Secrets the IRS Does Not Want You to Know
Secrets the IRS Does Not Want You to Know
by Collin Almeida
For average Americans, taxes are the single largest bill they
will pay. Almost 40% of every working person's wages go to
taxes: that's more than most people pay in utilities, rent, car
loans, or education expenses. And while the burden of most bills
can be lessened by working harder and earning more money, the
tax liability only increases, so earning more money just equals
paying more taxes.
Most Americans don't realize that Uncle Sam's piece of their
hard-earned pie is so enormous. After all, the amount is divided
into a number of small deductions: federal taxes, state taxes,
county taxes, Medicare, social security, and so on. Each
individual chunk looks like a reasonable price to pay in order
to keep the country operating smoothly, but when added together
the sum is staggering. The majority of people resign themselves
to a lifetime of working too hard for someone else, paying too
much in taxes to the government, and then struggling to maintain
a comfortable life after retirement. But they've been
brainwashed! The truth is every person can learn to work less
and keep more of their earnings, not by cheating the IRS or by
hiring a staff of overpriced accountants, but simply by
following the American Dream and becoming an entrepreneur.
Business owners, especially those with a home office, have a
tremendous advantage over the average working taxpayer. While
most people pay taxes on the total amount they earn, business
owners only pay taxes on the amount left over after their
expenses. Imagine being able to deduct work- related
transportation and clothing expenses from a paycheck before
taxes come out. Imagine being able to write- off the rent,
utilities, remodeling, and cleaning expenses every April.
It is possible. Business owners can legally deduct all of these
expenses from their revenue before Uncle Sam comes to collect
his fee, and so can the average American simply by starting a
home-based business. For home-based operations, the IRS treats
home and living expenses as tax-deductible business expenses.
These eligible expenses could include the following:
Furniture Landscaping Postage Meals Travel Newspapers &
Magazines Phone Bills Computers Insurance Donations Cleaning
Services And much, much more
The average person could save $5000 or more in completely legal
tax deductions like those mentioned above.
While keeping more money in their own pockets sounds like a
blessing to most Americans, few people believe it could be that
easy and that legal. But it really is. And it doesn't take an
accounting degree or an MBA to understand what the government
will allow nor does it require a separate clerical staff to keep
records of the deductible expenses. All it requires is time,
organizational skills, and a desire to lower the yearly tax
responsibility substantially.
Time is essential. It will require time to set up a home- based
business and to begin generating a stream of profit. It also
takes time to study the tax laws relating to business expenses.
Unfortunately, many people are unwilling to expand the initial
effort required. They prefer to make their $5000 the
old-fashioned way: by slaving away for forty hours or more a
week to make someone else rich. In reality, the time commitment
of starting a home-based business is considerably less and is
required only once.
Organization skills, however, are an ongoing necessity. Records
must be kept of all deductible expenses and all
business-generated revenue in case of an audit. Even though only
.5% of taxpayers are audited a year, record- keeping will turn a
stressful, time-consuming hassle into a temporary inconvenience.
Record keeping is as simple as balancing a checkbook and can be
effectively handled through various computer software programs
or with the aid of a notebook and a pencil.
Most important is the desire to become free of the burdensome
tax-harness yoked around each worker's neck. While most pay
their nearly 40% every week without question or complaint, every
one of them have the potential to achieve the true American
Dream: financial freedom and a lighter tax load.
-----------------------------------------------------------------
Discover little known but highly lucrative tax advantages you
can legally claim as a home based business owner by visiting
http://www.homebusinesstaxsecrets.com Get the FREE REPORT: "5
Hidden Tax Dangers..." that shows you how to save $1000's in
taxes and avoid costly audits.