Taxes are an important part of commercial working. This is because they are one of the most basic sources of revenue for the government against the services provided by them. However, the burden of the tax falls differently for the different scales of businesses and income activity.
Like businesses and working classes, the self-employed is a class that requires some of the best tax planning measures to cope with the fluctuating income and achieve growth at the same time.
Therefore, it is advisable for them to consult expert tax accountants like JDM Tax Consulting in Florida. These personnel can advise small business owners over the different types of tax planning which are:
Purposive Tax Planning – As the name suggests, this type of tax planning is dedicated towards a specific purpose or objective of the individual or the business owner. The planning seeks to use the tax provisions in an optimal manner that helps in obtaining certain quantified benefits in the future. As for the business, such type of tax planning helps in replacing the obsolete assets in the future and diversifying investment portfolio and other such things.
Permissive Tax Planning – The permissive type of tax planning seeks to obtain benefits from the various permissions that the tax laws allow around the business scenario. This sort of planning helps the self-employed people obtain the benefits on a routine basis by availing for deductions, concessions, incentives, and returns based upon different provisions that the concerned government provides. The process of obtaining these benefits implies qualifying for the benefit activity requirements.