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Minimize Your Small Business TaxesThis page about small business taxes will introduce you to a world that relatively few people know about. You already have or you desire to start a home based business. But did you know that just by virtue of having your own small business you are immediately entitled to several thousands of dollars a month in tax deductions? This is without having to spend any more money than you already do? An interviewer once asked Bill Gates if he could identify the most important element to his success. “A computer on every home or office desk in the world” is the answer I was expecting to hear. Instead he said the single most important ingredient to his success is a “working knowledge of the IRS tax code.” Wow, are you as surprised as I was? In the following pages and links are small business tax strategies that you can start implementing today. After you have moved through the list on this page and identified all the items that apply to you add them up. Tomorrow walk into your payroll department where you work and tell them you would like to fill out a new W-4 Form. For every $3,500 worth of annual tax deductions you identify you can add 1 withholding to your W-4 Form. For the average 1 to 2 income family in America this will increase your monthly take home pay by $96.25 per month (27% federal + 6% State * $3,500 = $96.25) Let me caution you though that if do not follow through and implement each of the small business tax deductions that you identify you will have to pay this same amount back next April. But implementing them is simple. In fact another way you can look at this is a home based business in and of itself. Benjamin Franklin is credited for saying “A penny saved is a penny earned.” Now I realize that in today’s economy a penny does not go very far but if you take into account inflation from the time he said this perhaps you could say “A $100 bill saved is a $100 bill earned ” The first set of small business tax deductions are for an unincorporated business (sole-proprietorship).
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