Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Rearrange Your Affairs For Maximum Tax Savings > NetSparsh - Viral Content you Love & Share

Rearrange Your Affairs For Maximum Tax Savings

One way to maximize your business profits is by reducing your taxes. Frequently, income and other taxes could be lowered significantly if only the taxpayer were willing to plan ahead. By taking some simple steps to rearrange your affairs, you could save a fortune!

1. Are You Splitting Your Business Income?

You may pay reasonable salaries to spouse or children through your incorporated or unincorporated business. If you are not doing so, you may be missing out on some real tax savings.

In the Canadian Federal Budget of February 16, 1999, measures were introduced to discourage income splitting with minor children through family trusts. However, these measures do not apply to paying reasonable wages to family members. Thus, this may be one of the last ways of legally splitting income left for the small business person with minor children.

Obviously, the amounts paid must bear some relationship to the work performed. Of course, all required payroll taxes should be remitted and proper records need to be maintained.

Why not rearrange your affairs so that family members with little or no income can perform duties for and be paid by your business? Then, they can contribute out of their own income towards the operation of the household. In this way, little or no tax will be paid by your dependants and you will have successfully shifted taxable income out of your hands.

2. Should You Register For The Goods And Services Tax?

Even if your business grosses less than $30,000.00 per year in taxable sales, you may still benefit by registering your business to collect the Goods and Services Tax (G.S.T.). If you are not doing so, you may be missing out on some real tax savings.

For example, you will be paying G.S.T. on many of your business expenses. If not registered for G.S.T., you must absorb this cost. If registered, you may deduct the G.S.T. paid on such business expenses (input tax credits) from the tax collected. Many business persons expect to pay G.S.T. and it doesn`t really cost them anything since they deduct such amounts as input tax credits from the G.S.T. they collect from their customers.

In some cases, the quick method of calculating G.S.T. may actually allow you to retain more of the G.S.T. collected than you would have just claiming the G.S.T. actually paid by you.

A factor to consider also: If you are not registered for G.S.T. in Canada, you are telling your clients that you do under $30,000.00 per year in taxable sales or that you cheat. Is this the image you want your clients to have?

3. Could You Benefit From Incorporating Your Business?

Although incorporating your business may result in increased accounting and legal fees (for setup, extra tax returns, and annual minutes), the advantages of incorporation may justify this added expense. Not only will you enjoy limited liability by incorporating, but you may reap significant tax savings as well.

Corporations are often subject to lower tax rates on small business income. In Canada, sales of shares of qualifying small business corporations can obtain a lifetime $500,000.00 capital gains exemption. Certain tax incentives and government programs are only available to incorporated entities. Additionally, corporations can be used for income-splitting and estate, retirement, and succession planning objectives.

4. Do You Engage in Tax Planning Year-Round?

Some people only worry about their taxes during tax season. However, you will save a fortune in taxes, legally, if you make tax planning your year-round concern.

Can you make some changes to turn your hobby into a moneymaking business? Can you use that extra room in your house as a home office for your business? Can you arrange to use your car more for business purposes and have you documented your business use mileage? Can you arrange for more of your entertainment expenses to be business related and have you listed the business purpose on the back of each receipt?

Do you make business and personal purchases, investments, and other expenditures with tax savings in mind. Do you document your expenses well so that you they would survive a tax audit? Whenever you are faced with a business or personal financial decision, do you consider the tax consequences?

Make year-round tax planning part of your business management mindset and, thus, enjoy maximum tax savings. Yes, by rearranging your affairs to account for tax implications, you will save a fortune in taxes.


J. Stephen Pope, President of Pope Consulting Inc., has been helping clients to earn maximum business profits for over twenty-five years.

For valuable Work at Home Small Business Ideas, visit:

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at

Washington Post

House Republicans have a little-known plan to raise taxes on teachers by $2 billion
Washington Post
The education expense deduction is one of many differences between the House and Senate bills that still have to be ironed out before a tax plan can be sent to President Trump's desk. The House has already passed its version of the bill. The Senate is ...
The ultra-wealthy will stay that way, thanks to GOP tax billsCNBC
Trump's tax plan would shaft 11 million taxpayers - Yahoo FinanceYahoo Finance
The 3 False Promises Of The GOP's Tax PlanForbes
New York Times -Bloomberg -Politico
all 871 news articles »

Vanity Fair

The House Tax Plan Is Conveniently Full of “Drafting Glitches” That Benefit the Rich
Vanity Fair
Unless your media diet consists solely of First Daughter-in-Law Lara Trump's “Real News,” you know that the proposed Republican tax plans are not, in the words of Donald Trump, “so bad for rich people.” In fact, both the House and the Senate's plans ...
Editorial: Under latest tax bill, NC sends $669 million MORE to

all 20 news articles »

Nearly three million diesel car drivers hit by new 'green' taxes
Nearly three million diesel car drivers will be hit with new "green taxes" from next year under new measures to phase out the vehicles in yesterday's Budget. The new higher taxes will affect around 800,000 drivers of diesel company cars and 2 million ...
UK Budget: Council taxes to double on empty propertiesFinancial Times
Diesel car prices plummet as Chancellor looks set to raise
Buyers of new diesel cars will be slapped with a tax bill of up to £500 extra as Hammond announces plans to crack ...Daily Mail
The Sun -iNews -City A.M.
all 2,246 news articles »

