Today is tax day, remember to mail off anything you might owe. However if you are like many business owners I know the tax man can be quite kind to us. What I’ve found since starting my business is just how many ways you can legally reduce what you are required to pay in taxes.
I’ll go over my business as an example. I buy domains to resell to other business owners. All the domains I buy to resell I can write off as a business expense. All the software I pay for to help me sort through millions of domains a day are all a write off. Same with the software I use to help build link juice to different sites I try to rank.
The new health care laws present a new way to get money back. Many people are used to paying for the insurance through their paychecks with pre tax dollars. People taking advantage of the ACA insurance are paying for their insurance with after tax dollars. I had a talk to my accountant and she told me that business owners can write off their insurance. Every dollar I spend on insurance for me and my wife can be used to reduce my income for the year. Sorry to anyone that does not own a business. Non business owners that use after tax dollars to pay for insurance will only get money back if over 10% of their income went to pay for medical expenses. This is yet another reason why just about everyone should own their own business.
Recently I’ve decided to expand out into FBA (selling things on Amazon). This requires me to drive around town to buy up different items to sell. I get to write down all my mileage and get that money back. I need a smart phone to help me identify the best items to buy. The phone I’ve had for 3 years now is on its way out. I’m looking into exactly how much of that my business can pay for. I make almost no personal calls, so hopefully I can have my business pay for the entire phone. Because I also need data to use the app on the phone I know I can have my business pay for my phone plan. Not only mine, but my wife’s since we both go out buying together.
These are just a few examples of all the things you can be doing to cut back on what you owe the tax man. It is simply amazing just how much you can write off. Let me know what your favorite tax write-offs are in the comments below.