By now, just about everyone has caught wind of the current Administrations “faux pas” surrounding the a once thought of guarantee of Social Security checks and the possible delay for current benefactors in August.

While the White House is doing some major damage control right now due to the way the media reported it and how the American public perceived the “warning” – it should be noted that the days of Social Security checks are numbered regardless of what Congress can accomplish with the budget and our debt ceiling.

To this day, it’s still odd to me how we find an abundance of pin heads out there that proclaim that Network Marketing is an unsustainable model. Yet, when push comes to shove, nobody has ever been able to provide a single solitary example of one MLM or Network Marketing company that has ever exhausted the world’s population. Heck, you can combine all Direct Sales and MLM companies in the industry and still couldn’t find that last person who didn’t have at least someone to talk to or sell product to.

Idiots who throw this “pyramid scheme” lingo around simply to place the fear of God into others aren’t smart enough to realize that this theory is just that – a theory. The reality of MLM and it’s real world applications are vastly different from their false and very limiting beliefs.

On the contrary, the model has proven its stability and longevity for over a century now. You have the Direct Selling Association (DSA) that was founded in 1910 to protect and serve this industry over the last 100 years. You also have companies like AVON who has been doing business since 1889 still selling and still recruiting women all around the world. Tupperware, Amway, Mary Kay all founded before I was born and just blasting this “fear” about sustainability right out of the water by selling billions of dollars a year.

To add insult to injury, these same pin heads will tell you to go out and get yourself a “real job” – exchanging 40 hours a week of your time for a fixed amount of income.

I don’t know how or why so many in this country became so complacent, lazy and stupid.

The debt ceiling appears to be covering up the real issue of our Social Security system. Nobody seems to be asking the real question of why the money isn’t there for these benefactors. I mean, you hand over 12.4% of your income to be placed in reserve for when you retire – so where is it? Very few understand that this system we’ve all taken for face value (because the Government is supposed to “protect” us) is doing nothing more than paying for the benefactors who retire before you.

In other words: If you want to take a look at a real – practical – and legitimate “pyramid scheme” you need to look no further than our Social Security system.

Back when I first got involved with YTB, Social Security reform had been place at center stage. The Bush administration saw there was a problem and was searching for ideas to address it. We all have short memories, and there are those who want to forget the Bush years. This USA Today piece however pretty much sums up what was going on in that day and age – just six short years ago.

The idea at the time was personal accounts as a way to fix the cash crunch. Money invest in would be reserved for those individuals only. The USA editorial explained perfectly why the current Social Security system is your classic pyramid scheme.

“Given low birth rates and rising life expectancies, in time, Social Security won’t be able to sustain our elderly population without punitively taxing workers.”

It goes on to state:

“For Gen X, though, this program sounds awful. No matter how poor you are, you pay 12.4% of your income, every year, to maintain Mossman’s cash flow.

Sure, Mossman paid in, funding other retirees. Their taxes funded original recipients who didn’t pay a dime. This is the classic definition of a pyramid scheme, which eventually has too many folks to pay off with too few suckers paying in. Thanks to the 1946-64 baby boom, Gen X is firmly in the “too few suckers” bin.”

And we’re right at the cusp of this dreadful reality. For the next 20 years there will be more than 10,000 baby boomers per day looking to retire for the next 20 years. Some 78 million people all “worthy of” a Social Security check because they’ve been “buying in” all these years.

Knowing what you know now – including the current economic climate – what do you think your chances are of seeing even a penny of your “buy in” when you’re ready to retire?

Are you beginning to understand just how silly and irrational this idea of pointing the finger at MLM’s and Network Marketing when a real – practical example like our Social Security system looms over every tax payers head?

That being said – I’m not going to tell you that MLM or Network Marketing is the only answer in solving your issue of Social Security not being there for you when you retire. There are plenty of options to protect you and actually provide a very comfortable retirement. But if you think you can count on Social Security being there for you – dammit – you need to wake up and see the writing on the wall.

A very real and legitimate example of a “Pyramid Scheme” is staring you right in the face – courtesy of the Government that many believe is there to protect them from such evils.

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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Doug & Ronda Bauknight AKA: TravelPro Travel Agent / Networker Phone: 678.458.5812

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TSO #588629

When I first got into this industry back in 2005 I spent a lot of time in forums reading and posting with others in the industry. I learned the right way to do things – and saw plenty of examples of what NOT to do in this industry.

