The absolute fastest and easiest way to increase your cash flow as an entrepreneur is to reduce your taxes. ~ Tom Wheelwright, CPA and CEO ProVision
(PRWEB) November 12, 2014
With the year-end approaching fast, Tax and Wealth Expert Tom Wheelwright announces three tax tips for small businesses to maximize income and reduce taxes. Looking ahead, Tom also raises critical issues regarding U.S. tax laws for business that need to be addressed by the newly elected Senate and House in January.
“The absolute fastest and easiest way to increase your cash flow as an entrepreneur is to reduce your taxes.” ~ Tom Wheelwright, CPA, CEO of ProVision, Author (Tax-Free Wealth), and Rich Dad Advisor
To help small businesses and entrepreneurs reduce taxes, Tom Wheelwright recommends taking these three steps now.
1. Become an S Corporation - Change your business to an S corporation for tax purposes. As an S-Corp, business owners should then pay themselves a small, but reasonable salary and take the rest of the money in shareholder distributions. This classification will save business owners a ton of self employment (Social Security) taxes.
2. Take Home Office Deductions - Take advantage of the home office deduction. Too often, business owners say their accountant told them not to take this valuable deduction because it will raise a red flag. All that means is that the accountant is afraid of the IRS. The home office deduction is specifically allowed in the Internal Revenue Code and done properly can massively increase your deductions.
3. Develop a Tax Strategy - Meet with your CPA to develop a comprehensive tax strategy. A tax strategy is a plan of action to permanently reduce your taxes. It typically takes about three months to develop a good tax strategy, and the typical result with ProVisionWealth.com clients is a permanent tax reduction of anywhere from 10-40%. A CPA should be asking business owners tons of questions about the business facts because the way to reduce the tax is to change the facts.
In addition to these year-end tax tips, Tom shares views about what the midterm elections may mean, including the impact on the Extenders Bill, giving more tax power back to the states, and how business taxes impact the overall US Economy.
1. Reduce High Business Taxes - Americans are ready for a change in Washington DC to revise the current tax code that taxes both corporations and their shareholders on the same income at a combined rate of almost 50% and puts the U.S. at a competitive disadvantage to the rest of the world..
2. Encourage Innovation - To encourage small businesses to continually invest in new equipment and technology and be competitive, business tax incentives need to be made permanent.
3. Pass the Extenders Bill - With the current Extenders bill up for renewal, this will be a hot topic in Washington D.C. This bill includes 55 temporary tax breaks, and it is critical for the fragile economy to renew the $85 billion in tax breaks for individuals and businesses.
For a timely interview, please contact Liz Kelly, 1-310-987-7207.
Bio: Tom Wheelwright, CPA and CEO of ProVision, is a leading tax and wealth expert, published author (Tax-Free Wealth) on partnerships and corporation tax strategies, and a Rich Dad Advisor/Speaker for Robert Kiyosaki, who wrote Rich Dad Poor Dad. Tom is best known for making taxes “fun, easy and understandable,” and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. He has been on the Real Estate Guys Radio Show, Money Radio 1510 Business for Breakfast, written for CEO Blog Nation, and frequently speaks at Rich Dad conferences worldwide. http://taxfreewealthadvisor.com