Misleading Tax System v. Educated Tax System
Where both of these methods differ the line under your income in your pay stub is. With the ignorant tax system, you take the three lines under your revenue and the remaining is what you get. With the intelligent tax system, the very first line can be your documented revenue as with the ignorant tax system. Dig up extra info on our related website by clicking www.gladstonestrategies.com. But, the next line may be the money you spent on the business, and you pay taxes on what's left. The reason being when a business spends money it is called a business expense or tax deduction. Consequently, having your own business and being inside the educated tax process, you are able to lower your taxes by 40-70%. To break this down even further: If you're making $35,000 annually this can save yourself you up to $10,000. Which means it will not matter if you're making millions of dollars or even a few thousand dollars. These strategies apply to you! A marginally profitable business can be a successful business by making use of these strategies.
An incident study: One-of my students, Stephanie, was making $50,000 per year. She took these strategies to her CPA who'd been dealing with her people for many years and always had her best interest in mind. He answered that although this system appeared interesting, he was already applying every discount available able to her. Stephanies CPA consented to take part in a conference call with me at Stephanies request. Stephanies CPA explained that she was spending $12,000 in taxes. While it was much less than the average person, she could have been spending even less. Visiting http://gladstonestrategies.com probably provides suggestions you can use with your mom. I presented three strategies: helping her to cut back her FICA, deducting her health, deducting education (both her and her daughters). We could lower her total taxes paid to $800. In fifteen minutes and with only three techniques, we were able to save her over $11,200!
I have had students save well over $100,000. Consider what you might do with that money!
We could start with changing your greatest expenses in-to business expenses. We could teach you lesser known discounts (e.g. travel and entertainment, medical, classes, books, etc.) and move them up to business expenses. You pay them with pre-tax dollars and not after-tax dollars, lowering your taxable income..