Save Big Money on Taxes
The most under discussed reason for starting a home business, AKA side hustle, is the huge amount of money that you save on your tax bill. A home business has so many legal (and too often ignored) tax deductions that tax expert and author Sandy Botkin says the the tax deductions ALONE are reason enough to start your own business. Over the years, the tax savings have been so significant for us, it’s been like having a third income stream!
I often hear people tell me that they didn’t make enough money in their side gig to file taxes. BIG MISTAKE! No matter how much, or how little you earn you should file. Especially in the first couple of years, you are investing into building a business, so your expenses will likely be bigger than profits. Absolutely normal in any business. Posting a loss (good records are important) helps by basically subtracting that loss from other income and reducing the overall tax liability (money word for taxes you owe).
Your home business doesn’t have to be profitable (on paper!) in order for you to benefit financially. A home business has the same type of deductions as any other business! AND if you are in a consumer oriented business, like wellness or anti-aging for example, you can deduct things like gym memberships because walking the talk is important to your brand AND you will likely meet prospects at the gym. Of course you are going to speak to your tax preparer about this. Note: some tax preparers “play it safe” and don’t deduct everything you legally can deduct. Make sure your tax preparer or accountant is network marketing friendly!
In this short video, I give a few more examples of how a part-time side hustle can save you real money. It’s your money, keep it!
If you’ve been thinking about an online home business but don’t know how to start, make sure you download my free guide “Beginner’s Guide to an Online Home Business in the Health and Wellness Industry”. I give you great tips on what to look for – and the traps you want to avoid. Get it here