Thursday, April 23, 2009
Small Business Tax Strategies to Reduce Income Tax
2) Manage your RRSP contribution. The Registered Retirement Savings Plan (RRSP) is The Best Income Tax Deduction for Small Businesses. But that doesn't mean that you should necessarily just make the maximium RRSP contribution every year. Managing your RRSP contribution is a much better small business tax strategy. Your allowable RRSP contribution will carry forward if you don't use all of it in a particular year, so estimate what your total income for the year will be and then decide how much of an RRSP contribution you should make that particular tax year, if any, to maximize your RRSP's tax bang for the buck. It doesn't make tax sense for you to make a large RRSP contribution in a low income year.
3) Maximize your non-capital losses. Similarly, if your business has a non-capital loss (defined as when your expenses exceed your income for the business) in any year, consider when you can best use this loss to decrease your income tax bill before you use it. Non-capital losses can be used to offset other personal income in any given tax year, can be carried back three years, or carried forward for up to seven years. It may make more sense for you to carry your non-capital loss back to recover income tax you've already paid, or to carry it forward to offset a larger tax bill in the future than it does to use it in the tax year the capital loss occurred.
4) Maximize your charitable income tax credits. Charitable donations to registered Canadian charities or other qualifed donees earn you tax credits. But are you aware that charitable donations that total over $200 provide you with more of a tax credit because they're assessed at a higher rate? To maximize your charitable income tax credits, consider giving more to the registered charities of your choice this year. If you make $30,000 in income and decided to give only 5% of your income, the fortunate charities would get $1500. (Be aware that non-registered Canadian charities, American charities, and political parties don't count.) There are more small business tax strategies to help you maximize your business income tax deduction and reduce your income tax on the next page, including income splitting and tax strategies for maximizing your Capital Cost Allowance.
5) Maximize your Capital Cost Allowance (CCA) income tax claim. Most Canadian small business owners know that instead of just deducting the cost of whatever depreciable property they've acquired to use in their business in a particular year, they need to deduct the cost of the depreciable property over a period of years, through a Capital Cost Allowance claim. But many small business owners are not aware that they don't have to claim Capital Cost Allowance in the year that it occurs - a tax strategy that you can use to reduce your income tax. The CCA is not a mandatory tax deduction so you can use as much or as little of your CCA claim in a particular tax year as you wish; you can carry any unused portion forward to help offset a larger income tax bill in the future. It doesn't make sense for you to take your full Capital Cost Allowance claim deduction in a year that you have little or no taxable income. Another aspect of mazimizing your Capital Cost Allowance claim is to buy (and sell) your assets at the right time. You want to buy new assets before the end of your fiscal year and sell old assets after the current fiscal year. Be aware, too, of the 50% rule; in the year that you acquire an asset, you usually can only claim 50% of the Capital Cost Allowance that you would normally be able to claim (and in some cases, the "available for use" rule means that you can't claim Capital Cost Allowance until the second tax year after you acquired an asset).
6) Split your income. The income splitting tax strategy lets you take full advantage of the marginal tax rate disparities. The higher your income, the higher your marginal tax rate. By transferring a portion of your income to a spouse or child, a person with a lower income, you can reduce the marginal tax rate on your income. This is an especially powerful tax strategy for small business owners with children of post-secondary school age. Suppose that you employed your 19-year-old daughter in your business, paying her a salary totalling $10,000. Because of the basic personal income tax exemption, she would pay very little income tax, and would have a nice nest-egg to help pay for her education. (If you paid her an income equalling the personal income tax exemption, she would pay no tax at all!) And meanwhile, you've "lopped" $10,000 off your income for the year, decreasing the amount of income tax you personally owe.
7) Take full advantage of the income tax deductions available to home-based businesses. Do you operate your business out of your home? If not, what's stopping you? While not every business is suitable for a home-based business, home-based businesses do have advantages when it comes to income tax. Besides the Business Use-Of-Home Deduction, home-based business owners can deduct a portion of many home-related expenses, such as heat, electricity, home maintenance, cleaning materials and home insurance. If you own your home, you can also deduct portions of your property tax and mortgage interest.
