Creating a Legal Tax Write Off, Options, One, Two and Three
We have often times encouraged tax payers, who have owed
taxes in the pass to do one of three things to reduce their tax liability,
1.
Purchase a primary home and use the mortgage
interest as a write off to reduce taxes
2.
Make an appointment with an Investment Planner
and include tax planning in with your Investment strategies. (long-term)
3.
Invest in a small home based business, and
receive the tax benefits.
Today’s post involves the details in starting a home based
business for the sole purpose of creating:
1.
An opportunity
2.
A legal tax write off
The downside in starting a home based business, especially
to help lower your tax liabilities, is the IRS audits more of these types of tax
returns than most. Two, you usually can
only “loose” money for 3 out of 5 years before the IRS starts asking questions
about your intent. Questions such as, “Is
your business a hobby?”
To avoid these types of questions and to within stand ANY
questions the IRS may have about your home based business, you should be
prepared to do the following:
1.
Create a business platform, which you are
serious about running as a small business
2.
Keep records of all expenses
3.
Plan on making a profit, and once you do, then
start another business, and another, and another to offset your income.
The end result will be:
1.
You owe IRS more money, because you have more
income
2.
You can delete your day job, and become your own
boss
The bottom line is:
If you earn money from a home based business, and you set it up so you
can run it from anywhere in the world, you create an option to make your home
based business an International Corporation, move off-shore and request from
the IRS, exclusion from foreign income up to $95,100 (2012) per year! (Contact your attorney, ask questions)
Are you understanding, why so many web site owners are
moving offshore?
This post sponsored by Virtual Realty, Web Sites for Sale, perfect home based business, tax benefits, passive income, opportunity. Web site ownership will enable you to qualify for tax write offs on the following expenses: (partial list of expenses)
1. percentage of mortgage or rent paid
2. percentage of utilities and cost of the upkeep of your home
3. cost of cell phone, communications
4. Internet Service Provider
5. all business expenses, including research
6. all payments to Freelancers and Independent Contractors
7. cost for equipment for the business, including computer, laptop, printer, fax machine, etc.
8. cost for furniture for the business
9. any and all expenses related to your home based business.
10. travel for business purposes, you know, the annual workshops in Las Vegas, New York and San Francisco
