How can you make more money without working more hours?

After I graduated from school, an old friend suggested that I buy a home.  I knew that renting gave the landlord the tax advantages and the equity. All I got was a place to rest my weary bones after a hard day's work.  So, I saved some coins and bought my first home.  I never regretted that decision.

 Then one day that same old friend stopped by for a visit and asked me a very thought provoking question. 

“Do you have dual tax advantages and dual equity?”

I knew I got the tax advantages and built equity from buying my home.  How could I get similar tax advantages and build similar equity from ALL THE STUFF I was buying to turn my house into my home?  How could I make money on a million different things: from diapers, dog food, and detergents to tires, toilet paper, and toaster pastries? 

I was really confused.

My friend explained the concept to me three times before I finally began to understand. 

I'm glad he was patient. 

The additional sources of income and tax reductions

were like getting a pay raise,

without working more hours. 

How does it work? 

Week after week, month after month, year after year, we all have bought all kinds of “stuff”, at all kinds of stores. We got the “stuff” … the store got the money … until now.   For the past ten years, a click and order (online) rebate system, which has grown to include over 500 stores, is inviting consumers to get their “stuff”, plus some of the money. 

Some of the "founding fathers" of this consumer rebate system were

Disney, IBM, Fuller Brush, Office Max, and about five hundred others.   

When that "plus some of the money" exceeds $600 in one year (currently, plus some of the money averages $115 a month or $1,380 a year), the consumer (and the IRS) receives a 1099 Non-employee income statement.  1099 Non-employee income is the IRS' approved form for identifying non-employee "business" income (employees receive W-2 income statements). 

A 1099 entitles an online business, owned and operated by one person, with no actual inventory, to have the legal business tax advantages of a conventional brick and mortar business with inventory and employees.  For example, when business expenses are greater than business income, the excess expenses can be deducted from employee income which reduces the employee's taxable income, which reduces actual taxes. 

Resources: Click here to read Sanford Botkins overview of home based business tax advantages.

Sanford Botkins (www.taxreductioninstitute.com)  is a CPA, an attorney,and a former trainer of IRS agents.

For more details on this specific business model, read the Accidental Business.

Just like any other business, each home business's business deductions will be unique because each household's employee income, product preferences, home business income, and business expenses will be different.  The following chart is an uncomplicated illustration using just five items which yields an additional $4,080 a year of spendable money by converting employee expenses to qualifed business expenses. 

In this shopping system, a person can use or sell $300 a month of "stuff", receive rebates in excess of $100.00 a month, which produces an annual 1099 profit statement.  The 1099 statement entitles the individual to business tax deductions which results in $4,080 in annual tax reduction (see above), which averages out to $340.00 a month.

If you use or sell an average of $300 a month,

which produces about $100 a month in profit,

and an average of $340 a month in tax reductions ...

How much does your "stuff" cost? 

Can you buy your "stuff" cheaper at some else's store

than you can buy from yourself?

Caveat: It is illegal to start ANY business just to reduce your taxes.

Conversely, it is completely legal to start a home based business with the intent of making a profit (earning 1099 income) and use business tax laws (tax advantages) to assist you in doing so. 

Download and read IRS pamphlets 334 and 535 at www.irs.gov . 

Symbiosis Enterprises links clusters of families, small sports groups, and small businesses into large groups, so more people make more money... sooner. 

Click on any of the following links for more information.