Tax benefits for home Business
Did you know that 30-40% of you income goes to taxes?
Your #1 expense in life is TAXES! More than living expense, transportation, health care, groceries and meals combined!
By not having a Home Based Business it costs you on average $20 per day!
Over the last few years Congress has passed dozens of deductions to help stimulate Home Based Businesses! Tax breaks so big that almost anyone can slash their Taxes by $3000.00! Most $4000- $6000.00!
Why has Congress done this? So you can cover the cost of your Home Based Business! It’s good for the American Economy!
Not only can you receive a huge refund at the end of the year, but you are entitled to receive your refund every month. So if you have a $6000 dollar refund, you can access 1/12th of it every month! That means you can get $500 per month refund so you can run your business. The Government WANTS you to succeed!
What can you write off?
Real estate taxes, Mortgage interest, Rent , utilities, Car expenses, office supplies, furniture, equipment, software subscriptions, Travel and 50% of all meals, Retirement Contributions, internet , cell phone, Child Care. You can hire your children 6-17 years old.
Home Office has to be exclusively business! You can write of the percentage of square footage of your house.
Example- Home 1000 sq. ft., office 100 sq.ft. you can deduct 10% of all house hold expenses!
These are all expenses you pay now daily. But because of a Home Based Business you can now LEGALLY write these off as business deduction!
WHAT IS REQUIRED?
- 3 hours a week of work
- Intent to make a profit. NOT MAKE A PROFIT. You just need to show intent.
3. Keep accurate records
$50000 per year salary
30% Taxes= $15000
With Deductions 7% to 10% Tax savings = $3500- $5000!
Cost of a Home Based Business-
Cost of business=$400
Transfer buy= $100 per month = $1200(50bv 10ibv) this is a tax deduction
10 Business Presentations = $50
5 Trainings = $75
3 local seminars = $90
1 Major Convention = $1000
So $3500 dollar tax savings, $2815 is the cost of the business in your first year. A difference of $685 tax savings AFTER the cost of doing business for ONE YEAR!
By the way that’s being conservative!
Find out more from:
The IRS 800 number