Posts

So what do the IRS and clowns have in common? If you guessed “they are both terrifying!” you’d only be half correct. As a small or medium-sized business owner, taxes are only scary if you don’t have a sound tax saving strategy in place. Clowns, on the other hand, are creepy no matter what. Sorry, Bozo. 

As your business becomes more successful, and your profit increases, your tax liability will also increase (and if you’re easily spooked, you may even notice a spike in nightmares and panic attacks.) As a small business owner, there isn’t anything scarier than taxes.

So how do you mitigate the fear you feel towards the IRS? Strategic Tax Planning.  Like Brian Tracy, once said, “A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power.”

While Financial Gravity can’t help you overcome your fear of clowns or creepy crawlers, we can help you develop a tax savings plan, or Tax Blueprint®, that will allow you to get good night’s rest. Our Tax Blueprint is a tax reduction plan that is customised specifically to you and your business. And the absolute best part about implementing our Tax Blueprint? You’ll never pay more than half of what we save you. The cost of the service will always be less than your total reduction, backed by our 2x savings guarantee.

Let me repeat myself, the amount we save you will ALWAYS be more than what the service costs. 

Whether you’ll be shuffling your kiddos around the neighborhood as they beg for treats, watching a Chucky marathon with your significant other, or running away from a chainsaw-wielding zombie butcher at a haunted house, Financial Gravity hopes your Halloween is filled with WAY more treats than tricks.

Want to read real-life case studies featuring clients who have successfully implemented the Tax Blueprint to reduce their tax liability? 

Photo by Thomas Roberts on Unsplash

Top 10 Tax Myths Busted

For the last 10 weeks, we’ve been busting tax myths left and right on our Financial Gravity blog. Below is a summary of all the myths we’ve busted in that time.

1. Having an accountant is the same thing as having a tax planner. MYTH

Everyone knows that if you are an entrepreneur or small business owner, having a good Accountant is essential to the function and success of your business, but it’s not everything. If you want to lower your personal taxes, increase your profits, and attain greater wealth, you’ll need the help of a Tax Planner. Read more here. 

2. Taking a proactive approach to tax planning will put your business at risk for an audit. MYTH

Implementing strategies that help you reduce your taxes will not raise your risk of audit. In fact, it’s why the Internal Revenue Code exists (all 70,000+ pages of it). Inside the IRC, there are plenty of legal ways that Small Business Owners like you, can learn to lower their tax liability and keep capital in your business. Read more here. 

3. Becoming an LLC prevents me from having to pay Self-Employment taxes. MYTH

Becoming an LLC will not magically prevent you from paying Self-Employment taxes. Why? Because an LLC is not a tax filing status. To determine which tax filing status is right for your business, get in touch with a Tax Professional. Read more here.

4. Having an IRA or 401k is a Sufficient Retirement Plan. MYTH

If you are a small business owner, and you have an IRA (Individual Retirement Account) or a 401k, you don’t actually have a sufficient retirement plan. Not only do conventional retirement accounts (401k, 403b, 457, SEP, SIMPLE, IRA) contain massive hidden fees but they only work if Taxes don’t go up and Your income decreases upon retirement. Read more here. 

5. Kids are an expense. Case Closed. MYTH

As long as you have a written contract, you are paying your “employee” through the payroll (so the IRS gets their fair share), and the money is being deposited into your “employee’s” account, it’s totally legal, moral, and ethical. Read more here. 

6.  The Affordable Care Act took away my ability to write off medical expenses. MYTH

There are still PLENTY of ways for you to write off glasses, braces, massages, acupuncture, and other medical related expenses. Here are just a few; Flex Plans, Health Savings Accounts (HSAs, or a Medical Expense Reimbursement Plan (MERP). Read more here.

7. A home office deduction will put me at an immediate risk for an audit. MYTH

Not only is a home office deduction LEGAL, MORAL, and ETHICAL, but there are four different ways (YES, FOUR!) to do it. If writing off your home office was risky, why on earth would the IRS give you four ways to do it? Read more here. 

8. If there is food involved, then it’s a meals and entertainment expense. MYTH

If the food is part of a marketing expense, bought while traveling for work, or purchased for staff as a “working lunch”, you may be able to deduct 100% of the cost. Read more here.

9. Mileage is the only tax write-off I can use for my car. MYTH

In addition to writing off your mileage, the Internal Revenue Code allows you to write off your leased car (but not a loan.) Read more here. 

10. If lowering my tax liability was that easy, I would already know about it. MYTH

Most accountants, attorneys, or business consultants aren’t taught to master the myths standing between you and your money. In fact, the financial industry benefits from small business owners not understanding tax myths. At Financial Gravity, however, we have expert tax planners and tax specialists who not only understand the tax code and the available “green lights” you can use to reduce your taxes but who will help you engage in proactive tax savings and tax planning. Read more here. 


