Today, I started working on something that gives me a headache every time I think about having to do it. It’s tedious, time consuming, boring, requires accuracy, and if I don’t do it, well then… I hate to think of the consequences!
Every year it’s the same old story, and every year I tell myself I will try to keep after it, so it is not such a pain in the @%#!
But you know, I wouldn’t have it any other way! What I’m talking about is the ability to have as much freedom and control over my life as possible, in a highly regulated country, and getting more so everyday, with rules and laws that we law abiding citizens must obey.
What I am talking about is compiling, and preparing the annual Tax filing information to give to my accountant who puts it in the right place and hits “submit.”
She’s got the easy part… my part is mind-boggling.
What does freedom mean to you and me?
According to Merriam Webster, FREEDOM means:
- The power or right to act, speak, or think as one wants without hindrance or restraint.
- Absence of subjection to foreign domination or despotic government.
What does freedom mean to you when it comes to earning a living?
Well for me, here’s the beauty of it…
I work for myself. I have two businesses, and I sold a piece of property this year. The amount of paperwork is a bit over the top, and hopefully, 2012 taxes will be much easier after selling one of the businesses.
Which business will I keep? The network marketing and internet marketing business of course.
So what’s all this about the freedom, when I am telling you how much work is involved in managing everything?
The freedom is twofold.
First, I do not have to answer to anyone but myself. I don’t punch a clock, I set my own hours (even though I am usually working from 7 AM to midnight), I take vacations when I want to. I get all holidays off, I can raise my prices in one of my businesses that trades hours for money, and in the other business, I can leverage my time and money to earn as much money as I like. I have the freedom to do what I want, when I want and with whom I want. Life is good!
The other part of freedom that I enjoy is that I get to keep more of the money I earn. If I worked as an employee, my tax rate would be 10%, 15%, 25%, 28%, or the 35% tax bracket – period. It’s determined by my salary or hourly wage for the year.
As a business owner, especially a home based business owner, I can enjoy all the tax advantages that are legally allowed. I can deduct my business expenses to offset my income so I pay less taxes.
For example, suppose I make $100,000 in my home business, and I have $50,000 worth of expenses that are tax write offs. They may be office-in-the-home expenses, car expenses, travel to events, hotels, cellphone, internet connection, my computer and much more. Some of these deductions are typical expenses that the average person normally pays for personal use.
If I didn’t have the deductions, my tax rate on $100,000 would be 25%, but by reducing my income by the amount of money I paid for my business expenses, $50,000, I am now in the 15% tax bracket. I not only got many of my needs tax free, but the ones that were not business related were only taxed at 15%. So, making $100,000, reduced by $50,000 in expenses, and then taxed at 15%, means I pay $7500 in taxes.
Now if I were an employee with a very good job that paid me $100,000, I would have to pay 25% or $25,000 in taxes – whew! That’s a lot of money my friend!
What would you rather be paying… $25,000 or $7500 for making the same amount of money, and where one restricts your time freedom, and the other gives you all the time freedom you desire.
I know which one I prefer, so I’ll put up with the headache inducing, tedious, mind boggling minutia, and keep my $17,500.
What does freedom mean to you – more money in your pocket, and more time to enjoy it!
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