Bank finance articles and tips

Is it possible that you pay too much in taxes? Would you rather pay less in taxes?

Are you missing loopholes and deductions that let you pay fewer taxes and keep more of your money?

Is there any possibility that you are or have given the government more than its fair share of your money? If so, you owe it to yourself and your family to take advantage of every tax break you can.

With expert help, you can take advantage of legal deductions, write-offs and loopholes that you may have never considered.

Thousands of people every year, from all over the country, pay too much tax. Ironically, this often is the result of avoiding declaring income in trying to pay less tax. In many cases claiming income can actually lower your tax bill!

Many people "forget" to declare the extra money they made on the side to avoid paying taxes on it. What they often don't realize is that in earning that money, they often had huge potential write-offs available that would not only completely offset the income made, but actually cut their taxable income from employment.

Generally, all expenses incurred in the maintaining or expanding of any endeavor intended to make money or increase personal assets are considered tax-deductible. If you have a small business or hobby that generates income you can take legal deductions and pay less tax.

Do you have a hobby from which you sometimes make income?

Do you occasionally do work for others to earn some additional income?

If so, here are some write-offs that you might be missing...

Your home often is your place of business. Are you using your living room to hold business meetings; do you have a spare room for an office? Do you make coffee for your clients? Do you have a place in the home that you store your tools of trade? Since you are allowed tax deductions for the upkeep of your place of business, you are permitted deductions for maintaining your place of residence.

If you own your own home, you have the right to depreciate a percentage of the home's total square footage depending on the percentage of your home that is used exclusively for your business.

If you rent, you are paying not only for living quarters, but for rental on your place of business, as well. You may therefore be entitled to write off a substantial portion of your monthly rent as a business expense. Example: You rent your home for $1500 per month; if we assume one third of your home is used exclusively for business, this means that 33% of it or $500 per month could be tax-deductible.

Do you have utilities, electricity, gas, phone, etc.? Up to a third of these can be deductible.

Any driving which takes you to or from any place in which you have performed or intended to perform some action or actions which in some way directly affects your business is allowed as a mileage deduction. The current allowable mileage deduction can be taken right off the top of your taxable income. Another option is to lease a car for your business purposes. If this is done, every cent invested into the auto will be tax-deductible.

Virtually all expenses incurred during the course of traveling with the purpose of maintaining or expanding your business is tax deductible. For example, if you live in Florida and for the purpose of expanding your business you decide to spend two weeks in California, the expenses incurred during the trip are tax-deductible.

Any time that you dine in any restaurant or similar establishment, it can be considered a business meal. It can be tax deductible if you were in the company of a prospective customer or business associate. If some aspect of the business was discussed, the meals and refreshments are deductible. Always remember to keep your receipts! Check the current tax information for the correct allowable percentage you may claim as a deduction.

Hobbies or even favors that produce income or compensation, no matter how little, can be potential deductions. There are many legal deductions that will let you not only zero out the income earned, but can create a loss that will lessen your overall Gross Income. This often results in lessening your tax liability. It can also increase potential earned income credits and/or refunds that will help you pay less in taxes. Examples include sewing, handyman work, or gaining income part time as a mechanic, musician, babysitter, cook, animal breeder, etc.

When it comes to taxes, look at all the angles. Don't cheat and don't lie. But at the same time, don't needlessly give your money away! When you have your taxes prepared, make certain that you use a professional who will check for all the legal deductions that will allow you to minimize your liability.

For more money saving and money making tips, you can visit us at http://www.themoneymagicshop.com. We are always lookout for new ideas, products and services to help you save money or make money.

By Timothy E Miller