Convert Before It's Too Late
I'm not talking about a religious conversion here, but about converting ordinary, everyday expenses to business expenses for savings on your income taxes.
The surest way to reduce your taxes is to convert personal expenditures into allowable deductions.
A network marketing or other type of home-based business allows you to convert a portion of your everyday expenses to legitimate business deductions. Network marketing is a great home based business that takes little investment to get going.
With the specter of rising taxes and food prices don't let another year slip by without taking advantage of the benefits of having your own home business.
Inflation is expected to hit food hard this year, particularly meat, many fruits, veggies, cereal, and dairy products.
Gasoline, heating oil, natural gas, and electricity costs are soaring.
Operating a home-based business is a useful and lawful way to reduce the income taxes you pay and retain more of your hard-earned income. Keeping more of your money is critically important to meet the rising cost of everyday living expenses.
This is no time to be paying more income tax than is required by law. Even if you can only save a few thousand dollars, it is foolish to ignore it.
(I am not an accountant nor am I giving you tax advice)
As a self-employed individual or business owner, you are allowed a laundry list of tax deductions. These are expenses that are necessary and relevant to your business. Here is a list of tax deductions to consider:
Computers, Software, and Supplies, Research Materials, Phone, Cell Phone, Mileage and Travel Expenses, Utilities, Home Office Expenses, Equipment, Supplies, Health Insurance Costs, Insurance, Internet Service, Printer, Copier, Maintenance and Repairs, Upkeep, Advertising and Marketing, Office Furniture, Dues, Memberships, and Subscriptions, Business Licenses, Search Engine Optimization, Tradeshows, Booths, Business Cards, Flyers, Education & Training, Workshops and Seminars, Printing, Postage, Letterhead, Office Supplies, and Wages Paid.
You can deduct the business portion of the expenses.
To qualify as a business deduction these expenses must be:
Ordinary and necessary - defined by the courts and the IRS as "reasonable and customary."
Paid or incurred during the taxable year.
Connected with the conduct of a trade or business
(I am not a lawyer or accountant, and I am not giving you tax advice.)
Whether you prepare your own taxes or you hire a professional, it is wise to keep records and retain receipts for anything that qualifies as a deduction. Consult with your accountant or tax professional for more information on how to utilize these deductions and in preparing your first return.
Some Examples From Network Marketing
If you are struggling financially, starting a network marketing or direct sales business is the quickest way to increase your cash flow without a big time commitment. The income produced will be helpful and the immediate income tax reductions increase your cash flow substantially.
Jim has had some business card sized "drop cards" printed for use in advertising his network marketing business. He carries several in his vehicle. He converts his ordinary trips around town to business mileage by stopping to fill up with gas a couple of times and taping some drop cards to the gas pumps. He may put in only a couple of gallons, but he has converted his personal mileage to business mileage because placing the cards is an advertising and prospecting business activity. He always keeps the gas receipt to document the activity and purchase. Because he intersperses business errands and lead-collecting with his daily errands he converts 60-80 percent of all the miles he travels to business mileage.
Mary is with a vitamin network marketing company, and she herself takes the vitamins she sells. After all, she believes they are the best. She may be able to deduct the cost of the vitamins she takes as a demonstration for advertising purposes or to distribute as samples.
Jack pays his children for errands around the house and for performing certain business related tasks, such as opening his product shipment boxes and storing his products on the shelf. He has opened a checking account for each of them and deposits their wages in their checking account. The children write checks from their accounts to pay for clothes, food, and other ordinary living expenses. Jack deducts the wage he pays his children as a expense and at the same time has converted everyday expenses to a business expenses.
Stephanie has a home office and stores inventory in her home. She uses 18 percent of the total space of her house for business. She deducts the full cost of any repairs, furniture, or maintenance for the office space as a direct expense and 18 percent of what she pays for house insurance, pest control, and lawn maintenance as an indirect expense.
So, don't procrastinate, don't dawdle. Start your own business to ease the effects of inflation, reduce your income taxes, and keep more of your hard-earned income.
(I am not a lawyer or accountant, and I am not giving you tax advice.)
About the Author:
The author operates a home business in network marketing and writes about health and business.
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