Tax Savings

The County officials then add all the assessed values of the property together in a county.  Further they subtract the applicable deductions in order to determine the net assessed value of the county.

Consider contributing to your child’s college savings into a 529 plan. The contributions are not deductible on your Federal return, but parents may be able to write off contributions up to a certain dollar amount on their state income tax return. Log on to SavingforCollege.com to find out information about your state.

Because of the time before collection of the outstanding debts can be finalized and the uncertainty of collecting on the accounts receivable, the company’s a/r will be discounted by some “factor”. Depending on the credit history, industry, time to collection etc., discounts on the accounts receivable can run between 10%, to over half the eventual possible receivable(s).

Moreover, the chances of audit by the IRS are also minimal if you form your company in this way along with LLC tax savings. Statistics obtained by studies depicts that non incorporated tax payers who files Schedule C due to their businesses often run between two to three percent chances of being audited by IRS. However, it has been observed that LLCs run about 0.33% chances of being audited. It would not be wrong to say that you can avail various other benefits along with LLC tax savings, by forming your company in this way. Most of us always survive to avoid an audit in our company!

The furniture that youre using part time for business purposes can also be partially tax deductible. You get this deduction by depreciating a portion of the total cost of the furniture over a period of years.