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How to Pay the Lowest Amount of Taxes… part 3 [Timing of Income and Expenses]

Apr 14, 2009
Taxation & Business
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Good morning all… today is a short one because it is very simple.  As a business owner you have more flexibility than a regular wage-earner employee because you can sometimes choose to defer business income from one year to another.  You can also choose in many cases to time your purchases of business expense items when they are most favorable.  Since the way our tax system is set up punishes you for high income with much higher marginal tax rates, you can often use this ability to time income and expenses to your advantage.  I told you this one would be simple.

 

I thought of a fourth way to reduce your taxes that had slipped my mind originally, and it is a HUGE ONE that many people aren’t even aware of.  I’ll share it with you tomorrow on Tax Day…

 

Have a great day… 


Rob

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23 Comments
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22 Comments

  1. Christian HallerNo Gravatar (48 comments)  •  Apr 14, 2009 @7:56 am

    I an certainly looking forward to that huge way to save taxes tommorrow.

    Christian Haller
    http://www.christianhalleronline.com

    Reply

  2. Duane CunninghamNo Gravatar (51 comments)  •  Apr 14, 2009 @8:52 am

    Hi Rob,

    As usual sound and to the point! Enjoy tax season, Oh the joy..lol

    Duane

    Learn Winning Persuasion
    Techniques that Work Like Magic by Tapping Into the Psychology of
    the Mind with Persuasion Expert Duane Cunningham!

    Reply

  3. Lynn LaneNo Gravatar (57 comments)  •  Apr 14, 2009 @8:52 am

    Rob,
    I can always use your tips. Can’t wait for Tax Day!

    Lynn Lane
    http://www.Warriorofsuccess.com

    Reply

  4. Darryl PaceNo Gravatar (66 comments)  •  Apr 14, 2009 @9:10 am

    Rob,
    You know how to build up suspense. Looking forward to your April 15th tax tip!

    Health, Fitness — Darryl Pace

    Reply

  5. Pam SchulzNo Gravatar (48 comments)  •  Apr 14, 2009 @11:15 am

    Ah the tax man cometh – If anyone truly wants to enjoy the fruit of their labors they MUSt understand how to beat him – legitimately – at his own game!

    Pam
    Great Minds, Great Wealth: How to Raise your Return, Reduce your Risk, Cut your Cost

    Reply

  6. Philip GravesNo Gravatar (52 comments)  •  Apr 14, 2009 @11:51 am

    Great advice… and no mention of shoe boxes full of cash under the bed yet either!

    Philip
    Consumer Behaviour Expert

    Reply

  7. John HoNo Gravatar (86 comments)  •  Apr 14, 2009 @12:03 pm

    Rob,

    With tax time over there, your info couldn’t be more timely!

    Useful tips too!

    John Ho
    Understanding Personalities for Better Influence & Persuasion (WordPress)
    Understanding Personalities for Better Influence & Persuasion (Vox Blog)

    Reply

  8. Lisa McLellanNo Gravatar (90 comments)  •  Apr 14, 2009 @1:28 pm

    I didn’t even know you could defer business income from one year to another. I have to start learning this stuff. Can’t wait for the answer tomorrow.

    Lisa McLellan, Child Care Expert – Babysitters, Nannies, and Au-pairs

    Reply

  9. Sonya LenzoNo Gravatar (30 comments)  •  Apr 14, 2009 @2:21 pm

    Taxes are generally about as fascinating and understandable as …insurance.But you manage to be both interesting and jargon free.! You are engaging and the concept of timing expenses and income, as we start and plan our businesses, is a very good idea.Most people do their business planning around the first of the year, but they should do anouther hard look around April 15th don’t you agree???
    SunnyMarie
    http://www.sunnymarie.com
    http://www.sunnymarie.wordpress.com

    Reply

  10. JJ JalopyNo Gravatar (57 comments)  •  Apr 14, 2009 @2:56 pm

    Perfectly simple.

    I’m excited about my tax day surprise!!

