A MLM business can save you money and save you Big through the
Tax Benefits of a Home Based Business: Wow! You may not have
thought of it that way.
Especially since you may have heard, read or been conditioned to
believe that 99.999% of the people who get into network marketing
fail and lose money?
A MLM business can actually save you a lot of money, and if it is
saving you money, you are not losing money.
Saving you a ton of money, is probably a secret that most people
tend to keep to themselves or just don’t know about.
Successful network marketers and direct sales people always claim
profits and losses from their business, which they treat as a business.
And as a business, they are entitled to some special tax deductions
for home based business. Is it intriguing to know that a viable way
to reduce your taxable income, is to have a home based business?
The focus of this article is on the tax benefits or some of the
deductions that may be available to you, who run a network
marketing home business.
Did you know that there are roughly 137 tax deductions strategies,
available to mlmers, that most people do not know about. These
tax reduction strategies are available to you a home based
network marketing business owners.
However, you probably won’t be using them all, in your first 3 to 5
years in business. Unfortunately, that’s the time frame when most
people quit, which is a shame.
Before we get any further I need you to know that the information I
share with you is simply for educational purpose.
To inform you of some of the tax write off strategies, that are
available to home based business owners in network marketing.
You need to follow IRS rules and regulations to properly implement
The following IRS Publication contains some general info
on tax deduction.
The list below is but not limited to what you may write off for tax
purposes, as you engage in a home based business.
*** Eating out, including going to nice restaurants
*** Entertainment: including having parties
*** Fun activities: going out and engaging in fun activities
*** Sporting events: basketball, bowling etc., golfing
*** Travel: by air, water or land
*** Gifting: giving away gifts
*** Online work: spending business related time online
*** Education: learning new things that you have to pay to learn
you may find this interesting.
*** if you have out of pocket medical, health, dental, vision and
certain insurance expenses, you may be able to deduct some of them.
Not too many people think about Long Term Care insurance, which
can be very expensive. Here is a way for you to purchase it and be
able to write it off on your taxes and save money.
Publication 502: Is an IRS Publication 502, that provides a fairly
long list of examples of medical expenses that qualify for tax
Long-term care have limited deduction, as explained in Form 2013,
the maximum deductible amount for long-term care insurance
Just a reminder, the key here is tax reduction… not tax evasion.
Business start up: The cost of joining the business, along with
any other expenses, you had from acquiring supplies, equipment,
furniture, business building tools and marketing and promotional
The more you spend that are legitimate business start up expenses,
the more you can write off.
More Home Business Tax Write Offs
Ordinary & necessary: Later on you may have a whole list of
bills connected to running your network marketing business.
As long as they are ordinary and necessary you may be able to write
them off, some at 100% depending on the IRS rules as applied to
your business structure and the expense being written off.
You’ll be able to write off your monthly phone bill and internet bill
the portion that is associated with your use of those equipment in
You may write off the hours you spend online sitting at your
computer conducting business or that is business related.
Mileage: And if you use your car for any business purposes you
can write off the mileage at a rate of $.57 per mile in 2015.
An example you go to a Net Cafe and pass out business cards, meet
people and share what you do with folks.
You can write off those mileage.
Each time that you go out or are out promoting your business, you
can write those mileage off, as long as you follow IRS guidelines.
Friends and family. If they live across town, there are guidelines for
you to be able to write off mileage, to visit them and conduct
And you may be able to write off the cost of any fun activities you
may end up doing or going to a restaurant, etc.
IRS have guidelines, on how to write off your mileage to and from
and other business activities. Such as entertainment and fun
Deduct fun activities: You may even deduct 50% of the cost of
any fun activities you paid for, for your prospect or business
partners, if you discuss business prior to the fun activity or after
the fun during the same 24 hrs. That’s an actual guideline.
Wow! Hey, think about season tickets to football games and even
away games, basketball games, golfing, soccer, ballet etc., and the
travels associated with them. Some of these activities can be written
off at 100% and some at 50%.
Again there are roughly 137 tax deduction strategies available and
again you may not qualify for all of them right away.
