Strategy #1. Start a small business and incorporate small business because once you do you will enjoy a plethora of benefits—tax advantages, privacy, asset protection and above all, profit.
Strategy #2. List all your expenses for one solid month; then ask yourself two questions: 1.) "How can I cut those expenses?" and 2.) "How can I deduct those expenses?" One guy said: "Lock me in a dark room with a telephone and I’ll make money." I say "Lock me in a dark room with a telephone and nothing but my own assets and I’ll make money moving my own stuff around."
Strategy #3. Call the IRS: Call 1 (800) TAX-FORM Ask for IRS Publication 334. This booklet
tells all the benefits that are available to your with a small, home-based business.
Strategy #4. Give yourself a raise Instantly! If you work for an employer, and you will have tax deductions that will lower your tax bill, you can increase the allowances on your W-4 and give yourself a raise. What you are in essence saying when you increase your allowances on your W-4 is: "I am going to reduce my tax bill due, so I want you [Mr. Employer] to take less money out of my paycheck now rather than me applying for a refund next year.
Strategy #5. Hire your spouse and pay your spouse at least $2,000 a year. You will use money you are already exchanging with your spouse and by doing this you will take money out of one pocket and put into the other; you will literally create a tax deduction that did not exist previously—you will also allow you spouse to establish an additional IRA. This is $2,000 more you can get into tax deferred status.
Strategy #6. Hire your children. If you pay your each child less than $4,000 a year (the standard exemption everybody enjoys) and they have no unearned income, they don’t have to file a tax return; there is no FICA, FUTA or workers comp and you don’t lose them as a dependent.
Strategy #7. Deduct your vehicles because the IRS says that you can deduct 31 cents a mile. Hey, you already drive your car don’t you? Make it a tax deduction.
Strategy #8. Deduct Your Communication—your telephone, your cell phone, pager and email account.
Strategy #9. Invest In Section 179 Assets like computers, fax machines, telephones, pagers, cell phones, desk, chairs, file cabinets, et cetera. IRC 179 says that you can deduct 179 assets dollar for dollar…up to $18,000 starting 1997.
Strategy #10. Deduct books, newspaper, periodicals, magazines and newspapers because all these things are absolutely necessary for the small business entrepreneur of the 90’s.
Strategy #11. Deduct business training. Go to lots of "business" seminars because "business" seminars are 100% tax deductible. ("Investment" seminars may not be.)
Strategy #12. Take tax deductible vacations in Reno, Lake Tahoe and wonderful vacation spots that are very close to Carson City, Nevada. And while you are there, hold a board meeting at the Laughlin Building. J
Strategy #13. List all your resources—be clear on what you have to work with—Cash, stocks, bonds, insurance, CDs, IRAs (For information on establishing your own self-directed IRA visit our website at http://www.raycomo.com. Your Money Partners, credit lines and investment cards.
Strategy #17. Set an income goal so you know exactly where you have to be to be able to truthfully say "I don’t have to work."
Strategy #18. Set a Capital Goal. Know how much money you have to have in reserve so you can honestly say: "I don’t have to worry about money."
How sad would it be if you didn’t know where you were going—you’d get there and you wouldn’t know you were there. Some of us don’t know if we are wining or losing just because we don’t have a way of keeping track!
Strategy #19. Take Action. Entrepreneurs take action without having all the answers. In Napoleon Hill’s classic book Think and Grow Rich he writes: "Winners make decisions quickly and change those decision very slowly if at all."
Strategy #20. Make a Commitment to yourself and your family because I believe that why you do a thing is infinitely more powerful than who, what, when, where, which or ever how-to.
© MMI By Ray Como. All Rights Reserved
Ray Como has created, produced, copyrighted and self-published 15 audio cassette programs and lots of other forms and tools for business, real estate, corporations, selling, marketing, finance, management and Entrepreneurship.
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