Did you
know that your Uncle Sam will actually pay you to start a home based
business? That's right, Congress has approved over 100 tax benefits
that are available ONLY to home based business owners. These
deductions, found in the Federal Tax Code, are 100% legal and 100%
audit proof.
Before we
look at a few of these deductions and how much money they can put in
your pocket, let's look at how much is actually left out of your
paycheck. While you know it is not as much as you would like, do you
realize how much of your income goes to taxes? When you add up
federal, state, country, gas, property, social security,
unemployment, etc. the total comes to about 45%. By the time you pay
your monthly housing, healthcare, food and transportation costs, you
are left without about 20% to pay all others expenses and to enjoy
life.
Not a
pretty picture. Fortunately, you can change that picture with a home
based business. Aside from the money you will make with a home based
business, here are 5 significant tax breaks that can put
$300-$500/month in your pocket.
1. Home
Office Deduction (Renters too; includes % for utilities, maintenance,
ins.)
2.
Business Use of Personal Vehicle ($1 for every 2 miles plus more)
3. Hire
your children (even as young as 6; big tax savings)
4.
Healthcare Costs (100% of out-of-pocket costs)
5.
Business Travel & Entertainment
The good
news is that there are only two qualifiers to be able to take
advantages of the above deductions as well as over 100 others. Here's
what they are:
1. Operate
your business on a regular and consistent basis (the tax courts have
defined this as 3-4 hours a week)
2. Have an
intent to make a profit.
To learn
more about the tax savings available to home based business owners,
click on Resources on the right hand side of the page and watch the 5
minute video by Dr. Ron Mueller, Home Business Tax Law Expert. And,
of course, contact me so I can give you further details.
Does
saving $5,000 a year or more on your taxes appeal to you?
Photo by brianjmatis
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