But once you get to know them and see how you can use them, you’ll
be kicking yourself in the butt, regretting that you had not done this
What about taking your significant other out to wine and dine or
entertainment and write the cost, off your taxes? No Way, you say!
YES! You can do that.
How about hiring your spouse to work in your business and
offering him/her medical insurance and using a certain technique
to write off 100% of the cost of your medical insurance?
That one stuns a lot of people but it’s allowed by the IRS.
Just think about it, all these new entitlements, from activities that
you normally spend money on. They are Now putting money back
into your wallet and bank account.
Before they were lost expenses, now they would be deductible
And because they are deductible expenses they may lower your
taxable income or adjusted gross income. That can be huge.
Now as a network marketer you can have prospects or business
partners, wherever your company is in, or you can go open up a
This allows you, if you have the money, to travel wherever your
business is in and write 50% or more of your business expenses off,
some expenses up to 100%.
The IRS have guidelines for specific deductions that you wouldn’t
believe are deductible.
What you think about gifts? Some business gifts have limits for
deductions and some are 100% no limits deductible.
A lot of people, stay away from home based businesses because they
just don’t know the tax advantages and are conditioned to believe
that the business is a scam or is illegal.
In running a home based business, the IRS wants you to do 3
simple things and they will love you.
Everything that you claim, that you will learn, to be a legitimate
business expense or deduction needs to have a story behind it.
Telling them where, when and why.
Now if, its money going into your bank account. They want to know
where it came from and how you got it.
In other words they want you to track and keep records and
receipts to show legitimacy. Today this activity can easily be done
using an apps.
Tax apps: There is a great tax apps an electronic diary that you can
use to manage and record everything you do that pertains to your
business, on your smart phone.
You can take pictures of all your receipt and store them digitally.
Record all your business mileage, expenses and activities.
Listen, IRS allows you to go 3 out of 5 years in business without
making a profit as long as you are actively, working your business
to make a profit.
You may write off all legitimate deductions for your business
losses, during those years.
Business loss: A business loss starting out is not a failure. It may
be a failure if you quit the business, at that time. Who knows the
write off that you take may lower your taxable income so low that
you end up coming up ahead with your tax refund.
Think about it, if you didn’t make a profit your first year, that
doesn’t mean your business is a failure.
You may write your losses off and create a huge tax deduction.
So your first year in business could very well be a year of learning;
however, now-a-days many people are making first year profit in
their home based business.
Coming back to the apps, this apps just makes your business life a
lot more easier, simple and wonderful. Tax season you print
everything out and they are in order and categorized and annotated
for your accountant. Your accountant will love you.
But you are not an accountant and you don’t know anything about
taxes. That’s the sweet part, you don’t need to be an account, to
do this. You don’t need to know taxes…
but you will eventually learn a lot while having fun.
Anyway, everything you need to know can be provided to you
by the same maker of the tax apps. This person is a tax attorney and
CPA a former IRS Alpha Dog of the IRS attorneys trainer.
If anyone knows the ins and out of the IRS tax codes, he does. Of
course, he doesn’t provide all of this to you for free, but the cost of
the training and apps may be 100% tax deductible.
But the beauty of all this is, if you are able to deduct an extra
$9000 or more a year for the rest of your working life, would it be
worth it to have a home based business?
What if your home business started paying you $1.56 million or
more annually and you are able to write off even more in taxes,
such as an extra $400,000.00.
I am talking up and beyond what people who do not have a home
based business pays in taxes. Would having a home based business
be worth it to you?
Now, I am often asked for my opinion on a certain type of home
based business, that lowers the chances of you losing your initial
investment. This is, even if you did not make a profit your first year.
I must confess, I am partial to companies that provides products
with true commercial value that may even appreciate in time
without expiration dates, yet provides an immediate opportunity
for resale and to reduce your, adjusted gross income.
If what you read here makes sense to you and you see the tax
advantages of having a home based business, please be nice to your
finances and get started in a home based business today.
In this context, I would suggest a company like but not limited to
this one, that offers real products with real commercial value, that
may actually appreciate in value and doesn’t have expiration date.
With that, I can only trust that this information on how a mlm
business can save you money, has opened up your eyes, your mind
to tax savings and tax write offs available to you in this business.