8) Incorporate your business? One reason many sole proprietors and partners incorporate their businesses is because of the tax advantages of incorporation. The best known of these tax advantages is the Small Business Tax Deduction, whereby the income of qualifying Canadian-held corporations is taxed at a special "reduced" rate. For Canadian-controlled private corporations claiming the the small business deduction, the corporate net tax rate is 11% as of January 1, 2008. For other types of corporations, the corporate net tax rate is 19.5% as of January 1, 2008. However, incorporating your business as a tax strategy will only be effective if your business has grown enough for incorporation to be worthwhile. You not only have to have a significant income already to offset the costs of incorporation, but need to be prepared to leave enough of your business earnings in the corporation to benefit from corporate tax deferral. For instance, if you operate an incorporated business and the corporation's profits in a given year are $60,000, but you take $60,000 from the corporation in salary, your $60,000 is then taxed just as your personal (T1) income would be now, making incorporation for this reason pointless.
Source: http://sbinfocanada.about.com/cs/taxinfo/a/taxstrategies.htm
By Susan Ward, About.com
Google AdSense and Blogs
If you have a blog, or are thinking about starting a blog, then you are definitely going to want to read this article. It’s all about how to line your pockets with money that’s just waiting to be made without working much harder than you already are.
No only are blogs the hottest thing on the ‘net right now, but they are custom-made for Google’s AdSense program. Why? It’s simple. Blogs represent constantly changing and fresh content to Google’s search engine spiders. Feeding fresh content to those little spiders is just like tossing raw meat to a tiger. They just gobble it up. The more pages of your blog that get indexed, the more traffic you get. And the more traffic you get, the more exposure your AdSense ads get. Are you beginning to see where I’m heading here?
It’s not just Google that loves new content, all of the major engines do. In fact, some web-savvy bloggers are testing Google ads on one page and Overture ads on the other. It doesn’t take too long to see which ads are doing the best when you have nearly side-by-side comparison statistics to look at. Just don’t make the mistake of putting Google and Overture ads on the same page together. While they won’t kill each other like a pair of Siamese fighting fish in the same bowel will, you will be violating both sites’ Terms of Service, and it isn’t worth killing the goose (geese) that laid the golden egg.
It’s a snap to set up Google AdSense ads on your blog. Everything you need to know is right inside of the Google control panel. What’s not so easy is figuring out what ads are going to appear on each page. Since Google targets your key words, and your blog articles could possible wander towards any subject, you never know what you’re going to get.
Well, “never” is a strong word because there actually IS a way to pre-test your blog’s ads before you post your newest edition.
Here’s what you do:
• Write your blog article like you normally would
• Plug in your AdSense code and then post your newest page to a sub directory that’s not part of your blog.
• Click refresh a few times until Google wakes up and starts sending ads.
• If you don’t like what you see then fine-tune the article until you see the types of ads that you’re looking for.
With some ads paying as much as $5 per click or more, I’d certainly spend an extra 30 minutes or so tweaking my blog. That’s for sure. If you’re working hard to get your blog in front of visiting eyeballs, then it doesn’t make any sense at NOT to be using Google AdSense to draw every penny out of your site that’s possible. OK, that’s the end of the article. Now get busy tweaking your blog and checking your ads. You’ve got money waiting to be made!
About the author: Diane provides marketing and internet profit tips. For more Google AdSense tips, visit http://www.adsense.deeljeabiz.com/
Making Sense of Adsense
When you make your living online, you realize the need for multiple streams of income. One of the easiest and most lucrative ways to generate a secondary income, which also happens to be passive, is via Google’s Adsense program. I’m sure you’ve read the claims of a few individuals generating five figure monthly incomes from Adsense. For many of you, I’m sure you are wondering why you aren’t making this same income yourself. Well, wonder no more. If you follow my simple six step system, you will be well on your way to healthy Adsense profits within three months. Are you ready? It’s now time to pay attention.
