I read an interesting article this week that I wanted to share it with you. Before I reveal the source of the article, I’d like you to read it in it’s entirety. It highlights many of the benefits of owning a home based business including income opportunities, tax benefits, personal growth, and risks.

While you can take this “Top Ten” list and fit it into just about any home based business, it’s clear from the very beginning of the article that the author is speaking of a home based “travel business”.

Take some time to read this article and I’ll be back at the end, to enlighten you just who this intelligent, articulate and successful author is.

Enjoy!

As the economy continues to top the news, along with the constant doom and gloom that the media projects for the travel industry, some home-based agents may wonder what the future holds for them. However, judging by the number of calls that I get each week from people who are excited at the prospect of getting into the travel business, I would have to say that our future is bright.

It certainly is refreshing to see new agents discovering the benefits of running businesses out of their homes. If you’re looking to get out of the rat race, to spend more time with family and friends, and to live a more balanced life, a home-based business may be the right decision for you. Here are 10 reasons why it pays to work from home.

Personal freedom. If you’re used to spending hours in traffic every day to and from work, some of the most exciting advantages to starting a home-based business are your newfound freedom and the retrieval of lost time. The average American spends 348 hours each year commuting, according to the U.S. Federal Highway Administration. With a home-based business, you have those extra hours to regain control of your personal life. Plus, there are no bosses, no dress code, no set work schedule and no office politics. All you will need is personal drive, discipline, marketing and time-management skills.

You get to keep the money you make. It’s a simple principle: The harder you work, the more money you can make. Your earnings potential is directly proportional to your performance, so you don’t have to wait for a raise or a promotion. You’ll also save money on gas and food. Preparing lunch at home is more cost efficient and offers a nice break in your work day.

Increased opportunity. With so many corporations and industries in slumps, starting your own home-based travel agency means you can create your own income-producing opportunities. Good job prospects can be scarce in some industries, and promotional opportunities within major companies are also shrinking. With many workers now opting to take early retirement packages, becoming a travel agent is an excellent chance to take a passion for travel and turn it into a second career.

Less risk. Running a travel business from home takes much less startup cash than starting a storefront business or even a franchise location. Since there are no inventory or products to purchase, and the business is located where you reside, you don’t have the additional monthly expenses of rent or utilities.

Tax advantages. There are a number of tax advantages to having your home and office under one roof. Check with your tax advisor to see if he or she recommends deducting operating and depreciation expenses on your home as business expenses. This can be a percentage of your mortgage, property taxes, insurance, utilities and/or the expenses of household maintenance.

More time for friends and family. This is especially important for parents of school-age children. You can see the kids off to school and on most days be home when they return. Also, if someone is sick, it’s easier to leave your desk at home than in an office.

Less stress. It’s a little less stressful to juggle the demands of work and family when you know you can stay home to care for a sick child and generally make appointments according to your own set schedule. Also, you can schedule new appointments on the same day as other events on your calendar. For example, if your weekly networking meeting is on Tuesday, set as many other appointments on that same day, even if it’s just a trip to the dry cleaner.

Opportunities for professional growth. Being your own boss gives you the chance to wear a lot of hats: sales director, marketing professional, strategist, business development manager and more. This gives you experience with all aspects of running a business.

Increased productivity. Now that you no longer have to budget time and energy for commuting or a succession of useless meetings, you should have a lot more time and energy to make your business a success.

A creative outlet. Your home-based agency can be an opportunity for you to give birth to your passion and create a money-generating opportunity. You can try out new ideas, take risks and run the business in exactly the way you want.

Now if this sound like a big MLM pitch, you could be right. Not only have I written about many of these subjects here over the years, I’ve seen several ads and articles that relate directly to MLM promoting the same features, advantages, and benefits of running your own home based business with YTB. (Or other MLM Business)

But before you go writing this entire article off as some lame MLM pitch to get you to fork over a bunch of money to an MLM opportunity, or think the tax benefits and income opportunities are somehow misleading or deceptive, I’d like to introduce you to the source and the author of this wonderful piece.

