|
Secrets The IRS Does Not Want You To Know
By: Paul Coffinger
For average Americans, taxes are the single largest bill they will pay. Almost
40% of every working person's wages go to taxes: that's more than most people
pay in utilities, rent, car loans, or education expenses. And while the burden
of most bills can be lessened by working harder and earning more money, the tax
liability only increases, so earning more money just equals paying more taxes.
Most Americans do not realize that Uncle Sam's piece of their hard-earned pie is
so enormous. After all, the amount is divided into a number of small deductions:
federal taxes,state taxes, county taxes, Medicare, social security, and so on.
Each individual chunk looks like a reasonable price to pay in order to keep the
country operating smoothly, but when added together the sum is staggering. The
majority of people resign themselves to a lifetime of working too hard and to
longfor someone else, paying too much in taxes to the government, and then
struggling to maintain a comfortable life after retirement. But they've been
brainwashed! The truth is every person can learn to work less and keep more of
their earnings, not by cheating the IRS or by hiring a staff of overpriced
accountants, but simply by following the American Dream and becoming an
entrepreneur.
Business owners, especially those with a home office, have a tremendous
advantage over the average working taxpayer. While most people pay taxes on the
total amount they earn, business owners only pay taxes on the amount left over
after their expenses. Imagine being able to deduct work-related transportation
and clothing expenses from a paycheck before taxes come out. Imagine being able
to write-off the rent, utilities, remodeling, and cleaning expenses every year.
It is possible. Business owners can legally deduct all of these expenses from
their revenue before the IRS comes to collect their fee, and so can you, the
average American simply by starting a home-based business. For home-based
operations, the IRS treats home and living expenses as tax-deductible business
expenses.
While keeping more money in their own pockets sounds like a blessing to most
Americans, few people believe it could be that easy and that legal. But it
really is. And it doesn't take an accounting degree or an MBA to understand what
the government will allow deductible expenses. All it requires is time,
organizational skills, and a desire to lower the yearly tax responsibility
substantially.
Time is essential. It will require time to set up a home-based business and to
begin generating a stream of profit. It also takes time to study the tax laws
relating to business expenses. Unfortunately, many people are unwilling to
expand the initial effort required. They prefer to make their $5000 the
old-fashioned way: by slaving away for forty hours or more a week to make
someone else rich. In reality, the time commitment of starting a home-based
business is considerably less and is required only once.
About the Author:
Paul Coffinger is a Tax Attorney and president of http://www.taxdebtsolutions.com |
