How to Drastically Reduce Taxes Legally - A Practical Example

💰Hiring your children can save you thousands in taxes, especially if you pay them based on services provided to your business.

💼Optimizing your salary can result in significant tax savings by reducing self-employment taxes.

🔍Deducting expenses such as health insurance premiums, HSA contributions, and home office costs can further reduce your tax burden.

🚘Taking advantage of mileage deductions or Section 179 bonus depreciation for business vehicles can result in substantial tax savings.

📱Deducting expenses for electronics used in your business, such as smartphones and laptops, can contribute to tax savings.

Who is eligible to hire their children?

—Entrepreneurs with a business can hire their children as long as they pay them based on the services provided and treat them as regular employees.

What is reasonable compensation?

—Reasonable compensation refers to the fair market value of the services provided by the business owner. It should be determined based on industry norms and the work performed.

Can I deduct health insurance premiums if I have another physical office?

—Yes, you can deduct health insurance premiums as long as you use your home office for administrative tasks related to your business.

How can I deduct mileage for my business vehicle?

—You can deduct mileage for business use by keeping accurate records of your business-related travel. You can choose between the standard mileage rate or actual expenses.

Can I deduct expenses for electronics used for personal and business purposes?

—You can deduct a portion of the expenses for electronics used for both personal and business purposes. It is important to keep track of the business use percentage and follow accountable plan rules.

00:00Learn how to legally reduce taxes as an entrepreneur with practical examples.

01:00The video creator is a certified public accountant specializing in helping entrepreneurs save taxes.

02:40Hiring your children and paying them based on services provided can save you thousands in taxes.

05:30Optimizing your salary can result in substantial tax savings by reducing self-employment taxes.

08:20Deducting health insurance premiums, HSA contributions, and home office costs can further reduce your tax burden.

09:50Taking advantage of mileage deductions and section 179 bonus depreciation can result in significant tax savings for business vehicles.

11:40Deducting expenses for electronics used in your business, such as smartphones and laptops, can contribute to tax savings.

12:10Join the course or visit the website for in-depth knowledge and implementation of tax-saving strategies.