Step 1 – Preparation. The key to making money with Adsense is all about numbers. BIG numbers! Sure, there are a few people making serious money with less than ten sites, but these are the exception. Your goal will be twenty-four sites in three months. That’s just TWO sites per week! In order to accomplish this, I recommend one of the many available page generation tools available today.
Step 2 – Determine Your Markets. In order to maximize Adsense income with only twenty-four sites, you must know which markets are paying well. To break this down even further, you need to know which keywords within those markets are paying the most.
Step 3 – Register you domains. Once you’ve identified and chosen your markets, you must register domains appropriate to those markets. For example, if your market is ‘Cabbage Patch Dolls’, a domain such as http://www.cabbage-patch-doll.com/ would be appropriate.
Step 4 – Create your site. Using your favorite page generation software and keyword list, it’s time to develop your site. There are several key points to bear in mind when you develop these specifically for Adsense.
1. Format – Always use the large 336x280 large rectangle.
2. Border – Match the same color as your background.
3. Background color - Border – Match the same color as your background.
4. Link = "0000CC"
5. Color_url = "999999"
6. Color_text = "333333"
7. Position – Far left or center and just above the page fold (Top 25% of site)
Step 5 – Verify and track your site Visit your site and make sure all links work and that the sites appear to your satisfaction. You should also check out the ads Google is displaying. Are they targeted to your primary high paying keyword? If not, recreate your site using your high paying keyword in a higher density throughout your site. Make sure you track your Adsense format, position, and traffic with a tracking system specifically designed for Adsense. Once you know your stats, you can adjust for maximum clickthroughs and higher revenues. Step 6 – Get your site listed in the search engines. This is simple… no tricks involved. Simply rent links to your site. A PR7 or PR8 link will do the job. While I’ve simplified the process here, you are now armed with enough information and resources to make some serious money with Adsense.
About the author:This article has been authored by Keith Baxter, the founder of http://www.topkeywordlists.com/If you want to maximize your Adsense income and learn how to drive massive amounts of traffic to your website from the search engines, visit the site now. Only 203 spots are available at the special low introductory rate.
Ways to Increase your Adsense Revenue
So what is Google Adsense and how can you use this program to earn a six-figure income? About two years ago, Google created this program to help websites to monetize their web-traffic. Here's how it works: Webmasters obtain a special code from Google which then displays targeted ads on their website. Whenever a visitor clicks on one of these ads, the webmaster earns a commission. Unlike other online businesses, there is no selling involved. All you need to do is get people to click on the ads. Although this is an excellent way to generate an income, many websites are not effectively maximizing their Adsense potential. As a result, they are leaving a lot of cash on the table.
The question is how can you increase your Adsense revenue without increasing the number of web visitors? The key to earning an income with Google Adsense is to have your ads match the rest of the site, making them look like part of your content. Your focus is to avoid having the Adsense blocks look like blatant advertisements. The following are six ways that you can do this and increase your revenue at the same time:
1) Find the right place - Most website visitors read content that is in the middle of a webpage. As a result, the best place to put your Adsense block is in the top part of the page, at the beginning of your web content. You want to weave the Google Ads into your web content to give the appearance that they are extra links which expand on the information of the page.
2) Use the Large Rectangle - With Google Adsense, you have the option of picking different ad formats. Most of the time people opt to use the Leaderboard (728x90) or Wide Skyscraper (160x600) style ads. Unfortunately, this is the wrong choice, because both look like blatant advertisements. Instead smart webmasters have found that using the Large Rectangle (336x280) yields the best amount of click-thrus.
3) Ditch the border - Many people experience a sharp increase in Adsense revenue when they changing their border. What they change is very simple…they get rid of the border on their Adsense blocks. This is another way to make the advertisements look like useful web content.
4) Adapt the font - Whenever you write content, it should be the same font size and style as your Google Adsense block. This will help make it appear that the advertisements are a natural part of your website.
