Tax tip going way back to Learned Hand: you don't have to feel guilty about structuring your affairs to take advantage of every legitimate opportunity to decrease your tax burden.
Here's a related example: US tax law allows you to deduct 50% of meals incurred on business trips. I travel internationally for a significant portion of every year, on business trips. There are two ways to calculate how much you spend on meals: 1) Actual cost 2) An approximation method which takes a per-diem rate supplied by the US government based on your location and adds one or two wrinkles not relevant here. Either is acceptable to the IRS. I keep appropriate records of business expenses, so running both the exact cost and the approximation method was trivial. The approximation overstates my actual cost on meals by several thousand dollars -- using it as the basis for my deduction saves me about a thousand bucks. That's totally kosher.
P.S. You know those beating-the-system-is-worth-bonus-points neuroreceptors that most of us hackers have? Doing taxes gives you the opportunity for that sort of thing in spades. (Though I'd probably still suggest getting someone competent to do yours -- advice which I will be taking for myself from next year on.)
This is a good point. Personally, we often hire accountants to minimize our tax burden, yet when companies do the same thing, we like to label them as "evil" (at worst) or "shirking their duty" (at best).
http://www.irs.gov/publications/p15b/ar02.html#en_US_2011_pu...
Tax tip going way back to Learned Hand: you don't have to feel guilty about structuring your affairs to take advantage of every legitimate opportunity to decrease your tax burden.
Here's a related example: US tax law allows you to deduct 50% of meals incurred on business trips. I travel internationally for a significant portion of every year, on business trips. There are two ways to calculate how much you spend on meals: 1) Actual cost 2) An approximation method which takes a per-diem rate supplied by the US government based on your location and adds one or two wrinkles not relevant here. Either is acceptable to the IRS. I keep appropriate records of business expenses, so running both the exact cost and the approximation method was trivial. The approximation overstates my actual cost on meals by several thousand dollars -- using it as the basis for my deduction saves me about a thousand bucks. That's totally kosher.
P.S. You know those beating-the-system-is-worth-bonus-points neuroreceptors that most of us hackers have? Doing taxes gives you the opportunity for that sort of thing in spades. (Though I'd probably still suggest getting someone competent to do yours -- advice which I will be taking for myself from next year on.)