Are you looking for a personal tax shelter? One of the top reasons why you should get into a home based business now (today even) is the ability to have additional deductions (and therefore additional tax savings) when tax time rolls around. Whether you still have a job or you are one of the millions who have lost their job this year and are living off a severance package or unemployment, this is the time to invest in a home business. A home based business can be your personal tax shelter because of the major tax benefits and tax deductions that are provided to you as a business owner and employer.
So let’s say you are married with no children, gainfully employed with an excellent annual household income, and live in an apartment or other rental property – where do you find deductions? You don’t have interest income on a home, you don’t have a child care or standard deduction for kids, you haven’t invested much because – well just because; so how can you lower your tax debt and maybe even get a refund check to spend come April 15th? You’re in need of a personal tax shelter and a home based business is one of the best.
What if you’ve stayed home to raise the kids, but with the state of the economy and all, your spouse’s check just doesn’t cover everything like it used to. Frankly, if you have been thinking about going back to work to help your spouse out with the bills, or taking a second job to supplement your income, then you need to know that you would be foolish not to consider a home based business instead – not just for the tax break that it would provide, but for the increased quality of life for you and your family. You stayed home for a reason, if you go back to work (assuming that there is work available for you) that all goes out the window, and you now have to cover lunch, day care or after school care, suitable work clothes, and transportation. A home based business can provide the necessary extra income as well as a sense of accomplishment for you, and also protect the family at tax time in a way that a job would not.
As a home based business owner you can deduct:
- your house (including home improvements) – keep records of interest paid on your mortgage, any improvements done to the home, and copies of all utility bills
- your spouse and children (hire them to help with your business)
- your car (put a magnet on it advertising your business and every time you drive it you are officially doing business with it)- again maintain good documents (gas receipts, a mileage log, maintenance log and receipts) about your business activities,
- your vacations (drop some business cards at Disney World, talk to prospects on the road, leave promotional material at rest stops and convenience stores) – receipts, mileage log, records of who you spoke to
- meals with colleagues (even if the colleagues live in your house!) – record these events (who was there, what was discussed) and keep receipts
- business losses
- your electric, gas, phone, cell phone, and internet bills
- any computer equipment used to conduct business including printers, routers, laptops etc.
- pens, pencils, paper, business cards, postcards, flyers, trade show costs
- any costs of doing business such as start up fees and monthly fees paid to your network marketing company
Do you see how this could add up to thousands of dollars in tax savings and refunds? A small one-time and monthly investment in a home based business can provide you with your own personal tax shelter.
For more tax saving tips and how-to’s pick up a copy of Sandy Botkin’s “Lower Your Taxes Big Time!”, it will be money well spent. If you are interested in a home based business opportunity go to http://www.deniseleeporter.com/request.