Tax preparation is a necessary evil of American life.
I wish that at least a simple Form 1040 class, with a few weeks on business income Schedule C, was taught in high school as a core curriculum.
But it isn’t.
So many folks are so confused about what we pros feel are relatively simple matters.
That’s because, even with the advent of online search engines and software, getting the answers to your exact questions remains an uphill battle.
You have to know what to ask. Search engines are like children.
Have you ever gotten frustrated because you didn’t ask your Alexa device the right question?
That’s what I mean.
I’m going to share an opinion with you, but it’s based on empirical observation.
Ready?
I believe with all my heart and soul that the U.S. Congress, and its evil sidekick the I.R.S., make taxes complicated on purpose.
There. I said it.
I do this for a living, with a credential that allows me to call the I.R.S on behalf of clients, and even I find myself looking things up sometimes.
Of course, the inflation-adjusted amounts of things like deductions and contribution limits change every year, so you just have to, anyway.
I make like my idol Einstein, and don’t clutter my mind memorizing things I can look up. At least not the stuff I don’t use often!
Let’s face it – to conclude my first point and the premise of this writing, Taxes Suck.
But, and this is the huge but…
You don’t have to keep losing at the game, either.
Tax preparation is like going to the dentist for a root canal.
Tax planning is like good dental preventative care that keeps you out of the chair for anything more than routine checkups.
I did an entire article once on how I thought of myself as a dentist, some months back.
I had a lot of fun writing it. It was one of my more fanciful flights of metaphorical imagery.
I am a bit of a dentist, but I have evolved my unique practice considerably over the past few years.
Now, I’m most interested in creating more time and wealth for people year-round.
So, they don’t think about this crap when they’re supposed to be heading off to slumberland.
A guy whose excellent book I read years ago said something I’ll never forgot:
“Beds are for two things only – sleeping and making love.”
Certainly NOT for thinking about what the hell you have to do to get your taxes over and done with.
I got you to read up to this point, and I am grateful. Let me get to the good part.
With the right tax planning…taxes are never a source of stress again.
Let me say that again (oh, never mind, just re-read that sentence!).
Consider this fact: taxes are an ordinary and necessary expense of your business.
Yes, you actually pay income tax on your personal 1040, but your taxes are higher because of all the loot you’re raking in like a gifted Texas Hold ‘Em player.
So ya gots to account for taxes while you’re making money as a business-person.
You blow this off, and ignore the necessity, at your peril.
You could be coughing up hundreds, even thousands, of extra dollars if you pay it all at once in April.
Yup. You’re supposed to pay as you go.
They treat us entrepreneur-types like adults, and only ask for a split of it 4 times a year.
They should be teaching this part in my Fantasy High School Class, too!
That is one part of a two-part attack on Congress’ war on taxpayers.
Part Two is to recreate yourself as an S Corporation.
Pay yourself a reasonable amount of your net income in wages, and pay FICA tax on THAT PART ONLY.
That will save you thousands of dollars for sure, assuming your net income is high enough to support the tax break.
I do this for dozens of small businesses already, but you know what?
Against the advice of my “better angels” I’m creating a course for people to learn how to do it for themselves, too!
Oh, we have had a course available for the past year or so, but it’s growing, evolving, and also updating for these modern infectious times.
It’s in development, and I’m in the studio getting it done even during busy tax extension season.
It’s coming soon, and you bet I’ll let you know when it’s nearing completion.
With the end of the year, and 2022 looming up on the horizon, it’s the perfect time to be planning now for keeping thousands of dollars in your own pocket.
More money to invest in your business.
More money for yourself and your family.
And, even bigger?
MORE TIME.
That’s the one thing you can’t buy any more of than Warren Buffet or Bill Gates can.
Not even that erstwhile spaceman himself, Jeff Bezos.
Want to get on the list for the new course?
Or just talk about how I save YOU time and money, all year?
Click here: https://www.owingsllc.com/work-with-me
I’m looking forward to working side-by-side toward your wealth creation, together…
…talk to you, soon!