Most governments give huge tax incentives to people engaged in home business. This is because it is good for the economy. Employment is a political issue for governments. They encourage people to start small businesses that hopefully will grow into big corporations some day. This is why governments give huge tax breaks if you start your own home business. If you are a paid employee on a fixed income it is always smart to start a part time home business to take advantage of the tax incentives provided by the government.
What most people do not realize is that the biggest chunk of cash out flow from their pocket is the taxes. These can range anywhere from 20% to 55% of the income. This is huge in terms of dollars. When you engage in network marketing business you can claim cost of travel, communications, entertainment, office stationary, advertising and even products that you buy through auto-ship (for promotion) as legitimate business expense. You can also claim part of your rent/mortgage, electricity and water bills as legitimate expenses as you are using your home as office. You can also claim depreciation on office furniture, car, computer, fax machine and other accessories that you need for your home business. You can also register for GST and claim back the GST that you have paid on purchase of items related to your business. Please speak with your local tax consultant before you embark on this course because tax laws are different in each country.
What these tax breaks do is give you huge cash flow to run your business. You can claim back on the taxes paid and get a refund to run your business. In case there are unrecovered losses then these can be forward to the next year and claimed back when your business starts to generate income.
In most cases the tax incentives are so generous that they can fund your business in the initial stages. What most people do not realize is that when you take tax incentives into account the break even point of your business is much closer than you think.
Please do not join network marketing just to get tax refunds. You have to be active in the business to claim refunds otherwise the taxman will come knocking on your doors. Having said that tax incentives provide a huge motivation to start your home based business and save on those dollars that will invariably go to the taxman never to be seen again. Network marketing is without doubt the best route to start your own home business and get on to the road to financial freedom. It is the best program if you are looking for an early retirement.
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