Taxes

There is a common adage that says the only two things that are certain in life are death and taxes. While death is definitely not certain when it comes to a home business, taxes assuredly are. If you are going to operate a home business, there are some things you need to know about taxes or you may find yourself in a world of trouble.

I can not think of one person I know who likes paying taxes, doing taxes or talking about taxes; but the fact of the matter is taxes are an inevitable part of life and if you start a home business, they are probably going to be an even bigger part of your life than they were before.

When you work for someone else, your taxes are taken out of your paycheck and then at the end of the year, you simply file your tax return and you either pay money to the IRS or you get money back. Paying home business taxes gets to be quite more complicated than that. While income taxes are the main concern of those employed by others, home business owners need to worry about use taxes, sales taxes, employment taxes, income taxes and a number of other taxes that may apply to their business.

The first thing you need to take care of in terms of home business taxes is the process of getting an EIN number. A business’ EIN number is much like a social security number for your business. It is the number that is used when reporting taxes to the IRS. Once you have your EIN number and your home business starts generating income, you are going to have to start making estimated tax payments to the IRS.

Unlike the annual tax returns you filed when you were employed by someone else, home business owners have to pay taxes on a quarterly basis. For example, you are going to have to pay taxes on the money you make from January through March in April and for the money you make in April through May, you have to pay taxes on in June. The IRS provides home business tax payers with the Electronic Federal Tax Payment System in order to make paying your quarterly taxes more convenient.

If your home business has employees, you are also going to have to take care of your employees’ income taxes. When you have employees, you are required to withhold their income tax from their paychecks and you must pay that income tax to the IRS. If you have less than one-thousand dollars in income tax liability each year, you can do this annually. However, if your employees’ income tax liability is going to total up to more than one-thousand dollars a year, you are going to need to pay the IRS either monthly or semi-weekly.

Remember, this only applies to you if your home business has actual employees. Independent contractors are not considered employees and taxes do not have to be withheld from payments made to independent contractors.

Home business owners also have to pay self employment taxes. Self employment taxes are taxes self employed people pay to Social Security and Medicare. This tax allows you to receive Social Security and Medicare benefits when you retire.

If you are not sure how to manage your home business taxes, you should hire a small business accountant to consult with you on the best way to approach your tax requirements. Hiring an accountant who is willing to teach you how to do your own home business taxes can be much more cost effective than hiring an accountant who insists on doing all of your taxes for you without any explanation of what is being done.  

Tax Write Offs for the Self Employed…Discover 101 Ways To Reduce your Taxes Legally…

Unfortunately, we had been students of self-employed tax deductionsstrategies for over 20 years before we learned what I’m about to share with you regarding tax reduction tips.

I was shocked when we first found out that as self employed owners there were more tax loopholes than the limited itemized tax deductions that we had routinely rehearsed and become accustomed to.

My husband and I thought we were savvy entrepreneurs especially when it came down to self employed tax deductions solutions. (He said I knew how to squeeze a dollar to make George holler)

Boy when we found out that we were severely losing out on Thousands of dollars per year from not maximizing self employed tax deductions expenses…well it was just a bitter sweet experience. We weren’t happy campers to say the least. Now don’t get me wrong we weren’t blaming anyone.

It was sort of like the lady on the news that was scammed for millions. Her concern was not that she had been scammed. Her concerned was that she was paying income taxes on money that didn’t exist. She was gravely looking for IRS to bestow a tax reduction… better yet, interest tax deductions for all of the years of over paying.

We implemented every self employed tax deductions suggested by our accountant. We were appalled to discover how considerably more tax deductions we could claim as self employed home business owner.

It was no secret we’ve visited our share of CPA ,CFP and every other kind of C’s and never seem to stumble on the one that really resonated with us or could noticeably reduce our business taxes.

Now you get the opportunity to benefit from the same self employed tax deductions tips that it took us over 20 years to learn… you get to devour in the time it takes to read this article.

Fortunately, you get to learn from your experiences and from ours.

Here are 9 Bullet-Proof Self Employed Tax Deductions:

If you own your own business (even a home business) or if you’re an Independent Contractor, you could save hundreds… even thousands of dollars each year.

Here is an outline of what you will learn:

1.      Learn how to potentially deduct most of your fun such as movies, plays, and season tickets

2.      Learn how to potentially deduct your golf, golf balls, golf clubs and lessons

3.      Learn how to potentially deduct all parties in your home

4.      Learn how to potentially bullet-proof all your entertainment from any IRS or state audit!

5.      Learn how to potentially deduct any vacation anywhere in the world by combining the trip with business.

6.      Discover the secret as to why IRS doesn’t require receipts for under $75 per item!

7.      Find out how to potentially deduct all dry cleaning and laundry and even the cost of clothing itself!

8.      Learn how to potentially bullet proof all travel from even the toughest IRS scrutiny

9.      Discover a little known secret (that is used by the super rich) to potentially deduct the equivalent of your children’s weddings and education including law school and medical school- No kidding!!

Sanford C. Botkin, CPA and Former top IRS Tax Attorney lives in Germantown, MD, a suburb of Washington D. C., just a short distance from the IRS headquarters.

Over the past 15 years, Sandy has helped over 50,000 taxpayers including home business owners save millions in taxes through legal tax reduction.

To find out what fox news has to say about Sandy Botkin check our website.

* Here’s my disclaimer….I’m not a CPA or Tax Attorney this is for educational purposes only

O.K…. I’m back

According to Sanford Botkin, CPA and Former top IRS Tax Attorney.

Owning a home business is one of the most profitable tax deductions a person could have.

As small business/home business owners we have more tax breaks available to us then the average business takes.

Any legitimate home base business owner that’s actively pursuing a profit, even part-time can qualify for substantial tax breaks.(read  Sandy’s facts)

According to the American Taxpayer Union in 1958, the average American paid 18 percent of their gross income in taxes, Federal, State, and Social Security.

Today, the average American spends 41 percent of their gross income in taxes.

Taxes are the largest expense for most people. It exceeds food, clothing, lodging, and transportation combined. The Average American works 5 months supporting the government and 7 months supporting their families. Learn tax deductions methods to help you reduce your support to 2 or 3 months supporting the government and 9-to 10 months supporting your family.

Here’s one of the biggest mistakes home business owners make, which is having the mindset that their tax accountant will take care of them. No doubt about it, most accountants are working as hard as they can trying to keep abreast of the never-ending changing tax laws while maintaining and growing a client base.

That’s why we have to study  and do our homework to realize the maximum tax reduction possible for your business. Thinking your accountant will take care of your taxes is like thinking your doctor will take care of your health regardless to what you eat.

We hope this information helps you the way it did with us.

*Strategy is better than Strength
proverb