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  1. #1
    Join Date
    January 18th, 2005
    Ok.. I was told... this applies to any self employed business, specially incorporated ones..

    that lets say you earn $20,000 in the month, your told to set aside maybe 18% or 25% of that for taxes.. as they are gonna tax you on the full 20.000...

    now im told that best way to do it is to pay yourself less, or make out you get less and the business gets more.. by taking business trips, lunches, stationary, computers etc.. etc...
    and then writing that all off at the end.. so you get that money back..

    is that correct. basically takes lots of lunches and bussiness trips... like cj conventions and affiliate summit etc...

  2. #2
    ABW Ambassador
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    January 18th, 2005
    Nunya, Business
    ask an accountant

  3. #3
    More Cheesier Than Ever Cheesehead's Avatar
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    January 18th, 2005
    Land of The NFL Champs!
    Legitimate business expenses count against your business income so yes, if you spend it all (in legitimate expenses) you owe nothing . . . but yes, run this by your accountant unless you enjoy audits or worse!
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  4. #4
    Affiliate Manager AffiliateBuddha's Avatar
    Join Date
    January 18th, 2005
    another important thing is to keep track of what you spend in the name of the business...

    Keep bills, vouchers etc for every expenditure you make for the year-end's accounts.

    (my credit card is in the name of my company, CC statements to go the accountant and the money paid to the CC company is shown as business expenditure)
    Gift Shopping Zone Affiliate Program on SAS - 10% per sale with unlimited cookie duration, over 10,000 products.

  5. #5
    Web Ho - Design B!tch ~Michelle's Avatar
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    January 18th, 2005
    Another thing you can do is put things like you cell phone (if you have one) in your business name and make the majority of your business calls from it and then deduct the bills at the end of the year.

    You best bet is talk to an accountant.
    "All I ask is a chance to prove that money can't make me happy."
    "Work to become, not to acquire." -- Confucius

  6. #6
    http and a telephoto
    Join Date
    January 18th, 2005
    All your answers so far are from US based affiliates, you may want to make it clearer that you are from Canada. I think your tax laws may be different than ours.
    Deborah Carney

  7. #7
    Join Date
    January 17th, 2005
    All of this is good advice, especially the advice about talking to an accountant, make that a good accountant.

    I'm up here in Canada as well. Keep track of all your expenses, especially if they seem a little excessive (I use my boat for business, a great write off but also a good reason for an audit). With any gross over $30,000 in Canada you have to be registered for the GST. You want to be able to use your GST credit as any GST you pay for business expenses can be applied.

    For withholding tax you have a number of options but in general the bottom line is that the government wants their money so you have to at least set some of it aside. It's a real shocker to some day wake up and realize that you owe big brother $40,000 that you don't have.

    The one thing to remember is that if you gross $100,000 in a year and spend $80,000 a year going to conventions, business lunches (a portion in Canada I believe) and an AGM in Mexico you have only made $20,000 minus any taxes, not enough to really live on in this part of the world. Yes, you can right off any legit business expense but this doesn't mean that the trip to Mexico was free.

  8. #8
    ABW Ambassador Sam Bay's Avatar
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    January 17th, 2005
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by LastHope:
    Ok.. I was told...


    now im told that best way ... <HR></BLOCKQUOTE>

    Who tells you all these stuff? - Surprise and Delight!

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