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


States where Americans pay the least (and most) in taxes
In the U.S. federalist system, each state government decides how to generate revenue — that is, which taxes to collect, and how. No state tax code is identical and, largely as a result, what the average American pays annually in taxes varies from ...
This Harsh Tax Can Make These 3 "Tax-Friendly" States Anything ButMotley Fool

all 3 news articles »


Singapore Says It's Open for Business Even as Taxes to Rise
Singapore Minister for Trade and Industry S Iswaran discusses the Singapore economy, fiscal policy and taxes. Singapore remains a competitive destination for businesses even though it's raising taxes and maintaining some restrictions on foreign workers ...
Singapore Budget 2018: Singapore still competitive despite higher taxes, Iswaran saysThe Straits Times

all 7 news articles »


The Best Tax Software
Our budget pick, TaxAct Tax Software, is a great alternative. However, it's less intuitive and is geared toward those who already have a good working knowledge of filing taxes. Although it's less expensive, this pick offers solid security and is a ...

ABC15 Arizona

Increasing Phoenix firefighter staff could lead to more taxes, new study shows
ABC15 Arizona
According to a new study from the City Council released last week, the City needs to hire 138 more firefighters to get to a 1:1000 ratio, a common calculation that's used by other departments to calculate staffing. The new additions would cost Phoenix ...

and more »


Housing market boom in Johnson County raises taxes, creates obstacles for first-time buyers
JOHNSON COUNTY, Kan. – The housing market in the northeast part of Johnson County is booming, so much so that houses rarely stay on the market for long. Real estate agents say right now is a good time to buy a house - if you can find one. "The house ...

and more »

New York Post

Trump's tax-cut growth gamble could backfire
New York Post
There's disappointing news coming out for President Trump, and it has nothing to do with the Russians or the revelations by beautiful women. The US economy — the one and only thing that got Trump elected — isn't doing as well as people thought just a ...

CBS News

Here's why you should prepare your taxes now
CBS News
Taxes may be inevitable, but taxpayers have some some wiggle room with when they file their returns. This year, the IRS opened its filing window in late January and won't close it until April 17. Even so, many Americans tend to wait until the last ...
IRS Scam Leverages Hacked Tax Preparers, Client Bank AccountsKrebs on Security
Scam Alert: IRS says to watch out for fake tax refundsWSMV Nashville

all 74 news articles »

Sheridan Media (press release)

Anadarko Seeks Refund For Interest On Taxes
Sheridan Media (press release)
Oil, gas, and coal production companies pay their severance taxes on production estimates, and then can file amended, accurate production reports and adjust their payments or refunds accordingly, paying interest when they owe more taxes. Through an ...

The San Luis Obispo Tribune

The Latest: Louisiana's special session on taxes opens
The San Luis Obispo Tribune
Louisiana's lawmakers have opened their latest special session, called by Gov. John Bel Edwards to close a $1 billion budget gap caused by expiring temporary taxes. The House and Senate gaveled in Monday afternoon for their fifth special session in two ...
The Latest: Gov. Edwards says he's 'flexible' on tax planThe News Tribune
How the Louisiana state tax withholding increase will affect

all 75 news articles »


I-Team: Hamilton County property owners owe millions in delinquent taxes
Goering identified dozens of property owners who are delinquent on their property taxes. They include Klass Entertainment, the owner of Cove 51 Nightclub in Sharonville. Goering said Klass is delinquent on $19,000. If it's not paid within a few months ...

Google News

Another Tax Loophole

Just image, you are a small manufacturing company, business has... Read More

Deducting Points On Home Refinances

Deduction of Refinance PointsAny points that you pay in the... Read More

Getting A Second Extension to File 2004 Taxes

Millions of people file tax return extensions every year. The... Read More

Tax Deductions - Mr. C.P.A. Can I Deduct a Pizza? You Too Can Deduct Your Fun By Using Tax Tips

Recently, I stumbled across a concept that could change your... Read More

Save Money on Taxes - Let Uncle Sam Pay for Your Fun!

"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More

Home Based Business Tax Deductions

Running a home based business reaps many wonderful tax deductions... Read More

Navigating The Internet Sales Tax Laws

QUESTION: I have been contacted by my local city... Read More

Rental Property Tax Deductions

Own residential rental properties? This article discusses how income from... Read More

Tax Records - What You Should Keep And For How Long

Many taxpayers are confused about how long they should keep... Read More

Tax Jokes and Quotes

Do you realize that some tax forms ask you to... Read More

Tax Secrets - How Drew Miles Helped Me

How about a Tax Tip?As we all know Taxes are... Read More

Your IRS Tax Appeal Rights

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

IRS Offer-in-Compromise, Hype or Hope?

"Settle for Pennies on the Dollar! IRS debts settled for... Read More

State Tax Information

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

Business Tax Loophole: Leasing Assets To Your Corporation

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

How Likely Are You To Be Audited?

Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More

Are You An Innocent Victim of These Popular Myths?

Misconceptions, misinterpretations and just plain "untruths" are floating about income... Read More

Military Reservists, Enlistees May Get Deferral of Back Taxes

Reservists called to active duty and enlistees in the armed... Read More

What to Do If You Can?t Pay Your Taxes

The end of tax filing extensions is quickly approaching. What... Read More

What Is Tax Law?

The federal tax code is complex. This complexity generally arises... Read More

Fiscal Deity: Tax Consultant

Strategic planning throughout the year results in a minimal tax... Read More

SFR Substitute for Returns: IRS Action on Non-Filers

In the latest Star Wars episode, the evil empire executes... Read More

Back To School ? Educators Deduct School Expenses

As teachers and students head back to school following a... Read More

Understanding Marketing Tax Deductions

Marketing is a necessary expense in running practically any business... Read More

Tax Tips for Home-Based Business Owners

As tax time approaches, many home-based business owners begin completing... Read More