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Use Your Tax Return to Purchase a Home Business

Millions of people will receive their tax returns soon. If they haven't already received them, they are thinking about how they will spend the money once they do. Some people dream of a new plasma TV. Others might dream of taking a great vacation. You have two choices; you can turn your tax return into an asset or a liability.

As stated in Robert Kiyosaki's book Rich Dad Poor Dad, "If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities." His definition of an asset is something that puts money in your pocket. A liability, according to Kiyosaki, is something that takes money out of you pocket.

Here are two scenarios. One person turns his into an asset and another spends his tax return:

Larry receives a $1000 tax return. Larry likes to vacation so he uses $500 of his return to purchases his own travel business through API Travel Group. During the year, he receives commission on travel booked through his site, learns valuable information about the travel industry and enjoys discounts on his trips. Meanwhile, he receives tax benefits from having a home based business. Larry's return the following year is $4000 and he has earned additional income during the year from his travel commission. In this scenario, Larry is turning his tax return into an asset.

Barry receives a $1000 tax return. He also likes to travel so he uses $500 to go on a vacation and $500 on a new TV. When Barry receives his tax return the following year, his income and his deductions haven't really changed. Therefore, Barry receives another check for $1000. Barry's vacation and his plasma TV have not earned any additional income. He has turned his tax return into a liability.

With your tax return on its way, now is the time to decide if you want to create an asset or a liability. Do you want to start a home business or buy a television? I hope you choose to invest in a business so that you to can have an asset.

By Amanda Ipock

Amanda Palmer Ipock is a sales and marketing consultant and owner of API Travel Group. Go to http://www.apitravelbiz.com to get more info.

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