http://gotnodough.com/2007/10/29/when-being-frugal-becomes-illegal/ Fri, 10 Oct 2008 22:14:00 +0000 http://wordpress.org/?v=2.6.2 http://gotnodough.com/2007/10/29/when-being-frugal-becomes-illegal/#comment-13 Jennifer Thu, 01 Nov 2007 15:35:53 +0000 http://gotnodough.com/2007/10/29/when-being-frugal-becomes-illegal/#comment-13 This is a great list! I have had several people tell me that having a home business on the side is very profitable, because you can "claim all your household expenses on your taxes." Later when I actually owned my own business, I found this to be completely false & illegal. You can only legally claim your legitimate expenses, that you wouldn't be paying for if you weren't working for yourself. The tax exemptions help, but if you are profiting from tax exemptions (Ie, your business isn't making any money, but you are saving so much in taxes that you are making money-which is what a lot of people do!) you are breaking the law at the expense of people who do pay their taxes. For example, a friend who owned a dance studio would write off *all* her kids school clothes, as "costumes" and she could deduct it all from her taxes. I know others who put an advertisement on the windows of their cars, and then all their personal car travel costs they believe they can write off because its a work expense (advertising.) Very shady. This is a great list! I have had several people tell me that having a home business on the side is very profitable, because you can “claim all your household expenses on your taxes.” Later when I actually owned my own business, I found this to be completely false & illegal. You can only legally claim your legitimate expenses, that you wouldn’t be paying for if you weren’t working for yourself. The tax exemptions help, but if you are profiting from tax exemptions (Ie, your business isn’t making any money, but you are saving so much in taxes that you are making money-which is what a lot of people do!) you are breaking the law at the expense of people who do pay their taxes. For example, a friend who owned a dance studio would write off *all* her kids school clothes, as “costumes” and she could deduct it all from her taxes. I know others who put an advertisement on the windows of their cars, and then all their personal car travel costs they believe they can write off because its a work expense (advertising.) Very shady.

]]> http://gotnodough.com/2007/10/29/when-being-frugal-becomes-illegal/#comment-10 Kyle @ Rather-Be-Shopping Wed, 31 Oct 2007 17:18:04 +0000 http://gotnodough.com/2007/10/29/when-being-frugal-becomes-illegal/#comment-10 Great list, and a nice twist on the frugal vs. cheap debate. I am a big believer in being frugal with a strong bend towards having good Carma. Great list, and a nice twist on the frugal vs. cheap debate. I am a big believer in being frugal with a strong bend towards having good Carma.

]]> http://gotnodough.com/2007/10/29/when-being-frugal-becomes-illegal/#comment-4 Lynnae @ Being Frugal Tue, 30 Oct 2007 00:20:15 +0000 http://gotnodough.com/2007/10/29/when-being-frugal-becomes-illegal/#comment-4 Thanks for the link! And I totally agree with you. In your attempts to be frugal, you should never cross the line into illegal. Thanks for the link! And I totally agree with you. In your attempts to be frugal, you should never cross the line into illegal.

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