One of the forum posters who I still admire greatly was a gentleman named Tony Rush.

I think I connected with Tony for a couple of reasons. Rather than being emotionally attached, he was always logical and always very articulate in the way he communicated. He’s always been very open, honest, and unafraid to express his beliefs and opinions – which ironically brought out some very nasty critics of both him and the company he worked with at the time.

That’s were I felt the strongest connection with Tony. Not because he had critics – but because he simply simply didn’t care what anyone else thought. He’s strong enough in his own convictions and beliefs that critical views and opinions are always the property of the one voicing them. (As it should be.)

I’ve kept up with Tony over the years and still get communications from him as a subscriber on his list. He’s always been one of my favorite writers and I enjoy his insight and perspective.

He sent me an e-mail the other day that spoke volumes concerning wealth consciousness.

Yes, it’s a long e-mail – but it’s also a long weekend – and there should be plenty of time to read it. And just like he said before he got going about this subject – the smart ones will take the time to read the entire thing.

If it speaks to you – and you want to find out more about what Tony is doing here’s his website: www.best7minutes.com. I’m not working with him, nor do I know what it’s all about. I happen to be very happy with my direction and company, but I can still appreciate great wisdom and insight.

Enjoy!

~~~

I love movies. All kinds.

But, did you know that there are all kinds of hidden messages in today’s entertainment that will keep you broke??

Don’t believe it?  Check this out:

Think of the most common “good guys” in popular movies:  Harry Potter, Clark Kent (Superman), Peter Parker (Spider-Man),

What do they all have in common?

– they’re all orphans
— they’re all poor and broke
— they’re constantly having to deal with the agendas of wealthy people

Then, think about the bad guys like Lex Luthor, Draco Malfoy, Normon Osborn (that bad guy from Spider-Man), Parker Selfridge, (the bad guy in AVATAR):

– they’re all billionaires
— they’re all malicious, mean, nasty people
— they have no regard for anything but their own money and power

Sneaky stuff, huh?

And that’s not the half of it.  Most of these blockbuster films have hidden messages that you pick up on and carry into your real life.

Things like:

– you cannot be wealthy and be spiritual
— if you focus on having more money, you’ll compromise your values
— being poor allows you to have more spirituality and love

Guys, this stuff is insidious.

Think about the movie TITANIC.  Another Jim Cameron movie full of hidden messages that are designed to appeal to the “mass thinking” of the herd.

You’ve got the hero who is….you guessed it….broke as a convict. The babe in the movie is dating a guy who’s richer than God and he is …..that’s right again…..completely immoral.

EVERY single wealthy person in the movie is shallow, superficial and completely without any spirituality at all.

And, of course, all the poor people are having a good ol’ time, stomping around in the manure down in 3rd class, and they’ve got wonderful relationships and they’re all great parents, etc.

You see it coming, don’t you?

That’s right:  the “journey” of the movie involves the girl (“Rose”) who has to turn her back on prosperity and abundance and choose a life of squalor and poverty.  This is the only way for her to truly be happy.

Of course it’s all BS but that’s Hollywood for you.

By the way, did you get that ending?  Rose is now about 100 years old and she’s been mooching off her daughter who’s working hard to raise a family AND take care of Rose.

And in the final scene, we find out that Rose has been hanging on to this huge diamond ever since the Titanic sunk….this thing is worth tons of money….and instead of using it to help her family or her friends or her daughter or herself…..

….the old bat throws it into the ocean!

Oh, man!  How can anyone see this ending to be about anything other than “Throw away money….it brings you nothing but pain.”

What a crock.

And yet this movie made MILLIONS of dollars.  How’s that for irony?  The filmmakers made millions of dollars teaching you that you should be poor!

So, why am I talking about this?

Simple:  most people are sabotaging themselves and don’t even know it.

They want to be wealthy….but they feel guilty about wanting it.

They want to make money but they think that having lots of money will mean they’re not going to be a good parent, spouse or person.

They want to have a life of luxury and abundance….but they think that achieving it will make it harder to be a spiritual person.

And -  snap — just like that…..you’ve got yourself a nice new recipe for staying stuck in life.

Seriously:  you need to understand this if you want to create a life of freedom.

If you have any of these beliefs, you need to get clear of them NOW:

– money is the root of all evil
— rich people are evil
— rich people get rich at the expense of the poor
— it’s hard to make money
— making money takes hard work
— money is the opposite of spirituality
— money doesn’t grow on trees
— if you want to be wealthy, you’ll have to lie, cheat and steal

