If You Don't Have A Home-Based Business, Sart One Today!

Sandy Botkin is a CPA, attorney and former trainer of IRS attorneys nationwide. He lectures all over the nation on tax planning for self-employed and corporate taxpayers and can be seen in the big events with Donald Trump, Anthony Robbins and many others. He has been written up in Newsweek and in many other magazines. He is also a syndicated writer and noted author of this famed tape series "Tax Strategies for Business Professionals" and "Tax and Financial Strategies for Residential Real Estate."

Part 4

Renegade Strategy: If you don't have a home-based business, Start one!

In addition to all the benefits mentioned before, Congress will subsidize you while you are growing your home-based business. If your home-based business produces a tax loss in the first year or so, you can use that tax loss against any other income you have. It can be used against any other income you have. It can be used against wages earned as an employee, dividends, pensions, or interest income-or you can use the loss against your spouse's earnings if you file joint return.

If the tax loss exceeds all your income for this year, no problem. You can carry back the loss two years and get a refund from the IRS for up to the last two years of income taxes paid, or you can carry over the loss twenty years. You read it right: you can offset up to 20 years of income!

Here's an example:

Mike earns $ 50,000 in a job with the government. If he starts a home-based business that generates a tax loss of 10,000, he only pays tax on $ 40,000.

Renegade Tip: You can never lose a properly documented business deduction as long as you run your legitimate business like a business with a bona fide business purpose and have an honest expectation of profit. Make also sure that all your expenses are ordinary and necessary and reasonable as noted in our Tax Advantage and Tax Strategy Program.

Renegade Strategy: Get LUCK-Labor Under Correct knowledge.
Can You Succeed In a Home-based Business?

Research has constantly shown that it is rarely the business that determines success or failure. It is usually the business owner. Why does one person succeed and another one fail at the some business?
Two words-Knowledge and Action.

Some people want the benefits of having their own business, but they don't take action. The result is business failure.
Then there are the people who are always working. They take action but still fail.
The reason is that they are not taking the correct actions, the knowledgeable actions, that will bring the desired results. Again, business failure.

It's like drilling for oil. If you set up a drilling rig in your back yard, it is going to fail at producing oil unless your back yard is in Texas or Alaska. The same rig in a good field will produce a gusher, because it was placed where oil was known to exist.

The point is that most people who get excited about starting their own home-based business do so without all the necessary knowledge. Consequently, many people quit before they acquire, through experience, the knowledge they need, without realizing that they are getting substantial tax breaks. This leads to another strategy...

To learn more, got to Sandy Botkin for more about him and what he teaches. Please leave your comments. We would love to hear from you.

Dan and Deanna "Marketing Unscrambled"