With
a Home-Based Business YOU can SLASH your TAXES by $300 to $600
per Month, STARTING THIS PAYDAY!
These are NOT “loopholes,” “tax
dodges,” or “tax
avoidance schemes.” They’re honest,
ethical, legal 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 the deductions from the IRS Website
The
Tax Advantages of the
Home-based Business
Like it
or not, there are 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 climate that greatly favors the home business.
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!
That
$6,000 - $12,000 in tax money is theirs when they own a home business— even
if they don't show a profit!
You're
going to learn how to 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 costs that have to do with your home.
The best
part about the business-owner tax system is that the money can start
coming to you NOW, not in April when you do your taxes. The government "gives" you
the money to get your business up and running! And you never have
to give it back because it's
your money! Use it any way you want. And that's
in addition to the money your business will generate!
Only
business owners can partake of the better tax system and
we'll help you get yours established so you can start profiting
immediately.
The tax laws are
there to help you! Don't throw your money away because you are in
the wrong tax system and don't apply the laws. Virtually every small
business owner pays too much in taxes simply because
they don't know the laws.
If you don't have
a home business... or if you do and don't take advantage of these
laws... envision yourself getting up every morning and flushing a
brand new 20-dollar bill down the toilet, because that's what you're
doing!
So let's see how
to get you into the better tax system-- the one that's less taxing:
|
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 to claim
huge home office related tax breaks. 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.
These laws
are specific to home based
|
| businesses and
were created to stimulate the growth of the economy. They're
good for our country and the free enterprise system on which
our economy is based. Every big company knows the tax laws that
pertain to their business? And you need to know yours! |
These
are MAJOR
Tax Advantages
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. That means thousands of dollars in tax savings year
after year, for as long as the business is actively run with a profit intent.
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
get Uncle Sam to pay for the startup costs of your business, a new
computer, etc. What really gets me is when people ask, "How much
does it cost to get started?" But they don't think about the $3,500-
$7,000 they are losing each and every year they wait before getting
started!
And you don't wait
to get this money! If you currently have a job and have taxes withheld
from your paycheck, you will notice a $70 to $200 increase in your
paycheck each week... just because you start a home based business
and intend to make a profit! This is the tax law regarding home based
businesses!
Here's
how to QUALIFY For them
The IRS is very specific about the requirements for qualifying for small/home
based business deductions. The most important are that you run your business
with the intent to make a profit, (Note:
Look closely at the wording. 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.)
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 costs (yes, RENT can be deductible), heating,
air conditioning, electricity, natural gas, oil, water, sewer, trash collection,
house cleaning, exterior painting, security alarms, and more-- Things you
are already paying for whether you have a business in your home or not!
How
can that put cash in my pocket?
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. So what does that mean?
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 after-tax 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/mo. 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!
Additionally, all
the costs of starting the 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.
Never
pay for
gasoline again!
The law regarding the business use of your vehicle can save you thousands of
dollars a year in taxes--only if you have a home-based business! For example,
the law states that you will receive a forty and a half cent deduction for
every mile you drive that's business use. So if you get twenty miles per gallon,
you get $8.10 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
people in home-based businesses can honestly and 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
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 per day 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!
How
can 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'
| If you don't
have a home-based business, or if you do and aren't claiming
these deductions, you are likely overpaying your taxes by THOUSANDS
each and every year! |
To
Qualify for these Tax Deductions, you must:
- Demonstrate
that you intend to make a Profit
- Work
your business on a Regular and Consistent basis.
- Run
your small business like any other 'real' business.
- Record
all of your Income, Expenses, and Business Activity.
All
the requirements are detailed in the book referenced below.
This book comes from an outside vender and is not a part of LifesMiracle
or LMSuccess
Click on the book for more information and go to the"Products & Services" tab.You
can also purchase
Tri-fold
NWM
Tax Advantage Brochures there to give out when you give out samples!
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 (which this
book shows you) you can claim up to thousands in
new tax deductions. "Home
Business Tax Savings Made Easy", is
a step-by-step, easy-to-use guide that walks you through each deduction,
the requirements for qualifying, and the records you'll need to
keep. The book documents the Congressional Law, the IRS
Regulation, or the Tax Court Ruling authorizing each one. This
is MUST HAVE if you're serious about reducing
your taxes to the legal minimum.
Of
course, the purchase is tax-deductible!
Next
tour stop: Business
Action Plan> |