Think about it.  If you have ANY of those beliefs, do you really think your subconscious mind is going to let you become wealthy?

No way.

You’ll sabotage yourself faster than you can imagine.

How will you do it?

Oh, you’ll come up with a way.  You’re good at it.

A master.

Next time you spot a juicy opportunity to make money you’ll say dumb stuff like “that’s too good to be true”.

Or next time you someone offers you a way to earn thousands of dollars per week….you’ll say, “That won’t last.  Real wealth is supposed to take a long time to build.”

Or, you’ll turn into the World’s Most Analytical Person and say, “Well, I need to think about it”….and you’ll pretend to think about things for a few days or weeks.  Heck, people have decided to run for PRESIDENT in less time than it will take for you to figure out if you’re ready to get started in a lucrative home business!

Or you’ll say, “Well, I need to understand every single detail before I move forward”.  Which is a lot like saying you won’t start on a vacation trip until all the traffic lights are green at the same time.

I don’t know how you’ll do it.

But you will.

Know how I know?

Because I did this for years.  And so have you.  You’re already doing it.

Seriously.  Everytime I got close to actually making some decent money, I’d somehow manage to snatch defeat from the jaws of victory……and do something to screw it up or postpone it or to just outright reject it.

And I guarantee that you’re doing the same thing to some degree.

Here’s how I know:

Are you rich right now?

If not,…..why not?

Answer that.

Got your answer?

Well, try this on:  whatever reason you gave for why you’re not wealthy is what’s running your life right now.

In fact, whatever answer you have is actually not even real.  But it’s the stand that you’re taking against being wealthy.

If that were not true, you’d be wealthy already.

Success is a choice.

It’s not difficult.
It’s not hard.
It doesn’t take years of hard work. And it has nothing to do with compromising your morals or values or integrity or any of those things.

But, if you don’t change what you believe is possible about making money……then you’ll always be in about the same situation you’re in now.

Think about it:  don’t you find that your bank account never gets above a certain number for long…..?  And then something comes along to knock it back down again?

Self-sabotage.

Believe me or not.  But this may be the most important financial message that you ever read.

Because if you don’t do something about developing a prosperity consciousness…….

…..well, things will always involve about the same amount of struggle and work and scrambling around to make the ends meet.

What’s the solution?

Here are a few tips:

1.  Start hanging around people who are living the kind of life you want to live.  Lifestyle.  Leisure.  Income.  Whatever.

2.  Start a personal development program.  If your life sucks, it’s because you suck.  It’s not the government, the economy or your job.  It’s you. Start working harder on yourself than you do on your job and you’ll find out that the solution has been with you all along.

3.  Start a business that actually pays you what you’re worth.  Forget working 40 hours a week.  Find something you’re passionate about – or find a solution to a problem and start helping people solve it. Those desires you had as a kid were divined in you for a REASON. It’s time to go after it.

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.

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight AKA: TravelPro Travel Agent / Networker Phone: 678.458.5812

Book Your Travel & Vacations With

TSO #588629

Remember that as a kid?

Or how ’bout this one?

“I’m rubber – you’re glue. What bounces off of me – sticks to you!” or “I know you are – but what am I?”

Back in 2007 a former columnist for MSNBC came bursting on this blog to tell me what MLM was really all about. Amused that anyone would “Double Dog Dare” me to produce commissions to validate my worth, I found this person simply ignorant. Ignorance I can handle with proper documentation and information to enlighten anyone willing to learn. The very meaning of ignorant is uninformed; unaware.

But stupidity is a completely different animal which I have to admit, I have very little tolerance for.

Many in the industry were shocked that I would not only communicate, but befriend someone so full of hate and bitterness. I’ve always believed that people can change their tune given the proper information. I’m living proof of it. People who have never known me during my drinking days can’t believe I was a functioning alcoholic.

I’ve been told that part of my appeal is that I make myself vulnerable – being open and honest about my past mistakes in an effort to help others learn from them. Nobody’s perfect, and to act like you’re the only one who is, is not only distasteful, but foolish.

It’s my belief that everyone is capable of change and enlightenment.

An awakening.

Some however, are far more stubborn (or stupid) than others. To avoid change, they play childish games like double dog daring you, and I know you are – but what am I to deflect the attention off of themselves and slap it right back on you.

