|
|
Soulful Tax Shelters
by John O. Andersen
andersen@spiritone.com
Later, I thought about that popular notion of going into debt in order to save on taxes. On the surface, it sounds reasonable. But a closer look reveals the possibility that part of it may be a veiled rationalization for greed. Mass marketing and peer pressure form an irresistible combination in their ability to control buyer behavior. This may account for the fact that so many are convinced that taking on debt is the "done thing" when it comes to reducing their taxes.
There are, however, other options. Here are two which we might consider:
I'm not talking about elaborate accounting schemes to hide income. Literally, I'm talking about working less hours, and making less money. For some this is not possible without leaving their job. For others, it's very feasible.
Visualize a life with less income and outgo. Write this goal in your day planner or tack it to your reminder board. Review it daily. Take steps to make it a reality. Some people achieve this by switching to part-time work, job-sharing, or taking a lower stress job with another company. Others voluntarily change their status from employee to independent contractor. Self-employed people might close down the business for a month or two each year during slow season. Choosing any of these options could yield considerable tax savings.
Some may object to the concept of intentionally earning less money. They might claim that money equals peace of mind and freedom. Sadly however, many gloss over the fact that there are non-monetary forms of wealth which could bring them a substantially higher quality of peace of mind and freedom. Consider for instance, having a wealth of close family and friends, or a wealth of interesting experiences, or a wealth of learning.
We have a finite amount of time allotted to us in life. What we choose to pursue costs us not only the time and effort to achieve it, but also the lost opportunity of pursuing other paths. With this in mind, doesn't it make sense to experiment with a variety of forms of wealth beyond money? And just think, we don't have to pay taxes on a wealth of friends, experiences, or learning!
If earning less money isn't an available option, giving more away certainly is. Charitable giving can be an escape hatch from the all-too-typical scenario of watching your lifestyle rise to the level of your income.
There is nothing to stop a person from exchanging the "dream home" mentality for the "dream life" or the "dream community" mentalities. Better shelters and food for the homeless, more playgrounds for children, accessible mentoring for eager learners, or just more active service clubs and organizations are great causes into which you might funnel your surplus money (and time for that matter).
Of course, generous charitable giving will cut your taxes significantly.
Contrary to what we're often led to believe, we don't have to accumulate more things in order to reduce our taxes. Rather, we have the choices of earning less or giving more of our surplus away. When we consider our total wealth picture (including the many forms of non-monetary wealth and our limited time to pursue them), such methods of cutting taxes can make a whole lot of sense.
John is a small business owner and a proponent of a simpler lifestyle. Send any questions or comments to andersen@spiritone.com
Take the Next Step
- If you haven't looked for a lower mortgage rate in the past year you could be wasting money each month. Use our simple tool that compares different lenders to see what your monthly mortgage payment could be. It's private, only takes a minute and could show you how to save thousands!
Subscribe to TDS Newsletters
Join over 250,000 other subscribers!
To subscribe, check the newsletters you wish to receive, enter your email address and then click Subscribe.
View the TDS privacy policy.
|
Money problems? Struggling with credit card debt? What you need to know about bankruptcy? Trouble repaying student loans?
|
Get free household tips in your inbox each week!
Sign up for our free eNewsletter Dollar Stretcher Tips.
Looking for an answer to a frugal living question? Click here to ask a
Dollar Stretcher Stretchpert!
Copyright 1996 - 2013 "The Dollar Stretcher, Inc." All rights reserved unless specifically noted.
Contact the Dollar Stretcher at:
Dollar Stretcher
PO Box 14160
Bradenton FL 34280
941-761-7805
"The Dollar Stretcher, Inc." does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.
| About Us | Privacy Policy | Writer's Guidelines | Sponsorship | Media | Contact Us |
