Insurance World

Time is increasingly becoming vastly more important to us than the money we earn. Think of all the things we have to accomplish every day, and weigh them against all the things we want to do, and how in order to do it all we have to get pretty creative. Top that off with the feeling that every day seems to be shortening each year, and it is a wonder we get through it all. Then along comes technology to rescue us from at least one dreaded task that we cannot escape, once a year. But by allowing e-filing income tax, it becomes one less task staring at us from that long to do list.

The benefits of income tax e-filing are twofold -- you are done filing your taxes rather quickly, for one thing, and at the same time you are doing your part to spare the environment a loss of more trees. The Internal Revenue Service forms are readily available online, and the steps to filling them out are simple enough to complete on your own, anytime and anywhere, as long as you are near a computer with access to the web. The more popular it becomes, the more simple the IRS will make it, until it becomes THE filing avenue of choice for most taxpayers. The best advice, therefore, is getting to know how to file electronically, because the day may be just around the corner where you will need to know the how to of e-filing of income tax.

Why go through all the trouble of learning how to e-file? Is it the fact that you will save time? Is it the assistance the tax forms provide in the way of prompts? There is the research needed to figure things out, then there is remembering which paperwork is needed, and where to send it, and when. Along came the software designed to eliminate all these difficulties and confusion. FreeFile, for instance, is supported by the IRS, and can do as the name suggests: help you file for free and take the time consumption out of it. Gone are the days of endless hours and mountains of paperwork to sift through, organize and process.

Software takes the guesswork out of all those calculations that used to produce headaches before there was e-filing, back when you needed to bring in the troops to figure them all out. An added bonus is that software will be easily updated year after year, to keep up with all the changes to the tax laws. There will be no miscalculations or missed exemptions, and there will be no bill from a tax preparer.

There are many online resources for self-preparing your taxes online, or using software that will guide you through. So, individually, there is no longer any excuse for setting aside the tax preparation companies and rounding up the courage to get it done on your own. Once you are there, head over to the IRS site and learn how easy e-filing income tax really is.

Visit Art Lynch's blog at http://www.incometaxesonline.org/ for timely information about tips for income tax e-filing. There's also good information about free tax filing.

View the original article here

Question:

I was working in Russia until June 2010 after which I came and started full-time employment in Cyprus. I have paid 13% Russian income tax on my remuneration in Russia.

Will I have to declare and pay any income tax in Cyprus on my Russian income and on what basis my Cyprus remuneration will be taxed?

Answer:

Thank you for your question.

Since you have accumulated over 183 days in Cyprus during 2010, you are de facto Cyprus tax resident and will be taxed on your worldwide income according to Cyprus Income Tax Law. Furthermore, you will have to file your Income Tax Return with the Cyprus Inland Revenue Department (IRD) by 30th April 2011. Applicable to your case are the Cyprus Income Tax Law 118(I)/2002 and the 1998 Treaty between Cyprus and Russia.

Now, let's move to the practical side of your situation by going through what you have to declare and what will be taxed.

Firstly, when filling in your Income Tax Return form IR.1, Part 4(A1) you will have to declare the name of your Russian employer, state that the income you received was from sources outside Cyprus (while working for a non-resident employer), the number of months in Russia, the gross income received and the tax withheld. Likewise, you will have to complete the same type of information for your Cyprus employment, this time indicating that income was derived from source in Cyprus and that you were non-Cyprus-tax-resident before. Finally, in completing Part 4(A2) you will have to indicate the date when you came in Cyprus, the date when you started your employment and the aggregate number of days you resided outside Cyprus before starting employment.

Secondly, there are two income elements in your case: income from employment in Russia, which was already taxed at 13% and income from employment in Cyprus. The first element of your income, the employment income in Russia, will be tax exempt as per Art.36(5) of the Cyprus Income Tax Law (i.e. the "90-days rule"). That is to say, it will not be taken into consideration when computing your tax liability and you will not pay Cyprus tax on the Russian employment income element. As regards the Cyprus employment income, it will be taxed at the progressive tax rates as per Art.25, Schedule 2 of the Income Tax Law.

We need to make a side note here, and say that if the income you received from Russia was not from employment but from other non-employment services, then you will be allowed to claim tax credit in Cyprus for the amount of tax paid in Russia, according to the 1998 Tax Treaty between Cyprus and Russia (Art.23(2)) and subject to the provisions of the Cyprus Income Tax Law.

Finally, those taking employment or office in Cyprus for a first time should remember that the Income Tax Law provides 20% exemption (with a maximum of ?8,550) on the remuneration received in Cyprus for a period of three years starting 1st January following the year when employment commenced.

Veronica Goncharenko
Quantia Advisors Ltd.
Chartered Certified Accountants
http://www.qnta.biz/

View the original article here

Why would anybody want residual income?

Who in their right mind wants to receive money month after month after month for work they did once?

Who do they think they are? Authors? Rock stars? Inventors?

What is residual income? Well I gave you the answer already.

Residual income, which can sometimes be known as royalty payment, is an ongoing payment that a person receives for work or effort that was done once. The most common concept of residual income is the royalty payment an author receives every time a person buys a book the author wrote, or a song writer for a song composed, or a singer for a song sung.

Did you know that Elvis Presley is the highest royalty earning singer today and he has been dead for over 30 years?

So, if you could earn a residual income from your employer for the work you did for him/her/them today would that make you more productive? The answer is probably yes. The only problem there is that you would be making the employer richer while you received a small remuneration for your efforts.

WHAT IF:

You could have all the time you wanted to do whatever you wanted?

You could have all the money you needed to do whatever you wanted?

You could show people how to save money on their essential services bills?

You were paid a small percentage of their bill each time they paid their bill?

You could show someone else how to show people how to save money on their essential services bills?

You could show that person how to make some money helping people save money?

The person you showed how to help people save on essential bills received a small percentage of their customer's bills each and every month?

You received a smaller percentage of that person's customers' bills each and every month?

You were allowed to have more than one customer?

You were allowed to help more than one person?

You could develop your business around the world - from your own home?

There really was this fairytale opportunity out there?

WOULD YOU:

Ask how you could find out more about this opportunity?

Give up an hour or two of television a few nights a week?

Be prepared to listen and learn, i.e. be coachable?

Think of others before yourself?

Help others make more money from their efforts than you

Talk to everyone you know to help them become financially and time free?

FAQ's

How could this be possible?

How much time do I need?

What is it going to cost?

Can I do it?

