SBI owners leave money on the table...and I'm talking $1000's of dollars...each and every tax season because they do not run their online business as a business.
Since many Site Build It owners work a regular job (W2 wage earner) they completely discount their intent to make a profit with SBI, and forfeit all of the wonderful and completely legal tax deductions guaranteed to them by law.
(I was fortunate because I purchased a $30 eBook ten years ago, and had a tax professional/Enrolled Agent who devoured every page of it. Now, there is also a CD version that expands on the book.)
As inconceivable as it seems, Site Build It owners working their tails off to make a go in Internet Marketing with their SBI membership, allow $4000 to $6000 dollars to be siphoned right from their wallets each year simply because they do not take basic, legal, business write-offs.
For some reason, SBI owners think because they work their business in their spare time, they do not qualify for any type of tax deduction.
Nothing could be further from the truth.
The United States Government provides these beneficial write-offs because they understand it takes time, money, and effort to get a small business off the ground.
NOTE: Do you really want to keep over-paying your taxes when you read about General Services Administration (GSA) employees receiving high 5-figure bonuses...with YOUR money?
Do you think, just maybe, you and your family deserve a bonus...instead of having it laughingly tossed to some government worker?
Exactly what entitles those employees to a bonus? Did they save the United States billions of dollars? (It is really pathetic, isn't it?)
Think about it just for a second: How much more enjoyment could you get out of Life, not to mention expansion of your business, if you had an extra $400 to $500 dollars EACH MONTH?
(I'm NOT talking about money you make from your SBI business model...but being able to keep that much of your own money. There IS a difference.)
Would those kinds of savings help you purchase a more powerful laptop so you could create quality web pages on the fly?
Could you use that money to purchase a much better camera or digital video camcorder to enhance your content building?
Could you travel more, or reward yourself with some nice evenings out during the year?
When SBI owners leave money on the table, they sabotage their business, their wealth building, and valid experiences that would increase their happiness.
Hardly anyone takes tax-planning seriously, and Site Build It owners are no different.
When I try to start a simple conversation just for a test, most do not want to even hear about it, much less discuss it. However, they are all losing $3,000 to $6,000 each year and will continue to do so because they could care less if they are overpaying.
SBI owners leave money on the table simply because they do not consider tax-planning a part of owning a business.
They will talk all day about what kind of HTML code to use to get a more pleasing Look and Feel...but want no part of simple strategies for putting an extra $400 (or more) per month back in their household.
(Does that make a bit of sense to you when you re-read it???)
Sadly, because most Site Build It owners see themselves as owning a "website" instead of a viable web business, they completely exclude themselves from tax savings that could be life changing.
It is very easy
to see why SBI owners leave money on the table. (Actually, it is
more like money down the drain.) Listen, I'm not trying to be harsh,
I'm just stating a fact based on conversations I've had at SBI
Whenever I go to an SBI conference, I make sure I ask each person I meet, "How do you write-off that expense?" just so I can learn something new to discuss with my own tax professional.
Here are some of the responses I have gotten.
* "What does that mean?"
* "Well, I only make about a hundred a month from Adsense, so I really cannot write off any expenses."
* "I've had a site for close to three years and have made a grand total of $75. I really don't think Uncle Sam is going to allow me one penny of deductions."
* "Tax deductions are illegal, aren't they?"
* "I don't bother with that stuff. My tax guy takes care of anything like that."
* "I really do not want to spend time documenting what I spend each day or how many miles I drive. That's ridiculous."
* "SBI isn't a real business, you know? It's just stuff on the Internet, not like a doctor's office or a hardware store."
* "My website is just something I do to try and make a little extra money. It's not like I'm trying to become Amazon.com"
* "Don't you have to show a profit in, like, once every three years or you get no deductions at all?"
* "I really do not want to draw attention to my tax return."
As you can see, misinformation, misconceptions, fear, and even laziness hold back SBI owners from keeping more of their own money.
It is my guess that the majority of SBI owners leave money on the table, and would be quite frustrated and upset if they knew how much they gave away simply because there was no valid resource to help them.
It doesn't have to be this way any longer.
In the author's (Ron Mueller) own words to SBI owners who leave money on the table...This book is for YOU, if you are…
1. Making a profit in your home-based business, or
2. Not making a Profit in your home-based business, or
3. Think you can’t afford to get into a home business, or
4. Thinking about quitting your home-based business, or
5. Heard it before, but need a Refresher, or
6. Have heard something about tax breaks for Home-Based Businesses, but have no idea what they are.
On my page Tax Deductions For A Home Business, I go into a more detailed discussion of how you can save $1000's of dollars each year with legal write-offs.
The table below is part of that
W2 wage earners CANNOT writeoff
SBI home business owners can legally writeoff
|A new computer |
A new printer
Digital camera/video camera
Meals at a restaurant
Drinks at a bar
Movies, ballgames, concerts
Tags, car insurance, parts, repairs
Vacation trips - Motels, food
Stamps, envelopes, mailing
Books, newspaper, magazines
In reality, SBI owners do not leave money on the table by driving their car...they literally throw it out the window!
It is almost as if they took a $5 dollar bill and tossed it out the window every couple of miles...all the way down the road.
Do you think those $5 dollar bills would add-up just on daily commute?
* Now what if you could turn that daily commute into a legitimate business trip, each way, everyday?
* What if you could deduct expensive parts and repairs?
* What if you could deduct the mileage for going out to dinner and a show?
* What if you could deduct the cost of a month-long vacation, including your food and motel expenses?
* What if it only took you about five minutes each evening to document your vehicle expenses?
Do you think more SBI owners would take their business a lot more seriously in regards to the money they lose each and every day because they have no clue about legal tax deductions for a home business?
Look, there is nothing scientific about this statement. I am just going from anecdotal evidence/conversations I've had at SBI conferences.
For whatever reason, women are far more open to finding strategies to keep more of their own money than guys are.
They will take the necessary time to read intently about a subject, do a thorough investigation, and gather facts.
They are not nearly as swayed by statements or opinions of friends as guys are.
I really don't get that, but here are some of the comments I have gotten from guys.
Even though they have no merit, I refuse to get in a debate because they'll say whatever it takes to hold their ground...even if it means turning their back on $1000's of dollars they could keep in their pocket each and every year.
* "I knew a guy that got in hot water for taking tax deductions."
* "If this were true, my tax guy would tell me everything to do."
* "If I bought the dang book, then I'd have to read it."
* "I just don't want to fool with all that crap about documenting stuff."
My intent is not to discuss loopholes, tax dodges, or any other phony tactic for reducing your income tax.
The whole purpose of this page is to make SBI owners more aware of how they can legally keep more of their own money by using the tax laws written specifically for small business owners...which includes individuals involved in Internet Marketing.
There is no excuse to forfeit what is rightfully yours to keep. I do not want to see any more SBI owners leave money on the table when they could be enjoying a much better life.