Tag Archive | "tax code"

Benefits From a New Tax Strategy


There is a tax strategy that can create huge cash savings, especially for those who have or are about to retire.

manta

Gary Scott working, earning and reducing tax.

For many years Merri and I enjoyed great tax savings through our Corporate Defined Benefit Tax Plan.  Then we reached the age when we had to start taking minimum distributions.  To compensate for this, we have added slightly different tax features that use the tens of thousands of pages of tax code to keep our taxes as low as we can.

Tax savings are like leverage and cash.  For example a research paper of Warren Buffett’s success published at a Yale University website shows that Buffet’s success was built on using leverage at a Golden Ratio to make large purchases of “cheap, safe, quality stocks”.  Buffett amassed an amazing fortune by leveraging a good strategy for very long periods of time, surviving rough periods where others might have been forced into a fire sale or a career shift.

The study found that Buffett did this by applying the perfect amount of leverage, not too little, not too much so he could survive rough periods where others might have been forced into a fire sale or a career shift.  A key to this durability was obtaining low cost financing that gave him a significant ability to hang on during down times.

One way Buffet has kept his borrowing costs down is to finance part of his capital expenditure using tax deductions for accelerated depreciation of property, plant and equipment as provided for under the IRS rules.

For example the research (in 2011) showed that Berkshire had reported $28 Billion of deferred tax liabilities the previous year.

Accelerating depreciation is similar to an interest free loan in the sense that Berkshire enjoys a tax saving earlier than otherwise.  By having the dollar amount of the tax when it is paid in the future is the same as the earlier savings since the tax liability does not accrue interest or compound.

One good way to protect your investing portfolio is to have a microbusiness.

Earnings from a business can relieve pressure to spend savings and investments.  Extra income can expand a portfolio’s time horizon and increasing staying power to sustain strategies.

Tax benefits are one reason why Merri and I love our pinnacle career.  We expect the upcoming years to be the best in our business as we benefit from nearly 50 years of experience and good will.

Pinnacle careers are about a lot more than money.  The most important benefit of a pinnacle micro business is that we can turn our passion into profit.  The profit helps beat inflation and assures we’ll never run out of money.

There are so many ways to enjoy a micro business.

Exports are great if you are interested in earning in Ecuador.  See more about earning with Ecuador exports here.

Writing and self publishing is another wonderful way to create a pinnacle career.  See one example of how a reader traveled to nine countries, indulged in his passion, earned and gained tax deductions.  Click on Eat Locally Anywhere.

Most important a pinnacle career allows you to create meaningful, fulfilling missions as you earn more and pay less tax.

Gary

Learn Fun & Profitable Tax Secrets

Imagine this, micro businesses are such good ways to create wealth and reduce tax that even cruises can be tax deductible.

Small family owned businesses have some of the best tax benefits.

Micro businesses have huge tax savings using really conservative strategies.

conrad oertwig

Conrad Oertwig (far right) after a seminar when delegates visit our North Carolina home.

This is why I am delighted that our tax preparer, Conrad Oertwig, who is a master of tax savings information, has agreed to speak at our October 17-18, 2015 Value Investment Seminar.

Conrad Oertwig can assist you on tax matters.  IN FACT THIS FALL, Conrad will be offering a course and personal service on ways that one-person and family business owners can have more cash via tax savings.   Conrad is offering a report on seven ways to put more cash on the table when you earn and is releasing a course on how to save taxes this fall.

Conrad’s report is “7 Secrets to Paying Less Tax… for the One-Owner Business”.  He sent me this note to share with you about the report.

From: Conrad Oertwig

One hard fact of life is that taxes are cash.  It’s a mistake to think of taxes as taxes.  If you want to create more net worth, you need to think of taxes as cash.

How much tax cash are you leaving on the table? Thousands? Tens of thousands?

Here are just three of seven secrets I will share with Gary Scott readers at the October 17-18 Value Investment Seminar and in my report.   Learn how to pay less tax, have more cash, and build your net worth.

