Home Business Tax Savings
  Tax Advantages Available Only to Home Business Owners!

With a LifesMiracle Home-Based Business you can reduce your taxes $300 to $600 per Month starting this week! These are tax breaks authorized by Congress for owners of Home Based Businesses, published in the IRS code and approved by the federal tax court.

View the income tax form used to claim these deductions from the IRS Website

Watch this 5 minute video from Ron Mueller-- CEO of Home Business Tax Savings to see how:

There are actually two tax systems in the US; one for employees and a much better one for the business owner. And changes in the tax laws have created a situation that greatly favors home businesses.

And for procrastinators: the bad news is they're losing $500-$1000 of THEIR money every month they wait to start their home based business. And that's actual cash in their pockets, not deductions!

You can take things you are already paying for and legally turn them into tax deductions— things like heat, electricity, rent, mileage on your automobile, vacations, computers, printers, ink and virtually any and all costs that have to do with your home.

The best part about it is that you get the money NOW, not in April when you do your taxes. The purpose of the tax breaks is to get your business up and running! And you never have to give it back because it's your money! It's UP TO YOU how you use it.

That's in addition to the money your business generates!

The tax laws are there to help you! Don't throw your money away because you don't apply the laws. Virtually every small business owner pays too much in taxes simply because they don't apply existing tax breaks!

Congress has told the IRS: Give thousands in tax refunds to all small businesses including part time home based businesses and Don't make them wait until April 15th

To start with, your business must be based in your home. This means, either you render the primary value of your business there; the administrative functions of running your business are performed there; or on a regular basis you meet with your customers and business associates there.

Simple qualifications
When the average entrepreneur understands what these tax breaks are, how easy it is to qualify for them, and how simple the record keeping is, the new deductions will usually slash their taxes dramatically, sometimes up to 50 percent or more. Average tax savings range from $3,500 - $7,000 with some people in the higher tax brackets saving over $12,000 per year.

This is how you can pay for: the startup costs of your business, a new computer, etc. When people ask you, "How much does it cost to get started?", they're not thinking about the $3,500- $7,000 they are losing each and every year they wait before getting started!

People who are working and have taxes withheld from your paycheck, will generally notice a $70 - $200 increase in their paycheck each week... just because they started a home based business with the intent to make a profit!

The IRS is very specific about the requirements for qualifying for small/home based business deductions. Primarily, you must have the intent to make a profit. Note: You don't have to make a profit to take the deductions, just be working toward making a profit) and secondly, work your business on a regular and consistent basis (I.E., an hour a day, four or five days a week, etc.)

Convert Money You're Already Spending into Tax Deductible Business Expenses
If you use a portion of your home "exclusively and regularly" for business purposes, then a portion of your personal overhead expenses become deductible in proportion to the business-use vs. personal-use of total space. Overhead expenses include mortgage or rent, heating, air conditioning, electricity, natural gas, oil, water, sewer, trash collection, house cleaning, exterior painting, security alarms, and more-- Things you're already paying for whether you have a business in your home or not!

You're giving yourself a pay raise! These are expenses you're already paying for, but without a home business you are paying for them in after-tax dollars.

For example, just say your total home expenses are $1000 per month, and say various taxes are eating up 40% of your gross pay (and that's conservative!), you'd have to earn almost $1700 in wages in order to have $1000 left to cover expenses such as these.

But when 20% of your home is qualified as "business use" for example, then $200 of that $1000 could be paid for dollar-for-dollar, which would earn you about $150 per month. That's not theory, that's $150 extra cash in your pocket ! That's just one item and that's every single month, and that's before your business even makes one cent profit, and before you have one customer!

All the costs of running your business-- promotional materials, product samples, meeting attendance, internet access fees, cellular phones, fax lines, Palm Pilots, leads list, web site hosting fees, 800-numbers, printing costs, briefcases, business cards, home office furnishings, computers, printers, etc. -- all 100% deductible if they are used 100% for business. The rule of thumb is this: virtually any expense you would not have incurred if you didn't have a business is deductible.

Business use of your vehicle!
The law regarding the business use of your vehicle can save you thousands of dollars a year in taxes! The 2010 tax laws state that you will receive a fifty cent deduction for every mile you drive that's business use. So if you get twenty miles per gallon, you get $10.00 of tax deductions for every gallon of gas you buy. And as the gas prices go up so do your allowances. You will never pay for gas again!

If you don't take advantage of the "business use of your vehicle" tax laws, it's like taking a dollar bill and throwing it out your window every two and a half miles as you drive!

Some home business owners can legitimately claim more than 90% of their vehicle mileage as business use. A 90-day log showing Date, Destination, Primary Purpose of Trip, and starting/ending Odometer readings is the key to the deduction. Notice that only the Primary purpose of each trip needs to be recorded. If you make a trip to the mall to have business flyers printed, and while you are there you also do some personal shopping, the mileage is totally deductible IF the Primary purpose of the trip was Business -- and that's based on the word of the taxpayer.

Vacations can be deductible
Well, not exactly. But if you know the rules, you can combine business with pleasure and deduct:

• 100% of your travel costs,
• 100% of hotel charges,
• 100% of ground transportation
• 100% of tips and gratuities
• and 50% of your meals -- all count as Business Expenses.

This is true even if most of your time is spent 'playing' and sight-seeing with your family! The Rule: More than half of your days away have to count as "business days." So, what's a "Business Day?" Travel days usually count as business days (that's 2 days per trip, right there!) days attending pre-scheduled meetings no matter how short the meeting lasts!) count, weekends sandwiched between business days count for business, 4 hours at a seminar count as a business day. See what advance planning can do?

Even my children's allowance?
If you have a child (or children) at least 7 years old and under 18, and employ him/her in your home-based business, (a) they are not subject to child labor laws, (b) no payroll withholding is required, c) the cost is 100% deductible as a business expense, and (d) the income is 100% tax-free to the child!

ALL medical costs be business deductions
The average taxpayer can deduct only medical expenses exceeding 7.5% of their adjusted gross income. So most taxpayers can't deduct anything. Except the small business owner! If you're married and employ your spouse in your business, you can give your spouse as an Employee Benefit reimbursement for all health related costs not covered under any other insurance plan -- for the spouse/employee and his/her immediate family, which includes you and your children! That covers deductibles, co-pays, non-covered expenses, and even non-prescription drugs.

Here's the 'Bottom Line'

To Qualify for these Tax Deductions, you must:

1. Demonstrate that you intend to make a Profit
2. Work your business on a Regular and Consistent basis.
3. Run your small business like any other 'real' business.
4. Record all of your Income, Expenses, and Business Activity.

The tax deductions summarized here are 100% legal and ethical, but you must keep very specific records in order to audit-proof your tax return. When you understand small-business tax law you can claim up to thousands in new tax deductions.

Understanding home business tax deductions is important if you're serious about reducing your taxes to the legal minimum. Listen to the following audio from our Thursday Business Builders's call to learn more:

Aug 26, 2010 LifesMiracle CEO and guest Ron Mueller, CEO of HomeBusinessTaxSavings.com talk about the tax advantages available to those working their LifesMiracle businesses.This is one of the most important calls for those serious about making money with LifesMiracle! With host Mary Harms.

We have partnered together with Ron Mueller of HomeBusinessTaxSavings.com to give you all the information you need to make your business a success, including taking advantage of the tax deductions given to the home business owner.

The information on this page is not legal or tax advice. Be sure to check with a tax advisor who understands home business tax laws.