Top Tax Mistakes with Craig Cody

1. Mistake 1 – Failing to plan. Like buying a car or a house, you need to make a plan how you’ll pay off your taxes.
2. Mistake 2 – Choosing the wrong entity to operate. You need to understand the different types of entities available before deciding which entity you would choose.
3. Mistake 3 – What-if Paranoia. Do not be afraid of the questions of the IRS as long as you follow the tax codes and everything is documented. Don’t be afraid to take a legitimate deduction.
4. Mistake 4 – Getting the wrong retirement plan. Understand the different plans available to your employees and those that they’ll resonate to. Ask for advice from your CPA.
5. Mistake 5 – Missing family employment if you have kids. Kids can become employees of your business and you can pay them wages to cover other non-deductible expenses.
6. Mistake 6 – Not implementing a medical expense reimbursement plan. This works for some entities and can be used to cover out-of-pocket medical expenses.
7. Mistake 7 – Missing legal deductible items such as:
   1. a health care facility for your home office like a pool or a home gym
   2. vehicle expenses when the vehicle is used for business
   3. meals and entertainment
8. Mistake 8 – Failing to rent out your home for business meetings. Just be careful not to go overboard.
9. Mistake 9 – Not depreciating properly all the costs to set up your practice.
10. Mistake 10 – Not consulting with professionals. Be proactive and ask for advice. Choose a CPA who is proactive.

This episode is not intended to replace the professional advice of your tax preparer or CPA.

Mentioned:

10 Biggest Tax Mistakes That Cost Business Owners Thousands – by Craig Cody – www.craigcodyandcompany.com/bulletproof – Receive a free copy of the book!

Secrets of a Tax-Free Life