TODD’S TAX TIPS AND LOOPHOLES

BUSINESS TRAVEL CAN BE TOTALLY EXPENSED AS LONG AS YOU KEEP GOOD SUPPORT RECORDS. IF YOU TRAVEL WITHIN THE UNITED STATES, AS LONG AS YOU DO BUSINESS ON THE FIRST AND LAST DAY OF YOUR TRIP, ALL LEGITIMATE EXPENSES CAN INCLUDE AIRFARE, CAR MILAGE IF YOU DRIVE, GAS, TAXI, TRAVEL INSURANCE, LODGING, FOOD & BEVERAGE AND TIPS ALONG WITH MANY OTHER DEDUCTIBLES; KEEP A GOOD AND SEPARATE LOG OF EACH TRIP.

IF YOU DO NOT WANT TO KEEP A LOG OF EXPENSES YOU MAY TAKE A PER DEIM SINGLE DAILY DEDUCTION, PLEASE REFER TO MY TAX TIPS OF OCTOBER 2009.

PLAY THE TAX GAME INTELLEGENTLY.

KEEP A LOG OF ALL BUSINESS CALLS, PHYSICALLY VISIT YOUR DESTINATIONS PICKING UP LITERATURE OR ANY MATERIALS AVAILABLE, IDENTIFY THOSE IN YOUR INTERVIEW AND THE NATURE OF THE CONVERSATIONS, PHOTOS ALSO ARE VERY STRONG EVIDENCE IN CASE OF FUTURE IRS AUDIT.

REMEMBER TODD’S BASIC TAX STRATEGY FOR BUSINES EXPENSES,
REASONABLE AND NECESSARY

FROM THE DESK OF TODD J. MC MILLAN

TAX TIPS
Todd's Tax tips business strategies

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MANY WHO BUSINESS TRAVEL OUT OF THEIR AREA ARE ENCUMBERED WITH THE HASTLE OF RECORD KEEPING OF ALL TRAVEL EXPENSES. I.E. FOOD, LODGING, TRANSPORTATION ETC. ETC.

PER IRS PUBLICATION, 1542, AVAILABLE ON THE INTERNET AT, www.irs.gov, YOU CAN PULL-UP THE ENTIRE PUBLICATION, WHICH REFLECTS THE PER DIEM ALLOWABLE FOR MAJOR AREAS.

THE PER DIEM WILL VARY FROM SEASON TO SEASON DEPENDING UPON THE ECONOMICS OF EACH AREA.

SAY, THE DENVER SKI AREA IS CONSIDERABLY MORE EXPENSIVE IN
SKI SEASON INSTEAD OF THE SUMMER.

FOR INSTANCE THE LAS VEGAS AREA PER DIEM FOR 2008 VARIED FROM $157.00 TO $188.00 PER DAY.

YOU CAN STILL DEDUCT YOUR TRANSPORTATION COSTS TOO AND FROM YOUR AREA TO THE VISITED AREA.

IF YOU USE THE PER DIEM METHOD YOU DO NOT HAVE TO KEEP RECEIPTS BUT YOU MUST SUBSTANTIATE THE BUSINESS NATURE OF THE TRIP.

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Todd’s Tax tips and business strategy

SAVE THAT “CLUNKER”

YOU CAN TOTALLY EXPENSE YOU BUSINESS CAR IF YOU HAVE A SECOND CAR, REGARDLESS OF ITS AGE AND CONDITION, AS LONG AS IT IS REGISTERED AND STATE LICENSED.

IF YOU DRIVE, SAY OVER A 1,500 MILES A MONTH, MILEAGE IS USUALLY THE BEST IRS TAX DEDUCTION, IRS ALLOWS FIFTY FIVE ($.55) CENTS PER MILE THIS YEAR. FOR SHORTER MILEAGE, DEPRECIATION AND ALL EXPENSES ARE USUALLY BEST, UNLESS YOUR BUSINESS CAR IS QUITE EXPENSIVE, SAY OVER $50,000.00 NEW. ALWAYS BEST TO CHECK BOTH METHODS TO GET MAXIMUM DEDUCTION.

IRS & STATE INCOME TAX MITIGATION

WYOMING CORPORATIONS, IN ADDITION TO A STRONG LAYER OF ANONYMITY AND INSULATION, THE “CORPORATE VEIL” OFFER STRONG IRS TAX MITIGATION. TAX MITIGATION IS NOT TAX EVASION; RATHER IT IS TAKING ADVANTAGE OF ALL APPLICABLE TAX CODES AND THEIR RELATED DEDUCTIONS AND EXPENSES. AN OLD ACCOUNTING SAYING, “TAX CODES ARE FOR THE INFORMED, THE UNINFORMED SIMPLY PAY”.

OVER NINETY (90%) PERCENT OF ALL WHO FILE PAY TOO MUCH TAX AS THEY DO NOT KNOW THE TAX CODES. ALTHOUGH THE CODES MAY VARY, YEAR TO YEAR, IT IS NOT TOO DIFFICULT TO MASTER A BASIC UNDERSTANDING. ALL CODES ARE ON THE INTERNET UNDER IRS.COM.

A WYOMING CORPORATION CAN HOLD CORPORATE IRS TAXABLE INCOME AT 15% AND IN MOST CASES ELIMINATES ALL STATE TAXES. WYOMING CORPORATIONS CAN SUBSTANTIALLY REDUCE IRS TAXES VIA ITS ABILITY TO EXPENSE MANY DEDUCTIONS THAT DIRECTLY BENEFIT ITS OFFICERS, AND STOCKHOLDERS, TO INCLUDE, BUT NOT LIMITED TO OFFICER AND EMPLOYEE DEDUCTIONS OF: (a) MEDICAL AND DENTAL PLANS, (b) RETIREMENT PLANS, (c) INSURANCE PROGRAMS, (d) COMPANY VEHICLES, (e) ENJOYABLE “GET A WAYS” IN CONJUNCTION WITH BUSINESS TRIPS (f) AND MANY, MANY MORE AS THEY MAY BE APPLICABLE TO YOUR PARTICULAR BUSINESS AND COMPANY.