Two weeks ago I outlined yet another gross misrepresentation of John Frenaye’s who still can’t seem to check his facts before he opens up his mouth. He has a long history of gross misrepresentations and lies that we’ve documented here on this blog. All bent out of shape about girdles he stated (among other gross misrepresentations) that the products cost more through ZamZuu so the company could feed the “pyramid”.

Granted, I poked fun at him using him as an example of someone needing a girdle – but it doesn’t change the fact that ZamZuu provided a 23% savings to our clients over a direct sale with Ghiada. The MLM “expert” had been exposed once again as a clueless.

Instead of acting like an adult and making some sort of correction – the dolt spends the next three days lambasting yours truly for being an MLM loser and failure – not on MSNBC – or in a trade publication – or one of the 10 agency locations once dreamed of, but on a free Blogspot account that has been his home for that last three years.

My how the mighty have fallen from grace.

What’s even more amusing is that one of his best buds also decided to take pot shots at me through e-mail and comments here in an attempt to disrupt my peaceful and productive existence.

It’s not that I don’t want to take responsibility for their anger. Truth be told, I actually enjoy pushing their buttons and getting them worked up. I read them like a book. When Jeanie Sharpless told me about her NCL cruise, I told her exactly what would happen if I put it in my newsletter. Like clockwork – it was up on John’s blog within minutes of sending it out, with all the spin and hype we’ve all come to expect from YTB’s biggest goof.

And I just laughed because I just knew it would get his goat. Illusions of lime green T-shirts crawling all over NCL with the quote “I got here free – ask me how” dancing in his head.

Their perceptions and illusions have gotten so out of hand that it’s actually easy to poke fun at them – even when you know they’ll attempt to bounce it right back on you. And when they do, you’ve won because mindless ridicule and childish outbursts are only used when you have nothing left.

So why aren’t they able to get me all upset and bent out of shape in the same way? Why am I so willing to just sit there and take such words as “failure”, “loser”, or “dumb ass” so easily?

I’ll let you in on a little secret – it’s money.

Money and success have a strange way of taking anything that’s negative about you and turning it into a non-issue. In fact, it can be downright comical when money arrives at the same time you’re being lambasted by a bunch of critics and cowards as some sort of failure. Truth is, they have nothing better to do with their time. They trample all over someone in an attempt to elevate themselves by putting you down. They’re showing how frustrated and jealous they are by their actions. (Forget words to the contrary.)

Since the last time I wrote about John two weeks ago – I’ve deposited over $6500 into my bank account doing exactly what I told you I was doing with multiple streams of income. Since residuals are paid on the 11th of each month, and travel commissions are paid on the 25th – none of it comes from recruiting or travel sales with YTB. (Besides, any of those commissions are put on my YTB Pay Card.) You’ll also notice no particular time such as the 1st and the 15th or every other week, nor do the deposits look as if taxes were taken out for an interest free loan to the Government.

Yep, looks like life is pretty rough right now for the Bauknight family – because critics have said so.

And to think if I didn’t take that first step with YTB all those years ago – I’d still be stuck in the Corporate World making someone else rich off of my efforts.

Guys, I’m not posting my income to brag or to tell my critics to go pound sand. (Well…they can still pound sand cause they’re idiots and I don’t care what they say or do at this point.) I’m posting this because you should never – EVER – allow anyone to tell you that you’re not worth it. You should never – EVER allow anyone to ridicule you from fear or jealousy. If I can do it – so can you. All you have to do is apply yourself and never – EVER quit.

Sure, you’ll fall down and go boom – several times. But the trick is picking yourself up, and trying it again with a slightly different approach.

The definition of insanity is doing the same thing over and over again and expecting a different result. Taking a good look at critics like John Frenaye – you’ll quickly see how you’ll end up if you don’t change or adapt; Bitter, angry, destitute, and without many options at your disposal.

Guys like John Frenaye don’t own you. I realize they demand approval and permission because they think their opinions should matter. Fact is, they’re nobody worth listening to. The louder they are the farther you should run. Find some new friends who will support you and mentor you. It’s also important to find friends who are more successful than you are. Hanging around a goof like John will leave you bitter, broke and a member of his dumb ass den.

It’s time to grow up folks and take charge of YOUR dreams – not John’s illusions or perceptions. It’s a fairy tale that only exists in his head and they’ll never win and never quit because their oversized egos won’t let them.

So go for it! Go ahead – I double dog dare you! ;-P

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.

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight AKA: TravelPro Travel Agent / Networker Phone: 678.458.5812

