Taxes suck !

[heartbrand]

Originally Posted by Rogean [You must be logged in to view images. Log in or Register.]

Any smart business owner is also exaggerating expense deductions to pay less taxes [You must be logged in to view images. Log in or Register.]

Be very careful about this and compare them to the IRM for what the IRS considers acceptable expense amounts depending on your industry. Many of my clients were 1099-MISC contractors / self-employed individuals who thought along these lines, got audited and now owe $40k +.

[Infectious]

No way your paying 45k in taxes on a 220k earned income. I own a flooring installation business in NJ and every year home depot and lowes send me the dreaded 1099. This year I made over 250k and payed the irs 7k in taxes. Get yourself a better accountant, and get yourself some write offs. I pay my 2 employees in cash so Im left paying tax on everything I bring in. Im surprised your accountant didnt get rid of most of that.

[heartbrand]

Originally Posted by Infectious [You must be logged in to view images. Log in or Register.]

No way your paying 45k in taxes on a 220k earned income. I own a flooring installation business in NJ and every year home depot and lowes send me the dreaded 1099. This year I made over 250k and payed the irs 7k in taxes. Get yourself a better accountant, and get yourself some write offs. I pay my 2 employees in cash so Im left paying tax on everything I bring in. Im surprised your accountant didnt get rid of most of that.

What did you show as your net business income? On 220k of self employment income you're paying $19,623 in self employment tax alone, that's before any income tax.

[Xantille]

You should be charging these monkeys for this advice, HB bro