5 Ways to Avoid Taxes as a Business Owner…Legally

The thing is if it's a legitimate expense and you are legitimately working from home take it you're literally throwing money leaving money on the table if you're not taking the home office you can hire your kids inside your business and pay them 100 tax free using a proper card you can get four times points and use that for personal travel every single expense that your family incurs for medical expenses then all of those expenses can be deductible to the business five separate entities

That we've set up so that we don't pay taxes five ways to avoid taxes for business owners legally preston enlighten us okay so i got five i've got a lot more but we'll go over five today so the first one most basic is is your home office so many people especially during the pandemic are working from home these days right and it is one i see so often missed people work from home but don't take their home office because their accountants say

It's a red flag and the thing is if it's a legitimate expense and you are legitimately working from home take it you're literally throwing leaving money on the table if you're not taking the home office okay two is hiring your kids you can hire your kids inside your business and pay them 100 tax free you have to be structured properly but you can literally pay your kids up to 12 000 and change 100 100 tax free every single year

That they are between seven and 17. so for number two we actually we've done a detailed analysis that we're preston talks about this we're going to publish this after this video so you guys stay tuned you want to make sure that you subscribe to the channel to get the one under number two is really really cool preston number three number three is is credit card rewards okay so as a business owner if you have a credit card and you get cash back those cash back points are reducing your credit card

Bill or like the mx plum where you get a one and a half percent discount those discounts that cash back is actually taxable to you but if instead you get credit card rewards and use those rewards for personal travel or a personal expense then those expenses those rewards are 100 percent tax free and i have clients like kiana spending some money on advertising using a proper card you can get four

There we go i've got mine too so we're spending spending money on amex you can get four times points and use that for personal travel my wife we we booked an entire trip for five people in one month of advertising spend and that trip now is basically paid for by her business but it's it's tax-free it's a tax-free benefit so credit card rewards instead of cash back number four is medical expenses if you have a business and you have medical expenses

Depending on how you are set up you are able to write off a hundred percent of your medical expenses now if you're an s corp that doesn't necessarily qualify but if you have a c corp or sole prop you can set up something called a medical expense reimbursement plan and then every single expense that your family incurs for medical expenses whether that's glasses or chiropractor or there's a wide range then all of those expenses can be deductible to the business health insurance

Included and you basically get to reduce your your family income by those expenses i remember those this is very very very case by case because for example in our case my husband is already a 905 employee so he's covered so we didn't have to go with the c corp we had we were fine with the escobar because i wasn't able to actually use this one right so basically everything with the tax code is case-by-case basis

There's a saying every answer to every question the tax code is it depends it depends on facts and circumstance in your personal situation there is almost there's very rarely a time people like the the last one is going to talk about is tax structure and there's very rarely a time when people ask me to say hey preston what's the best tax structure and i said there is none it's just the best for you that's exactly like investing by the way because people are like okay what's the

Best stock to invest in like it depends how old are you what's your financial situation was risk tolerance like there is no one perfect portfolio for all the same way there is no one perfect task tax structure or there's really not and for a lot of people it's often a combination of multiple types of tax structures so for my family we have five separate entities and that is what is perfect for us okay so we have a real estate company we have we have my accounting company we have a

Tax company we have my wife's cookie company we have a family management company so we have five separate entities that we've set up so that we don't pay taxes hey you gotta set me up with those why are we why are we all the only all right that's very different i'm gonna jump on a call right after this with you like what's happening why am i only one in today so we talked about the home office is one two is is kids three is the credit card rewards instead of credit card

Cash back and this is only for a business owner if you are if you're on your personal credit card you have cash back those are not taxable they're considered rebates but rebates to a business are taxable renee rebates to a personal are not number four is being able to write off all of your medical expenses and number five is the tax structure tax structure is insanely important how you how you decide to be taxed whether it's an s corp a sole

Proprietorship partnership or a c corp is insanely important and that is going to determine how much tax you're actually going to pay that's awesome president thank you so much how can people get this customized advice for you from you for free yeah people can go to my my website i have a calendar link where they we can jump on a call i have a complimentary hour-long session it's about a 40-minute 45-minute session where we can basically go through your

Entire tax situation and and begin to build a custom plan for for you so that's why why don't 5 000 people sign up from here you're going to have time 5 000 people let's hope this video doesn't go viral otherwise you're going to be screwed if if we get 5000 i may have to throw uh throw a little small fee on there but i have i have capacity to to handle more and i have a team behind me that helps me with a lot of stuff so we should be fine that's awesome thank you so much preston

For being on the show you guys we have another one for non-survivors how they can avoid taxes legally so make sure that you subscribe share this with all the business owners in your friends and family circle and i'll see you in the next video bye say bye jasmine bye we do have a tradition in my with my guests which is i asked them to make a silly face okay oh on the count of three we have five kids so you should five four three three three ah i like to

Exaggerate on the count of three three two one go that's not selena that was like all right we'll try in the next video