Steer Clear of Business Tax Schemes

Thanks for sharing this!

As a small business owner, you’re always looking for ways to save tax dollars. Unscrupulous promoters know this––and so they approach you with schemes that sound legitimate. Unfortunately, all you end up with is trouble.

Here are two schemes to avoid.

Disabled Access Credit Schemes

In this scam, you’re enticed into investing in systems that purport to communicate business listings to visually or hearing challenged individuals. The scammer claims the systems make your business accessible to the disabled, resulting in a tax credit of as much as $10,250. Don’t believe it!

While tax law does provide a credit for costs associated with making your business comply with the Americans With Disabilities Act of 1990, the systems sold by scammers are not qualified expenditures.

Home-Based Business Schemes

Avoid anyone who suggests you can take an income tax deduction for personal expenses. You can take deductions for a legitimate home-based business, but costs of daily living are not deductible, even if you establish a corporation and draw up “legal” documents saying they are.

You can learn more about these schemes and others by visiting the Internal Revenue web site or talking to a trusted advisor. Saving money is a smart business move. Doing so legally is even smarter.

You might also like these posts

Article – Preparing for Hurricane Season Image source: By Nilfanion , via Wikimedia Commons. The map shows the tracks of all tropical cyclones which formed worldwide from 1985 to 2005.The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early is a good idea—and early preparati...
Article — Locked Out Image source: UK, public domain, via Wikimedia Commons What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogue hackers? If you’re shaking your head because you think nothing on your computer is of value to hackers, consider th...
Article — Tax Identity Theft Awareness Week Image source: Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury Inspector General for Tax Administration—are scary, too. Unfortunately, both tax ID theft and the costs are on the rise. The US Federal Trade Commission...
Article — Your 2013 Federal Income Tax Return Image source: Whether you’re a part- or full-time freelancer, receiving income means filing a tax return. Here are three things to keep in mind as you look back at your 2013 business activity. Dates: The IRS will begin accepting 2013 business returns on Monday, January 13, 2014. For individual returns, the da...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Posted in Articles Tagged with: ,