AN EXAMPLE

When you operate a business from home a lot of your current expenses become deductible expenses: That is they become deducted from your gross income before taxes are charged. Ron explains how the average person has to earn $17 to take home just $10. So, for purposes of illustration, let’s say you make $17,000 a year but after taxes you only take home $10,000 a year. You earn $17,000 but you have to live on the $10,000 to pay for groceries, travel to the grocery store, and all your other living expenses. But, you can change all that! If you establish a home business, instead of driving to the store to go shopping, you take time to go “inviting” people to look at your services (your “business”). You get in your car, mark down the date and the odometer reading and head out to meet people at your local stores.

We offer free conference calls and “personal trainers” to teach you how and what to say. We’ll teach you fun ways to get people’s attention and invite them to learn the secret to cutting their taxes by visiting this web site. Chances are that you’re on this page because someone invited you. When someone accepts your invitation, make note of their name for future reference as you may see them again. Following up with them by getting contact information is even better. You record their name on your Vehicle Use Log. (By the way – while your there, pick up a few groceries!) When you get home, record the odometer reading again and subtract the difference. You are allowed to deduct fifty cents per mile and if the trip was ten miles round trip, $5 of your $17 just became “tax exempt” income. You have planted seeds for future clients and while you were out picked up some groceries.

It is important to understand that the business is not just inviting others to join you in making tax deductions. Tax deductions are a “side effect” of being in a legitimate home business. As you keep inviting people, you will find people that are looking for your product or service. I chose a business model and system that requires that you only service as few as three to five clients and work with two partners to repeat the process. You will find you do not have to “Sell to People”. Make the information known and the right people will ask you to supply them. Long term results are an extra stream of lifetime income. The short term is an immediate raise in your net income from your job. (If you presently are out of work, talk to one of our coaches on how it still benefits you.)

The final result is at the end of the year. In our example your gross income was $17,000. Your business use of your vehicle (and don’t forget a part of your household expenses utilities, rent, etc. is also deductible) makes part of your gross income “tax exempt”. Let’s say your vehicle and house deductions add up to $2000 tax savings. Now your net income is $12,000 instead of the former $10,000. You just gave yourself a $2,000 raise even if your home business hasn’t made a profit yet. Even better news: Ron has a formula that allows you to receive your raise in your next paycheck!

Ready for a personal trainer and coach to help you implement these strategies? Register today!