Anita Pagliasso is not only the author of “No Place Like Home” found in the September issue of Agent @ Home, but is also the author of a book called, “How I Made a Small Fortune as a Home Based Travel Agent“, which includes a CD that contains Anita’s tool box for Home Based Agents loaded with forms, letters, disclosures, disclaimers, and templates for the Home Based Agent. In addition to her articles and book, Anita is an Executive Board Member of PATH (Professional Association of Travel Hosts) and also hosts a very informative web site surrounding the Home Based Travel Business called Ticket 2 Travel.

I got to ask…do you see any real difference between what you’ve seen on this blog or in my Newsletter and what’s in this particular article? Can you find anything in this article that you can’t find in YTB or another general MLM? (Taking the “travel aspect” out of the equation of course)

Makes you wonder why Anita gets a pass and MLM’ers get all this flack about being misleading and deceptive doesn’t it?

Keep this article handy next time you see another emotional outburst about the benefits of owning your own Home Based Travel Business.

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Do You ZamZuu?

I had something else ready to post this morning, but found a fairy tale that was just WAY to funny that I needed to share with you. It never ceases to amaze me how low some people will go to bend and twist documentation in an effort to pitch their own perceptions and limiting beliefs.

It’s no secret that there is a segment of our society that think rich people are greedy. Because this segment of society has never actually known anyone that thinks in terms of “net worth” instead of some “hourly wage”, this same segment also assumes that rich people got their money through unethical and dirty business practices. It’s one of those social memes I wrote about some time ago.

Now, take the myths and social memes surrounding rich people and combine it with Network Marketing and you’ve got yourself one heck of a double whammy when it comes to anger, bitterness, and resentment.

Case in point, our very own J. Lloyd Tomer.

While Coach is certainly loved and admired through the ranks of YTB members, there is a segment of society who spend an exorbitant amount of time attempting to knock this man off his perch because he’s obtained his wealth through Direct Sales or Network Marketing. For those of you who don’t know his story, you can Google “J. Lloyd Tomer, AL Williams” to find his bio. Here is one on the first pages that I found on Portfolio.com. (emphasis mine)

J. Lloyd Tomer, Chairman of the Board of Directors, has been a Director of YTB since December 2004. He is the father of our Chief Executive Officer, J. Scott Tomer, and is a seasoned veteran of direct sales and marketing. After spending thirteen years in the ministry, he became an agent of the A. L. Williams Company (now known as Primerica Financial Services (“Primerica”) in January 1981. He achieved the level of Senior National Sales Director in 1985 and maintained that position through 2001. While at A. L. Williams he built a successful sales organization numbering in the thousands, whose combined life insurance sales was measured in the billions, with assets under management of $750 million. He sold his agency in Primerica in January 2002. Thereafter, Mr. Lloyd J. Tomer devoted his marketing expertise to YourTravelBiz.com, Inc. He attended Anderson College in Anderson, Indiana.

Here’s a guy who build an immensely successful organization with sales in the billions and assets in the millions through Direct Sales from 1981 through 2002 thanks to capturing the dream of Art Williams back in the early 80′s. Even after the sale of the business to his son Frank in 2002, the assets and money generated from this organization were used to help fund the start of YTB in the early years.

Fast forward to today, and we find a select few are upset with Coach, an outsider, for infiltrating their business segment with a bunch of Travel Agent wannabes’. (Or so they claim.) What we end up with are obscure twists on how this man attained his wealth, lived his life, and given back to the community.

I learned a long time ago from Harv Ecker that part of the rewards of being rich is the ability to donate money or assets to organizations and associations that are important to you. When you think about it, what makes a bigger impact – $10 in the offering plate or $10 million in stock options to pay off a mortgage? Obviously creating wealth can and does have a bigger impact for those who desire to make a difference in people’s lives.

Those of you who have met Coach, spent time with him, or listened to his leadership call’s: Would it surprise you that new documentation has come to light of Coach’s generosity?

In a link provided just this morning to a court document, it has been revealed that Coach and his wife Chris donated a parcel of property to Midwest Community Church in 1998 so that the Pastor and his family could have a parsonage (a home) in which the Rev. Casey, his wife, his son age 16, and daughter age 13 could live. The property was bought by Coach in 1995, and when Coach was elected as Trustee of the Church in 1997 he donated 100% of the use of this parcel to the church.

According to the document revealed we also found the condition of the property.

