“The important thing to understand when starting a small business and planning to take tax deductions is to understand the difference between a business and a hobby."
Siesta Key, FL (PRWEB) December 10, 2012
Small business tax deductions can be one of the best tax savings tools available. And it is not illegal to start a business just to save taxes. Because of the “Fiscal Cliff,” many people are struggling to find tax deductions and the small business has some of the best. This is the topic of a new article on LegaLees.com by Attorney Lee Phillips.
Mr. Phillips notes that, “The important thing to understand when starting a small business and planning to take tax deductions is to understand the difference between a business and a hobby. You can bet the IRS is serious about the difference. Incorrect deductions of expenses and overstated adjustments, deductions, exemptions and credits account for more than $30 billion per year in unpaid taxes, according to IRS estimates. With the need for more money in the Federal coffers they are investigating such problems.”
The newly released article explains the difference between a business and a hobby. And also explains how a business with no profits can still take deductions. The take home message of the article is how a person can form a true business to take legitimate tax deductions. Once a business is in place, it is easy to take advantage of many deductions. Mr. Phillips has also written a series of tax tips that are available online. It shows how to take advantage of important deductions in the IRS code for small businesses.
Mr. Phillips is an attorney who serves as a counselor to the Supreme Court of the United States. He has a talent for taking complex legal ideas and helping the layman understand them. He enjoys helping other people understand and apply the law, not only to provide asset protection and estate planning, but to use it to structure businesses and save taxes. He is the author of 11 books, along with his latest Guaranteed Millionaire. He has written hundreds of articles for professional publications.
LegaLees was founded in 1982 by Lee R. Phillips. It is a legal self-help publishing company. It produces products designed to help people understand the law. Because of personal experiences, Mr. Phillips realized that people should be able to understand how the law works so they can direct their own legal professionals. He also saw the need for people who wished to do their own legal work to be shown how and given the requisite understanding. LegaLees has also designed products to help people be able to structure their personal and business affairs. All of the products help the end users to protect assets and prevent legal disasters that can strike at any time.