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TSO #588629

Back from vacation and ready to head into our National Convention with great anticipation and optimism. It was very refreshing to get away with family and spend time with those that are closest to me. I rarely get to see a movie in theatres these days, and when I do get a chance, it’s usually because the kids want to see it. You have to be living in some sort of cave these days if you haven’t seen the marketing for Kung Fu Panda. Even McDonald’s is in on the action and I had the pleasure of listening to “Po the Panda” and his Kung Fu “Hee-Yah” last Sunday as we headed out on our vacation.

With the temperatures being so hot last week, a movie matinee was just the ticket for the kids, so we headed to the local theatre to catch the latest DreamWorks Animation.

While I always enjoy DreamWorks movies, they are never movies for me that are “must see” type films. (Pixar on the other hand are “must see”.) After actually seeing Kung Fu Panda however, I found a couple of underlying themes that I believe would benefit anyone who has a dream to better themselves, no matter what it is. (Of course that would include those of us in YTB.)

At the beginning of the movie, Po is dreaming of becoming a great Kung Fu Master along side his idols, the legendary Furious Five. In his dream, Po’s enemies would go blind from over-exposure to pure awesomeness! (Jack Blacks best line in the movie.) Like many of the DreamWorks pictures that we’ve either seen or own on DVD these days, there are plenty subplots that adults would not only understand, but enjoy.

Po is the laziest animals in all of the Valley of Peace, but as the movie advances, Po unwittingly becomes the “chosen one” when enemies threaten their way of life and is picked to become the Dragon Warrior by the oldest and wisest Master in the Valley of Peace, Oogway.

While Oogway has chosen Po, others claim “You don’t belong here,” like the Furious Five, predictably. (But Po is just tickled to meet his idols.) Nor does Po want to hear his dad’s warning: “We are noodle folk! Broth runs through our veins!” And Master Shifu does not believe that a big ball of butter like Po could possibly be the true Dragon Warrior.

What was interesting to me was the Po didn’t realize from the beginning the he “couldn’t do it”. Learning Kung Fu was something he always wanted to do and he honestly believed that he could be a Kung Fu Warrior like his idols. It wasn’t until his first day of training that he realized that dreaming about doing something and actually doing it were two separate things.

Shifu, Po’s Kung Fu Master, finally figures out just how to train Po in Kung Fu using his favorite thing in the world…food. It was then that Po starts to look like a real Dragon Warrior.

After training Po, Shifu decides the time has come for Po to receive the Dragon Scroll and learn the secret to limitless power. The five and Shifu watch in awe as Po opens the Scroll, only to find out that it’s blank. With Oogway now gone, the group assumes there is no “secret” to Limitless Power.

Po goes home feeling discouraged. To help Po feel better his dad explains that the secret ingredient in his secret soup.

“To make something special, you just have to believe it is special.”

Po looks at the reflection in the blank Scroll and then understands. To become a true Dragon Warrior, he has to BELIEVE he is the Dragon Warrior. Po makes up his mind to fight, and save the Valley of Peace from Tai Lung, the arch villain in the movie.

I couldn’t help but think about my own experience in life when others try to tell me that something couldn’t be done. I don’t have the knowledge. I don’t have the proper training. I’m not with the right company.

What made last week so special for me was that everywhere I turned, I was either being told in a movie, reading in a book, or hearing my family, that I could be, do, and have anything I want. There are no limits to what I (or you) can do if we only believe we can do it.

As I look outside in my front yard and see the grass that I need to cut today, I also notice a maple tree that we planted some 11 years ago when we first moved in. Back then it was nothing more that a twig. Today it’s almost as tall as the house and offers a great centerpiece to our front yard. I remember reading some years ago in “Secrets of the Millionaire Mind” that if an Oak Tree had the mind of a human, it would only grow to 10 feet tall.

I could have tried to tell the grass to stop growing while I was away, but it wouldn’t have listened. Nature doesn’t work like that, and like the grass that grows, I choose to be part of nature. If I simply feed, water, and provide plenty of sunshine, I will continue to grow as well. It’s one of the reasons I love YTB and the Leadership. Coach may not be a Kung Fu Master, but he certainly knows how to be a Master of Life. I’ve read enough from my favorite Authors to the right here to know that Coach not only understands, but lives his life the way these men do, and the principles, life lessons and teachings are universal no matter who you are or what you do.

One of the most meaningful lines in the movie for me was quoted by Oogway, the wise Master of Masters, and I’d like to share it with you in closing.

“Yesterday is history, tomorrow is a mystery, today is a gift. That’s why they call it ‘the present.”

