The rumor mill seems to be buzzing with tax news that may not be accurate info.đź“Ł
Don’t be fooled! You deserve factual tax-saving knowledge at your fingertips. Not somebody’s out-spoken aunt telling you what she thinks about your write-offs on a random FB post.
We’ve all seen comments that seem like tax gold: “you could totally write that off” or “don’t write that off, you will get audited!”. You immediately think I HAVE to do this. But stop. Let’s train your brain to jump to “does this apply to my business? Is this info actually true?”.
There’s plenty of factual tax tips online, but do your research and trust your sources. I recently released a FREE Maximize Your Tax Savings Masterclass on how you can save on your taxes NOW…many of these gems you can put to use today. Watch it here now.Â
Although, I love to promote tax talk (riveting, I know!)… I cringe when I see tax BS spread like this. Not only can you get charged with penalties out the wahzoo for taking incorrect tax positions on your tax return, but you also run the risk of LEAVING MONEY ON THE TABLE.
(PS: Check out my Instagram post & blog about 5 ways you can save on taxes NOW)
Why? Because taxes aren’t a one-size-fits-all situation. Your business is unique and your taxes are too. Just because Pam can’t take the home office deduction in her nursing hospital business, doesn’t mean you can’t take the same deduction as a Life Coach. Again – every business is different and it truly depends on your situation as to what is considered best tax practices. So consult a tax professional before marrying the gossip idea about taxes you saw while scrolling through your timeline.
What’s the biggest tax rumor that you heard recently? Here’s one that I saw not long ago:
Don’t deduct large expenses because you will surely be audited.
Wrong. Why is this statement false? Please don’t skip out on “free money” just because of the fear of getting audited. You purchased the car for business use or remodeled your home office… these are warranted and eligible tax deductions. So act accordingly and cut those taxes!
Let them audit you!
Let’s play devil’s advocate. Let’s say you wrote off those hefty but legit business costs. And the IRS decided to send you a friendly letter questioning these deductions. No problem.Â
Why? Because you have your receipts, business bank account and your legal business documents to show them proof of those write-offs. And if that is the case, then 3-4 weeks later, you’ll receive a letter from the IRS response to your proof saying thanks for your time, keep doing your thing. Yep, that simple.Â
With just 3 months left in the year, this is the time to put your foot on the gas to make sure your books are in order and you are maximizing the tax benefits that come with owning a business.Â
Send me a DM with more tax misconceptions you want to get to the bottom of! I’m here to spread the knowledge ❤️
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