Effectively the AMT works like a flat tax of twenty-eight percent on an adjusted gross income (AGI) of over $175,000 as well as an additional twenty-six percent of the AGI under $175,000 after exemptions. Despite claims to the contrary, the AMT is not particularly more complicated than a standard Form 1040 filing, though the deductions and exemptions reflected on the AMT’s Form 6251 are different. The real matter of complexity stems from the fact that people wealthy enough to fall under the provisions of the AMT have to perform double the amount of tax preparation: they have to complete a normal 1040 filing as well as the 6251 filing, and they owe which ever of these are the highest.

The real problem with the AMT is that it is not indexed to inflation and has no adjustment mechanism to take into account regular tax decreases. This leads to “bracket creep”, where inflation gradually pushes people into higher tax brackets over time. Since inflation has steadily increased and regular taxes have decreased, and ever increasing number of people in the United States is gradually falling into the range of the AMT. While all parties generally agree that this is a problem, the ideas of how to reform – or even repeal – the AMT differ widely and has resulted in a stalemate preventing comprehensive reform. In the meantime, Congress annually passes one year patches designed to mitigate the effects of the AMT on the public.

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These are the ways to save on taxes, we will offer you. But be warned: not all they are all fit …

1. Be careful, following the recommendations of tax officials and published in newspapers and magazines. Since, this is not an official document (decree, decision, etc.), and then the erroneous information may be more likely to creep in there. A specialist – the commentator does may be incompetent in its business. And although the ruling FAS Northwestern District from October 2, 2006 number A42-13753/2005 such as relieve the taxpayer from liability for tax delinquency on the recommendation of the official, published in the media, their right to this “amnesty” you have to prove for a long time . Therefore it is better to re-examine themselves.

2. Keep in mind that judicial precedent, if the street, which is owned enterprise land, located in two different areas of urban values (according to them is determined by the land tax rate), allows the businessman to pay tax at the rates. The court based its decision on the fact that all the contradictions and ambiguities of the law be interpreted in favor of the taxpayer.

3. Taking on a labor contract for a new employee, the head is usually negotiated with them wages “clean” – a tax that pays the salary itself. If the specificity of activity allows you to hire experts on civil contract – such as outsourcing, you can save a substantial amount. First, in such employee not covered by such benefits and social guarantees, as paid vacation and sick leave, set-off of seniority. You may not pay overtime processing, and establish strict pay for results. And for such an employee is no minimum salary limits, equal to the minimum wage. If in a row not just in specialty occupations, and the entrepreneur, the personal income tax to pay for it will not have to – it is his own responsibility.

4. If those services, providing that you do, make it possible to pay no tax on the profits, and simplified tax, then you may be lucky. This is typically, the rate of such tax “floating”. Ask in the inspection or carefully read the setting of the tax regulatory document, on which it depends for its size: experience as an entrepreneur, concrete specificity of services, and your personal story of taxpayers – and adjust for those requirements, which guarantee minimum bid. If, of course, winning is the difference worth the effort.

5. Also, the rate under the simplified taxation system may vary depending on what address you are registered and, accordingly, registered business: in the city center in the capital cities with million-or half-forgotten village.

6. If, however, for the registration of an entrepreneur on the types of services or trade is not required to provide documents on the specialized knowledge and skills, and you have a completely able-bodied family members – retired (and even in rural areas!), You can get business for my grandmother or grandfather. Just ask first, I laid in your region “discount” on taxes for entrepreneurs – pensioners.

7. Those who have already successfully operates a home business, will approach the next way to save on payroll taxes to the founders. The fact that the dividends paid to shareholders are not subject to 13 per cent as the personal income tax, tax, and 9 per cent. Therefore, if the amount of earnings – and hence the tax deductions – you have great, you can save money joint-stock company, dividing its parts between family members. In this case, you’ll save twice, because the founders of income – individuals – from the distribution of net income not subject to unified social tax and insurance premiums to the Pension Fund of Russia.