Is it legal?

Is this a reputable company?

Would my mother be proud of me for doing this?

What do I need to do to get started?

These are some of the questions that get asked with any new venture, be it business, social or a relationship. Take the time to address each of these before you consider any venture.

About the Author
David Morris is an accredited workplace trainer who is now using that experience to guide others to independent business ownership. He is associated with the world's leading direct marketer of telecommunications and essential home services. If you would like answers to your questions contact me by clicking on our website http://www.soaring2thetop.com/

View the original article here

Question:
I am Russian citizen, working on a project for an oil and gas consortium which has companies in Cyprus, Russia and Canada. Although my engagement is signed with the Cyprus holding company, I do not permanently live or work from Cyprus. In fact, I have to travel and spend time in each country for the purpose of the project implementation and supervision. As such, I do not accumulate 183 days in either country.

What is my tax residence and should I pay any income tax and where?

Answer:
Thank you for that really interesting question.

For natural persons, tax liability is based either on residence (worldwide income for residents) or on local source income only (for non-residents). What determines tax residency depends on the tax legislation of the country in question. In your case, since you do not mention from where payments for your service are made (income source), we have to look at three different tax law perspectives: Cyprus, Russia, and Canada.

Firstly, in accordance to the Cyprus Income tax law 118(I)/2002, you are not a tax resident of Cyprus because your period of stay in Cyprus does not exceed 183 days in aggregate. Since you are non-resident, all your Cyprus source income will be taxed at source 10%, according to the Income tax law.

Secondly, the Tax Code of the Russian Federation, similar to that of Cyprus, determines tax residency based on physical presence (the 183 days criteria). As non-resident of Russia, there will be 30% tax on your income from sources within Russia.

Thirdly, the Canadian Income Tax Act, does not provide definition for the term resident; however, courts in Canada have held "residence" to be determined by number of criteria. Nevertheless, if your link with Canada is only the project implementation or supervision, than you are non-resident. The withholding tax in Canada for similar fees made to non-resident individuals is 25%.

Technically speaking, you do not have tax residency and even the existing tax treaties between: Cyprus and Russia (treaty of 1998), Cyprus and Canada (treaty of 1984), and Russia and Canada (treaty of 1997), do not apply to you. Your income is taxed only once as guest income (withholding) and you do not need to fill tax returns anywhere. The obligation to deduct and remit tax from your income is with the companies making the payments and not yours. In addition, the complexity of the situation due to the number of jurisdictions and the awkwardness of not having tax residence requires that you make your tax plan in conjunction with the company that has engaged you for this project.

Finally, being in your situation, where you do not have tax residence, is equivalent to being a permanent tourist or a world citizen. For some, this is mode of life, for others philosophy or even a dream and for you perhaps a tax optimization opportunity. When Socrates said, "I am not an Athenian, or a Greek, but a citizen of the world" he probably did not expect that in the future, most countries will treat tourists far better than their own captive residents or citizens.

Veronica Goncharenko
Quantia Advisors Ltd.
Chartered Certified Accountants
http://www.qnta.biz/

View the original article here

A divorce is going to change the way you've always done your federal and state income taxes, especially for the year immediately before your divorce is finalized. As long as you're still married on the last day of the year, you can choose the way you want to file your taxes. Applying the various tax laws that are in effect within your state, you'll have some decisions to make about filing jointly for one last time or by going the single route. Obviously, no matter how much animosity there is between you and your ex-spouse, you don't want to end up paying more in taxes just to spite your ex. You need to work out something equitable.

Generally, it will be to your advantage to file jointly if you can. This usually results in saving the most money. Of course, nothing is ever absolute, and you may need to do some figuring to find out which way would be the most beneficial. If you file separately, you have to be cautious about the way you decide who reports both income and withholding that was taken. If you don't have a prenuptial agreement saying otherwise, the income you earn prior to your separation is considered community income and must be reported equally by both spouses. Income earned after your separation belongs to the party that earned it.

You'll have to take into account the various properties that each of you received in your divorce settlement. For example, you don't want to claim only 50% of the income from a rental property if you, in fact, separately own the title to the entire property. Try and agree on items like separation date, the character of various incomes, and the allocation of tax payments when it comes time to have your tax documents prepared. If you can't agree, your attorneys will have to be brought into the mix to help work them out for you.

Keep in mind that any agreement made between you and your spouse can't be in violation of your federal and state laws regarding tax issues. Some of the areas where you need to pay close attention are the laws that pertain to incomes such as child support and alimony. Tax settlements don't have to be taxing if you follow the rules and agree to agree with your soon-to-be-ex. Your attorney or tax-preparer will be able to walk you through the steps so that you'll be able to submit perfect returns, even if you've never done them in the past.

Get 8 hours of live marriage coaching and proven marriage advice that really works at: Stop divorce or here: Save My Marriage.

View the original article here

Many American expat tax returns should include each of two benefits that may reduce the expat's tax to zero: the foreign earned income exclusion and the foreign tax credit. This article tells you the basics of the exclusion on Form 2555, and how to get this benefit. A future article will discuss FTC.

Basics of exclusion: The foreign earned income exclusion is the amount of income (salary, bonus, stock options, etc.) earned for services outside the U.S. The exclusion for 2010 is limited to $250.68 per day ($91,500 for the whole year), plus housing expenses in excess of $40.11 per day. The American expat may claim the exclusion on Form 2555. The form must be filed with a timely original or amended return, a return that is no more than a year late, or a return on which no balance is due to the IRS.

Basic requirements: To qualify for the foreign earned income exclusion for a particular day, the American expat must have a tax home in one or more foreign countries for the day. The expat must also meet one of two tests. He or she must either be a bona fide resident of a foreign country for a period that includes the particular day and a full tax year, or must be outside the U.S. for any 330 of any consecutive 365 days that include the particular day. This test must be met for each day for which the $250.68 per day is claimed. Failing to meet one test or the other for the day means that day's $250.68 does not count.

Bona fide resident: An American expat is a bona fide resident of a foreign country if he/she is legally entitled (under that country's law) to live there, and actually does live there. If he/she has a visa that prohibits residency, he/she is not a bona fide resident. If he/she files a nonresident tax return in that country for a year, he/she is not a bona fide resident of that country for that year. Example: Mary lived and worked in Hong Kong from 2008 to May 1, 2010. She took three months of extended R&R traveling in the U.S., and returned to Hong Kong August 1, 2010, for a new job. Mary made $95,000 in 2010. If Mary had a resident visa for Hong Kong, she could get the full $91,500 exclusion. If she did not, she could only qualify for a partial exclusion under the 330 day test.

