When the average entrepreneur is armed with the knowledge he or she needs to understand what tax breaks are available to home based business owners, how easy it is to qualify, and how simple record keeping requirements are, the new deductions (formerly personal expenses and not deductible for tax purposes) will generally slash their taxes dramatically…sometimes up to 30 or even 40 percent
That mean thousands of dollars in tax savings, which produces thousands of dollars in new, additional tax refunds, year after year, for as long as you are actively running your business and making (or trying to make) a profit.
Average additional tax refunds for most is between $3,000 and $6,000 per year, or around $100 per week extra cash in your pocket.
You don’t need to wait until April 15th to get your refund!
You can collect your additional refunds throughout the year. You do not have to wait until April 15th to get the money into your pocket. That’s how you can get Uncle Sam to pay for your home based business. That’s right, pay for, not reimburse you later for.
You will have home based business expenses each month, so Congress lets you collect a portion of your additional tax refund every month also. That way the extra money comes in as you need it; not at the end of the year.
Here’s how it works…
Let’s say you’re currently having $1,000 per month withheld from your paychecks for taxes – this is about what someone making $40,000 – $50,000 a year in wages would pay.
Now let’s say you compute that the new home based business deductions you can qualify for, will be increasing your refund by about $4,800 per year (this is just one example, but a very realistic example). That means you could begin having $400 less per month federal income tax withheld for payroll taxes ($4,800 divided by 12 months).
So what happens to that $400 that’s no longer being withheld and held by the government for a year? It shows up in your take home pay. Using that example, you would be putting $400 per month extra cash in your pocket.
That “pay raise” will usually begin on the very next payday after you visit your payroll office and provide them with an updated Form W-4.
This pay raise is what you will use to fund your home based business.
Put another way…
As an employee of a J. O. B., you are bombarded with social security tax, medicare tax, federal income tax, state income tax (where applicable), and a myriad of other taxes. There is a way to start your own home based business simply by changing the way you divert the federal income taxes you have withheld from your pay check. Once you know the start-up investment needed for the company you choose, you can begin securing those funds by simply completing a new Form W-4 with your employer. This additional money you’ll be receiving in your paycheck can then be used to invest in your home based business.
Small business owners have more tax breaks than any other class of taxpayers.
Every single day that you do not have a home based business, you are throwing away about $20 in overpaid taxes. Taxes are bleeding you to death. But you can control the bleeding now by starting your own home based business.
Congress has approved major tax breaks specifically for those who have a home based business, because home based business owners play a vital role in stimulating and supporting the American economy.
The tax benefits to home based business owners tend to change frequently and when they do change, they just seem to get better and better. If you do not have a home based business, you will lose out on all of the huge tax deductions. Period!
So how do you qualify for these deductions? Easy…
The IRS is very specific about the requirements for qualifying for home based business deductions. Qualifying simply requires you to:
- Work your business on a regular & consistent basis (not like a hobby);
- Perform activities which show you are trying to produce a profit;
- Keep accurate and complete records.
That’s pretty much it. Note, you do not have to make a profit before qualifying for the deductions – merely working toward making a profit is sufficient.
That’s HOW to qualify for the tax breaks of owning your own home based business. In my next post, I’ll cover WHAT you qualify for. Ever wonder how folks legally write off vacations, deduct the costs of operating a vehicle, deduct part of their rent as a business expense (remember personal housing costs, other than mortgage interest are not deductible)? I’ll cover that in my next post.
For immediate information on WHAT you qualify for, send your request via the form below.