For those of you who live in the USA, tax day has just passed us by… so hopefully you either filed your income tax return or requested an extension from the IRS.
I personally wrote the biggest check I’ve ever written in my life, and sent it to the IRS. Fun, huh?
Of course I can’t complain about being blessed with good finances over the past year. But that’s no reason to pay more than my fair share to Uncle Sam.
I’ve been reading some books about wealth building lately, and while everyone has their differing opinions about how to create wealth, one common denominator is certain. It’s NOT so much about how much money you make; it’s about how much you KEEP.
So I’ve also been studying ways to run my business in the most efficient manner in terms of minimizing my tax obligations. Some of the things I’ve already done include purchasing business equipment before the end of last calendar year, which was 100% deductible for 2006, and maximizing my contributions to a SEP IRA.
Those things alone saved me thousands of dollars on my taxes, and I did several other things that helped too, but I don’t want to get too deep into it because I’m not a CPA or tax attorney 😉
This just goes to say, you need to talk to a good CPA who KNOWS business stuff, and is up-to-date with all the ways you can reduce your taxes within the current tax code.
Don’t wait until next year when your taxes are due. Do it NOW. There are probably things that you can be doing to lower your taxes next year, but if you don’t start now you won’t be able to maximize those benefits. For example, there is one thing I am doing this year that had I done it last year it would have saved me a LOT of money on my taxes. Potentially tens of thousands of dollars of savings.
I will talk about that particular thing in the next week or so in a different edition of Eric’s Tips.
In the mean time, I would like to give you FREE access to a recording. In this 40-minute interview, we discuss the concept of using IRA’s to protect passive income generated by websites.
We were going to charge a fee for access to it, but I decided it would be a good way to get you all thinking more strategically about your online business and tax situation, so here it is for free…
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(The above is a direct link to the MP3 file. You can do a “right-click save target as” to save and listen to it on your PC or MP3 player. Or you can try clicking on it and if you have Quicktime or another browser plugin you should be able to play it directly from the web.)
If you’re ready to take the first step and start reducing your taxes today, I recommend the following resource from Eva Rosenberg. She is also known as the “Tax Mamma” and she specializes in tax break-throughs for Internet Marketers.
Here’s the best part. Right now you can pick up some great tax-saving advice for only $7.77 at this page:
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I still suggest meeting with a CPA, but this is a great place to start. In fact, I recommend printing out Eva’s checklist and resource sheets and bring them with you to make sure your CPA knows what they’re doing.
Most tax professionals are pretty expensive (my tax guy charges and arm and a leg…and he’s worth every penny), so this is a great opportunity to get some practical and proven money-saving techniques for a ridiculous low price.
Sorry I’ve been so quiet lately, but I’m working on something very big which I’ll be able to talk about soon…
As always, you are welcome to leave your comments here in the blog.
Have a great day!