330 of 365 Days: The physical presence test is easy to say but can be hard to count. No particular visa is required. The American expat need not live in any particular country, but must live somewhere outside the U.S. to meet the 330 day physical presence test. The American expat merely counts the days out. A day qualifies if the day is in any 365 day period during which he/she is outside the U.S. for 330 full days or more. Partial days in the U.S. are considered U.S. days. 365 day periods may overlap, and every day is in 365 such periods (not all of which need qualify).

The mechanism for counting days can be confusing. I find it easiest to draw a time line and add up the days in and out. The results are often better than expected.

Here are two examples: Fred and Julie each lived outside the U.S. and filed nonresident tax returns in the relevant countries.

Fred was in Africa on multiple assignments during all of 2009. His tax home was in Zaire from 2008 through 2011. He returned to the U.S., arriving on March 1, 2010, for extended R&R, and left May 6 to return to Zaire. He was out of the U.S. only 288 days in 2010. He did not return to the U.S. through May, 2011, when he filed his American expat tax return. He earned no U.S. income. His 2010 salary was $91,000. Two of his qualifying periods are April 4, 2009, through April 3, 2010 (35 days in the U.S.) and April 3, 2010 through April 2, 2011 (34 days in the U.S.). These two periods together include all of the days in 2010. Fred can exclude the whole $91,000, because he met a 330 day test for each day during the year.

Julie lived in a rented apartment in Madrid but had a visa that did not permit her to be resident. She paid $1500 per month in rent. She had to leave every 90 days and renew the visa, and did weekend trips in Europe. She was out of the U.S. all of 2009 and 2011. In 2010, she returned to the U.S. to take a course during all of July, and visited friends for three weeks in March and three weeks in October, for a total of 73 days. She earned $100,000 for her work in Spain. Julie qualifies for the foreign earned income exclusion, but not all of her 2010 days qualify. Her two best qualifying periods are July 15, 2009 to July 14, 2010, and July 18, 2010, to July 17, 2011. If she extends her tax return filing deadline and files after July 17, she will have 362 qualifying days, for an exclusion limit of $90,747.

Housing Exclusion: Julie is in luck, though. She can also claim part of the housing exclusion as part of the foreign earned income exclusion. This exclusion is for housing in excess of $40.11 per day. She paid $18,000 in rent, or $49.32 per day. She can exclude the difference times 362 qualifying days, or $3,332.

Julie's total exclusion is $94,079. On her American expat tax return she also gets to claim a personal exemption ($3,650) and standard deduction ($5,700). Thus, her taxable income is negative. She owes no U.S. tax.

Count days before travel. Julie should carefully plan 2011 travel. If she had returned to the U.S. for three weeks in before July 2011, her days after July 14, 2010, would not qualify. Such a trip would have resulted in over $10,000 additional tax. Counting the days can save you a lot of money.

Conclusion: Claim the foreign earned income exclusion using Form 2555 on your American expat tax return to reduce your U.S. tax. You can qualify for the exclusion if you meet either the bona fide resident test or the 330 day test. If you still have taxable income after the exclusion, also claim the foreign tax credit for any foreign income taxes paid. The rules can be complex. Call or e-mail Steve Fox, CPA for the professional help you need to qualify for the exclusion.

Stephen C. Fox, CPA, has been helping expats reduce their international tax bills for over 30 years. He is a frequent speaker at international tax conferences, with articles published in major tax journals. Steve helps clients with tax return preparation, pre move tax and personal planning, and live personal service. Learn more about how to manage your taxes by clicking http://www.sfoxcpa.com/Expatriate-Tax.php or call Steve Fox today at 1(973) 610-5669.

View the original article here

For every individual who pays his tax and business that reports its profits exactly, there must be somebody who under-declares their income or business that hides its success from the tax man. Tax evasion is massive and its extent can never be fully known.

Tax fraud is a big problem for because it is easy to commit. Anybody can withhold information from the Revenue and stand a fairly good chance of going undetected. To keep all of their self employed pay many people will take the risk and try to stay off the tax authority records completely.

When forensic accountants specialising in tax investigation carry out enquiries into some companies they sometimes find that the whole workforce are employed on a self employed basis. The building trade saw a lot of this when the trend was to use subcontractors remunerated in cash. Often these contractors would not declare their income to the tax man. With the authorities having addressed the problem in this area, building subcontractors are now better controlled and find it much harder to evade the tax that they rightfully owe. But away from the building trade there are still industries where it is possible to circumvent the rules and regulations and have a good chance of evading detection.

It is accepted that the way in which the current laws are enforced would have to change in order to prevent many self employed from not declaring the tax they owe. However, there is an equally large problem with people who set up the businesses that always under-declares taxes. HM Customs and Revenue is a public sector organisation under severe pressure to cut its costs of operation. The resources available to the Revenue are dwindling and it follows that fewer taxpayers are being scrutinised. All that is needed to get away with paying the full amount due is to fill out all the returns on time with information that seems reasonable.

If they do get detected the punishments are fortunately quite severe. It is possible for all the profits made by a business to be taken latterly as tax and penalties if they are not declared properly. What is more, if criminal sanctions are pursued by the authorities, they may employ the statutory assumptions introduced by the Proceeds of Crime Act 2002 and lose all their assets and a lot more!

When deciding how much tax a business should have paid, the tax authorities will employ their own assumptions. They might assume for example that all revenue is subject to tax and that no expenditure can be used to offset a liability. It is up to the tax payer to demonstrate if the case is otherwise and often this will require the services of an experienced fraud specialist forensic accountant.

Forensic accounting techniques can provide the reconstruction of records if some are missing and show independently the real position of the business. There is always the risk that the authorities, including the criminal courts, will not accept these explanations and the answer is that it is better for businesses to keep adequate records and disclose all of its profits at the appropriate time.

Mark Jenner is a Fellow of the Institute of Chartered Accountants in England and Wales, a Certified Fraud Examiner and has a Masters Degree in Fraud Management. He runs his own business as a forensic accountancy firm specialising in all forms of tax fraud including vat fraud and self employment matters.

View the original article here

Tax filing is a requirement for all American citizens who have a source of income. It can be a serious headache for those who are not knowledgeable about what is deductible and what can not be deducted on their federal income tax return. There are numerous deductible items you can take on your tax return to reduce your tax liability. These deductible items are usually filed on schedule A form 1040.

