The Most Unused and Best Kept Tax Saving Secret…
Did you know there is a Taxpayers Bill of Rights and it acknowledges the desire to pay the least tax required? This is interesting because I think we usually think the Government wants to take as much as they can.
What if I told you that you can deduct some of the living expenses you have as a tax deduction..would that be of interest to you?
There is only one way that you can do this, and as I will show you, it doesn’t have to be a big deal to set it up either.
So what do I mean by “living expenses”?
Living expenses include the utilities you use in your home, your phone, up keep of your home, internet cost, and so on. I think you get the idea. There is a more extensive list below.
What if I told you, you would also be able to deduct some car expenses and eating out as well…I hope this is starting to look good to you..very good, because it really is.
I’ve been having these special tax advantages for years now, and personally feel everyone should have them. No one likes to pay taxes, so why not take full advantage of every angle.
So Renita, what are you talking about, what can give me this cool tax savings too.
Financial Expert Gail Vas Oxlade sums it up nicely:
She advises people start a Home business: however small…I have found the “however small” that anyone can do
This is really exciting for me because I know I have something that can help people save money and make money too.
The “However Small” can an MLM..a Network Marketing Company.( the one I am in is simple, you can do business in most places of the world, and it doesn’t cost a lot to get started and maintain your business month after month: CLICK HERE)
Being in an MLM simplifies being in business in ways that I believe you will really like.
The MLM company handles all the product distribution and money matters, all you have to do it let people know you are in business. You have full control of how you are going to do that, so you can do what you are comfortable doing. We have training to help you with all aspects of doing this.
There is more information on Working from Home : CLICK HERE
Back to the Tax Advantages…
You’d be surprised how this advice can help you keep more
of your hard earned income…for example:
My internet cost is over $600/year,
and 100% of that cost is allowed
in an MLM home based business because the use
of the intent is essential to being able to do the business
In the MLM I’m in, being able to deduct this puts more
money back in my pocket because of the tax deduction,
than if I was not in the MLM. One of the reasons for this
is that the monthly cost to the MLM company is very reasonable.
Being in a Home Based Business is the only way to take
advantage of being able to use expenses in the home
that you already pay, and be able to subtract them
as a tax advantage….this is a very simple way to
help you pay the “least tax required”.
In the tax form I have provided below,
there are 2 sections. The first at the
deductions that do not apply to business use of home
and the second section does.
In the first section (page 3),this is where you post expenses of:
~Meals and entertainment ( allowable..which is 50% in Canada)
~business fees, dues, memberships and subscriptions (autoships)
~legal accounting and other professional fees
~travel (including transportation fees, accommodations, and allowable part of the meals
~Telephone (long distance and portion of home phone and business cell phones)
~motor vehicle expenses
~capital cost allowance
~other expenses which include 100% of internet cost
The capital cost allowance may include higher cost items
such as computers.
Allowable deductions also include the initial cost to get started
When you go out and talk about your business..this is an allowable meal deduction
along with the use of motor vehicle. In Canada you can deduct 55 cents/km
for the first 5000 kms and 49 cents thereafter..this adds up!!!
I was told this by an accountant.
To calculate your deductions, the above are subtracted from your gross income in the MLM and if you have a profit after this, then you can deduct the business use of home which is on page 4 of the form.
If you do not have a profit, then you can save the business use of home
for future years and deduct it then..it has to be for the same MLM company
so it is advantages to find one you like and be in it for many years.
The business use of home is calculated by measuring the size of your home
or rental property and then measuring the space you use for your business
and depending on if it is a shared space for business and personal,
and this is taken into account in the calculation, then the % the business
is used is the % of the business use of home you can apply as a deduction.
The business use of home is an interesting list:
~insurance ( house insurance)
~maintenance…if you have repairs like plumbing
or need your roof replaced..these are good examples of maintenance
and cleaning supplies
~other expenses..such as water, drainage
One of the more recent discoveries is that
some home renovations are part of the
home maintenance in the business use of home.
So, for example, if you need to re-roof your
home, a % of this is a tax deduction with
an MLM home based business!
It might be helpful to see the actual Business tax form.
Here is the most recent Canadian Business Tax Form:
Here is the accompanying Guide:
If you use a local Tax expert to do your taxes..
this is also a tax deduction.
This very special way to save on taxes may sound like a lot of
effort and bother, but with the simple program I have to offer,
it is not difficult at all..and the advantages out weight the disadvantages.
The only difference is that you will need a way to keep track of your
expenses. I find it very interesting to see the yearly cost of my
utilities..and how they add up. Wouldn’t it be nice to offset that
with a tax deduction?
Being Canadian, I am more familiar with their tax system
but I think there are similarities in other countries too.
Get a hold of your business tax forms from your country
and see what advantages you have.
I will be adding info on the US Tax system,
here is a start: The IRS defines MLM…
Multi-level marketing. Certain companies sell products through a multi-level marketing arrangement, such that an upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based on certain activities of that lower-tier distributor. Generally, depending on the facts, payments from such multi-level marketing companies to independent (non-employee) distributors (upper-tier distributors) that are based on the sales or purchases of persons whom they have sponsored (lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. The source of such income is generally based on where the services of the upper-tier distributor are performed, and may, depending on the facts, be considered multi-year compensation, with the source of income determined over the period to which such compensation is attributable.
Hope this has given you an idea why people like the MLM business model..
it’s a penny saved is a penny earned financial model
All the best, Renita
Curious about what I am doing: CLICK HERE
This is a legal way to beat the taxman, and anyone can add this on with a simple business like 4 Corners.
This video mentions the monthly income when the Newsletter is used first, we have now changed our strategy and we start with Starien because you make money faster.