Taxes: Keep More of The Money YOU Make...
It’s that dreaded time of year when that dirty word comes up. “Taxes” Just the thought of it used to make me cringe. If you were like me, you would keep your fingers crossed and just pray that you wouldn’t owe anything come April 15th. Once my wife and I purchased our new home some 7 years ago, we found a new way to ease some of that, and when our children came along they were also ways to keep more of the money we earned rather than giving it to IRS. Every year, we would collect the W2’s from several jobs we had and total them all up. We were often surprised at how working several jobs would total to a nice gross amount. We then would also realize just how much money was taken away to pay for our taxes. Each year, the majority of us work until April 15th just to pay our taxes. A full quarter of our work year goes to Uncle Sam.
We are all looking to make more money to provide for our families and to enjoy the finer things in life. But when was the last time you got a raise from your employer? If you did, it was somewhere in the neighborhood of 2 ½% based on the national average. Yet the rate of inflation is more than triple that rate. So what do we do? We go out and find another part time job!
Consider this as an alternative…instead of a part time job, what about a part time Home Based Business?
We opened our YTB Travel Network business back in January 2005, and we worked this like a business. We also took full advantage of the tax benefits of this business. Here are just a few examples of what we were able to use to our advantage because we owned an On-Line Travel Agency. As you read this list, I want you to pay particular attention to the items on this list and compare this list to what YOU already have and are already using currently in you home for personal use.
1- Startup Costs- Expenses such as kits, or franchise fees may be claimed as a deductions.
2- Business Supplies. All receipts for any supplies we purchase for our business use. Computer paper, business cards, pens, catalogs, or any items purchased and use for our business.
3- Car Mileage- I stop one mile away from home to get a cup of coffee in the morning and give someone a business card, and the same before I come home. All miles between can now be claimed.
4- Computers- I purchased two new computers for business use, one laptop and one desktop and the cost of the computers may be claimed. We may also claim depreciation for 3 years after the computer was purchased.
5- Internet access- We have on On-Line Travel Agency and the internet in the home or office is for business, and we save all receipts for each bill paid.
6- An in home office- A portion of our home is an office can also be added.
7- Cell Phone – Is considered my business line. The vast majority of the calls received and made concerning our business are made on this phone.
8- Postage- All postage costs paid or shipping fees may be claimed. We keep receipts for all shipping supplies, and postage.
9- Dining- Before any waiter or waitress gets their tip from me, I make sure I have their name and e-mail address written on the back of the receipt so I can send them my Travel Steals and Deals. We just conducteda business transaction and dinner is now a deduction.
10- Travel and Entertainment. And for our business, this included ALL TRAVEL, including our personal vacations down to Disney in two weeks and our cruise on Freedom of The Seas in August.
Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Most of the time, average home expenses can be related to your business can be added as a deduction on your taxes. We already had things like high speed internet access, cell phones, cars, and a room in the house we used as an office, but could not claim any of those items before. Because we talked with our tax accountant last year about our business, we were able to keep and now claim all of the receipts mentioned above which gave us an extra $4,700 in additional money returned to us with this years return! Even if we didn’t make a dime in our Home Based Business, we ended up saving over $3,700 more than we would have without investing in our business for the entire year! ($4,700 less $995 for startup and monthly web site fees for our On-Line Travel Agency.)
Each business is a bit different so be sure to mention these ideas to your tax advisor or accountant to see if your business can qualify for these deductions.
And you may be thinking that those personal vacations we claim are not legitimate. We are Travel Agents and it is customary for us to travel in our industry. I don’t do anything underhanded or illegal. You’ll see a review of our trip and what we liked and didn’t like, just like we did earlier this year when we took a
Weekend Getaway to Sandestin Resort. And that trip reminds me of another deduction we are able to claim this year, our
Fuji S9000 digital camera that I took the pictures with to show all of you how nice it was.
Want to ease your tax burden? Want to keep more of the money you make?
We found a way to work smarter, not harder and started a Home Based Business.
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
Learn How To Become A Travel Agent
Book Your Travel & Vacations With
Travel Reservations: 1.800.243.4450
RTA #24635
