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[Connie Seagle Company: Magnetic Sponsoring Contribution Level: 2]

That is a very interesting point Bill and truly does make a lot of sense. Its little things like that that are making me realize I do need a CPA even while my business is very small. Thank you for that insight.

[Bill Young Contribution Level: 1]

Or "Financial Professional"...Consider this:

Fed Chairman Alan Greenspan denied there was a Housing Bubble. Did your licensed stock broker warn you about the Dot Com bust? Many of my clients have been told by licensed financial advisers (including 1 cpa) that it is illegal to invest their IRA funds in real estate, which is a lie.

Its like Kiyosaki's Rich Dad, remember, he interviewed his prospective advisors? He always knew enough about the subject to be able to evaluate his "Professionals," and so should you.

No doctor is going to know every medical specialty. No lawyer is going to be expert in all areas of the law and No CPA is going to know the entire tax code. They specialize in one or two areas that they work in everyday and the rest, well, they can look it up.

Real estate and home based businesses have very specific tax rules and regulations. I am not a cpa, which drives some cpa's crazy, but I have taken cpa continuing ed classes through my close association with cpa friends. I also have 25 years experience as an investor and entrepreneur and probably know more about this limited area than most general cpa's.

The first year I made significant money in real estate, my then current cpa computed that I owed $24,767 to the IRS. Even then I knew something was wrong. I fired him and went to a Big 8 accounting firm where one of their cpa's who specialized in real estate taxation reduced my tax bill to Zero!

Did you know there are NO home based business tax questions on the cpa exam, according to my cpa? Most cpa's do not specialize in that area so they should be approached with caution and not relied on blindly, "I am going to ask my cpa!" OK...

If they tell you that the law says you must show a profit in your home based business in 3 of 5 years, or your losses will be disallowed, RUN! he/she does not know what they are talking about.

I don't mean to denigrate cpa's. The other part of the problem of relying blindly on their advice is that you are probably not paying them to help you maximize your tax savings, are you?

You expect him to consult with you on tax strategies and tactics when he sees you once a year on April 14, with a shoe box full of sticky, Latte stained paper receipts? His bill of $125 for doing your return does not include tax consulting services my friend. My cpa's bill for reducing my tax bill from $25,000 to zero? $5,000!

The tax benefits of a home based business are the most powerful business building tool in the world, in my estimation. . In fact, I have put together a course that gives my prospects an extra 10-20% more take home pay, starting with their next pay check using these strategies!

They then use this money to join my opportunity. It also works wonders with retention as they don't want to have to give up that "Extra Pay Check" every pay day as they would if they dropped out. I have also been successful in bringing Distributors Back to Life, by showing them the benefits of this program.

Obviously, I prepared this program with the help of my cpa, who specializes in home based business deductions. You can take a look at a Press Release we did last month on the program, http://www.mediafire.com/?as0vjiubk4g
Or you can contact me if you are interested in knowing more.

Bill


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[Brian Beckman Contribution Level: 1]

All the information you need to know regarding Home Based Business Taxes can be found in a book called " It's How Much You Keep That Counts Not How Much You Make " by Ron Mueller.

It has saved me thousands on my taxes and is bullet proof for audits. I make no money promoting this book at all. I find this book to be invaluable for anyone in a home based business of any kind.

You can get it in paperback or PDF at http://homebusinesstaxsavings.com/new_home/book.php

I hope this helps everyone I know it has helped me.

[greg Kinear Contribution Level: 2]

The new credit card thing for the business is a great idea! It would make it much easier to keep track, thanks for that tip. I love tax time. We are only half way through our financial year here in Australia and i already have $40,000 in tax deductions. Looking forward to a nice big tax return. : )

[Coralyn Eddy Contribution Level: 2]

Reginald you have to keep the whole of your phone bill, you may have to prove which of the calls were for business and which weren't and how can you do that if you don't have the detail part of the bill.

About claiming for your home office. I know all accountants and CPA's tell you to claim part of your mortgage and rates etc for your home office but in Australia if you have been doing that and you sell your home for more than you paid for it then the tax office will take tax on a proportion of the profit. And the accountants don't tell you that, they are only looking at saving you tax now. So ask your accountant if that applies in your country before you agree to have those deductions.

