190-737 Just so there is no misunderstanding in no way am I advocating tax evasion. Taxes are the price we pay for living in a civilized society. They pay for our police, fire department and everything else that's supposed to keep us safe.
190-753 But there are ways to avoid being audited.
190-755 The biggest thing is to make sure you can always justify the expense as a business expense. For example, trying to write off a meal with your life partner when you mentioned your business during the meal is not going to be allowed.
Another thing is summed up in three words: DOCUMENT, DOCUMENT, DOCUMENT.
That while you can use your computer and internet usage as a business write off, make sure to always write down the amount of time used for business purposes and personal use.
The same with using your car as a business write off. Only the amount used for business purposes is allowed to be used. So when using your car for your business write down the starting reading on the odometer then the end reading as well as the total mileage used.
Estimates are not acceptable and if there's any hint of inaccuracy due to you not keeping proper records your attempted write off will likely be disallowed. Then on top of that you may end of having to pay penalties on any taxes owed.
Make no mistake, the government will ALWAYS get it's money no matter what. Remember the golden rule? He who has the gold makes the rules.
Keep that in mind and you shouldn't have to worry about every getting audited.
Disclaimer: Always check with an accountant or any other tax professional for specific advice according to your jurisdiction and situation. This article is merely intended to be a general guideline.
190-753 But there are ways to avoid being audited.
190-755 The biggest thing is to make sure you can always justify the expense as a business expense. For example, trying to write off a meal with your life partner when you mentioned your business during the meal is not going to be allowed.
Another thing is summed up in three words: DOCUMENT, DOCUMENT, DOCUMENT.
That while you can use your computer and internet usage as a business write off, make sure to always write down the amount of time used for business purposes and personal use.
The same with using your car as a business write off. Only the amount used for business purposes is allowed to be used. So when using your car for your business write down the starting reading on the odometer then the end reading as well as the total mileage used.
Estimates are not acceptable and if there's any hint of inaccuracy due to you not keeping proper records your attempted write off will likely be disallowed. Then on top of that you may end of having to pay penalties on any taxes owed.
Make no mistake, the government will ALWAYS get it's money no matter what. Remember the golden rule? He who has the gold makes the rules.
Keep that in mind and you shouldn't have to worry about every getting audited.
Disclaimer: Always check with an accountant or any other tax professional for specific advice according to your jurisdiction and situation. This article is merely intended to be a general guideline.
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