CPA WITH BUSINESS TAX AND PERSONAL TAX 1.4
I guess that brings up another point. I’ve heard not very many people, especially nowadays, but there’s a few people out there say, you know, and maybe it’s our patriotic duty to pay taxes. Um, but you, my opinion on that is that really if it wasn’t the case of the, of them wanting us to find every reason not to pay taxes, they wouldn’t provide so much in the tax code because ideally 30 I think 30 pages or less is on how to pay taxes. And the other 5,000 pages are on ways to not pay tax. And it’s really, they’re incentivizing us to do different things, whether it’s to build affordable housing, to build businesses, to give people jobs and that kind of stuff. Would you agree with that with us and our Trust Attorney Las Vegas?
100% I have a lot of people that haven’t had a good tax structure in the beginning. When they come in and we educate them and they, let’s say it’s a really drastic change for them, it’s, it’s almost like they’re talking to me like they feel guilty. Like, is this legal? Am I doing the right thing? No, you’re 100% entitled to. In fact, this is what you should have been doing the whole time. You just didn’t have the trusted advisor before advising properly. But once they get into that and they realize it’s normal, 100% you’re going to an audit with some of these positions they’ll feel are aggressive and are getting top Trust Attorney Las Vegas services. The IRS is like, well, what’s the code? What do you, why are you deducting? It will show me exactly what that, what it is. And they’ll say, yep, that’s fine, and we move onto the next deduction. So you’re 100% entitled to use the code to your benefit. It’s making sure you have a trusted advisor that has your best interest in mind. It’s educating you on how to use it.
All right. So with that, we’ve already mentioned businesses a couple of times. So let’s talk about business taxes. What are the mistakes? There are things people should be doing that they don’t do as far as maximizing their, their benefits there. And this is one where I’m going to definitely talk about Blake directly. Um, my first one is not having a proper entity structure. I can’t tell you how many people start a business. And I get it when you’re first starting, you don’t know if it’s going to make very much. Maybe you don’t want to spend money to have an attorney incorporate instead of your business, when it comes to Trust Attorney Las Vegas? Or you think there’s a bunch of other costs that are incurred. But at some point these people transition into making some significant money and they’ve just kept it in the basic format. And why? Because it’s convenient and it’s easy. It’s easier just to keep it like it is. And I know I have to pay some tax and it’s fine. I look at the tax and I’m like, man, you’re paying an extra 15% tax.
You shouldn’t pay or you’re paying a 25% more taxes than once you should be paying because your structure’s wrong. Um, 100%. Uh, if you’re working any type of service, advising, consulting, management type work, you shouldn’t be assault, proper partnership. You should be an escort. I can’t tell you how many people need that shift. Um, what I can say is if you have any question in that space of am I using the proper entity or do I even need an entity? I 100% trust Blake in this space. He is the guy that I go to and I send my clients to have that discussion of what entity is going to fit them properly to get the best Trust Attorney Las Vegas.
All right, awesome. Um, I know each business is kind of different as far as you know, what they can do. Um, maybe talk a little bit about, let’s say it is the people who are sole owners of the business. Um, they do the consulting, they do whatever. What are some like key main things that they should be doing? Like no matter what, however much money they are bringing in, but things that they can do that every kind of solo business owner should be doing to minimize their tax liability.
I’m going to mention one thing and then dive into some expenses and things that we can write off. One thing that’s really critical. I tell people best practices. When you have a business, it’s critical from the audit standpoint, and I’m always preparing to defend against an audit. That’s worst case scenario. You need to have two separate accounts, a business account and your personal account. You need to keep them separate. Personal items are on the personal account for solid Trust Attorney Las Vegas. Business items in the business account. Don’t commingle personal items to the business account. So easy example, your house payment and your groceries, you’re not going to write those off as a business expense. Very rare scenario and honestly people that are trying to fit that box probably don’t. There’s other ways to get deductions that are better than taking that really risky step. Um, but make sure that you have a simple way of keeping your stuff separate.
I don’t care if it’s two different credit cards to them. Debit cards. When you’re out, you’re making sure you’re using the right card. Create a simple method to keep that clean. It’s the, it’s the biggest advantage in an audit. Now when you’re coming to, what can I deduct? What can I write off? When I first worked with people, I’m trying to tailor their expenses. I’m not trying to say, Hey, go buy a new truck so you can get a right offer for the best Trust Attorney Las Vegas. Hey, you can write off your cell phone. You know, people know those. Um, I’m going to ask people what do you spend on normally, what are the things that you’re spending on normally, but that could be business deductions. No, we’re eligible to write off. Those are the things I want to pick up. Um, some things that’s easy to pick up. Clothes as an item that is very difficult to write off.