If you have a home based business and the proper guidance, you can get thousands of dollars each year from the government toward many personal expenses, such as vacations!
The trick is in learning how to redefine your personal expenses as deductible business expenses. In many cases, particularly when you are just starting your business, these sizable “business deductions” will result in a loss to the business. This loss can then be written off against your other income, say from your job.
The result will be that you will receive a tax refund of many thousands of dollars next year, since more taxes were taken out of your salary than was necessary
However, you don’t have to wait until next year to get your hands on that cash. You can give yourself an Instant Pay RaiseTM, receiving a portion of next year’s refund in every pay check this year by increasing the number of withholding allowances on your form W-4 at work.
With a little help from a trained tax or financial expert you can write off practically all of your personal expenses, generating an extra $200-$1,000/month in your pay check!
In this article, we are going to show you how you can actually get cash back from the government to help pay the cost of your family’s next vacation.
Access to expert assistance is one of the two requirements to accomplish this as you have to follow the strict IRS standards precisely .
The other requirement, of course is that you have a suitable home based business. By suitable we mean one that fits into your lifestyle and resources, that you can make a profit with, key IRS requirement.
To be able to collect the cash, you must first properly plan and deduct your vacation. That calls for combining business with pleasure.
Specifically, the IRS says that the primary purpose of your trip must be business, not vacation and you must spend more time on business than on pleasure.
Example. You are going to spend 10 days in Miami in February to attend a convention or meeting.
You will spend one day getting there and one day returning home. The IRS counts each of these travel days as business days.
In fact, if your business trip finishes on Thursday or Friday, the IRS will allow you to write off the cost of those intervening days at your destination until Sunday, so that you can take advantage of the lower plane fares a Saturday stay-over entitles you to!
Let’s say you spend 4 days at the meeting. You also spend 4 days relaxing with your family on the beach, sailing, fishing, etc. Of course the evenings of the “business” days can also be spent, “Chillin’.”
Since you have spent 6 days on business (remember the two travel days) and only 4 on pleasure, guess what? You get to write off the following:
All of the transportation expenses necessary to travel to and from your business destination; plane ticket, rental car, train, etc!
All of your expenses for the 6 business days, including cabs. hotel bills, rental cars, the seminar costs, dry cleaning, and 50% of the cost of meals and entertainment.
The expenses of the personal days are not deductible of course; don’t be cute!.
Now, these write offs pertain to you and any employees on the same trip. So, if your spouse is also an employee, they get the same deductions!
If transportation and the total expenses for the 6 business days for the two of you came to $2,000, that means the government will chip in as much as $700 toward the cost of your vacation, er, business trip, if you are in the 35% tax bracket!
Thank you Uncle Sam!
With the proper guidance and a home based business, you could have the government make substantial contributions every pay day toward the cost of most of your personal expenses. They could even include the cost of your children’s food and clothing, their college savings, your cars and even your daughter’s wedding!