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Cut_Your_Taxes_And_Receive_a_5000_Refund_ _Start_A_Home_Based_Business
| Cut Your Taxes And Receive a $5000+ Refund - Start A Home Based Business
I want to let you in on a little secret that not too many people
are aware of: Owning a home-based business or any type of
business can virtually cut the amount of taxes you owe each
year. The amazing part about this is your business does not have
to make a profit in order for you to declare deductions.
According to an article written by Jeff Schnepper, "All you have
to do is establish a "profit motive." Under the Internal Revenue
Code, a "profit motive" is presumed if you earn any net income
in any three out of five business years. It's recognized and
expected that new businesses probably won't make a profit in the
early years. In fact, in the early years, you can insist that
the IRS defer any challenge for the first five years as to the
legitimacy of your business by filing Form 5213. Remember you
don't have to show a profit -- just a "profit motive." In one
case, despite 20 years of losses, the court found a profit
objective and allowed the deduction of business losses in full
for one company. The case was not unusual. The test for
deductibility is whether you have an actual and honest profit
objective. You need not have a reasonable expectation of a
profit. While the Tax Court requires a primary or dominant
profit motive, the U.S. Claims Court has held that having a
reasonable chance to make a profit, apart from tax
considerations, will suffice." To read the entire article "The
ultimate tax shelter: owning your own business" click here. The
following are some tips to starting your own home-based
business: Determine What Type Of Business You Would Like to Own.
There are literally thousands of home based businesses that can
be started for FREE.Imagine that! What do you like to do in your
spare time? Do you have hobby? Can you turn your hobby into a
money-making vehicle? If you don't have an idea of what type of
business you would like to start, I have listed a few businesses
below: Entrepreneur Magazine - www.entrepreneurmag.com Coastal
Vacations – www.closethesale.netfirms.com AmeriPlan USA –
http://www.deliveringonthepromise.com/tjj33 List of Home
Businesses - www.homebusiness.com The next step is to Develop a
Business Name. The name you choose for your business will depend
on what type of business you would like to open. Pick a name
that describes your business and tells something about who you
are. Your local government office can help you get your name
registered in the state you reside. Note: this step is not
necessary if you decide to start a small home business. If you
need additional help go here - www.sba.gov and
www.familyhaven.com Now, once you have completed the first two
steps you are ready to start promoting your business. This
process can be a bit tedious, but in the end it is well worth
it. Here are a list of sites that can help you promote your
business via Search Engines, Directories, FFA Sites, Email
Marketing and Classified Ads: www.google.com, www.addme.com,
www.sendtronix.com/aff/999, www.adlandpro.com THIS STEP IS THE
MOST IMPORTANT!!!! KEEP RECORDS OF ALL FINANCIAL TRANSACTIONS
RELATED TO YOUR HOME BASED BUSINESS. There are literally
thousands of deductions you can take as a home based business.
These deductions alone can add up to a substantial refund at the
end of each tax year. Accurate record keeping is essential.
Every transaction you make in relation to your business could
result in a large tax refund at the end of the year. Keep record
of everything…advertising expenses, monthly membership expenses,
travel expenses, electricity, heat, rent/mortgage expense,
water, telephone, equipment purchased, repair and maintenance,
etc. There are a number of applications available that can help
you keep record (Quicken, Microsoft Money). Make sure you have
this information available for your accountant or tax preparer
each year. This will simplify the process.
About the author:
Theresa James-Johnson is the publisher of MLMMentors Ezine and
owner of the Free Money Web website. You can contact her
at:mailto:tjohnson.pdc@mindspring.com. Subscribe to MLMMentors
Ezine and get one free ad by sending any email to:
tjohnson.pdc@mindspring.com or visit
www.freemoneyweb.netfirms.com for tons of free resources,
moneymaking programs, and information.
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