Before you file your 2011 tax return find out if you may reduce your tax liability by taking qualified Federal Income Tax Deductions. It will be a good practice if you keep good records and you understand what deductions to declare and save money during tax time.

Real estate taxes you paid during the year are deductible on your federal income tax return on schedule A form 1040 when you itemize. Also deductible are state and local income taxes, general sales taxes and other property taxes, such as automobile excise tax. You can also deduct interest you paid on your home mortgage and home equity loan or line of credit. Points you paid that are in connection with your mortgage loan are also federal tax deductions. You may quality for student loan deductions if you meet the required income limitation. Health care is also a deductible item. You may qualify to deduct your out of pocket health care expenses if they add up to 7.5 percent or more of your adjusted gross income. You may deduct expenses you made for medical and dental care for yourself and your dependents.

Also deductible are health insurance premiums, hospital expenses and co-pays. Take note that you may deduct health related expenses that are not paid by your medical insurance company. Business expenses are deductible on your federal tax return. As an employee, the money you spent on uniform, union dues, and trade magazines are deductible on schedule A form 1040. Moving expenses are deductible if you relocate to take another job in your industry. The cost of business travel, lodging and meals may be deducted within certain guidelines. Donations to charity are deductible on schedule A form 1040. When you make contributions, keep records and receipts to back up with your contributions. Deductions are limited to the fair market value of your donation. You may take mileage deduction for charity related travel. You are entitled to tax deductions if you are a victim of natural disaster or incurred losses through theft or vandalism. Losses reimbursed to you by your insurance company are not deductible on your tax return.

In order to save money during tax time and reduce your tax liability visit Federal Income Tax Deductions 2011 and take note of the deductible items that will be beneficial to you.

James Okhueleigbe is the webmaster of expressincometaxsolutions.com. Visit my site and find out about solutions to your everyday tax problems, and discover affiliate links that will pay you high commissions.

http://www.expressincometaxsolutions.com/

View the original article here

With 3 weeks remaining in the 2010 tax season, it is time to get your receipts together for filing in 2011. Most are breathing a sigh of relief as the tax reductions passed several years ago have been extended. Thus, most won't experience an unpleasant surprise when they file their taxes. But it IS time to begin getting ready for your tax return, as well as a little bit of last minute tax planning to reduce your tax liability as much as possible.

If you anticipate a refund, you'll want to file your taxes as soon as possible, so you can obtain your refund that much sooner. If you prepare your own taxes, it is time to update your tax software to cover the changes for tax year 2010.

More importantly, use the last 3 weeks to maximize your deductions for the end of the year. There may be items you haven't considered, or have forgotten about.

If you bought your first home in 2010 (prior to October 1, 2010), get your receipts together to qualify for the first time home buyer tax credit.

Consider Contributing More to Your Retirement Accounts.
If you have a little extra money this year, or a substantial Christmas bonus, consider putting it into your 401K before January 1, 2010. If you do, you will reduce your gross income, lower your tax liability and build your nest egg. Many who have just started a job will place their entire paycheck in their 401k at the end of the year, to keep their income as low as possible. You can contribute up to $16,500 into your 401k or 403b for 2010 and up to $22,000 if you are over age 50.

Converting Your Traditional IRA to a Roth IRA.
If you have been considering converting your traditional IRA to a Roth IRA, speak with your tax advisor about whether it is beneficial to you, as many factors will go into this decision. But for this year, you can convert your IRA to a Roth IRA and defer any tax liability over 2 years.

Make a Charitable Donation.
If you are considering donating to charity, now is the time to benefit from the charitable deduction. A cash contribution before January 1, a donation of a car to a charity, or a donation of clothing and household items can all be considered a charitable donation. With many experiencing difficult times this year, charitable organizations are stressed to levels far surpassing prior years. Your donation will be greatly appreciated. You will be helping someone less fortunate, and lower your tax burden in the process. It is a win-win situation.

If Your Income Suffered, But You Have Capital Gains, Considering Taking the Gain This Year.
For people in the 10 and 15 percent income bracket, the long term capital gain tax is 0. Dividends are also at 0 in this tax bracket. If you have a stock to sell, or dividends to collect and your are in this tax bracket, now may be the time to do so.

Utilize the Residential Energy Efficient Property Tax Credit.
With winter here, if you are considering winterizing your home, do it before January 1. You can use it for insulation, high efficiency windows, energy saving hot water heaters, and similar items. The tax credit is up to 30%, and up to $1,500 combined for 2009 and 2010.

Review Last Year's Return.
As a final tip, review last year's return, and look for the deductions and tax credits you have taken. Are there deductions or credits you can take again this year, but haven't met the conditions yet? With 3 weeks to go by the end of the year, a few minutes reviewing this information can help next April.

Boris Flanagan is a creator and specialist of small business programs and products on subjects such as tax software reviews. Please visit http://www.tax-compare.com/ for more info on Online Tax Software.

View the original article here

If you find yourself unable to pay your federal income taxes then you have a problem...the bigger the debt the bigger the problem. For those owing $100,000 or more it's pretty much a no brainer that they need some help. After all that's a lot of money and there is probably a lot at stake with their situation, piece of mind and all. For those owing under $100,000 it becomes a little more questionable for them as to whether they need representation or not. They think they ought to be able to do for themselves. After all the IRS has much bigger fish to fry and with all the tax evaders out there they probably don't have the manpower to waste on those relatively small dollars. And the IRS, being the benevolent organization that they are, will understand their situation and be reasonable and fair about the whole thing.

Here is what taxpayers need to understand about the IRS...their use of the word fair can be found at their website in the mission statement as follows:

The IRS Mission

Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

This mission statement describes our role and the public's expectation about how we should perform that role.
In the United States, the Congress passes tax laws and requires taxpayers to comply.The taxpayer's role is to understand and meet his or her tax obligations.The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share.Anyone can go online to irs.gov and search for "mission statement" and they will find that statement exactly as itappears above at the date of this writing. While the single sentence statement itself may seem fairly benign, and that's questionable depending on who you are, the role descriptions below it cast a pretty dark shadow if you are one of those that are unwilling to comply. If you are, you can be confident that the IRS is out to make sure you pay your fair share. By the way the IRS describes voluntary compliance as "preparing an accurate return, filing it timely, and paying any tax due" in the Internal Revenue Manual, which also can be found at irs.gov and search for "internal revenue manual."

