Saturday, May 16, 2009

How To Make Money on Vacation

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How to turn your fun trips into tax cuts

How would you like to deduct every dime you spend on vacation this year? Tim did. Legally. Want to know how?

Tim wanted to take a two-week trip around the US. He learned that every thing is much cheaper when you can legitimately deduct it.

1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible. Wrong.

You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS.

The first thing that Tim needs to do is set up appointments in various cities such as Chicago, Sacramento, and Phoenix before he leaves. The best way to establish this is to put advertisements in the newspaper, looking for distributors. He could then interview those who respond when he gets to the business destination.

Example: Tim wants to vacation in Hawaii. If he places some advertisements for distributors, or contacts some of his downline to perform a presentation, the IRS would accept his trip for business.

Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.

2. Make It All "Business Travel."
In order to deduct all on-the-road business expenses, you must be traveling on business. By definition, you are on business travel whenever you are sleeping overnight in a strange bed - conducting business, that is!

Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), he will be deemed to be on business travel.

Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.

3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, shoe-shines, laundry and dry cleaning, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.

According to the IRS, no receipts are required for any travel expense under $75 per expense. The only exception would be for lodging.

Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.

Tip: You would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and essential character of the expense.

Example: If, however, Tim stays in the Bate Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.

Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.

4. Sandwich weekends between business days.
Interestingly, the IRS notes that if you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.

Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he as no business on Saturday and Sunday (other than monkey business), he may deduct on-the-road business expenses incurred during the weekend.

5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business was the primary purpose of the trip. The majority of the days in the trip must be for business activities. Otherwise, you cannot make any transportation deductions. This is an all-or-nothing proposition.

Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?

All of them. (Nice work, Timmy!) Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count. Tuesday is a travel day. So every day was deductible.

Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.

With proper planning, you can deduct most of your vacations if you combine them with business. That can make your life a lot less taxing!

Monday, April 27, 2009

Most People not taking tax deductions

This tax season, I became very aware of the number of people in the mlm industry who did not realize that they owned a homebased business with all the applicable tax deductions. The majority of them had only been educated on income potential side of the mlm product not the running of a homebased business.

As a result, when the income did not appear as promised, they became discouraged and soon dropped out of the business. It is sad that no one had educated them on the tax side of the business. The fact that they could save thousands in taxes and obtain an immediate raise on their jobs.

The mlm homebased business is the best way for the average American to get out of debt.

I am doing a survey on this topic to help in the development of an ebook I am writing. Your imput and advice is desired.
Thank You.

Sunday, April 26, 2009

Home Foreclosure - Can A Foreclosure Be Stopped Or Even Delayed Altogether?

Home Foreclosure - Can A Foreclosure Be Stopped Or Even Delayed Altogether?

Home foreclosure is on the increase in both the United States and in many other countries across the world as the credit crunch hits with full force. Homeowners are struggling to make their mortgage repayments and are falling into arrears like never before.

Some estimates state that home foreclosures have reached over 30%. In other words, nearly a third of all homeowners are facing problems and the possible reposession of their home. That is an almost unbelievable figure and one that would have been unheard of just a couple of years ago. CNN told viewers: "Foreclosures spiked 112% in early 2008 - with no real end in sight."

As the credit crunch bites deeper worldwide, many homeowners will be wondering what, if anything can be done to prevent a home foreclosure.

A lot of people will feel that there is little they can do, or they will feel so upset by their situation that they will sit back and just let it happen.

If you or someone you know find yourself in this situation there are in fact things that you can do. Actions that you can take to delay the reposession of your home or perhaps prevent it altogether.

The key though is to act swiftly. It's no good sitting and worrying and just letting valuable time pass when you could have been setting things in place that would at the very least buy you some time. If you have already received a notice of default you have just ninety days to respond. That may seem like a reasonable period of time, but you should consider that in 3 months from receiving that default notice if you have not taken certain actions saving your home may be much more difficult, if not altogether impossible.

If you want to save your home from going into foreclosure you cannot afford to waste any time at all. In fact, not ignoring the situation and taking action right now, no matter how painful it is, is actually in your best interest.

There are solutions that can be arranged well before you reach the last chance saloon of having your home taken away from you. Talking to your lender at an early stage is vitally important, but do be sure that you know exactly what you should be saying to them (and what you should not)!

You must know exactly who to contact first, and in what order, to find the very best (and least expensive) alternative way to solve your current foreclosure situation.

So take action, do your research and you may find that a foreclosure is not the only option.

If you don't have time to do all the research and you need to act now to prevent your home from being reposessed, 'Home Foreclosure Survival Tactics'will help you to better understand the actions you should be taking right away.
Click on this link or paste it in your browser:

Saturday, April 25, 2009

Stopped future retirement losses and recaptured $55,000.

I met with client who had experience over $111,000 in their retirement account. I was able to put client in a more secure vehicle which guarantees no losses in the future, plus I was able to get the client back $55,000 of the the loss.

This was a great day for both of us.