Secret # 1: Gain $12,976 by using two vehicles for business.  In the past, your tax adviser likely told you to drive one vehicle for business and the other vehicle for personal purposes. This old advice made it easier to claim the one car as a business car because no business mileage log was required back then. But that’s no longer true.

Today, tax law requires you to keep a mileage log to prove business use. That changes the game. With today’s rules, you gain nothing by using only one car. But the new mileage log rule gives you a possible opportunity to increase your tax deductions.

First, you might ask: Will the IRS allow me to use more than one vehicle for business?

Yes! The IRS official method for computing business use of a single vehicle is to divide business miles by total miles driven. IRS Form 4562, which is filed by proprietorships and corporations, contains spaces for up to six vehicles. In other words, yes, the IRS recognizes that you can drive more than one vehicle.

Here are the two basics that make the two-vehicle strategy work:
1:  You drive more miles than your spouse, and
2:  Both vehicles are somewhat close in adjusted basis.
To see if you can benefit from this two-vehicle strategy, and by how much (the minimum amount, really), apply the arithmetic from the before-and-after example below to your vehicles.

Before. You drive 2,000 personal and 28,000 business miles on your vehicle (93% business). Your spouse drives 8,000 personal miles on vehicle 2. Each vehicle has an adjusted basis of $24,000. Your maximum depreciation and/or Section 179 deduction is $22,400 (93% times $24,000) on the one vehicle you currently drive for business.

After. You switch vehicles with your spouse every week. You now have 73.7% business use of vehicle 1 and 73.7% business use of vehicle 2. This produces $35,376 in maximum depreciation and/or Section 179 deductions (73.7% x 2 x $24,000).

You gain $12,976 in new deductions ($35,376 minus $22,400). You did not have to drive one mile further or spend one additional penny. You simply had to know (as you learned here) that this strategy could work for you.

Secret #2:  Have a second office in the home.

Have you been told that because you have an office outside your home that you may not have an office in the home?  That’s wrong!

IRS publication 463 states, “You can have more than one business location, including your home, for a single trade or business.”  Learn why in the free report due to IRS publication 587 you want your office in the home to qualify as an administrative office.

Secret #3: Travel by cruise ship and deduct up to $680 a day.

When you know the rules, it’s easy to travel to a business meeting by cruise ship rather than by airplane or other mode of transportation.  Tax law provides various ways for you to deduct a cruise.  The free report shows an example of a trip to St. Thomas in the Virgin Islands from California or New York.

Learn about IRS Regulation 1.274-4 that gives you two one-owner business friendly rules that you can use to your benefit:

1:  The United States means the 50 states and the District of Columbia.
2: Transportation cost to a foreign destination for seven days or less, excluding the day of departure, is not subject to an allocation between business and personal days.

In the example if you fly to Miami, Florida, board a cruise ship that will take five days to arrive at St. Thomas your deductions will include the cost of:

1 :  Travel to Miami
2:   Cruise ship fare to St. Thomas (not to exceed tax law’s luxury boat limits that range in 2014 from a low of $566 to $680 per day, depending on the dates of travel)
3:   Food and lodging in St. Thomas
4:   Airfare to Miami
5 :  Travel from Miami to home

You have to admit, tax knowledge can be fun which is why I want to send you this free report.

I specialize in “nuts and bolts” tax strategies that bring tax law to life so that business taxpayers and professional tax advisers can put the law to work for them.  In fact, my mission is to clarify taxes so that you take control of your money.

Plucking common sense from the tax law is time consuming and difficult work.  Yet, after more than 25 years, I still get great satisfaction when I can clarify and extract tax dollars from the tax law not only for your pockets but also to add to your net worth.  In fact I have extracted over 400 tax savings tips and would like to share the most important lessons with you so am creating a course that will share seven tax secrets each month for the next year.

Sincerely,

Conrad Oertwig

Learn how to have a tax advantaged one person or family owned micro business.

