Ian Andrews Leaf is a renowned tax expert who came up with tax protecting methods for several small enterprises. For twenty decades Ian Andrews has gained invaluable experience working at prep taxation system, this has helped him devise taxation protecting strategies.
Under his system, Ian Andrews leaf collected tips on income tax intended to offer likely tax preserving ideas for both small and residence businesses. All these ideas have certain conditions that should be met for its full implementation. However, these taxes reducing ideas may not be beneficial to everybody.
Ian Andrews’ first recommendation targets small business owners who should deduct dwelling expenses by having a certified home office. The owners are supposed to calculate the value of the business unit in proportion to the entire household and deduct the required expenses proportionally.
His second recommendation involves transforming charitable donations into business deductions. These deductions are met by offering donations to charities in exchange for advertising.
The third recommendation includes using a young child and reducing National Insurance Efforts Function (FICA). This policy represents Medicare insurance shift, taxes on profits, Public Safety and Security to the child’s reduced tax bill bracket. Ian Andrews leaf suggests that wages should be exempted from FICA if a child is below eighteen years.
The fourth recommendation is the use of Routine C to receive business salary just like a singular proprietorship. This policy is not applicable if more than one individual owns a business. Companies operated jointly are required to file Kind 1065. In case a business is owned by a husband and wife, the business would not be regarded as a sole proprietorship.
As such to be considered a sole proprietorship business, the two have to categorize their roles, that is, one should be an employer while the other should become an employee. In case a sole proprietor manages more than one firm, they are expected to fill different Schedule C for the two businesses. There are penalties applied if an individual combines more than one businesses on a single Schedule C.