We often look for tax saving tips when it's time to file our tax return. But after the year is over, it's too late to take advantage of any free tax help that you could have put to use during the year.
Learn now to save now.
You know the saying:
The only things certain in life are death and taxes.
It doesn't make sense to wait until the end to save your life. So why only wait until the end of the year to save taxes when you can possibly save all year long? Learn these 5 simple tax saving tips so you can save throughout the year. Come on, Uncle Sam can wait.
Having a business not only helps you protect your assets, it allows you to take tax deductions on business related expenses. Our website is owned by our LLC. It allows us to write off business related expenses like Internet charges, meals, and even coaching programs.
Even when we experienced a capital losses with real estate, we are able to take these tax write offs using our LLC.
Think about it this way. You gave Uncle Sam a loan. You gave it to him interest free. And, you incur lost opportunity cost since you give up the possibility to invest it to earn you more money. Now, how does that make you feel?
Here's what you do. Take your W-4 to your tax strategist or accountant. Take every deduction that you can so it increases your monthly cash flow. I aim to take enough deductions to where we owe nothing at the end of the year.
One of the tax saving tips I often hear from people is to max out your tax deferred investment plans. This is a fallacy. 401k retirement plans are tax deferred investments. This means you put off paying taxes. You will eventually pay your taxes at the end.
Ask people if they think taxes will go up or down in the future. I say UP.
We intend on raising our income level every year, and would rather pay the taxes now at a lower tax bracket than later when it is higher. I often hear the argument, "But when you retire, you'll be in a lower bracket." That's a whole different discussion.
Once again, you have to opportunity to help and save at the same time.
Learn these tax saving tips to give yourself the greatest advantage. Death may be certain, but paying too much in taxes doesn't have to be.
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