The following is from a website called YTB Report. While they do have a disclaimer at the bottom that says the site is "not affiliated with, sanctioned, approved or endorsed by YTB ", it seems to be full of typical cheerleading. Maybe it is a Traverus site in disguise.
But on this site, they are offering tax tips for home based travel agents. While the info is disclaimed, I did show it to my accountant, and after he was done laughing, he handed me a bill for wasting his time! (Not really, but it made for a good point.)
Now, how seriously do you take advice from an "accountant" with an email address at AOL? To further that, one that is slashyourtax at aol? I wonder if there are any auditors that read this blog that might chime in on the applicability of this advice.
But nonetheless, it is interesting.
(Note: This is my disclaimer. The following advice looks shady, ill advised, wrong, and likely illegal to me and my accountant. Heeding it is at your own risk and neither this blog or I will be responsible for your foolish mistakes.)
This comes from a page on the YTB Report site:
THE INTERNET TRAVEL BUSINESS
PERSONAL TAX-SAVINGS
ESTIMATOR PROFILE
The best means for saving taxes for the average American is to operate a home-based business. In fact, if you do not currently operate a home-based business you are over paying your taxes by thousands of dollars each and every year. By operating a home-based business and keeping good books and records, any taxpayer can legally convert a major portion of their non-deductible personal expenses into new tax-deductible business expenses and immediately increase the amount of their hard earned dollars they get to keep each and every year. Dollars that can be converted to personal savings and that can be put to work to build personal wealth for you and your family!
The purpose of this estimator is to help you calculate the amount of annual tax savings you can expect by operating your own home-based business. Properly established and documented, your investment in your own home-based business represents a risk free investment guaranteed by the tax laws passed by Congress and imposed by the IRS!
This estimator was prepared by Accounting & Business Consulting, LLC in order to help you determine the amount of tax savings that the average taxpayer could expect by operating a home-based business. You should note that the estimator is designed to only provide you with an estimate of your annual tax savings. Actual results will vary and depend on the ability of the individual taxpayer to keep, record and document all deductions in accordance with IRS rules and regulations. For more information contact us at:
Accounting and Business Consulting, LLC 3303 West Saginaw, Suite D-1, Lansing, MI 48917 Phone: (517) 321-8600 Fax: (517) 321-0410E-mail: Slashyourtax@aol.com
Print this form below and fill it out to estimate your savings.
WORKSHOP TAX-SAVINGS ESTIMATOR PROFILE
1. Estimate the average amount of money you spend on each of
your children per month. This amount should include spending
money, sport and team fees, camps, eating out including school
lunches, trips to the mall, etc. In other words, all expenses that
are above the amount you pay for normal support such as housing
and meals at home. Record your average amount here: $_________.
Multiply this number by 12 and enter here and below in Question2. $_________.
2. How many children do you have between the ages of 6 and 18?
Enter the number of children here:_________. Multiply the number
of children by the total from question 1 above: $_________ and enter to the right. $_______________
3. Do you and your spouse have cell phone, pagers and PDS’s?
If so, enter your total monthly average expense here: $________.
Multiply this number by 12 and enter to the right. $_______________
4. Do you have a computer that has monthly internet and service
fees? If so, enter your total monthly expense here: $________.
Multiply this number by 12 and enter to the right. $_______________
5. Do you purchase newspapers, magazines, books and on-line
media? If so, enter your total monthly expense here: $________.
Multiply this number by 12 and enter to the right. $_______________
6. Do you like to entertain friends and family members in your home?
Please estimate the cost of one evening of entertaining friends
and family members in your home. $_________. Estimate the
number of times you entertain during the course of the year and
enter that number here _________. Multiply your average cost by
the number of times you entertain during the year and enter
this amount to the right: $_______________
7. Do you like to go out to the movies, sporting events, hunting,
fishing, or other similar activities? What is the average amount
you spend on a day or evening for this activity? Enter the amount
here. $_________. How many day or evening outings do you
participate in, on average, per month? Enter the number here _______.
Multiply this number by 12 _________ and multiply this number by
your average cost per event. Enter this amount to the right: $_______________
8. How many miles do you think you drive per year on average?
Enter your estimated mileage per year here _________.
Multiply this number by 65% (.65)_________. This number
represents the number of miles the average person can
convert from non-deductible personal miles to tax deductible
business miles. Multiply this number by 48.5 cents and enter to the right: $_______________
9. How many miles do you think your spouse drives per year
on average? Enter your spouse’s estimated mileage per year
here _________. Multiply this number by 65% (.65)_________.
This number represents the number of miles the average person
can convert from non-deductible personal miles to tax deductible
business miles. Multiply this number by 48.5 cents and enter to the right: $_______________
10. Do you pay for all or part of your current health insurance
costs? If yes, enter your annual cost of health insurance
here $_________. Do you pay any out-of-pocket health care
expenses for your family, such as co-payments, deductibles, or
drug costs not covered by insurance? Enter this number
here $_________. Does your family have any dental expenses,
including braces not covered by insurance? Enter this number
here $_________. Do you have any vision expenses associated with
eye care, such as contacts, glasses, etc.? Enter this number
here $_________ Add up all of your out-of-pocket medical costs
and enter it to the right: $_______________
11. Do you own a boat, camper, motor home or other recreational
vehicles? Estimate your annual operating expenses, including
park or parking fees, annual maintenance costs, fuel costs, etc.
Enter your annual estimated expenses to the right: $_______________
12. Do you purchase season tickets to sporting events, Broadway
plays, or other events? If yes, then enter the amount to the right: $_______________
13. Do you purchase gifts or other items for your spouse
during the year that exceed $500? If yes, please enter $500 to the right: $_______________
14. Add up all the numbers in the far right-hand columns and
enter the total to the right: $_______________
The number you have just entered is the estimated amount of new tax deductions
you can expect annually by operating a home-based business. Now calculate the
average amount of actual tax savings you could expect these deductio ns to generate
on your actual tax return. Multiply the total in No. 14 by 30% (.30) and enter this
amount to the right. This number represents your estimated annual tax savings: $_______________
