Network Marketing and Home Business Tax Laws

One subject you don't see much about online is network marketing and taxes.

Yes, we all have to (and should) pay our taxes. But as Ronald Mueller, MBA, Ph.D. says: "It's How Much You Keep That Counts, Not How Much You Make".

What most people are not aware of is that a home-based business can actually save you hundreds, even thousands of dollars in tax deductions.

Why Tax Breaks?

Small businesses create about 70% of the U.S. job growth.

As President George W. Bush said "Small business is the backbone of the American economy".

Even a part-time home business can qualify for more tax benefits than any other category of taxpayer.

These Are Legitimate Tax Breaks

1. Authorized by the U.S. Congress
2. Published in the IRS code
3. Approved by the Federal Tax Court rulings

What Can You Write-Off?

1. Business use of your car or truck
2. Cell phones & other electronic devices
3. Business travel with family (vacation)
4. Portion of your rent/mortgage, repairs, home maintenance
5. Gas, electric, other utilities
6. Meals, entertainment, furniture
7. Computers, equipment, furniture
8. Marketing tools, supplies, meetings
9. Hire your children to work in your business.
10. Many other deductions are available

How To Qualify For These Tax Deductions

• Have a legitimate home business - consulting, child care, direct sales, internet marketer, network marketing
• Profit - show your intent to make a profit, you do not actually have to make a profit to take these deductions
• Treat your business as a business, not a hobby. Work on a regular & consistent basis.
• Document your income, expenses and activity. Brief notes are usually adequate

If you meet these four requirements, you probably qualify for thousands of dollars in tax savings every year!

Don't Wait Until April 15th to Get Your Money Back

You can put an extra $300 to $600, maybe more in your take home pay. Just go to your employers's payroll office and up-date your W-2 (based on your added tax savings with a home business) to increase your take home pay.

These savings are frequently enough to pay for the start-up cost of your business.

To take advantage of these home business tax benefits consult with a tax expert who is familiar with home business tax laws.

Please note that as I live in the United States I am speaking of U.S. tax laws.

Each country has its own rules regarding taxes and a home business.