    JJ Jalopy.
    Life Coaching and Home Business Advice with JJ Jalopy

    Reply

  11. Sonya LenzoNo Gravatar (30 comments)  •  Apr 14, 2009 @3:44 pm

    Rob, You manage to make what is usually a boring subject engaging and jargon free. Not an easy task. Good Job.!
    SunnyMarie
    http://www.sunnymarie.wordpress.com

    Reply

  12. April BraswellNo Gravatar (73 comments)  •  Apr 14, 2009 @4:01 pm

    What excellent tax management and avoidance suggestions as a business owner for small and medium sized bizes. Nice anticipatory plug to check back tomorrow. I will SO be here! :)

    All the best,

    April Braswell

    Dating Expert and Online Dating Coach

    Reply

  13. jc mackenzieNo Gravatar (48 comments)  •  Apr 14, 2009 @6:30 pm

    Here’s hoping that next year will be a banner year for deductions at the MacKenzie homestead!!

    Thanks

    JC jc

    Reply

  14. Steve ChambersNo Gravatar (103 comments)  •  Apr 14, 2009 @9:11 pm

    Having a business gives you greater flexibility and allows you to keep more of your income. THhis seems like a win-win to me.

    Steve

    Reply

  15. Yann Vernier - ProfitsTactics.comNo Gravatar (38 comments)  •  Apr 14, 2009 @9:58 pm

    Extremely useful business advice as usual. And a great example of getting your readership eager to come back to read more!

    All the best,
    Yann

    Reply

  16. mark mallenNo Gravatar (35 comments)  •  Apr 14, 2009 @10:42 pm

    Thanks for the free tax advice Rob. Mark

    Marketingscoops

    GlacierIceCream

    Reply

  17. Don ShepherdNo Gravatar (44 comments)  •  Apr 14, 2009 @11:51 pm

    filed for an extension so i could get all this info before i filed… well actually because i’m missing some things i need to file, but it sounded good!

    Don Shepherd
    oregon or bust

    Reply

  18. Mitchell RehaumeNo Gravatar (12 comments)  •  Apr 15, 2009 @12:32 am

    Rob,

    Good post. I wish in Canada we had a better Tax system that offered a few more of the American tax credits for businesses.

    Maybe you can offer some advice for people up North?

    Mitch
    iPhone Expert

    Reply

    Rob NorthrupNo Gravatar (84 comments) Reply:
    April 15th, 2009 at 1:48 am

    Mitch, My advice to productive people living up North…

    Move South.

    We need all the help we can get…

    Seize the Day,

    Rob
    Sales Eagles Soar Above the Competition!
    Personal Asset Protection For Small Business Owners

    Reply

  19. Bob KauferNo Gravatar (49 comments)  •  Apr 15, 2009 @6:33 am

    Rob,

    Thanks again for sharing this information and truely helping us learn.

    Bob Kaufer
    If you MOVE like the Tin Man, you will THINK like the Scarecrow and FEEL like the Lion

    Reply

  20. Pat BeckerNo Gravatar (40 comments)  •  Apr 15, 2009 @2:28 pm

    Pushing the tax bite into the future. Hummm What a good idea. The various “experts” I’ve heard speak all talk about putting the money into plans and taking it out after retirement when you’re making less. So why should I expect to make less after I retire? Retorical question – no need to answer.

    -Pat
    Business Owners Fast Track to Internet Profits

    Reply

  21. David PowerNo Gravatar (42 comments)  •  Apr 19, 2009 @7:31 pm

    I dont think need to just move south , I need to leave the country for a tax break!!!

    Expert in Medical Hypnosis, Success Thinking and Practical Parenting

    David Power’s Hour

    Reply

  22. I Was Able to Lose T h i r t y P o u n d s in Thirty DaysNo Gravatar (1 comments)  •  May 5, 2009 @10:47 pm

    Hi, cool post. I have been pondering this issue,so thanks for posting. I’ll likely be subscribing to your posts. Keep up great writing

    Reply

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