A Home Based Business...The 21st Century Lifeboat The following special report reveals groundbreaking applications of new tax laws to benefit the average citizen in the USA. Similar tax advantages apply in countries around the world. The report examines the classic problem faced by most workers worldwide; that of being "Underpaid and Overtaxed", then provides comprehensive solutions that are practical and most importantly, 100% legal. Do you realize that most people can SAVE up to $5,000 or more per year in TAXES? This is because with a QUALIFIED Home Based Business, you can now legally deduct everyday expenses that you are already spending money on...)
Do you feel... You are paid less than what you're worth to your company? Do you think... You pay more in taxes each year than you should? Are you -- Underpaid and Overtaxed! Most workers answer the above questions with a resounding "Yes!" If you are one of them, you may doubt that your upcoming pay raises will offset inflation or that your tax burden will ever decrease. The picture need not seem so bleak. First, let's look at the problems facing the work force: No job security Diminishing income Negative or stressful work environment Failing family relationships Excessive taxation Now the SOLUTION: Home-Based Business By setting up a business of your own and running it from your home, you will realize some amazing benefits for yourself and your family. The majority of them
have to do with saving or making more money, but all of these benefits are about financial security and peace of mind that is life changing! How Does Setting Up A Home Based Business Solve Your Problems Diminishing Income: Increased taxes and inflation have left the middle class with Declining buying power Overwhelming debt Many families have opted to "Double" their income by having both parents work outside the home. However, after calculating the cost of childcare, appropriate clothing, commuting and lunches out, studies indicate a second income of $15,000 a year only allows you to bring home $1.00 an hour! A home based business is the only answer! It not only creates an additional low overhead income, but it also saves you money from your regular job! Negative or Stressful Work Environment Stress kills! It is the most common thread running through the cause or aggravation of illness. Conditions such as heart attacks, multiple sclerosis, diabetes, depression, migraines headaches and insomnia all worsen with stress. The loss of memory function has been linked directly with stress. You're not "Getting old" You're just on overload! A home based business gets you out from under the stress of your current job before it robs you of your health and sanity. Failing Family Relationships With the pressures of mounting debt and more demands in the workplace added to the other forces tearing at the nuclear family, some real thought needs to be applied to how to strengthen family and marital ties. Experts agree that quality time with your spouse and each child is critical. You will be amazed at the flexibility having a business in your home affords! It becomes a family business, not another job that steals you away. Excessive Taxation Note: It is not practical for us to document the tax demands placed on working people worldwide. However, by focusing on the United States, you will appreciate
the kind of tax levied on the average worker plus the kind of benefits that may be readily available in YOUR country! In the U.S. alone, Federal taxes have risen a staggering 47% from 1992 to 2000. If you add state and local taxes, the total tax burden per person in the United States for the year 2000 was over $10,000. Here are some other tax facts you should know: U.S. workers now spend almost half of the calendar year working for the government, according to the Americans for Tax Reform Foundation. Their designated Tax Freedom Day was May 11 for 2001. That means if all of your salary for the year went to paying off taxes beginning January 1, you wouldn't bring home a paycheck until the middle of May. According to the U.S. House Ways and Means Committee, 49.6% of all US Federal tax revenue comes from individual income taxes. Those earning more than $75,000 annually are paying 83% of that figure. The Alternative Minimum Tax (AMT), known as the stealth tax was designed for the super-affluent. The truth is that by continually lowering the threshold, more and more people are being redefined as wealthy. There are 1.4 million Americans subject to this tax now, but the number will increase to 35 million by 2010. The average U.S. wage earner files the standard 1040 income tax form. For this group of taxpayers, there are very few tax deductions left to take advantage of. Fortunately... U.S. Congress has provided a way to change this picture with as many as 157 tax deductions for home-based business owners. There are two tax systems in the United States. One pertains to employed individuals (W-2 employees) The other is for business owners. The first group, W-2 employees, is the most heavily taxed entity of the two systems. The W-2 employee has the least number of tax deductions available while... ...... the same person as a home-based business owner would have the most. Sadly, the greatest number of tax deductions is currently being utilized by the smallest group of America's taxpayers.
The Tax Paradox Thank You Congress!!! You are already spending most of your income on your children, home, medical expenses, vehicles and vacations. Wouldn't it be nice to start keeping $500 or $600 of that money each month? Within the last decade Congress has made some very generous tax benefits available to home based business owners. Capital Equipment: This code allows small business owners up to $24,000 in deductions on the purchases of capitol equipment; including office furniture, office equipment and autos in the year of the purchase. This means you can write off the full depreciable amount on these items the same year they are obtained, whether they are paid in full or financed. Medical Expenses: Home business owners can deduct 100% of all medical expenses including medical insurance premiums, office visits and CO-pay, pharmaceuticals, dental and ophthalmology expenses. Hiring Children: Up to $7,700 ($4,700 wages + $3,000 IRA) per child, per year can be paid to children over the age of 7 who work in the family's home business. The entire amount is considered a business expense and there is no income or Social Security tax due from the child, if he/she is under the age of 18.
You can pay each of your children $4,700 a year and have them purchase their own clothes and toys, college and wedding from the tax savings from your home based business paycheck. Pay Uncle Sam or pay your children. It's the same money! Home Office: A home business owner can write off any room or portion of the residence as a business expense. The average amount claimed for this deduction is $2,400 per year. Vacation/Business Trips: Vacations can be combined with business trips to make most of your travel costs tax deductible. Business Mileage: There is a 36.5 cent deduction for every business mile you document. There are many qualifying taxpayers that don't utilize this worthwhile strategy. Imagine! It's like throwing a dollar bill out the window every three miles! You'll notice that these six deductions are based on existing family expenses. You don't have to wait until next years tax refund comes. You could be writing off bills you are paying today!
A Home-Based Business is the solution to the "Underpaid and Overtaxed" downward spiral. You Can... Save thousands of dollars a year in taxes Regain family relationships Reduce the stress in your life Boost your income Secure employment insurance Have a harmonious home/work environment
It has been said. "All wealth begins by taking control of your life." Control of your life and your family's financial future is within your reach
The General Accounting Office reported in April 2001 that small business tax filers OVERPAID approximately $183 billion to the IRS. That represents about $9,300 per business owner! Think about this ... Which category are you in? The Wealthy…EARN Money … Enjoy Life … then Pay Taxes On What's Left While AVERAGE Folk…EARN Money … Pay Taxes … then Survive On What's Left If you're NOT in the FIRST category, then you have to get into it as FAST as you can. Here's an example of how you can save money each month. Lets look at some items that you're probably already spending money on each MONTH and the related tax savings potential: Miles Driven: $457 (based upon 1,250 miles per month at 36 1/2 cents per mile) Restaurant Food: $200 (based upon $400 per month @ 50% deduction) Utilities: $125 (based upon $500 per month @ 25% deduction) Medical Insurance Premiums: $115 Products and Website: $103 Total Expenses: $1,000 per month in DEDUCTIBLE expenses Assuming a 30% tax bracket, you would SAVE $300 in taxes. What makes this LEGAL is that as long as you have an INTENT to make a profit, for example you tell people about your website, you are promoting your Home Based Business AND qualify for the above referenced deductions. Of course your desire is to make as much money as you can each month with your home business, but the worst case scenario is that if you don't make a penny in your business, you could at least save more money (in tax savings) than you are spending on the products. "To have what most people don't, you must do what most people wont" - Les Brown The above TAX SAVINGS situation is for illustration purposes only, and should not be taken as personal financial advice. Every situation is different and if you are planning on starting a home-based business, please consult a tax professional to maximize your potential home-based business deductions
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