INVESTMENT

5 Ultimate Tax Tips For Investors And Entrepreneurs

Tax Tips For Investors
5 Ultimate Tax Tips For Investors And Entrepreneurs

What They Are And How They Work!

These tax tips for investors are offered for general information only; and the reader is cautioned to seek competent tax counsel before using it.

Disclaimer:  I am an Amazon Associate; therefore, this post may contain affiliate links for me to earn a commission. RuralMoney.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Set Up A Corporation

You can set up a medical expense reimbursement plan for yourself without including any employees.

Your corporation can own and claim depreciation deductions on your car.

Even if you are in business part-time, you can set up a tax sheltered retirement savings plan.

Work A Swap

How swap works? A swap is an agreement for a financial exchange in which one of the two parties promises to make, with an established frequency, a series of payments, in exchange for receiving another set of payments from the other party. These flows normally respond to interest payments based on the nominal amount of the swap.

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Work a swap of products or services at every opportunity.

Both you and the other guy will save a lot in taxes.

Neither of you will have as much recorded profit on a swap transaction.

Hence, less tax!

Avoid Employees

Have your work done by self-employed independent contractors and save on Social Security Taxes, Unemployment Taxes and Workman’s Compensation Insurance.

It’s what Uber, Lyft, etc. are doing basically.

If You Carry An Inventory

Use the LIFO (Last-In-First-Out) method of valuing your inventory.

Your non-deductible inventory will consist of the oldest items bought before price increases, and you will be deducting the highest-priced materials or merchandise.

When In Doubt-Deduct

The probability of an audit for small businesses with less than $50,000 income is very low.

Chances are your deduction will go through, and even if it doesn’t, it will only cost you the tax you would have paid plus a small interest charge.

Just be sure you have a valid reason for your deduction.

But, don’t get caught on a fraud charge.

It isn’t worth it.

Disclaimer:  I am an Amazon Associate; therefore, this post may contain affiliate links for me to earn a commission. RuralMoney.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

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