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DEC 2005

"Marketing Tips & Tactics Newsletter"
TAXES  TAXES  TAXES

     Just today I received my copies of Intuit TurboTax Delux and TurboTax Business and a request from my State about my latest FEIN. A short time ago I changed from a “sole owner” business to a LLC (Limited Liability Company). My LLC is a partnership with one partner. It will require filing a Fed form 1065 and a K-1 for each partner’s share of the profit/loss. Being a LLC separates business from family liability.

     I’ve been doing my own tax forms since I was a Pfc in the Army so I don’t think that tax time should be intimidating for anyone. There are many tax advantages for running a business. IEEE recommended to me way back in the 60's that anyone with a personal income greater than $25,000 should start some kind of business just for the tax advantages. I don’t think for one minute that a flat tax, if it is ever passed, will remain flat for more than a couple of sessions of congress. Because fair is only in the mind of the guy with the best deal.

     Things to do to reduce your tax burden:                       

  1. Pay your children for work that supports your business. Deduct it and start your children’s IRA with that wage. All of it.
  2. Deduct business expenses. “Katrina” is making it possible to deduct start up expenses more generously
  3. Deduct cost or amortize any new equipment used in your business. Deduct maintenance, cleaning, etc.
  4. Deduct continuing education, trade journals, legal fees, business travel, business meals, business entertainment, rent, utilities, phone service, mileage for business, etc. ( The IRS likes to see detailed records of your business activities when you are audited.)

     I’ll have to admit that the first time I was audited by the IRS, I was a little bit intimidated. But the next time I was ready and loaded for bear. And this last time it was a rather fun and competitive experience. I’ve concluded that new guys at the IRS office in our area are turned loose on me as part of their training audit. I keep reminding them I do my taxes myself based on their instructions. If there is a problem then show me and I’ll fix it. I’m just trying my best to follow tax law (all umti-ump pound of it) with the help of TurboTax.. I’ve mentioned that anything tax-wise that IBM can do then I should be able to do also. I can assure you that you can be more creative than any conservative CPA you hire will want to be. I suspect that’s why I shall continue to be audited in the future.

Disclaimer: I don’t claim to be a tax expert. If you choose to do what I do without qualified tax advise and councel then you do it at your own risk.

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Why Use an Auto-Responder?

     If you have a website and you don’t have a method for people to give you their name and e-mail address, then you have an expense with very little hope of profiting from it.

     The easiest way to get these names and e-mail addresses is to offer something FREE in exchange for their information. Something like a FREE Newsletter, a FREE White Paper or a FREE Report.

     The neatest way to gather and store this information is with an auto-responder. You will be  creating a list of people who are interested in what your web-site has to offer. Now you can start an e-conversation with the people on your list. The trained copy-writer has the advantage. He/She knows how to craft a message that stimulates the client to a desirable action like sending you money or hiring you for a project or job.

     Several people ( Jim Edwards, Yanic Silver, and Jim Daniels) have told me that on average it takes eight reminders to get this desired action. With an auto-responder (I use AWEBER.) You can write these 5 to 12 messages and program them to be sent automatically at specific intervals to do just that.

     So there you are. Use the auto-responder to make a list and encourage people on your list to the desired action. You will find that your list, once you’ve gained their trust, will be the most profitable list you will ever use.  

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MY TO-DO LIST

1. Prepare for family Christmas. Buy gifts, decorate, etc

2. If you’re old enough, make mandatory withdrawals from your IRA this month. Make your IRA deposits before 15 Apr 2006.

3. Make charitable gifts before year end for this year's tax deduction

4. File monthly or quarterly business State tax forms on time to avoid penalties.

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      That's it until next month. If you have comments, suggestions  or questions sent them to query.longsgap@direcway.com

I'm Karl Kinkel 

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Karl Kinkel
Longsgap Services LLC
5262 Elk Creek Pkwy
Independence, VA  24348
(276) 773-3730
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