Initially the yard needed to be cleaned up. All of the lights outside the house had been broken. Inside the house there were numerous electrical problems that violated the electrical code and which needed to be corrected. The house had two furnaces. One furnace to heat each side of the house. A new natural gas furnace had been brought in to heat one side of the house. It was anticipated that natural gas would soon become available in this neighborhood. However, that did not happen.

The document also reveals that at the time the land was donated, Coach’s desire was to assist in the development and growth of Church’s religious organization. Pursuant to the agreement, this parcel could be used for any purpose the Church deemed appropriate, including but not limited to a parsonage, youth retreats, church administration, or marital retreats. In return, the Church was responsible for all expenses, repairs and maintenance costs, and was to maintain adequate insurance on this property, naming the Tomer’s as a loss payee.

Because I can actually read and comprehend the documentation provided, I can deduct that Coach was enjoying a tremendous amount of success and creating substantial wealth which enabled him to purchase the property in the first place. I can also conclude that the church obviously respected his financial position by appointing him as trustee to the church. I can also assume that Coach believes in sharing his wealth and supports religious organization with very generous donations to a number of church organizations.

Not a bad way to live your life if you ask me.

Now I know this is going to upset some of you, but I need to remind you that we’re not dealing with individuals who are playing with a full deck here. (Not the sharpest tools in the shed, if you know what I mean.) I do however think it’s important to reveal how desperate and delusional some people are when it comes to mud slinging and slandering individuals who they’re obviously jealous of. They need to peck and poke in an attempt to bring others down with an obvious twist on what actually happened.

I’d advise you that you put down any drinks or food at this point because it may end up on your computer screen. Here’s the introduction of the post I found this morning concerning what happened:

Once upon a time in a land far away, there lived a man in a ramshackle house. The house was in such bad condition, that the local authorities would not issue occupancy permits. When the time came to pay the tax man, the man in the ramshackle house could not afford to pay the property taxes.

Destitute and without too many options at his disposal, he turned to God and the Church. Knowing that Church property was exempt from taxes, he “donated” this ramshackle property to his Church for only a year who decided to worship on the property and to fix up the house for their minister and his family to occupy as a parsonage.

While I can’t disagree that this donation was a “tax deduction” for Coach and Chris, (donated in December of 1997) but to claim that Coach was destitute at this time with an AL Williams business generating millions, and an elected Trustee of the church is a pile of manure that only critics can step in. What makes it comical for me is the way this guy capitalizes “TRUTH” at the end of the post which links and documents what we’ve uncovered here.

The truth is, this “expert” doesn’t expect people to actually read the document he’s provided because he’s bend out of shape as the “be-all-and-end-all” when it comes to YTB. (Arrogant and cocky I know, but that’s what he thinks of himself.) What it turns out to be is yet another documented example of the lies, deceit, and misrepresentations that are plastered all over the internet to pitch Coach as some sort of scammer. If you look at the URL that links to the court document that clearly recommend that Madison County Parcel be exempt from real estate taxation in 1998 it’s linked by hims as http://www.singleparenttravel.net/wp-content/uploads/2009/08/Tomer-Church-Scam.pdf.

I might not be the best speller in the world and I’ve been known to make a mistake or two over the years. But at least I can read and comprehend what’s truth and what’s pure spin. And how are the critics going to answer to this blatant attempt to spin and slander? My guess is that what we’re going to find as a rebuttal is a dog’s tail isn’t spelled “tale” in an attempt to take the focus off them and back on our Founder in YTB and me.

Think it’s gonna work?

Me neither, but the faceless, nameless cowards who support this jerk as some type of crusader against the evil YTB will be jumping for joy that they’ve found more documentation and truth, when it’s obvious to me, their simply chasing their own “tales”.

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Do You ZamZuu?

Before we venture into today’s topic, I need to make something perfectly clear. When owning any business and using portions of that business for tax deductions, you need to consult a CPA on what can and can not be used as a deduction with the IRS. I’ve written several articles over the years on the possible advantages of owning a home based business when it comes to taxes. We’ve always considered our experience with YTB a business and have treated it as such from the very beginning. For us, owning a business requires added responsibilities, and additional checks and balances that come with the territory.

Using a CPA the last four years when filing our taxes is part of that responsibility.