Conrad has dozens of tax savings secrets he will explain at our October 17-18 Value Investment Seminar.   To help you get an early start, we will send you Conrad’s report “7 Secrets to Paying Less Tax… for the One-Owner Business”, when you enroll in the seminar.

Get seminar details here

 

 

Beat Inflation – Reduce Tax


A micro business in writing can create income that beats inflation as it reduces tax.

Money does not guarantee happiness but up to about $75,000 a year of income, money does help.  If you are turning your passion into profit, then it is even easier to be content with your labors.   The value of labor rises with inflation.  That $75,000 threshold will be worth $38,126 in ten years if inflation is 7%.  $75,000 of today’s purchasing power will require $147,536.

Good labor is not drudgery and does not have to be work.

The beauty of learning to serve in a fulfilling way is the process of earning can be fun.

Take the example of Denis Malloy’s new book  “Eat Local Anywhere”.   Our  course “Self Fulfilled How to be a Self Publisher” helped Denis write this book.

eat local anywhere

Denis’s guide is for local restaurants in different parts of the world that are not specifically designed to attract tourists.  They are restaurants featuring authentic, local cuisine for local residents.  The moderate prices on their menus and the authentic representation make these great places to eat as you travel.

Learn more about Denis Malloy’s “Eat Local Anywhere” at Amazon.com

To research this book, here are a few of the places Denis had to travel so eat in many of the restaurants there.

Brussels, Belgium

Buenos Aires, Argentina

Quito, Ecuador

Punta Del Este, Uruguay

Santiago, Chile

Montevideo, Uruguay

Paris, France

Sait Jean de Luz, Pyrenees-Atlantiques,  France

Sheboygan, Wisconsin

Del Ray Beach, Florida

Do you think his research was drudgery?  Look at the service he provided, a valuable guide to good restaurants offering great food and low prices. here is a bigger social element here.  By helping promote local restaurants that serve good local food, Denis is helping short circuit big agri business and  chains that increasingly dominate commerce and pollute our bodies and the environment.

In addition Denis gained enormous tax advantages.

Fight inflation, reduce tax, help the world, be fulfilled.  Never give up the ability to serve.

Our upcoming Value Investing Seminar features many cash savings ideas via tax reduction.

Gary

Learn Fun & Profitable Tax Secrets

Imagine this, micro businesses are such good ways to create wealth and reduce tax that even cruises can be tax deductible.

Small family owned businesses have some of the best tax benefits.

Micro businesses have huge tax savings using really conservative strategies.

conrad oertwig

Conrad Oertwig (far right) after a seminar when delegates visit our North Carolina home.

This is why I am delighted that our tax preparer, Conrad Oertwig, who is a master of tax savings information, has agreed to speak at our October 17-18, 2015 Value Investment Seminar.

Conrad Oertwig can assist you on tax matters.  IN FACT THIS FALL, Conrad will be offering a course and personal service on ways that one-person and family business owners can have more cash via tax savings.   Conrad is offering a report on seven ways to put more cash on the table when you earn and is releasing a course on how to save taxes this fall.

Conrad’s report is “7 Secrets to Paying Less Tax… for the One-Owner Business”.  He sent me this note to share with you about the report.

From: Conrad Oertwig

One hard fact of life is that taxes are cash.  It’s a mistake to think of taxes as taxes.  If you want to create more net worth, you need to think of taxes as cash.

How much tax cash are you leaving on the table? Thousands? Tens of thousands?

Here are just three of seven secrets I will share with Gary Scott readers at the October 17-18 Value Investment Seminar and in my report.   Learn how to pay less tax, have more cash, and build your net worth.

Secret # 1: Gain $12,976 by using two vehicles for business.  In the past, your tax adviser likely told you to drive one vehicle for business and the other vehicle for personal purposes. This old advice made it easier to claim the one car as a business car because no business mileage log was required back then. But that’s no longer true.

