Just Picture It Now

The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by Congress, not the IRS, and remains at 14 cents per mile.

"Rising gas prices are having a major impact on individual Americans," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."

Imagine that…the IRS wanting to be “fair” to taxpayers. I’ve heard it said that there are two tax laws here in the US.

One code for the informed; and one for the uninformed.

I constantly read comments from extremely fearful and uniformed individuals who think the IRS is out to get people. Any idea of legally and legitimately deducting anything on your tax returns concerning a home based business is a highly risky move. While I have never personally been audited, those I know of who have been audited, (including those in YTB) have told me that it’s highly overrated. Of course, they like me keep impeccable documentation and also have a Professional prepare their returns, as should you.

Those of us in YTB know of Andy Magnus and his site Your Tax Buddy, (Another term for Y-T-B.) and the discount we have with H&R Block with our RTA Advantage. I also know of several CPA’s who are cross line to me who understand the tax laws and what a home based business can do for anyone who owns one.

Back in February and March many people bought Ron Mueller’s book “It’s How Much You Keep That Counts” and I’ve also participated in some of his seminars and conference calls with tips on exactly how to document for your CPA and the IRS to keep things on the up and up. (Ron is the one who send me the special update via e-mail concerning this rate increase complete with a direct link to the IRS site.) Ron and Andy also cover how to ask the right questions when looking for a CPA that knows and understand what the tax laws mean for anyone who owns a home based business.

I can’t tell you how important it is to educate yourself on the in’s and out’s of tax savings in a home based business. Not doing so can cost you THOUSANDS a year paying Uncle Sam instead of keeping your own hard earned money. This country was founded on those that owned their own business, and the vast majority of tax laws still cater to business owners.

It’s the right thing to do for both you and your family.

Author’s note: If you’d like to see a perfect example of what I’m talking about concerning those who are uneducated about the tax laws and what it can do for you in a home based business, feel free to visit this post, which I found just before posting. Please understand that this blog poster and those who comment on it have absolutely no experience or education in tax codes or the IRS.

It’s your basic fear mongering, mud slinging and spin in an attempt to create doubt and fear in those who don’t take the time to educate themselves from qualified sources. (That’s why I post viable sources and documentation to find the real story here.)