Home Based Business Tax Savings
Most people do not enjoy paying taxes but believe they must surrender a large part of every paycheck to the government. That amount has increased through the years until most Americans now get to keep less than half of their wages. The rest of their income goes to the government in the form of taxes. Average taxpayers pay more money in taxes than they spend for health care, food, transportation and housing together.
However, there is a safe, legal, ethical and honest way to decrease your tax obligation and receive more take-home pay every payday. You can get significant tax breaks by operating a part time business from your home. A home based business offers tax deductions for expenses like health care, meals, entertainment, travel, vehicles, rent or house payments and utilities.
Former investigative journalist Ronald R. Mueller, MBA, Ph.D., studied the Federal Tax Code for an entire year and identified dozens of tax deductions that Congress passed to promote home based businesses. The country's leading expert on tax laws for home businesses, Ron verified each deduction by tracing it back to the particular law, Tax Court ruling or Tax Code article authorizing it. He then wrote a book, "Home Business Tax Savings MADE EASY," in which he deciphered the confusing language of the Federal Tax Code to help ordinary people understand how to use the tax deductions that Congress passed. Ron states that the most valuable feature of his work was "translating the convoluted language of the Federal Tax Code into 'plain English' that the average person can easily understand and quickly use." The book is the only plain English, step-by-step guide to home-business tax breaks authorized by Congress. The IRS evaluated Ron's book and did not ask him to make any changes to it, which testifies to the accuracy of the information included in the publication. The book is full of powerful information, and Ron uses a reader-friendly layout, conversational style of writing and humor to make it enjoyable and easy to read. Ron stated, "It took me more than a year to learn it, but now that I have mastered it, I can teach it to you in just a few hours or less."
Home based business owners qualify for more tax breaks than do taxpayers in any other category. Any part time business can provide tax savings when you operate the business from your home. It is easy to meet the government requirements for the tax breaks, and average taxpayers can save between $300 and $500 a month when they understand how to take advantage of the deductions.
Congress determined that it is good for the American economy when more people have home based businesses to rely on if their main sources of income fail. In light of that, Congress passed some tax deductions expressly designed to give home based business owners tax breaks and encourage more people to have reliable sources of income in case they lose their full-time jobs.
To qualify for the tax savings that a home based business provides, the business must be legitimate, and you must expect to make a profit from the endeavor. You are not required to make an income from the business, but you must intend to receive a profit from it. In addition, you must work at your part time business regularly and consistently at least three or four hours a week.
When you have a home business, you can change the amount withheld from your regular wages and take home about $100 extra every week. Even if you never make any money with your part time business, the tax savings you get from the extra tax deductions can be worth about $5000 a year. When you are aware of that, you realize that it actually costs you money if you do not have a home based business.
In addition to the tax savings you receive from a business based in your home, you may find that the extra income you get from working at your part time business could be significant. When you start earning enough to support your family by working part time, you may want to make some lifestyle changes. After enjoying the freedom and lack of stress you can have by working for yourself instead of for a boss, you may decide to quit your regular job. If you work a few more than the required three to four hours a week, you may make more money than you made working full time at your former job, especially if you choose a multi-level marketing business.
As its name implies, you can make money from your own efforts as well as from sales made by those in the next levels of your multi-level marketing business, and when your team grows larger, your income increases accordingly. You can work as much or as little as you want to work and set your schedule to accommodate you and your family. Because you also make residual income with multi-level marketing, you can even earn money while vacationing.