Up date to my May 28th, 2014 post about Kraft Barbecue Sauce

If you read my May 28 post about Kraft's new item Pit master's Choice Barbecue Sauce you will see what Kraft was doing. It was a big test! This year Kraft has introduced a fill line of flavors in this size with the new formulation that does not use corn syrup. I guess the test must have worked!

I find it very interesting Wal Mart was the test store for this idea. I found out last week that Wal Mart asked a major tea company to make a product for them that no other retailer had. This year that company is presenting this item to all retailers.

I am wondering if the high cost of getting new items in grocery stores and the high failure rate has caused less and less innovative new products being developed and introduced?

If you have anything to add on this topic please make your comments at the bottom. I would love to hear your stories.

Tax benefits of a home based business

Home based business tax benefits

First let me say I am not a tax expert. I can tell you what my personal tax experience has been and how things have worked over the years for me with regards to taxes. I would suggest you get professional help (CPA) for your taxes if you are going to have business related expenses.

If you have a business that is profitable or unprofitable there is legal tax benefits associated with that business. This is true even if the business is part time and operates from your home or apartment. If you have a regular job you can save taxes by operating a part time business because of these deductions. If the part time business has a loss, that loss lowers your taxable income form your regular job (saves you taxes). Your business does not have to be incorporated for this to happen. In today’s world if you can lower your tax bill you have made money! It is really nice when you have a professional prepare your taxes using your home based business expenses and you get a nice refund check. It’s like getting a raise from your regular job!

How does all this work. Very simple, first get involved with a good home based business. Click here for my suggestion. Pay for everything with a check so you know exactly where your money is going. If you use a credit card  keep all the statements so you can pick out the business related expenses at the end of the year. 

When you start making money from the home based business you may have to pay quarterly estimated taxes (why you need a CPA) to avoid penalties.  You will get a 1099 from the company paying you so all income will have to be reported on your personal 1040 form. That is why keeping up with the expenses each month is so important.

Almost every new business is unprofitable the fist few years. This is when these losses will be taken away from your regular job income. Your goal with the home based business is to “grow” the business to the point that you no longer need your regular job. One of my life’s biggest mistakes was working for a company I did not own.  

The list below is some examples of expenses you can use in your home based business.

-         Internet costs
- Education (seminars, ebooks, reports, other info products)
- Advertising (Adwords and any other advertising costs)
- Hosting
- Domain Registration
- Professional services (software development, graphics, coding etc.)
- Child care (daycare)
- Healthcare costs
- Computer and accessories
- Charitable contributions
- Home office furniture
- Office supplies
- Postage
- Car/Truck Mileage for travel related to the business
- Business use of home
- Utilities
- Cell Phone and service
- Financial services (tax preparation etc.)
- Business meals/drinks
- Legal fees including LLC/Inc. formation
- Renter/Homeowner Insurance
- Real Estate/Personal Property tax

There maybe more depending on your business. Remember you need to keep good records and get the help of a CPA.
Go here to learn about the home based business I like. E-mail me here if you have any questions.

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