Home Based Business

[Kurly]

Here’s what I will cover:
- WHY special tax breaks for HBB owners
- Who can QUALIFY for them
- WHEN you can qualify for them
- What are the BIGGEST ones
- How to “AUDIT-PROOF” them
- How Deductions produce REFUNDS
- How much are they WORTH
- How to GET your refunds MONTHLY
- How to get ANSWERS to QUESTIONS

The Bottom-Line: The government will PAY
an average-income wage-earner between
$3500 and $6000 a year if they agree to run
a part-time business from home, and at least
TRY to make a profit.

What is this last paragraph? Anyone have any information to share.

The above is taken from Ron Muellers website.

Kurly

[Bees Knees]

It refers to an estimate as to how much a taxpayer can save in taxes if they operate a home based business. A percentage of certain expenses you would incur anyway are now deductible, such as utilities, insurance, and depreciation. You also get to move a percentage of the mortgage interest and property tax deductions onto a Schedule C rather than a Schedule A. Plus the ability to deduct job to job mileage compared to non-deductible commuting without the home based business.

[Gary2]

If you search the web for Ron Mueller Home Business Tax Savings, you'll find some videos on YouTube as well as a PDF of an older edition of his book. A quick perusal suggests that he pushes aggressive approaches to deductions that are familiar to all of us. Example: If you're in MLM, and you want to take the kids to Disneyland, first find someone in Anaheim who does well in MLM and set up a business meeting (prior to making any travel arrangements), being sure to keep records both before and after. Then argue that the primary purpose of the trip was business, and deduct as much as possible.

I'd never advise something like that, and I certainly wouldn't suggest using this book, but on the other hand, it's standard advice for people in sales to tell them to arrange the first and last trips of the day to be the shortest possible, often to their home often (whether or not strictly necessary). I think he cleverly avoids explicit tax fraud, but can be vague enough that people applying his advice without more research and care risk serious errors.

[luke]

and Ron

And Ron doesn't have to go to the AUDIT your client probably will get and try to convince IRS that all is on the up and up!
I had a MLM situation where auditor disallowed a short trip (200 miles) for a "party" because the sister was having it at her home!
My client wouldn't fight it (disallowed less than $600) because it wasn't "worth it"

[Gary2]

Right. In other words, Mr. Mueller as an author does something that Circular 230 professionals are expressly forbidden from doing, i. e., playing audit bingo.

[Gary2]

Also, if you haven't already watched the Home Based Business cartoon, and the related videos from that content creator, you should do so now, because the hosting site, XtraNormal, is closing down at the end of the month (July 31, 2013). My favorite is the Simple Tax Return, which is really about PTPs.

The link to these videos was originally posted by John H.