I was talking to my tax guy, Joe Craft, CPA/PFS, CFP. Ok…before I let you know what we were talking about, let me tell you a little about Joe. Joe is a highly-regarded expert and trusted advisor in all areas of accounting and tax services. His specialties include tax resolution and representation, home-based business and entrepreneur taxes, direct-selling business taxes, real estate and accounting advisory and consultation services. HE IS THE MAN! He saves me money on my taxes when I didn’t know there was money to be saved! I’m getting a refund this year. I have NO IDEA how he did, I’m just glad he did. I had one of my investors stand up at my real estate meeting (www.BostonAREIA.com) and say, “I LOVE JOE CRAFT! I got a notification 4 months ago that I owed $15,000. OUCH! After a few months of research and going back and forth, Joe got me a $2,000 refund! I LOVE JOE CRAFT!” Ok folks, that’s a $17,000 difference. The man ROCKS and he knows everything there is to know about taxes and saving us money. But, I digress…I just had to let you know WHO I was talking to.
So, back to my original conversation with Joe. We were talking about home based businesses and taxes and how most people should own a home based business, if for nothing else but the tax write-offs that you get. He was quick to say that a person should most definately be in the pursuit of profit, it couldn’t just be a hobby. The IRS frowns on that…but, there are a ton of deductions that people are able to take as home based business owners. Below is your top 10 list. I asked him about FDIY’s pharmacy discount card program. He absolutely LOVES them because a person can give the cards out everywhere they go! We are in the pursuit of profit while we are handing out cards…so, many things that are associated with that activity are now tax deductible! How cool is that! It’s the simplest thing in the world and is the biggest no brainer that I’ve ever seen.
Anyhow, when I first got involved with FDIY, I told Joe, “I can’t afford this business, I need help.” He said, “YOU CAN’T AFFORD NOT TO DO THIS BUSINESS and let me tell you why. America is fooled into giving the IRS an interest free loan every year. We all want that big refund in February or March. Well, I’m going to help you estimate your deductions, show you how to capture that money, increase your cash flow and invest a portion of it so that not only can you afford the business, but, you will have extra money to invest so that YOU EARN INTEREST not the IRS.” After talking to Joe, writing a budget, estimating my deductions and increasing my exemptions, my cashflow increased by $500 EVERY MONTH! He was right, I couldn’t afford NOT to do the business. I was actually able to invest a few hundred a month, get a life insurance policy and put the rest back in my budget so that I could breath easier every month. Single mom, 2 kids, no child support, you do the math. Did I mention that I LOVE JOE CRAFT?!!! Did I mention that we have access to him as one of the benefits of our company? I LOVE FDIY too…they make it soooo easy for us!
So, anyway….what are your top 10 tax reasons to own a home based business?
10) Write off automobile expenses
9) Write off cell phone expenses
8 ) Write off a portion of your home expenses including homeowner’s insurance, utilities and repairs and maintenance
7) Write off business meals and entertainment
6) Write off office expenses such as business supplies and postage
5) Hire your children to work in your business
4) Hire your spouse and write off out-of-pocket medical expenses
3) Write off business travel
2) Write off business equipment such as computers and printers
1) Accelerate those deductions by adjusting your with holdings from your paycheck to get these benefits today – INCREASE YOUR CASHFLOW TODAY!
Tax time is coming…visit Joe’s website today and see if he can help you too! It’s simple – www.JOECRAFT.com
Desire. Commit. Succeed!
Bernadette Trafton, VPMD/ITD Trainer of the Year