Start A Home Business And Get In The Black The Next Day
This is that wonderful time of year when the frost starts to thaw, flowers begin to bloom and everyone is either doing their taxes, finishing them,or fretting about said taxes. And possibly contemplating a revolution.
It’s no secret that in today’s economy, countless numbers of people are tying t find ways to make more money and quickly. The best way to make money fast is by starting a home based business; therefore it might come as a shock to some when I say it is possible to profit immediately when you start a home based business simply by applying some techniques to shield more of your hard-earned income from taxes instead keep it in your pockets.
However, I was taken aback at how many people who start a home based business don’t take full advantage of the assets that this sort of opportunity presents. In fact, the minute you start a home based business opportunity, you become privy to a number of benefits you didn’t have available before. Even if you’re not making any buy cvv money in your business, if you apply proper techniques available to a business owner, you will be saving money you otherwise would parted with to Uncle Sam. ( Or whatever uncle is in charge of your respective government. )
But maybe not as many
Now when you elect to start a home based business there are of course some elements you need to examine first:
- The type of business: is it something you can succeed in, and believe you can enjoy?
- What kinds of new skills will you need to develop for this business, and will you have either someone or a quality system to help you develop those skills necessary to thrive?
- What is the leadership like of the home based business opportunity you decide to join? What is their reputation?
- Research the history of the company and whether other people are finding success with whatever system or endeavor you decide to explore. There are an incredible number of “programs” on the internet that promise one they can work 15 minutes a day and bank huge amounts for doing nothing. Be careful when you come across these types of opportunities because the majority are affiliate products designed to make money for the person marketing the program, not necessarily for the buyer. Some of them may work, when it comes time for you to start a home based business you just need to do your due diligence.
A quick note for when you’re doing your research about starting a home based business: when you research a business and find the word “scam” frequently appear in the search engines, don’t let this immediately deter you: continue to do your due diligence and explore why exactly someone is saying that opportunity is a “scam”. the reason is many marketers target other businesses, hoping to leach traffic off one opportunity onto their own by catching people’s attention who don’t know better. In the old days, one could trust what they found on the internet; you have to be much more careful now. Measure once, cut twice, that is the carpenter’s rule of thumb and one you should heed when you decide to start a home based business. You want to be able to enter with confidence and excitement.
One caveat before I proceed: everything that follows is simply a suggestion and I highly suggest you stay within your limits and do not exaggerate any of your tax deductions. The IRS is hurting right now just as many citizens are- and would just love for you to finagle with your taxes and invite an audit. ( In fact, there is an entire departments of the IRS that have been mobilized over the last couple of years simply to pore over older tax records in the hope of finding past discrepancies that they can then fine someone for.) So don’t invite the wolf in and you should be fine.
He’ll come and knock on your door…
Start a Home Based Business and Profit Immediately
Some of the items you can profit from once you start a home based business:
Office rent-This is one everyone should know and use but I’m including it because like I mentioned before, a lot of people overlook these benefits. Even if you’re using a spare bedroom, you can take your office space and ( the size of the bedroom or a percentage of your house-don’t go overboard with this and claim like ” All of my house is an office because I work in every part of it!” or anything, this won’t fly with the IRS. There are ways to use tax laws to your advantage but not abuse them. )Typically you can deduct somewhere around $1.75 per square foot, so if you have an office that is only 120 square feet, you can deduct around $210. But that’s every month.
Computer-You are allowed to write off around $25,000 annually for equipment and business assets, so a new computer, printer, fax, modem, etc. all fit into this category.
Health Insurance- medical, dental, and even disability. Smart.
Start-Up Expenses and Marketing- business cards, the expenses of joining, and if you enter into network marketing,( one of the best forms of home based business) you can even deduct the PRODUCT as well.
Meals-you have to eat right? And sometimes have business lunches. A word of caution with this one: don’t overuse it by claiming an inordinate amount of meals eaten were business related. When traveling one can only write off 50 % of meal costs as well.
Telephone- this is only related to a separate business line, not your regular home phone; but you can write that second line off, along with internet too.
Auto -It is important to keep good records with this one, but when you start a home based business you are allowed an monthly auto allowance according to how many miles each month the car is driven. Right now I believe it is allowable to around 50 cents/mile currently for all miles you’ve used that go toward business purposes. It is up to you to determine exactly what those are, -but can include meetings, meals, and…
Travel- one can deduct half their meals, plus lodging and transportation. Foreign travel is a bit different, but basically is three quarters of the trip is spent on business, you are good to go.
Subscriptions-these of course have to be related to your type of business- magazines, business clubs, and even college courses can be deductible if they fit the right description, meaning they can further your business.
Retirement plans-This one could be an article unto itself, so perhaps it is best saved for another time. But basically refers to setting up and contributing to a tax beneficial 401k or IRA.
Other benefits include a cafeteria plan, dependent care, and if you elect to start a corporation ( which you can do for less than 500 bucks and as little as 145) you can also get a lower tax rate for your business and the income you generate through it. )
So the lower tax rate and many of the other benefits one can apply from the moment they start a home business even part time are obviously a huge boon. If your business is more mature, you may want to look into an S or LLC. It’s wise to consult with someone that knows your situation for any final decision, because ultimately you want your corporation to work for you.