What I have also come to realize from talking with and communicating on various forms, blogs, and social networking sites is this: Not everyone feels the same type of responsibility, or has the same understanding about tax deductions and the role of the IRS.

Average individuals will make claims of what you can and can not deduct based on what they perceive to be true, or what they’ve heard is legal or illegal. I would advise in this case that you either thank them politely or simply tell them to go pound sand. (I’d prefer the later for some individuals) Unless you consult a CPA, I’d be suspect of anything you read or hear when it comes to deductions, taxes and the IRS.

We’re all very well aware of the industries fascination with YTB. Not a week goes by without some trade magazine, news publication or both publishing something about YTB. As predicted, there has been plenty of kicking and screaming this week from those few critics I spoke about surrounding Travel Weekly’s Power List publication. It looks as if the same tired old questions will continue and excuses will persist for another year. If you question why there has been no resolution to the questions and the excuses after three years of debate, it’s not really about resolution. It’s about keeping the questions active for as long as possible in order to keep their own perceptions about YTB and its place as a second (third, fourth, fifth) rate host agency alive.

Granted, a resolution would end that game, but so would the daily participation on blogs, forums, and daily discussions which take up so much of thier time. By simply asking (and never resolving) these same tired questions, they are able to deflect the attention to someone or something else instead of looking at their own issues or looking a solution.

Another question that keeps popping up, but never seems to get resolved in our industry are taxes. Apparently if you are not involved in a Home Based Business, you are not aware of the literally hundreds of sources available that provide information on the tax benefits of owning a business like YTB. Yesterday, Mark Murphy with Travel Pulse brought up a situation that questions a broader effect tied to how a traditional travel business is perceived by the IRS. He writes:

Could the proliferation of travel hobbyists, who are in it for the “free travel” perks, be part of the problem? That’s a question being raised by Gawne and other legitimate agents around the country. The challenge comes down to distinguishing between someone who is running a travel business and someone who is simply trying to run around the world, albeit at a discounted or tax-deductible rate. Where does the line get drawn?

The disconnect here is the term “hobbyist”. A word used to paint a picture because of the MLM arm and the misconceptions and myths surrounding it. It’s not about travel for them, it’s about all the recruiting. Because of the ignorance, Mark and others do not consider my business anything more than a “hobby” and therefore I do not qualify for deductions as any other business would. Unfortunately for everyone who paints this picture they fail to realize that the tax code does not specify, nor is the IRS responsible for determining proper deductions because one is a traditional business and the other is an MLM business.

The editorial came very close but never mentions the term “profit motive” which would go a long way in clearing things up. “Profit Motive” is actually what the IRS looks at. But few are willing to accept the anyone in YTB can actually make a profit using the YTB business model.

Jeff Miller, a travel attorney in Maryland who is also a columnist for Agent@Home magazine helped specify for everyone that the IRS looks at deductions as “ordinary and necessary” as part of it’s qualification. According to Jeff, the types of expenses involved such as FAM’s are legitimate business deductions based upon the type of business activity conducted. Since YTB sells the same type of travel as any other agency would, I have my doubts that the IRS would make any type of distinction between the two business models simply because one has an MLM arm and one does not.

If, and this is a really big “if” here: If the IRS does consider YTB nothing more than “hobbyists” who pose as “travel agents” and we are using travel as a deduction, the industry has no one to blame but themselves for blowing this whistle. I’ve seen countless posts, blogs, and forums that not only link to the IRS but instruct anyone with a keyboard and internet connection with how to report what they believe to be improper deductions. As a result, there could be an entire class of occupation (Travel Agent) that is now a red flag for the IRS to investigate further. Their own fears, phobias, and misconceptions surrounding our business model and desperate attempts to rid their precious industry via any means they can think of is more than likely the reason if this is in fact the case.

Again, it’s doubtful that the IRS is actually doing this. But once again, the industries focus on what they perceive to be the problem not the solution would be the reason for any red flag here. Unless the IRS has a listing of which agency is MLM and which is traditional, there is no way you an expect the IRS to not lump everyone into the same category.

If some of these traditionalists would educate themselves and actually participate in the vast amount of webinars and courses available surrounding tax deductions and whats required to claim and document the deductions it would certainly help in resolving their issue. Mark did go as far as checking with someone who is actually qualified, but doesn’t appear to make any connection with what’s legal and ethical because he can’t get past an MLM stereotype, which Mark and others apparently have determined as unethical.

