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Are you paying too much in taxes?

 

Own a business and save some money on your taxes!

 

save on taxes

 

I want to start this article by saying that anything you read in here should mean absolutely nothing to you! I’m not a tax guy. I’m not a CPA. I’m not any kind of accountant or bookkeeper. I’m not offering any kind of advice. I’m not suggesting that you do any of this. If you have any interest in your taxes, you should consult an expert and I’m not one of those!! If you do anything about your taxes based on anything said in this article, I’m not responsible because I already told you that I’m not a tax guy!

 

With that said, let’s talk about how to use taxes to help you close someone into the business. If you’re trying to recruit someone and you’ve shown them the business plan and they have any sort of objection you can just ask them if they are paying too much in taxes. Most people will say yes to that question.

 

You can probably use the question as an ice breaker, too. Then show them the business plan after they know that they can save on their taxes with a small business.

 

Otherwise, you then can show them how they can save money on their taxes by owning a small, home based business.

 

You can just use hypothetical numbers and your prospect can realize that they either make more money or less money and will save more money or less money on their taxes. I just take the national average for income and taxable brackets. There will be money savings on most state taxes as well. If you’d like better or more accurate numbers, you should talk to a CPA in your particular state.

 

It all starts with personal income. The national average is about $63,000, for an individual. That would put that average person in the 25% tax bracket for national income taxes.

 

In my state, we pay a combined 9% income tax for state and county taxes. Added to the national taxes, that’s a total of 34% paid in taxes.

 

Here are 7 write offs that a small business owner can take and they are write offs of money already being spent. That means that the business owner will automatically save money on these expenditures.

 

These aren’t, necessarily, the only write offs that a business can take, but some of their other writes offs might require that “new money” be spent. Usually spending “new money” will give the business owner a discount on what the money is being spent, but it won’t put money in their pocket.

 

Since your prospect will being running their business from their home, they will be able to write off a certain percentage of their rent or mortgage payments. Again, this isn’t tax advice. Talk to an accountant if you want to know how your personal situation will be effected by the tax write offs presented here. Whatever percentage of your home that you have dedicated to running your business out of you’ll be able to write off that percentage from your taxes. The national average is about 12% of a home is being used for business purposes. The average mortgage is $1550.00 per month. That would mean that you can write off $186.00 per month for your home office.

 

home office write off on taxes

 

You can also write off a portion of your monthly utilities. That would be gas, electric, internet and a dedicated phone line for your business. The average spent on those utilities is $750.00 per month. They will probably be able to write off about 12% or $90.00 per month.

 

You can write the use of your car as a business expense. If you have a monthly payment on your vehicle, you can write off a percentage of the payment that is equal to the percentage that you use the vehicle for business. I’m just going to count the miles that your prospect will drive for their business in this section. The average number of miles that are driven per year is 15,000. If 30% of those are used for business purposes, then that would be 4,500 miles per year or 375 miles per month. Currently, that would yield a $200.00 write off per month.

 

The average car payment is $400.00 per month. If you are using your car, 30% of the time, for your business you will get a $120.00 per month write off.

 

If you spend part of your vacation time conducting business, you’ll be able to write off part of that as well. The average amount spent on vacations per year is $1200.00. Or about $100.00 per month. Theoretically, you could write off the entire amount, if you conduct business every day, but we’ll say that you write off 50% of it. That would be $50.00 per month, on average.

 

The average person spends $700.00 per month dining out. If they do prospecting while they are dining, they can write off a percentage of the cost of their meals. We’ll say the write off is 30% or $210.00.

 

If you add up all of the write off amounts and multiply it by the 34% you’ll get the monthly saving on that prospect’s taxes. In this case, they will save about $291.00 per month. That’s every month, not just one time!

 

It’s almost like getting free money just for owning a small, home based business.

 

Every individual’s monthly savings will be different.

 

This may be the “push” that a prospect, who is sitting on the fence, needs to sign up with you and your business.

 

Be sure to ask if your prospects are paying too much in taxes and then show them how much money they could save by owning a business. Be sure to cover yourself by telling them that you aren’t a tax expert … unless you’re a tax expert.

 

 

I hope you found this article valuable!

 

Please share it with your downline! It will help them, too!

 

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