Network Marketing – Home Based Business Tax Tips

My goal in this article is to help you identify your legitimate business deductions, so you will be able to put your accountant in a position to help you.


All the numbers on your tax return are your responsibility. You create the numbers, not your accountant. You are required to have adequate support for your tax return. Don’t believe this myth “My accountant takes care of my taxes”. The fact is your accountant depends on you for the numbers and information.If you give your accountant well organized records, you help your accountant to become more aggressive with your deductions, and he or she can save you money and probably charge you less to prepare your return because less time will be needed to get the return prepared.

Small Business:

Your Network Marketing business or Home Based business is treated by the IRS as a small business. You may be working from home, but you are still adding significantly to the economy. Think about all those business expenses. The computers, the office furniture, the telephone line, books, training CDs, ECT. Generally you are allowed to deduct all ordinary and necessary business expenses. The deduction depends on your ability to prove a profit motive.

IRS Statement:

You must maintain records that support accurate tax returns. The records must be permanent, accurate and complete.
Aside from all the permanent records you are used to keeping from previous tax returns, I suggest a daily diary. That can be a simple appointment book where you write things down. The smaller the business the more important your diary will become.

Business or Hobby:

Now before we get into the deductions you may be entitled to. Let’s make sure you are running your business like a business, not a hobby. If the IRS considers your business a hobby you will not be entitled to business deductions. This is very important. A hobby is something you do perhaps once a week and have no expectation of making a profit. A business is something you do at least four days a week and have a clear profit motive.

Here are a few things you can do to assure your business is treated as a small business by the IRS.

1. Check book

Keep a separate business checkbook. I suggest the two part checks, this way you always have a copy.

2. Business Credit Card:

Use a business credit card. This will help keep your record keeping burden to a minimum. If you don’t have a business credit card get one. In the mean time dedicate one of your personal credit cards just to be used for business and nothing else. With a business credit card you can deduct the finance charges as well as the annual fee if the card is used solely for business. It is very important not to co-mingle business and personal expenses.

3. Business Card:

Get yourself a Business Card. I have a few suggestions here so please bare with me. A business card is a tax deductible expense; it is a direct representation of you! Please spend a little money on a good quality card, make sure it has your name and company name, perhaps a logo, phone numbers and email address, and lastly and this is my personal opinion your home address. If you work from home and want to claim a home office deduction, and you should (they are worth a lot of money in your pocket) put your home address on it. There is nothing to be afraid of. After all you the person giving the card to people you want in your business. If someone gives me a card with a post office box number on it I tend to be a little less trusting, but might just be me.

4. Business Plan:

This is very important; a business plan sets you apart from those people who get into a business to see what happens. A business plan says I here to make a profit and I know it will take some time and planning. It can be a simple plan or an elaborate plan. Don’t panic I’ll make it simple and you can dress it up if you like? If you are in a business just answer these questions. How do you expect to make money? What are you going to do to prepare yourself to be profitable? When do you expect to see a profit?

5. Example of a very simple business plan:
On a piece of paper write your name, address, and date. On date I started a home based business that I will operate from my home at– The name of the business is (this can be your name as a DBA). My initial investment to begin this business was $________ and I pay $______monthly to remain in good standing with _________. I plan on training for thirty days. I have a $__________ advertizing budget. I have set aside $_________ for miscellaneous expenses. (Now you can state your goals) I plan on making my first sale by “date”. After 90 days I plan on making $______ per month. After six months I will be earning $_______ per month. After earning $_____per month for three months I plan on quitting my job at the bank and doing my home based business full time.
In this little statement you have made it clear you plan on being profitable. You consider this to be a real business and you are in it for the long term. Put it in a niece folder, be proud of it, and read it often.

To Your Success

Bill Morgan

Consider Investing in a Fireproof Safe

Home safes are put in place to protect people valuables in their home against theft. These safes can be fixed or removable, but are often heavy and bulky and by no means the easiest thing to steel or break into. Many people choose to invest in a home safe to protect their valuables from burglaries, nevertheless, something that is often overlooked is internal threat against personal items of value; sentimental or financial.

This may include the threat of water damage caused by flooding. Many areas are prone to these weather conditions, and many homes will also suffer from burst pipes that cause immeasurable damage to their homes contents.

Another thing that is often overlooked is the threat of fire. This is a more common occurrence in homes, often caused by a gas leak, a damaged oven, bad wiring or electronic items that have been left on overnight. As fire is a very real threat and can occur when least expected, if you are thinking of investing in a safe for your home, then purchasing one with fireproof capabilities is a good idea.

These safes are ranked depending on the level of their fire resistance. And if is important to be aware of the fact that safe with a higher ranking may resist fire longer, but they will also cost you more money to buy in the first place.

Therefore you will need to consider how much you are willing to pay before purchasing a fireproof safe for your home. Fireproof safes have all the functionality of other home safes, along with the additional protection they have against fire.

Grants From the Government To Start Or Expand Your Business

Most people never apply for a FREE GRANT because they somehow feel it isn’t for them, feel there’s too much red-tape, or simply don’t know who to contact. The fact is, however, that people from all walks of life do receive FREE GRANT MONEY and other benefits from the government, and you should also.

With an economy that remains unpredictable, and a need for even greater economic development on all fronts, the federal government is more willing than it ever has been before to give you the money you need to own your own business and become your own boss! In spite of the perception that people should not look to the government for help, the great government give-away programs have remained so incredibly huge that if each of the approximately 8 million businesses applied for an equal share, they would each receive over $70,000.

Anyone thinking about going into business for themselves, or wanting to expand an existing business should rush for the world’s largest “one-stop-money-shop” where FREE MONEY to start or expand a business is being held for you by the Federal Government. It sounds absolutely incredible that people living right here in the United States of America wouldn’t know that each year the world’s largest source of free business help delivers: over $30 billion dollars in free grants and low-interest loans; over one-half trillion dollars in procurement contracts; and over $32 billion dollars in FREE consulting and research grants.


As with all grant seeking, the key to obtaining grants is preparation and knowledge about funding sources. Preparation means identifying programs that are available, and then determining if you fall within their restrictions. The following sources will be invaluable to you in locating thousands of sources of FREE MONEY!

There simply is too many facilities and Government organizations around to even begin listing all that are available from the federal and state governments. It is clear however, that the general types of programs that are available and where to begin are easy enough to find if you are keen enough.

As you contact different agencies for grant money, learn not to accept “no” as a final answer. There are so many new programs being offered each year that often an agency’s own employees won’t be aware they are offering the one you ask about.

A state may raise money through industrial revenue bonds to buy your fixed-asset equipment. The public, which invests in these bonds, do not pay taxes on the earned interest.

It just means finding out where the agencies are within your own states and local governments. The contacts you want to make may only be minutes away.

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