? Business expense. But if you go there for 2 weeks and then post beach photos on Facebook for every day, you're in big trouble.