How to Make Your Child's College Savings or Wedding Expenses Tax Deductible!

You can make these and other ordinary, personalproducts. As long as you correctly document the
expenses tax deductible.meeting, 50% of the cost can be written off as a
How would you like to get paid $11 for every 25 milesbusiness expense.
you drive?In all likelihood, your business will show a loss as the
How would you like to write off half the cost ofincome in the early years will probably not be enough
restaurant meals with friends?to support all of the write offs.
How about writing off a vacation at the beach withThe law allows this loss to be written off against past,
the family?future or current income from other sources, say your
You have to make these personal expenses intoregular job income!
business expenses. The easiest way to do this is toThe loss reduces your salary or self employment
start a part time, home based business.income, thereby reducing your taxes for the year.
Your business will have expenses. Rent, or mortgageThis strategy can result in saving $2-$3-$6,000 per
payments, salaries, auto, travel expenses, etc. It is noyear or more for the average family!
different from other businesses in this regard.Your CPA has probably not told you about this
The IRS has special rules for writing off businessstrategy, either because he/she is not versed in them
expenses. They can be deducted from the businessor because you did not ask. It is also difficult to sit and
income first, before any taxes are paid on the income.counsel you when you show up in his office at 5:30PM,
The business only pays taxes on any income that isApril 14 with a shoe box full of coffee stained receipts
left after all expenses are paid.to have your taxes done.
These rules apply to your part time business as well.Home based business deductions are a specialty and
Most businesses start small; Dell computer started in anot every CPA is up on them.
dorm room, Apple computer in a garage, SnappleHowever, you will need the guidance and support of
Beverages in a Brooklyn apartment, etc.an accountant or CPA that is knowledgeable in this
You have to give your previously personal expensesarea to make sure you take all of the hundreds of
a business purpose, so that they become businesspossible deductions you are allowed as a small home
expenses.based business.
Instead of giving your children allowances, you giveAlso, you will have to be shown how to document
them a pay check!these expenses correctly, if not, you may end up in
I have employed my boys to distribute flyerstrouble with the IRS.
throughout our housing development, soliciting peopleTo sum up, you need to have a home based business
who might want to sell their homes.and you need to have the guidance and support of a
As long as their compensation is reasonable and theyqualified professional to help you correctly document
are paid via company check you can now deduct theiryour expenses.
salaries as business expenses. The fact that youOnce in place, you will be able to slash your taxes by
require them to put the money toward their collegethousands of dollars each year by converting once
savings or their wedding is no one's business but yours.non-deductible personal expenses into tax deductible
If you are driving to the mall, stop off at the local dinerbusiness expenses.
to stash some of your business cards in their businessOh, yeah, that vacation at the beach? Why do you
card holders atop the cigarette machine in the lobby.think they plan seminars and conferences at resorts?
That is a legitimate marketing expense and makes youGenerally speaking, as long as you spend more days
eligible for that driving allowance of 44 cents per mile.on business than on pleasure, the trip is deductible!
While at the diner, you meet with a couple of friendsEnjoy!
who are also interested in your business or its