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April 30, 2009

The Best Tax Deduction – Retirement Savings

Filed under: Taxes — Tags: , , , , , — admin @ 11:36 am

You don´t  have to spend money to save taxes on your income. Spending money on tax deductible items is not really the best method to avoid paying taxes. You have some other very viable options such as retirement plan where you spend money that you can deduct on your taxes but get it all back once you retire. Having a retirement plan is a great idea even if there wasn’t tax benefits to it but with the government encouraging people to work on their retirement themselves instead of relying on social security they have provided very generous tax benefits.

Retirement plans and schemes help you to save taxes without actually spending your money.

But, you can only invest your money in such plans up to a certain limit, beyond which all your money being invested is still taxed. Another thing which you must note is when investing into a retirement plan, you ought to pay some money depending upon the type of plan, which is not taxed, for a particular period of time, before you actually get the benefit, and failing to do so can be unfavorable. (more…)

March 15, 2009

Use your home as a Tax Deduction

Filed under: Taxes — Tags: , , , , — admin @ 12:24 pm

This is also one of the tax saving technique used by a very few people. If you are the owner of a small scaled miniature business, company or any organization, then you can use that house of yours as a home office for work purposes. This will help you to get deductions on the taxes on that place, as it is being used for company purposes. In this way, you can invest in property as well as pay less tax on it.

You can avail such tax benefits only if your company or business is small scaled. If it’s a big company, then you may not get the benefits on tax, as only small business owners qualify to take home office tax deductions. But if you own or work for a small business you are eligible. Even if you only ‘telecommute’ one day a week you still qualify to claim some of your home expenses as business tax deductions.

For example, if the tax amounted on a property of yours is three thousand dollars, then if you are using it for home office purposes, the tax will amount to a reduced Fifteen hundred to two thousand dollars, thereby saving a lot of valuable money.

You can also take deductions or show deductions on operating your home leading to further saving of taxes. Since you need electricity in your home in order for it to be an office, or heat or whatever else, many other home expenses can be used, at least in part, as tax deductible business expenses.

If you own a small business consider doing your financials, payroll, accounting, etc. from home. Or perhaps get a business line installed at the house and have expanded home office hours. Anything you can do to work in your home allows you to consider your home as an office and get a nice sized tax deduction.

Hopefully now you can see how having a home office can save you a lot of money come tax time if you own or work for a small business. There are so many different available tax deductions that many people fail to claim, be sure you get all the deductions that you deserve.

January 29, 2009

Tax Planning

A proper tax planning can help you to save a considerable amount of your hard earned money. It can help you to maximize the deductions and ultimately reduce your tax burden. There are many Individuals who are not quite aware of the tax reduction procedures and lose their money.

The method of tax planning will differ from one person to another based on his monthly income, filing status, investments or savings plan, taxable income cap etc. A person with same income as another person may have to pay more taxes due to lack of eligible tax-deductible savings. (more…)

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