Tax laws are written by politicians and they write IRS laws to tailor society the way they and their constituents want. This is something that accountants and tax preparers are taught every tax season.

Today’s politicians want workers for the rich so they can live in bigger houses and take vacations that their employees can only dream of winning the lottery. Those who want to help others end up giving up taxes paid by honest taxpayers to dishonest people, rather than the truly needy. However, you can help yourself pay less in taxes and make sure your tax money goes where it counts.

Big companies and the wealthy spend money on accountants to figure out how to avoid taxes and give it to politicians to get the laws they want passed. As a small business person, you can take advantage of those same laws that the rich spend a lot of money to get.

Here are ten surefire ways you can use the IRS and your small business to your advantage, just like large businesses, and pay less in taxes.

  1. Run a business bank account because depositing into your personal account leaves it open for IRS inspection. If you want to keep the IRS out of your personal account, you must deposit all business money in an account that only your business uses. That’s the way big companies keep the IRS out of your other money.

  1. Do not give away or donate, advertise instead. A company is only allowed one gift of $ 25 per customer, donations go on your personal form if it is not incorporated, but you can spend all the advertising made for your company directly in your Annex C. When asked to gift or donate Ask if there is an opportunity to advertise instead.

  1. Never run out of the necessary equipment in a company. Any necessary equipment is deductible, so buy what you need to earn more money. Do not wait!

  1. Travel is also deductible if you are going on business. Hire your spouse to work a convention booth and both of you will be covered for the trip. What you do at night is your business, as long as you both work on the show.

  1. Keep track of every business mile you drive. This is often a large deductible for a small business, so it is important to consider every trip to the bank, post office, store, supplies, etc. Travel miles are not deductible unless you go to your second job (which includes self-employment) and follow special rules. Know if you qualify or not.

  1. Know what expenses are considered “normal and necessary” in your industry and keep track of all the business expenses you incur that fall into this category. If you do, you will lose less than what is deductible. Any business expense offsets your business income.

  1. Spend money in the last months of the business year on whatever your business needs to get ahead. Do this and you will lower your taxes and make your business grow faster.

  1. Anyone doing double dipping must be surrendered and you must Never add to your income. Dishonest people get their regular income from taxpayers in the form of undeserved social security disability, tax-free income, free housing, earned income checks, tax credits, taxpayer-funded support, medical assistance, etc. and double immersion by keeping 100% of all the income they earn for themselves. People who lie about their income or the number of children they have to make taxpayers support them are misleading you and making everyone’s taxes higher. An independent contractor pays 17% of their earnings to social security plus state and federal taxes. That means you can multiply the money in a double pot by a minimum of two, since they don’t pay any. These people steal from taxpayers like you, your spouse, parents, children, and others, and many make more money than some of these people. If every honest taxpayer turned in one or two of these rogue cheats, we’d have more tax dollars for those who really need our help. Use IRS Form 3949a, you can be anonymous and you can earn a reward.

  1. Invest money now for your retirement. Anyone can save money for retirement, and most get an IRS deduction for all the money saved. A business owner can set up a SEP and save 25% of their compensation for retirement. It may be difficult to give up that figure now, but you will pay less in taxes if you do, and when you are older you will have money waiting.

  1. Go after the IRS to change current tax laws to your advantage. There is sway in the numbers, so you’ll want to join a group of similar companies before you start, but then you have to work to make the tax laws change in your industry’s favor. There is probably a group of business owners in your industry. Check there first. This worked for other industries in the past and it will work for you.

If you follow these 10 simple rules as an independent contractor, freelancer, or small business owner, you will pay less in taxes. Skip one or two and you’ll pay more than the big companies pay and more than your fair share.

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