smith@umn-cs.UUCP (Richard Smith) (11/14/83)
#R:ihuxn:-40800:umn-cs:10500014:000:1138
umn-cs!smith Nov 13 10:31:00 1983
The tax 'benefit' of running your own business is that Uncle Sam doesn't
force you to pay taxes on the money you SPEND on your business. Thus, you
don't have to pay taxes on every penny that comes in, just the pennies left
after you've deducted the money you spent to bring money in. This doesn't
necessarily save you anything unless you're already happy doing whatever it
is that will bring in the money.
If you have your own business, the trick is to turn everything you can
into a business expense. There are books and books on this. The best overall
tax reference is Lasser's and is availible in most book stores around the
end of the year. It is authoratative and cautious. For a more free swinging
style, look for one of the series "Tax Guide For {x}" where {x} represents
some profession. I know that {Engineers, Teachers, Physicians} are valid
values for {x}.
If your lifestyle makes it really easy to run a home business, then it's
worth it. Don't do it *just* for tax advantages, though -- it's probably
not worth the effort unless you're really rich.
Rick.
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