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When married couples run unincorporated small businesses, they can really get nailed by the federal self-employment tax (SE tax). In fact, these small-business owners often face SE tax bills that exceed their federal income tax bills. |
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How'd you like to use pretax dollars to buy an SUV or pickup? |
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If you own a small business, you are probably too busy to even think about taxes most of the year. But some of the things you can do to cut your tax bill are easier than you think — like buying a Suburban instead of that Lexus sedan you have your eye on. |
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Self employed business people essentially have two hurdles to clear to get their deductions. The first is straightforward: You must use the space regularly and exclusively for business. Regularly means often, rather than occasionally. More important, exclusively means exclusively. You can have absolutely no personal use of it during the year (or at least none that you admit to). If you so much as use the desk in your office to balance your personal checkbook, all your deductions get flushed. |
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W've all done it — tacked a few vacation days on to the end of a boring business trip. And why not? It's one of the few perks of spending time on the road. But what if you're self-employed and the only one picking up the bill is you? Well, you can still combine tax savings and vacation into the same trip. Consider yourself reimbursed by Uncle Sam. |
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