Slash Income Taxes By Doing What You Love

Slash Income Taxes By Doing What You Love

That's right,​ you​ can take advantage of​ the​ IRS tax code and save a​ lot of​ money that you'd otherwise send to​ Uncle Sam by doing what you​ love.

The secret is​ to​ simply set yourself up as​ a​ small business and take tax deductions for related expenses! This is​ very easy and inexpensive to​ do. you​ can then turn many personal expenses into business one that you​ can deduct!

It doesn't matter if​ you​ are retired (in fact this is​ a​ perfect time) or​ just getting started in​ life. you​ can start doing a​ business in​ virtually any niche or​ subject that you​ love or​ have a​ passion about.

For example,​ if​ you​ are passionate about photography,​ there are multiple ways to​ offer a​ product or​ service to​ others for a​ fee,​ commission or​ whatever. I have a​ retired client that loves to​ travel to​ Italy. in​ fact they are on​ their way there as​ I write this for an​ extended trip.

Wouldn't it​ be nice if​ the​ IRS would make virtually all of​ their travel expenses deductible?

There are multiple ways they could accomplish this in​ return for a​ little effort. They could write a​ travel guide to​ the​ particular region they will be staying in​ with reviews on​ restaurants,​ museums,​ stores,​ things that are a​ "must" see or​ do and other things that are worth skipping and why.

It could be just published as​ a​ $19.95 e-book. Don't want to​ write anything? What about organizing a​ trip for others with you​ as​ their "guide". Simply organize a​ trip with friends from church,​ old schoolmates,​ etc.

You can either become a​ travel agent or​ work with one to​ put together a​ trip making a​ profit on​ the
difference between the​ costs the​ airlines and hotel charge and the​ "package" that you​ offer it​ for.

If you​ love horses,​ you​ might be able to​ offer rides for a​ fee at​ birthday parties or​ church events.

I could go on​ and on​ with potential ideas of​ taking something that you​ love to​ do and making it​ into a​ business to​ enable you​ to​ save thousands of​ dollars on​ your taxes. But let's discuss how this works in​ general terms of​ taking your "expenses" and deducting them from your tax return.

But first you​ have to​ set up your business. Yes,​ you​ can incorporate (or set up an​ LLC) and I would highly encourage you​ to​ do so.

In some states you​ have to​ go to​ the​ court house and fill out a​ form known as​ a​ "DBA". That's for "Doing Business As". So you​ could say... Jane Doe (your name) doing business as​ Tax Saver and Associates.

Your business does NOT have to​ make a​ profit in​ order to​ legally take those deductions.... but it​ does need to​ have a​ "profit motive"! Under the​ IRS rules,​ a​ profit motive is​ presumed if​ you​ earn ANY net income during any 3 out of​ 5 tax years.

In fact,​ your business need NEVER actually be profitable to​ keep your business deductions going as​ long as​ you​ can keep proving a​ profit motive. Did you​ know that has yet to​ show a​ profit after all these years and billions of​ dollars in​ sales? But nobody could successfully argue that they don't have a​ profit objective.

There are a​ number of​ tests or​ standards that would indicate that there is​ the​ goal to​ be profitable which nclude the​ manner in​ which you​ conduct your business,​ the​ effort and time that you​ can prove that your devout to​ uour business,​ your expertise in​ that field. Do you​ have business cards and letterhead? Are you​ keeping accurate records,​ have an​ outline of​ a​ business plan written down?

Then,​ you​ will be able to​ deduct most or​ all of​ your expenses directly related to​ your business or​ "hobby for profit". if​ you​ have a​ home office,​ you'll have a​ number of​ other partial potential tax deductions such as: office furniture and equipment,​ deprecation,​ homeowner's insurance,​ utilities and more.

Like to​ travel? How would you​ like for the​ IRS to​ help you​ pay for some or​ all of​ your travel expenses? on​ ANY type of​ business or​ niche there are many conventions,​ conferences,​ functions or​ similar businesses that you​ can meet and learn from -- all over the​ WORLD - that you​ can go to.

On any given day there are literally hundreds of​ seminars and such on​ going on. if​ you​ are a​ little bit creative,​ you​ can "justify" why your business made the​ decision to​ invest the​ money to​ attend to​ learn and network with others in​ your field.

If you​ follow the​ IRS rules,​ you​ can deduct all or​ much of​ your travel expenses to​ get there,​ your hotel,​ your food,​ cab fare and so on. Where and when do you​ want to​ go? Just look for something going on​ that might make sense for your business and let the​ IRS help you​ pay for it!

Start a​ business and slash your taxes today!!

You Might Also Like:

No comments:

Powered by Blogger.