How to save thousands by writing off the things you buy

"Why should I start my own small business in the first place?"

The answer is an important one: Because it lets you pay for the things you're already doing by using pre-tax dollars instead of after-tax dollars, and that saves you a big bundle of money every year.

In fact, I've made it a founding principle of small business: Let your business pay for the things you enjoy!

What do I mean by that? (This is a very powerful principle that could save you many thousands of dollars this year alone... keep reading.)

Consider this: Most people have a JOB, where is where they earn money, and then they have a LIFE, which is where they spend money doing things they enjoy. Many people subscribing to this list are into natural health, so part of their LIFE involves purchasing superfoods, nutritional supplements, massage therapy, traveling to health retreats, buying health-related devices, and so on.

Now here's the huge financial mistake most people make on this: They earn their money at their JOB, and then they pay huge taxes on that money, and then they use after-tax money to buy the things they actually like to do in their LIFE!

This is a terrible way to waste money. Let me demonstrate this for you with some simple math:

Mary makes $2,000 a month. State taxes, federal taxes and social security taxes take 25% of her check, leaving her $1,500 a month as take home pay.

Using that $1,500 a month, Mary buys $250 / month in superfoods and supplements, plus she spends another $250 / month in health-related books and services (like chiropractic care, acupuncture, etc.). This leaves her with $1,000 / month, from which she has to pay her rent, bills, student loans, or whatever.

The key point to understand here is that Mary is buying things with after-tax money. She's paying taxes on the money first, and then spending the after-tax money to buy things for her LIFE. It's like being charged twice for all the things you buy.

What if she could spend pre-tax money on those things instead? Effectively, everything would be 25% cheaper (or more, if you're in a higher tax bracket).

Saving Mary's dollars

Let's take a look at how that works:

In addition to working her JOB, where she takes home $2,000 / month, Mary also starts a part-time health-related business of her own. (I'll be sharing LOTS of ways for you to start small, low-cost businesses that can earn real dollars for you... that's for the next email...)

To start her small business, Mary forms a simple LLC (costs less than $200 to do this online) and starts a low-cost online business. For this demonstration, it doesn't matter what that business is, but it could be a content web site funded by Adsense ads, a small network marketing distributorship, a self-published book or video, an online health coaching business, a product review affiliate site, an herbal soap-making business or something similar. (I'll present lots of business ideas for you in this Mindful Wealth email newsletter. Stay subscribed to receive those ideas...)

Mary's part-time company earns $600 / month in revenues, and she spends about 5 hours a week running it (20 hours a month).

But now, here's the difference -- Mary's expenditures on health-related books, products, services and travel are all now tax deductible business expenses directly related to her business, which is producing a small profit.

So instead of spending $500 / month in after-tax money buying the things she likes, Mary is now spending pre-tax money by allowing her LLC to buy these things, and she writes them off as tax-deductible business expenses.

Do you see how this saves Mary a lot of money?

Here's the math:

SCENARIO #1: THE JOB

Income source #1: Mary's JOB, $2,000 / month ($1500 take home pay after taxes)

Expenditures: $500 on health-related products, services and travel

Money left over: $1000

SCENARIO #2: THE SMALL BUSINESS

Income source #1: Mary's JOB, $2,000 / month ($1500 take home pay after taxes)

Income source #2: Mary's online business, makes $600 / month

Total take home pay: $2100

Expenditures: $500 on health-related products, services and travel, which are now deductible as business expenses!

Money left over: $1600 with NO additional tax burden.

Additional time required: 5 hours per week

In other words, by spending 5 hours per week, Mary has been able to increase her after-tax take-home pay by $600 per month while still acquiring all the health-related products and services she normally buys!

Get more benefits for less work

Do you see the magic of what happened here? In both scenarios, Mary is spending $500 / month on the things she enjoys (essential oils, wellness products, green home products, health-related travel, etc.), but in Scenario #1, she's buying all those things with after-tax money (expensive money), while in Scenario #2, she's buying them all with pre-tax money (cheaper money) and them writing them off as legitimate deductible business expenses.

As a result, her online business only earns a small "profit" of $100 / month, which she will have to pay a small amount of income taxes on. If Mary spent $595 per month on business-related expenses, then her "profit" would only be $5 / month!

The strategy here, of course, involves creating a business that's related to the things you enjoy doing (and buying) anyway. If you're going to spend several hundred dollars a month on books, supplements, computer equipment, travel and health-related services, it makes no sense to be using expensive, after-tax dollars to pay for them all!

Keeping it legit

So how do you make sure these purchases are a legitimate part of your business expenses? It's easy: If you ever review or recommend the books, products or services you're buying, then you have a legitimate reason to write them off as business expenses (check with your accountant for full details).

You could:

* Recommend the products in your blog, in your book or on your video.

* Write article reviews.

* Mention them on your internet radio show.

* Retail them on your e-commerce site.

* Sell them through affiliate links.

* List them on your website along with their ingredients (and maybe a comparison chart).

