Why Claiming Income can actually LOWER your tax bill

Many people “forget” to declare the $500, $1,000, or $2,000 they made on the side, in order  to avoid paying taxes on it.  What they often don’t realize is that in earning that money, they often had huge potential write-offs available, that would not only completely offset the income made, but actually reduce their taxable income from employment. 

It is almost certain that your are neglecting to take advantage of many Tax-Write offs that you have available:

• Do you own a business? ASN member? You have write offs.

• Do you have a hobby from which you sometimes make sales? You have write offs.

• Do you occasionally help others for "Beer Money", You have write offs.

 Generally, all expenses incurred in the maintaining or expanding of any endeavor intended to make money or increase personal assets are deemed as tax deductible.

Cell phones, meals, travel, mileage, internet access, software, computers, clothes, portion of your home, etc... 

*Note: The following is not to be construed as legal advice.  But rather, a general overview of tax advantages that are often available but missed.

 1.   HOME.  Your home often is your place of business.  Are you using your living room to hold business meetings;  do you have a spare room for an office? Do you make coffee for your clients?  Do you have a place in the home that you store your tools of trade?  Since you are allowed tax deductions for the upkeep of your place of business, you are allowed deductions for maintaining your place of residence.

•  1.  If you own your own home, you have the right to depreciate a percentage of the home's total square footage depending on the percentage of your home that is used exclusively for your business.   

•  2.  If you rent, you are paying not only for living quarters, but for rental on your place of business, as well.  You may therefore be entitled to write off a substantial portion of your monthly rent as a business expense.  Example:  You rent your home for $1500 per month, assume one third of your home is used exclusively for business means that 33% of it or $500 per month could be tax deductible.  300 x 12 = $3600 allowable income tax deduction.

•  3. Do you have utilities, electricity, gas, phone, etc.  Up to a third of these can be deductible.

 2.   AUTO.  Any driving which takes you to or from any place in which you have performed or intended to perform some action or actions which in some way directly effects your business, is allowed as a mileage deduction.

 Let's say the allowable mileage deduction for the year of filing is 32 cents per mile.  (again, check on current tax information.)  If during the year you drove 10,000 business miles, your allowable mileage deduction would be 10,000 mi. x 32 cents = $3,200, that is taken right off the top of your taxable income.  What's this mean?

It means your refund is larger or your liability is smaller!

             Some examples of allowable mileage deductions:

            a. Driving to and/or from a meeting with customers or partners. (Your spouse, is usually your partner).

            b. Driving any place in which you will attempt to meet new customers. 

                (parties or other gatherings).

            d. Any driving done in which you will subsequently attempt to make 

               retail sales or deliver merchandise.

Another option is to lease a car for your business purposes.  If this is done, virtually every cent invested into the auto will be tax deductible.  (monthly payments, repairs, etc. )

 3.   BUSINESS MEALS- even alcohol! Any time that you dine in any restaurant or other such establishment, it can be considered a business meal and therefore tax deductible if you were in the company of a prospective customer or business associate (If an "active" ASN member, your spouse is a business associate); and if during the course of the meal, some aspect of the business was discussed the said meals and refreshments are deductible. Do you spend time at nightclubs, trying to  sponsor new members???  Keep the receipts! (Check current tax information for correct allowable percentage.)

 4.   TRAVEL EXPENSES  Virtually all expenses incurred during the course of traveling with the purpose of maintaining or expanding your business are tax deductible.  For example: Let us say you live in California and for the purpose of expanding your business or meeting with prospective customers or partners, you decide to spend two weeks in Florida. 

You would fly to Florida and secure your accommodations.  In the course of your stay you would, of course, make several attempts to expand your customer base or find investment properties or sharing your ASN business, etc...  At the end of your two weeks, you fly home, and virtually all expenses incurred will have been deductible.  (air fare, hotel expenses, meals, etc.)

Whether You Utilize Our Services, or File on Your Own...

Be certain to take advantage of the concepts we've provided.  They absolutely work and will lower your tax liability.

Here’s an example of how I used the aforementioned principles

for a friend of mine...

To keep me from getting bored, on weekends, I’m a professional musician.  Well, one evening at band practice a couple of years ago.  My bass player commented that he was mad because he had just gotten his tax returns back from H&R Block.   According to their calculations, he had a $63 dollar refund coming.

I was very familiar with his financial situation and told him that simply was not right.  I asked him how he had handled his band income.  He, like so many others, had not reported the income thinking that this would reduce his tax liability.

Remember, when it comes to taxes, examine ALL angles  Don't cheat.  Don't lie.  But, don't needlessly give your money away!  When you have your taxes prepared, make certain that you use a professional who will ask you the questions that will allow you to minimize your liability.

Is it possible that you've been paying too much in taxes?  Are you missing some of the loop holes that could allow you to keep more of your money?  If you are concerned that you are or have given the government more than its fair share of your money-- Feel free to call for a free consultation.

Toll Free 877 604 6636 Extension 3

Please, when calling reference Service ID [PERSONALID]

 Do you have a business and not even know it?  Are you a mechanic?  Cake decorator?  If not, you may want to consider starting a business.  Worst case scenario, it can minimize your tax liability; best case, you might get rich!  Looking for a potential business?  Click here for ideas to increase your income.