After learning about all the great tax benefits of owning a 5LINX business, you would have to be brain dead not to get started, Did you know there are two tax systems in America? One that makes you poor and one that makes you rich.
The one that makes you poor is designed for employees; people who get up every day and bust their butts on a 9 to 5 job. These individuals are taxed by the government before they even see their first check. They get taxed on the first dollar made and other than dependents or a mortgage, they don’t qualify for a lot of tax deductions.
However, those who own a 5LINX business fall into a different category. Not only do they get the same tax deductions of a employees … they get the tax deductions that make you rich. As a 5LINX business owner, you have an opportunity to write off a portion of your mortgage or rent, your utilities, furniture, car expenses, travel, lodging, food and many other expenses that you probably are already paying for anyway.
In addition, 5LINX business owners can set up a pension plan that makes a government pension look small by comparison. Setting up a 5LINX home office is worth thousands of dollars each year. This is because it allows you to participate in the American tax system that makes you rich.
The United States government is willing to subsidize you while you are building your 5LINX business. They want to help you build a successful business. Why? Because the government knows that small businesses stimulate the economy. They help you in the form of subsidizing your losses.
What is subsidizing losses?
If you have a loss in your business, you can use that loss against other forms of income that you have. This includes interest, dividends, wages, and pensions. By using the loss against your earnings, you are able to reduce the amount of taxable income you are required to pay on.
Let’s say you still have a full time job where you make $50,000 a year. You decide to start a new 5LINX home base business and based on your tax write offs you are able to generate a $10,000 loss. The government will subsidize that loss and you end up only paying taxes on $40,000 instead of $50,000.
Before you jump the gun thinking you went out and physically loss $10,000, remember with a home based business you can write off a portion of your rent, mortgage, utilities, furniture, car expenses, travel and lodging. Many of which you were going to pay for anyway. This is why I stated earlier that there are two tax systems in America.
People in the tax system that makes you poor pay their rent and do not qualify to write off a portion of it. Their neighbor living next door however, decides to start a 5LINX home based business and as a result becomes a part of the tax system that makes you rich and is allowed to write off a portion of his rent. Both tax payers live in the same apartment complex but they operate in two totally different tax systems.
It Keeps Getting Better
Let’s say you are a single parent and your loss exceeds your whole income for the year. You can carry back all business losses two years and get a refund from the federal and state government for the last two years of taxes you paid. In this example you would actually get a check back! If you are a Canadian, you can carry back your losses three years.
Stop for a moment and think about what I just said. This single parent started her home based business and took a loss that exceeded her income for the year. Because of the tax system she is now a part of, she is able to go back and claim her loss against the prior two years BEFORE she even started her business! Tell me there’s not two different tax systems in America.
There’s another option. Instead of going back two years, you can carry forward your business losses for up to twenty years. This gives you the ability to offset the next twenty years of earnings. The good news is that you never lose a properly documented business deduction. As long as you are running your 5LINX business like a true business.
So what does this mean in actual dollars?
5LINX Business Tax Example
Let’s say you are in the 28% tax bracket. You earn $50,000 a year from your job. Without a home-based business and any other deductions, you would pay the US Treasury $14,000 in taxes.
Let’s now compare that with you owning a home-based business that reported a $10,000 loss. In the same income scenario, you would end up paying the US Treasury $11,200. That’s a difference of $2,800 which stays in your pocket.
If this makes sense, then it ABSOLUTELY makes dollars. Owning a 5LINX business is really critical in making your life a lot less taxing. If you are looking for more info on how to start your 5LINX business as soon as possible click here —> http://goo.gl/jN6we0
If you found this post of any value please visit and like me on facebook at http://goo.gl/YEC78s