Deducting the Home Office - Individuals who do...
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Individuals who do not own a business pay taxes before they ever see their
regular paycheck. They do not have the same flexibility an entrepreneur does.
Of course, they do not take the risks a business owner does. So, as a business
owner, you are rewarded by knowing how to make your business expenses work
for you. In fact, as small business owner who really understands deductions and
taxes, you can control how much taxes you will pay.
A business person whose net income is $50,000 annually can enjoy a lifestyle
similar to a wage earner with an annual salary of $75,000. Why? Because as a
business owner you can structure your net income so you only pay taxes on a
small fraction of the income actually earned, in comparison to the wage earner.
This is possible only if you have done your homework and know how to record all
expenses for maximum, allowable deductibles.
To help you understand how this can work for your home business, a
basic step-by-step example is provided below.
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