Corporation tax advantages - BAF

Discussion in 'Articles & Tutorials' started by mfost, Aug 28, 2012.

  1. mfost

    mfost
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    I am beginning a bit up the line of where you find this at in a college text book, however, understanding the angles of certain advantages help to encourage and enlighten entrepreneurs. This is a quick sift on corporation tax advantages. If you already know, fine. If not, let's walk the talk.
    A "C" corporation has the greatest veil of protection, the best tax advantages, and a bit more responsibility. Tax time is creeping around again, and if you've worked hard to earn your money you want to keep as much of it as possible. This where the "C" corp. has the best advantage.
    The true purpose of corps. is to shield us from liability. Some one tries to sue you for any asinine reason in this litigious society, your corp. is the veil and the shield that protects you from the attack. Well, brothers and sisters, taxes are a liability also. Now, this is in no way advice not to pay your taxes. To enjoy the privileges and accommodations that the government offers outside of our right to have something, then taxes are necessary...so, let's pay our taxes, well, only the ones we cannot get around paying according to law. Your corp., however, is an entity that exist under a totally different set of rules. Many of our country men (male/female), believe that these laws are designed exclusively for the rich. That is not entirely true. The fact is, corporate law is designed exclusively for those who know how to utlilize it. "Utilize" is verb that means:

    to put to use; TO TURN TO PROFITABLE ACCOUNT.

    When we don't have knowledge of a particular thing how can we then profit from it? It is not that the knowledge itself is secret, most people just don't know about it. Once we learn and understand it then we can UTILIZE it in our best interest. Keep this in mind, ignorance is the only secret.
    Now, come tax time, how do you keep the lion's share of the money you've earned through your corp., or better yet all of it? Believe it or not, it is extremely simple. My aunt works for a certain tax corp. After the first tax season of her employment, she was immediately promoted to manager. This certain tax corp. thought she was a genius. The thing is, she "utilized" the tax shelters that I taught her to use years prior to her employment. She had already been a tax agent, but she completely over looked the simple ways to save corps. money on their taxes. Once she employed this simple, lawful knowledge, her clients were calling back to her supervisor thanking them for having her on their team. It is the same knowledge many peoeple attempt to use every tax season, however, they are shot down, because the method is incorrect. Large corps. have tax attorneys that specialize in tax shelters. The small business man(male/female) do not have the resources to pay $240.00 per hour for such advice. The rate of pay is worth the accommodation, but can you afford that every tax season? Hell, can you afford now? So, when some of that top flight knowledge crashes down on me, I seek to help others to learn it without the grueling experience I went through to acquire it.....
     
  2. mfost

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    BAF Corp. taxes cont.- from mfost's previous thread - BAF

    In corporate taxes, the corp.expenses is the best way to save the lion's share of what you earned through your corp. I know, I know. People do this all time. Well why are the rich so successful at it and the small business man (male/female) is not. It is the way that small business owners go after corp. expense deductions. So many small businesses seek out deductions through trips, meals, and other miscellaneous expenses. It is not to say that those do not count. The question to be answered is, are those miscellaneous deductions saving you money? Of course not.
    The knowledge of the rich is this, they convert all of their PROFIT into some sort of purchase that legitimizes it as a corp. expense, HOWEVER! most of that expense is a cash flow investment.
    First, I'll describe the fact that, the corp. expenditures should be those valuable items that you can actually make good use of. The things is, when you are making these corp. purchases, THEY MUST BE IN THE CORPORATIONS NAME! Example, if you have the corp. profit to buy a car, you should by the car in you corp.'s name and tax I.D. #. We all know that a car is a depreciating item the moment you put your foot on the gas pedal, yet, you can write it off as a corp. deduction. Under Schedule A of the tax deduction section, every things has numerical value in terms of years. What ever amount of years the IRS determined that any particular item has depreciating value, the dollar amount of that purchase will be divided by the amount of years that item depreciates. For example: the IRS has determined that a car has the Depreciating Property Value ("DPV" {MY ABBREVIATION}) of 5 years. If you a buy $50,000.00 car, divide that purchase price by the # of years the DPV is established by the IRS (5YRS): 50,000 divided by 5 = 10,000. Therefore, every year over the course of 5 years that your corp owns that car, you will have a legitimate tax write off $10,000.00 from your your total corp profit because you purchased that car.
    Now, Cash Flow Tax Property ("CFTP" {My abbrev.}), are those corp. expenditures that you can write off on your taxes, while receiving a profit from that very purchase. Say you by a house, the DPV of that house as determined by the IRS is 39 1/2 years. Divide the purchase price of that house by the DPV, AND FOR THE NEXT 39 1/2 yrs. that will be the tax write off, and you will be leasing the property out thereby earning a tax deductible income in your corp. again. Thus, your CFTP.
    Depending on what it is that you are purchasing, some purchases may be written off $ for $. All the while, you will be receiving a tax refund check for your tax write offs. Isn't America sweet? No other country on earth affords this opportunity to its corporate holders.
    I advise you to seek professional tax assistance from a current tax agent. There are other legalities that you should be aware of, and advantages that you may qualify for. Now, it's on you. Examine, investigate, and walk the talk. God Bless.
     
  3. Fergal

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    [Threads merged and moved to our Articles section!]
     
  4. mfost

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    To fergal,

    Being that I'm new to the site, I'm a bit off as to the response to my Corporation tax advantage- BAF, where you said that my thread mereged into the article section. I'm not familiar with the article section. Would you please enlighten me? Thank you.
     
  5. Jay

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    Welcome to the forum mfost! :D It's great to have you here. Thank you for contributing to the articles section of the forums. Fergal has outlined how this section works in this thread. :)
     
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  6. Fergal

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    mfost please have a look at the link that Jay kindly provided. Let me know if you have any questions once you have had a quick look at that.

    Thanks!
     

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