[POLL]How do you pay less taxes?

Less taxes <votes are not made public>

  • I pay my taxes on 100% of my income

    Votes: 0 0.0%

  • I declare a lower income and pay less

    Votes: 0 0.0%

  • i don't pay at all

    Votes: 0 0.0%

  • I have an offshore company set up

    Votes: 0 0.0%

  • I am using other methods

    Votes: 1 100.0%
  • Total voters
    1
FrozenSpade

FrozenSpade

Senior Member
Joined
Jul 20, 2008
Messages
803
Reaction score
373
How can I pay less taxes?

Don't be affraid to vote :)
Votes are not made public.
 
Last edited:
Advertise on BHW
Claim all your business expenses as deductions. (Software, computers, web hosting, etc.)

If you're making decent money hire an accountant/tax attorney to go over your taxes. A good accountant will save you significantly more money than they cost. (In terms of helping you find deductions, helping your LEGALLY shelter money from taxes, etc.)

Also, another important way to pay less taxes is to PAY YOUR TAXES. (Oddly enough.) If you dodge the IRS, they WILL eventually catch you and you will continue to pay for it for the rest of your life. (Once you get the IRS on your tail, they'll never leave it. Even if you're legitimate for years. They'll keep auditing you and keep finding ways to screw you over. Don't let short term greed wreck your prospects in the long run.)
 
Last edited:
Incorporate as You, LLC (Limited Liability Corporation) and get a good accountant. Seriously. And if you have an accountant and you're paying more than 15% in taxes, fire them.

The importance of incorporation is that your personal assets are protected. A corporation is treated as a person with regard to all legal and tax matters. If you're really concerned, check into incorporating off-shore. I'm sure there are some members here that will be able to give you some advice.

The importance of having a paid preparer is that if you are audited, your accountant acts as your liaison between the IRS and you. You won't be answering any questions directly. Make sure you get an accountant that's in your corner and able to be a dick when necessary.

-SDT
 
I end up paying quite a bit of taxes because I really have no business deductions to speak of . Most of my traffic is free, I do all my coding myself, and I rarely buy any kind of supplies or anything (and you can only claim things like computers, etc ONCE).

It's a bit dishearting to give away 35% of my income every quarter, but the way I see it, it's a good problem to have. I could be making NO money online.
 
although I never pay taxes... but I work for an accounting company :D

I prefer spending the money for my complete needs first.. later pay taxes for development of our government :)

taxes are used for development of our country :)
 
sdtopensied said:
Incorporate as You, LLC (Limited Liability Corporation) and get a good accountant. Seriously. And if you have an accountant and you're paying more than 15% in taxes, fire them.

The importance of incorporation is that your personal assets are protected. A corporation is treated as a person with regard to all legal and tax matters. If you're really concerned, check into incorporating off-shore. I'm sure there are some members here that will be able to give you some advice.

The importance of having a paid preparer is that if you are audited, your accountant acts as your liaison between the IRS and you. You won't be answering any questions directly. Make sure you get an accountant that's in your corner and able to be a dick when necessary.

-SDT
Click to expand...

If you work for yourself why a LLC and not an S-corp?

More then 15% fire them? Hmmm
 
casinojack said:
If you work for yourself why a LLC and not an S-corp?
Click to expand...

Corporations (both C and S) require significantly more paperwork than LLCs. Also, S-corps have several restrictions that do not apply to LLCs and C-corps. Last, but not least, S-corps are more likely to be audited by the IRS than LLCs.
 
junker said:
no, it goes towards outsized salaries for lazy sponges. old people, school administrators, policeman, other politically connected sleazebags like haliburton and goldman sachs.
Click to expand...


:eek: May be.. But they're the reason for your secure sleep right ?
 
If you work for yourself why a LLC and not an S-corp?

More then 15% fire them? Hmmm
Click to expand...
195471 Summed it up quite well:

Corporations (both C and S) require significantly more paperwork than LLCs. Also, S-corps have several restrictions that do not apply to LLCs and C-corps. Last, but not least, S-corps are more likely to be audited by the IRS than LLCs.
Click to expand...
As far as 15%, a good tax accountant should be able to find enough legal deductions, assuming a context of a small business, to reduce your tax liability to around 15%. A good tax accountant should also be able to give you advice on how to structure your business to facilitate that.

The fact is, a business owner has more deductions available than an employed individual. Warren Buffet stated in a 2007 interview that he paid 17.7% in taxes on the $46,000,000.00 he made the previous tax year. His secretary paid 30% on $60,000.00.

This is as much an illustration of why you should incorporate as much as it is a statement on just how jacked up the U.S. tax system has become.

Code: 
hxxp://www.timesonline.co.uk/tol/money/tax/article1996735.ece
-SDT

LE: Damn typos!
 
Last edited:
Guys I'm not from the US so I don't know what an S-Corp is.

