How to Legally Pay Zero Taxes: Tips from a Financial Wizard

May 4, 2024

Hey there, savvy entrepreneurs, family business stewards, and modern moguls! Ever dreamt of legally paying zero taxes without Uncle Sam knocking on your door? Grab a comfy seat and a cup of coffee, because Donna Bordeaux at Calculated Moves is about to spill the beans on how to keep your hard-earned cash where it belongs—in your pocket!

Mileage Deductions: The Road to Savings

Let's start with something simple: mileage deductions. Got a car? Use it for business? Bingo! You can be reimbursed by your business for those miles. Currently, you get about 56 cents back for every business mile you drive. That's right—every trip to the bank, post office, or even that networking event can add up to a sweet tax deduction. Pro tip: use an app like MileIQ to track your mileage. At just $59.69 a year, it’s cheaper than your morning latte habit!

Home Office Deduction: Your Space, Your Savings

Now, let’s talk about the home office deduction. If you're working from home (no, not from the couch or kitchen table!), you can deduct home office expenses. Use less than 300 square feet? Deduct $5 per square foot. Using more space? Calculate the percentage of your home dedicated to business and apply it to your home's operational costs. Just make sure it's exclusively for business—Netflix binges don’t count!

Medical Expense Reimbursement Plan: Healing Your Wallet

Got medical expenses? Of course you do! With a Medical Expense Reimbursement Plan (MERP), you can deduct those too. If you're a sole proprietor and married, reimburse your spouse's medical expenses instead of salary. Think dental appointments, glasses, over-the-counter meds—the works. Just ensure these expenses are paid and reimbursed before December 31st for them to qualify. Look up Section 105 plans or MERP for more juicy details.

Aim High: Bigger Earnings, Bigger Wins

Sure, paying zero taxes sounds like a dream, but remember, paying taxes means you're making money—a lot of it! The goal is to minimize taxes while maximizing income. Need help navigating these waters? That’s what we’re here for.

Donna Bordeaux at Calculated Moves has got your back with strategic planning and financial preparedness. Ready to kick those tax woes to the curb and focus on what you love? Dive into our full article for more tips and tricks to keep Uncle Sam at bay and your profits soaring.

Have a question or a tax-saving strategy to share? Drop a comment below and let’s keep the conversation rolling!

Donna Bordeaux, CPA with Calculated Moves

Creativity and CPAs don’t generally go together.  Most people think of CPAs as nerdy accountants who can’t talk with people.  Well, it’s time to break that stereotype.  Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux.  They have over 50 years of combined experience as entrepreneurial CPAs.  They’ve owned businesses and helped business owners exceed their wildest dreams.   They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.