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Setting Aside Money for Taxes #shorts

26 Jul 2023 · 1 min

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Short YouTube video by Bob Gauvreau explaining practical strategies to set aside money for taxes. Covers expected quarterly installments for individuals/sole proprietors, monthly installments for corporations based on prior income, and the creator's practice of making weekly personal tax installments to avoid year-end bills.

Chapters

How we can set aside money for taxes. If you are an individual or a sole proprietorship, they're likely going to be asking you to send quarterly installments. I want to actually look at what my expected taxes are going to be. We should have an expectation of what our income looks like for the year so we can budget what our taxes owing are going to be. Let's talk about being a business in a corporation. If you had previous income in a corporation, they're likely going to request that you pay installments on a monthly basis. Now, that's based on historical figures, maybe not on what we anticipate your taxes are going to be. For me personally, I actually make a tax installment weekly on my personal taxes so that I don't have a bill owing at the end of the year. When I look at cash outflow from my personal account, this drops down to being a smaller amount. It's very manageable on a weekly basis. When I have money that comes into my account, I want to pay the government their share of that before I have any spending come out.