| One of the key secrets to tilting the tax laws in your | | | | Gazelle Trainer that you've seen on television - not to |
| favor is to own your own business and shift the taxing | | | | mention free weights, a work out bench, etc - are all |
| structure to your advantage. In this article, we are | | | | tax deductible through your company. |
| going to cover just a small fraction of the 300 | | | | 4. Business Gifts: Your company can give gifts to |
| deductions that are available to you as a business | | | | individuals of up to $25.00 per year. Often, these gifts |
| owner. | | | | are given as year -end or holiday bonuses. But a little |
| But first, I'd like to start with a question: At any point in | | | | known nuance is that your company's gifts to other |
| your life, did your accountant make it a point to do a | | | | companies are unlimited. So I suppose your company |
| comprehensive review of the tax deductions that you | | | | could give a corporate gym membership away to your |
| can put to work for you? If you are like most people, | | | | friend's company. I I can't see any reason for your |
| the answer is probably not. I don't mean that as a slam | | | | friend's company to provide a corporate gym |
| against accountants. It's simply a wake up call to the | | | | membership to your company in return. |
| fact that most accountants and C.P.A.'s are simply | | | | 5. Meals and Lodging: Under section 119, your company |
| income tax preparers, not income tax planners. They | | | | can cover the costs of meals and hotel expenses |
| may do a fine job of preparing tax returns but the | | | | required for overnight stays. These trips might involve |
| information that you are now learning is simply outside | | | | researching new products, better sources of supplies, |
| the scope of their services. | | | | new real estate deals, etc. |
| With that as a background, let's take some time to | | | | 6. Put Your Kids on the Payroll: Instead of paying your |
| highlight a few of the more powerful, yet lesser-known | | | | kids an allowance, hire your kids and put them to work. |
| deductions that are available. When I speak at | | | | They'll learn first hand, the importance of having their |
| seminars, I often teach people about my Top-Ten | | | | own business, and their salary is fully tax deductible. |
| favorites or what I sometimes call "The Golden Tax | | | | 7. Seminars: Your company can pay for the cost of |
| Secrets". In no particular order, they are: | | | | educational seminars- even if they have nothing to do |
| 1. Achievement Awards: Each year, your company | | | | with your current business. So, for example, if you |
| can give away to its employees three separate | | | | want to learn how to invest in foreclosures, your |
| awards. Each of these awards is worth up to $1,600 | | | | comapy can pay the freight. What about things like |
| per year in kind. That means that you can't write the | | | | golf lessons, ski lessons, dance lessons or scuba |
| employee a check for $1,600, but rather, you can | | | | diving? These can all be included! |
| present him or her a tax deductible gift (in kind). | | | | 8. Dependant Care Plan: The tax code allows you to |
| Examples include ski equipment, a plasma TV, golf | | | | deduct up to $5,250 for the costs associated with |
| clubs, cookware, etc. You get the idea. The gift can | | | | caring for dependants This includes young children and |
| really be anything other than cash. | | | | our adult parents who, nowadays often have to turn |
| The first gift is for longevity. This is reserved to | | | | to us for help. |
| companies in existence for five years or more. You | | | | 9. Moving Expenses: Your company can pay the cost |
| can present the gift to your longest standing employee | | | | of an executive move - whether it is across town or |
| and if you are the ONLY employee of the company, | | | | across the country. |
| then this would definitely be YOU. | | | | 10. Your Retirement Plan. Your company can establish |
| The second is gift is for safety. This gift is typically | | | | its own retirement plan. It can include you, your spouse |
| reserved for companies in a risky business like | | | | and even your kids. There are MANY different types |
| construction or a factory. I suppose rehabbing real | | | | of retirement plans to choose from, and a retirement |
| estate would qualify. | | | | specialist can help you choose the best types of plans |
| The third gift is for sales excellence. You can award | | | | for you and your family. Imagine hiring your child, |
| your best salesperson this award based on their | | | | grandchild, or niece/nephew to work for your business |
| outstanding performance during the previous year. | | | | and paying them a tax deductible salary which they |
| 2. Your Annual Corporate meeting: The law requires | | | | place into a tax deductible retirement fund from the |
| you to update your formal corporate documents each | | | | time they are age 7. You might also want to self-direct |
| year. This includes keeping accurate financial records, | | | | that plan into your favorite investments. Just imagine |
| corporate resolutions and minutes, etc. So, as the | | | | the financial head start that would give them. |
| owner of your business, you can combine your annual | | | | And those are just ten of my favorites. There are |
| meeting with a vacation, kill two birds with one stone | | | | many more available to help you save on taxes. By |
| and make the entire trip tax deductible! And you can | | | | applying these tax deductions, along with the other 300 |
| bring your family, too. | | | | deductions available to business owners, you can save |
| 3. Your Corporate Gym: Unfortunately, the IRS won't | | | | yourself thousands of dollars each year on your tax bill. |
| let you directly deduct the cost of your gym | | | | Take some time to see what deductions are available |
| membership. However, under section 132 (h) of the tax | | | | to you, and be sure you aren't overpaying your taxes |
| code, you can deduct the cost of the Gym equipment. | | | | like millions of other Americans! |
| So that Nautilus set, your Bow Flex machine, even the | | | | |