5) Match the colors - In addition to changing the fonts, you also should match the colors of your website. For instance, if your content is written in black, and your hyperlinks are blue, then the Adsense blocks should also be the same color. Again, this helps the advertisements appear to be normal web content.
6) Don't have too many distractions - On a webpage, it is important to give web visitor a limited number of options. By having too many links and graphics, the web visitor might go to a section that doesn't help increase your profits. While it is important to inform and entertain your web visitor, it is also vital that you monetize your site. So if the main focus of your site is to earn an income through Google Adsense, then get rid of all non-essential links and graphics.
By taking the time to implement these six simple steps, you'll see a dramatic increase in the click-thru ratio of your ads. If added to all of the content of your site, your Adsense income will skyrocket!
Written by Scott J. Patterson. He earns over $12,000 a month, mostly through Google Adsense. To read about this and other home businesses you can try, download his free ebook, The Secret-Guide to Home Businesses: http://www.duncemoney.com/adsense.html
Google Adsense Strategies and Tips
If you are in a losing rather than winning in the affiliate program you are currently promoting, maybe it is about time to consider going into the Adsense marketing and start earning some real cash.
Google is readily providing well written and highly relevant ads that are closely chosen to match the content on your pages. You do not have to look for them yourselves as the search engine will be the doing the searching for you from other people’s source.
You also don't have to spend time in choosing different kind of ads for different pages. Google makes it very easy for you, with no codes to mess around for different affiliate programs.
You will be able to concentrate on providing good and quality content, as the search engines will be the ones finding the best ads in which to put your pages on.
You are still allowed to add Adsense ads even if you already have affiliate links on your site. It is prohibited, however, to imitate the look and feel of the Google ads for your affiliate links. One of the things you can do, however, is to utilize Google's custom palette to customize your Google ads, making them to appear a part of the web page itself. The idea here is to match background and links to match the theme of your site. People on the internet today are trained to click on a link that is blue, and if your Google ads have the same theme as your web page, it makes the Google ads appear to be a portion of your "content."
You can also filter up to 200 URLs. This gives you a chance to block ads for the sites that do not meet your guidelines, and also block competitors. Remember that it is unavoidable that Adsense may be competing for some space on web sites that all other revenues are sharing.
Owners of small sites are allowed to plug a bit of a code into their sites and instantly have relevant text ads that appeal to your visitors appear instantly on your pages. If you own many sites, you only need to apply once. Then ,you are issued a unique "publisher ID", which can be used on any site you currently own. A small snippet of Javascript is placed on your site in the location you wish the ads to appear in, and generally speaking, the ads from Goggle will appear in minutes. This ends the hassle of having to apply to many affiliate programs, and keeping track of many different URL's and user ID's and passwords.
As Google ads are very easy to customize, and can be placed anywhere on your site you wish, you can experiment with placement, colors, and themes. Many tricks are available to the resourceful webmaster, including adding images in conjunction with your Google ads to make them more noticeable.
The payment rates can vary extremely. The payment you will be receiving per click depends on how much advertisers are paying per click to advertise with the use of the AdWords. Advertisers can pay as little as 5 cents and as high as $10-12, sometimes even more than that too. Some savvy lawyers are currently paying as high as $75 for advertising the keyword mesothelioma! And you, as the ad publisher, are earning a share of that money generated.
If your results remain stagnant, it can help if you try and build simple and uncluttered pages so that the ads can catch the visitor’s eyes more. It sometimes pay to differ from the usual things that people are doing already. Google has many tutorials, including a "heat chart" which shows you where the best placement for ads are. You will need an account to access these tutorials. Sign up for an Adsense account at https://www.google.com/adsense/?sourceid=aso&subid=ww-et-awhome&hl=en_US. It is also a refreshing sight for your visitor once they see something different for a change.
It is still wise to look at other people’s information and format your Adsense in a like manner. A wise old business axiom is to "find a good business model, then copy it." Let others do the hard work for you, and learn from a successful site. Just think about it as doing yourself a favor by not having to work too hard to know what content to have. Look to sites that have high page rank, and carefully observe their layouts, their content, and placement of their ads. A little time spent doing research can put dollars in your pocket down the road.