Mother Jones

Nine Out of Ten Economists Agree: The Republican Tax Bill Is Ridiculous
Mother Jones
There's really no reason to think that corporate taxes are too high in America, but it's still possible that legitimate tax reform could help the economy. That calls for tax reform that simplifies the corporate code; thoughtfully reforms our current ...
Don't be fooled: Republicans aren't simplifying the tax codeThe Week Magazine
Out of 42 top economists, only 1 believes the GOP tax bills would help the economyVox

all 75 news articles »

Lansing State Journal

Graduate students worry taxes will skyrocket under House tax bill
Lansing State Journal
EAST LANSING - The Tax Cuts and Jobs Act — passed by the U.S. House of Representatives last week — is being championed by Republicans as an economic boon for average Americans. Dawson McCall — a graduate student at Michigan State University ...
Worried about moves to tax tuition waivers, Utah graduate students rally against GOP tax plansSalt Lake Tribune
Graduate Students Sound Alarm on Huge Increases Under GOP Tax Plan: 'I Would Be Hopelessly Priced Out'TIME
Senate tax reform markup opts to keep tax exemption for graduate studentsWashington Examiner -New York Magazine
all 61 news articles »

Wall Street Journal

How Charitable Donors Can Minimize Taxes This Year
Wall Street Journal
Another year of climbing stock prices and the uncertainty surrounding the Republican tax plans currently before Congress make smart charitable giving especially tricky this year—and important. With the right approach, donors can maximize their ...

Bloomington Pantagraph

Brandt deal forgives taxes based on job creation
Bloomington Pantagraph
Under the deal, Brandt also would get back all of its property taxes on two adjacent properties every year through 2027, regardless of employment figures, and all property taxes on improvements to the plant property for up to five years, depending when ...

and more »

New York Times

CEO Deficit Fears Dissolve With the Prospect of Corporate Tax Cuts
New York Times
In mid-October 2012, Jamie Dimon, chief executive of JPMorgan Chase, hosted a luncheon on the 49th floor of the firm's Park Avenue headquarters. The guest list was a boldface roll call of corporate executives and policymakers: Lloyd C. Blankfein of ...

Kansas City Star

GOP tax plan would send money straight into Trump's pocket
Kansas City Star
President Donald Trump and his fellow Republicans may have gotten elected as “outsiders,” “anti-establishment” or “populist” politicians, but with the support of the Trump administration, the Republican-controlled House of Representatives has passed a ...

and more »

A tax break for private jets? Portman and Brown were behind it - and it's badly misunderstood
WASHINGTON -- Did you hear the one about private jets getting a special break in the Senate tax package? This one has it all: rich folks, privilege, a Republican bill, a Senate Democrat who once pushed the measure and a Republican who may get it over ...

Google News

Small Business Tax Deduction - Write-Off Bad Debts

Practically every small business has receivables that it cannot obtain... Read More

Where to Find Tax Breaks for Your Home Based Business

April 15th looms in front of most people every year... Read More

How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share

How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More

State Tax Information

All states also have their own tax system. Typically there... Read More

Gambling Income and Expenses - Tax Requirements

Hit a big one? With more and more gambling establishments,... Read More

Alas! In E-Commerce Taxland

In trying to comply with tax laws for your e-business,... Read More

To Tax or Not to Tax - This is the Question

To tax or not to tax - this question could... Read More

The Implications of Income Tax Charge on Estate Planning

OverviewIn the Pre-Budget Report of December 2003 the Chancellor Gordon... Read More

Small Business Tax Credit - Americans with Disabilities Act

Many small businesses complain when confronted with the expense of... Read More

Are You Overpaying Taxes If You Use Tax Preparation Software?

For many business owners the answer to this quandary is... Read More

Employment Taxes ? Depositing With The IRS

If your business has employees, you must pay employment taxes.... Read More

Business Tax Loophole: Leasing Assets To Your Corporation

While there are many equally valid reasons to incorporate, saving... Read More

Tips and Simple Guidelines on How to Calculate Payroll Taxes

Managing a business small, medium or big requires you to... Read More

Hurricane Katrina ? How To Use Your Business Loss To Get A Refund on 2004 Taxes

With the massive losses caused by Katrina, the economy of... Read More

Your IRS Tax Appeal Rights

Are you in the middle of a disagreement with the... Read More

Rearrange Your Affairs For Maximum Tax Savings

One way to maximize your business profits is by reducing... Read More

Reducing Taxes Through Dividend-Salary Mix Calculations

Should I take wages or dividends from my privately owned... Read More

Income Tax Returns Your Accountant Should Not File

You've been feeling uneasy (perhaps even guilty) because you've failed... Read More

Identity Theft ? Impacting Your Taxes?

If your identity is stolen, your finances can quickly become... Read More

Slash Tax when Buying a Business

When buying a business, how the "purchase price" is made... Read More

Amending Procedural Laws for Collection of E-taxation

The electronic transaction ordinance defines the certificated copies in which... Read More

1031 Exchange Rules and Requirements

Following is a reproduction of the IRS's rules and requirements... Read More

Car Donation: An Easy Way to Support Your Favorite Charity and Get a Tax Deduction

Most people look forward to getting their tax return, but... Read More

Correspondence From The IRS ? Yikes!

It's a moment every person dreads. You pick up the... Read More

Small Business Tax Issues for Self-Employed Individuals

The United States is a nation of entrepreneurs. There are... Read More