What is the reason you spend all that time on the internet and not have an internet business? An internet business is a business that can give you all the advantages of any other business. A J.O.B (Just Over Broke) won't give you any control over your future because it is in the hands of someone else. Your dreams and goals can be accelerated when you take control. What's more you can take advantage of tax strategies not available to an employee AND you can take advantage of them even while you are still employed by someone else. Why let Uncle Sam accumulate your hard-earned wealth to his coffer? Why not get the tax advantages of the big corporations for yourself?
When starting a business online one must begin with a separate legal entity such as an LLC or a C-Corp. I have used separate C-Corporations for many years as I have established different businesses. They carry inherent limits on personal liability (if proper records are kept and the corporation is compliant) and they offer all the advantages that large corporations are given when considering tax. There are 5 basic deductions one can take in a C-Corp, they are: 1. Business Entertainment such as business meals both with local clients and when you are out of town, 2. Travel, when related to business, 3. Gifting, 4. Home Office and 5. Vehicle expenses.
Business entertainment must be documented as to the "who, what, when, where and why" in order for the deduction to be legitimate. The meal or entertainment must be with business customers or clients unless you are out-of-town then it comes under a different rule and becomes an out-of-town expense. Just think of the many potential business customers or clients you know that qualify if you get a referral from them or introduce your business to them.
You can still deduct travel for the purpose of conducting business. Like entertainment, it must be documented and be for a legitimate business purpose. Conventions or meetings for corporate events are deductible to the corporation.
Gifting under the statute must be under a specific amount (see IRS rules for gifting) and to a business customer or client. This amount can change and it is a good idea to check the rules before making the gift.
Home office is where many of us get into trouble. The IRS has strict rules of how to document the area in your house and what you can have in there to qualify. You must track actual overall home costs such as sewer, water, power, gas etc. and then take the percentage used by the home office as the actual deduction.
Deduction of vehicle expenses is the best! When you travel from a place to a place of business you can deduct either the actual expense or the mileage. The mileage has been as high as 55 Cents per mile in 2009 and is adjusted as the price of fuel fluctuates. At the time of this article, $0.50 per mile is the deduction. If your business travel is say 100 miles per week, that is $50 per week you could deduct from the business income. In a year that could be as high as $2,600! Sometimes being smart about saving money is much easier than earning it.
Well, what are you waiting for? An internet business is a legitimate way to begin taking advantage of deductions that you can't take right now. Besides, you will need the income of the internet to propel you into retirement!
When starting a business online one must begin with a separate legal entity such as an LLC or a C-Corp. I have used separate C-Corporations for many years as I have established different businesses. They carry inherent limits on personal liability (if proper records are kept and the corporation is compliant) and they offer all the advantages that large corporations are given when considering tax. There are 5 basic deductions one can take in a C-Corp, they are: 1. Business Entertainment such as business meals both with local clients and when you are out of town, 2. Travel, when related to business, 3. Gifting, 4. Home Office and 5. Vehicle expenses.
Business entertainment must be documented as to the "who, what, when, where and why" in order for the deduction to be legitimate. The meal or entertainment must be with business customers or clients unless you are out-of-town then it comes under a different rule and becomes an out-of-town expense. Just think of the many potential business customers or clients you know that qualify if you get a referral from them or introduce your business to them.
You can still deduct travel for the purpose of conducting business. Like entertainment, it must be documented and be for a legitimate business purpose. Conventions or meetings for corporate events are deductible to the corporation.
Gifting under the statute must be under a specific amount (see IRS rules for gifting) and to a business customer or client. This amount can change and it is a good idea to check the rules before making the gift.
Home office is where many of us get into trouble. The IRS has strict rules of how to document the area in your house and what you can have in there to qualify. You must track actual overall home costs such as sewer, water, power, gas etc. and then take the percentage used by the home office as the actual deduction.
Deduction of vehicle expenses is the best! When you travel from a place to a place of business you can deduct either the actual expense or the mileage. The mileage has been as high as 55 Cents per mile in 2009 and is adjusted as the price of fuel fluctuates. At the time of this article, $0.50 per mile is the deduction. If your business travel is say 100 miles per week, that is $50 per week you could deduct from the business income. In a year that could be as high as $2,600! Sometimes being smart about saving money is much easier than earning it.
Well, what are you waiting for? An internet business is a legitimate way to begin taking advantage of deductions that you can't take right now. Besides, you will need the income of the internet to propel you into retirement!
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