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Read About Taxes Below
THE MOST OVERLOOKED WAY TO LEGALLY DECREASE TAXES IN 2005
By Tim Merrell, the Dental Guy
copyright 05-2005
I rushed upstairs dodging the toys, two small children and a border collie. I grabbed the phone just before the answer machine kicked on. “Do you know how much I had to pay IRS this year?” was the question. Before I had a chance to answer, my sister revealed the details. The next question; “How much did you have to pay?” Once again, she spoke before I could answer. Then with a sigh, she said, “I don’t understand how taxes work.”
I explained that if she started a part-time home based business, not only could she get benefits of tax write-offs, but any loss she may incur in the first years of business would be deducted from her husband’s income.
“Oh you’re talking about one of those MLM type businesses, aren’t you?” She coldly questioned.
“Not just any MLM business, but one that would give you a residual income.” I answered.
“What’s a residual income mean?” She asked, now with interest in her voice.
“In most businesses, you sell a product, and hope that client continues to buy the product. Therefore, you must market that client each month. However, in my business, you sell one time, and get a check every month without ever having to re-sell the product again to the same customer. In essence you make money, while you sleep.”
“You mean like web hosting, or internet services?” She inquired.
“That is one type of product, but selling that stuff, is usually best handled by techie types, only because of the technical questions people ask. Actually, I’m talking about a company that has been in business since 1992, and pays a commission rate of 30%.”
“No one pays a 30% commission,” she flatly replied.
”There is a company that does, and I’m getting checks.” I continued. “Also, I get a check every month, even if I quit selling. That’s a true residual income, and I am building a retirement income.”
“Hmm, but how will that help my taxes?” She cautiously questioned.
“Okay, if you become a broker, then all the supplies you use, such as printer ink cartridges, paper, brochures, your phone line, equipment, and your mileage traveled pertaining to business become write-offs.” I gave her the following example.
“My biggest deduction each year is business miles. This is a great deduction available to those of us who are self-employed, and maintain a mileage log. Let say, you travel from your home to a potential client’s office or home. The distance between the homes is 20 miles round trip. As of 2004, you can write off mileage at the rate of 37.5 cents a mile. That’s correct, 37.5 cents a mile. That little trip, allows you a tax deduction of $7.50 and the icing on the cake; you get the client.”
If my sister started a home based business, then money spent while she was learning the ropes is a tax write-off. She could learn a new job, with free training, and actually start making a monthly income, that could build into a source of retirement income, while she worked at home.
That is how I started self-employment. I can legally deduct my $35.00 monthly broker fees, and other business expenses. My family receives dental and vision benefits, office supply discounts, Dell computer discounts, grocery coupon booklets, Lifeguard Nurse Line, and use of the legal and financial library, with more than 5,000 accounting forms and agreements. If you are tired of writing tax checks to the government, CLICK ON THIS LINK and start building your residual income. Want to talk first; call me toll free at 888-858-3778. My motto: Thrive in 2005.
About the Author
Tim Merrell, dubbed "The Dental Guy" brings his years of expertise in the employee benefits' industry. He can be reached toll free at Related Links:
Taxes as a Competitive Advantage in the Global Economy
Taxes Taxes Taxes Who Really Pays The Most
Are You Overpaying Taxes If You Use Tax Preparation Software
Alabama
Get The Facts on Debt!
Repossessions, wage garnishment, property seizures and foreclosures are words which strike fear into the heart of every consumer.
The general assumption is that overdue debts will result in these drastic measures. Sure, if you've put up property as collateral on a loan which you are unable to pay, it will typically be seized or repossesed. But the same does not necessarily hold true for unsecured debts. In reality very few creditors will ever push for garnishment on small unsecured debts. Garnishment and seizure are a creditor's most effective weapons to collect an outstanding debt, but they are also very expensive and time-consuming to the creditor. While it is within the creditor's legal rights to pursue collections through any of these means, the cost of recovering a debt often exceeds the amount of the debt itself, and so it's not always cost efficient to force a collection.
Sadly enough, in the United States alone thousands of bankruptcies are filed every week in response to collection efforts on unsecured debts under $5000. Consumers are so intimidated by creditors that they fold under the perceived pressure, resorting to bankruptcy as a means of escaping an unsecured debt. If these same consumers had simply ignored the threatening letters and intimidating phone calls, they would have discovered that most creditors are all bark and no bite. Bankruptcy is arguably the worst type of negative listing you can have, and it is almost certain to wreak havoc on your credit report for the next ten years. You should therefore consider a bankruptcy lawyer only as a last resort, and possibly never as an option to escape a relatively small, unsecured debt.
