I know that for many of you tax is a dirty word, especially if you are busy working hard for somebody every day only to find that a large portion of your pay check is gone before it even reaches you. And as the year comes to a close, what can you do as an employee to reduce the amount of income tax you pay or to enable you to receive a nice rebate next year?
The simplest thing to do is start a business at home.
And easiest way of doing that is to become an internet marketer, an affiliate marketer or join a multilevel marketing company. The reason we make that recommendation is because a large number of tax deductible benefits will then become available to you as a business owner. These are expenses that you have anyway, and if you use those things in your business you can deduct them from the profits of your business before you pay your taxes. That means you get to keep more of the income tax which is deducted at source from your pay check.
Let us give you an example – we are going to assume that you have a cell phone. Let’s say that costs you $100 a month. You might be able to claim up to 50% of that as a business expense depending on the tax laws in the State you live in. So for this example, that $50 is deducted from your business income before you calculate how much tax you owe. Now if your business hasn’t made any profits and does not owe any taxes then that money gets deducted from the amount of income tax you paid on your salary. In other words you’re going to get that $50 back per month which is $600 a year!
On top of that you might be able to claim a percentage of your rent or mortgage to cover the office space in your home. Along with that you have your internet service, maybe a home phone, maybe the cost of computer equipment, printers, paper, ink, pens and even fuel for your car – anything that you might use as a business expense. Now we are not tax experts but we have been paying our taxes for many years and during some of that time we have both been business owners, so we strongly recommend that you discuss the benefits with your CPA before you go ahead.
What kind of business do you think you might like to own?
If you decide it is worth getting a couple of hundred dollars a month back on your taxes, what kind of business do you think you might like to run? If you are interested in information about some of the opportunities available to you, we can help so please give us a call and we can talk it through. Owing to the time of year, the holiday season will be upon us shortly and I recommend you choose something you can make some money on as quickly as possible as that success will make you feel good and put some more money in your holiday budget.
Of course we have to confess that we are looking for people to join our team, promoting an app people love to use every day, specially at this time of year, so give us a call if that sounds like fun to you – 858-356-2996