Another Professional View on "Tax Benefits"

The below article was written by Keven Wilke, Professional Home Business Builder......Here is his perspective on "Why and How You Benefit" With Your Taxes Through Building A Home Business.

Have you ever heard the expression, The only certainties in life are death and...
>>> TAXES! <<<
Nobody likes the subject of taxes (except for a few of the more masochistic tax preparers out there). Just thinking about the subject is enough to put most of us in a foul mood.

But it doesn't have to be that way...

As an Internet entrepreneur, you have lots of legitimate tax deductions that can help you reduce your tax bill this year. With a little bit of preparation, and the right tools, even the chore of tax preparation can be made tolerable (if not outright easy).

"Why does Uncle Sam give Internet business owners a huge advantage over regular employees, offering the business owner savings of $3,850 over the employee, even though they both make $30,000 a year?"

By Kevin Wilke

Did you know you could save thousands of dollars each year (yes $1000's) in taxes by having your own home-based business?
Now, I am not a CPA, however I do know how to crunch numbers... Plus, I have my own home-based business that has been saving me $1000's each year in taxes.

So... I know a little about how to save some money in paying taxes, but, again, like always, consult your accountant.
Let me give you a example so you can see how lucrative this can really be for you.

(Note: This is just an example based on US tax law and does not imply this will be the same in your case, savings could be greater or less then this example - the normal legal mumbo jumbo.)

If you are an employee working for somebody else, let's take a look at your basic tax return:
Revenue: $30,000Deductions: $ 0Adjusted Gross Income: $30,000Federal Income Tax: $ 2,800Social Security Tax: $ 2,250TOTAL TAXES PAID: $ 5,050

OK, pretty simple. You work 9 to 5 (plus 2 more hours a night to please the boss), you make $30,000 and right off the top Uncle Sam (or your country's government) takes $5000 and don't even say thanks.

Now, let's see what it might look like now that you own a home-based business, and start taking advantage of every perfectly legal tax deduction the government offers you....
(This is with the same expenses and income as above - we are comparing apples to apples.)
Revenue: $30,000Deductions:- Business Trips $ 2,000- Child's Payroll $ 4,000- Automobile $ 4,000- Home Office $ 3,000- Entertainment $ 2,000- Business Assets $ 7,000Adjusted Gross Income: $ 8,000Federal Income Tax: $ 0Social Security Tax: $ 1,200TOTAL TAXES PAID: $ 1,200

Let's compare the two...
As an employee your total taxes paid were - $5,050. As a home-business owner your taxes paid were - $1200; As a home-business owner you saved $3850 in taxes annually just for owning your own home business (and your expenses were the same!)
That is like the government giving you almost $4000 every year, just because you started and own a home-based business.

So, exactly how does this work?
As a Home-Business Owner you are offered the following Tax Advantages:
Business Trips (vacations): Do you ever take a vacation (or would like to but can't afford to?) By owning your own business you can now deduct that as a business expense. It is easy as long as business is conducted while on that trip.

Child Payroll: You can pay your children up to $4,100 (This amount has gone up, since this article was written.) per child for working in your home-business. Do you pay your children currently, give them spending money or save money for their college education? Now you can do the exact same thing but deduct it as a tax expense by having your children help out in the business.

Automobile Expense: You can deduct around 30 cents (this too has gone up since this article was written.) for every mile you drive that is business related and a portion of all car expenses. Imagine that, taking an expense you already have and turning it into a tax write off.

Home Office: Since this business is done out of your home, you can deduct a portion of your rent or mortgage as a business expense, plus other home expenses like electricity, water, sewage, etc...

Entertainment: 50% of all business entertainment expenses can be deducted. Do you go out to eat? Well, talk about business and deduct that meal.

Home Office Equipment: Do you have a computer? A phone, fax, desk??? Did you deduct those on your tax return? By owning your own business you can.

This is just a brief overview of how you can deduct your normal, everyday expenses you already incur as business expenses and make a huge windfall in tax savings. Whatever you do...
Stop overpaying Uncle Sam!!

The above article was the authors opinion, make sure you consult with a tax expert before you take any deductions. I personally suggest the following affiliate site, he talks in language we all can understand. Provides tools which are easy to use.

www.WhatAreHomeBusinessBenefits.com

Need an introduction to the program you are already working, which will help you explain "Why" everyone needs a Home Business?

www.StartandNeverQuit.com