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Leveraging Credit & Small Business...
Old 09-11-2004, 01:25 PM   #1
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Leveraging Credit & Small Business...

I plan to research this....I don't use my credit cards...but I'm wondering if there is an advantage to timing when I'd apply for the 0% credit cards (don't want too many inquiries) and funding investments?

I have $15 K credit capacity...if I got 4% return on that...$600 dollars a this a legit strategy...

Also, if I were to start a legitimate business @ home, are the tax benefits worth it?

I've been reading books on taxes--it's absolutely funny how there is a fundamental conflict in our entire system...everything is set-up so you work until you are immobile...and oh...if you leave the job market too soon and do well, you're "penalized"---i.e. thanks for funding the program, but YOU LEFT TOO SOON......the money set aside for SS is "passively invested" expectancy is up....the rate of outsourcing jobs is up and seemingly just as important nowadays as SELLING stuff *a fact that inflation and consumer debt is waaaaaay out of control*

I can't believe it's been 3 years since the WTC event...*RIP*

I can't wait to be done in 10 years.....

TD <--- Moody....


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Re: Leveraging Credit & Small Business...
Old 09-11-2004, 03:38 PM   #2
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Re: Leveraging Credit & Small Business...

I have made THOUSANDS by taking advantage of
low/no interest CC offers. Not only that, but it's tax free
as my income is so low now. Closest thing to free money I
ever found.

John Galt
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Re: Leveraging Credit & Small Business...
Old 09-19-2004, 07:47 PM   #3
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Re: Leveraging Credit & Small Business...

Starting a small business has incredible tax advantages. We started a few months ago with a sideline business. The IRS had become our #1 expense category and we were just too disgusted with it. We are both engineers, no kids, house almost paid off and have a decent paycheck. The result was an incredible tax bill with our itemized deductions being the same as the standard deduction. What we paid the IRS is more than what we spent on living expenses for the year! The last thing we wanted to do is to refinance the house just to create more deductions.

I would advise you to read up on books for all the details on business and taxes. A huge advantage of a small business is that expenses are deductible above the line. You don't have to fill up a 9K or so standard deduction limit before you can deduct the expenses - every business penny is deductible. However, having a sideline business means a lot of hard work.

Some of the great tax advantages for us have been: 35% deduction of all expenses related to the house (yes, now the garbage pick up and utility bill suddenly become tax deductible). Almost all mileage on my car (usually ~50 miles or $20 daily), cell phones, internet etc.. I think at the end of the year we end up having no real big profit because of all these expenses. Key for the sideline business for us is to convert personal expenses into business expenses.

Just read up on some of the tax books and see what type of business may match your personal interests. Don't go overboard with things: your entertainment expenses and dinners are usually a red flag for the IRS.
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Re: Leveraging Credit & Small Business...
Old 09-20-2004, 04:27 AM   #4
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Re: Leveraging Credit & Small Business...

Hi Vicky! Good post!

The downside to your story is (as you said)
"It's a lot of hard work." That's the killer part for most ER types.

John Galt
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Re: Leveraging Credit & Small Business...
Old 09-20-2004, 06:04 AM   #5
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Re: Leveraging Credit & Small Business...

In Canada you can only deduct expenses from money earned in the business and as John said that means you would actually have to work. I may do it anyway.

I wish I was half as good as my dog thinks I am!
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