I know what you're thinking: Yea but that's not me...after all, my situation is different and I have a good reason for getting behind. I'm not unwilling to comply; I'm a victim of my circumstance. The IRS will be fair to me (remember how the IRS used the word fair regarding their role in the mission statement?) I'm not trying to scare you, o.k. maybe I am, but you should take this very seriously. It all boils down to numbers and reasons...numbers and reasons.

Speaking of numbers let me throw a few at you from the IRS's own compilation of their latest statistics found in the Internal Revenue Service Data Book for fiscal year 2010. These relate to issues revolving around tax debt and delinquencies.

Offers in compromise received 57,000 vs. offers in compromise accepted 14,000. That's a 25% acceptance rate...only 1 in 4 is accepted! Number of individual income tax penalties assessed 27,106,767 vs. number of individual income tax penalties abated 3,039,087. That's an 11% abatement rate...only 1 in 10 is abated! Now understand that these abatements can relate to any years; however the numbers are what they are. Number of notices of federal tax liens filed 1,096,376. Number of notices of levy served on third parties 3,606,818. Number of seizures 605; by the way you can go to treasury.gov and click on auctions to see that they really do seize property and auction it off to satisfy tax debt.

Now if these numbers are even the slightest bit confusing to you, hands down you need some representation (remember it all boils down to numbers and reasons). But even if they're not you should be very concerned at the least...back to the numbers and reasons.

Numbers are what they are...you add, you subtract and everything is nice and clean. However it doesn't stop there. What types of things do you include in figuring what your tax debt should be and what you propose to offer in order to settle it? Good question, so there seems to be more to the numbers part of it than just adding and subtracting. As far as the reasons go the IRS doesn't grant you tax relief just because you ask. That should be very evident in the numbers above. Furthermore if you have stuff (house, car, big screen television) and you can't pay your tax bill the IRS assumes you used their money to buy those things and fully expects you to sell them in order to pay your debt, even if this creates an inconvenience for the taxpayer. Just a side note, the IRS views an inconvenience and an actual hardship as two very different things.

Here are a couple more quotes from the Internal Revenue Manual regarding the agents' responsibility when dealing with taxpayers and their penalties: "Use each penalty case as an opportunity to educate the taxpayer, help the taxpayer understand their legal obligations and rights, assist the taxpayer in understanding their appeal rights and, in all cases, observe the taxpayers procedural rights." "Resolve each penalty case in a manner which promotes voluntary compliance." Again the IRS will not simply abate a penalty just because you simply ask. There has to be reasonable cause which prevented you from being "voluntarily compliant" in meeting your tax obligation. That reasonable cause issue is central to the success of any relief request. Again it all boils down to numbers and reasons. It may seem simple but it's not.

The IRS has years of experience and teams of people working to ensure that the taxpayer is compliant and understands their legal obligation. That being the case you need to ask yourself this question: Is it worth the risk to save a couple of thousand dollars when I go into the lions den? I assure you it is not. Whether you agree with the notion of charging someone for representation before the IRS, and whether you can afford it, is not the real question. The real question is can you afford not to?

Trace George is a Certified Public Accountant and is the Executive Vice President of Action Tax Relief headquartered in Abilene, TX. Action Tax Relief provides services to individuals who are facing tax problems with the IRS. We help the taxpayer explore their options for tax relief including penalty abatements and offers in compromise. Action tax relief is not a CPA firm but we partner with consultants and CPAs in order to assist taxpayers through the process of dealing with the IRS to resolve their tax issues, including liens, levies and garnishments.

(c) Copyright Trace George. All Rights Reserved Worldwide

View the original article here

Setting up a stamrecht bv when you receive a severance payment in The Netherlands is meant to postpone and ultimately save income tax. Setting up a stamrecht bv can be complicated when you do not have the necessary knowledge of the pertinent tax and company law.

A stamrecht bv ("annuity company") is a limited company ("besloten vennootschap" or "bv") constituted according to Dutch law which has an annuity agreement with the former employee / owner. The company receives the severance payment and promises to make periodical payments in the future. Due to the progressive tax brackets, postponing income tax on a redundancy payment can lead to lower income tax when the severance payment is paid out at times when your income is lower. Since the cost of setting up a stamrecht-bv is fixed, it depends to a large extent on the amount of your severance payment if it is worthwhile to do so.

For setting up a stamrecht bv as a minimum you need the service of a public notary. The assistance of a specialised tax lawyer is recommended. Furthermore there is a large army of more and lesser competent advisors who offer an all-in service to set up a stamrecht bv. Apart from the set-up costs you will have annual expenses for the company register, bank expenses and expenses of an accountant if you cannot or do not want to do the administration of the company.

Now let's have a closer look at when you would want to set up a stamrecht bv. First the tax savings. Let us assume that you receive a severance payment of 50,000 euro. At the current highest Dutch income tax bracket of 52% the tax saving of receiving periodical payments in times when your income is taxed at the second highest scale of 42% is 10% or 5,000 euro. This savings can be higher when your income at the time of receiving the payments is very low or when you emigrate to a country with a low income tax level.

In addition a stamrecht bv gives you more flexibility than other solutions. You decide where you invest your severance payment in, be it in savings, bonds, stocks, a loan or mortgage to yourself or using the money to set up your own business. And you also decide when you start paying out the annuity, when you stop them again or when you would want to change them.

There are a few upcoming changes in legislation which affect the stamrecht bv. First there is the abolishment of the background check of the owner and the approval from the ministry of justice on July 1, 2011 followed by the abolishment of the minimum capital requirement of 18.000 euro as per January 1, 2012. This will make the constitution of a company in general easier and less expensive (the charges of the ministry of finance are around 100 euro). Another change in legislation which is being discussed for years now but still highly uncertain is the introduction of a flat rate tax system. If this would result in a flat rate of about 35%, setting up a stamrecht bv would be highly attractive when the annuity payments would be received at the time this rate would be effective. On the other hand, the introduction of a flat rate system would probably the end of the stamrecht arrangement as there would be no need to defer taxes.

Now the cost side. The cost of an all-in service package for the set-up of a stamrecht bv ranges from under 1,000 euro to well over 3,000 euro. It will be clear that with the latter fee more than half of the tax savings will be wiped out immediately. So as a general rule a stamrecht bv only makes sense with severance payments of over 50,000 euros or higher when you take an expensive advisor.

