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joyfulguy

Every able-bodied (able-minded?) senior should have ...

joyfulguy
19 years ago

... a (probably home-based) business. Business owners can claim a lot of deductions as business expenses.

Sorry, I don't know the rules for U.S. situation, but think that many of them apply - check with people whom you know that can provide knowledgeable information.

Remember my Christmas gift (on "Household Finances", this year - "Savings" last year)? Look up owners of their own business among people that you know.

In Canada, if you can legitimately claim that you need to use your car in your business, you can deduct not only part of the operating cost, but part of the original cost, as well. Same for phone, computer, internet connection, websirte cost. Also a variety of the business-related aspects of your usual expenses.

Even part of cost when entertaining business-related people - (but don't try relatives often). Golf-club fees? Careful - they're getting stickier about such things.

Keep a log of the reasons that you did so-and-so, especially entertaining. Be sure that you can justify all of those expenses.

Part of the cost of heating, power, insurance etc. if you can show that you actually used part of your home to operate the business - that spare room that you use for occasional visits from family/friends?

Probably not wise for Canadian homeowners to claim part of mortgage interest, though, or you may jeopardize your claim for part of the tax-free capital gain when you sell your owner-occupied home (for a lot more than it cost you, years ago).

The income tax people have booklets that outline what you can claim and what you can't.

An asdvisory/consultancy business is good, I think - you don't have to oder, pay for, store, ship product.

And if you run into a dead-beat who doesn't pay you for product, you're out of the cost of purchase, shipping, storage, etc. of the stuff - but information was developed over the years incurs nil current cost, is stored in your head and often can be shipped free over the internet - so the deadbeat costs you nil out-of-pocket dollars.

Some thoughts that you may find interesting.

Tax evasion is criminal and can result in quite a lot of trouble - but tax avoidance should be practised by every taxpayer ... espeicially seniors who often operate on reduced income.

joyful guy

P.S. Sorry about the repititions - seems to be a problem in the library computer, and I can't seem to do anything about it.

jg

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