Unlock the gold mine working from home
Business ownership is one of the biggest tax strategies used by the wealthy to minimize their tax burden, and being in home based business is the last great tax reduction opportunity.
Taxes are the largest expenses for most people. It exceeds what they pay for food, clothing, lodging and transportation combined. The government taxes when you earn it, taxes you when you save it, taxes you when you invest it, taxes you when you spend it and, when you die, they tax what's left over. What did they leave out?
The truth about legal tax reduction
The truth is that there are two tax systems in the country. One is for employees and the other for self-employed people like home-based business owners. Understand the significant difference and you may be one step closer to financial freedom.
Tax system for employees (who work and earn a pay check) - who don't know the rules, is designed to take away their wealth:
An Employee EARNS , Then PAYS Taxes, And LIVES on what is left.
Tax System for self-employed - who know the rules, is designed to create wealth and economic growth.
A self-employed EARNS , Then DEDUCTS his legal business expenses, And then PAYS TAXES on anything that's left.
A home based business means incredible tax savings for you!
Could you use $3000 to $10000 each & every year through Tax Savings?
Anyone who's earning an average pay check can keep an extra $3000 to $10000 per year simply by owning and operating a home-based business part-time. Not only do you get the same deductions as large Corporations like Microsoft, Wal-Mart, etc but you also get more. You get to write off the business use of your home and car, health care costs, even travel expenses!
Sandy C. Botkin is a former IRS Attorney and Certified Public Accountant & Chief Executive Officer and Principal Lecturer of the Tax Reduction Institute based in the Washington, DC area, also the author of best selling book ‘Lower Your Taxes Big Time'. Chapter 1: 'Why Would You Be Brain Dead Not To Start A Home-based Business (If You Don't Have One)
According to Sandy, if you are self-employed and live in the United States or Canada, you can probably reduce your taxes with a small business run with an honest expectation of profit, and where your expenses are ordinary, necessary, and reasonable for that business. It's that simple.
Here's an example: If you earn $40000 per year at your job, there could be $10000 of it that you're already spending to maintain your household and lifestyle. With an ownership of a home based business, that money could be converted into legitimate business expenses. That means now you only pay taxes on what's left over, that's $30000. In other words, that $10000 is the money that you're already spending, but is now being converted into tax deductible dollars. With a couple of assumptions that: 1) you're running your business with an honest expectation of profit, which means you're really trying to make money. 2) And whenever expenses you take are reasonable, ordinary and necessary for that purpose. Of course if your documentation is correct, even if you didn't make any money, you would still shelter some of your income.
The point is these are not new expenses. They already exist in your life. They are things you pay for every day, every week, every month, year after year! By having a home-based business, you can convert much of your non-deductible personal expenses into legitimate business deductions and reduce your taxes by $300 to $600 per month, immediately! You could use it to invest in your kid's college education, take your family on a vacation, put a down payment on a new car, or just have extra money!
Potential Tax Savings
These are some of the various deductions that may be available to you as a home-based business owner:
• Part of your home used for business • Utilities, security system, • Long distance & cell phone charges, Internet • Car, fuel, repairs & maintenance • Meals & entertainment • Computer, printer, scanner, TV, DVD player etc. • Accounting & Professional Fees |
• Seminars & conventions, • Training material • Employ your spouse and children • Gifts & donations • Your vacations when combined with the appropriate amount of business • Advertising cost, Office Supplies, |
The possibilities for deductions are plenty |
|
To qualify for these benefits
Work your business 4 to 5 hours a week,
With a Reasonable expectation of profit,
Maintain proper documentation for all your business activities.
Documentation is the key to demonstrate that you're operating the business like a business and not a hobby.
You have 2 choices: (1) Spend 2 to 3 minutes a day to do a little book work, keeping thousands of dollars you've already earned. Or (2) Spend 2 hours a day and re-earn the same amount and pay taxes again on top of it. The choice is yours, which one would you pick?
The bottom line is you can never be rich unless you get your tax affairs down to the legal minimum.
Click on the images below and listen to Sandy Botkin:
What it takes to become rich |
Tax Strategies to lower your taxes legally |
|
 |
Must Read Articles & Tips by Sandy Botkin
If You Don't Have a Home-Based Business, Start One Today! Click here...
Make Your Castle Into A Tax Deductible Gold Mine. Click here..
Tax Cures For The Summertime Blues. Click here...
This information is put together only as a guide and not as a tax planning authority. Consult a professional tax advisor before claiming tax deductions for any of your business ventures. There are provisions, rules for documentation, and some limitations on what you are legally able to claim.