Unfortunately the more expensive providers do not necessarily employ more competent advisors. They might just have a more luxurious office and spend a lot on marketing. Also take into account that with the crisis of 2008, this sector has been booming and providers multiplied in recent years.

As to the recurring, annual costs, reckon with at least 100 euro for bank and commercial register (the commercial register has a reduced rate for stamrecht companies) and an additional 400 euros if you want to outsource the administration. If you have a lot of activity in your company e.g. because of an active investment portfolio or entrepreneurial activities, the cost of administration can be considerably higher.

Second Start Stamrecht BV's is specialized in setting up stamrecht BV's ( set up stamrecht company ) and consultancy on severance payments ( severance pay ).

View the original article here

In 2005 Congress reformed the Bankruptcy Code and created what is called the Means Test. One of the key components of the Means Test is the calculation of current monthly income to determination if someone has monthly disposable income. Disposable income is theoretically the amount of money someone can afford to pay back their debts each month. If there is disposable income, then that income should be paid to creditors in a Chapter 13 bankruptcy case and a Chapter 7 bankruptcy should not be filed. So what is income when filling out the Means Test?

Generally all income earned or received during the six-month period prior to a bankruptcy case being filed must be included in the Means Test, or "All figures must reflect average monthly income received from all sources, derived during the six calendar months prior to filing the bankruptcy case, ending on the last day of the month before the filing. If the amount of monthly earnings varied during the six months, you must divide the six-month total by six, and enter the result on the appropriate line." The earnings listed is therefore a six-month average. The result of the six-month average can vary widely depending upon whether income is received from self-employment, or someone is employed and receives a salary that stays the same each month.

What Should Be Included

There are many types of income that must be listed or counted in the six-month average of income received prior to filing bankruptcy. The most common are wages, tips, self-employment income, income from operation of business or farm, child support, family support, alimony, pension income or retirement income. Some of the not so common sources of income are food stamps, rental income, sale of stocks, interest, dividends, royalties, retirement account withdrawals, life insurance income or income from trust accounts.

What is Not Included

When creating the Means Test Congress carved out an area that is not included as income in the Means Test. Social Security Act income is not income that will be counted in the six-month average. There is a difference of opinion from jurisdiction to jurisdiction whether unemployment income is considered Social Security Act income. You will need to consult an attorney in your jurisdiction to determine how the Courts make that determination.

Determining whether any monthly disposable income exists is a very important part of deciding what type of bankruptcy case to file. Filing out the Means Test is a complicated process that is different in each case depending upon sources of income and the specific facts of the case.

West Coast Bankruptcy Attorneys is a bay area and California consumer bankruptcy firm filing Chapter 7 and Chapter 13 for individuals in need. Visit West Coast Bankruptcy Attorneys online to find an San Mateo Bankruptcy Attorney or a San Jose Bankruptcy Lawyer committed to providing the best experience for a reasonable fee.

View the original article here

ByAmy Mia

How many days do you get to work and wish you could just sit at your desk, do nothing and still get paid? Have you been trying to find a way to bring in money on your own? The idea of getting paid and not having to dedicate 40 hours a week to someone else's cause, should be motivating enough to have you looking for passive income ideas!

Passive income is money that comes in on a continuous basis, after you put in a little bit of work to get the ball rolling. Rather than getting paid for the amount of time you put into whatever you're your venue is, you create a way to put something together one time and it will continue to bring money in. The goal behind this particular type of income is to do as much work as you are willing to do. And collect on it for a long period of time.

Network Marketing
One of the most popular and maybe the oldest of all of the passive income ideas would have to be network marketing. This is a business that is structured in tiers. You become a distributor or affiliate of a parent company that sells goods or services. The most common of these companies usually sell cosmetic, consumables or nutritional goods. As you sell your inventory, you recruit people to build a team. You then collect commissions from your team members' sales, as well as your own. This particular idea works best when you have a decent sized team.

Links and Banners on Blogs
If you are internet savvy and have a blog page, you can use your blog page to create passive income. This is another way that can bring in a decent amount of money on a monthly basis. You can charge a small fee to companies and people who wish to advertise on your blog page by posting links and banners that will drive traffic to their page. Online advertising is how companies reach the masses. They have to advertise. If you have the space, why not use it to help them and yourself at the same time.

Vending Machines
A surefire way to create passive income is investing in vending machines. You have to admit that every time you see one, you wonder how much money the owner is collecting every time they refill. And every time one steals your money, you wish it was you! Vending machines are a great way to earn income that will be continuous. Your only concern will be securing contracts with locations and keeping the machines full.

Membership Sites
Having expertise of some sort can be parlayed into passive income as well. You can set up a membership site, which charges a monthly fee for access. As long as you can keep a stream of traffic coming to your site, you will have money coming in every month. This is mostly ideal for people who have degrees in one area or another and can offer services that are worth paying for.

Earning money in any way other than a 9-5 doesn't have to be complicated. There is no reason to take on a second job and do more of what you do on the first one. Getting paid based on your time has proven to be a drag and not very beneficial. Most people are usually too tired to enjoy the fruits of their labor.

With the amount of passive income ideas to consider, there's no reason you shouldn't be able to find a way to bring in as much money as you want. No, you won't get rich in the beginning. Yet, if you use your time wisely, you can make a decent amount of money. With the right endeavors... you can turn that horrible based on time pay into decent pay in no time.

Are you looking for a way to generate passive income! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert

ByAmy Mia

It isn't difficult to get online and earn a quick buck these days. There are a whole host of well-publicized methods on how to earn money online, such as completing surveys or writing articles. Unfortunately these earnings are all short-term and require continued effort to keep them going. A long-term passive income is different in that the initial work continues supplying an income long after the work has finished, possibly for years. Here are some of the many business options for earning a long-term passive income:

Earning Money From Advertising
By far the most popular and lucrative method for creating a long- term passive income is by using advertising on a website or blog. This means that you will either need to create a website or blog, or place advertising on your current website. This is made incredibly simple by using online programs such as Google AdWords. Using these programs means you will only have contextual adverts on your website or blog. Contextual ads only have content that is similar to the content on your website, meaning people are more likely to click them. Alternatively you can sell advertising space to businesses that are relevant to your website. Advertising can earn you thousands of dollars per month if you get it right!

Have an Online Store

You may be thinking that creating an online store would be a whole lot of hassle! Having to pack and ship the items is hardly a long-term passive income. However, it is possible to become an affiliate of a company. This means you would promote products or services of a particular business, and earn a commission. The second possibility is to have an online store that uses drop shipping. Using this method, buyers will place an order through your website. Then you would send the order to the producer or manufacturer, who would ship the merchandise straight to the buyer, leaving you to sit back and enjoy the cash!

