Have you ever heard the phrase, “Uncle Sam wants YOU”? Sure you have. I’ll bet however that you’ve never heard it expressed this way… Uncle Sam wants you to succeed…or how about this…Uncle Sam loves you and wants to put money in your pocket? Think I’m crazy? Let me explain. If you are a home-based business owner, your very own United States Government loves what you are trying to do and wants to help. That’s right. Home-based businesses contribute in a big way to the health of our economy. In fact, small businesses are the proverbial backbone of our economy. The financial growth and prosperity of our nation can be traced back to the growth and roots of small business. Because of this, Congress and state legislatures desire to help the growing millions of Americans who own home businesses to succeed with generous tax breaks and other ways to subsidize their home based businesses.
Going on the assumption that you are either now a home business owner or you are considering the possibility, the government loves you and wants to put money in your pocket. One of the biggest advantages of running your own home business is the tax advantages the government has put in place for you.
Consider this…
Let’s say you were in the market to expand the size of your home. Based on your budget, you know you can afford a home that will cost you about $ 1,500 per month. Since you are a home business entrepreneur, you can add to what you are going to pay for office space, say $ 500 per month, to what you can afford to pay for a home. Since you have your office in your home, you can allocate that money to expand what you could otherwise afford and get a larger home for you and your family and to accommodate your home business. Putting that money into your mortgage is a lot better than throwing it away paying a lease for office space. Not to mention, a very healthy tax deduction is in order for you because your business is based out of your home. Additionally, a percentage of the expenses it takes to run the home are tax advantages for you too like mortgage interest, insurance, taxes, utilities and more! Such deductions is like putting money in your pocket quarter after quarter after quarter. In effect, the IRS is helping you purchase your new home. Having a home-based business truly can be one of the best things you can do for you and your family.
Here’s another thought to consider…
Do you realize that you can break even or even show a LOSS in your business and still make thousands of dollars in the process? It’s all thanks to being a home entrepreneur. You may wonder how is this possible? It’s all a result of tax savings. Owning and running a home based business is one of the greatest and ever shrinking tax advantage shelters that American citizens have left.
Aside from the tax savings and advantages, owning your own business is your chance to say goodbye to potential caps to your salary, downsizing and the like. If you position yourself correctly, there’s no limit to what you can earn. The sky is truly the limit. Plus, the control of your own time is something that’s hard to put a value on. After all, you’re the BOSS! Naturally, you can start part-time like many people do or you can jump in head first and go full time from the get go. Be sure you have the wherewithal to take that leap though because as with any business there can be growing pains in the beginning.
When you take into account the lucrative tax benefits and savings along with the many benefits of being business for yourself, it’s easy to see why a home-based enterprise is so appealing to millions of Americans.
How does all of this work exactly? That’s a good question. One to specifically ask your accountant or tax advisor. What I can tell you is that there are numerous ways for home business owners to convert everyday expenses into tax deductions. Do you like to take vacations? As a home business owner, you may be able to deduct all or part of your vacation expenses if you can give your vacation a valid business purpose.
For those of you starting part-time while still working your current job, you can reduce your personal taxes on your income by offsetting your income with any loss you show in your business. How great is that?!?
Finally…
For this all to really mean anything to you as a home business owner or someone who is considering it, you want to make sure the IRS sees your enterprise as a real business and not just a hobby for you. Factors, such as your expertise, how you operate your business, the time and effort you put into it and so on determine whether your business is really a business or just a hobby. If your enterprise is truly a business, you can tap into a gold mine of tax benefits. Uncle Sam wants your business or potential business to be successful. It simply makes good sense to get one up and running ASAP! If you already have one, hopefully now you are more aware of the tremendous benefits out there for you to take advantage of. Despite the many mentioned here, there are more! Ask your account or tax preparer to help you make the most of your home business.
