You are going to discover exactly HOW to make a profit your first year in a home business even if you fail.
Imagine creating enough income in your online home business that you never have to work a regular job again. Isn’t that a great picture to image within your mind?
That’s my goal. Empowering you, through correct knowledge, to know what is real and what isn’t worth spit when it comes to building a profitable online home business.
This post simply deals with a possiblity (HINT: never see failure as failure but as a learning experience to improve your craft). Please, don’t take this post as being negative.
Because one way or another you can get Uncle Sam to PAY for your home business start up! So …
Listen closely to what I am going to say. 🙂
Starting an online home business can save you money, probably earn you a PROFIT (special tax advantages), even if you don’t make a dime your first year. Of course you’d need to start the right online home business for this to hold true. Many people don’t think about the real money-saving tax advantages of starting an online home business but you should.
I suggest you consult a good tax pro who is familiar with online home business tax deductions.
Think of all the things you pay for now that are NOT tax-deductible simply by working a job.
Your home, your car, your cell phone, your computer, your Internet connection just to list a few. These things and more BECOME tax-deductible when you start an online home business.
Home Business Tax Deductions
Let’s make a list of tax-deductible items that will turn into profits (savings) once you start your online home business.
1) Your iPhone (any cell phone) or land line. Right now if you have an iPhone your monthly bill could be $100 or MORE per month.
When you start your online home business you could claim 50% of that payment, say $1200 per year x 50% = $600 deduction. 25% tax bracket means you save $150 per year. If you have a dedicated business line (home office) then it’s all deductible.
2) Your car. When you start your home business you can claim a certain percentage for business. Let’s say you crank out 20,000 miles per year and just to make it simple (taking depreciation, maintenance, gas, oil etc may prove more beneficial) use that mileage to claim your exemption or savings.
In 2013 business mileage deduction was 56.5 cents per mile.
In 2015 it was 57.5 cents/mi.
IF you’d had an online home business and you claimed an insignificant 2,000 miles for business you’d have gotten a deduction. That deduction would have been $1,130. $1,130 x 25% tax bracket = $282.50.
You would have saved another $282.50.
So far with just using your cell phone and car you could save $432.50 by starting an online home business.
3) Your home office. IF you set up a spare bedroom or broom closet (ha ha) with a phone, computer and internet connection you now have a home office for your online home business.
Let’s say your home is a modest 1200 square feet. Your home office is small, maybe 200 square feet. Your home office comprises 16% of your home’s square footage.
What does this mean to you?
It means you can deduct 16% of your rent.
If your rent is $800 per month and your utilities average 75 per month you get to deduct $140 per month or $1680 per year. $1680 x 25% (tax bracket) = $420 in savings.
With your car, cell phone and home office deduction you have just saved $852.50 on your taxes.
I’d like to point out that by joining a qualified online business like mine you’d make around $489 PROFIT your first year, from tax saving advantages, even, if you failed miserably (based on approximate computations in this article)!
IF you are BUYING your home the saving should even more because you’d be able to take 16% of your mortgage payment, ANY maintenance costs, improvement costs and depreciation. IF your home office is smaller than 200 sft, the profits will be smaller as well. So …
Even IF you failed miserably (made NO money) you’d have learned how to set up your own WordPress blog, do keyword research, choose a niche, write quality content, drive targeted traffic to your site and more.
IF you learned what is taught it is very unlikely you’d fail to earn money but even if you failed you would still have gained tons of knowledge and reaped around $489 profit from tax savings! A FREE Internet marketing education and tax savings. Not bad considering we just looked at the worst possible scenario. Plus …
There are so many more deductions you can take after you start your online home business.
For example do you have children? Do you pay them an allowance? Have them help you with things they can do for your business and claim their allowance as an expense. TOTALLY legal!
And all these little things you can learn about saving tax dollars helps you KEEP the money you make when you “crush it” and make REAL money.
Starting A Home Business Can Save Tax Dollars
In this video Sandy Botkin explains more about the tax advantages you can claim after starting your online home business.
Hopefully you now understand the importance of starting an online home business and the significant tax savings that allow you to keep more of the money you earn. Be aware ALL online home business will allow you to reap tax deductions from things you already own and use but very few will allow you to actually PROFIT even if you fail miserably in your first year.
The online home business I am involved in qualifies. Even if you fail miserably (won’t happen if you follow direction well), with your internet home business, you will still most likely make a profit.
You should probably get started now, today because you can start your online home business for next to nothing if you are willing to learn the ropes and do the work. By choosing the right niche, products, learning how to market correctly and DOING what you learn, you should be earning profit online very soon. Very few sponsors, gurus, etc teach you HOW to do Internet marketing. I will.
I hope you enjoyed my article: HOW to make a profit your first year in a home business even if you fail. Let me know if you have any questions by leaving a comment.