Optimizing Tax Refund by Following These Simple Steps

Tax report

The idea behind tax refund is quite simple, which is the government will pay your tax money back if you overpay. There are situations when tax refunds can be necessary, such as when you have two jobs, but you get charged at the same basic rate. Entrepreneurs are also in need of knowing how the tax refund can benefit them. An employer is expected to pay the tax on their profit, and the tax of their employees. Inadequate accounting and record keeping will result in an overpayment.

Learn the steps below to know how tax refund can be beneficial to your business.

Documenting maintenance and auto-mileage

Business maintenance expense is not tax deductible. For a small manufacturer, knowing this information is essential to optimizing the tax refund. For example, you are a boutique guitar manufacturer, and you have tools and guitar stocks that need maintenance and treatment, you can include those expenses as nondeductible.

The business profit that is for sales-officers to go for miles promoting their products to potential clients also does not get taxed. To make tax calculation more efficient, you can a calculator. It will optimize your tax refund and save you from paying the government more than you should.

Newbie privilege

Stock marketThe government gives tax exemption to new businesses up to 5,000 USD for the first year. Each region has their laws of determining business tax exemption and capital tax exemption. Business tax exemption disregards the tax you should have paid for doing the business, while capital tax exemption frees you from the obligation to pay the tax for buying your company assets.

You can include all the expense of the legal operations you do in the first year in your tax exemption proposal. It involves hiring lawyers, tax consultants, and business consultants.

Debt FinancingStart-ups are commonly entitled to the debts for acquiring the assets. Write them on your tax exemption files, and you can get leniency. Only the amount of the interests is taxed, but the loan itself is not. But you need to make sure to keep the receipts from all the debts you have, and they have to be business-related expenses.

If you have missed any of the mentioned aspects, then you are eligible for getting a tax refund. Consult a tax expert for this matter to get you the optimal solution for your tax problem.

Document the bad debts

Debt2This privilege is only for businesses that deal with products. When a customer or a retailer has not paid the products they have bought from you, you are not obliged to pay the tax deducted from that bad debt.

You should keep records and reliable proves on such matters. You are free from paying the tax for such a case because the income you have been expecting has not come to you.

Investment 101 for Young Professionals


Thinking of future revenue that does not rely on one’s career should be started as earliest as possible. Investment works like a tree. When you plant the tree in the right place with right care, you can reap what you sow in the form of profits.

The ideal age for a professional to start investing is as soon as in his/her 20s. Mistakes and unfortunate events of investment show its impacts after approximately five years. Now, let us discuss an imagined case, where a 25 years old office worker decides to invest in a startup. Five years later, the start-up goes bankrupt, but because the person is in his/her 30, which is still a productive age, he/she has a second chance.

In this writing, we are going to learn what are the fundamental factors that a young professional should consider before deciding to invest his/her capital.

Stock-market can be a safe playground

Stock marketStock market investment can be safe and assuring. But of course, it depends on whether you know how the stock market works and the risk of your goal. Nothing is safe when you are shooting blind.

There are two risks that you must understand before buying a stock. First, it is the systematic risk. This risk affects the whole stock market system. When the whole market is down, yours is also down. But there is the recovery cycle to this disheartening economy phenomenon. The second risk is the unsystematic risk, which is heavily affected by the performance of the company you are investing in.

The great depression was the example of systematic risk, while the low sale of a start-up product is the example of unsystematic risk. Both risks can be calculated, and forethought, but those skills require clever reading and profiling.

Investing in property is definitely a must

propertyOnce you have made enough money to apply for a mortgage, do it. And if you do not have any plans to create a family anytime soon, prefer the commercial property instead of the private one.

Commercial property can bring you passive income, especially when it is in a strategic location with high traffic of visitors. You do not need to be bothered with retirement plan if you have enough commercial property.

But to claim for firm legal ownership, you might need more than a healthy deal. Consider hiring an estate attorney, whose law practice is specialized in real estate business. A property agent can only provide you with fast documents and easy negotiation, but they cannot handle the legal risks that might appear in the future.

An estate attorney is also the best partner to consult your property investment plan because the commercial tax can be quite a trouble.
Be an open mind investor and take all of the nourishing information you can get, especially the legal-related information, and do not hesitate when the chance and the momentum is good.

Never rely heavily on one investment

Locked InvestmentAllocating all the budgets you have on one form of investment seems to show determination and dedication. But in reality, it is very dangerous. No credible financial gurus have ever suggested their clients to invest just in one place. Because once it fails, you will lose everything.

Therefore, playing on the stock market while still having passive income from the commercial property sounds like the wisest way to invest.