[Tina Gonda Contribution Level: 2]

EXCELLENT SUBJECT: Tax Deductions
Thank you for all the great tax deduction websites in one location to share with others who might be starting out.
I can assure anyone that the past 19 years that I have worked from a home-based business, it has saved my family thousands and thousands of dollars.
There are many great books, website articles and getting familiar with a schedule-C can help assist you with your legitimate tax deductions.
Take recommendations of other business owners who have excellent CPA's that know the tax deductions because an excellent CPA will find things that most people don't think about.
Great records, staying organized and up to date makes preparing for tax time a breeze.
Congratulations to anyone who has a home-based business be it full-time or part-time.
Tina Gonda-Founder
http://InsideAndOutWellnessSolutions.com

[Mark Fuller Contribution Level: 3]

I personally keep copies of everything. Keep this in mind for telephone bills. The regular monthly bill part of your phone bill is not deductible, only the long distance calls associated with your business or the flat rate long distance whichever way you pay for your long distance. If you want your entire phone bill to be deductible you have to have a business phone that is separate from your home phone and it can only be used for your business. Your cell phone is deductible if it is a business phone.

I agree with the other posters though, you need a tax professional to guide you. My company has a phenomenal tax and legal department who is there anytime I need them. Because I have been a bookkeeper for all of my professional life I will probably file my own tax return simply because I have the resources available to me if I need them. But generally speaking, I would recommend seeking a professional to guide you.Post edited by: cseagle, at: 2007/12/07 02:00

Hi freeenterprise,

Your article reminded me that I need to start planning how I am going to deduct all of these taxes. I was wondering have you heard of anyone who could deduct 100% of their expenses from their taxes. One of my members has claimed that he can do this. I was just wondeing if you heard any story like that?

BTW My name is Mark. I am from Maryland and it is cold. (in the single digits)

[Mark Fuller Contribution Level: 3]

I personally keep copies of everything. Keep this in mind for telephone bills. The regular monthly bill part of your phone bill is not deductible, only the long distance calls associated with your business or the flat rate long distance whichever way you pay for your long distance. If you want your entire phone bill to be deductible you have to have a business phone that is separate from your home phone and it can only be used for your business. Your cell phone is deductible if it is a business phone.

I agree with the other posters though, you need a tax professional to guide you. My company has a phenomenal tax and legal department who is there anytime I need them. Because I have been a bookkeeper for all of my professional life I will probably file my own tax return simply because I have the resources available to me if I need them. But generally speaking, I would recommend seeking a professional to guide you.Post edited by: cseagle, at: 2007/12/07 02:00

Hi freeenterprise,

Your article reminded me that I need to start planning how I am going to deduct all of these taxes. I was wondering have you heard of anyone who could deduct 100% of their expenses from their taxes. One of my members has claimed that he can do this. I was just wondeing if you heard any story like that?

BTW My name is Mark. I am from Maryland and it is cold. (in the single digits)

[Mark Fuller Contribution Level: 3]

I personally keep copies of everything. Keep this in mind for telephone bills. The regular monthly bill part of your phone bill is not deductible, only the long distance calls associated with your business or the flat rate long distance whichever way you pay for your long distance. If you want your entire phone bill to be deductible you have to have a business phone that is separate from your home phone and it can only be used for your business. Your cell phone is deductible if it is a business phone.

I agree with the other posters though, you need a tax professional to guide you. My company has a phenomenal tax and legal department who is there anytime I need them. Because I have been a bookkeeper for all of my professional life I will probably file my own tax return simply because I have the resources available to me if I need them. But generally speaking, I would recommend seeking a professional to guide you.Post edited by: cseagle, at: 2007/12/07 02:00

Hi freeenterprise,

Your article reminded me that I need to start planning how I am going to deduct all of these taxes. I was wondering have you heard of anyone who could deduct 100% of their expenses from their taxes. One of my members has claimed that he can do this. I was just wondeing if you heard any story like that?

BTW My name is Mark. I am from Maryland and it is cold. (in the single digits)

[Roger Robinson Contribution Level: 1]

Are you Ready to give yourself an Immediate $4000- $7000 per year pay Raise?

If you don’t have your own Legitimate Home-Based Business, you are literally
throwing away thousands of dollars every year.

SPECIAL ALERT to Home-Based Business Owners

Congress has passed laws giving THOUSANDS of DOLLARS in Tax REFUNDS and Tax DEDUCTIONS to average Americans who operate a legitimate home-based business – even a part time business – as long as they can prove they're trying to make a profit.

These are NOT “loopholes,” or “tax dodges” or “tax avoidance schemes.”

They are legitimate tax breaks...

Authorized by Congress, Published in the IRS Code, and/or
Approved by Federal Tax Court Rulings

Congress passed these tax laws to encourage home-based businesses because “Small business is the backbone of the American economy,” according to President George W. Bush.

The average American who runs even a part-time home-based business can now qualify for more tax advantages than any other category of taxpayer,” according to Ronald R. Mueller, author of the bestseller It's How Much You KEEP, That Counts! Not how much you Make.


The source of this information is Ronald R. Mueller, MBA, Ph.D.
His website is: http://www.homebusinesstaxsavings.com/





The Work at Home Online Mentoring Club I use is: http://www.EZSuccessFormula.com