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  1. #1
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    Tax deductions, a great reason to start a business

    A great reason EVERYONE should have a home based business.

    This applies to the US:
    http://mlm.com/articles/view/updated...n-hours-a-year
    Last edited by ChrisDoyle; 01-23-2013 at 06:45 AM.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  2. #2

    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    The number one reasone EVERYONE should have a home based business.

    This applies to the US:
    http://mlm.com/articles/view/updated...n-hours-a-year
    I disagree, tax deductions are not a reason for having a home based business.

    If they're your "number one" motivation, then almost by definition your not eligible for them.

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  3. #3
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by IBOFightBack View Post
    I disagree, tax deductions are not a reason for having a home based business.

    If they're your "number one" motivation, then almost by definition your not eligible for them.
    Fair enough, I changed number one. Still a great reason.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  4. #4
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    Fair enough, I changed number one. Still a great reason.
    Right, everyone should join MLM so they can get tax refunds right?
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  5. #5
    Yawn...'s Avatar
    Yawn... is offline I ain't got time for pedantic Ghandi type internet nerds
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    A great reason EVERYONE should have a home based business.

    This applies to the US:
    http://mlm.com/articles/view/updated...n-hours-a-year
    And if you take this deduction, when you sell your house, there is depreciation recapture.
    ("Unrecaptured Section 1250 Gain")

    If you sell your house at a gain:
    1) The first $250,000 (single), or
    2) $500,000 (married) of the gain is TAX FREE.
    3) Assuming residence is held 730 days +1 day. (Adjusted by a faction of 1/730 if held less than 730)

    Unrecaptured Section 1250 Gains are taxed at a flat rate of 25%

    Unless the rules have radically changed,* Using the home office deduction (usually) is not a good idea....

    .... If you have a gain on resale.

    *(I am not a tax expert, or have I fully read the new IRC simplified rules)

    However, Section 179 depreciation deduction, is a more favorable (usually) for small business.

    But again, a deduction is not a sole justification for a business venture.

  6. #6
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by Joecool44 View Post
    Right, everyone should join MLM so they can get tax refunds right?
    That's one very good reason; the others are:
    to make money
    more time,
    and to benefit from the products.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  7. #7
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    That's one very good reason; the others are:
    to make money
    more time,
    and to benefit from the products.
    And you get tax refunds from MLM when you LOSE MONEY, thus lowering your tax liability from your J-O-B income.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  8. #8
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by Joecool44 View Post
    And you get tax refunds from MLM when you LOSE MONEY, thus lowering your tax liability from your J-O-B income.
    You get tax breaks if you lose or make money. Expenses will come off your gross profits.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  9. #9
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    You get tax breaks if you lose or make money. Expenses will come off your gross profits.
    It should be noted that legitimate business expenses can be deducted.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  10. #10
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by Joecool44 View Post
    It should be noted that legitimate business expenses can be deducted.
    Correct.....
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  11. #11
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    Correct.....
    Many MLMer's mistakenly think they have legitimate expenses.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  12. #12
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by Joecool44 View Post
    Many MLMer's mistakenly think they have legitimate expenses.
    I follow the advice of an accountant who is very experienced in direct sales and I advise everyone else to do the same.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  13. #13
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    I follow the advice of an accountant who is very experienced in direct sales and I advise everyone else to do the same.
    Amway's rule:

    5.4.4. Must not promote potential tax benefits of the Plan.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  14. #14
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by Joecool44 View Post
    Amway's rule:
    Thanks. I'm not with Amway.

    Remember, they're not tax benefits of any ''plan'', they're tax benefits of being self employed/running a home based business. They apply to non MLM businesses too.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  15. #15
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by Yawn... View Post
    And if you take this deduction, when you sell your house, there is depreciation recapture.
    ("Unrecaptured Section 1250 Gain")

    If you sell your house at a gain:
    1) The first $250,000 (single), or
    2) $500,000 (married) of the gain is TAX FREE.
    3) Assuming residence is held 730 days +1 day. (Adjusted by a faction of 1/730 if held less than 730)

    Unrecaptured Section 1250 Gains are taxed at a flat rate of 25%

    Unless the rules have radically changed,* Using the home office deduction (usually) is not a good idea....

    .... If you have a gain on resale.

    *(I am not a tax expert, or have I fully read the new IRC simplified rules)

    However, Section 179 depreciation deduction, is a more favorable (usually) for small business.

    But again, a deduction is not a sole justification for a business venture.
    When I first started working at home many years ago, my accountant said not to write off the room where my office is because I would most likely regret it should I ever sell the house. Based on his guidance, I have taken a very conservative approach on what is considered business expense. I have since switched accountants as the old one moved, and the new one's approach is the same if not even more careful.

    Edited to say that I a friend and her husband were audited by the IRS and it was not a pleasant experience. Fortunately, she is an excellent record keeper and that is they only thing that saved them from further grief.
    Last edited by Sandalwood; 01-24-2013 at 07:40 AM.

  16. #16
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    Re: Tax deductions, a great reason to start a business

    Quote Originally Posted by ChrisDoyle View Post
    A great reason EVERYONE should have a home based business.

    This applies to the US:
    http://mlm.com/articles/view/updated...n-hours-a-year
    That's the dumbest reason to start a business. Unless you're very wealthy and have a time machine allowing you to go back and invest in a tax shelter.

    Hope this helps

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