Using the IRS is nothing more than a ploy to cast doubt and fear when it comes to Travel MLM’s. Mind you, the traditional agent in question here should be able to document legitimate business deductions based upon the type of business activity he is involved with. A qualified CPA can address the issues directly with the IRS and explain how this is ordinary and necessary in the travel industry. As a result, the IRS will allow the deductions.

No harm, no foul.

So why is this even a concern? It’s not.

It is however another example of ordinary myths and misconception and the actions they feel are necessary to feed the anger and resentment towards YTB and Travel MLMs.

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Do You ZamZuu?

Most of you who keep track of mileage like I do knew about the increase January 1 to 50.5 cents per business mile. In a rare move on Monday, the IRS approved an eight (8) cent increase in the rate mid way through the year starting July 1 to 58.5 cents per mile through December 31. This increase is in direct response to the higher fuel costs everyone is incurring. This new rate by the way is only valid for the last half of the year. (Previous mileage from January 1 through June 30 must be deducted at 50.5 cents per business mile.)

The IRS normally increases its mileage rates once per year, and did so this past year from 48.5 to 50.5 cents starting January 1st. The last time the IRS approved a rate increase such as this mid way through the year was back in 2005 after Hurricane Katrina led to a nationwide spike in gasoline prices.

The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by Congress, not the IRS, and remains at 14 cents per mile.

“Rising gas prices are having a major impact on individual Americans,” said IRS Commissioner Doug Shulman. “We want the reimbursement rate to be fair to taxpayers.”

Imagine that…the IRS wanting to be “fair” to taxpayers. I’ve heard it said that there are two tax laws here in the US.

One code for the informed; and one for the uninformed.

I constantly read comments from extremely fearful and uniformed individuals who think the IRS is out to get people. Any idea of legally and legitimately deducting anything on your tax returns concerning a home based business is a highly risky move. While I have never personally been audited, those I know of who have been audited, (including those in YTB) have told me that it’s highly overrated. Of course, they like me keep impeccable documentation and also have a Professional prepare their returns, as should you.

Those of us in YTB know of Andy Magnus and his site Your Tax Buddy, (Another term for Y-T-B.) and the discount we have with H&R Block with our RTA Advantage. I also know of several CPA’s who are cross line to me who understand the tax laws and what a home based business can do for anyone who owns one.

Back in February and March many people bought Ron Mueller’s book “It’s How Much You Keep That Counts” and I’ve also participated in some of his seminars and conference calls with tips on exactly how to document for your CPA and the IRS to keep things on the up and up. (Ron is the one who send me the special update via e-mail concerning this rate increase complete with a direct link to the IRS site.) Ron and Andy also cover how to ask the right questions when looking for a CPA that knows and understand what the tax laws mean for anyone who owns a home based business.

I can’t tell you how important it is to educate yourself on the in’s and out’s of tax savings in a home based business. Not doing so can cost you THOUSANDS a year paying Uncle Sam instead of keeping your own hard earned money. This country was founded on those that owned their own business, and the vast majority of tax laws still cater to business owners.

It’s the right thing to do for both you and your family.

Author’s note: If you’d like to see a perfect example of what I’m talking about concerning those who are uneducated about the tax laws and what it can do for you in a home based business, feel free to visit this post, which I found just before posting. Please understand that this blog poster and those who comment on it have absolutely no experience or education in tax codes or the IRS.

It’s your basic fear mongering, mud slinging and spin in an attempt to create doubt and fear in those who don’t take the time to educate themselves from qualified sources. (That’s why I post viable sources and documentation to find the real story here.)

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I’ve done a post about taxes about this time each of the last two years, and this year will be no different. There seems to be a bit of a buzz this year concerning the 2008 Economic Stimulus Package that is due out next month. I’ve said for many years that there are two tax codes; one for the informed, and one for the uninformed.

The principle involved here is time-honored and true: and that is — it’s your money.
~ Robert Dole

We often just take what we hear from others as fact without actually checking to verify for ourselves if what people are telling us has any merit. The media in the case of this Economic Stimulus Package is no different from what I’ve seen and has been feeding us information in bits and pieces, but here’s the part the media has overlooked.