Today, tax law requires you to keep a mileage log to prove business use. That changes the game. With today’s rules, you gain nothing by using only one car. But the new mileage log rule gives you a possible opportunity to increase your tax deductions.

First, you might ask: Will the IRS allow me to use more than one vehicle for business?

Yes! The IRS official method for computing business use of a single vehicle is to divide business miles by total miles driven. IRS Form 4562, which is filed by proprietorships and corporations, contains spaces for up to six vehicles. In other words, yes, the IRS recognizes that you can drive more than one vehicle.

Here are the two basics that make the two-vehicle strategy work:
1:  You drive more miles than your spouse, and
2:  Both vehicles are somewhat close in adjusted basis.
To see if you can benefit from this two-vehicle strategy, and by how much (the minimum amount, really), apply the arithmetic from the before-and-after example below to your vehicles.

Before. You drive 2,000 personal and 28,000 business miles on your vehicle (93% business). Your spouse drives 8,000 personal miles on vehicle 2. Each vehicle has an adjusted basis of $24,000. Your maximum depreciation and/or Section 179 deduction is $22,400 (93% times $24,000) on the one vehicle you currently drive for business.

After. You switch vehicles with your spouse every week. You now have 73.7% business use of vehicle 1 and 73.7% business use of vehicle 2. This produces $35,376 in maximum depreciation and/or Section 179 deductions (73.7% x 2 x $24,000).

You gain $12,976 in new deductions ($35,376 minus $22,400). You did not have to drive one mile further or spend one additional penny. You simply had to know (as you learned here) that this strategy could work for you.

Secret #2:  Have a second office in the home.

Have you been told that because you have an office outside your home that you may not have an office in the home?  That’s wrong!

IRS publication 463 states, “You can have more than one business location, including your home, for a single trade or business.”  Learn why in the free report due to IRS publication 587 you want your office in the home to qualify as an administrative office.

Secret #3: Travel by cruise ship and deduct up to $680 a day.

When you know the rules, it’s easy to travel to a business meeting by cruise ship rather than by airplane or other mode of transportation.  Tax law provides various ways for you to deduct a cruise.  The free report shows an example of a trip to St. Thomas in the Virgin Islands from California or New York.

Learn about IRS Regulation 1.274-4 that gives you two one-owner business friendly rules that you can use to your benefit:

1:  The United States means the 50 states and the District of Columbia.
2: Transportation cost to a foreign destination for seven days or less, excluding the day of departure, is not subject to an allocation between business and personal days.

In the example if you fly to Miami, Florida, board a cruise ship that will take five days to arrive at St. Thomas your deductions will include the cost of:

1 :  Travel to Miami
2:   Cruise ship fare to St. Thomas (not to exceed tax law’s luxury boat limits that range in 2014 from a low of $566 to $680 per day, depending on the dates of travel)
3:   Food and lodging in St. Thomas
4:   Airfare to Miami
5 :  Travel from Miami to home

You have to admit, tax knowledge can be fun which is why I want to send you this free report.

I specialize in “nuts and bolts” tax strategies that bring tax law to life so that business taxpayers and professional tax advisers can put the law to work for them.  In fact, my mission is to clarify taxes so that you take control of your money.

Plucking common sense from the tax law is time consuming and difficult work.  Yet, after more than 25 years, I still get great satisfaction when I can clarify and extract tax dollars from the tax law not only for your pockets but also to add to your net worth.  In fact I have extracted over 400 tax savings tips and would like to share the most important lessons with you so am creating a course that will share seven tax secrets each month for the next year.

Sincerely,

Conrad Oertwig

Learn how to have a tax advantaged one person or family owned micro business.

Conrad has dozens of tax savings secrets he will explain at our October 17-18 Value Investment Seminar.   To help you get an early start, we will send you Conrad’s report “7 Secrets to Paying Less Tax… for the One-Owner Business”, when you enroll in the seminar.

Get seminar details here