MooNiNite Posted April 14, 2015 Hello, Everyone here is pretty smart.... Im trying to brainstorm with people about how to save money on taxes. One idea is to deduct the costs of food and other basic costs before creating a taxable sum of money. Some people even talk about creating some type of sub-business that works with their own business so that they can make these charges and then incorporate them with their real business before generating their check. What have your been your experiences? And what are some good ideas? Share this post Link to post Share on other sites
Marblehead Posted April 14, 2015 Your first idea won't work. An audit will catch you. Your second idea happens all the time in big corporations. They take or even create a loss in a subsidiary and this reduces the overall tax debt. Another way is to have no tracable income. No paper trail - can't prove anything. Share this post Link to post Share on other sites
zanshin Posted April 14, 2015 We just talked with tax guy about this. Even if you have regular paycheck job you can have unrelated side or hobby business to use as deduction. We bought some land with plan to sell veggies at farm markets and maybe work with a local winery to provide hops or grapes eventually. So for tax shelter, your side business needs to lose money. If we buy fruit trees, tractor, driving to land and markets, land improvements, hanging on the patio drinking and talking about growing grapes with Dave, whatever, that's all business related deductible and more than our profits. If you teach martial arts in your garage or sell craft stuff, all supplies, part of house, computer, phone, books and seminars (work a seminar into vacation and deduct travel and lodging too), even cleaning supplies. As long as you're not ridiculous with deductions and you can show there's maybe a goal to maybe eventually make a profit it should be fine. Tax forms and paperwork are a huge pain. I used to be self employed and do own taxes, have decided its worth it to pay tax guy now. 2 Share this post Link to post Share on other sites
Stosh Posted April 14, 2015 My 'good idea' is just to pay the taxes, and if its cost effective have someone else figure out how to save you money on them. 2 Share this post Link to post Share on other sites
silent thunder Posted April 14, 2015 I don't mind paying taxes. Never have. I don't mind contributing to the culture from which I gain so much. 1 Share this post Link to post Share on other sites
soaring crane Posted April 14, 2015 It's amazing how much time and MONEY people are willing to invest in getting out of their responsibility to the community that supports them. I sat down once with a friend and a calculator to show him how he was actually spending more on his tax avoidance than he would if he simply paid his taxes honestly to begin with. But he didn't care. 1 Share this post Link to post Share on other sites
mostly_empty Posted April 14, 2015 (edited) You probably won't like to much of my answer, but then it of course depends on your motivations. 1) Charitable donations lead to tax relief just about anywhere. 2) As per silent thunder/ soaring crane .... taxes support the good things your government provides. These are the public goods - and if you think carefully you may decide that you support them after all. 3) If you still want to reduce taxes to as maximize money in your hands then a) create a productive business; this will allow you to maximize tax deductions.... b: consider removing yourself from the social safety net. By working around residency and ownership you can legally avoid a large part of your tax load. e.g. http://alexdoulis.com Personally, taxes are a bargain for what I and my family receive.... when I thought about this I decided that most of my anti-tax sentiment was disapproval of what my government was doing. So I became a little more politically active .... Cheers. Edited April 14, 2015 by mostly_empty 2 Share this post Link to post Share on other sites
