Small Business Owners with $100,000 in income can reduce tax liability to ZERO by taking advantage of tax credits and deductions.
Fremont CA (PRWEB) April 02, 2012
In a recent television interview,Sanjiv Gupta CPA discussed a roadmap to reduce the adjusted gross income (AGI) to effectively shrink tax liability. “It’s not too late to take advantage of many tax deductions and credits but you must act immediately to maximize the tax benefits for the year 2011,” advises Sanjiv Gupta CPA. By taking advantage of tax credits for education, earned income or childcare, individuals can actually get a refund even if they don’t owe any federal income tax.
Tax deductions for mortgage, healthcare, education, training and state taxes can quickly add up; which can significantly help in reducing the adjusted gross income. Small business owners or independent contractors can also reduce tax liability by contributing maximum up to $49,500 (independent and company contribution) in solo or company 401(k) plan. Tax credits are also available for small business owners to offset the cost of setting up the solo or company 401(k) plan. “Individuals who can’t take advantage of 401(k) plan can contribute up to $5000 into IRA account,” opines Sanjiv Gupta CPA.
Small business owners and independent contractors can also take advantage for deductions such as, mileage, home office and telephone expenses, and any other business related expenses. Sanjiv Gupta recommends proper record keeping and planning to maximize the reduction in tax liability. “Small business owner with $100,000 in income can reduce tax liability to ZERO by properly planning and taking advantage of various tax deductions and credits,” further explained Sanjiv Gupta CPA. Tax Deadline may be approaching fast but there is still time to get the financials in order.
“Reducing tax liability with tax credits and deductions is not enough. One should also pay attention to new laws such as FBAR, Foreign Bank Account Reporting, that can result in huge penalties if not properly filed in timely fashion,” warns Sanjiv. Individuals and businesses with financial interest in foreign countries can also file past due returns under current amnesty program to reduce the tax bill.
Office of Sanjiv Gupta, CPA can help small business owners and individuals with all sorts of tax issues including audits, setting up of business structure, bookkeeping and filing of tax returns.
About Sanjiv Gupta CPA Office:
Sanjiv Gupta’s firm is a full service Certified Public Accounting firm located in the heart of San Francisco Bay Area. Founded by Sanjiv Gupta, the practice has grown into a trusted and respected accounting firm with office located in Fremont CA. Sanjiv Gupta practiced tax as charter accountant (CA) in India and has served the San Francisco Bay Area community as CPA for last several years. His tax radio talk show on 1170 am and 1550 am are very popular among Indian Community. His office provides strategic accounting, tax, financial, wealth preservation, business valuation, planning and consulting services to individuals, and small businesses. His office assists clients from Cupertino, San Jose, Palo Alto, Hayward and other major Bay Area cities. Sanjiv also offers consultation via phone and video conferences. You can visit Sanjiv Gupta CPA practice at 39111 Paseo Padre Pkwy # 117, Fremont, CA 94536 or give him a call at 510-825-7563.