Publishers have the option of choosing to have their ads displayed only on a certain site or sites. You can also have them displayed on a large network of sites if you so desire. Google now has the option to allow other people to advertise on your site. This only makes good sense. If you are marketing to a tightly defined niche, you can place your own ads, written by you, on site that allow this option. The choice is yours, depending on what you think will work best to your advantage.
It is important to note that you cannot choose certain topics only. If you do this, search engines will not place Adsense ads on your site and you will be missing out a great opportunity in making hundreds and even thousands of dollars cash.
Topics to be avoided includes gambling, firearms, ammunition, tobacco or drugs. If you are being offered more cash in exchange of doing Adsense with these kinds, it is just like signing your own termination paper.
With all the information that people need in your hands already, all you have to do is turn Google Adsense into your own cash cow. It all boils down to a win-win situation both for the content site owners and the webmasters or publishers.
Our website, http://www.for-the-record.biz, is a good source of information for the beginning marketer. We present a lot of content for those needing more information on a variety of subjects.
by: Alder Smith, as found on http://www.adsenseprimer.com/
Saturday, April 18, 2009
How Google Detects Google Adsense Invalid Clicks
IP Address
If the AdSense click is originated from the same IP Address as the one used for accessing your AdSense account, your account is flagged.
Cookies
Most home users do not use static IP Address for Internet connection. In most cases just disconnect and reconnect will give you a new IP Address. But don’t forget, Google has set cookies on your computer.
Other Google Services
Thinking that you are safe just because you do not access your AdSense account? Think again. This time, consider these: GMail, Google Earth, Google Calendar, Google Search, Google Toolbar, Google Talk, Google Sitemap, Google Desktop, Blogger, and so on, and so on. With the wide range of services they provide, Google can trace the originator of most (or probably almost all) clicks.
Click Pattern 1
Oh, why this computer / IP address / person is so trigger-click-happy on this particular website but never click on the ads on other sites?
Click Pattern 2
And why is it that people accessing these sites direct (type-in URL or from bookmark) tend to be very active ad-clickers compared with those referred from search engine or other sites?
Click Pattern 3
And why the ad-clickers like to hit and run, compared with non ad-clickers that surf a few pages before leaving?
Click-Through-Rate (CTR)
Your CTR may range from 0.5% to 10%, but if it exceeds a certain point (probably around 10%), you are flagged.
Geo-Location
Used Urchin (Google Analytics) before? Then you should know that Google can trace traffics origin down to the small town. Different IP doesn’t mean much. Unless you site is really targetted to one small geo-point, a high number of clicks from nearby location will get you banned quickly.
Hardware address?
MAC address of the LAN card, modem, and router works almost like a fingerprint. I’m not sure if Google can track this, but probably they do. They have rocket scientist, remember?
Advertisers conversion rateAd click is one thing. But does it bring value to the advertisers? If none of the clicks on your site translate to conversion to the advertiser, you are in trouble. First the Smart-Pricing hits, then your AdSense account disabled.
Search Engine Ranking
Your website is not indexed on any search engine, not linked by any prominent website, but get consistently high traffic? That sounds like something is in play. Regardless of whether it is an adware-embedded software, spam, trojan clickbot, or intentionally installed click-exchange network, it doesn’t sound right.
Webpage design
How about the “click here” or “support us”? Google has the best search engine in the world. Is it really that hard to find those words?
Combo
Each of these detection methods might seem rather weak. But combine them together, and not many click-fraud can pass-through these filters. Even the smartest clickbot will have a hard time.
In short, it is almost impossible to cheat AdSense in the long term. Instead of spending time, money, and effort trying to outsmart Google, try these tips to improve your AdSense earning.
Disclaimer : I’m not working for Google nor in anyway know anyone inside Google. Google might or might not use these methods to detect click-fraud. I’d believe that they have much better detection mechanisms.
Source: http://www.cheatad.com/2006/06/14/how-google-detects-adsense-invalid-clicks/