Tax Information

It’s not how much money you make…
it is how much money you manage to keep!

If you are considering a home based business, the first step is a consultation with your CPA. He or she will tell you that the day you start your business you can begin taking advantage of the tax benefits that Congress has provided for home based businesses. These are significant tax breaks.

If you treat your new venture like a business instead of a hobby, and you legitimately try to make a profit, your tax savings could be $4,000-$10,000 per year or more. If your home office is 25% of your square footage and your house payment is $1000 per month, your write off is $250 per month, or $3000 per year. Your office furniture, desktop computer, laptop, cell phone, land line, long distance, internet access, a portion of your utilities, travel, mileage, meals and entertainment are all legitimate business expenses.

You may even be able to lease your vehicle through your business and deduct all vehicle expenses as opposed to just the scheduled depreciation. Instead of handing your kids (aged 7 -18 years old) an allowance, hire them to work in your business. The income is 100% tax free to your kids and 100% deductible to you as a business expense.

If you hire your spouse to work your home based business, you can give your spouse a reimbursement for health related expenses not covered by any other insurance plan. This is provided as an Employee Benefit and covers the employees and their immediate family. This means you can reimburse for things not covered by another plan, like deductibles, dental work, co pays, and even over the counter items like Tylenol or aspirin that are used by immediate family members, including yourself.

Perhaps the best reason to start a home based business is to build residual income for the future. If you had $240,000.00 cash in the bank, and you received 5% per annum on that money, you would receive only $1000 per month in interest. In order to draw $5,000 per month, you would need $1,200,000.00 in savings at 5% per annum. How many people will acquire those types of savings accounts in their lifetime? It is safe to say “very few”. It may be more realistic to start a home based business and enjoy the tax advantages allowed while developing your own business. With patience and a good attitude, you could realistically be making a few thousand dollars per month within a couple of years.

Consult with your C.P.A. at the very beginning of your venture. He or she will clearly outline the write offs available to you and explain the record keeping procedures that are required. Wouldn’t it be nice to leave the C.P.A.’s office knowing that you are going straight to your employer to have them adjust your withholding so that they take fewer tax dollars out of each check? This could translate into an instant raise of $500-$1,000 dollars a month or more, just in tax savings.

Give yourself a raise by becoming a Force distributor today!

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