... each of these is a legitimate reason to write off these expenses. Other expenses you can write off include:

Books: You have to read health books to stay up on the industry.

Travel: You need to visit a city to check out a health practitioner there.

Kitchen appliances: You need a Vita-Mix blender to create the smoothie recipes listed on your website.

Services: You need to experience acupuncture for yourself so you can review it.

Supplements: You need to review these health supplements for possible recommendations or coverage on your blog, website, book, videos, etc.

Computers: You need computers to run your online business.

Exercise equipment: You are evaluating the equipment for possible recommendations.

For all the above, when I say "recommendations," that could be something as simple as a list of "recommended products" on your website. You don't have to be a professional writer, or a professional radio DJ to make recommendations. Can you type a list? Then you can make product recommendations.

The key to all this -- and this is really important -- is that you have to make MORE money than you spend on all this.

If your business loses money year after year, the IRS won't let you deduct its expenses, because it figures you're just trying to have a fake, "shell" business used to write off expenses. But if you actually make a small PROFIT each year (even just a $100 profit), then your business has legitimacy, and as long as you can justify your expenses and incorporate them into your business in a legitimate way, then you can write them all off as tax-deductible (check with your accountant for details).

Now you know one of my own secrets to saving money. All the products I review on NaturalNews are things I purchased, and then wrote off as legitimate business expenses. It's my JOB, after all, to review and recommend health products, books, services and similar things.

And as a journalist, I travel to find great stories for NaturalNews. I flew to Hawaii to interview Cyanotech (spirulina makers), Florida to interview KC Craichy (LivingFuel), California to participate in trade shows, etc. ALL my travel is business-related. (Otherwise I wouldn't travel much, because I'm no fan of commercial airlines...)

Ask yourself this: Where are you traveling right now that could legitimately be a business-related expense?

What are you buying right now that could be legitimately related to your online business? What are you reading? Because using this strategy, you can write off audio books, physical books, movie documentary rental services, memberships to the local yoga studio, a video camera, a laptop computer, your internet access fees, an audio recording device, a high-end digital camera, and much more.

Stop wasting after-tax money buying the things you need! By using this small business strategy, you'll incorporate your purchases into your business and use pre-tax money to purchase them!

Reasons to Hire a Tax Law Attorney

The IRS is probably the most feared arm of the United States government. There are people who fear the IRS more than they do the FBI or the CIA. In facing this branch of the government, you will need a lot of help. While some people may advise you to get a Certified Public Accountant, there are lot of reasons not to do so. In fact, what you should do is get a tax law attorney.

Why should you hire a tax law attorney?

First of all, facing the IRS means that you either haven't hired an accountant, or your current accountant has done a pretty bad job of managing your finances. This means that it is already too late to hire another CPA to fix your problem. The IRS has already done the math, so you will be wasting resources if you hire another person to do it all over again. You need to focus on areas that you still need to prepare for. What you need is a competent tax law attorney to help you with the legalities that you will be facing.

There is also the issue of client-attorney confidentiality. While a CPA can be forced to divulge any information concerning your accounts to a court, a tax law attorney is legally exempted from doing so. Remember that this confidentiality can be extremely important during trials.

Another advantage that tax attorneys have over CPAs is a deep understanding of the ambiguity of tax law. CPAs are trained to recognize something as either black or white. They are trained to categorize things very specifically and may not recognize the various gray areas of tax law. A good tax law attorney knows that the law can have a thousand different interpretations and uses this fact to your advantage.

A tax law attorney can also help you by giving you truly complete advice. This is because of the fact that they are experienced in matters involving tax laws. A tax law attorney will be able to give you advice on different legal measures that you can take to solve your Tax problems. A CPA can only help you in terms of fixing your budget or computing your taxes, but can offer very little help regarding how to fix your tax problems.

A tax law attorney, on the other hand, can show you a lot of things you can do to legally get the IRS off your back. A good tax law attorney can help you by giving you various tips on how to compromise with the IRS and end up paying much less than what you might think is your due.

The IRS can use different techniques to intimidate you into paying the amount that they will insist you owe. People who are unfamiliar with the methods of the IRS often pay this amount without taking the time to question why. A good tax law attorney can help you get over your fear of the IRS and meet them on the legal battleground. A good tax attorney will have the resources necessary to help you overcome any intimidation tactics that the IRS may use to force you to pay.

The best reason that you can have to hire a tax law attorney is the fact that taxes are based on laws. This means that taxes are the natural stomping grounds of tax attorneys. They know their ways around it and they know how to survive it.

Hybrid Cars Tax Rebate: The Benefits You Get When You Own a Hybrid Car

Hybrid cars are one of the latest innovations in the car industry today. Because of the rising cost of fuel, car manufacturers have integrated the hybrid technology in their cars. The concept of the hybrid engine technology is actually very simple to explain. Although hybrid cars still use fuel, it can efficiently save it. This is because the hybrid technology combines the electric motor technology with the gasoline engine.

