I stumbled upon this idea in a Kiyosaki book (I'm not really a huge fan, but that's not the point). In it, he mentions how his rich dad buys property out of his pre-tax dollars, where as his poor dad pays taxes bi-weekly like most people, and then has to buy property out of whatever is left.
The concept itself isn't that difficult. I'm an online business owner myself, for about 3 years now, but only full time starting the beginning of this year 2012 when it reached a point that it could sustain life. I want to ask you pros out there if you have anything else you can share on this idea? I have become a bit obsessed with the idea of seeing how I can lower my taxable income through buying things I might consider "assets" that can be counted as legitimate expenses. (At least I think that's how the whole thing works.)
My obsession stems from the fact that I am 29 years old, single, and I am not a home-owner. I live with a couple roommates, so I can't seem to want to pull the trigger on buying a house when my rent comes in at $300 per month. Because of my scenario, I feel like I am going to be taken in taxes. I will be in the 25% bracket, pushing the next level up, and don't want to get slapped with a huge fat tax bill come next tax season. I also don't want to pay quarterly taxes, mostly on principle. Accountant said I don't have to, but be prepared for a fat bill if I don't. Mitt Romney will pay a lower percentage of his income in taxes than I will. Lame.
Sorry for being long-winded, and on to the crux of my question here: What kind of things (if any) can be done to lower your taxable income by spending money on legitimate business needs/expenses/whatever a la Rich Dad example I used above? I appreciate any replies and hope this will help some others out there as well.
The concept itself isn't that difficult. I'm an online business owner myself, for about 3 years now, but only full time starting the beginning of this year 2012 when it reached a point that it could sustain life. I want to ask you pros out there if you have anything else you can share on this idea? I have become a bit obsessed with the idea of seeing how I can lower my taxable income through buying things I might consider "assets" that can be counted as legitimate expenses. (At least I think that's how the whole thing works.)
My obsession stems from the fact that I am 29 years old, single, and I am not a home-owner. I live with a couple roommates, so I can't seem to want to pull the trigger on buying a house when my rent comes in at $300 per month. Because of my scenario, I feel like I am going to be taken in taxes. I will be in the 25% bracket, pushing the next level up, and don't want to get slapped with a huge fat tax bill come next tax season. I also don't want to pay quarterly taxes, mostly on principle. Accountant said I don't have to, but be prepared for a fat bill if I don't. Mitt Romney will pay a lower percentage of his income in taxes than I will. Lame.
Sorry for being long-winded, and on to the crux of my question here: What kind of things (if any) can be done to lower your taxable income by spending money on legitimate business needs/expenses/whatever a la Rich Dad example I used above? I appreciate any replies and hope this will help some others out there as well.
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