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Minimizing Taxes by Increasing Expenses

Discussion in 'Business & Tax Advice' started by englandrm, Oct 21, 2011.

  1. englandrm

    englandrm Senior Member

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    Location:
    Canada
    Wyoming LLC.

    Income comes in to the business. Expenses go out. I pay taxes on the profit. (very simple but defined enough for the question)


    How can I increase my expenses, to minimize the profit, which in turn minimizes taxes?

    Is there a way to almost create a holding, that can be liquidated quickly? (gold maybe?) I think I read something about life insurance as well.

    Is this worth looking into more, or should I just suck it up and pay the taxes?
     
  2. Roparadise

    Roparadise BANNED BANNED

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    Create a company in Bulgaria(10% tax rate there) that sells services to your Canadian company. Therefore you lower your taxes and keep more money.
     
  3. Danny1111

    Danny1111 Elite Member

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    I do this

    however up to a certain amount you don't really need records
    over a certain amount you need records
    and then you run into --- is it business related.

    So really you need to get the real numbers from your accountant and at least hear what he has to say on the issue.

    Cause at the end of the day - any IRS problem never goes away until they get their money.
     
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  4. Roparadise

    Roparadise BANNED BANNED

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    He is from Canadia not the USA
     
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  5. neu009

    neu009 Jr. VIP Jr. VIP Premium Member

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    im sure it is just as bad in canada. Taxes are one no no to mess with in the western countries. Will get you more trouble then killing someone while drunk. SO better be sure to do it all the right way.
     
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  6. TeamRoyster

    TeamRoyster Regular Member

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    Fake invoices from people outwith your country! ;)
     
  7. englandrm

    englandrm Senior Member

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    I'm a Canada/US Citizen. Currently live in the US (right by the border) though.
     
  8. Roparadise

    Roparadise BANNED BANNED

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    Then do the what I mention and if you have a car sell your car to your company,so you can write off mileage. You can write off 55 cents per mile.
     
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  9. SuperLinks

    SuperLinks Elite Member

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    I'm not tax professional.

    I'd recommend talking to one though, they can get very creative and provide REAL solutions to this problem while staying within the law.

    Pay the $200-$400 (which is a business expense!), and let them do it right for you.
     
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