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How To Save Money On Taxes
By Michael Baker

We are all looking for a way on how to save money on taxes. I know I am. And while I am a proponent of paying your taxes, you don’t necessarily need to pay as much as you are right now. I think what many of the tax payers fail to recognize is the tax laws are really setup with ways to help you. And the single, most popular method on how to save money on taxes is to start a home business.

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I know, you have already been approached by all of these MLM, or direct selling, companies before. And yes, I would stay away from them as well. But, there are other ways to start a home based business, and not have to deal with someone calling you all the time. So, we know a home business will help save taxes, but how?

Good question. Here is how. Once you setup your business, either by incorporating or just using your social security number, you now have the legal right to take business deductions. And the single biggest deduction you can take is your home office. We all have an office these days, so why not deduct it. This is the way you deduct it.

Use the square footage of the office as a percentage of the overall square footage of the house. My house is 2850 sq ft, and the office is 450 sq ft. This is a percentage value of 15.7%. So, now we can take 15.7% of the mortgage, home owners insurance, electric and gas, water, and trash bills, and deduct all of them to the business. This one step will automatically give you a certain amount of money you can make as a profit, and not have to pay taxes on. You are already paying bills on this stuff, so why not get some money back?

If you have any other part of your house where you will do business, this can also be deducted. The one requirement is the room can not be a pass through room. It must have one entrance, and exit. If you have your computer in your living room, you can not deduct this. Closet spaces are good deductions as well. You would figure out this square footage just as above.

Then, everything in the office can be used a method on how to save money on taxes. Anything from office supplies, to computer equipment, to internet, to a second phone line, and even the cell phone, these can all be deducted.

What we have done, is taken all of your current expenses, set up a business, and used this business to pay for the expenses. Now, if you do not make any money in the business, then these deductions just count as a loss. My first year in business, I took a loss of $7,000 dollars on my taxes. This helped get me a nice return back. But running a home business is a proven method on how to save money on taxes.

What is Variable Universal Life Insurance?

Variable universal life insurance is a type of permanent life insurance. Like regular universal life insurance, it’s much more flexible than whole life insurance. At the same time, it allows you to save tax-deferred interest.

In the name, “variable” refers to the policyholder’s ability to invest the accumulated cash value in a number of accounts. Like all permanent life insurance, variable universal life insurance builds cash value. The policyholder can choose among a wide variety of accounts in which to invest the cash value. “Universal” refers to the policyholder’s flexibility when it comes to making insurance payments. Of course, this flexibility is often based on the policy’s current accumulated cash value. In any event, variably universal life insurance differs from whole life insurance here because whole life insurance policies have a fixed premium. No flexibility.

There are a few ways in which a person can use a variable universal life insurance policy. First, and most obvious, is as a life insurance policy. The policyholder’s beneficiaries will receive death benefits upon the death of the policyholder. Too, a variable universal life insurance policy can be used as an investment tool. The policy’s cash value earns tax-deferred interest, which generically means the policyholder can save and save and save without having his or her savings taxed.

Another way to use a variable universal life insurance policy is to protect money from being taxed, and not just the money you’re investing. This option is used mostly by wealthy individuals who want to avoid the estate tax. These people will give large sums of money to their children, who have their own variable universal life insurance plans, and the money is covered under a gift tax exemption.

Aside from financial protection and tax advantages, variable universal life insurance policies are also beneficial for educational, retirement, and estate planning and saving. With so many options, variable universal life insurance is beneficial to all age groups.





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