If you’d like to read about the myths in further detail, you can download your own copy of the Tax Myth eBook here. After reading the eBook, you’ll have a better understanding of what you need to do to lower your tax liability, increase your profit, and enhance your quality of life.

*image by Edu Lauton

Tax Savings

As a small business owner, finding legal and ethical ways to increase your tax savings shouldn’t be a full-time job in itself. Unfortunately, most accountants, attorneys, or business consultants aren’t taught to master the myths standing between you and your money. In fact, the financial industry benefits from small business owners not understanding tax myths.

Wait, my accountant can’t help me with tax planning and tax savings?

The CPA exam is focused on General Accepted Accounting Principles and has nothing (absolutely NOTHING) to do with taxes. Your accountant may be a lovely human being, but they aren’t the ones you should be consulting about tax savings.

So if I can’t turn to my CPA to help me find ways to pay less tax, who can I turn to?

Well, you have a couple of options. You could read all 70,000+ pages of the Tax Code. (Though this option will likely be zero fun for 99% of the people on the planet.)

Who is this option for?

People who have too much time on their hands and a passion for onerous, complicated, and bloated text.

No, thanks. I’ll pass. Any other options?

You could download the Tax Myth eBook, a book that our CEO, John Pollock, put together outlining 10 of the most damaging misconceptions about taxes — and then read it. This free eBook will help you prevent further loss (in taxes) or prevent you from losing money in the first place.

Who is this option for?

Do-It-Yourself-ers who want to lower their tax liability…quickly, legally and ethically, and who make under $100,000 gross income. 

What if I make more than that, what should I do?

Get in touch with us. At Financial Gravity, we have expert tax planners and tax specialists who not only understand the tax code and the available “green lights” you can use to reduce your taxes but who will help you engage in proactive tax savings and tax planning.

Who is this option for?

Business owners who have a shortage of time, zero desire to learn about the Tax Code and either pay $20,000+ in personal income taxes or make $100,000+ gross income.


If you’re a small business owner, taxes are your single biggest expense and they will get bigger if you don’t have a sound strategy in place to mitigate them. 

*Photo by Ante Samarzija on Unsplash

It’s not uncommon for entrepreneurs to start conducting business from their home office (at least in the beginning). Not only is it a great way to minimize office space rental costs, but you can also save money on commuting and dining out (if you can keep your trips to the refrigerator to a minimum, that is.) If you are conducting business at home, you can also write off your home office to reduce your tax liability.

If your accountant has ever told you that a home office deduction will put you at an immediate risk for an audit, please consider hiring a new accountant. Not only is a home office deduction LEGAL, MORAL, and ETHICAL, but there are four different ways (YES, FOUR!) to do it. If writing off your home office was risky, why on earth would the IRS give you four ways to do it?

Here are Four Legal, Moral, and Ethical Ways to Write Off Your Home Office:

  1. 1. Depreciation – Don’t do this one; VERY rare when this is best.
  2. 2. 14 -Day rental rule – Rent your house (to yourself even) for 14 days, there is an actual box on your tax return for this one, it says “14 Day Rental” next to it.
  3. 3. B.U.P. 1 – Business Use Percentage based on square footage (better for smaller homes)
  4. 4. B.U.P. 2 – Business Use Percentage based on number of rooms (better for Texas-sized homes)

So as you can see, writing off your home office is not only legal, moral, and ethical, but it’s also pretty smart. At Financial Gravity, reducing your tax liability is ALWAYS a green light.

Want to discover more LEGAL, MORAL, and ETHICAL ways to reduce your tax liability? Download our eBook today. Did we mention that it’s FREE?

*image by Gabriel Beaudry 

Let me be frank with you, kids are expensive. Not only are you spending your hard earned money on their bare essentials (Capri Suns, iPads, and hoverboards, OH MY!) but then you also have all the extras like hockey lessons, prom hair, and summer camp tuition. Anyone that tells you that the financial burden goes away once your kid is eighteen, is just plain lying to you. On average, American parents spend $20,000 per year to send one child to college (and another $20,000 paying for their weddings.)

Though your kids may continue to give you a sense of purpose, a reason to wake up in the morning, and an indescribable joy, there is no denying the fact that they are also inadvertently putting a huge dent in your wallet. That’s why I want to encourage you to start thinking of your children as assets instead of expenses (or in other words, I want you to hire your kids.)

I know what you’re thinking, “Hiring my kids? That sounds sketchy!”

Actually, it’s not at all. As long as you have a written contract, you are paying your “employee” through the payroll (so the IRS gets their fair share), and the money is being deposited into your “employee’s” account, it’s totally legal, moral, and ethical.

Here’s what it looks like:

  1. 1. Pay your kid $6000
  2. 2. File a return with the standard deduction of OVER $6000
  3. 3. Pay NO tax. (And no, you don’t have to worry about paying their portion of FICA. If you hire your own kid, FICA is waived.)

I couldn’t make this “green light” up if I wanted to! Learn More About the 10 Tax Myths Sabotaging Your Small Business Growth.