The corporate tax that is imposed on every for profit business organization is on their profits that they made for any fiscal year. Their net worth has no bearing on the tax liability.
She didn’t have an office at home to work from. She didn’t even have a desk. But she had an ironing board, standing in the dining room with clothes piled high. She made her ironing board her desk. She reached out to friends and neighbors, who became her customers and business associates. Fueled by her desire to help others, as well as take control of her own life, she achieved extraordinary success over the next 18 months, hitting the second highest rank in her network marketing company. All working from home, working from her ironing board.
And so it is with everything else. Even in major consultancy projects, the consultant will leave volumes of the completed project papers, complete with executive summary, appendices, schedules, the whole works. If you’ve been a client of such consulting, have you got the feeling that (after going through the papers) “so what’s the consultant asking us to do?”.
When you add up all the possible deductions, you will be surprised (and we guess glad) to see how much you can save on your tax bill. We know tax preparation can be a daunting experience for many, and most of us can’t afford to hire a Torrance CPA. That’s where tax preparation software saves the day. There are several titles available, simply do a search on “US tax software” and you’ll get several to choose from. We personally have used Turbo Tax (yes, the software cost is deductible) for several years and it makes figuring out your business taxes a breeze. It saves hours of time pouring over the IRS publications and helps you find deductions you may not have otherwise thought you had available.
If you have been audited in the recent past, the same issue may be present on your current return. A tax professional can make sure this is not the case. Having been audited in the past means that your current return may be “flagged” by the IRS for audit. Hiring a tax profession can make sure no problems are found again this year – removing the likelihood of an audit in the future. Also consider that if you are audited, your tax professional is in an excellent position to deal with the IRS. They have a dog in the fight and well aggressively pursue your case.
It may be that we feel that only big businesses can afford to outsource. With freelancing available in all aspects of marketing and development, outsourcing is now affordable and available to the masses.
Another ideal way to optimize a clean sweep is as you are packing to move to another residence. You apply the guideline questions, but a much grader scale, the key is to evaluate everything you pack with extreme prejudiced. After all, if you trash it, give it away, or sell it, you will have to pack and move it! The extra space you will have in your new home will astound and please you and make you proud of your clean sweep.