document.write('<p><b><font class="heading">Tax Planning For Small Business Owners</font></b></p><p><font class="text">Tax planning is');
document.write(' a process of looking at various tax options in order to determine when, whether, and how to conduct business and person');
document.write('al transactions so that taxes are eliminated or considerably reduced.</p><p>Many small business owners ignore tax plan');
document.write('ning, and don’t even think about their taxes until they’re scheduled to meet with their accountant; but tax planning is ');
document.write('an ongoing process, and good tax advice is a very valuable commodity. You should review your income and expenses monthly');
document.write(', and meet with your CPA or tax advisor quarterly to analyze how you can take full advantage of the provisions, credits ');
document.write('and deductions that are legally available to you.</p><p>Although tax avoidance planning is legal, tax evasion – the re');
document.write('duction of tax through deceit, subterfuge, or concealment - is not. Frequently what sets tax evasion apart from tax avoi');
document.write('dance is the IRS’s finding that there was some fraudulent intent on the part of the business owner. The following are fo');
document.write('ur of the areas most commonly focused on by IRS examiners as pointing to possible fraud:</p><ol><li><p>A failure to re');
document.write('port substantial amounts of income, such as a shareholder’s failure to report dividends, or a store owner’s failure to r');
document.write('eport a portion of the daily business receipts.</p></li><li><p>A claim for fictitious or improper deductions on a retu');
document.write('rn, such as a sales representative’s substantial overstatement of travel expenses, or a taxpayer’s claim of a large dedu');
document.write('ction for charitable contributions when no verification exists.</p></li><li><p>Accounting irregularities, such as a bu');
document.write('siness’s failure to keep adequate records, or a discrepancy between amounts reported on a corporation’s return and amoun');
document.write('ts reported on its financial statements.</p></li><li><p>Improper allocation of income to a related taxpayer who is in ');
document.write('a lower tax bracket, such as where a corporation makes distributions to the controlling shareholder’s children.</p></li>');
document.write('</ol><p>&nbsp;<br><b>Tax Planning Strategies</b></p><p>There are countless tax planning strategies available to a sm');
document.write('all business owner. Some are aimed at the owner’s individual tax situation, and some at the business itself. But regardl');
document.write('ess of how simple or how complex a tax strategy is, it will be based on structuring the strategy to accomplish one or mo');
document.write('re of these often overlapping goals:</p><ul><li><p><b>Reducing the amount of taxable income</b></p></li><li><p><b>Lo');
document.write('wering your tax rate</b></p></li><li><p><b>Controlling the time when the tax must be paid</b></p></li><li><p><b>Clai');
document.write('ming any available tax credits</b></p></li><li><p><b>Controlling the effects of the Alternative Minimum Tax</b></p></l');
document.write('i><li><p><b>Avoiding the most common tax planning mistakes</b></p></li></ul><p>&nbsp;<br>In order to plan effectivel');
document.write('y, you’ll need to estimate your personal and business income for the next few years. This is necessary because many tax ');
document.write('planning strategies will save tax dollars at one income level, but will create a larger tax bill at other income levels.');
document.write(' You will want to avoid having the “right” tax plan made “wrong” by erroneous income projections. Once you know what you');
document.write('r approximate income will be, you can take the next step: estimating your tax bracket.</p><p>The effort to come up wit');
document.write('h crystal-ball estimates may be difficult and by its nature will be inexact. On the other hand, you should already be pr');
document.write('ojecting your sales revenues, income, and cash flow for general business planning purposes. The better your estimates, t');
document.write('he better the odds that your tax planning efforts will succeed.</p><p>Hidden within the labyrinthine course known as t');
document.write('he Internal Revenue Code are valuable money-saving strategies overlooked or undiscovered by many business owners. At the');
document.write(' same time there are misleading passages that have been the cause of millions of dollars mistakenly paid to the IRS. Dol');
document.write('lars that should have remained in business owners pocket.</p><p>&nbsp;<br><b>Alternative Ways to Save on Business Inco');
document.write('me Taxes</b></p><p>&nbsp;<b><br>Maximizing Business Entertainment Expenses</b></p><p>Another interesting way to save');
document.write(' on your taxes, that can be fun as well as rewarding to you and your business, is to deduct entertainment expenses. Ente');
document.write('rtainment expenses are great deductions to add to your taxes and can save you money, however there are some important gu');
document.write('idelines to consider when including them on your return.</p><p>In order to qualify, business must be discussed before,');
document.write(' during, or after any meal deducted. The surroundings must be conducive to business discussion. For instance, a small or');
document.write(' quiet restaurant would be an ideal location for a business dinner. Be careful of locations that include ongoing floorsh');
document.write('ows or other distracting events that inhibit business discussions. Prime distractions are theater locations, ski trips, ');
document.write('golf courses, sports events, and hunting trips.</p><p>Starting in 1994, the IRS allows up to a 50% deduction on entert');
document.write('ainment expenses. Good documentation of these expenses is required in order for the IRS to consider these deductions. Re');
document.write('member that the business meal must be arranged with the purpose of conducting specific business. Bon appetite!</p><p>&');
document.write('nbsp;<br><b>Important Business Automobile Deductions</b></p><p>An automobile is quite an expense, especially for those');
document.write(' of you who own more than one. There is a light at the end of the tax tunnel, though. Recently, the IRS has accepted a n');
document.write('ew mileage deduction rate. The rat');
document.write('es are 44.5 cents per business mile, 14 cents per charitable mile, and 18 cents per moving/medical mile.</p><p>Another c');
document.write('ommon way to increase deductions is to include both cars (if you own more than one car) in your deductions. This is poss');
document.write('ible since the business miles driven determine business use. To figure business use, divide the business miles driven by');
document.write(' the total miles driven. You can do this for each car driven for the business and can bring significant deductions.</p>');
document.write('<p>This is simply a wonderful way to save, but remember: in order to be effective, a consistent mileage log should be k');
document.write('ept. Consider meeting with a professional to determine the most efficient way of tracking mileage and other costs. Happy');
document.write(' driving!</p><p>&nbsp;<br><b>Increase Your Bottom Line When You Work At Home</b></p><p>The home office deduction is ');
document.write('quite possibly one of the most difficult deductions ever to come around the block. Yet, there are so many tax advantages');
document.write(' it becomes worth the navigational trouble…Here are a few common tips for home office deductions that can make tax seaso');
document.write('n significantly less traumatic for those of you with a home office.</p><p>Try prominently displaying your home phone n');
document.write('umber and address on business cards, have business guests sign a guest log book when they visit your office, deduct long');
document.write('-distance phone charges, keep a time and work activity log, retain receipts and paid invoices. Keeping these receipts ma');
document.write('kes it so much easier to determine percentages of deductions later on in the year.</p><p>The tax laws allows you to im');
document.write('mediately expense, rather than depreciate over time, up to $108,000 worth of business assets that you purchase during a ');
document.write('year. The key is “purchase”…it can be new or used. All home office depreciable equipment meets the qualification. Also, ');
document.write('if you purchase more than $108,000 in equipment, you can expense the first $108,000 then <i>depreciate</i> the rest.</p>');
document.write('<p>Make sure that before you start deducting all of these items on your return, that you have qualified for the Home O');
document.write('ffice Deduction. You should consider meeting with a tax professional for further Home Office Deduction advice.</p>');