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(EMAILWIRE.COM, May 11, 2007 ) Livonia, MI -- It’s not how much money tax payer makes, but how much money they keep. In addition, it is also about what they do with the money they do keep. This thought mentality is at the heart of building lasting wealth.Tip: Have the mindset that the more money they make the more money they can save in taxes.They can reduce their taxes down to single digits. They can keep their taxes in the single digits even as their money grows. They can put these tax savings into vehicles that will build them even more wealth.Two tax savings distinctions: Incorporated and unincorporated.Incorporated businesses are the way to go. However, they can experience tax savings for both incorporated and unincorporated businesses.The purpose of their business is to generate a profit. Sometimes it takes a long time for their business to see a profit. For example, Amazon.com didn’t earn a profit for the first 15 years. Many accountants will say that if they don’t earn a profit in the first 3-4 years then it is considered a hobby. This is completely false! Amazon.com took 15 years to realize a profit and they are most certainly not a hobby!They can take a loss from their business and subtract if off your other income. For example, let’s say that they lost $20,000 on your business. However, you also have a corporate job. They can subtract this $20,000 from your W-2 income (from their corporate job). This means that their taxable income has decreased. This is a great tax savings in itself.The uneducated system of taxes includes earning money, paying taxes on it (state, federal, and FICA taxes), and then spending the difference. This type of tax format doesn’t allow them to build wealth. It makes it extremely difficult to get ahead.The “educated” system of taxes includes making money, spending it, and then paying taxes on the difference. “Spending it” in this case refers to business deductions. Deductions include health care, business supplies, business trips, etc. There are very few things that they can’t deduct if the circumstances are correct.They need to learn enough about the tax codes so that their records are kept properly. They need to be aware of what information and documentation is required for deductions. This way they can slash your taxes legally. Tip: Bill Gates said “A working knowledge of the tax code” was the most important factor of his success.Tip: S-Corporations have typically 75 deductions they can take. If they are a W-2 employee then they have at most 10 deductions they can take. That’s why it is hard to get ahead financially when they work for somebody else or work at a corporation.Tip: C-Corporations allow them to choose their fiscal year end. It doesn’t have to be December 31st. A C-Corporation can take several deductions as well.C-Corporations pay only 15% tax on the first $50,000 word of net income.Do they have a working knowledge of the tax code? If not, learn it today to save them thousands of dollars.Remember, it's not only what they know, but who they learn it from. Learn from someone who is more successful than them. Learn the tricks of the trade and http://www.powerfulpromoter.com [internet marketing tips] from someone that has actually built wealth and not just written a book about it. Forget the past. It does not matter who they are or where they came from. Everyone deserves to be a millionaire. Contact Information: Stephanie Bunn 2935 Horizon Park Drive, Suite D Suwanee, GA 30024 (770) 271-1536 www.internetmillionairemind.com . Source: National Real Estate Network. Check out their website at http://www.megaeveningevent.com If you need look of meaning of any of words in this press release wikipedia is great source on the internet to look up meaning of: wealth, Bill Gates, Tax code, S-Corporations, C-Corporations, W-2, Amazon.com Taxes, and Build lasting wealth http://en.wikipedia.org ###This press release was issued through GroupWeb EmailWire.Com. For more information on press release distribution, go to http://www.emailwire.com.
National Real Estate Netroit, LLC
National Real Estate Network
mmaupin@donaterealestate.com 
Source: EmailWire.com
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