Home-Business Tax Breaks Passed by Congress 

Congratulations on being in the 10% club! Everybody thinks they are paying too much in taxes, yet fewer than 10% will DO anything ABOUT it. By actively running a small or home-based business and trying to make a profit, you have created a second stream of income and begun to qualify for the huge tax breaks described in this guide. By reviewing this information, you put yourself into that small percentage of the population willing to at least consider taking some actions to reduce your taxes to the minimum required by law. This book will NOT encourage you to avoid, dodge, cheat or use “gray areas” to lower your taxes. These are, plain and simple—tax LAWS and tax DEDUCTIONS you may not be aware of. The working American’s average wage today is about $31,000, according to the Census Bureau. That works out to $15/hour. And that’s before taxes! Not much, huh? BUT, after taxes, the average American worker takes home less than $9 an hour! Did you know that? Let me ask you a question: If someone offered to show you a legal way to significantly reduce your mortgage or rent payments, or to slash the size of your car payment, legally of course, would you be interested? Of course! Why, then, do most people look like a dazed deer in the headlights when offered information on how to reduce their taxes?

The three main reasons: (1) Fear of the IRS, (2) Fear of the time it will take to keep detailed records, and (3) Not fully understanding what deductions are legal.

Their next question was, “What should we require them to DO to qualify for these huge tax refunds?

” Remembering the initial objective was for taxpayers to have a part-time business that they could ramp-up to full-time if the need arose—the requirements were (and still are) simple:

(1) Have (and be able to prove) a PROFIT-INTENT. Note the word “intent.” They wanted to incentivize us to start a home business so the tax breaks begin as soon as we begin honestly trying to make a profit. (Of course, they do expect us to make a profit within a reasonable amount of time.)

(2) Actively work your business on a REGULAR & CONSISTENT basis. Why this requirement? If we started a home-based business, but didn’t keep working it on a regular basis, we would NOT have a part-time business that we could ramp-up to full-time without notice.

(3) KEEP RECORDS that substantiate your business deductions. Treat your small, part-time business just like the big, full-time business you may want it to become.

That’s it! If you meet those three requirements, you can qualify for a boatload of new, additional tax deductions. Let there be no doubt, the government wants your tax money!

But Congress wants a stable economy even more, and small businesses contribute to that in a major way.