No matter how Washington tries to spin this, it is NOT a tax “rebate.” If it was a rebate, how could people who paid-in no taxes, get a rebate? But most of them will.

Lately, they’ve begin calling it an “advance on our 2008 taxes.” If that were true, why would they also be telling us that if we don’t owe any taxes in 2008, they won’t take any of this “Stimulus” money back?

This 152-BILLION-DOLLAR bail-out program is an “unfunded government expense” — which is a term in “government-ese” meaning: “We don’t know how we’re going to pay for it.”

So, if it’s not a “tax rebate,” why is the IRS involved? They’re the only federal agency with accurate names and addresses of most legal citizens, so they have the best “system” for distributing the checks.

But the IRS doesn’t have a current address for every legal adult citizen, because some people are not required to file tax returns — retirees living on Social Insecurity, for example. But Congress has decided that the only way a person can get an Economic Stimulus check, is to file a 2007 Tax Return.

So those folks who don’t normally have to file, will be required to file a “special” tax return this year (called a Form 1040A). If they don’t file it, they won’t get a check.

Result? The feds will soon have a database of current addresses for nearly 100% of all adults in the U.S.

Can you say “Big Brother?”

Here’s another neat little feature of this program that most people haven’t been told. When they have your Social “Insecurity” Number (from your tax return) their computer will take a look to see if you happen to owe any back-taxes. If you do – they will automatically do you the “favor” of applying your “rebate” towards the back taxes you owe, instead of sending you a check.

Is there no end to how far our taxpayer-elected members of Congress will go, just to help us stay caught up in paying our taxes? Like I said, two tax codes; one for the informed, and one for the uniformed.

One final point.

How big a deal is this one time economic recovery bribe of $600? The average taxpayer running a home-based business and who understands the home-business tax breaks, is collecting additional tax refunds of up to $600 every month – not just one time.

The same Americans who are so excited about getting a one-time payment of $600, should understand that they can get a check about the same size every single month for the rest of their working lives – simply by having a legitimate part-time home-based business. That’s what Congress should be telling taxpayers, not “Here’s an unearned check; go spend us out of a recession.”

Are you about to lose out on some 2007 tax deductions because you didn’t keep accurate records? Do you even know what kind of records you need in order to make them legitimate?

I have a few ways for you to find out if you do or don’t.

One, find yourself a good tax professional. One that is qualified in helping you in your Home Based Business and the tax laws surrounding what is right and what is wrong.

Two, to help you figure out if your Tax Professional knows anything about Home Based Business tax laws, get this book from Ron Mueller, “It’s How Much You Keep That Counts”. If you want to find out some of the information found in this book, you can find a basic outline from last years post after I bought the book for our own business.

Three, On Tuesday, April 8 at 9:00 pm Eastern time (6 pm Pacific), Ron Mueller will conduct a special, Tele-Coaching Session devoted to the topic of How to “Reconstruct” Missing Documentation that will Audit-Proof Your Tax Returns.

There is no charge for this call. The call-in number will be 419-400-0203, and the access code will be 8683900#.

When all call-in lines are filled up (and they will be) you can join via the Internet by going to this special web link.

If you’re in YTB I would also recommend signing up for our FREE Newsletter for news and updates concerning the steps you need to take in order to keep your business on the up and up concerning the tax laws. (I posted several tax specific webinars from various professionals as early as January of this year.) In addition, we share other tips and tricks for you on how to make your experience with YTB a success.

Well, that’s it for today. The kids and I are going to be enjoying Spring Break this week together. They’ve been working really hard in school all year, and they’re looking forward to spending some time with Dad!

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

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Do You ZamZuu?

Back around tax time this past year, I did a post on tax tip’s for owning a home based business, based on Ron Mueller’s book “It’s How Much You Keep That Counts!“. I just got word about a FREE webinar from the Tax Guru himself for this Sunday night, September 16th, @ 9:00 PM Eastern Time Zone.

While the Travel Industry and YTB certainly has tax benefits all it’s own, you may find this information useful if you are currently working from home, or considering starting a home based business. Ron’s book certainly opened my eyes to what I can claim legally with the IRS by converting what I considered personal expenses into a business expense. It’s saved us THOUSANDS each and every year we’ve been using the information and tips Ron has supplied.