With the hybrid technology, it allows consumers to save as much as 30 miles a gallon on fuel. The main advantage of hybrid cars is when the car stops or when it is running on idle mode, it automatically shuts off the gasoline engine. However, the car will continue running but it will run on the electric motor. Therefore, it saves a lot on fuel. Just imagine being stuck on traffic, with the hybrid technology, you will never waste precious and expensive fuel when the car is running idle. This is also the reason why hybrid cars are so quiet when it is stationary. When you step on the accelerator, the gasoline engine automatically turns on again.

Another reason why hybrid cars are now preferred by most people is that it emits lower levels of toxic emissions. This means that hybrid cars are environmentally friendly. Just imagine, if all people would start using hybrid cars, it will lessen the emission of carbon dioxide. For this reason, it will effectively stop global warming.

Because hybrid cars can both help in saving precious fuel and reduce the emission of toxic fumes, the government is now taking all the necessary steps to promote the hybrid technology. The consumer who owns a hybrid car can enjoy more benefits than you may imagine. Not only will they save a lot of money on fuel, and help produce a cleaner environment, but they can also enjoy tax rebates.

Back in 2005, the President of the United States signed an agreement back in the year 2005 that says that hybrid car buyers will be able to enjoy large amounts of tax relief. However, the amount of money you will save on the tax incentives will also vary on the hybrid car you purchase.

The first one you have to consider when getting a tax break is that it will depend on the fuel efficiency of the hybrid car you purchased when you compare it to a conventional car in the same weight class manufactured back in the year 2002. The more it saves fuel, the bigger the tax break will be.

The tax break imposed on a hybrid car will also vary on the amount of gasoline that the hybrid car can save in its total years of operation when it is compared to a conventional car in the same weight class. The more gasoline it saves, the bigger your tax relief will be.

It is a fact that hybrid cars can be expensive. However, just think about the long term benefits that the hybrid car can give you. If you calculate overall total expenses of a hybrid car and compare it to the total expenses of a conventional car during its lifetime, you will see that you can save more money on fuel. You will also save money on taxes. You will see that purchasing a hybrid car is definitely a good investment that all people should consider.

Not only will you be able contribute in producing a cleaner environment and save a lot of money on precious, expensive and limited supply of fuel, but you will also save a lot of money on tax rebates for hybrid car buyers.

Fight the lies about the FairTax

his is a crucial election, and the stakes are huge. Maybe that explains why the blatant lies about the FairTax are now being used by cynical campaign operatives across the nation!

A slew of new political ads in print, on radio and television and on phone messages--targeting both incumbents and challengers who support the FairTax--have surfaced. Each one attacks candidates and the FairTax with outright lies and deliberate exaggerations and drives the public away from this desperately needed reform. In fact, politically-inspired distortions now threaten the FairTax, the policy revolution that can save America's economy at the very time we need it most.

Help us fight the lies against the FairTax now.

Here are just two examples of what we're dealing with:

• In Texas, Congressional candidate and challenger Pete Olson is under attack for supporting the FairTax. His opponent’s ads, phone bank recording, and direct mail attacks say the FairTax, "...would mean higher prices at the pump, at the grocery store and the pharmacy." (I guess Nick Lampson’s campaign "forgot" to mention that the FairTax replaces the current income tax and removes all embedded taxes which would actually lower prices and dramatically help consumers by restoring their whole paycheck to make those purchases in the first place).
• In Arizona, three FairTax-supporting candidates are being attacked for their FairTax support. In fact, the executive director of the Arizona Democratic Party said in a news release, "Arizona's middle class families are already struggling to put dinner on the table. The government shouldn't add to that burden with a hefty consumption tax that would raise prices by 23 percent." (I guess these folks "forgot" the fact that the FairTax will finally completely untax the poor with the monthly prebate, provide a major lift to middle class purchasing power, return jobs to the United States and strengthen Social Security and Medicare!)
• And more lies and distortions from others are coming every day...

Let me be clear: FairTax.org is not endorsing any candidate be they Democrat, Republican, Independent, or Libertarian. We welcome all to the FairTax cause. Our interest is solely the FairTax and the well-being of the American taxpayer and the health of our economy. We must fight for an honest and accurate representation of the FairTax in all forums and stop cynical political operatives and candidates from distorting what could be the most important public policy change in recent American history. That means we must vigorously answer any and all efforts by those distorting the FairTax for political gain.

Can you make a $25 contribution now to help us challenge these blatantly false attacks on the FairTax?

As we saw earlier when the FairTax was also in the crosshairs during the presidential primaries, these attacks show just how far the FairTax has come and that we are having an impact at the national level. There is still much to do to make the FairTax a reality, but we need your help right now to answer these attacks with ads, media work and direct mail to continue to move our cause forward during this absolutely pivotal election year.

Please help us stop the lies!

As a FairTax supporter, you know how important this issue is to the strength and vitality of America. We hope you'll help us fight back, keep the FairTax record straight and keep these campaigns honest.

Sincerely,

Ken Hoagland
National Communications Director