Make Business Deductions Out Of Your Personal Expenses Part 1

<p> This three part series will teach you how to take your expenses and shift them into business deductions.  The main purpose for this is that salary is highly taxed.  If your income is shifted into a business expense then you will be able to lower the amount of salary you get and therefore lower your tax burden.  This will also shift your expenses into your business.  This in turn lowers the amount of income in the business and can help you save tons of money on taxes. <p/>

<p> Your typical tax professional that the majority of the population go to will pull from a very small pool of deductions.  This is due to the fact that most of their customers are individuals as opposed to businesses.  So let’s say that you go into their office and demand that you spend less money in taxes.  What do they do?  Instead of taking more deductions they push the envelope on this small group of deductions that they know about.  This goes against logic which tells us that the best way to save is to use every deduction available in a reasonable manor.  Most of the time expenses can be broken down in many different ways some which will have more tax saving potential then others.  This is where a true professional is needed. <p/>

<p> The first step to the whole process is to set up an operating account.  It is from this account that you should pay your day to day expenses.  In order to make record keeping simpler, minimize the use of cash.  Get a corporate credit card dedicated solely to this purpose.  This is not to say that we recommend that you run up all types of credit card debt.  Use the card wisely and pay it off every month.  Otherwise you are going against any reasonable wealth building plan.  The cards only purpose is to make your life easier when tracking expenses. <p/>

<p> The following two parts of this series will concentrate on examples of the many deductions that you and your company are eligible to take.  In the meantime, visit pfbs.com to find out more tax saving secrets. <p/>