Even though the Franchise Tax Board in California will tell you that taxes are inevitable, we can help you save on the amount you pay. Here’s just a few tips the board doesn’t really want you to know about.
Find Tax Free Income
We put this at the top of our list because it would seem to be the place where most people would be looking. Having an income that’s tax-free is a priority we are sure. There are certain types of savings and investing that you can do where you don’t need to worry about the IRS.
Keep in mind it’s a good idea to make sure you understand which is which. You don’t want to get involved in something you think might be tax-free only to find it’s on the government’s radar.
Look for Tax Credits
Looking for tax credits is totally different than looking for tax loopholes. The Los Angeles franchise tax board will be interested only if you’re looking to skirt the system with the loopholes. One of the big advantages to these tax credits is they reduce your taxable income dollar for dollar.
These are worth looking for and we can help you find them. Some of the more popular examples include home energy improvements and buying a hybrid car. As a general rule when you’re looking for these tax credits, looking for ecologically sound items is a good starting point.
Defer Some Taxes
Although in the end you’re just kicking the can ahead of you, deferring taxes is a legal vehicle that can save you on your tax bill. There are several tools you can use here including investing in certain kinds of retirement accounts.
This is a great tool for businesses that might be having a rough patch. If it’s a temporary solution, deferring taxes can help you get over financial problems.
There are a few tax tips that we can pass along that need to be handled more carefully than others. For example, you can shift some of your income to relatives but it’s important to be careful when you’re pulling these levers.
There’s several tools that you can use to accomplish this goal. Why not get in touch with us today so we can help you find the one that best suits your purposes?
We’re always available to help you with any questions you might have about the California franchise tax board too.