HOW TO LOWER YOUR TAXES

Why Claiming More Income Will Often LOWER Your Tax Bill

In order to avoid paying taxes on it, many people "forget" to declare the $500, $1,000, or $2,000 they made on the side.  What they often don't realize is that in earning that money, they incurred huge potential LEGAL write-offs.  Deductions  that would not only completely offset the income earned, but actually reduce their overall taxable income from employment.  

That means, less taxes that you pay... or higher refunds that you receive!

It is almost certain that your are neglecting to take advantage of many Tax-Write offs that you have available:

• Do you own a business? If you are an ASN member, you have MANY legitimate tax write offs.

• Do you have a hobby from which you sometimes make sales? You have additional deductions.

• Do you occasionally help others for "Beer Money", You have even more write offs!

 

Cell phones, meals, travel, mileage, internet access, software, computers, clothes, portion of your home mortgage or rent, etc... 

*Note: The following is not to be construed as legal advice.  But rather, a general overview of tax advantages that are often available but missed.

 

 1.   HOME.  Your home (whether you own or rent), is usually your place of business.  Are you using your living room to hold business meetings;  do you have a spare room for an office or supplies? Do you make coffee for your clients?  Do you have a place in the home that you store your tools of trade?  Since you are allowed tax deductions for the upkeep of your place of business, you are allowed deductions for maintaining your place of residence.

•  1.  If you own your own home, you have the right to depreciate a percentage of the home's total square footage depending on the percentage of your home that is used exclusively for your business.   

•  2.  If you rent, you are paying not only for living quarters, but for rental on your place of business, as well.  You may therefore be entitled to write off a substantial portion of your monthly rent as a business expense.  Example:  You rent your home for $1500 per month, assume one third of your home is used exclusively for business means that 33% of it or $500 per month could be tax deductible.  300 x 12 = $3600 allowable income tax deduction.

 2.   AUTO.  Any driving which takes you to or from any place in which you have performed or intended to perform some action or actions which in some way directly effects your business, is allowed as a mileage deduction.

 

 Let's say the allowable mileage deduction for the year of filing is 80 cents per mile. (Varies from year to year)  If during that year you drove 10,000 business miles, your allowable mileage deduction would be 10,000 mi. x 80 cents = $8,000, that is taken right off the top of your taxable income.  What's this mean?

It means your refund is larger or your liability is smaller!

 

             Some examples of allowable mileage deductions:

            a. Driving to and/or from a meeting with customers or partners. (Your spouse, is usually your partner).

            b. Driving any place in which you will attempt to meet new customers. 

                (parties or other gatherings).

            d. Any driving done in which you will subsequently attempt to make 

               retail sales, deliver merchandise or meet new possible customers.

Another option is to lease a car for your business purposes.  If this is done, virtually every cent invested into the auto will be tax deductible.  (monthly payments, repairs, etc. )

 

 3.   BUSINESS MEALS- even alcohol! Any time that you dine in any restaurant or other such establishment, it can be considered a business meal and therefore tax deductible if you were networking for new customers or associates or in the company of a prospective  or current customer or business associate (If an "active" ASN member, your spouse is a business associate); and if during the course of the meal, some aspect of the business was discussed the said meals and refreshments are deductible. Do you spend time at nightclubs, trying to  sponsor new members???  Keep the receipts!  This also deductible.

 

  4.  NORMAL UTILITIES  Do you have utilities, electricity, gas, house phone, cell phones, internet access, etc.  They are important to your business so if you use a portion of your home for business purposes, they are deductible. 

 

    

 6. TRAVEL EXPENSES- deduct your vacations!  Virtually all expenses incurred during the course of traveling with the purpose of maintaining or expanding your business are tax deductible.  For example: Let us say you live in California and for the purpose of expanding your business or meeting with prospective customers or partners, you decide to spend two weeks in Florida. 

 

You would fly to Florida and secure your accommodations.  In the course of your stay you would, of course, make several attempts to expand your customer base, network for building your business, find investment properties, etc...  At the end of your two weeks, you fly home, and virtually all expenses incurred will have been deductible.  (air fare, hotel expenses, meals, etc.)

 

            

 

Following is a true story of how we used these principles for a friend.

To keep from getting bored, as one of my hobbies, I'm a professional musician.  Well, one evening at band practice, my bass player commented that he was mad because he had just gotten his tax returns back from his preparer (H&R Block).  According to their calculations, he had a $63 dollar refund coming.    I was very familiar with his financial situation and told him that simply was not right.  I asked him how he had handled his band income.  He, like so many others, had not reported the income thinking that this would reduce his tax liability.    I suggested that he allow me to redo his taxes, add the income, but also take advantage of what I knew were the many legal deductions he was allowed.  I used the tax principles alluded to on this page, plus write-offs for equipment he had purchased.  When all the dust had cleared, his refund was almost $1,800 dollars.    Other examples of where these principles comes into play...     Think of hobbies or even favors, that produce income or compensation, no matter how little.  Remember, often, there are many legal deductions, that will let you not only zero out that income, but create a loss that will offset your employment income.   This lessens your overall Net Income, so as to reduce your tax liability which increases your refund or your earned income credits. In short, these principles keep or better yet, put money in your pocket. a.  Other examples: sewing, handyman, mechanic, musician, babysitting, cooking for others, animal breeding (you don't need license to take the deductions), (we actually once created a legitimate $5,000 loss for someone who bred snakes for fun), it increased his refund by over $1,000!). The examples are almost endless.   Remember, when it comes to taxes, examine ALL angles  Don't cheat.  Don't lie.  But, don't needlessly give your money away!  When you have your taxes prepared, make certain that you use a professional who will ask you the questions that will allow you to minimize your liability and maximize your refund.    Is it possible that you pay too much taxes?  Are you missing loopholes and deductions that let you keep more of your money?  If there is any possibility that you are or have given the government more than its fair share of your money?-- You owe it to yourself and your family to find out! Toll Free 844 604 6636For a FREE CONSULTATION Please, when calling reference Service ID FA19276   HOW TO GET STARTED If you have any questions, please call us, Toll Free at 844 604 6636 Ext 3  or email to  asnservices@allsolutionsnetwork.org When calling, please reference Service ID FA19276