Best Accountants in Goodyear, AZ

Saving Taxes through Business Losses:nnStarting a side business can provide great tax benefits. W2 employees are taxed the most from all sectors and have very little room to reduce their tax liability other than through retirement contributions and HSA’s.nnOne loophole is to create a side business where you are allowed to write off what once were personal expenses such as your phone bill into a business expense. Any losses from this side business after deducting all expenses can be used to reduce your W2 income.nnThe IRS may want to see a profit after 2 years of showing a loss but there is no definite law that says so. You must aim to generate a profit every year and run the business like a business which includes having a business bank account, bookkeeping etc.