I have trained over 50,000+ Independent Business Owners on the power of owning a Home Based Business and giving them the tools to do it correctly. One major benefit I help clients discover is the tax benefits of owning a Home Based Business and keeping more of what you make on each W-2 paycheck, NOW, and invest it into YOU and make YOU more money! Why give the Government and interest free loan for a year and hope to get some of it back. It’s YOUR Hard Earned Money!!
Here’s a REAL example:
Take $1 and double it 19 times = $1,048, 576.00
Take the same $1 and double it 19 times WITH taxes taken out = $21, 931.15
Now, WHY do the rich get richer and the poor get poorer…the rich understand that to have MONEY making YOU MONEY…you need to reduce your tax liability to the LEGAL (key word) legal, minimum. This allows you to keep more of what you make and invest it into YOU!
Two Tax Systems
Employees get to write-of almost nothing, but businesses get to write-of almost everything. In 1913 when Congress created the
income tax they setup two systems. One system for employees and the second for employers. Since virtually all taxpayers were
self-employed, home-business owners (they were mostly farmers), the business tax system received preferential treatment. It hasn’t
changed since then!
Tax Tip: If you have a home-based business operated with a profit motive, you can convert a
portion of your personal, non-deductible expenses to deductible, business expenses.
Here is a sample of what an “Employee” paycheck looks like vs. an “Employee + Self Employed Entrepreneur”
• Work Hard
• Immediately Lose a Huge Chunk of their Wages to Taxes
• Get to Take Home Whatever is Left After Taxes are Paid
• Are Entitled to Limited Deductions
SELF EMPLOYED ENTREPRENEURS
• Earn Money
• Spend for Whatever They Want or Need
• Pay Taxes on Whatever is Left Over
• Deductions Include:
• Mortgage Interest or Rent
• Gas, Electric, Water, Trash
• Cleaning Crews to Dust, Vacuum, Empty Trash
• Computers, Fax Machines, Copiers, Telephones
• Paper, Staples, Ink Cartridges, Postage
• Desks, Sofas, Coffee Tables, and other Furniture
• Painting, Wallpaper, Carpeting, Repairs/remodeling
• Cell Phone Bills, Pagers, Palm Pilots
• Newspapers, Magazines, Books, On-line Media
• Plane Tickets, Hotel Costs, Meals, Rental Cars
• Lunches, Dinners, Ball Games, theatre Tickets, Health
• Security Alarms, Hidden Cameras, Guard Dogs
• Health, Life, Dental, Vision, Disability Insurance
• Company Cars (even boats), Airplanes
• Gifts to Charity, 401k, SEP-IRA, Profitt Sharing
• Contributions to Employee Retirement Plans
• Lawn Mowing, Landscaping, Snow & Leaf Removal
• Holiday Cards, Gifts, Postage, Mailing Service, Flyer
• Marketing, Advertising, Promotion, Business Development
• Accounting, Bookkeeping, Legal Fees, Contract Labor
• Printing, copying, DBA filing
• Bank fees, Interest expense, Business License
• Website hosting, Website creation & maintenance
• Internet Access, eFax, Training, consulting, tax preparation
• And just about any other expense that is “ordinary and
If your home is now your primary business location, and if your business includes selling a range of products that require
warehousing, the business use percentage of your home and garage may qualify for additional tax deductions.
I was blown away when I learned this incredible knowledge about tax strategies how to build your wealth. I partnered with the experts in the field of taxes and tax preparation to provide my clients this information so they get it straight from the experts and can start and run a home based business correctly…..and quickly learn how to maximize their money!
2013! Let’s show people how to get a RAISE, Today!
Much more to come…..
Happy New Year!
www.erictippetts.com (join my free “7 days to profitability” video training series)
Here my disclaimer on information above from my legal department:
If you have any questions, Call Accountable Solutions at 1-866-282-3127
© 2013 Accountable Solutions THE DIRECT SELLERS’ TAX EXPERT.