Write E-books

OK for this you need to have some basic creativity skills, but if there is a particular subject that you are knowledgeable on then it is a real opportunity to earn a long-term passive income. For example you could write a how-to guide, a self-help e-book or even children's literature. With this method all the work will go into writing the book, and then afterwards you will be able to reap the long-term rewards. It is possible to publish your books on websites such as Amazon, that then go on to sell them as e-books.

At the end of the day there isn't such a thing as a one hundred percent long-term passive income, because you have to be in a lot of work initially. There's no such thing as easy money. To make a passive income you need to plan ahead and put in a huge amount of groundwork before you will have the money rolling in.

Are you Looking For A Way To Make Passive Income! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert

ByAmy Mia

You have it within your power to build a massive income stream and change your financial future for the better. The opportunities are out there to go from living off a minimum wage to earning a decent living in a short space of time. To do this you have to stop procrastinating and put your thoughts into action.

While it may seem like to build a massive income stream it will take a lot of time and effort, this isn't necessarily true. There are countless ways to make cash without having to do more work. It is even possible to make a passive income by putting in some initial work and feeling the rewards for years later.

Real Estate Pays

Real estate really is the way to go to build a massive income stream. It does mean making a rather large initial investment, however you will get that back and then some! There are lots of people out there buying houses for cheap prices, doing them up and selling them for a profit. If you would prefer a steady income stream then renting out properties is the way to go. The only way to make a huge amount of money from this method is to have rent coming in from numerous locations.

Making Money From Affiliates

Using affiliates is an excellent way to build a massive income stream if you already own a business that sells goods or services. To do this you get other people or businesses to sell your goods and they receive a percentage of the profit. You may worry about having to give away some of the money, but affiliates can bring in so much trade that it is well worth the sacrifice.

The alternative option is for you to become an affiliate, by selling the goods or services for another company. This is particularly effective if you have staff that you can pass off most of the work to. Recruiting staff will be worth it if they make enough sales, and you will be bringing in a massive income stream for no work.

Multiple Income Streams

If you want to build a massive income stream it may be necessary to earn from multiple different ventures. All the different things you feel capable of doing, do them all! Don't pigeonhole yourself by settling for one income stream.

Lets face it; everyone wants to earn tons of cash and to quit the day-to-day slog. However to build a massive income stream there will need to be some initial groundwork on your part. Once you have got over the first hurdles, it should be plain sailing from there on in. In conclusion, making the step towards financial freedom is a brave one, which the majority of people only ever dream about doing. The revenue you will be making will turn your entire life around in as little time as a few months. So what are you waiting for?

Are you wanting to build an income stream to replace your day job! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert

ByAmy Mia

Wouldn't it be great to be able to quit the 9 to 5 day job or just to have the extra money to spend on whatever you want? Well this isn't just a pipe dream; generating passive income is a real possibility. Passive income is generated with minimal effort of work once the method has been set up. Here are some more unusual passive income opportunities:

Candy-Vending Business

This probably wasn't the first thing that came to mind when you thought about generating passive income. This is a great investment, which can make excellent profits, however it does require some start up money. Vending machines can be purchased for about $200 each and cost around $40 to fill. Then you will be earning $30 per month for each machine. The machines need re-filling about once every 3 months so once you have covered the initial cost of the machine you are in for a tidy profit. If you have enough money to buy multiple machines then you could get yourself an entire passive income.

The most difficult thing about this is finding venues to take your machines. You will have to knock on doors - you can try clubs, pubs, schools, canteens and gyms. Remember the owner will want a percentage but this will be minimal as the machine will be a draw for their customers.

Clever Web-Content

If you have a particular skill then you may be able to monetize off it. If, for example, you have good photography skills then there are plenty of sites that you can upload your photos to and earn money each time they are downloaded. Be warned though your photos have to be good AND there has to be lots of them. If you fulfill both these categories you could make a reasonable passive income.

Perhaps you are knowledgeable on a particular subject? If so consider writing a blog about it, or uploading information or humorous videos to YouTube. Either of these methods have the potential to make you a whole lot of dosh. The content must be unique and interesting if you ever expect it to get anywhere. Some blogs are making upwards of $1000 per day! However $1000 per month is a more reasonable goal.

Automated eBay Selling

This is an easy business to set up, requiring little skill. Once you have tracked down a wholesaler for a popular product, you can start selling on eBay for a profit. However you have to be careful that this doesn't become a lot of work; we are looking at generating a passive income. There is software available that can set up your auctions for you, providing you are selling the same/similar products again and again. This takes a large part of the work off your hands. Once the business grows you could consider employing someone to do this kind of work for you. The key is to find a good product that will sell from a trustworthy wholesaler.

Are you looking for a sure way to create a passive income stream! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert

ByAmy Mia

There isn't anyone out there that wouldn't want to bring in a passive income. Passive income is basically earning money with minimal or no effort required. This is referred to as "time leverage" and time leverage is the secret of passive income.

The idea of earning a living through a passive income is that you put work in at the beginning and continue earning off it for a long time after. The revenue isn't proportional to the hours you put in. The beauty of this is that you will be able to free yourself of the hard labor whilst bringing in an enviable amount of cash. You may have to work at the beginning or perhaps raise some capital towards the project. Here are some ways you can make money from a passive income.

Network Marketing

An example of how to use time leverage is through network marketing. A business owner can leverage their time by using a team of people do all the work for him. Either these people are based onsite or work remotely. This team of people then sells the owners products or services, and they receive a percentage of the profit.

This method allows you to bring in an income even when you aren't actually doing any work. Before you can realize the potential that time leverage can bring, you will have to put some hard work finding a team that is big enough and able to operate with a certain degree of autonomy.

Informational Products

Informational products have a massive online market on a huge scale. By creating "how to" manuals or instructional guides you will be able to sell them online for an indefinite amount of time. This is a real way of tapping into time leverage, the secret of passive income. One informational product will not produce a huge income immediately, so producing numerous ones is the best way to go. If you don't feel creatively minded, consider outsourcing the work. Remember to make your informational products timeless to earn the most amount of money, for instance "how to use iPhone 3 apps" will quickly go out of date.