Some of the topics will include:

~ Increase Your income Without Asking For A Raise!
~ Save $500 For Every 1000 Miles You Drive!
~ Create A Bullet Proof Record Keeping System!
~ Hire Your Children, The Right Way!

System Requirements:

PC-based attendees
Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh®-based attendees
Required: Mac OS® X 10.3.9 (Panther®) or newer

If you’d like to participate in the webinar, feel free to contact me and I’ll forward the information to you. But hurry, space is limited and filling up fast!

Hope you can join me on the call!

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

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Last week I posted how a home based business can help reduce your tax burden. After starting our Home Based Business two years ago, I quickly found out how some of the ordinary personal expenses, can now move into a business category, simply by starting a home based business. I started to look at every expense I made and asked, “How can this expense benefit my business?”

I also looked at other expenses that came up because of my business and made the expense a much easier to make because I knew it was business related and could now qualify as a deduction. This long term thinking actually helped in generating revenue I could actually use and spend in the short term.

Qualifying

It’s easier than you think to qualify many of the ordinary expenses you make and turn them into business expenses. Check each of the statements below that accurately reflects your situation.

Category: Self-Employed Business Expenses

Deduction: Advertising

- I paid for advertising expenses related to my business.
- The advertising was ordinary and necessary for my business.
- I paid for public service advertising which relates to expected future business gain.
- The purpose of the advertising was not to lobby or influence legislation.

Deduction: Bad Debt (Business)

- I was unable to collect money owed to me or to my business.
- The debt arose because of my trade or business or was closely related to it.
- The debt became partly or totally worthless during this year.
- I have previously included the uncollectable amount in income, or it was a cash loan.

Deduction: Self-Employed – Gifts

- I gave gifts to business customers, clients or employees in the course of my business.
- The expense was both ordinary and necessary for my trade or business.

Deduction: Self-Employed – Entertainment

- I paid for entertaining clients, customers or employees.
- The expense was both ordinary and necessary to my trade or business .
- The entertainment was directly related to the active conduct of my business.
- The entertainment directly preceded or followed a substantial business discussion.
- The expense was not lavish or extravagant under the circumstances.
- I kept adequate records of my expenses.

Deduction: Self-Employed – Meals

- I paid for meals related to overnight travel, entertainment or employee benefits.
- The expense was both ordinary and necessary to my trade or business.
- The meals were not lavish or extravagant under the circumstances.
- I kept adequate records of my expenses.

Deduction: Car and Truck

- I used my car or truck in my business, or reimbursed my employees for car and truck expenses.
- If employees used my company car, I allowed only business use, or reported the personal portion of their expenses on their W-2 as compensation.
- I kept written records.
- The vehicle is unlikely to be used for personal purposes (such as a delivery truck that seats only the driver).

Deduction: Cost of Goods Sold

- My business manufactures products or purchases them for resale.
- I maintain inventories in order to determine the cost of goods sold.

Deduction: Home – Business Use (Self-Employed)

- I regularly used part of my home in connection with my trade or business.
- The business part of my home was used only for business, or to store inventory or product samples for a business selling products; or I had a day-care business in my home.
- I used the business part of my home as my principal place of business.
- I used the business part of my home to meet or deal with patients, clients or customers.
- The business part was a separate structure, not attached to my home.

Deduction: Insurance

- I paid for insurance premiums for the protection of my business.
- The insurance was ordinary and necessary to my trade or business.
- The premiums were not for life insurance on my own life, self-insurance reserve funds, or a loss-of-earnings policy.

Deduction: Interest – Mortgage

- I paid interest during the year on debts related to my business.
- I am legally liable for the debt.
- Both the lender and I intend that the debt be repaid, and we have a true debtor-creditor relationship.
- The debt is secured by property I own (if not, see Interest-Other).

Deduction: Interest – Other

- I paid interest during the year on debts related to my business.
- I am legally liable for the debt.
- Both the lender and I intend that the debt be repaid, and we have a true debtor-creditor relationship.

