Hello fellow entrepreneurs! This week, let's delve into the world of tax saving strategies. In our latest episode of "Work It, Live It, Own It," I had the pleasure of conversing with Shauna Wekherlien, a renowned expert in tax strategy. With a remarkable track record of saving her clients over $1 billion in taxes, Shauna, also known as the "tax goddess," graciously shared her wisdom with us.
Understanding Your Tax Strategy Comfort Zone: The Aggression Scale
Shauna introduced us to the concept of the "aggression scale," a personal gauge of how aggressive or conservative one is with tax deductions. Knowing where you stand on this scale is vital, as it directly influences the tax strategies you'll be comfortable implementing. Remember, not all CPAs specialize in tax strategy, potentially leaving valuable savings untouched.
Unveiling Low-Hanging Fruit: Tax Deductions Made Easy
Shauna shared actionable strategies, starting with what she calls the low-hanging fruit. One standout tactic is employing your children in the business. If your child is at least seven years old and performing legitimate work, their income could be non-taxable, leading to substantial savings. Additionally, paying spouses and family members through the business can also yield tax benefits, albeit with considerations based on your filing status.
Your Pet as a Business Expense: Canine Deductions Unleashed
In a surprising twist, Shauna discussed using pets, like dogs, as a security measure for your business, eligible for legitimate tax deductions. However, the IRS imposes strict criteria, making it essential to understand the qualifications and requirements. While not straightforward, for the right situation, it's a creative way to optimize your tax position.
Striking the Balance: Personal vs. Business Expenses
Shauna tackled common misconceptions about deductions for clothing and grooming, emphasizing that certain professions may still be eligible for these deductions if essential for job performance. Even regular business expenses like dry cleaning for presentations or grooming before client meetings can be deductible, provided they're ordinary, necessary, and reasonable for your business activities.
Maximizing Your Tax Savings: Crafting a Comprehensive Strategy
Throughout our conversation, Shauna emphasized understanding the IRS's criteria and ensuring well-documented, justified deductions. It's about crafting a comprehensive tax strategy aligned with your business goals and personal risk tolerance, not just finding deductions.
Harnessing the Power of Tax Strategy
I trust this post has provided you with invaluable insights from Shauna Wekherlien. Tax strategy is a potent tool in the entrepreneur's arsenal, and with the right knowledge, you can turn it to your advantage. Remember, it's not just about working hard but also about working smart, especially when it comes to taxes.
Stay tuned for more episodes where we demystify the complexities of entrepreneurship and personal development. Until next time, keep working it, living it, and owning it!
