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I'll add to the advice you have received regarding getting a good accountant by suggesting you might want to use a good accounting firm rather than a single acc

I'll add to the advice you have received regarding getting a good accountant by suggesting you might want to use a good accounting firm rather than a single accountant. Depending on where you live, you might be able to get a sense of whether or not there's a dominant firm that is handling financial matters for local businesses. I switched from using a single guy someone recommended to a real accounting firm years ago. The guy was good, no question about it, however, the accounting firm has far more depth. They also have a deeper/wider network through their client base that has come in very handy at times. Don't pay more taxes than you are legally obligated to. Don't pay less either. Many people confuse tax optimization strategies with greed or some other derogatory term. When you order a pizza or buy a laptop you optimize for obtaining the computer you want at the lowest possible cost. Taxes are no different from this, the laws (federal and state) establish a procedure through which you calculate how much you owe. These laws are so complex that most people and lots of businesses pay more than they should. That is wrong. A good accounting firm, and, perhaps, a tax attorney, can guide you on how to apply federal and state tax codes to determine how much you owe. Pay what you owe, no more, no less. While you run a web-based service, you can still take advantage of Section 179 deductions. Make sure to discuss this with your accountant and understand how to use this valuable tool. As someone else mentioned, don't assume this will last forever. Do not give away piles of cash recklessly only to find yourself in trouble years from now. I am of the idea that what philanthropic billionaires do is the right approach. Accumulate wealth over time. Maximize this for as long as you can. Use the time to learn and understand where you might be able to have the most impact if you put a non-trivial amount of money on the table. Then, once secure in your convictions and with your financial future on a solid footing, became the person who supports the worthy causes you identified and studied while you put money aside. You can't create a great building without a large and solid foundation. Build that foundation first. Don't be in a hurry to burn money just because you don't currently know enough to know what to do with it. And please, pretty please, with sugar on top, do not give a dime to politicians --of any political party-- they are all a waste of time and money. What to support is a personal decision that will likely benefit from reflection and learning over time. Imagine a day, several decades from now, when you might be able to support a worthy cause with millions of dollars. That would be something, wouldn't it? If you have a need to help out today, here's one suggestion: https://www.stjude.org/ https://www.stjude.org/

HWR_14 5y ago
There is a difference in using tax avoidance programs the way they were designed (eg socking away money in a 401k) and taking advantage of tax loopholes, morally at least. Yes, no one wants to pay extra for a laptop, but it's not moral to take advantage of a website error which accidentally did all the math in cents as opposed to dollars to buy 100 top end laptops for $30/each.
- robomartin 5y ago
  I don't understand your point of view. If the tax code says that I can obtain a tax credit for investing in solar panels, I buy a shitload of solar panels and get a massive tax credit. That's legal and also deemed moral. It was codified into the tax code as something society wants me to do. If I take all of my profits at the end of the year and spend a pile of cash buying equipment under section 179 of the tax code, I might very well end-up paying zero taxes and my even get a refund. If I amortize equipment over several years based on the schedule mandated by the tax code and, as a result, obtain tax benefits, it will reduce or eliminate a large chunk of taxes due. All of this, and more, much more, is in the tax code. Society, through our representatives, decided these are worthwhile investments that result in benefits for all. Enough so that they are incentivized through deductions or tax credits. This is moral, ethical and absolutely 100% legal. You website error is a ridiculous attempt to equate deductions and credits that exist in the tax code with stealing. How dare you? If you think I should not be entitled to a tax deduction when I choose to spend $250K in equipment at the end of the year, then go talk to your representatives and have these provisions removed. Until then, stop vilifying perfectly legal and REQUIRED tax accounting regulations. I say "required" because your accountant has the legal responsibility to manage your tax filing in accordance with the law. I could sue my accounting firm if they systematically neglected to file taxes in accordance with the law. I love it when people go on and on about businesses paying zero taxes. It reveals complete ignorance of how money, business and the tax system works. Some businesses wouldn't even be viable without the tax code codifying what society wants them to do. Solar and electric vehicles are perfect examples of this.
  - HWR_14 5y ago

HWR_14 5y ago

There is a difference in using tax avoidance programs the way they were designed (eg socking away money in a 401k) and taking advantage of tax loopholes, morally at least. Yes, no one wants to pay extra for a laptop, but it's not moral to take advantage of a website error which accidentally did all the math in cents as opposed to dollars to buy 100 top end laptops for $30/each.

robomartin 5y ago
I don't understand your point of view. If the tax code says that I can obtain a tax credit for investing in solar panels, I buy a shitload of solar panels and get a massive tax credit. That's legal and also deemed moral. It was codified into the tax code as something society wants me to do. If I take all of my profits at the end of the year and spend a pile of cash buying equipment under section 179 of the tax code, I might very well end-up paying zero taxes and my even get a refund. If I amortize equipment over several years based on the schedule mandated by the tax code and, as a result, obtain tax benefits, it will reduce or eliminate a large chunk of taxes due. All of this, and more, much more, is in the tax code. Society, through our representatives, decided these are worthwhile investments that result in benefits for all. Enough so that they are incentivized through deductions or tax credits. This is moral, ethical and absolutely 100% legal. You website error is a ridiculous attempt to equate deductions and credits that exist in the tax code with stealing. How dare you? If you think I should not be entitled to a tax deduction when I choose to spend $250K in equipment at the end of the year, then go talk to your representatives and have these provisions removed. Until then, stop vilifying perfectly legal and REQUIRED tax accounting regulations. I say "required" because your accountant has the legal responsibility to manage your tax filing in accordance with the law. I could sue my accounting firm if they systematically neglected to file taxes in accordance with the law. I love it when people go on and on about businesses paying zero taxes. It reveals complete ignorance of how money, business and the tax system works. Some businesses wouldn't even be viable without the tax code codifying what society wants them to do. Solar and electric vehicles are perfect examples of this.
- HWR_14 5y ago