8. Unexpected reserve for savings can be found by those entrepreneurs who want to develop businesses to purchase new equipment costing more than $ 100.000. Having a lease from the bank, you are absolutely legal optimize the taxation of the business. First, the lease payments are allowed to be counted in the cost of goods or services that will allow you to reduce the taxable base for profit. Second, the VAT paid by the bank in repayment of payments, reducing payments for VAT in the budget. And most importantly – in the third – at the expense of accelerated depreciation of equipment during the general property tax is reduced to three. Benefits, as they say in the face.

9. Employers will soon have another incentive to spend money on higher education and vocational training of employees – including him. This is an initiative of the Ministry of Economic Development and Trade. If you study at college or advanced education to pay the money the firm, these costs can be taken into account when paying the unified social tax, taxes on profits and personal income.

10. Tax savings can and after the event. If you are a businessman, bought a home loan or tuition fees in universities for themselves or relatives, you are entitled to a tax deduction only if and where a decorated officer and to pay personal income tax at a rate of 13%. Then the tax inspectorate will return you to a certain portion paid in taxes last year.
So, dear businessmen, not in a hurry “scared” of receipts for payment of taxes. It is possible that even the very tax you should be!

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1. What is a Franchise?

Franchising allows the franchisor to expand the business by attracting to it other enterprises. Franchisee for a fee, prescribed in the contract, shall enjoy the trademark franchisor.
Initially our market emerged franchisees that have to operate under the names of foreign companies. These include Pizza Hut, Kodak and others.

Franchisor does not need to open branches, and, consequently, spend large sums of money, as well as to recruit new staff. In the franchisee is able to start a business using the brand-promoted, reducing their costs associated with entering the market. In addition, the franchisor will conduct training for franchisees, as do business and give all the necessary information. It turns out that this kind of business is profitable and that, and the other side.
With regard to the legal framework of franchising, the Civil Code used the term “franchise”. Under a contract of commercial concession holder gives the user the right to use in their work the exclusive rights which he possesses.

They are available for a fee. Franchising contract is in writing and must be registered with the tax authority.
To do, provided the following documents:
1. Application for registration of the contract signed by the applicant.
2. The document, which confirms that the applicant is authorized to perform the steps to register the contract.
3. A copy of the document, which confirms the legal status of both parties to the contract.
4. Agreement in 3 copies.
5. The list of documents that were filed in 2 copies.
If you use an object that is protected by patent law, for example, trademark, patent, etc., the contract must be registered.

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1. Taxation from the Franchisor (Part 2)
2. What is a Franchise?
3. Advantages of Franchising

All this is provided for the franchisee fee. It can go in a lump sum fee, royalty, premium on the wholesale price of the product or in another form. How to earn franchisor? Remuneration, which receives a franchisor, is the income from the sale in accordance with Art. 249 Tax Code.

The reward can be spelled out in the contract is not necessarily in the form of fixed payments or a percentage of sales of the franchise. Also, it can go in the form of surcharge on the wholesale price of the product. Suppose the franchisor to buy convenience foods, of which makes the products. These semi-finished products it needs to sell to the user at a price that is higher than the purchase price. This fee is considered as the amount that the user has paid for the products received by him, and which is included in income from sales.

The moment of recognition of income and, consequently, the time to pay income tax, is related to the method of recognition of income and expenditure chose franchiser. With this method, as the accrual of income should be recognized in the same period, where they occurred, not whether they actually received.

In cash basis revenue is recognized in the period when he went to the cashier or to the account. In practice, this method is used infrequently. Since an average quarterly sales revenue for the last four quarters should not be more than 1 million dollar.

How to determine the costs franchisor?

There is also a franchisor costs. To ensure that the costs were recognized as expenses must be fulfilled certain conditions. They must be:
1) reasonable, that is justified from an economic point of view;
2) be documented, be prepared in accordance with applicable law;
3) made for the implementation of activities related to the receipt of income.

It turns out that if the costs do not meet these requirements, and then reduce the income before tax on their sum will be impossible. Please complete your interest by reading part 1 of this article.

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1. Taxation from the Franchisor (Part 1)
2. What is a Franchise?