Posts Tagged ‘Home Improvement’

4 Simple Steps to Reduce Your Taxes

September 25th, 2022

It says: This is your TOTAL TAX. That is how much federal income tax you paid for all of last year. When it comes to reducing your taxes, it doesn’t matter whether you got a refund or whether you had a balance due.

What matters is — what was your total tax liability for the year. That’s the “magic number” that should just make your blood boil and your heart beat so fast that you can hardly stand it.

Now that I’ve got you all “riled up” about paying so much tax, let’s move on to Step #3.

STEP #3: Realize That Reducing Taxes Is The Easiest Path Possible To Creating Wealth

Consider this simple fact: Reducing your taxes by just $4,000 per year is the easiest way possible to becoming a millionaire.

Let me elaborate.

Let’s say you implement some new tax-saving strategies that reduce your taxes by $4,000 each year. Now, if you take that $4,000 per year in tax savings and invest it over the next 30 years, assuming you earn 11.5% on your investment, you end up with $1,048,745.98 at the end of the 30 years!

And here’s the best part about this scenario: Where did you get the $4,000/year to invest? Well, you got it from money that would have gone to Uncle Sam! It’s money that you used to spend on taxes, part of the 32% of your income that goes to taxes each year.

In effect, it’s free money! It’s money that was always there — you just didn’t realize it.

Is this a good deal or what? By simply reducing your taxes, the government will finance your million-dollar retirement.

And let’s say your tax situation is such that you save $2,000/year instead of $4,000/year. Same assumptions: you invest the $2,000 each year at 11.5% for 30 years. End result: $524,372.99. Not too shabby, eh?

So all you have to do is come up with the tax-saving strategies that will put $2,000 or $4,000 in your pocket each and every year. Which brings us to Step #4.

STEP #4: Get Hold Of The Tax-Saving Strategies That Will Make You A Millionaire!

You know, it doesn’t really take much information to save a bundle in taxes. It is true: Just A Little Bit Of Tax Knowledge Can Save You Thousands Of Dollars Every Year!

Useful tax information is freely available. On the Internet, at your local library, and through your local tax professional.

The question is: Are you willing to spend some time this year learning about effective tax strategies that can save you literally thousands of dollars?

Here’s a simple goal to set for yourself: Over the next 10 weeks, set aside just an hour a week to read up on tax-reduction strategies. That’s all, just 10 hours.

Chances are you’ll find 2 or 3 strategies that reduce your tax bill by $1,000 this year.

So you spend 10 hours and, in effect, pay yourself an extra $1,000 for your time. Not a bad hourly rate, eh?

Tax and Financial Strategy for Canadians – Donate, Recover Your Taxed Income and Invest

March 22nd, 2022

An early start in your tax and financial planning will Canadian taxpayers to save money that later serves to invest wisely. Learning about tax credit opportunities in the beginning of the year as part of your financial planning can make you save money later on. Tax planning always involves taking decisions early that later will have a n effect in how much money do you save. One way to save in taxes and give your financial planning a boost is with the “Donate, recover your taxed income, and invest” strategy.

This strategy can help you to keep more of your hard-earned dollars and boost your family’s net worth. The Income Tax Act allows Canadian taxpayers to make donations to registered charities and then claim up to 50% of the amount donated. If you take advantage of a donation, your tax refund will increase as much as twice the size you thought it was. It lets you to recover close to 30% of our salary income withheld by the government as income tax. It is like having a raise every year of 30%.

Personally, part of our tax and financial planning has been participating with Mission Life Financial, helping us to finance AIDS pharmaceuticals donated to a registered Canadian charity. After hours of research, analysis and due diligence, I decided to take part in this tax saving strategy with the following very successful results: In 2008, I got a tax credit of Cdn$8,977.23, and in 2009, the tax credit was Cdn$8,544.24. For 2010 I already donated and I’m expecting a tax credit close to Cdn$21,729.

The questions you might have now are: What we’ve done with this money? How much of these money has used to fuel our financial planning strategy? How much our net worth has increased? I’ll tell you that the 2008 tax credit helped me to juggle the economic downturn where, thanks God, I became unemployed; therefore, we didn’t do any investment. With 2009 tax credit, I learned how to invest in tax liens in USA and started investing in tax liens in Indiana’s commissioner’s sales. We foreclosed in 4 properties, and today, our net worth increased exponentially. With 2010 tax credit, we are planning to do the same: Invest in tax liens.

Managing and building personal wealth is very important and can start with this excellent tax and financial planning strategy. Having the funds available for investment purposes it’s often a challenge but participating in a tax saving program like Mission Life Financial could be the mean of freeing capital or cash that otherwise is not available. Donating, recovering your hard-earned income, and invest; again and again, year after year, it’s very simple and an easy strategy to do. If I have been able to do it, any Canadian taxpayer can do the same. It is not rocket science. It is decision taking action.