Tax Savings Strategies
Financial success helps to determine a lot of the actions we take in life, and in light of this fact: keeping more of what you earn can be as important as how much you earn. Making sure that taxes eat up less and less of your paycheck is an important element to anyone’s financial success. CPA’S and tax preparers often times seem more like IRS compliance officers than tax reduction specialists. Their education is focused more on what they can’t do then on what they can do to reduce their client’s tax burden.
CPA’s will often do the books for different companies on a daily basis and some do taxes as well, but most tax preparers are interested primarily in doing as many returns as possible in that window between Jan 1st and April 15th. There are firms that specialize in tax planning and these firms go the extra mile in making sure that you get full advantage of the tax code while at the same time making sure that you never step over the IRS line for non compliance.
Most deductions in today’s world come from being self employed or having your own business. The proper use of the legal entities for tax purposes is very important because different entities are allowed to take advantage of different laws. There are laws on the books that can be used to take serious deductions that will be life changing savings. If asked about these laws, most tax preparers have no idea that these laws even exist.
One of the most common questions we are asked is “why doesn’t my accountant know about these laws”, and the only real answer is that even though they are legal and work for anybody with their own business, these laws were intended and created for the super wealthy and are not publicized by the IRS. That doesn’t mean that they won’t work for you, because they will and they will always pass the muster from the IRS.