Has anyone read Lower your taxes-big time?

[Woodland]

DH has been bugging me to read this tax book forever and I finally started reading it. Well, the main point of the author is that everyone should have a home business because even if you don't make money there are huge tax write-offs. So I was wondering if you mamas knew anything about this book and could give me a few pointers on how to get started to officially have a business. DH does a lot of side work, computer programming, but he hasnt offially made a business. I would love a push in the right direction...we live in CA. thanks! Oh here is the amazon link to the book, I was actually surpriised how entertaining the book was.

[dogmom327]

I think I'll get a copy of that. I know my grandfather told me several years ago that he was able to run a lot of expenses through his LLC (which was a consulting firm but I don't think he actually did many jobs as he was retired). He said he saved a fortune on taxes and since he's one of the most ethical people I know, I'm guessing it was all legal, etc. I wish I would have asked him more about it. He's suffering from dementia these days.

[kssinca]

We have this book. I would say one of the "easiest" ways to start a home based business would be to join a network marketing company.

DH has a business but chose to do it as a corporation. We did join a network marketing company but I have not done much with it so have not been able to take advantage of any benefits.

My advice would be to keep good records of anything related to the business. We have a separate calendar, filing cabinet, credit cards, etc. just for the business only.

[griffin2004]

I have a friend who has a govt job and also a solo private business. He is able to legitimately expense a vehicle, cell phone, and other expenses through the private business. But his business generates quite a bit of income. I'm not a tax jock so I have no idea what the relationship between income and possible deductions is.

[just_lily]

I am not sure if this is the same as in the US, but in Canada every business is expected to have a "Reasonable expectation of earning a profit." That is certainly open to interpretation, but the idea is that you can't have a business that perpetually operates at a loss just so you can get the tax breaks.

OP, are you a SAHM? With my home daycare I can write off one-third of my mortgage interest (this is not normally tax deductable in Canada) and one-third of my utilities, as well as my actual direct expenses (groceries, craft supplies, paper products, etc.). Of course you have to actually run the daycare, but once I have all my spots full I will net more than I made working as a commercial banker.