How can one legally not pay taxes? Write off's et all...?

From a strict business standpoint, one cannot do it. The amount that you have to give to charity, spend on business lunches, etc., is 3-6 times what the tax would have been if you had paid the tax. If you have a personal grievance against the money and are willing to waste a lot of money to keep a little bit of money away from the government, you can do it from that standpoint. But, from a strict business standpoint, you want to pay as little as possible, and paying some money in tax, rather than a lot more money in other ways, is the way to pay as little as possible.

Yes, there are those who do it all the time, but not from a strict business standpoint. They spend 3-6 times as much on things other than tax as they save by not paying tax. This makes no sense from a strict business standpoint. They do it for other reasons.

It all depends on the type of business that you have. For example if your a carpenter then you have the ability to deduct any type of tools used in tht business, cell phone, car/mileage expenses used for that purpose only, if you have a home office deduct any expenses related to this craft If you buy any type of material for that business, even uniforms/work shoes, If you are only self employed and no job, you have medical expenses for you/family, insurance, car insurance, home interest, property taxes, so you need to itemize, all of the above will help you pay less taxes, but always remember if you exxagerate or make up numbers you run the risk of getting audited. specially if you have a small business starting out you cannot just say for example i had 70k miles on the car this year because IRS does have red flags and you will get audited.

Business lunches generally are NOT a writeoff. After all, you have to eat anyway. Even if you can justify the business lunch (show client name and business generated by lunch), you'd spend a LOT of money to avoid paying the income tax.

In fact this is the problem with getting the tax to zero. You spend far more than you save in tax.

if you have a 1099 and are filing a Sch C, you can claim many business expenses, but they have to have a business reason

ie the business lunch write offs require that you have the receipt, the name of the person you treated to lunch and the topic of the business conversation

the charitable contributions would have to have a business reason, ie, I have a lawyer who contributes to law enforcement non profit groups for good relationships with his business and law enforcement

legally, you need to claim expenses you are legally entitled to use

of course there are those who fudge all the time, but it is a sad day when they get audited and cannot substantiate their expense claims

Please assist this endeavour.

To do this legally you will have to follow ALL of the below enclosed rules for this purpose BUT you more than likely will NOT come out the way that you really want to from the question that you asked about legally NOT pay taxes.

YOU WOULD NEED TO HAVE SOURCES OF NONTAXABLE WORLDWIDE INCOME IN ORDER TO KEEP FROM HAVING TO LEGALLY PAY TAXES ANY WHERE IN THIS WHOLE WIDE WORLD.

And here you go using the below information should help you get started for your first year as a self employed independent contractor and as you progress and your business starts to grow you may even need some good professional assistance with it for your future.

Schedule C and the SE of the 1040 federal income tax return read each line when you start at the top of the page on the schedule C for your self employed independent contractor business operation your name is fine your social security number is fine and your present home address can all be used for this purpose just do NOT try to make it complicated and read each line and word and understand what it says and do what it says and then you should NOT have any problem.

You can also find the line by line instructions for the schedule C by using the www.irs.gov website and using the search box for the schedule C 2010 Instructions for Schedule C (2010) 2010 Table of Contents Profit or Loss from Business

http://www.irs.gov/instructions/i1040sc/index.html

Specific Instructions

http://www.irs.gov/instructions/i1040sc/ch02.html

BUT GOOD detailed records are really necessary for your business operation to succeed.

For your 1040 Federal income tax reporting you would use the below enclosed information for this purpose.

Use the search box at www.irs.gov for Publications and Forms for the Self-Employed

http://www.irs.gov/businesses/small/article/0,,id=...

All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.

Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business

In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

You would have to be sure that you handle your business deductions correctly for your business operation.

For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

2 of the seven tax tips for starting a business enclosed below.

#4 Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

#7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material

*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)

http://www.irs.gov/

http://access.wa.gov/business/taxes.aspx

Hope that you find the above enclosed information useful for your situation and good luck to you. 06/17/2011

Not going to happen. Writing off all of your business income with business expenses will leave the IRS wondering how you managed to survive. Good luck on THAT audit!

Earn less than your standard deduction and personal exemption. For 2010 that was $9350 if single.

You have enough deductions and credits to reduce your liability to zero. Itemizing would be a must, depending on income.

Why don't you ask the "people who do it all the time"?