The Game Plan For
An Ideal Tax Shelter

Your greatest EXPENSE are TAXES!

Most of this information was derived from "A Fortune At Your Feet" by author A.D. Kessler and from the tax website http://www.homebusinesstaxsavings.com by author Ronald Mueller. Mr Kessler is a billionaire, and in his book he writes about Creative Real Estate and the tax advantages thereof. The tax website shows you how to defer and avoid taxes. However, what I have done in this article is combine the two resources.

I wish to show you the value of a Tax Shelter in a Home based Business and Whats In It For You.......

"Due to the Internet, over 50 million businesses are now being operated from home in the United States alone, with an untold number in other countries, Statistics show that small and home based business are the fastest growing segments of the US economy, and with the proliferation of downsizing and outsourcing, corporate America offers little promise of job security..thats why people are turning to home based business. In a home based business you can profitably flourish without the constraints imposed by corporate hierarchies! The steady growth of home based business..will continue to prove to be the most significant growth opportunity of this era". What home based business is right for you..I cannot say. We have all heard: "do what you love". Chose a business that is congenial to you, meaning one that you would enjoy and have the gifts and talent for.

Moreover; a home based business can be an ideal tax shelter!

I cannot say that I am technically precise in defining on tax matters; for that you should consult your accountant or attorney, who specialize in tax matters. I am simply hoping to share some general knowledge that I have learned in research and while being a home based business owner. I have operated one for 4 years, so I know a little something!

You may be successful at avoiding income tax or in reducing your income tax liability, however; you continue to pay what we called "layered taxes". Layered Taxes include Social Security, unemployment, disability, sales taxes, gasoline taxes, utility taxes, improvement taxes, and school taxes (and the list goes on and on) these layered taxes amount to a great percentage of your income!

According to statistics, the income level reported by the majority of two-income families today range from $50,000 to $55,000. This income range falls in a federal income tax bracket that, together with state income taxes and "layered taxes" amounts to as much as 50%! Tax shelters are a concern for more people than ever before.

Most people overlook are just are ignorant of the significant value of a home based business as a valid tax shelter. The government pays for you to own and operate a home based business, businesses stimulate the economy. Now, the manner in which the government pays for your home based business is by providing certain tax deductions, (and to find out what deductions you qualify for; you should see your tax professional)...qualifying for tax deductions allow you to claim an increased number of allowances on your W-4. Furthermore; anytime your tax situation changes you have the right by law to adjust your W-4, for example; lets say your employer withholds $12,000 annually, or $1,000 per month from your earnings(and thats based on the allowances you claimed and information you provided when you initially started your job) When your withholding allowances increase, LESS is withheld from your earnings! This information reflects someone in the $40,000 to $50,000 tax bracket. Depending on the number of allowances claimed, you could be receiving an extra $400 to $600 more in your paycheck each week as soon as next week or however; often you get paid for the rest of your working life, the extra money can be enough to pay for your home based business and its monthly operating expenses!

There was a time when only the rich had to seek tax shelters, but that was before inflation forced ordinary wage earners into higher tax brackets. A home based business is an ideal tax shelter....and their is simply minimal risk and the basic test of any investment is the security or risk of return of your investment. Taxable income can be effectively and safely sheltered. Its a sure way to move from job holder to entrepreneur an to put inflation to work for you instead of against you. Therefore every person should avoid, reduce or defer taxes. When a person can take advantage of favorable tax treatment to increase his or her wealth, and in the process provide shelter, jobs and increased wealth for other people, thats the essence of a system that works for everybody. Thats win/win.

To qualify for Home-Business Tax Breaks, you must:

1. Intend to make a profit
2. Work your business regularly and consistently
3. Treat it like a real business
4. Record all business transactions (expenses, profits and activity)

"When you are tax sheltering your income and profits, you are engaging in tax avoidance. This is not to be confused with tax evasion. Tax avoidance is legal, moral, ethical and from your standpoint very desirable. Tax evasion is a crime. Tax avoidance makes use of the law to postpone paying taxes or to avoid paying them at all. Tax evasion is a violation of the law in which a person does not pay taxes that are legally due. Congress has given us ample opportunities to avoid taxes." You would be wise to take advantage of it".