The Home -Based Business Tax Advantage - Are You Using It?
I've been in the network marketing/home-based business arena for almost 20 years. But also, I've owned and operated my own income tax service even longer.
Since income tax season is upon us I feel it appropriate to share a question I'm asked every year. Frank, "What can I do to save paying so much in taxes?" And I shake my head and respond the same way every year with "Start a home-based business!"
So I'm going to throw out a question to you where the answer is going to be pretty obvious. What is the largest expense the average American will pay until they leave this earth?
It's not their houses, not their cars, not food or clothes.
Drum roll please....
Did you know you'll pay:
- Federal income tax
- State tax
- Local Income taxes
- Self-Employment Taxes
- Payroll taxes (FICA)
- Medicare taxes
- Social Security Taxes
- Sales tax,
- Property taxes
- Marriage License Taxes
- Telephone State And Local Taxes (Still have a landline phone?)
- Telephone 911 Service Taxes
- Excise taxes (gas)
- Tobacco tax (cigarettes)
- Alcohol tax
- User taxes (hotel, rental cars, toll roads)
- Insurance premium taxes
- Vehicle registration taxes
- Drivers license Fees (another form of taxation)
- School taxes
- Dog license taxes
- Recreational Vehicle Taxes
And there are about 100 more, but you get the idea right? The average person you work with, are friends with and maybe some of your own family members HAVE NO IDEA what you just learned here. But here's the thing.
What can they do about lessening the amount of taxes they'll pay?
Offer to help them start a home-based business! YOUR BUSINESS!
Did you know this is the single biggest tax advantage for the average American tax payer? But there is absolutely nothing taught about the home-based business tax advantage in CPA (Certified Public Accountant) schools? And there's not one single question about it on the CPA exam!
Incredible isn't it?
This is why when you take your home-based biz income tax information with your proper documentation to a CPA, they look at you like you were just released from the "funny farm."
Once you start to leverage what is known as the home-based business tax advantage, where you're able to save yourself between $5000-$10,000 a year in taxes, you would then have the knowledge to show your friends how they can give themselves a raise in their weekly or bi-weekly paychecks. But they must have a home-based business to do it.
Did you know thousands of Americans could have saved themselves from filing personal bankruptcy last year by having just an extra $250-$400 a month in their paychecks? And you have the answer for people like this who are contemplating bankruptcy as you read this.
Let me share an example for you as to how you can use the home-based business tax advantage. Did you know you could deduct up to $5200 a year on your taxes just by employing your kids in your business?
Here's what you could do. Say you have two young children under the age of 17. You could open up two separate savings accounts for each of them. Then have your children do menial tasks in helping you with your business every week. Assign them an allowance (wages) of say $54 bucks a week a piece, but instead of giving it to them to "blow" every week, you deposit it into their savings accounts. At the end of the year, you would have deposited about $5200 for both. That kills "Two birds with One Stone". You have a college fund now established for both of them, plus you get to write it off, "a hefty $5200" on your income taxes, thus lowering your tax bite and a bigger refund for you!
And please remember, you need to meet two requirements to take advantage of the home-based business tax advantage...
1. You Must Have an Intent To Make a Profit
2. You must have documented proof that you have intent to make a profit.
Need help with the documentation? I've used several programs myself. One I recommend is here at ==> http://www.nfstax.com
I'm not an affiliate or anything so I'm receiving no compensation for referring you there.
So if you haven't already, start taking advantage of the home-based business tax advantage and lessen the amount of money coming out of your household due to Uncle Sam. Start doing so today. Now is the perfect time to get started.