Rimberg Online Bookkeeping

What are YOUR Internet Marketing secrets?

Robert

Did you know that a self-employed business owner filling out a Schedule C with your tax return, you have a much greater chance of being audited than a W2 employee? According to Entrepreneur, the IRS suspects that as a sole-proprietor, you will attempt to either hide income or write off personal expenses as business deductions. When it comes time to select tax returns or audit, they check more self-employed than those who are wage earners!

Seem unfair? Well thanks to  Entrepreneur online, you can protect yourself from the discrimination! Check out 5 Ways to Audit-Proof Your Tax Return, and good luck!

Have you got any audit stories you’d like to share?

Robert

Robert Rimberg, CPA in NY inspired by Scott Hoffman and Brendon Burchard; Life’s Golden Ticket! Learn more about the Experts Academy.

Robert
Rimberg Online Bookkeeping

Our Solultion, Your Success

Here are more ideas for you….

1. Health Care- if your employees are relatively young and healthy consider a HSA (Health Savings Account), you’ll save some money and give your employees and yourself some fantastic options.
2. Pre-nuptial Agreement- If you have some assets and you’re thinking of getting married, don’t without a prenup. If he or she won’t sign, say goodbye and consider yourself lucky.
3. Banking- Stop running to the bank to make deposits- speak to your banker about putting in a special check scanner in your office. You or your employee might save 52 hours a year or more.
4. Buy or Lease an automobile? – The more expensive the car and the smaller the driving period (i.e. two years) the cheaper it is to lease. The less expensive the car and the longer driving period (5 years) the cheaper it is to buy.
5. Do you live to work or work to live? Balance is the key. If all you do is work, what are you? If all you do is play, who are you? Take an inventory of yourself and write down everything you do in a day at work? Is it all extremely necessary? Can someone else be doing this? What function that I am doing, makes me the most money? Wouldn’t it be great if I could concentrate on the things that make me the most? Start planning your business day around doing those things that are money makers!

That should be enough to get you started on making some changes.

Robert Rimberg

Is your business protected?  Are you keeping the maximum amount of money in your pocket?  I’ll give a few suggestions here that you can do right away.

1. The maximum Code Sec.179 deduction is $250,000 for tax years beginning in 2008. That means that if you purchased equipment for your business you can expense the entire amount up to $128,000 this year, amounts above must be depreciated. Transportation, Equipment, Leasehold Improvements and Real Estate do not qualify. If you need equipment that will make or save significant money for your business, purchase it now, as opposed to waiting until next year. Financed purchases qualify.
2. If you are sitting with money in a money market account and you have debt- pay down the debt. This is the equivalent of a guaranteed return on your money.
3. Buy Sell Agreement- If you are in a partnership- Do you have one of these agreements? When was the last time it was updated?  You don’t want to be caught with a problem because this wasn’t in place.
4. Estate Planning- When was the last time your will was looked at? Do you have a living will? Does anyone know where to find it, in case of an emergency? You have family heirlooms that you want to give to your children after your gone? Make the list now, and be specific. Don’t rely on your children to “do the right thing”.
5. Exit Strategy- Do you have one? If your business is all about you, what is it worth? The best business plans involve building a business that does not require you, in order to run it efficiently. Without you in the middle, the business is worth a heck of a lot more.

Stay tuned for the next post when I share more tips.

Robert Rimberg, CPA