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.

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight AKA: TravelPro Travel Agent / Networker Phone: 678.458.5812

Book Your Travel & Vacations With

TSO #588629

The Number 1 way to reduce your taxes with a smile is to convert your personal expenditures into allowable deductions. How could this be you ask? Well, it’s not only true, but it’s a lot easier than you think. In Ron Mueller’s book “It’s How Much You Keep That Counts” he discusses in detail every major deduction, in black-and-white, the exact Congressional Law, the specific Article in the U.S. Tax Code or Federal Tax Court Ruling which specifically authorizes it.

One of the most surprising things I found was that the IRS does not require you to actually make a profit in order to write off these expenses, you simply need to be in “pursuit” of a profit. How cool is that?!

Here’s how you do it: Turn yourself into a business owner. This is not complicated, expensive or difficult to do, and incorporation is not necessary. We got started in our business after only a few days of research, it cost us less than $500 to get started, and we simply used our Social Security Numbers for tax purposes.

Establishing a ‘profit motive’ is the key

To be in business, you merely declare it. And by doing so, you can magically turn personal expenses into tax deductions. If you want to operate in a noncorporate format, as an individual proprietorship, but under a different name than your own, no problem. It’s easy.

In some states, you may have to file a “DBA” (doing business as) form with your local county clerk. Basically, you just fill out a form with your name, address and the assumed name under which you’re doing business. For example, I might be “Doug Bauknight DBA BandBVacations.com.”

Here’s the best part: Your business doesn’t have to make a profit for your expenses to be deductible. All you have to do is establish a “profit motive.” Under the Internal Revenue Code, a “profit motive” is presumed if you earn any net income in any three out of five business years.

It’s recognized and expected that new businesses probably won’t make a profit in the early years. In fact, in the early years, you can insist that the IRS defer any challenge for the first five years as to the legitimacy of your business by filing Form 5213 (.pdf download).

Remember you don’t have to show a profit — just a “profit motive.” The test for deductibility is whether you have an actual and honest profit objective. You need not have a reasonable expectation of a profit. The test is subjective: Was your intent to earn a profit? The IRS looks at the following factors to decide if your intentions are honorable:

- The manner in which you work your business.
- Your expertise and the expertise of your advisers.
- The time and effort you expend in working your business.
- The expectation that the assets used in your business may appreciate in value.
- Your success in carrying on similar or dissimilar activities.
- Your history of income and losses with respect to the business.
- The amount of occasional profits, if any, that are earned.
- Your financial status.
- The elements of personal pleasure and recreation.

That doesn’t mean that just because you enjoy doing your “job” that the expenses aren’t tax-deductible. The Tax Court has ruled that “suffering has never been made a prerequisite for deductibility.”

Even if you’re employed full time elsewhere, that doesn’t prevent you from having a home based business on the side. When we first started our Home Based Business, I worked a full time job, and had two part time jobs to boot. This works whether your business is your primary source of income or it’s a sideline. Mine was certainly a sideline the first year, but because we basically turned our hobby or cruising into a business, it turned into a full time business for us.

How to qualify as a business deduction

To qualify as business deductions, your expenses must be:

- Ordinary and necessary — defined by the courts and the IRS as “reasonable and customary.” – Paid or incurred during the taxable year.
- Connected with the conduct of a trade or business.

The term “reasonable and customary” depends on your specific business and the business customs in your locale. The expenses don’t have to necessarily be reasonable and customary to you, but simply to your particular trade or industry. There are innumerable cases of “hobbies” converted into “businesses” with expenses allowed. Our hobby is cruising. So we became Travel Agents. It is customary for Travel Agents to preview cruise ships so we can inform our clients. BAM! All our cruising just became a tax write off. We also took a trip to Disney earlier this year, and took the kids. Why? Don’t you think it might be necessary to get a 3 year old and 5 year old perspective on what they liked about Disney?

Focus on your profit-making motive. Remember that it’s not what you pay in taxes that counts, it’s what you keep.

Next week I’ll post a list of things that you may be able to now claim as a tax deduction because you’ve started a business. Some of this list may surprise you so make sure you check back!

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Doug & Ronda Bauknight AKA: TravelPro Travel Agent / Networker Phone: 678.458.5812

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