I applaud the step that you have made toward achieving financial independence and freedom.

Now, you may have heard many say that there’s no better way to lower your tax liability than a home based business.  This is true up to a point.  Instead, I would say that “There’s no better tax break than a money losing business”.  However, not to sound like Debbie Downer, I will not dwell on that aspect because no one goes into business to lose money.  Instead, we will focus on the tax opportunities that you have as a business owner to keep your total tax outlook under control. 

Let’s get started. 

The most important things if not the most important thing in business is recordkeeping.  If you keep good records, excellent! You’re way ahead of the curve.  However, if you don’t, don’t despair.  You will need to start unless you want to experience an IRS “pimp slap” when you asked to provide proof of your expenses and all you can come up with is a sheet of paper that looks as though you made it up yesterday.   Your records should reflect who, what, why, where, and in some instances, how.  Let me demonstrate each of these as it reflects on your business venture. 

You have taken the plunge into your network marketing company’s corporate event and being “impassioned and excited”, you register for the event and go out of town to the conference.  Of course, you incur the cost of registration, the expense to travel, the hotel accommodations, meals, and related business incidentals (for example, you forgot your sales materials so you had to make an unexpected purchase on the premises). 

The who: In this case, you.  Who can also extend to any business related lunches that you have in which the individuals that you dine with to discuss business or pursue business. 

The what: An industry conference, related solely to your business; thus distinguishing it from a pleasure trip.  This is not to say that there can be zero pleasure in the trip but the main motivation of the trip must be business related.  As a matter of fact, a conference agenda can go far in establishing a business related purpose. 

Why: Why attend the conference?  You attend to establish contacts and expand your business to the next level.  It’s as simple as that.  If you had skipped the conference, then these invaluable business contacts would not have been established had you decided not to attend. 

Where: Where is the event?  Example: In Dallas Texas at the Radisson Hotel on January 8, 2012.  Make sure to keep copies of your tickets and registration to establish the location. 

How: In this case, how did you arrive at the event?  By plane, bus, or automobile?  As previously stated, keep a record of all your expenses.