- May 8th, 2013
- John Dillard
- Virtual CFO, Business/Tax Consulting, Financial Planning, Business Loans & Money Management
First and Foremost Advice is. Don’t start a home based business for the tax deductions. The only valid, just and smart reason to start a home based business is to make a profit and to provide a living for yourself and your family.
Home based business starts and success stories have soared over the years as the negative mystique of having a home based business has all but disappeared. With all of the advances of technology ranging from the Internet, laptops, e-mails, text messaging and cell phones you can now have a virtual office anywhere. In fact, the last statistic I saw in Gwinnett County indicated that nearly one-third of all of the local business’s were home based.
I recently fielded a call from an individual who was looking to start a home based business. They were hoping to start a business that was not only based upon the possibility of making money but also the probability of taking tax deductions and in so doing lowering your tax bill as a result. This has many financial and providential problems that include:
-Tax Law. Tax Law says that anything that one does solely to reduce taxes is not legal. Thus, if your sole desire is to created deductions out of thin air, not only is it against taw law, it will create tax problems rather than helping to reduce your tax liability. Thus, you will want to invest in ventures that are economically viable.
-Success. Foremost I want to succeed. I want to work with those who want to succeed. I want to have friends and associates who want to succeed. Secondly, I cannot feed my family with a tax deduction. The grocery store, the bank, my mortgage company or my car note does not accept tax deductions as valid legal tender. Set about surrounding yourself and using mentors who have succeeded and not those who attempt to “squeeze the system.”
-Prudence. In order to serve my family, my obligations and my Lord I have to have a means in order to provide for myself but also others. In these tough economic times, there are many of us who need special assistance with whom the profits of our labors cannot only benefit ourselves but also many who are less fortunate.
Being good stewards is a critical part of our “Faith Walk” and an essential component of this is being wise to those who would attempt to lead us down the path to our destruction. Seek out only investments and business opportunities where there is a proven, tracked and verified record of success as your best defense to sound financial planning. So next time you hear that “slick presentation” flee with your hands on wallet as you walk out the door!
Tax Deductions for Businesses
Finding (and Tracking) Business Tax Deductions
Whether you are a new business owner or have owned your company for years, missed business deductions are a consistent cause of concern. Discover new ways and methods to improve your business tracking skills. http://www.hiscpa.com/maximizing-deductions.html
Business Expense Documentation
Business expenses and their adequate documentation is key to running a successful business. Learning the ins and outs of what is required will both raise the efficiency of how you run your business and ensure that you always have proper documentation in the event of an audit. http://www.hiscpa.com/business-expenses.html
Handling Automobile Expenses
Vehicle expenses are perhaps the most discussed while still being the least understood of all the tax code sections. Read how this section of tax law can be made simple so that all might understand. http://www.hiscpa.com/autos.html
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