Where to find small business tax strategies?

Answer 1

Tax planning is the analysis and arrangement of a person’s financial situation in order to maximise tax breaks and minimise tax liabilities.

Here are some important points to understand about tax strategies before you make your next money move:

1) Understand your tax bracket: There are many federal income tax brackets.No matter which bracket you’re in, you probably won’t pay that rate on your entire income. There are two reasons:

-You get to subtract tax deductions to determine your taxable income.

-You don’t just multiply your tax bracket by your taxable income. Instead, the government divides your taxable income into chunks and then taxes each chunk at the corresponding rate.

2) Tax deductions vs tax credits: Both reduce your tax bill, but in very different ways. Tax deductions are specific expenses you’ve incurred that you can subtract from your taxable income.

Tax credits are even better — they give you a dollar-for-dollar reduction in your tax bill. A tax credit valued at $1,000, for instance, lowers your tax bill by $1,000.

3) Standard deduction differs from itemising: Standard deduction is a flat-dollar, no-questions-asked tax deduction. Taking the standard deduction makes tax prep go a lot faster. But you can also itemise your tax return, which means taking all the individual tax deductions that you qualify for, one by one.

*Generally, people itemise if their itemised deductions add up to more than the standard deduction.

*You might be able to itemise on your state tax return even if you take the standard deduction on your federal return.

4) Saving the tax records: Keeping tax returns and the documents you used to complete them is critical if you’re ever audited. Typically, the IRS has three years to decide whether to audit your return, so keep your records for at least that long.

Lifeline Tax Consultant is the answer where you can find standard services such as bookkeeping and tax preparation, but unlike others, they develop an extensive menu of specialised services designed to ensure that individuals, professionals and small to mid-size businesses remain financially sound and prepared for a strong future.

Answer 2

There are always books out there that have strategies on many things there is surley a book out there about tax strategies. Or there is also the internet as a second resort.