Minize Taxes

Staff members make money, pay tax and then are able to spend what’s left.

Entrepreneurs make money, spend money and pay tax on what’s left.

Translation: A MAJOR advantage to owning a business is to save on your number one expense… TAX.

Here’s a little homework I’d consider doing on minimizing your tax position.

With 95% certainty your existing accountant isn’t doing anything like this (probably aren’t given the opportunity cause you see them once a year and that’s 3 months after the financial year has already ended) and it’s costing you money.

• Get a floor plan of your house

• Mark the areas that are taken up by your office

• Your office needs a bathroom

• Your office needs a kitchen

• Your office needs an entrance

• Space for garbage

• Storage area

• If you do meetings, you’d need the living room

• Company car space in your garage

• Maintenance on the gardens that surround your office

• Cleaning of your office and areas you need

• You are staff and you need amenities like tea, coffee, biscuits, milk, food, toilet paper (you poop a LOT) etc… Note: This is why you can buy all of this stuff at Costco or other stores. Buy it there separately from other household expenses.

• Assume the above is 50% of your house. Then 50% of the interest on your mortgage should be able (*NOT TAX ADVICE… all is subject to local tax laws so ask your accountant) to be dedicated.

• Expenses like electricity, water, city are now partly business expenses.

  

• *Depreciation / Amortization (depreciation and amortization are non-cash expenses and therefore PURE GOLD for minimizing your tax position – reduce your profits without spending your hard earned cash) on office equipment, computers, laptops, furniture used for business purposes, cars and any other assets (amortization is off your intangible assets like intellectual property) that are used to increase income.

You heard it here first.

Stacey Riska, your lifestyle matchmaker 😊 helping you "do what you love, love what you do"!

P.S. Your ultimate goal is likely freedom… the trick is to clearly define what freedom means to you.