what particular business transactions or techniques might yo

what particular business transactions or techniques might you recommend to a client wanting to expand her or his business yet reduce their net taxable self-employment income between now and the end of the calendar year. Assume the client is on a calendar tax year and provide your rationale for the recommendations.

Solution

the client can spend some amount on the scholors who are working in the same field and who are working for improvement of the facilities, products and services in the concern area. by doing this the client can minimize his tax amounts to the government, of course he should spend (invest) in some other way. and this will benefited him in future.

the another way is to purchase a business entity which is now running in losses and if we plan and do it well, which may provide good results in future.

the another way is to donate funds to charitys and any trusts which are working to for welfare facilities.

another way is by offering aditional or good salaries to employees. this will increase the satisfaction of the employees and they can perform in a best way. in this way we pays higher amounts as salaries, and we can minimize the tax amounts to the governments.