What do you guys deduct?
 
From Wikipedia...

An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.
In general, S Corporations do not pay any income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. This concept is called single taxation; if the corporation is taxed as a C Corporation, it will face double taxation, meaning both the corporation's profits, and the shareholders' dividends, will be taxed.
Click to expand...

A limited liability company (abbreviated L.L.C. or LLC) in the law of the vast majority of United States jurisdictions is a legal form of business company that provides limited liability to its owners. Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation and it is well-suited for companies with a single owner.
Click to expand...

If you're a one man (or woman) show, an LLC is the way to go.

-SDT
 
Sorry...missed your other question.

I deduct mileage on my car for my offline business activities, I depreciate my computer equipment (when I can), I deduct a portion of my phone line expenses, and whatever else my tax accountant tells me to.

I think I mentioned this earlier in the thread, but I would highly recommend hiring a tax accountant if you're going to pay U.S. taxes. They're not as expensive as you might think and they make an audit much less painful because they act as a liaison between you and the IRS.

-SDT
 
sdtopensied your answers help me a lot thanks.

But I will give you an example:
Supposed somebody makes $5k/mo

$5000-
$5 host
$100 car
$50 newsletter
$130 senuke or other tools
$200 Computer components when possible
$115 ads
= still $4400 (in best case)to pay for.
 
Try writing off beer and restaurant expenses. Make up a reason for the "entertainment" and who you were with and write it on the back of the receipt after you pay the bill. The reason can be what you are currently working on, how to implement etc. As long as you have a log, you should be able to get away with it.

Claim you PS3 or Wii as "computer equipment", or home theatre.
 
PS3 Could be considered a form of advertising if your using the Folding@Home application on it and use your company name / url as the team name... Hence as you rank you would get exposure aka. advertising. :)

Just a thought.
 
Exactly.. or use your wii remote as a prop and promote a clickbank product on video then youtube it.. now you have a tax-free wii.
 
What's the $100 expense for (mileage or maintenance)? If you don't have a big enough deduction for mileage on a vehicle, you can look into deducting operating (gas) and maintenance expenses as an alternative.

You can also deduct a portion of your rent/mortgage, utilities (electricity, gas, etc) for the operation of your home office.

A good way to get some ideas for deductions is to download a copy of Tax Cut, Turbo Tax, or your favorite tax program and go through the motions of doing your taxes. These packages usually have a deduction finder that will give you ideas on how to find additional deductions.

For example, in the United States, if you bought a new car in the 2009, you can deduct the sales tax from your tax liability.

At $60,000 per year ($5,000 per month), you're at a 25% marginal tax rate. To get down to the next tax bracket (15%) you'll need to get your taxable income after deductions down to around $33,000.00.

The programs I mentioned above are good, but if you can swing it, the best way to go is a tax accountant.

-SDT

FrozenSpade said:
sdtopensied your answers help me a lot thanks.

But I will give you an example:
Supposed somebody makes $5k/mo

$5000-
$5 host
$100 car
$50 newsletter
$130 senuke or other tools
$200 Computer components when possible
$115 ads
= still $4400 (in best case)to pay for.
Click to expand...
 
Something else just occurred to me. The Warrior Forum has a section called "Mastermind Groups" where people meet on a regular basis at a restaurant, etc. You can get on there and find a group or two to meet with on a regular basis. A portion of those meal expenses are deductible as is the mileage to and from the meeting.

When you eat out, make it a point to talk business as often as you can. I make a note of what was discussed on the back of the receipt. I've been audited before, and my accountant advised me that my notes are what got almost all of my meal expense deductions through the audit.

-SDT
 
sdtopensied said:
Something else just occurred to me. The Warrior Forum has a section called "Mastermind Groups" where people meet on a regular basis at a restaurant, etc. You can get on there and find a group or two to meet with on a regular basis. A portion of those meal expenses are deductible as is the mileage to and from the meeting.

When you eat out, make it a point to talk business as often as you can. I make a note of what was discussed on the back of the receipt. I've been audited before, and my accountant advised me that my notes are what got almost all of my meal expense deductions through the audit.

-SDT
Click to expand...

Very helpful post. Thank you sdtopensied. These answers really help me. If anybody has other ideas just post them here :)
 
Advertise on BHW
You must log in or register to reply here.
Sign up now!

Main Menu

Home Main Forum List Black Hat SEO White Hat SEO BHW Newbie Guide Blogging Black Hat Tools Social Media Downloads

Marketplace

Account Selling Content / Copywriting EBooks / Methods Hosting Misc Proxies For Sale SEO - Link building SEO - Packages Social Media Social Media - Panels Web Design More

Making Money

Affiliate Programs Hire a Freelancer IM Journeys Making Money Pay Per Click Site Flipping Want to Buy

BlackHat World

Dispute Resolution Forum Suggestions & Feedback Introductions Lounge
Back
Top