Are You Facing a Huge Tax Bill for Next Year?

Cutting a check to pay your taxes is never anyone's favorite thing in the world.

​Yes, we are grateful that we are making enough income to be able to have a large tax bill. But did you know you could invest in yourself for next year, and write off that cost this year?

Read more below.

If you'd like to listen​ to this article, you can do so here:

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Writing a check, or sending money to your country's tax authority is never anyone's favorite thing in the world, I know.

Sure, I’ve reconciled that it’s my civic responsibility, and that it is exactly because I live and have grown in the US that I have the opportunities to learn, earn, and be supported through IRS tax laws in the growth of my businesses.

But have you ever been caught unaware with the possibility of a huge tax bill and don’t know what you can do about it?

With a little planning ahead of time, you can make choices that will support you and your business so that, come tax time, there are no huge surprises, and there are no huge tax bills.

Here’s the thing: spiritual people don’t like talking about money. It can be perceived as evil, dirty, greedy, and base, and we can sometimes have an attitude that we are "above all of that.”

Yes, you can be above all of that—until your accountant lets you know you need to pay X amount of dollars to the IRS by April 15th. Then, suddenly, it’s a smack against the head, like the proverbial two-by-four you weren’t expecting.

This happened to me one year, and I had to come up with $80,000 to pay the IRS. I was really mad! But I also made a lot of money that year, all in the final quarter, and hadn’t had very many expenses all year long. My accountant kept asking me to come up with more expenses, and I couldn’t find any!

I learned a lot from that lesson that year, and then I made sure it never happened again.

Believe me, there are many laws that support you in your business growth, and when you work within them, you are fully legal, and you can support yourself and your business very well.
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There are many laws that support you in your business growth, and when you work within them, you can still be fully legal, and you can support yourself and your business very well.
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​The trick is, you need to get informed, and the sooner you can do that, the better. You get to plan ahead, and be wise about your spending, and expense accounting.

So here it is in the simplest of terms: If you made a sizable chunk of change this year, have you spent enough on legitimate business deductions that would lower your tax liability?

Doing a simple check by preparing a “Profit and Loss Statement” (available in your QuickBooks or through your accountant) will tell you exactly where you are with income and deductions this year.

Try to do this regularly, quarterly is ideal. If you do have an accountant or bookkeeper doing this for you, also ask them: “How much should I spend by the end of the year to avoid a huge tax bill in April?” They’ll be glad you asked and happy to help.

Why do I know all this stuff? Because I’ve paid my dues. I learned. Now, I love money, because it helps me. It helps me hire people. It helps me purchase courses and learning, go to seminars, and travel to meet clients or go to retreats. 

And I love to learn. I love to invest now, and yes, save. However learning and knowing are one thing, the actual doing of it is where you stay ahead and feel secure with your finances.

Managing money well helps to buy the tools and systems needed to make any business run more smoothly.

It also can support you in a lifestyle that allows you to enjoy life more, and do the things you really want to do.

I love to have time freedom, so that I can read, write, meditate, and dream about what I want to create, or what God wants me to create next!

And more importantly, money helps me help more people. And when you shift your mindset around money, you’ll be able to help more people too.

​This is my goal for you and everyone else I know!

I don’t like having restrictions and limitations on my life. God doesn’t want you to have restrictions and limitations on your life, either.

So make friends with money, if you haven’t already done so, and realize that as a spiritual being, you are entitled. You more than anyone else should be demonstrating to those around you who aren’t doing so well what it looks like to trust life, trust God, and not hold resentments against either one, or against money, for that matter!

So here are a few things you can do, if you are one of those that is actually IN a position where you were blessed with quite a lot of business this year, and you might be looking at a big tax bill next April.

• Make an accurate assessment of where you are now. Like I described above, there are tools and ways for you to get an accurate picture of your income and expenses from 2018. If you don’t have software to do your books yet, get some! Yes, that purchase is tax-deductible.

 

• Do a rough outline of what your tax liability will be for your business and your personal incomes are. Remember, it’s not just your business that pays taxes, you do too as an individual.

​If, after doing that assessment, you realize you’re looking at a ginormous tax bill for next April, think about what items your business—or you—could use for next year. Invest in them now and get those expenses logged in before December 31st of this year.

Before you know it, it’s going to be Thanksgiving and then Christmas. So, to eliminate some stress in your life, start doing a little research on what you want/need for next year, now.

Legitimate business expenses look like the following:

• Equipment purchases. Need a new, or additional laptop? This can also be a desktop computer for your assistant or helper. Do you need a new microphone, lighting kit, or software to edit or post your materials?

 

• Upgrades. Do you need to upgrade your online subscriptions to things like webinar portals, content management systems, and emailing or e-commerce solutions? When you’re getting to a higher level, you want to be using systems that will scale while you grow. Continuing with what you started doesn’t always allow for expedient growth.

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• Employees and contractors. Are there accountants, consultants, web designers, or project builders that you can hire now for next year’s work? Negotiate with them and ask about paying them up front for a marginal discount. It’s not scammy or cheap to offer to pay upfront for a year and get a 10% discount. Many contractors love this because you’re demonstrating that you pay your bills—and on time! This is a huge headache relief for a lot of contractors who may not always experience that kind of fiscal responsibility. Remember, get everything about your agreement in writing, including “what happens if” your contractor is suddenly unable to fulfill their obligations to you.

 

• Retreats, seminars, and educational learning. Yes, the IRS allows for you to invest in your own education and continued training to improve and develop your skills and knowledge in the area of your business. Have you always wanted to get certified in something? Have you been thinking of hiring that marketing biz wiz to help you with a new course you want to launch? Do you have a retreat or seminar you want to attend in next year that you can pay for before the end of this year?  Hmmm..... destination retreats... here I come!

 

• Private Healing and Coaching Packages - Don’t wait until January to research and invest in that year's personal support for you.  You will definitely want to have coaching, and or healing, and/or business consulting programs for yourself, so do your research now. Interview and meet with a variety of professionals ahead of time. Some coaches have limited space so that they can serve who’s on their roster privately a little better. You know you’re going to need it and benefit from it all next year, so why not take care of this early and eliminate the stress of figuring it out in January? You can hit the ground running as soon as you’re ready when the new year arrives!

Things to note about paying for a coach:

• Many coaches will allow you a sizable chunk of a deposit or you can do a full-pay for a discount if you take care of it before the end of the year.

 

• You can also discuss a “pay now, play later” so that you can start in January (or even February, as some of my clients have asked for). You will be calm and settled after the holidays to bring your new year of growth and success.

 

• By organizing your coaching payments and schedule before the end of the year, you can sit back and enjoy your holidays like no other. Why? You know you’re all taken care of for next year, and no surprise tax bill is coming. 😌

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These are all ways to reduce your tax liability for next year, completely legitimately.
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Much love and blessings,​​