Two things are certain in life: death and taxes. The famous quote by Benjamin Franklin is applicable to everyone unless you are in the business industry. Yes, as it turns out, your business can avoid taxes and it can do it legally. Obviously this revelation is a huge deal because cutting your taxes will save you a fortune not to mention a lot of time. So what are you waiting for? Your taxes won’t cut themselves in half.
A 1031 Exchange
If you like real estate you might already know about the 1031 exchange rule already. If you don’t there is no need to worry because you can learn about it now. In basic terms it is a rule that prevents people and businesses from paying capital gains tax. Even more important is the fact that you can include other business assets. One last benefit – you don’t need to do it alone. The good news is that the industry is filled with companies like Triple Net that can provide help. The result is that you can avoid tax on everything from your office space to office equipment and company cars.
The government isn’t a monster that wants to take all of your money. They do want a cut, a cut that they think they deserve, but they also provide you with exemptions. Claiming expenses is probably the easiest and most well-known tax exemption at your disposal. All you have to do is figure out what your business uses that you can claim back and keep a record. And in this case ‘record’ means a detailed record. They are happy to give you the exemption but only if you are eligible. If they find that you aren’t they will hit you with a fine or a jail sentence.
Pay Into A Retirement Plan
The state doesn’t want everyone on their books when they retire. Instead they want them to be self-sufficient so they can save a lot of money. It is for this reason pension plans are tax-free and why you should take advantage. As an individual you can take your business’ profits and shelter them in a retirement plan especially if your business is profitable. Or you can create an employee retirement opportunity. As long as it is the business’ money that is going into the plan you won’t have to fork out for taxes.
Keep Up With The Law
Tax is a complex and intricate problem that is always changing. Even though it is hard you have to try and keep up if you want to take advantage. Not to mention that using out of date tax measures is dangerous. If you aren’t up to the job there is plenty of accountants with the expertise and experience to guide you through the process.
The above is legal and will save your business money. All you have to do is implement it into your business strategy.