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A Home Business Equals Lower Taxes
by: cincysam
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Word Count: 532
When the economy is slow or in recession, many people lose their jobs. This seeming negative occurrence calls for action. Some displaced workers start a business working out of their home.
Computer programming jobs were in high demand in America for several years. Then corporations discovered that they could hire programmers in India for one third of the cost of American trained programmers. Suddenly the job market for these highly skilled technical employees dried up. A number of programmers found themselves unable to find employment.
Several of these individuals found freelance work on the Internet. Others purchased businesses that they could run from a home office to support their families. When the supply of workers outstrips the demand, jobs are lost. The only real job security available is self-employment. There are many reasons for starting a home based business but self-employment has fewer risks than working for someone else.
Home based business entrepreneurs are continuing a tradition that began before the turn of the century. The economic center was based in the home prior to the Industrial Revolution. Agriculture was the major industry of the time. However agriculture process is seasonal. When the weather prevented these entrepreneurs from planting and sowing, they created cottage industries to supplement the family income.
Today this same spirit of creating a family centered economic base is the reason that home-based businesses are growing at a incredible rate. A home based business provides the potential for increasing the economic base of a family. The home based business provides a fertile training ground to teach children fiscal responsibility.
A home based business not only increases the income level for millions of families but there are some other benefits as well. Owning your own business proves a tax shelter for the money that you earn. The best way to get a large refund check from the government is to take as many legal deductions for your home office as possible.
The secret is that when you run a business from your home, regular expenditures become tax deductions. That expensive computer that you purchased initially for the kids becomes tax deductible. Every book, report or paper that you purchase to conduct business is an expense that can be deductible. These rules of tax deductions are in the IRS code.
To start a business you just state that fact to your tax accountant. To legitimize the business there are certain registrations requirements in your local area. Allow the professionals to take care of the legal stuff. When you decide that you are ready to go out on your own, you just tell the IRS and the world that you have started a home based business.
You will need a product and a website to conduct a business via the Internet. But starting the business is easy and smart. The IRS wants you to succeed so down the road when you make your first million, your tax bill will increase.
About the Author
Sam Crowley is a best-selling co-author and motivational speaker. You can see Sam's home business at http://www.defendyourdream.com.
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