Most people want extra money. They don't realize that 500-1,000 Extra dollars are theirs for the asking!
This report will show you how to get yours, your Instant Pay Raise!
Most people have never heard of an Instant Pay Raise. They do not even know how much income tax they paid last year!
How
much tax did you pay last year? See! If you are like most people, you
will say the amount of tax you paid on April 15. Others will say none,
they got a refund!
It is amazing that so many people are
unconscious of the fact that taxes are their biggest expense. In most
households, it totals more than housing, clothing and food.
To
figure out how much tax you really paid, look at your pay stub and
multiply the total taxes taken out, federal, state, local and social
security, then multiply by 12 or 52, depending on whether you are paid
monthly or weekly. Add or subtract any additional payments you made on
April 15 or deduct your refund from the annual total.
Shocked? You should be.
Ever
heard of "Tax Freedom Day?" That is the day in the year when the
average American has made enough money to pay his taxes for the year.
For
most of the country, it is, ironically, approximately April 15. For
heavily taxed North East states like New York and Connecticut, with
their heavier tax burdens, it can be as late as May, 25!
Think
about it. You are working on your job as much as 40% of the time, just
to pay your taxes. That translates to working Monday, Tuesday and until
3:15 PM on Wednesday, every week, just to pay your taxes!
Looked at another way, each day you work from 9AM-12:20PM just to pay your taxes!
How
would you like to be able to stuff a lot of that money back into your
wallet? You worked hard for it, don't let the government confiscate it,
especially when you see the preferential treatment others get from our
friend, Uncle Sam.
The business owner, as opposed to you, the lowly employee; is under a very different, very lenient income tax system!
Don't
believe it? What percentage of all of the income taxes paid in this
country by individuals and businesses is paid by corporations, you know,
big businesses, Exxon, Halliburton, Mobil, etc?
Seven (7) percent!
How
do they get away with that? Don't get me started! But rather than
complain, join them. As Robert Kiyosaki, the author of the Rich Dad
series says, it is easier to bend the system your way than to break it
If
you are a business owner, even the owner of a part time, home based
business, you can write off all of your necessary, reasonable and
ordinary (IRS lingo) business expenses. If there is any money left in
the business, you pay taxes only on that amount.
That means the
business owner has paid all of her salaries, travel, transportation,
benefits and entertainment with before tax income. If she has actually
spent more than the business brought in, as happens most of the time in a
new business, she not only has no income tax to pay, she can write off
the "loss" against other income!
Whoa! Did you get that? A
business pays all of its expenses and if they exceed its income, can
deduct that amount from other income.
OK, how does that affect you?
You
must have a business, even a home based business, such as a Network
Marketing business, "The Affordable Franchise," I call it. An Internet
based business is probably best featuring a product or service that
everyone likes and uses.
As long as you are trying to make a
profit and you follow the IRS's Byzantine rules on taking and
documenting your business expenses; which means you should not try this
without professional tax help, you can write off your business expenses
(necessary, ordinary and reasonable, of course).
The irony of this
approach is that you are already paying most of these expenses now; the
use of your car, entertaining, vacationing, etc. When you perform the
same activities with a business objective, they magically become
business deductions.
Example. You drive your family to the mall on
Saturday. That is clearly not a business expense. However, you stop to
make a sales call or deliver product to a client near the mall. That
trip now becomes primarily a business use of your car and the government
will allow you to write off approximately 36 cents per mile for
business use of your car. 1,000 miles equals a $360 write off.
You
go out to dinner with friends or do you take prospects or clients out
to dinner, see the difference? The government will let you deduct ½ of
the dinner's cost, providing you properly support the expense with
documentation.
Certainly in the beginning, when you are getting
your business off the ground, or you suddenly wake up and figure out how
to re-characterize more of your personal expenses, you will probably
lose money, at least on paper.
You will actually spend the same
money you were already spending on cars, entertainment, travel, etc. but
you cleverly gave them a business twist, so now they are deductible.
Remember,
when a business loses money the government allows it to write it off
against other income. Can you think of any other income you might have
to write off your losses against? Come on, think really, really hard!
What about your salary. Your job or self-employment income! Right on!
You can deduct your business losses against that income.
Depending
on the specific business you are in, your income, the size of your
family, (you can pay your kids to perform business tasks for you and pay
them a tax deductible salary as opposed to giving them an allowance!)
and the quality of your tax professionals, you could write off thousands
of dollars of your salary each year.
Those write offs reduce your
income taxes, meaning you would get a much larger refund at the end of
the year, right? But you are not going to have to wait.
You can go
into work the day after you start your new business (or after you read
this article!) and change the amount of tax withheld from your pay check
from that point on.
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