 |
2008 Fiscal Tax Review
It has been a while since I posted my last update on this site. This is a post I wanted to do before the fiscal year ended, but I guess I can't turn back the clock. The point of doing this before the year ends is, so that you can top off your expenses to lower your tax bracket.
Do Your Taxes, Even If You Have An Accountant If you have an accountant do your taxes, do it yourself, but don't hand them in. I think the most important part of doing your own taxes is to make sure you fully understand how complicated the tax system is. If more people were forced to slave over their tax forms, not knowing if they did'em right, we might be able to lobby the government for a simple tax code. Despite the flak flat taxes get, doing your taxes is easy with them. Calculate How Much You Owe It is important to have a good idea how much tax you're going to owe the government and the sooner you know it - the better. Typically taxes aren't due until April. That's how it works in Canada (April 30) and the United States (April 15). Knowing in January what you are obligated to pay will allow you to get the funds together over four months, instead of scrapping it together at the last minute. As an affiliate marketer, you have to declare your income if you make over $400 or $600 or whatever. Check your local laws. If you're making any decent money, you're going to have to pay. The government will notice checks going into your bank account over an entire year. They're not stupid. Declare your income, take advantage of your tax write offs and save yourself an audit in the future. Should Do It In December The best way is to do all these calculations in December because you still have time to build up expenses, capital losses/gains and other things. I know this sounds like a manipulation, but it's how it works. People sell losing stocks at the end of the year and write off the loss. Basically, you should do your taxes and see how much you owe. Most likely it is going to be a lot and you won't want to pay it. Lowering your tax burden is done by increasing expenses or loss before the year ends. Buying a truck load of domain names will reduce your taxes. Taking all the domains you own now and renewing them for the next 5 years will cut down on your tax burden. This stuff all costs money and cuts into your profit, but you can either give your money to the government or to your business. It's really your choice. Business generally shouldn't be worried about this sort of stuff, but most of us live in progressive tax structures and have a significant tax obligation. Most of us will pay more in taxes than we'll pay on domains, hosting, advertising and outsourcing combined. That gives you an obligation to try and reduce your taxes. January 11 2008
If you enjoyed this post, make sure you subscribe to my RSS feed!
|
Affiliate Marketing Xpert was created for people that want to live the Four Hour Workweek lifestyle.
Categories
|
|
|
|