Saving/Taxes. Best Brick & Mortar Investing?

Discussion in 'General Business' started by veneficuz, Jun 15, 2008.

  1. #1
    It's a well known fact, that you should be saving and putting away for taxes. But what are some solid tips on making some money on this money while saving? I was looking into flipping houses on my spare time?

    Vene
     
    veneficuz, Jun 15, 2008 IP
  2. Twan

    Twan Well-Known Member

    Messages:
    1,665
    Likes Received:
    32
    Best Answers:
    0
    Trophy Points:
    155
    #2
    Buy a car and write it off as client entertainment.
     
    Twan, Jun 15, 2008 IP
  3. veneficuz

    veneficuz Peon

    Messages:
    386
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #3
    sounds like a good idea, it has to be a 2nd car right?

    Vene
     
    veneficuz, Jun 15, 2008 IP
  4. KMP

    KMP Peon

    Messages:
    311
    Likes Received:
    11
    Best Answers:
    0
    Trophy Points:
    0
    #4
    I don't know about elsewhere, but in the US you can't buy a car and write it off as client entertainment. You can write off your business miles, which might include driving a client around, but there are specific rules that must be followed and you are not "saving" any money by buying a car.

    If you are putting away money to pay your taxes with, then you need a short term investment that you can access quickly. Flipping houses is very risky, especially in this market, and it is difficult to get cash quickly.

    I know it is boring, but I would recommend a high yield savings account or a money market account. You'll earn a little interest but the cash will be there when it is time to pay the taxes. Not paying taxes on time results in fines and penalties and can add up to a lot of money very quickly.
     
    KMP, Jun 16, 2008 IP