Huge Tax Advantage simply by working at home
Some people do not realize how much money they can save just by owning their own home-based business. Doing some simple documentation is all it takes to take advantage of your fair share of tax savings! And, it only takes a few minutes a day. Here are some of the most common items that Independent HomebasedBusiness owners with Ameriplan deduct from their business activities:
* Postage * Advertising * Broker Fee * Convention fees * Business Travel * Phone expenses * Automobile Mileage * Office Supplies * Computers, software * Office Machines * Business Meals * Home Office (square footage)
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Why You Should Have a Home Business “It is anticipated that by the year 2005, 50% of households in the US alone will be involved in a home business” - Newsweek Magazine - As you can see, home based businesses are gaining in popularity in America. This is especially true now because the IRS has recently re-instituted the home business tax deduction which allows home business owners to deduct up to $5000 per year in business expenses off of their income tax. This means that you can start a home business and not make a dime with it and still be able to come away with an extra $5000 in your pocket at the end of year! “A home based business is the best tax shelter left in America” Sandy Botkin (IRS Attorney & Tax Reduction Institute Chairman) This is a very serious and important part of your home based AmeriPlan Business., I talked with Lynn and last year she had $14,000 taken out of her JOB check thru the year.. By using her home business allowable tax deductions she got a Tax REFUND of over $11,000 that she would not have gotten without her home business deductions. Michael in Dallas told me that with his and his wife’s income last year before applying the AmeriPlan home business deductions they owed an additional $6,000. AFTER the home business deductions were taken, they received a $5,000 REFUND, or is FREE FUND!
Always consult a PRO-Active Advocate of home based business deductions when choosing your cpa or accountant for the current year update that you are filing for. Marvin D. Krueger, CPA, CMA : April 12, 2003 listed over 50 ways you can document and deduct business expenses from your U.S. Income Taxes. The IRS requires written documentation to qualify for the deductions. NOW is the time to start keeping your receipts! Where applicable, here is his list of potential deductions for your business: Your Broker kit . The initial starting broker kit of either the $95 is deductible expense that actually starts your business. (Use your Credit/Debit Account documents to document the investment, or your canceled check, etc.) Your Marketing tools . In order to understand and market AmeriPlan, you need to use the company brochures and promotional material as well as the training material, quick start paks etc.. [AmeriPlan provides receipts for all purchases, keep for tax time.) Your Monthly Fees. The $50.00/ month broker fee, the monthly website charges etc. are deductible business expenses. Since many of the benefits from using AmeriPlan come in the short and long-term, we must become a “product of our product”, and by using the plan allows us to have our own testimonies and increases our belief and confidence in the value we offer our members.
Your Home Office. Create one area in your house to do your AmeriPlan Business from. It can be out of a closet, a desk in the corner of a room, a full room, or an office created out of some of your garage space, the only requirement is that it be used exclusively for business. If your desk is in the TV room, you can’t deduct the whole room, just the area that you actually work in. The percentage of the house used for business calculates the part of the following that you can deduct from your taxes: (Document with receipts.)
Rent (If you own your home with the bank, the interest, taxes, etc. are applied elsewhere)
Electrical BillSewer BillInsurance (not deductible at all, unless you have a home business!
Cleaning Service (as long as they clean where you office is too!
Garbage serviceWater BillHouse RepairsLandscaping (if people come to your house on business)Personal Training Expenses. (Document with receipts)Seminars
AttendedBooksCassette / CD programsSeries tapes/CDsTraining Conference callsAdvertising ExpensesLike AmeriPlan Gear? It all has the logo, and is thus an advertising expense.Giving a gift? If AmeriPlan product, or AmeriPlan Gear, treat as Advertising.Newspaper adsCounty Fair / expo booth fees.FlyersCompany LiteratureReproduction costs (photocopies, etc.)
Labor Expenses paid to your children for Business related work. Keep track of what is done, and how much paid, pay by check, canceled check is proof. NO SSN OR INCOME TAXES need to be paid on your children!Emptying the GarbageMowing Lawn, other LandscapingCleaning your office.Filing.Computer work (Most kids are better at computers than we are!)Envelope stuffing/postcard stamping, other mailing tasks.
Other business related items. Business Travel.Convention Travel to pre-arranged presentations. Going to visit your sister?Put an ad in their local paper two-three weeks before, coordinate severalappointments, and your trip is deductible (within some limits). Is your wife/husband going? Are they working with you in the business, and will theybe at the appointments? Their trip is deductible too!Air fare, train fare, and car mileage.All “fees” related to travel – parking, tolls, security, etc.Meals while on the trip (subject to limitations).Entertainment expenses (subject to some rules and limitations)Out of area training.
Office Expenses. Paper clips, printer paper and toner, light bulbs, pens, pencils, highlighters.White boards, easels, presentation flip chartsFurnishings (Chairs, desks, lamps, carpet, etc.)Equipment (Computers, printers, fax machines, PDAs, phones, etc.)
Phone bill (If you only have one phone, only the long distance calls related to business, the IRS believes that one line is a ‘necessity’ and will not allow that as a deduction).Special services on your phone bill (Three-way calling, call waiting, voice mail)Second line used for business. (Document business usage by adding to your business card/stationery)Cell Phone. (Document business usage by adding to your business card/stationery)ISP account and e-mail. (Document business usage by adding to your business card/stationery). (Document fees by printing billing)ort.Postage for business mailings.Business Meals. When you do a presentation at a restaurant/coffee shop, pick up your receipt! This is a deductible expense (50%) Celebration Expenses. Giving a party to celebrate? Make it a business event. Invite your business associates/prospects and deduct the entire cost! (Make sure you celebrate your business!) Document via receipts and invitation list, have attendees sign a “guest book” to document who attended.
In-home expenses. Baby SittersAssistants (read: your children, if old enough)Food provided (100%).Snacks/Tea/Coffee/Attain Shakes (100%) Mileage to/from presentations, training events, conventions, etc. Document with mileage log. Do for three consecutive months, or three like periods, extrapolate totals to full year (multiply by four). IRS requires some sort of logical, written documentation of this. If your day planner does not have a good sheet for this, check out on the web for one, or make your own. It needs Date, purpose, start mileage, end mileage, total mileage on the trip, and total mileage for the month. You will also need the year’s start and ending mileage numbers off of your car’s odometer for the tax form.
Remember to save your receipts for any business related expense, and if you take a prospect to lunch, document and record the COST of the meal including tip, the DATE of the expense, WHERE the meal took place, WHY it qualifies as a business meal (recruiting), and WHO you had lunch with. Consult your local tax professional to insure that you’re entitled to every legitimate tax deduction. It’s literally money back in your pocket at tax time
Learn More About How Ameriplan Can help you and your Family Create The Financial and Time Freedom that has helped me and so many others achieve
.Request An Interview at: http://www.freedomathometeam.com/prosper
All my best!Michelle Stefferson
1-888-220-8372
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