Tax Advantage Strategies of A Home Based Marketing Business
Could you use an extra $3000 to $9000 per year? Every American taxpayer who works full time and does not have a home-based business is overpaying on taxes to the tune of between $3000 to $9000 per year.
Did you know that the taxes that you pay are your largest expenses in an average family? It exceeds what you will pay for food, clothing, and shelter combined. The average American spends over 42% of his gross income on taxes. That means that you are working until about May 1st of each year just to support the government, so the rest of the year can go to your family.
The good news is that congress has approved numerous tax breaks as incentives for small business owners. Owning your own home-based network marketing business is the best way to take advantage of some of these breaks.
So what are some of the tax advantages that are available to network marketers? The list can be quite extensive but some of the biggest breaks include: computer, auto, travel, food and entertainment.
Your capital costs of a computer, it's software and even Internet access can be deductible when used is a home based business. Related items may be a web site if your company has one, it's domain name and the web hosting.
Your transportation can also be deductible. When driving to and from an appointment your business mileage can be deducted or the expenses of operating the car such as gas, oil changes, maintenance and even the cost of the vehicle can be depreciated.
Do you like to golf or dine out? When you take a potential customer/distributor to a sporting event, golfing, or a meal to discuss your business opportunity these activities are tax deductible. If you took a friend or family member instead, it would not be a tax break. To qualify, you would need to discuss your business with a potential client.
Vacation travel can work the same way. Let's say that your network marketing company has a meeting or some kind of event in a warm vacation destination. You conduct your business at the meetings and maybe stay a day or two longer and play. Your airfare, rental car, lodging and meals would all qualify as a deduction.
The key to all of the tax incentives and more is to treat your business as a business, not as a hobby. The intent of your business is to make a profit. This does not mean that you have to make a profit, but a reasonable effort has to be made. Work your business. Profit it what we all want! Keep good records of your business activities with a good log book and you will have no trouble with the intent.
Working in a home based network marketing company has endless advantages with unlimited income, more free time to do the things that you want and helping other people. When you find a good network marketing company you will look forward to Mondays and not just live for the weekends. If you are not involved in network marketing you are missing out on some tremendous tax breaks and other opportunities. Get involved; it can change the way you live!
Stephen Long is an independent consultant with a keen interest in Network Marketing (MLM) and home business opportunities For More Information visit his website:
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