Whenever the issue of business taxes reduction is raised, most people
usually think of evasion as the easiest way to get it done. This is
possible but very risky. It can mean the shut down of your company and
the blockage of your name in the business industry. Instead of being
tempted to do so, lean towards the legal ways on lowering the amount of
your legal dues. The tax deductibles provided by the government may seem
limited. On the other hand, studying them in-depth and utilizing every
bit of them can help you get a substantial amount of deductions.
Regardless
of the size of your business or company, tax calculation can be made to
work for your advantage. This can be a reality on your part if you
decide to have a plan that will get all important factors organized.
Putting your goal in mind, list all the expenditures that you have
incurred by the start of the financial year. Continue doing so up to end
of the financial year. Be sure to have accompanying documentation of
all these expenditures no matter how small they are. All spending that
have legitimate business purpose can be deducted from your taxes.
Here
are some examples in connection to the above-mentioned concept. Taking
friends out for dinner who are asking things about your business or
company would not qualify for deductions. Entertaining clients, on the
other hand, can qualify as its very purpose happens for your business to
acquire increased sales. Perhaps, you have to cars - one is personal
use and the other is for business use. If by any chance you will need
your personal car to make deliveries to clients as your business car is
already in use, you can declare the gasoline fees for the days it was
used as deductibles from your business taxes provided that corresponding
receipts are available.
Other items which can lower the amount
of your legal dues are your contributions to medical plans and
retirement plans. Being a business owner and self-employed individual,
you are entitled to secure your health and your future through these
arrangements and the government is willing to give you assistance on
that. Medical reimbursements and bad debts can also help reduce the
amount the government needs from you. Are you fond of sharing your
blessings to the less fortunate? If yes, you can also declare your gifts
to charity as legal deductibles.
Holding a number of employees
to perform the daily operations your company involves is quite expensive
too. Review every task assigned to all your employees and see which of
them can be assigned to a couple of contractors. Contractors need not be
provided with all the legal benefits enjoyed by regular employees. If
you have more contractors and less employees, you can substantially
reduce your business taxes. One drawback which doing so can pose upon
your company is the low quality of work that you might get. This could
happen is you are changing contractors any time.
Article Source: http://EzineArticles.com/8106057
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