Deduction: Legal & Professional Services

- I paid legal, accounting and other fees directly related to operating my business.
- The expenses were ordinary and necessary for my business.
- The fees were not paid for work of a personal nature (such
as making a will).
- The fees were not paid for preparing that part of my tax return not relating to my business as a sole proprietor.
- Legal fees were not paid to acquire business assets (those should be added to the cost of the assets).

Deduction: Repair and Maintenance

- I spent money to keep my business property in normal, efficient operating condition.
- The expenses don’t add to the value of the property or significantly increase its life.

Deduction: Start-Up Costs

- I spent money to set up an active trade or business or to investigate creating or acquiring an active trade or business.
- The spending occurred before I began business operations.
- The costs would have been deductible if paid to operate an existing trade or business.
- The costs were common and accepted, as well as appropriate and helpful, in my business.
- I will deduct the costs in equal amounts over a period of 60 months or more (“amortize” them), beginning with the month I began business operations.

Deduction: Supplies

- I consumed and used materials and supplies during the tax year as a part of my trade or business. (The cost may include books, professional instruments, equipment, etc. that are normally used up in less than a year.)
- I have accounted for inventory of supplies and materials on hand at the beginning and end of the tax year.
- I don’t keep a record of when supplies are used, I don’t take an inventory of the amount on hand, and this method doesn’t distort my income.
- The use of the supplies is common and accepted in my field of business, and appropriate and helpful for my business.

Deduction: Taxes & Licenses

- I paid federal, state, local and foreign taxes and license fees directly related to my trade or business.
- The taxes were ordinary and necessary to the conduct of my business.
- Taxes paid on behalf of others, such as sales tax collected from customers, have not been included in gross income and are not deductible.

Deduction: Travel (Self-Employed)

- I spent money – for myself or my employees while traveling on business.
- The trip was taken because our duties required being away from the general area of our regular place of business for substantially longer than an ordinary day’s work.
- The assignment away from home was temporary.
- Sleep and rest were needed to meet the demands of the work while away from home.
- The expense was ordinary and necessary for the work and not lavish or extravagant.
I kept adequate records.

Deduction: Utilities

- I paid for heat, lights, power, and telephone for my business.
- None of this spending was for my personal use.
- I am not deducting any of the cost of basic local telephone service for the first phone line in my home.
- The costs were common and accepted in my field of business, and appropriate and helpful for my own business.

Deduction: Wages

- I paid wages and salaries which were directly connected to my business.
- The actual services performed by the employees are common and accepted in my field of business, and appropriate and helpful for my business.
- The amount of pay is reasonable, and an amount that similar enterprises ordinarily would pay for the same work under the circumstances.

Category: Self-Employed – Other Deductions

Deduction: Education (Self-Employed)

- I paid for tuition, books and other expenses for education related to my trade or business.
- The education maintains or improves skills required in my trade or business, or is legally required to keep my pay, status or job.
- The education is not necessary to meet the minimum educational requirements of my present trade or business.
- The education is not part of a program to qualify me for a new trade or business.

Deduction: Moving (Self-Employed)

- I spent money moving to a new workplace.
- The move was related to a change in my job location.
- My new workplace was at least 50 miles farther from my old home than my former workplace was. (If I didn’t have a former workplace, my new workplace was at least 50 miles from my old home.)
- Right after the move, I worked (or will work) full-time for at least 39 weeks during the first 12 months, AND for at least 78 weeks during the first 24 months.
- My new job ended because of death or disability.

Deduction: Health Insurance (Self-Employed)

- I paid for medical insurance or qualified long-term care insurance for myself and my family.
- I am self-employed, a general partner (or a limited partner receiving guaranteed payments) in a partnership, or a shareholder owning more than 2% of an S corporation.
- I paid the premiums, or my partnership or S corporation paid the premiums and included them in my gross income.
- I was not eligible to participate in any employer subsidized health plan (including my spouse’s) during any month for which I am taking a deduction.

Surprised? So was I when I first learned about all this. I think about all the money I paid to IRS over the years that I could have kept instead of paying, and we’re talking hundreds of thousands of dollars over the years. What I could have done with all that money? A nice vacation? A retirement plan? A bigger house? A new car?

The good news is that all these deductions started for our family two years ago.

They can start for you too, legally and ethically with minimal expense. Who knows, it could even provide the kind of lifestyle and freedom we now enjoy.

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