Advertising

Once you have decided on the method you will use to build a passive income then you will have to find away to advertise these services. Many people spend most of their time trying to sell their products and gain new clients, however this takes up so much time. Posting links on the Internet is making great use of time leverage. By advertising on the Internet you will be able to impact millions of people for very little effort.

The majority of people spend the best part of their life working, day in, day out. This is why time leverage is the secret of passive income. You will have all the time in the world to enjoy your life while still earning a good living. You have the ability to start building a fortune right now from your own home or business! Put in the hours once, and get paid for it again and again!

Are you looking for a way To Create Passive Income! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert

ByAmy Mia

Want to earn some money on the side of your regular job? A passive income means that you can earn money without having to put in very much effort and it is easily achieved. Basically you do some ground work for a few weeks and then get a wage for years later. Here are six ideas for you to choose from!

Affiliate Programs

Affiliate programs are one of the best ways to earn an Internet passive income. This is because you are selling someone else's products, which takes all of the effort out of the business. The company you are affiliated with supplies the products deals with the sales but you get a commission. Obviously it is a good idea to go with companies that have high commission rates, and ones that have a wide market base.

Create Software Products

This is a somewhat more specialized Internet passive income possibility. You will need to be skilled with computers and software. If you have an idea for a piece of software or an iphone app then you could either try to build it yourself or pay university students to do it! This could generate a high passive income.

Information Products

Consider writing an ebook or informational videos. These are easy to create providing you have the ideas to write it. "How to" ebooks always do very well. You can then go on to sell these either through your own website or a publishing site like Amazon. You could even get other people to sell you informational products as affiliates, increasing your sales and decreasing your work.

Adverts On Your Website

By placing adverts on your website or blog, like Google Ads you can earn money. Every time someone clicks on an ad, you will gain a commission. This can be a real money spinner if you have a large amount of pages on your website or high traffic. It can also work for your business. If you have a product or affiliate program, then advertise with pay per click campaigns. This way you can earn money rabidly by using Google AdWords. This is especially true if you don't have too many competitors.

Referrals

If you already have a business then you can increase business and also earn extra money using referrals. For example, if you have a catering business and you refer a hotel to someone, then the hotel could give you a commission. Likewise if you get the hotel to refer clients to your business you could give them a commission. This is a shrewd business move. All you need to do is ring around and find people who want to work with you in this way.

Run A Membership Site

Finally what about running a website that charges membership? This could be based around a subject that you are particularly knowledgeable on or an "exclusive club" of some kind. Many people are willing to pay a small monthly charge, particularly if you offer a basic service for free and a better service if they pay.

Do you want to make money now? If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert

ByAmy Mia

Everyone wants to earn a little extra cash, no matter how much you earn you always end up feeling there could be more. In this current climate times are tough and people are looking for anything they can to get their hands on some extra cash. There are ways of earning extra income that don't take up too much time or hinder your current job. Here are 3 ideas for making extra money, which don't need any start up capital or much time involved.

Selling Online

Not all that long ago if you wanted to sell something you either had to set up shop or go down the local market. Now though you can have access to millions of people with minimal effort. If you have anything worth selling then put it on eBay. Perhaps you have overlooked items you thought were useless. Search them in eBay and see if other people are selling them. If you want to go bigger than this then get hold of a decent wholesaler and start selling big.

If you are more ambitious then look to setting up your own online store. You will need a website and then you'll have to choose what products to sell. For minimum effort you could use drop shipping. This means that you do not have to actually stock any products. Instead when a customer orders something, you send the order direct to the manufacturer.

Garage Sale

There is nothing like a good old garage sale. Perhaps you want to have a clear out anyway. If you live in a populated area then you could do it right on your doorstep. Even better - get the kids to do it!

Alternatively rent a stall at a flea market. If you do this it could become a permanent thing. If you are a good cake baker or jewelry maker then you could start a business out of this alone. By selling homemade goods at flea markets you have the potential to make a good profit. If you don't have much time on your hands then purchase wholesale items and spend them at a higher price at the flea market.

Rent a Room

Consider renting a room in your house to a lodger. It is so easier and requires no effort. In fact you'll have someone there helping you cook and do the washing up! You can rent out a room for up to $500 a month, which is an amazing amount of money for doing absolutely nothing. The downside is sharing your home with someone, but remember you can be selective of who it is!

These three tips may either make you some pocket change or a monthly income, either way you are quids in. By putting a small amount of effort into something you have the potential to .

Are you for a way to make some extra CASH! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert

ByAmy Mia

There isn't anyone out there that wouldn't want to bring in a passive income. Passive income is basically earning money with minimal or no effort required. This is referred to as "time leverage" and time leverage is the secret of passive income.

The idea of earning a living through a passive income is that you put work in at the beginning and continue earning off it for a long time after. The revenue isn't proportional to the hours you put in. The beauty of this is that you will be able to free yourself of the hard labor whilst bringing in an enviable amount of cash. You may have to work at the beginning or perhaps raise some capital towards the project. Here are some ways you can make money from a passive income.

Network Marketing

An example of how to use time leverage is through network marketing. A business owner can leverage their time by using a team of people do all the work for him. Either these people are based onsite or work remotely. This team of people then sells the owners products or services, and they receive a percentage of the profit.

This method allows you to bring in an income even when you aren't actually doing any work. Before you can realize the potential that time leverage can bring, you will have to put some hard work finding a team that is big enough and able to operate with a certain degree of autonomy.

Informational Products

Informational products have a massive online market on a huge scale. By creating "how to" manuals or instructional guides you will be able to sell them online for an indefinite amount of time. This is a real way of tapping into time leverage, the secret of passive income. One informational product will not produce a huge income immediately, so producing numerous ones is the best way to go. If you don't feel creatively minded, consider outsourcing the work. Remember to make your informational products timeless to earn the most amount of money, for instance "how to use iPhone 3 apps" will quickly go out of date.

Advertising

Once you have decided on the method you will use to build a passive income then you will have to find away to advertise these services. Many people spend most of their time trying to sell their products and gain new clients, however this takes up so much time. Posting links on the Internet is making great use of time leverage. By advertising on the Internet you will be able to impact millions of people for very little effort.

The majority of people spend the best part of their life working, day in, day out. This is why time leverage is the secret of passive income. You will have all the time in the world to enjoy your life while still earning a good living. You have the ability to start building a fortune right now from your own home or business! Put in the hours once, and get paid for it again and again!

Are you looking for a way To Create Passive Income! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/

Article Source:http://EzineArticles.com/?expert