I recently began doing some contracting work as a side business. I've been researching the tax implications and have seen a lot of advice.
Much of the advice includes writing off cell phone and ISP bills, car expenses, mortgage, computers, etc. However, I only use these things a relatively small percentage for my business. Mostly they are used for non-business related purposes.
It seems that most people recommend taking advantage of any loophole, and getting "creative" when filing taxes. I've even seen advice along the lines of "you can fudge numbers by telling your accountant something other than reality, and he'll gladly assist you."
I don't want to get stuck paying so much in taxes that it isn't worth my time to be self-employed, but at the same time, I want to pay my fair share. I expect certain things from the government (education, police and fire protection, etc.), and I understand that they need tax revenues to provide these things.
What are your views on the ethics and practicality of real vs. fudged numbers for your taxes, especially for the self-employed?
Much of the advice includes writing off cell phone and ISP bills, car expenses, mortgage, computers, etc. However, I only use these things a relatively small percentage for my business. Mostly they are used for non-business related purposes.
It seems that most people recommend taking advantage of any loophole, and getting "creative" when filing taxes. I've even seen advice along the lines of "you can fudge numbers by telling your accountant something other than reality, and he'll gladly assist you."
I don't want to get stuck paying so much in taxes that it isn't worth my time to be self-employed, but at the same time, I want to pay my fair share. I expect certain things from the government (education, police and fire protection, etc.), and I understand that they need tax revenues to provide these things.
What are your views on the ethics and practicality of real vs. fudged numbers for your taxes, especially for the self-employed?